(In reference to the article by CNN: “McDonald’s sales plunge. CEO calls results disappointing“)
Recently, I mentioned that McDonald’s is suffering a downfall because their brand has no narrative to connect with today’s marketplace. Now, it’s gone so far that I doubt if McDonald’s will ever be the same company it was before. I have consulted for comparable companies that have always been successful like McDonald’s – and they are great at managing their success. But when success turns into failure, they often get lost. They lack the ability, open eyes, and sheer bulldog-nature needed to get out of failure. Inevitably, as proven by McDonald’s, they keep failing.
Getting out of failure means throwing away previous philosophies, products, programs, and other “endeared” things that the existing team has created – which generally isn’t easy nor does it happen quickly. In order to change and turn the critical corner back to growth, it requires knowledge in making change, not managing status.
My conclusion? McDonald’s is in big trouble.