Analysis Of Ray Kroc 's S Hamburger Stand

3714 WordsMay 1, 201515 Pages
Introduction In 1954, Ray Kroc who was a milkshake mixer salesman went to visit McDonald’s hamburger stand when he heard they were running eight mixers at once and he was impressed by how rapidly customers were served. So he became Dick and Mac McDonald business partner and opened his first McDonald restaurant (Entrepreneur, 2015).When McDonalds started, they only had nine items on their menu but Ray Kroc decided to innovate and start creating diversity of different sandwiches. Hence he decided to follow Peter Ducker’s theory “ Make what you can sell and not sell what you can make”, it was a smart idea because people usually get bored of one product and he started to use the NPD process to create new sandwiches using chicken, meat, and new…show more content…
Today’s organization revenue is 27,44 billion dollars with 85,706 million dollars brand value (Statista, 2015). Recently, people are becoming health conscious and a lot of other fast food chains are entering the marketing with healthier menus, which can be a threat to McDonald Corporation. This essay will argue that for this organization to stay successful it should find the solutions for it’s challenges, use the right segmentation and positioning strategies in the marketing of it’s products and finally employ the right promotional tools in order to further promote it’s brand. 1) Challenges and solutions Therefore, the solution can be found by using business models or creativity. Starting with the macro environment PESTEL analysis; politically, the governments are trying to control the fast food chains because of health concerns such as cholesterol, cardiovascular and obesity issues but the corporation can overcome it because it pays taxes and offers jobs opportunity so it’s helping the economy. Economically, even though it is paying low salaries to it’s employees its still offering a lot of jobs in emergent countries who have high unemployment rate and selling low price food that people can afford. Socially, McDonald’s tries its best to have an integrated menu in each country like the McArabia sandwich in the
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