Introduction

Fast-food products have become an integral part of modern consumer culture

offering quick, convenient, and affordable meal options to people around the world.
These products typically include items such as burgers, fries, fried chicken, pizzas,
sandwiches, and a variety of beverages and desserts, all designed for fast preparation
and easy consumption (Smith, 2020). The appeal of fast food lies in its consistency,
taste, and accessibility, making it a popular choice among busy individuals, families,
and young consumers (Brown and Lee, 2019). One of the key characteristics of fast-
food products is their high energy density, often resulting from high levels of fats,
sugars, and sodium (World Health Organization, 2020). While this contributes to their
palatability, it has also sparked concern over their long-term health impacts, including
obesity, diabetes, and cardiovascular diseases (Moss, 2013). Despite these concerns,
the fast-food industry continues to thrive, largely due to strategic global marketing,
affordable pricing, and consistent product offerings (Harris et al., 2021).
A key player in the industry is McDonald’s Corporation, the world’s largest and
most recognizable fast-food chain. Founded in 1940 in San Bernardino, California,
McDonald’s has grown into a global brand with over 38,000 locations in more than 100
countries (McDonald’s Corporation, 2023). Recently, it opened a new branch in the
Philippines at Sagrada Familia, Naval, Biliran Province, Leyte which is the focus of this
study. Known for its signature products such as the Big Mac, McNuggets, and French
fries, McDonald’s has become a symbol of the fast-food experience worldwide. The
company’s success is attributed to its highly efficient service model, aggressive
branding, and constant innovation in product development, including the recent
introduction of healthier and plant-based menu options to meet evolving consumer
demands (Johnson, 2021).
This case study focuses on McDonald’s Corporation, a fast-food restaurant
known globally which recently opened a new branch at Sagrada Familia, Naval, Biliran
Province, Leyte, Philippines, as a model to examine the dynamics of the industry,
including business operations, marketing strategies, customer service, and competitive
positioning. It aims to understand how McDonald’s maintains efficiency, adapts to
evolving consumer preferences, and responds to challenges such as health concerns,
sustainability issues, and market competition. By analyzing these aspects, the study
seeks to provide insights into the success factors and areas for improvement within the
fast-food sector.

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 Company Profile
McDonald's Corporation is the world's largest chain of fast-food restaurants,
serving nearly 47 million customers daily through more than 31,000 restaurants in 119
countries worldwide. McDonald’s sells various fast-food items and soft drinks including
burgers, chicken, salads, fries, and ice cream. Many McDonald's restaurants have
included a playground for children and advertising geared toward children, and some
have been redesigned in a more 'natural' style, with a particular emphasis on comfort:
introducing lounge areas and fireplaces and eliminating hard plastic chairs and tables.
Each McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation
itself. The corporation's revenues come from the rent, royalties, and fees paid by the
franchisees, as well as sales in company-operated restaurants. Also, McDonald’s
Corporation is a leader in the quick-service food industry. As a leader, McDonald’s is
committed to providing the highest quality food, superior service, great value, and a
clean welcoming environment (QSC&V strategy). McDonald’s concentrates on a
sustainable business model energy focused on energy conservation, and waste
reduction.
During its first decades, McDonald's worked to establish its business model and
brand. Since that time, it has found an approach that works. The company's modern
history is noteworthy specifically for its relatively few items of note. McDonald's has
continued its rapid growth for nearly 70 years and, while it has gained and lost
customers, new restaurants have opened at a steady pace.
To a degree that few other businesses can claim, the McDonald's approach can be
described as "if it ain't broke, don't fix it." Below is the timeline of McDonald’s operation
to success:

 1937 - The McDonald brothers start their hot dog stand, getting into the food
service business as a team.
 1940 - They open their barbecue restaurant in San Bernardino, the world's first
McDonald's restaurant. There is no current information on whether they sold
barbecue rib sandwiches, but we would like to think they did.
 1948 - The McDonald brothers turn their restaurant into a hamburger and
milkshake restaurant, and in the process are credited with inventing the modern
service model of fast food. In later memoirs the brothers would credit their
process to Henry Ford, saying that they modelled their restaurant around his
assembly lines in Detroit.
 1949 - McDonald’s introduced their World-Famous French Fries.
 1953 - McDonald's opens its first franchise restaurant in Phoenix. While not a
focus of Maurice and Richard McDonald, they did open multiple restaurants in
Arizona and California during the company's early years.
 1954 - Ray Kroc, a traveling appliance salesman, visits the McDonald's
restaurant to discover why a small hamburger shop needs as many milkshake
machines as it does. He buys the rights to franchise McDonald's restaurants
across the country.
 1955 - Kroc opens his first franchised restaurant, arguably the first restaurant of
the modern McDonald's company, in Des Plaines, Illinois.

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 1956 - Kroc and Harry Sonneborn developed a financial model in which
McDonald's would own the land on which its franchisees build their restaurants.
That model continues to this day and is often considered one of the most
significant financial decisions the company has ever made.
 1959 - Kroc names Sonneborn the first CEO of the McDonald's company.
 1961 - Kroc buys out the McDonald brothers for $2.6 million (approximately
$22.3 million in 2019 equivalent). The brothers kept their original restaurant,
renamed Big M. Kroc later opened a competing McDonald's nearby that drove
them and the first-ever McDonald's out of business by the end of the decade.
 1962/63 - McDonald's launches its two most recognizable logos: the golden
arches and Ronald McDonald.
 1965 - McDonald's launches its public stock.
 1967 - Kroc pushes Sonneborn out and takes the position of CEO himself.
Meanwhile, McDonald's opens its first international restaurant in Canada.
 1974 - The first Ronald McDonald House opens.
 1984 - Kroc dies.
 1990 - McDonald's opens a restaurant in Pushkin Square, Moscow. Given the
cultural status of the restaurant, this is seen as a symbolic moment in the end of
the Cold War. According to the restaurant's website, it served more than 30,000
Russian citizens on the first day.
 1993 - The company opens its first McCafé, McDonald's attempt to run a coffee
restaurant, in Australia.
 1996 - McDonald's has entered an era of rapid growth. From 1988 - 1996 the
company doubled its number of restaurants, opening location number 20,000 this
year.
 1998/1999 - McDonald's as a corporation begins to aggressively expand past its
traditional business model. It acquired companies including Chipotle (CMG) - Get
Free Report and Boston Market, although it would later divest itself of these
holdings.
 2000 - By the end of the 1990s, McDonald's had opened more than 11,000
restaurants outside of the U.S.
 2013 - In another symbolic moment, McDonald's opens its first restaurant in
Vietnam.
 2015 - To create new energy around its brand, McDonald's launches its all-day
breakfast menu. This has largely been regarded as a failure, as it is generally
regarded as splitting an existing customer base rather than bringing new
customers into the restaurant.
 2016: McDonald's withdraws the Step-It activity tracker, which is worn on the
wrist, and was given away with Happy Meals to children in the US and Canada.
There were fears that the devices caused skin irritation.
 2018: McDonald's announced that it would remove plastic drinking straws from
its UK and Ireland restaurants.
 2019: McDonald's purchases personalization-technology company Dynamic
Yield for $300 million and acquires a 9.9% stake in mobile software company
Plexure for $3.7 million.
 2019: McDonald's opens the McHive, the world's smallest restaurant for bees

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  2019: On September 10, McDonald's acquired Apprente, an American start-up
company specializing in customer service utilizing artificial intelligence.
 2020: In March, McDonald's halts all-day breakfast due to the COVID-19
pandemic.
 2022: On March 8, the company announced that it is pausing operations at all
850 of its locations in Russia, in response to the Russian invasion of Ukraine
twelve days prior. The move comes after similar decisions by other Western
companies and pressure from critics.
 2022: Shares reached an all-time high in June, putting the company’s market
capitalization at $218 billion. McDonald’s is operating a record number of
restaurants, ending the year at 40,275 stores in the U.S. and more than 100
countries. It posts $6.2 billion in annual profit on $23.2 billion in revenue (Reed &
Diongson, 2023).
 2022: $127 million, or $0.13 per share, of pre-tax operating expenses incurred to
support the Company's businesses in Russia and Ukraine. Included in this
amount were $27 million related to the continuation of employee salaries, lease,
and supplier payments as well as $100 million for inventory in the Company's
supply chain that likely will be disposed of due to restaurants being temporarily
closed $500 million, or $0.67 per share, of non-operating expense to reserve for
a potential settlement related to an international tax matter (Corporation, 2022).
 2023 (1st quarter): Global comparable sales increased 12.6%, reflecting strong
comparable sales of 12.6% across each segment. Consolidated revenues
increased 4% (8% in constant currencies). Systemwide sales increased 9% (13%
in constant currencies). Consolidated operating income increased 10% (14% in
constant currencies) (Corporation, 2022).
 2023: Diluted earnings per share was $2.45, an increase of 66% (72% in
constant currencies). Excluding $0.18 per share of current year restructuring
charges related to the Company's internal effort to modernize ways of working
(Accelerating the Organization), diluted earnings per share was $2.63, an
increase of 15% (19% in constant currencies) when also excluding prior year
charges (Corporation, 2022).
 2023: Pre-tax restructuring charges of $180 million, or $0.18 per share, related to
Accelerating the Organization (Corporation, 2022).
 2024: Continued AI integration and automation, expanding the use of AI
intelligence in drive-thru operations and kitchen automation to improve speed
and accuracy (Forbes, 2024).

Vision Statement

 “To move with velocity to drive profitable growth and become an even better
McDonald’s, serving more customers delicious food each day around the world.”
 McDonald’s vision statement reflects this commitment by declaring the
commitment “to move with velocity to drive profitable growth and become an
even better McDonald’s, serving more customers delicious food each day around
the world.” To implement this vision statement globally, McDonald’s emphasizes
regional market strategies to better understand individual cultures and needs.

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  By taking into account customer preferences such as menu items tailored to
different cultures, different communication methods such as digital platforms, and
dining options including personalization services or delivery options —
McDonald’s aims to become firmly integrated into people’s daily lives while being
attentive to their requirements regarding price points. All those flexible offerings
enable McDonald’s managers across locations to easily adapt their operations
based on country-specific regulations or local market trends, while keeping
innovation alive within its global network of eateries.
 McDonald’s vast global presence provides numerous growth prospects, as well
as the need to implement methods that uphold profitable customer relationships
worldwide by delivering culturally-relevant products and positive customer
experiences regardless of branch. Supporting this, host teams’ tangible efforts
ensure both franchised locations and corporate stores are able to boost sales
while carrying out unified systems and processes to deliver local profitability as
well as fulfil top management objectives such as annual financial performance
goals or long-term business strategies. (Pereira, 2023)

Mission Statement

 “McDonald's brand mission is to be our customers' favourite place and way to

eat, and improve our operations to provide the most delicious fast food that
meets our customers' expectations.”
 McDonald’s mission statement is “to be our customers’ favourite place and way
to eat and drink.” This statement is centred around the idea of providing
customers with an enjoyable experience when dining at their restaurants. The
company seeks to make every visit to a McDonald’s restaurant a fun and
pleasurable one for everyone involved. From fast and friendly service to quality
food, attention to detail, and the cleanliness of their locations, McDonald’s strives
to ensure that all customers have a positive experience from beginning to end.
 The statement also expresses McDonald’s commitment to providing the highest
level of customer service possible. They believe in listening carefully to customer
feedback to continually better meet their needs and exceed expectations. The
company values feedback and takes suggestions seriously to be able to adapt
quickly, so it can always meet the changing demands of customers within
different markets worldwide. (Pereira, 2023)

1. Customers—McDonald's mission statement focuses on its customers by

stating that it aims to provide them with a unique and enjoyable dining
experience. McDonald's customers span a diverse demographic spectrum,
reflecting the brand's universal appeal. Families with children are drawn to the
kid-friendly options and Happy Meals, while busy professionals appreciate the
quick and convenient service for on-the-go meals. Teenagers and young adults
often see McDonald's as a casual and social gathering spot. The affordability of
value meals attracts budget-conscious individuals, making McDonald's
accessible to a wide range of income levels. With a global presence, McDonald's
welcomes customers from various cultural backgrounds, providing a sense of

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 familiarity for both locals and travellers alike. Whether it's for a quick snack, a
family dinner, or a late-night craving, McDonald's has become a staple in the
lives of millions, shaping its customer base into a mosaic of diverse tastes and
preferences.

2. Products or services— McDonald's strives to serve high-quality, great-

tasting, and affordable food and beverages. McDonald's is renowned for its
diverse menu of fast-food items that cater to a wide range of tastes and
preferences. The core of their offerings includes the iconic Big Mac, Quarter
Pounder, Chicken McNuggets, and the classic Cheeseburger. McDonald's also
adapts its menu to local preferences, offering region-specific items to suit cultural
tastes. Alongside their main menu, McDonald's provides a variety of sides such
as French fries, salads, and apple slices. The breakfast menu features items like
the Egg McMuffin and Hotcakes. The company has increasingly focused on
healthier options, including salads, grilled chicken, and fruit smoothies.
Additionally, McDonald's emphasizes convenience through services like drive-
thru, mobile ordering, and delivery partnerships with various third-party platforms.
The McCafé line expands the offerings to include a variety of coffee beverages,
pastries, and desserts. With its commitment to innovation and adaptation,
McDonald's continues to evolve its product and service offerings to meet the
changing preferences of its global customer base.

3. Markets— McDonald’s is an iconic global fast-food brand, and its presence

extends hugely around the world. The company has opened over 38,000
restaurants in more than 100 countries and regions, serving nearly 70 million
people each day, striving to bring convenience to people’s lives.

4. Technology— McDonald’s has been actively embracing technology

advancements to enhance various aspects of its operations. One of their latest
technologies is the self-service kiosks that allow customers to place their meals.
The company continues to explore and adopt new technologies to stay
competitive, enhance customer experiences, and improve operational efficiency.

McDonald’s Core Values

McDonald’s core values are grounded in quality, service, inclusivity, and value.
The company is passionate about engaging in ethical business practices and corporate
responsibility as part of these core foundations. This includes initiatives such as
assisting local communities, providing a safe workplace for all employees, preserving
the environment through responsible processes, delivering an affordable menu while
adhering to food safety regulations, and maintaining integrity in every interaction with
people. (Pereira, 2023)

Business Model

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 Figure1. McDonald’s Business Canvas

Problem Statement
Opening a new branch of McDonald’s in a Province comes with a challenge to
the management. These challenges make the management make careful decisions that
will lead to a positive impact on the business. The primary management challenge for
McDonald’s at Sagrada Familia, Naval, Biliran Province, Leyte Philippines branch is to
increase customer engagement and profitability in a small, economically constrained
market. This involves making critical decisions about how to adapt the branch’s
operations, marketing strategies, and menu offerings to align with local preferences and
market conditions.
Key decisions include:
1. Adopting the Menu to Local Tastes and Health Trends
- The branch must decide whether to introduce more localized and health-
conscious menu options to cater to the preferences of the Naval, Biliran
Population, which may be more cost-conscious and health-aware. This
decision will involve evaluating the feasibility of modifying the menu without
compromising the core brand identity.
2. Leveraging Local Partnerships

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 - McDonald’s needs to decide how to utilize local resources, such as
sourcing ingredients from local farmers, to reduce supply chain costs and
support the local economy. Collaborating with local producers could
improve the consistency of supply and potentially lower costs while
enhancing the brand’s appeal to customers who value sustainability and
local support.
3. Managing Operational Cost
- The branch faces high operating costs due to its global brand and smaller
scale of operations in a rural area. Management must decide on cost-
saving measures, such as streamlining operations, improving efficiency, or
optimizing staffing levels, to ensure profitability despite these higher
expenses.
The McDonald's branch in Sagrada Familia Naval, Biliran Province, faces
significant challenges in maintaining profitability and market growth due to a
combination of internal weaknesses and external threats. While the branch benefits
from strong brand recognition, a convenient location, and a consistent product offering,
it struggles with a limited market size and high operating costs. The small, economically
constrained local population limits the customer base, while the branch’s inadequate
assistance and limited menu options tailored to local tastes hinder its ability to fully meet
the needs of the community. Furthermore, external factors such as the growing demand
for healthier food options, competition from local eateries, and the vulnerability of the
region to natural disasters create additional pressures. However, opportunities exist,
such as catering to local events, collaborating with local farmers, capitalizing on the
tourism growth in Biliran, and introducing health-conscious menu options. To address
these challenges and ensure continued growth, the branch must adapt its offerings to
local preferences, optimize its operational efficiency, and strategically engage with the
local community and tourist market.
The main problem in this context revolves around maintaining profitability and
market growth, which is hindered by both internal weaknesses and external threats:
1. Limited Market Size: The small local population with constrained economic
capacity reduces the customer base and limits consistent sales.
2. High Operating Costs: Challenges arise from managing expenses, especially
in a location with limited resources and purchasing power.
3. Inadequate Adaptation to Local Preferences: The branch struggles to connect
with the community due to limited menu options tailored to local tastes.
4. External Pressures: Factors such as growing demand for healthier food, strong
competition from local eateries, and regional vulnerability to natural disasters
exacerbate the challenges.
To address these issues, the branch must focus on local engagement, optimize
operations, and adapt its offerings to better align with local and tourist needs while
considering sustainability and efficiency.

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 SWOT Analysis
Table1. SWOT Analysis of McDonald’s
STRENGTHS WEAKNESSES
 Brand recognition  Limited Market Size
 Convenient Location  Inadequate Assistance
 Quality and Consistency  Limited Menu Options for Local
 Diverse Menu Taste
 High Operating Costs

OPPORTUNITIES THREATS
 Catering to Local Events  Natural Disasters
 Collaboration with Local Farmers  Rising Health-Conscious
 Tourism Growth in Biliran Customers
 Introduction of Health-Conscious  Economic Downturn
Options  Competition from Local Fast-Food
Chain and Eateries

Analysis
The McDonald's branch in Sagrada Familia Naval, Biliran, is faced with a unique
set of challenges and opportunities arising from both internal and external factors. A
detailed SWOT analysis provides valuable insights into how these factors impact the
branch's ability to maintain profitability and achieve market growth.
Strengths
1. Brand Recognition: McDonald's strong global presence and brand recognition
give it an advantage in attracting customers, even in smaller markets like
Biliran. This acts as a critical draw for both locals and tourists who associate
McDonald’s with reliability and quality. However, while it generates initial
interest, brand recognition alone cannot sustain profitability in an area with a
limited customer base.

2. Convenient Location: The branch’s strategic placement caters to locals and

tourists, ensuring accessibility. This strength helps increase foot traffic, but
the small local population and seasonality of tourism limit the potential to fully
capitalize on the location's advantage.

3. Quality and Consistency: McDonald’s reputation for delivering consistent

quality bolsters customer trust and loyalty. However, in a rural setting like
Biliran, maintaining high quality can become challenging due to supply chain
limitations, which may disrupt the consistency that McDonald’s is known for.

4. Diverse Menu: A broad menu offers variety and caters to different

preferences, which can attract a wide range of customers. However, without
local customization, the diverse menu fails to fully resonate with the tastes of

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 the Biliran community, reducing its effectiveness in capturing a loyal customer
base.
Weaknesses
1. Limited Market Size: Biliran's small and economically constrained population
limits the pool of regular customers. This directly impacts profitability, as the
limited demand makes it harder to achieve sales targets and sustain
operational costs.

2. Dependence on Supply Chain: The branch relies on external supply chains to

maintain product quality and consistency. Any disruptions, whether due to
natural disasters or logistical issues, can lead to delays, increased costs, and
compromised service quality.

3. Limited Menu Options for Local Taste: A lack of locally inspired menu options
reduces McDonald's appeal to the community, limiting its ability to attract
repeat customers who prefer familiar, culturally relevant flavors.

4. High Operating Costs: Running a McDonald's franchise in a rural area like

Biliran entails significant costs, including sourcing ingredients, maintaining
brand standards, and staffing. These costs are harder to offset in a market
with limited sales potential, squeezing profit margins.
Opportunities
1. Catering to Local Events: Partnering with the community for local events,
festivals, and gatherings presents an excellent opportunity to increase
visibility, attract new customers, and boost sales. Customizing offerings for
these events could strengthen the branch’s local presence.

2. Collaboration with Local Farmers: Establishing partnerships with local farmers

can reduce supply chain vulnerabilities, cut costs, and promote community
support. This approach not only addresses logistical challenges but also
resonates with the growing trend of supporting local businesses.

3. Tourism Growth in Biliran: With an increase in tourism, McDonald’s can

attract visitors looking for a reliable dining option. Marketing campaigns and
tailored promotions could help position the branch as a go-to spot for tourists,
thereby boosting seasonal revenue.

4. Introduction of Health-Conscious Options: Adding healthier menu items can

appeal to a wider audience, including health-conscious locals and tourists.
This move could mitigate the rising threat of losing customers to competitors
offering healthier alternatives.
Threats

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 1. Natural Disasters: Biliran’s susceptibility to typhoons and other natural
disasters poses operational risks, including supply chain disruptions, damage
to infrastructure, and temporary closures. These events can lead to significant
revenue losses and additional costs for repairs and recovery.

2. Rising Health-Conscious Customers: The growing preference for healthier

dining options is a challenge for McDonald's, which is traditionally known for
indulgent fast food. Without adapting to this trend, the branch risks losing
customers to competitors with healthier offerings.

3. Economic Downturn: Economic challenges in the region, such as inflation or

reduced consumer spending, could further constrain the purchasing power of
the local population. This would make it harder for McDonald’s to maintain
profitability while competing with more affordable local eateries.

4. Competition from Local Fast-Food Chains and Eateries: The affordability and
cultural relevance of local food options attract a significant portion of the
price-sensitive population. McDonald's must adapt its pricing and menu
strategy to compete effectively and retain customers.
By leveraging its strengths and opportunities while addressing its weaknesses
and mitigating threats, the McDonald’s branch in Sagrada Familia, Naval, Biliran, can
maintain or even enhance its profitability and ensure sustainable market growth.
Proposed solutions
To address the challenges faced by the McDonald’s branch in Sagrada Familia
Naval, Biliran Province, particularly in maintaining profitability and ensuring sustainable
market growth, a strategic approach is essential. By leveraging insights from the SWOT
analysis, we can identify actionable solutions that capitalize on strengths, address
weaknesses, seize opportunities, and mitigate threats. These proposed solutions aim to
adapt the branch’s offerings to local preferences, optimize operations, and strategically
engage with both the local and tourist markets. The evaluation of these solutions
considers their feasibility, potential impact, and alignment with the branch’s unique
context to determine the most effective strategies for long-term success.
1. Tailor Menu Offerings to Local Tastes
Feasibility: This solution is moderately feasible as McDonald's has previously
implemented localized menu adaptations in various countries (e.g., McSpaghetti in the
Philippines). However, this requires research into local culinary preferences, staff
training, and adjustments to existing processes, which can take time and resources.
Risks: Introducing new menu items may increase initial costs for sourcing ingredients,
staff retraining, and marketing. There's also the possibility that the local menu items
may not resonate with the target audience or conflict with McDonald’s existing brand
standards.

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Benefits: Customizing the menu could significantly enhance the appeal of the branch
within the local community, fostering customer loyalty and driving more repeat visits.
This approach positions McDonald's as adaptable and culturally inclusive, improving its
reputation in the region.
2. Collaborate with Local Farmers and Suppliers
Feasibility: Highly feasible given Biliran’s agricultural landscape, which provides a pool
of potential partnerships. McDonald's corporate structure allows flexibility to source
ingredients locally, though quality control processes would need to be enforced.
Risks: Reliance on local farmers might introduce variability in supply consistency and
quality, especially during off-seasons or adverse weather conditions. Establishing
partnerships might also take time and resources for negotiation and training.
Benefits: Using local suppliers can reduce supply chain costs, ensure fresher
ingredients, and improve operational efficiency. This also strengthens community ties by
supporting local businesses, which can help build goodwill and attract more customers
who appreciate local sustainability initiatives.
3. Leverage Tourism with Targeted Marketing
Feasibility: Moderately feasible since Biliran’s tourism industry is experiencing growth,
making this a timely opportunity. Collaborating with local tourism boards, hotels, and
event organizers can be effective but requires strategic planning and funding for
marketing campaigns.
Risks: Depending too heavily on tourism could lead to seasonal fluctuations in sales
and revenue, potentially leaving the branch vulnerable during off-peak tourism periods.
Marketing efforts might not yield immediate results, and costs could outweigh short-term
benefits.
Benefits: Increased visibility among tourists can drive revenue during peak seasons. By
positioning McDonald’s as a reliable dining option for travelers, the branch can attract
non-local customers and boost its profile in the regional market. Seasonal success
could offset some of the challenges stemming from the limited local market size.
4. Introduce Health-Conscious Menu Options
Feasibility: Highly feasible, as McDonald’s already has experience offering health-
conscious items globally (e.g., salads and grilled options). Implementing these changes
requires minor adjustments, making it one of the easier solutions to execute.
Risks: Local customers may not immediately embrace healthier options, especially if
such preferences aren’t widespread in Biliran. Additionally, healthier menu items often
come at a higher cost, which could deter price-sensitive consumers.
Benefits: Catering to health-conscious customers allows McDonald’s to tap into an
emerging market segment. This not only mitigates the threat posed by competitors
offering healthier options but also helps retain customers increasingly aware of nutrition

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and wellness trends. It could further position the branch as a modern and forward-
thinking establishment.
While each solution addresses specific aspects of the profitability and growth
challenges, combining them strategically offers the most comprehensive approach. For
example, introducing localized menu items can strengthen community ties, leveraging
tourism can expand the customer base, collaborating with farmers reduces costs, and
health-conscious offerings can attract new demographics. The key lies in balancing
execution costs with long-term benefits while mitigating risks effectively.
Recommendation
In addressing the challenges faced by the McDonald’s branch in Sagrada Familia
Naval, Biliran, selecting the most effective solution requires a systematic and objective
approach. By defining clear criteria, we can evaluate the proposed solutions based on
their practicality, alignment with local needs, and potential to achieve profitability and
sustainable market growth. This evaluation framework ensures that the selected
strategy not only addresses the branch’s unique circumstances but also maximizes its
long-term success. Through this process, the best solution can be identified as the one
that balances feasibility, impact, and alignment with the branch’s goals and resources.
Thus, the criteria used in determining the best-proposed solution are feasibility, revenue
growth potential, and alignment with local needs.
Feasibility is critical because a solution that is too complex or costly to implement
is unlikely to succeed, regardless of its potential benefits. By assigning a high weight
(40%), this criterion ensures that the chosen solution can realistically be executed within
the current constraints of the McDonald's branch in Biliran. It avoids overwhelming
resources and allows for quicker adaptation.
Since the primary issue is maintaining profitability and market growth, the
potential for revenue generation is vital. Solutions that can drive consistent sales and
expand the customer base are highly valuable. Assigning 35% to this criterion ensures
that the selected solution significantly impacts profitability while balancing other
important considerations.
Since the primary issue is maintaining profitability and market growth, the
potential for revenue generation is vital. Solutions that can drive consistent sales and
expand the customer base are highly valuable. Assigning 35% to this criterion ensures
that the selected solution significantly impacts profitability while balancing other
important considerations.
These criteria are carefully weighted to prioritize actionable and impactful
solutions. Feasibility ensures that the plan is realistic, revenue growth potential focuses
on addressing the core issue of profitability, and alignment with local needs ensures the
solution has a sustainable foundation in the community. Together, these criteria provide
a balanced framework for identifying the most effective solution for the branch.
Table 2. Weighted Decision Matrix for identifying the best-proposed solution
Decision Weight Proposed Proposed Proposed Proposed

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Criteria Solution #1: Solution #2: Solution #3: Solution #4:
Tailor Menu Collaborate Leverage Introduce
Offerings to with Local Tourism Health-
Local Farmers and with Conscious
Tastes Suppliers Targeted Menu
Marketing Options

Feasibility 40% 35% 30% 25% 25%

Revenue 35% 30% 25% 20% 30%
Growth
Potential
Alignment 25% 25% 20% 15% 20%
with local
needs
Total 100% 90% 75% 60% 75%

Tailoring menu offerings to local tastes stands out as the best solution because it
effectively addresses multiple challenges the McDonald's branch in Biliran faces while
capitalizing on its strengths. From a feasibility standpoint, McDonald's has a proven
track record of successfully adapting its menu to various cultural preferences worldwide,
making this strategy practical and achievable. Introducing localized items—such as rice-
based meals or Filipino-inspired dishes—not only resonates with the local community
but also creates a sense of cultural connection and inclusivity.
The revenue growth potential of this solution is significant. By catering to familiar
tastes, the branch can attract a broader range of customers, including those who may
have previously favored competitors offering culturally relevant food. This shift
encourages repeat business, strengthens customer loyalty, and bolsters sales
consistently, which is crucial given the limited market size in Biliran.
Moreover, aligning menu offerings with local preferences directly addresses the
branch’s current disconnect with the community. Filipino customers often prioritize
flavors and dishes that reflect their culinary traditions. Incorporating these into the menu
fosters a stronger relationship with the local population, making McDonald’s not just a
fast-food chain but a more relatable and culturally attuned dining option.
Ultimately, this solution tackles the core issue of maintaining profitability and
sustainable market growth by blending practicality, cultural relevance, and revenue
opportunities, ensuring the branch remains competitive and resilient in the Biliran
market.
Conclusion
The McDonald’s branch in Sagrada Familia Naval, Biliran, faces significant
challenges in maintaining profitability and market growth due to internal weaknesses
such as limited market size, high operating costs, and a lack of menu options that align
with local tastes. Additionally, external threats like competition from local eateries,

14
natural disasters, and the growing demand for healthier food options further complicate
the branch’s ability to sustain long-term success.
However, opportunities exist to address these challenges and secure sustainable
growth. By leveraging its strengths, such as brand recognition, a convenient location,
and quality consistency, the branch can adapt its strategy to better align with the needs
of the local community. Among the proposed solutions, tailoring menu offerings to local
tastes stands out as the most practical and impactful strategy. This approach ensures
cultural relevance, fosters stronger community connections, and positions the branch to
compete effectively in the local market while enhancing revenue potential.
To achieve its goals, the branch must focus on implementing localized menu
items, streamlining operations, and fostering engagement with both the local population
and the growing tourism market. With the right mix of strategic planning and execution,
the McDonald’s branch in Sagrada Familia has the potential to overcome its challenges,
meet customer expectations, and establish a strong, sustainable presence in the region.

Appendices
Appendix 1. McDonald’s Location Map

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Appendix 2. McDonald’s Branch at Naval, Biliran
(Insert photo of McDonalds)
Appendix 3. Products offered by McDonald’s
(insert)
Appendix 4. The interior of the McDonald’s

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