McDonald's faced several obstacles when it expanded its menu. The increase in menu items led to customer confusion and slowed down service, resulting in a decline in customer satisfaction. To overcome these challenges, McDonald's shifted its focus to Customer Base Penetration and Customer Experience. It responded to customer demand for an all-day breakfast menu, reduced the number of menu options, and reorganized operator kitchens for faster delivery. This strategy led to a 5.7% growth in US sales in 2015.

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Growth IQ: Growth Strategies

How do you find the right strategy to grow your organization in a rapidly changing business environment? "Growth IQ" distills decades of tested strate...

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When McDonalds hit a growth stall in 2006, it responded by pursuing Customer and Product Diversification (Path 5) expanding its menu by 75% in ten years. However, the chaotic menu confused customers slowed down service and led to an overall decline in customer satisfaction. Recognizing this, McDonalds focused on Customer Base Penetration (Path 2) and Customer Experience (Path 1) once again. It responded to a long-standing customer demand to make its breakfast menu all-day. To ensure success, it shrank its menu options and reorganized operator kitchens for faster delivery. US sales grew by 5.7% in 2015. Customer Base Penetration need not mean stocking more products. For McDonalds it meant reducing the number of products to focus on their bestselling breakfast menu.

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The book 'Growth IQ' presents several innovative ideas. One of the most surprising is the concept of Customer Base Penetration, which doesn't necessarily mean stocking more products. For instance, when McDonald's faced a growth stall, it initially expanded its menu, which led to confusion and a decline in customer satisfaction. Recognizing this, McDonald's focused on Customer Base Penetration and Customer Experience. It responded to customer demand for an all-day breakfast menu, reduced its menu options, and reorganized kitchens for faster delivery. This led to a 5.7% growth in US sales in 2015. Another innovative idea is the strategy of Customer and Product Diversification, which involves expanding the range of products or services to attract a broader customer base.

The strategies presented in Growth IQ have significant potential for implementation in the food industry. For instance, McDonald's, a major player in the food industry, successfully applied these strategies. When the company faced a growth stall, it pursued Customer and Product Diversification, expanding its menu significantly. However, this led to customer confusion and slower service. Recognizing this, McDonald's shifted its focus to Customer Base Penetration and Customer Experience. It responded to customer demand for an all-day breakfast menu, reduced its menu options, and reorganized its kitchens for faster delivery. This led to a 5.7% growth in US sales in 2015. Thus, the strategies in Growth IQ, when applied correctly, can lead to significant growth in the food industry.

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