Customer Value Proposition : Mcdonald 's Owner Value

'I love it' was the famous tagline which was recognized to every part of the marketplace, let it be elderly people, kids, or even youngsters. McDonalds has turned out to be a global success not to mention foodservice business, which activated its actions in the 1940's. The idea of McDonalds was presented by brother Dick and Maurice McDonald, by getting a 'hamburger stall' opened in San Bernardino, California (Thomadsen, 2007). They presented an indication of marketing their food inexpensive than opponents by saving on the car hops and persuasion clienteles in its place to go to a counter in order for them to start ordering their food. This idea assisted in faster reversal of the clienteles. This innovation was really proven to

McDonald's has successfully created a brand/name for itself as the leading fast food retailer in the world. It is somewhat of impossibility for one to not come across a McDonald's with over 30,000 local restaurants in over 100 countries (McDonald's, 2011). Those restaurants are owned either by a franchise owner or a corporation; a percentage of all the earnings from a franchise owner, including a percentage from their annual revenue go to McDonald's.

Obviously, customer is the core purpose as well as the reason for McDonald’s existence in society. McDonald’s aims to provide a superior value in products and service to satisfy its customers’ expectation. However, this mission statement has not mentioned about how well it serves the other stakeholders

Almost sixty-four percent of its stock holders held are institutions. Places such as, Bank of America, Northern Trust Corp, Wellington Management Co and many others that are interested in this company’s growth. Since opening in the middle of 1960’s, McDonald’s any one can recognize its trademark golden arches. We as Americans cannot turn a street corner without seeing a different McDonalds down the road. They are located everywhere, but that just means more profit for the company and its stockholders. The company owns and leases out real estate primarily in connection with its restaurant business. It generally owns the land and buildings or secures out long-term leases for the restaurant sites.

They are enhancing the customer’s experience. “Across their markets, they are making is easier for customers to enjoy a great McDonald’s experience. They are introducing drive-thru to the increasingly mobile populations in China and Russia, while in the U.S. and Canada, greater drive-thru efficiency and double drive-thru lanes enable them to serve even more customers quickly” (McDonald's, 2008, 13). In Germany, McDonald’s has a reimaging program that includes adding about 100 McCafes. They are also installing new kitchen operating systems so that they can continue to deliver high food quality. McDonald’s has already renovated about 10,000 restaurants worldwide. They want their restaurants to be an expression of their brand. The company is also delivering greater value to the customer with new menu selections. “By serving a locally relevant balance of new products, premium salads and sandwiches, classic menu favorites and everyday affordable offerings around the world, they create value for customers and satisfy their demand for choice and variety” (McDonald's, 15).

Macdonald’s offers a strict, but mutually beneficial franchising and licensing agreements that have a term of 20 years (McDonald’s, 2014). Before an individual obtains a franchise or a licensing opportunity, a careful scrutiny of the restaurant location must conform to expectation of future growth of the business. The scrutiny ensures long-term profitability of the restaurant. The process of setting up a restaurant is very thorough. The franchising and licensing agreement allows the corporation to have enough cash for further expansion. Expansion creates dominance and goes a long way to stamp authority as a

Over the last ten years app base technology has evolved marketing methods of the fast food industry and increase the exposure of companies to the end consumer(Elgan,2014). Apps have also helped the fast food industry give customers access to menu items, advance payment, and GPS store location(Elgan,2014). The change has helped the fast food industry enhance the experience of consumers and has helped them increase the service that they provide.

McDonald’s corporation started in 1944 as a drive-in restaurant in California. This single location was started by Dick and Mac McDonald. That location was altered in 1948, when the start of the 19 cent cheeseburger became popular. They had continued growth over the years and by 1965 there were over 700 restaurants in service. Since that time they have grown dramatically. As of 2011, they are operating in 119 different countries. They have more than 35,000 restaurants and over 1,8 million employees. McDonald’s direct competitors are Burger King and Yum brands (Taco Bell, KFC, Pizza Hut). Forbes profile describes McDonald’s as “As of December 31, 2011, of the 33,510 restaurants in 119 countries 27,075 were franchised or licensed (including 19,527 franchised to conventional franchisees, 3,929 licensed to developmental licensees and 3,619 licensed to foreign affiliates (affiliates)-primarily Japan) and 6,435 were operated by the Company. McDonald's menu includes hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, Snack Wraps, French fries, salads, oatmeal, shakes, McFlurry desserts, sundaes, soft serve cones, pies, soft drinks, coffee, McCafe beverages and other beverages.” They are considered #6 by Forbes on the World’s Most Valuable Brands. Their dollar menu and attention given to children’s products in their much marketed Happy Meal’s have brought them much attention and wealth.

In todays world, technology has become a large contribution to everyones daily life. We ese it to check the time, weather, get in contact with other people, and to stay in the loop on social media. Even so more dependent on your phone that without it you feel a void. Ritzer uses the example when someone Googles something or blog about a recent trip, he relates that to McDonaldization. According to George Ritzer, McDonaldization "is the process by which principles of fast food restaurants have to come to dominate virtually every aspect of society.” He uses the example McDonalds and other fast foods such as Wendys, Domino, Burger King, etc that offers a different way of labor intensive. The reason why it has been so compelling is because it is so convenient and affordable. These reasons make it easy and important for our society

McDonald’s emphasizes cleanliness and food safety, in addition to quality and value service (QSC&V), through which it has succeeded in obtaining customer trust. The company also stresses ethical practices, dependability, and truthfulness in dealing with customers (McDonald’s, 2012, p. 1). Moreover, McDonald’s employs a coordinated marketing strategy that involves analyzing customer wants, creating products to satisfy his or her needs, setting the right prices and enhancing awareness of

As claimed by George Ritzer in his article The McDonaldization of Society, “McDonald’s has succeeded because it offers consumers, workers, and managers efficiency, calculability, predictability, and control” (Ritzer, 12). These four dimensions are the major components of the model of McDonaldization, a term that Ritzer defines as “the process by which the principles of the fast-food restaurant are coming to dominate more and more sectors of American society as well as the rest of the world” (Ritzer, 1). The first component, efficiency, is the “optimum method for getting from one point to another” (Ritzer, 12). Efficiency focuses on creating the optimum method where the food is not only quickly prepared, but also quickly consumed. Calculability is the second component of the model of McDonaldization, which places emphasis on the quantity

McDonald’s has extremely strict rules when it comes to awarding franchises. First, it is very costly to open a new location or purchase an existing location, with the median startup cost being $300,000 (Kalnins & Lafontaine, 2004, p. 750). As well, the company does an extensive background check on a variety of issues including credit history, business management experience, and the acceptance of the contractual agreement that the company provides. Because of these strict rules and the large amount of capital needed to purchase a location, “rates for franchise applicants are 1% for McDonald's” (Norton, 1988, p. 204). This is an extremely low acceptance rate and is even lower than McDonald’s chief competitor, Burger King, who accepts 1.5% percent of applicants (Norton, 1988, p. 199). These low numbers are understandable in the context of the business and risk that is involved. Though the franchise purchaser must pay a large amount of money to gain the rights to the restaurant, they truly have nothing to lose besides money because they are simply running another company’s business model as well as using their trademarks and logos. McDonald’s on the other hand, has a great amount at stake because they place the well being of an entire restaurant into the caretaking of an individual who simply purchased the rights for the store. If the store does poorly or if there are issues with customer service, it reflects

Since McDonald’s is the most well know fast food chain in the world with a market cap of 69.35 billion, brand recognition is their biggest strength. The secret of McDonald’s success is its willingness to innovate and maintain consistency in the operation of its many outlets. In recent years McDonald’s has introduced Premium Salads, Snack Wraps, fresh Apple Dippers in the United States, and Corn Cups in China. Also, McDonald 's products are priced so low that economic conditions are almost insignificant.

The main problem from McDonald's case, McDonald's Polishing the Golden Arches, is how to classify McDonald's strategy through Plan to Win into one of the five generic competitive strategies. Before we solve this main problem, we should determine the chief economic and business characteristics, the five forces analysis, and also the driving forces of the fast-food industry. After that we identify the strengths, weaknesses, opportunities, and threats by using SWOT analysis. Finally, we classify McDonald's strategy into one of the five generic competitive strategies.

Because the total cost varies from restaurant to restaurant, the minimum amount for a down payment will vary. Generally, you need a minimum of $300,000 of non-borrowed personal resources to be considered to open a McDonald's franchise. Individuals with additional funds may be better prepared for additional or multi-restaurant opportunities which McDonald's encourages.