1. Do you think that McDonald’s strategy will be successful?
McDonald's brand is popular because of their delicious and iconic food as well as speedy service, mascot and iconic arch logo also plays a major role in customer attraction, but as to the success of McDonald's as a brand took nearly two decades and only Rey Kroc bought the McDonald's franchise from its original owner Richard and Maurice McDonald and ran this operation like an army drone of burgers and made all the changes he intended and in just 6 years he opened 100 McDonald stores all around the America. Today McDonald's owns almost 40,000 stores worldwide.
The McDonald’s brand has four separate components that contribute to its success:
Inexpensive - It sells reasonable quality food, with great shakes and coffee, for a low price.
Fast - The service is reliably quick and efficient, either inside or drive-thru.
Consistent - You get exactly the same level of service, and the same food prep, whether you are buying in Seattle or Halifax.
Ubiquitous - They are literally everywhere. Many people object to that, but it is a key element to their success.
2. How do you think Starbucks will respond?
Starbucks has announced that it will close more than 8,000 company-owned stores on May 29 to present racial bias education to its employees. This dramatic move is a response to last week’s incident at a Philadelphia Starbucks, where two black men were arrested as they waited for a third man to arrive for a meeting.
The response by Starbucks CEO Kevin Johnson has been impressive. I view it as a good example of a company taking responsibility for its wrongful actions and standing behind its stated values. Values help a company connect emotionally with its customers. But when a company says it believes in one thing and then does something completely opposite, customers notice. They lose trust, and the company loses loyalty.
As you probably know, the incident unfolded when the two men sat down at Starbucks but didn’t order anything. The manager asked them to leave, but they said they were waiting for someone (who eventually did show up). The manager called the police, who handcuffed the men and took them away, though they were never charged with a crime.