The Case Of Mcdonald's Case Study Of Mcdonalds

The effectiveness of a board also comes into question when board members have served together for such a long time. A member of the University of Tennessee’s Corporate Governance Center, Larry Fauver, pointed out that directors who have been serving as long as McKenna has with the same group might not have enough distance from management to be objective. He then asked a question that raised many eyebrows of shareholders: How independent could you possibly be to a company after 23 years? (Kowitt, 2015) Charles Elson, director of the John L. Weinberg Center for Corporate Governance at the University of Delaware, also agrees with Fauver. Elson states that any time the directors have relationships with each other outside of the boardroom, the greater

Since it is a global company, McDonald’s would benefit from recruiting directors with more cultural diversity as well as gender and ethnic. By bringing in younger board members with diverse backgrounds, we believe they would be able to regain their edge in the marketplace and stay ahead of

They believe that a CEO change will not be enough to get the company back on the right track (Wohl, 2015). After years of growth, McDonalds finally hit a rough patch back in 2014. Revenue, customer visits, and operating income decreased from the previous year. It was the first time they had a decline in same-store sales in over ten years. This has continued for the past five quarters, losing customers due to changing tastes, an overly complicated menu, and other fast casual chains like Chipotle. McDonald’s responded by hiring two new members tied to the health care industry, trying to shift with the U.S. customers towards healthier, fresher foods. Lloyd Dean, aged 65, has served as the CEO for Dignity Health for the past 15 years and John Mulligan, aged 49, is Executive Vice President and CFO at Target. While Mulligan does not have a direct link to the healthcare industry at Target, he is an active board member for the Minnesota Children’s Hospitals and Clinics. On the surface, both of these hires is a value-add and certainly a step forward for the McDonald’s board of directors. Obviously, it remains to be seen how much of an impact these new healthcare additions will affect McDonald’s in the future (Jargon,