Comments on: Diversifying McDonalds http://www.filteringcraig.com/2003/03/27/diversifying-mcdonalds/ Where all the kids want to meet! Sun, 07 Sep 2008 16:51:03 +0000 http://wordpress.org/?v=2.6.1 By: Chris http://www.filteringcraig.com/2003/03/27/diversifying-mcdonalds/#comment-159 Chris Fri, 28 Mar 2003 22:38:37 +0000 http://www.craiglyndall.com/?p=73#comment-159 There is such a thing as "de-worse-ification," meaning expanding into businesses that you don't understand or can't compete in. Jack Welch lives by the rule that you have to be #1 or #2, otherwise you get out. I think that's probably a pretty good idea. Also, regarding your P&G example: CPG is a different ballgame from retail. When you're selling dish soap, a new product line can be nothing more than a packaging program. Rolling out/managing an additional retail concept is a bit more involved. Having said all that, it sounds a little like the new CEO might just be trying to score political points internally...the articles I looked at suggested that at least some of the non-arches concepts were profitable. There is such a thing as “de-worse-ification,” meaning expanding into businesses that you don’t understand or can’t compete in. Jack Welch lives by the rule that you have to be #1 or #2, otherwise you get out. I think that’s probably a pretty good idea.

Also, regarding your P&G example: CPG is a different ballgame from retail. When you’re selling dish soap, a new product line can be nothing more than a packaging program. Rolling out/managing an additional retail concept is a bit more involved.

Having said all that, it sounds a little like the new CEO might just be trying to score political points internally…the articles I looked at suggested that at least some of the non-arches concepts were profitable.

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