Case title: McDonald’s “seniors” Restaurant
- Statement of the Problem
The perception of younger customers of McDonald’s image and the current strategy regarding senior citizen customers .
- Definition of the Problem
Suzanne Drolet is manager of a McDonald’s restaurant in a city with many “seniors.” She worries that with her growing senior citizen customers, the image of her restaurant would change and it will be known for being a non-fast-food restaurant because of the ambiance. If the seniors market will also continue to grow, there would be a crowding problem. She is also taking into consideration of the possibility catering more services to them because the seniors do use their facilities for a much longer time than the average customers.
- Factors Affecting the problem at least 5 factors with brief explanation
- Place or location- Place or location is one of the factors why there are a lot of seniors because they are situated in a place where there are more seniors than the younger generation.
- Image of McDonald’s- The image of the restaurant is a factor because it is know for being a fast-food-chain but in their case they are beginning to be perceived as “old people’s restaurant.”
- Perception of the younger generation- This is a factor because when the younger see the restaurant as non-fast-food restaurant they might get discourage to dine at that place.
- Attachment to customers-This is a factor because of the relationships between the customer and the employees, this is a hindrance because they mixed their social life with business so in times of important decision making they will always have to consider their customers because of the attachment. Well, establishing relationships with the customers is also an advantage because they can do product positioning with the customers and establish also loyal customers.
- Time- This is a factor because even if the amount her senior citizens spend is similar to the average customer’s purchase-but the seniors do use the facilities for a much longer time.
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Peer Reviews
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Quality of writing
The report within the conclusion states the term 'opportunity cost', however this ins't explained within the report. An opportunity coast, is the cost of forgoing a certain opportunity. For example the opportunity cost of a promotion might be the sales from paper leaflets handed out, which is sales lost. However the business may have decided that on-line advertising was the best method and would gain these sales instead. Thus, it's the cost of not undertaking a certain activity and selecting another which may be more effective. It's important that all technical terms are explained within the report, to ensure that the exmainer understands the report. Especially with technical terms which are difficult to understand, such as above.
Level of analysis
The three different alternatives are quite vague and there do not list the benefits/drawbacks of each one. This is needed to ensure that the report is balanced and fair. For example the report could include 'By offering new products, which should attract new customers, this could cause some consumers to become disloyal if there do not like the new product. This new product will need to be carefully choose to ensure that this appeals to the younger market and also that there are going to enjoy the new product'.
Response to question
In summary, the report is OK. The report states a potential issue, and the student suggests three potential solutions. However these three solutions aren't explained or justified. For high marks, the student should ensure that the three suggestions have the benefits/drawbacks to ensure it's a balanced report. The student has stated an issue within a fast-food chain, which senior members of the public take a longer time sitting at the table than the younger adults. This causes crowding, and could cause the business to loose sales. This is a valid issue, and the student understands the issue within the store.
