Mcdonalds Case Study

McDonald's Corporation is considered to be the largest fast-food operator in the entire World and was initially formed in 1955 after Ray Kroc had pitched the idea of opening up numerous restaurants founded on the original which was owned by Mac and Dick Mac McDonald. McDonald's in 1965 decided to go public and then introduced its flagship product, which was the Big Mac, sometime in 1968 (Botterill, 2007). Today, McDonald's functions beyond 40,000 restaurants in over 200 nations and have one of the world's most extensively recognized brand names. McDonald's sales started hitting around the mark of $58 billion corporation -wide and over $30 billion in the United States alone in 2012 (S&P).

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

With $8 billion in annual US revenues, McDonald’s spends around $1.5 billion a year on advertising to reach its customers. Chipotle has 2.2% share in the industry 25 years after its initial launch. With $4.4 billion in US revenues, it spends about $103 million a year on advertising. Chipotle appeals to the market with fast, healthy food at low prices in an attempt to keep up with the American public’s changing attitudes towards health. McDonald’s has also tried to keep up by adding healthy choices to its menu such as salads, but it still must overcome its image as being just a burger restaurant to appeal to the health-conscious crowd. Since its beginning, McDonald’s has positioned itself as a basic, low-cost convenience food provider with mass distribution and heavy promotion compared to Chipotle’s position of a low-cost quality food provider with mass distribution but light word of mouth promotion (Chart

REFERENCES•www.mcdonalds.com, accessed on 18 July, 2008•www.mcdonldsindia.net, accessed on 18 July, 2008•en.wikipedia.org/wiki/McDonald's, accessed on 19 July, 2008•http://www.associatedcontent.com/article/263943/mcdonalds_strategic_marketing_mix.html?cat=4, accessed on 19 July, 2008•www.kfc.com, accessed on 25 August, 2008

Kroc's idea of the way to develop McDonald's into a profit was to sell an operating service to partners. This revolutionary way of doing things, instead of just supplying franchisees with milk-shake formula and ice cream, is what led to

We’ll stay focused on adding greater choice and balanced options around the world [to enhance our food image], from wraps to oatmeal to new Happy Meal alternatives, as we stay in step with our customers’ needs’ (McDonald’s 2011, p. 2). Modernising our customer experience—‘continuing to modernize our restaurants to provide a superior experience for our customers, as well as our managers and crew. We’re adding new features and technologies that are making the drive-thru, ordering and payment processes easier. In addition, we’re moving ahead on our reimaging efforts, remodeling a growing number of restaurants with our contemporary new designs. With roughly 45% of our interiors and 25% of our exteriors reimaged around the world, we still have ample opportunity to keep reshaping our brand and delighting our guests with our updated restaurants’ (McDonald’s 2011, p. 2). ‘The customer experience efforts will include accelerating our interior and exterior reimaging efforts and providing our restaurant teams with the appropriate tools, training, technology and staffing’ (McDonald’s 2011, p. 11). 3 Broadening our accessibility—‘making the McDonald’s brand more accessible is another important priority. Continuing to deliver strong value across every price tier, extending our operating hours at more locations and strategically opening new restaurants in both emerging and mature

Construct a PESTEL analysis to show the competitive advantages that McDonalds has to stay and continue its operation in Hong Kong.

Mc Donald Corporation is one of the largest retail chain in fast food restaurants and serves more than 60 million customers in more than 100 countries. It is headquartered in the United States. McDonalds, which belong to restaurant industry, is one of the leading global food service retailers that deal with fast foods. McDonald’s number 1 Store Museum was the first McDonald’s restaurant opened in Des Plaines, Illinois in April 15, 1955 by McDonald’s Corporation founder, Ray Kroc. Affiliate, a franchisee or the actual corporation itself operates the restaurant today (Baines, Brown, Benedettini & Ball, 2012). In addition, the restaurant has more than 36,000 local restaurants that serve more than 68 million people. The restaurant serves more than 100 countries with 80% of the restaurant been franchised. The restaurant and its franchisees employ approximately 1.9 million (its website). The restaurant’s current president and Chief Executive Officer is Steve Easterbrook who took over after Don Thompson. The restaurant reflected a net income of $1.07 in last year, which was a decline of 30% from the previous year. According to Collett Miles (2017), Mc Donalds revenues have grown by close to 28 per cent over the last 5 years to $ 34billion, and 10 per cent growth in the operating income to $ $3.5billion. McDonalds deals with the selling of chicken, French fries, soft drinks and desserts

McDonalds is a fast food company that was founded in the 1940’s. In McDonalds short existence it has revolutionized not only the fast food industry, but the way in which business is conducted world wide. What the McDonald brothers and then Ray Kroc set out to accomplish was a business model that standardized all aspects of operation, in order to make expansion effortless. So great their power of growth that McDonalds now has over 31 thousand stores in over 118 countries. So iconic that the average US school child can recognize Ronald McDonald.

McDonalds Corporation has been a leader of the fast food industry since its launch in 1948. McDonalds has grown from a family burger stand to a global fast-food goliath, with upwards of 30,000 locations in 118 countries. (James, 2009) Under the organization of visionary Ray Kroc, a milkshake-mixer salesman, Dick and Mac McDonald opened the first burger stand in San Bernardino, CA. The dipping fries into shakes concept was born and McDonalds franchises swiftly grew: by the end of the 1960’s there were more than 1000 restaurants across the U.S. The first international location opened in 1967 in British Columbia followed by Costa Rica 1 year later. Thru 1979 the chain spread thru Japan, Holland, Sydney, Brazil, and South America. By

Strengths: McDonalds is the leader of the fast food industry and operates 36,899 restaurants in 120 different countries (Statista, 2016). Due to economies of scale, we can spread our fixed costs across many locations, which allows us to sell our food products at lower prices and keep value in our stores. Our size also gives us market power for obtaining better deals with suppliers, and for providing lower prices when competing against competitors. Also, we have more locations than our competitors so this adds convenience to our customers and gives us a competitive advantage. Lastly, due to being in business for more than fifty years we have a solid, established brand name as McDonalds is one of the few companies that is recognizable in almost every country around the world. Our famous golden arches and our bright-colored, smiling clown named Ronald, both stand for superior friendly customer service, efficiency, convenience to customers, quality, and cleanliness. We need to build upon these strengths to continually ensure that “Everyone is lovin’ it at McDonalds.”

McDonald has been a well-known and valuable brand for over half a century. The company’s mission and vision is striving to be the world’s best quick service restaurant and formalizing their beliefs into “People, Vision, and People Promise”. “Quality, Service, Cleanliness and Value” also became the company’s motto. The company’s first McDonald store was built “in 1940 by the original McDonald brothers, Dick and Mac. Later in 1954, Ray Kroc became the first official franchisee appointed by Dick and Mac McDonald in San Bernardino, California” (Chandiramani, Ravi). Soon after, Mr. Kroc opened his first restaurant in Des Plaines, Illinois, and the McDonald’s corporation was created. The new franchise began to grow rapidly as a result of its

Perseverance, inspiration and motivation have always played a key role in the success of any venture.

It all began in 1941 in San Bernardino, California, when Dick and Mac McDonald opened their first drive-in restaurant. It was carhops that they relied on, waiters that would go from car to car and take orders from the customers parked in the lot. Then in 1948, they changed the format of their restaurant to a self-service window and standardized their preparation methods to the “Speedee Service System”. This system allowed them to become consistent with exact product specifications and customized equipment. Ray Kroc met the brothers in 1954. He held the national marketing rights to the multimixers used in the restaurants to make milkshakes. Kroc became very interested in the way the McDonald’s brothers did business. He became a national franchise agent for the brothers, and founded the McDonald’s chain. The McDonald’s chain featured a limited menu, low prices and fast service. This is something that the restaurant is still known for today. But, as with any business, there are still faults.

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.