Case study: A Successful Company During Hard Times

When most firms were struggling in 2020, a food chain restaurant company known as MDC increased its revenues from Tsh.22.7 billion in 2019 to Tsh.23.5 billion in 2020. MDC net income nearly doubled during that time from Tsh.2.4 billion to Tsh.4.3 billionquite impressive. In 2021 the firm was rated as "Most Successful Company in the Country" in terms of their management and performance.

MDC added 20 new outlets in 2021 when many restaurants struggled to keep their doors open.

MDC low prices and expanded menu items have attracted millions of new customers away from sit-down chains and independent eateries. James Sommy, CEO of MDC, says, "We do so well because our strategies have been so well planned out." MDC served about 100 thousand customers every day in 2021, 40 thousands more than in 2020.

MDC in 2021 spent Tsh.2.1 billion to remodel many of its 42 restaurants and build new ones at a more rapid pace than in recent years. This is in stark contrast to most restaurant chains that are struggling to survive, laying off employees, closing restaurants, and reducing expansion plans. A rising cost of living is another factor that hurts businesses in the country. However, the firm has done nothing to respond to the need of budget customer who are increasing every day.

MDC top management team says everything the firm does is for the long term. MDC for several years referred to their strategic plan as "Plan to Win." This strategy has been to increase sales at existing locations by improving the menu, remodeling dining rooms, extending hours, and adding snacks. The company has avoided deep price cuts on its menu items. Other strategies being pursued currently by MDC include replacing gasoline-powered cars with energy-efficient cars, lowering advertising rates, building new outlets on street corners where nearby development hows signs of weakness to increase sales and efficiency.

Requirements:

1. Use information from this case to respond to the questions below.

2. Give a direct answer. One sentence for each point.

Questions:

1. State the mission of MDC

2. Provide two objectives of MDC

3. List five strategies used by MDC to succeed in a competitive market

4. List two strengths and two weaknesses of MDC

5. List two opportunities and two threats of MDC