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McDonald's head office approval was needed before an item proposed by local stores (e.g., fish filet or McMuffin) could be added to the menu; this

  • McDonald's head office approval was needed before an item proposed by local stores (e.g., fish filet or McMuffin) could be added to the menu; this would require careful screening, test marketing, and further tweaking
  • The Filet-O-Fish was proposed in the early 1960s by Lou Groen, a local franchisee in a Catholic community who didn't do much burger business on meatless Friday. After the introduction of this item, Friday sales increased drastically, even on other days of the week. Even hamburger sales were higher since burger lovers could bring their meat-averse spouses and kids for a meal.

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  1. Why might "fish filet" not succeed as a worldwide menu item? (hint: supply chain, standardization) Please be very detailed and explanatory in paragraph.
  2. What are the benefits of decision-making centralization and decentralization for McDonald's? Please be very detailed and explanatory in paragraph.
  3. What level of (de)centralization would be best for McDonald's? Should McDonald's stores everywhere have the same menu? Please be very detailed and explanatory in paragraph.

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