Case Analysis
McDonald’s: Can a behemoth lead in the era of artificial intelligence. Part 1
Step 1: The Facts
Summarize the key information from the case and the current situation.
WHO
is the decision maker?
The decision maker is Chris Kempczinski. WHAT is the business decision we are trying to make? What are some of the underlying issues?
The decision maker must figure out a plan on how to use Dynamic Yield to further improve the company’s business operations. Kempczinski must find a way to help Dynamic Yield be incorporated into McDonald’s franchises in order to help the company
make even more money. WHY has this a decision that needs to be made? How do we know this? What led to the current situation?
There have been recent renovations that have cost billions of dollars and these renovations included making the self-ordering kiosks in McDonald’s franchises. These were causing owners to be skeptical and worry about the success of these. The new renovations took longer than expected but have proven to be a good investment. McDonald’s is trying to be more responsive and considerate of their consumers so they want to implement an AI that will help receive feedback, make product recommendations, communicate with customers via one-to-one messaging, increase sales, and in the long run make customers much happier, and feel more heard. This situation arose because McDonald’s recently purchased Dynamic Yield. WHEN
does the business decision need to be made? Is it urgent? Why?
This business decision is not super urgent because the businesses are doing well now. Although if the secondary phase of the Velocity Growth Plan is figured out soon this would be better for the company because it would help increase sales sooner and improve the quality of the franchises and the company as a whole.
