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mcdonalds brief history
strategic drivers of of mcdonalds
mcdonald's as a global company
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Case Study on McDonald
Suman Malla
International American University
BUS 700 Capstone: Advance Strategy and Competition
Teacher: Prasanna Pokharel
Date: May 15, 2016
History of McDonalds: In history, McDonald company is a very old company. McDonald family migrates to United States in late 1930. The head of McDonalds family Mr. Patrick McDonald established his food court business named as a “The Airdrome” a special name of hot dogs. The business of McDonald’s slowly increases and added a drinks and other Hamburgers items. After slowly rising the business, they think to shift their business in big buildings with good facilities of food items and resources. In the year 1940s, the food items business is named as a “McDonald’s
After doing the analysis on research they found that the most popular, acceptable and profitable item in the menu is Hamburger. That’s why the McDonald’s company is more focusing on Hamburger items and eliminate the other foods items. Along with this, McDonald’s Bar B Que is renamed as a McDonald’s only. By this way, the McDonald’s become the one of the largest food court business in the world and its has a very popular rich history of past. McDonald’s is only the restaurant in the world who starts its business in franchising according to the cultural of area and have a restaurant all over the world. Only in the California they have a more than 47 million customers. It shows that the popularity of their business among the populations. Along with this, they are serving a quality of product in cheap price, so they are creating the opportunities, values and ration in the market then others
Some of the strength and opportunities created by the changes made in business are
Firstly, they established their business to attract the customer which arrives from the air bus because of the simple and common in menu. When the customer and air buses increases, their sales are increases and demand for the hamburger is high, so they are mainly focusing in the Hamburger products.
And then, they start doing business in their own building and renamed the company as a “McDonald’s” with the expansion of their business. In the USA, this was the time that the McDonalds starts doing business in concept of franchise. So it becomes the one of the top largest company in food chain business. The company is more focusing on satisfaction of customer about their product without compromise the quality of food and customer services. They comparatively change the strategy and made a decision of marketing campaign to attract the more
Mcdonalds is one of the biggest and largest fast food chains in America, it can be viewed as a cultural icon. The principles of McDonalds as a business has a tremendous influence on every aspect of a culture. The business characterizes American Culture through the impacts on our society and economy.
McDonalds has added extension to previous restaurants that are very popular and added their McCafe, this helps to attract more customers, McCafe also offer more variety of products that can be selected at McDonalds, and for example a customer can pick smaller products like snacks from the McCafe like muffins. McDonalds is also known for situation their restaurants around already developed car parks, this save them building a car
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.
McDonald’s was the first company to try to export America’s fast food and changes in eating habits to other nations. McDonald’s has over
Everyone has heard of McDonald’s, but where did this familiar name come from? When people think of American food, it is not uncommon for two golden arches to appear in their minds. This story began with two brothers Dick and Mac McDonald who owned and ran a small restaurant in San Bernardino, California during the 1940s. In 1954 a man named Ray Kroc came across these two brothers while selling multi-mixers and was impressed with the business they were running. The menu was compact, listing options for only a few burgers, fries and beverages, but the restaurant was effective in its operation. Ray Kroc pitched the idea of spreading McDonald’s restaurants across the United States and in 1955 he founded the McDonald’s Corporation. By 1960 he bought the exclusive rights to the name. Kroc was able to expand substantially on this small business so that by 1958 McDonald’s sold its 100 millionth hamburger. (“McDonald’s.com”)
According to Royle (1999) McDonald’s is a very large multinational enterprise (MNE) and the largest food service operation in the world. Currently the company has 1.5 million workers with 23,500 stores in over 110 countries with the United Kingdom and Germany amongst the corporation’s six biggest markets, and over 12,000 restaurants in the United States. In 1974 the United Kingdom corporation was established and in 1971 the Germany corporation was established, currently the combined corporation has over 900 restaurants and close to 50,000 employees in each of these countries (Royle, 1999).
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)
Have you ever wondered how the business empire of McDonalds was started? With over ninety nine billion served, it was started in 1940 in San Bernardino, California. It was started off as just a Bar-B-Q that served just twenty items. Its first mascot was named “Speedee” They eventually realized that by setting up their kitchen like an assembly line that they could be much more productive and get their food done faster, with every employee doing a specified job; the restaurants production rate became much higher. A milkshake machine vendor came into their small restaurant one day, his name was Ray Kroc. 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.
With strength ultimately comes weakness and McDonald's has its fair share, especially in the last few years. Many weaknesses are due to the external environment which includes market saturation, increased price competition, and food and labor costs. These weaknesses affect many firms in the fast food industry so McDonald's is trying to effectively combat these forces using a differentiation strategy. Developing new products such
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.
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 today’s market, McDonalds faces numerous challenges such as fierce competition, a more health conscious customer, and the continual need for improved customer satisfaction and menu. McDonalds needs to go through some changes in order to remain ahead in the fast-food industry.
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).
McDonald’s is one of the popular fast food chains in Hong Kong and the success of McDonald’s is due to it is able to create a homogeneous “global” culture that suit to the demands of a capitalist world. In Hong Kong, Time is money thus McDonald’s strategy is consistently fit to the fast food industry. The company has both economic strategy targeting at customer globally and locally.