Since Richard and Maurice McDonald founded in 1948, McDonald's has grown from a small restaurant in California into one of the most recognized brands in the world with a chain of outlets that spans the globe. For over 50 years, McDonald's defined the fast food industry while indelibly etching its golden arches logo on the face of both American and global culture through such icons as character Ronald McDonald and the Big Mac sandwich. Millions of people started their very first jobs at McDonalds while even more began to have their eating habits redefined by the chain. Concepts like the drive-thru window were introduced along with the Happy Meal for children in order to provide a fast, affordable, and enjoyable dining. Ray Kroc, saleman that brung his marketing skill, that gave a new meaning to the business of fastfoods. He exploited McDonald successful and came up with a mix that spread throughtout the US.
Mcdonald's have more than 30,000 restaurants in over 119 countries. In 2002, they had served over a 16 billion customers and still counting. McDonald's Marks 4th Consecutive Year of Strong Global Comparable Sales. (www.mcdonalds.com) Global comparable sales rose 7.2% in December, on top of a 5.0% increase achieved for December 2005. Global comparable sales for the fourth quarter were at 6.3% and 5.7%, respectively. While in the US comparable sales up 6.9% for the month, 5.9% for the fourth quarter and 5.2% for the year.
Franchise, it was until Ray Kroc seen that the key was in opening rapid expanision of the company. Today, there are over 70
SWOT ANALYSI...
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...think perhaps the biggest lesson from this study lies in avoiding tit for tat principle. Palm did not take every opportunity that came their way. They thoroughly analyzed each one and did not spread themselves too thin. Overall, I think this case study was very helpful. I believe I now understand the judo strategy much better. I also believe that if employed successfully, it can definitely be a strength to any small company.
References
Dess, G., Lumpkin, G., & Eisner, A. (2007) Strategic Management (3rd ed.). Boston: McGraw-Hill Irwin.
Yoffie, D., & Kwak, M. (2001). Mastering Strategic Movement at Palm. MIT Sloan Management Review, 43-1, 55-63.
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Arthur, A., Thompson, Margaret, A., Peteraf, John, E. Gamble, A., J., Strickland III. (2014). Crafting & Executing Strategy: The Quest for Competitive Advantage 19e: Concepts & Cases. C6-C25.
From just one restaurant in San Bernadino, California, run by two brothers, McDonald’s has grown to become the best known and most popular fast food restaurant chain in the world.
Hill, C. W. L & Jones, G. R. (1998). Strategic Management Theory (4th edition). Boston New York: Houghton Mifflin Company
As a company, McDonald’s was first introduced in Des Plaines, Illinois in 1955. This was the very first McDonald’s restaurant, which all started in San Bernardino, California in 1954 when Ray Kroc approached the McDonald brothers with a business proposition to start a new company. In 1965 McDonald’s went public and was later, in 1985 added to the Dow Jones Industrial Average. (www.mcdonalds.com) The company has gone through quite a few changes with its changing CEO’s over the years, but the company seems to be on track with CEO Jim Skinner, named in 2004. Skinner was named the new CEO just in time to clean up after McDonald’s first ever quarterly loss. He succeeded by showing that McDonald’s revenue had climbed 11% during 2006 and net profits had climbed 36%. (Dess, Case 40 Pg. 1)
The story of McDonald’s was started by a man named Ray Kroc and his great eye for
McDonald's Corporation is the largest fast-food operator in the World and was originally formed in 1955 after Ray Kroc pitched the idea of opening up several restaurants based on the original owned by Dick and Mac McDonald. McDonald's went public in 1965 and introduced its flagship product, the Big Mac, in 1968. Today, McDonald's operates more than 30,000 restaurants in over 100 countries and have one of the world's most widely known brand names. McDonald's sales hit $57 billion company-wide and over $25 billion in the United States in 2006 (S&P).
In 1980, McDonald’s gained three major achievements. They marked their 25th anniversary since Ray Kroc opened his first restaurant. They did not celebrate that much, but they were happy nonetheless. McDonald’s also opened their 6,000th restaurant internationally in Munich, Germany. They did not stop opening restaurants interna...
2015 saw McDonald 's wanting to increase the systemwide sales growth by between 3% and 5% over the 2016 calendar year. The objective was to open
John G. S., 2008: Strategically thinking about the subject of Strategy [e-journal] 9(4) p.2 Available through:
McDonald's was started in 1955 by Ray Kroc and has grown to more than 30,000 restaurants in 121 countries. McDonald's also had $10.1 billion in system-wide sales and $271.9 million in corporate profits on revenues of $3.7 billion in the year 2001.
Mc Donald’s is world’s famous fast food restaurant chain consisting of 34000 local restaurants. It is present in 119 countries serving 47 million customers on daily basis. It is globally recognized by the Golden arches as its logo. In 1954, Mc Donald’s founder Raymond Kroc passed by a hamburger stand in San Bernardino, California and then he came up with an idea of forming a countrywide fast food chain.
In 1954, Roy Kroc, milkshake machine salesman, visited a restaurant in San Bernardino that run by two brothers, Dick and Mac McDonald. The restaurant offered very limited menu but operated with great efficiency, focusing on quality and speed (Our History, 2016). He was so impressed by their operation that he seized the opportunity to become their agent. In 1955,
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business review, 25-40.
Witcher, B., and Chau, S. V., 2010. Strategic Management: Principles and Practice. Cengage Learning EMEA.
Product is fairly similar to competitors – the McDonalds menu is quite similar to many of its competitors such as Burger King and Wendy’s. This forces McDonald 's to have to lower its prices in order to continue to be competitive.