In the early Spring of 1992, McDonald’s was confronting a dilemma that many corporations…

In the early Spring of 1992, McDonald’s was confronting a dilemma that many corporations would have liked to face. How does the number one company in its industry increase market share? How can it maintain a ten-year compound annual growth rate in sales and net income of 11% and 12%, respectively?’ And finally, if it can accomplish all of that, how can the company still retain some sense of what it traditionally had been?
Ray Kroc, ho bought the franchise rights to McDonald’s Corporation and turned it into a fast-food giant, was a firm believer in growth. One of his favorite sayings was: “If you’re green, you’re growing. If you’re ripe, you rot.”2 He was also a firm believer in the strategy he chose for the organization: that McDonald’s should set itself apart from the competition by offering simple, inexpensive food with fast, friendly, clean, convenient, and consistent service.
Things had changed for McDonald’s Corporation and the industry it created since Ray Kroc stated his philosophy. Enticed by McDonald’s growth, other firms entered the market. These companies built on the lessons learned from McDon- ald’s pioneering efforts to become competitors not only for customers but also for suppliers and restaurant sites. Demand for McDonald’s traditional menu items

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