Wednesday, May 2, 2018

Why did McDonald's Holdings Japan recover its performance?

Two years ago, McDonald's had shown the intention to sell 33% (about 100 billion yen) of the shares held by McDonald's Japan. It is because McDonald's finally set a deadline because McDonald's dropped off the 30 billion yen deficit annually.

In the first place, the reason that Japan McDonald 's got into trouble is that Mr. Harada took office as CEO. Mr. Harada originally served as vice president at Apple, and was called "professional manager". At that time, head hunting was from McDonald's in the United States, and it was decided to become president of Japan McDonald.

Mr. Harada got the attention of the public like being reported as "from Mac to Mac".

Mr. Harada promoted structural reform since its inauguration and continued to fight off executives who have contributed to McDonald's until now. Many of them were elderly employees since former president Fujita and were the people who supported the growth period of Japan McDonald's.

McDonald 's management team in Japan was also familiar with the scene and frankly said that the trust from the FC owner was also great, so that the management team of Japan McDonald' s had few talent to know the site.

In addition, consumers were criticized for the elimination of the menu table of the cashier countersigned as a reduction in waiting time. Mr. Harada thoroughly disregarded consumers' opinion, despite the many opinions "too inconvenient!"

After that, scandals such as foreign matter contamination continued one after another, and McDonald 's Japan caused a serious consumer detachment. Japan McDonald 's, which had been a favorable achievement in the surplus until now, has reached a result that will cause annual deficits of 30 billion yen.

Why was Japan McDonald 's been in such a bottom, why was it able to recover its performance?

There is no doubt that the presence of Sarah Casanova, who was newly appointed to the president, is big. In the past 45 years in 2015, from the worst 30 billion yen deficit, in 2017 just two years later I rebuilt the company to achieve record high profits in the history of Japan Macdonald.

Ms. Casanova returned to the thorough site regime that was lost from Japan McDonald's. The president himself around 47 stores in Japan prefectures, speaks to customers and picks up live voice. From that voice promote improvement on site to focus on making better stores. And succeeded in producing hit products one after another, such as the new product Grand Series which was a big hit in the regular menu for the first time in 8 years.

In addition, Ms. Casanova was doing "real site-based" while returning to the site-based approach. It is that Japan McDonald 's was panting for a big deficit, I decided to raise the salary of the employee daringly and to restore the motivation of the site.

When Casanova appeared in Cambrian Palace, I left the following comments.

"McDonald's business is supported by people"

"For us to succeed, our employees must first be satisfied."

The scene is everything. Casanova cherished that "business is a connection between people and people" and succeeded in recalling customers who were away. Currently, McDonald's in the holiday shop is crowded with guests with families.

If you think about it, Amazon's business policy, which has grown as the world's largest enterprise, is "to value customers the most on the planet". Customer First is important, nothing is common not only McDonald's but also any business model.

Ms. Casanova sticking to site-basedism, Mr. Harada who disregarded on-siteism.

Which management policy is right will be obvious once you look at the numbers.

Former senior officials who were pushed for "incompetent branding" by Mr. Harada appointed President Burger King, President Mos Burger, President of Freshness Burger, President of Komeda, President of Sukiya, now has a great career over McDonald's I'm doing it.

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