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| Topic: |
Business
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| Number of pages / Number of words: |
6 / 1517 |
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The problem is that they have now saturated the market. This saturation became evident in 2002 when margins and same store sales began to drop significantly reflecting diminishing returns on the $1.2 billion a year that the company was spending on expansion. With Wall Street demanding constant earnings growth, this weakness has eliminated expansion as an option for McDonald’s to grow...
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Their restaurants suffer from an outdated design that creates a cheapened image in the eyes of their customers. Long time patrons are used to the decor, but potential new customers view most McDonald’s as out of style, out of date and relics from a past era, further limiting growth. Finally, one of the major challenges facing the company as it moves forward is directly related to their corporate structure...
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