McDonald's is the world's leading foodservice retailer with 1.8 million employees serving 69 million people in 118 countries every day; from over 34,000 local restaurants, of which 80% are franchises. ("Knowing", 2013)I. Establishing a sense of urgency McDonald's is facing a financial crisis The dollar menu is no longer producing the desired results; providing a draw for customers and profits for the franchise. The Dollar Menu itself had little opportunity to generate profits directly (6 cents per hamburger), but indirect sales of higher profit-generating items by customers once lured into the store by the Dollar Menu were the means of generating profits. (Ransom, 2009) Inflation, recession, and many other problems leading to increased costs of preparing food products and maintaining franchise locations caused the failure of Dollar Menu and the resulting financial crisis. (Thompson, 2013) Declining profits and growing dissatisfaction from franchise owners have increased the level of urgency for the management team. The management team therefore communicated the issues clearly and was responsive enough to ensure that the crisis was seen as a reality by all employees. (Patton, 2013) The transition from an unprofitable and unsustainable Dollar Menu to the profitable Dollar and Up Menu was necessary to ensure the continued success of McDonalds franchise owners, the McDonalds company, and most importantly, McDonalds employees. ("McDonalds Mission and", 2013) Although there are no obvious signs of eliminating excesses, in fact there are reports that the benefits of cooperation have increased or a change can be found in the mechanisms by which performance is judged, the team of management communicated with customers (franchise owners )...... middle of paper ......Thompson, D. (2013, October 22). Why McDonald's eliminated the dollar menu: in 1 chart. Retrieved from: http://www.theatlantic.com/business/archive/2013/10/why-mcdonalds-killed-the-dollar-menu-in-1-chart/280778/Wong, V. (2013, October 23 ). McDonald's new "dollar menu" goes up to $5. Retrieved from http://www.businessweek.com/articles/2013-10-23/mcdonald-s-new-dollar-menu-goes-up-to -5Munarriz, R. (2013, October 24). $2 is the new $1 on McDonald's Value Menu. Retrieved from http://www.dailyfinance.com/2013/10/23/mcdonalds-revamps-dollar-menu/McDonald's reports October comparable sales shares. (2013, November 8). Retrieved from http://news.mcdonalds.com/Corporate/Press-Releases/Financial-Release?xmlreleaseid=123039McDonald's continues to invest for future growth. (2013, November 14). Retrieved from http://news.mcdonalds.com/Corporate/Press-Releases/Financial-Release?xmlreleaseid=123040