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Tuesday, March 7, 2017

Basics


A satisfied customer is the best business strategy of all.

― Michael LeBoeuf

McDonald's CEO told investors last week his company will go back to basics.

The flip comes after research revealed customers had fled the chain not to fancy, fast-casual restaurants like Panera and Chipotle, but to other fast-food joints like Burger King and Five Guys.

To escape the pickle, McDonald's plans to beef up its burger recipes; roll out mobile ordering and home delivery; and fork over $1.1 billion for store renovations.

The company will no longer dish out wraps, salads, oatmeal, and other high-end food.

The move comes two years after McDonald's canned the CEO's predecessor and Consumer Reports ranked the chain's burgers as the nation's worst.

The lessons here are basic:
  • No business can survive if its offerings are flawed
  • Sound strategy often lies in what a business chooses not to do
In his autobiography Grinding It Out, McDonald's founder, Ray Kroc, got to the meat of it:

"Perfection is very difficult to achieve, and perfection was what I wanted in McDonald's. Everything else was secondary for me."

1 comment:

  1. I found your comment interesting about "Sound strategy often lies in what a business chooses NOT to do.

    It is similar to what General Schwarzkopf once said, and something I learned early on in my career at AT&T and Holiday Inns International: "I learned much more from the mistakes I made, than the successes I've had."

    At a2z when we transitioned to the .net platform in 2004, we decided NOT to transition our registration module. It was one of the best marketing and business decisions we ever made. Once we eliminated the reg module, the reg companies no longer looked at us as their competition, and within a few weeks started referring business our way. Of course, we reciprocated and started referring reg business their way too. Consequently, we generated much more business by dropping reg from our platform, than keeping it.

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