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Case study of mcdonalds corporation
American dream and success
Mcdonalds case study business
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The movie The Founder was directed by John Lee Hancock and written by Robert D. Siegel. It is set in Illinois during the 1950s. It gives an interesting look into the way a man named Ray Kroc helped make a small hamburger restaurant owned by Dick and Mac McDonald become the largest leading firm in the food industry. It took brilliance, ambition, and ruthlessness from Kroc and the McDonalds brothers to get where they ended up. It is a tale of the successful American dream and is now embedded into our society today. Brilliance is something shown throughout The Founder. For Ray Kroc, it was evident he was very inspired. He had been a down out of luck salesman his entire life. His job at the time was selling milkshake makers for the company he worked for. When he found out the McDonald brothers wanted to buy eight of them, he drove to their establishment and was very impressed with the way it was being run and the quick service. He then saw potential in a place like McDonalds and wanted to be a part of it. He had many ideas for it and ended up franchising the business. As for the McDonald brothers, it was evident they had bright ideas as well. Dick and Mac had owned many different establishments based off brilliant ideas before McDonald’s. Although some may not have been successful, they still never gave up. Not only …show more content…
Every cent of capital was used by Kroc to build more franchises nationwide. He is someone who had been faced with rejection time after time. That is the reason why he was always coming up with ideas and making sacrifices to keep business booming for McDonald’s. It is something he has been triumphant at. On the other hand, the McDonald brothers did not approve of a lot of the things Kroc had been doing for the business. They had high moral and ethical standards set for themselves. Despite the high morals they had set, there is a lot of ruthless to be shown as
respected among their people. Emphasis is put on living by the heroic code. Honor is
Also in 1961, Kroc opened Hamburger University in the basement of a McDonald’s restaurant, in Elk Grove Village, Illinois. By 1963, McDonald’s was selling a million hamburgers a day. The company went public in 1965. In 1967 the opened their first international restaurant in Canada. In 1971, McDonald’s restaurants opened in Europe and Australia.
... is the founder he says “I merely wanted to get things straight” and Witwer agrees with “you’re the boss. What you say goes” (72). In the film Danny Witwer comes into the John’s room telling him that he is the boss and he will be making the rules around the building. This difference was beneficial to the film because it gives the movie a more interesting twist.
Most successful businesses like this would expand but Mac and Dick McDonald didn't. It only expanded when Ray Kroc had brought McDonalds from Mac and Dick McDonald. In other words if Mac and Dick McDonald had their own way McDonalds would never have been a global multi-billion dollar business. We can clearly see that because the size of McDonalds had increased this has caused the type of ownership to change from partnership to public limited 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)
While peddling about the country he came in contact with the super efficient McDonald's hamburger joint, which was started by Dick and Mac McDonald, who were brothers. He saw this place and optimistically envisioned many more opening up all over the country. He convinced the brothers to let him be their first franchisee. They agreed so in 1954 Ray opened up the first McDonalds franchise. A year later, Ray opened up the second McDonalds franchise in Des Plaines, Illinois. Only four years after the second restaurant's opening the one hundredth McDonalds was opened. In 1961 Ray Kroc bought the rights to the McDonalds franchise for a meager 2.7 million dollars. To pay this massive sum at the time he had to mortgage his house and take out numerous loans that would eventually cost him 14 million to pay back. After he bought the rights to the name and the company he forced Dick and Mac to remove their name from their original restaurant. But he went even further when he opened up a McDonalds restaurant a block down the road trying to put them out of business. Also that same year Hamburger University was opened.
Top level management includes Jim Skinner, the concepts of the late Charles Bell, and the late James Cantalupo. James Cantalupo was a former vice-chairman who had overseen McDonald's successful international expansion in the 1980's and 1990's. He came out of retirement and took over as CEO in hopes of quashing the potential downfall McDonald's was facing. He was instrumental in developing a strategic plan called "Plan to Win" which was the starting point for the turnaround at the beginning of 2003. This Plan contains aggressive goals and measures for success based on the critical drivers of customer experience or the 5 P's: People, Products, Price, Place and Promotion. (Chief Executive, Salad Days) Today sales are strong in domestic markets and even higher in the global markets. The plan focuses on existing customers and by changing their image to promote healtheir
Ray Kroc wanted to build a restaurant system that was famous for its food and also ...
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).
The McDonald's Corporation is the largest chain of fast food restaurants in the world. It is franchised in over 119 countries and serves an average of 68 million customers daily. The company started in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald in the United States. They reorganized their business as a hamburger stand in 1948. In 1955, Businessman Ray Kroc joined the company as a franchise agent. He purchased the chain from the McDonald brothers and oversaw its global-wide growth (McDonald’s 2014).
He saw how much potential the restaurant has, so he bought it out and opened one of the first franchises. Within the first year of Ray Kroc buying it, there were one hundred and two locations all around the world. McDonalds currently is one of the largest fast food restaurants in the world and currently has served over sixty four million customers through one of their thirty two thousand sites. It has almost become a way of life for America. Though, McDonalds started off as a small business between two brothers, it grew into one of the largest restaurant franchises in the world and greatly affects our society and how we eat our food.
McDonald’s has proven over time that the business practices they utilize work well and have led them to obtaining the title of the largest food retailer in the world. The founder of the company made a tactical decision in franchising the idea of providing fast food at a cheap price. Today, fast food has become a staple of not only American life but a viable food option all over the world. For McDonald’s a critical factor in them reaching the level of growth they currently experience has been franchising. It can be assured that McDonald’s will continue to grow through the usage of the franchising techniques as new food markets continue to develop all over the world.
McDonalds provide high quality products, such as burgers, fries, drinks, muffins, etc, which are safe and reliable that it does what it is supposed to do, but not only does the quality of the products matter, the good value for money affects the business. E.g. buy one extra value meal and get one free with a food voucher that represents the offer only. They ensure that a high standard of the product is carried out at all times and they try to compete very competitively with other fast food businesses with their good value for money. Also a customer would know if the product is good value for money by checking in another food outlet like KFC for their services and products.
McDonalds has always been a leader in the fast food industry. Through its dynamic market expansion, new products and special promotional strategies, it has succeeded in making a name for itself in the minds of the target customers. However, McDonald’s earnings has declined in the late 1990’s and 2000s. This is mainly due to a fiercely competitive industry and variety in customer tastes and preferences.