The Advantage Of Mcdonalds: The Business Strategy Of Mcdonalds

McDonalds was founded in 1943, and 1967 British Colombia was its first international expansion, advertising to middle and upper class. McDonalds decided to expand internationally, due to the enormous success in America. There was heavy research involved in the expansion. Through globalization and internationalization, McDonalds were able to develop marketing strategies according to cultural needs, to serve specific target markets. McDonalds enter India’s foreign market and 1996 and is a tough foreign market to enter, but with McDonald’s success they were able to earn high revenue in India. The success strategy is researching and the development of food. McDonalds thoroughly analyzed the preferred taste, especially to not offend locals. Their key to success is to “think global, act local.”

McDonald's has successfully met the demands of its customers by gradually adding to their menus. Breakfast meals, hamburgers, chicken, salads, salads and even desserts are provided by the restaurants which aids in the success of McDonald's. The organizational structure for McDonald's

McDonald’s is a global leader in the fast-food industry with 80% of its 36,000 restaurants franchised-owned with 1.9 million people employed in more than 100 countries (*). As a multinational corporation, McDonald’s has had to develop a global business model that can be implemented within local frameworks, opportunities, challenges and markets (*).

McDonalds’ is one of the best and largest fast food restaurant chains in all over world. They have 30,000 restaurants in over 100 countries. Their main object is to be best in fast food market rather than to be biggest restaurant chain in world. They served over one billion people in 2007 moreover their income was down in 2007 but they made a revenue record of $ 23 billion. As they have great brand image in market so to keep that brand image and that standard they always keep focusing on their strategies. Like in U.S. they are focusing on breakfast and chicken so, they launched new product for promotion which is southern style biscuit for breakfast and southern style chicken for lunch it attracts people a lot and in Europe their menu features premium selection and classic menu which offers a cheap or affordable meals and they also provide limited time food promotion moreover in Asia-pacific, middle east and in Africa their plan is to focus on convenience, breakfast and value.

McDonald’s has developed a series of marketing strategies to meet is mission and challenges. One of them is its adaption to local preferences. Let’s take India as an example. “Many Indians are either Hindus or Muslims. The article “Etiquette in Indian Restaurant” indicates that “in Hinduism, the cow is considered a sacred animal so it cannot be eaten; Similarly, Muslims consider the pig to be a very filthy animal so it cannot be eaten”. Because of such religious beliefs, most restaurants do not serve beef and pork. So there is only Chicken on the McDonald’s menu. Besides that, Indian prefer spicy food, even the sundae is spicy. Thanks to that, McDonald’s has remarkable achievements in its global expansion. Two-thirds of its new restaurants are opened outside America.

McDonald's is the world's leading food service retailer with more than 30,000 restaurants in 119 countries serving 47 million customers each day. It is one of the worlds most well-known brands and holds a leading share in the globally branded quick service restaurant segment of the informal eating-out market in every country they do business. McDonald’s marketing strategy is having friendly people serving the right product with affordable prices. McDonalds’s showcase their restaurants as clean, comfortable and welcoming, and create promotions that resonate with key consumer groups. They want to stay in tune with customer’s lifestyle.

McDonalds is less of a restaurant, and more of a vicious entity. This friendly restaurant is making its way into every aspect of our society with poorer education, horrible customer service, and so on. The problem being that our culture is embracing these traits and behaviors of McDonalds, society is becoming lazier and focusing on quantity instead of quality. There are four dimensions of McDonaldization that highlight how it is impacting societies worldwide: efficiency, calculability, predictability, and control. Efficiency is getting from one place to another the quickest way possible, calculability is when bigger quantities are better, predictability is when things are the same in terms of taste etc.

McDonalds has been around since 1940, when it was created by Nick and Mac McDonald in Bernardino, California. Since then McDonalds has only grown around the world in popularity and business. There are currently more than 33 thousand restaurants around the world in 119 countries. The chain has remarkably gone form offering just a few items on its menu to a wide range of over a 145 diverse items on its menu. Needless to say McDonalds has embedded itself within the world’s society. The way McDonalds runs its business has many different components. These different items include geography of a location, Weber’s model, development, and mass consumption.

In General The McDonald’s Corporation operates and franchises Mcdonald’s restaurants in more than 100 countries. They serve a relevant menu to the location they are in that provides quality food and drinks at affordable prices. McDonald’s system holds both company-owned and franchised restaurants. McDonald’s restaurants are operated and owned under either of the following structures- Conventional Franchise, development licence or affiliate. The relationship between McDonald’s and the franchisees is critical for the overall performance of the McDonald’s brand. The business relationship is supported by contractual agreement that requires commitment to standards and policies to protect McDonald’s Brand.

From drive-through restaurants, to Chicken Mc-nuggets to a hamburger joint, McDonald?s has come a long way. It?s the leading chain of fast food restaurants in the world that serves more than 55 million clients on the daily basis. In 1940, the corporation was established by two brothers from California, Maurice and Richard McDonald. However, directed by Ray Kroc, the current McDonald?s business times its establishment to the inaugural of a licensed restaurant on 1955, in Illinois. Later, the McDonalds expanded globally after Kroc bought the brothers? capital in the company. Today, McDonald?s runs about 32,000 restaurants globally, in about 115 countries (Eric, 2001). The restaurant provides its clients with great tasting and cheap food; dealers with a mutual obligation to deliver the highest quality products and ingredients; and franchisee and staff with opportunities for growth. Through its growth into numerous worldwide markets, the company has become a figure of globalization and a great supporter of how Americans live. It has become a common public debate topic about consumer responsibility, company ethics, and obesity, due to its fame (Eric, 2001).

Almost everyone has eaten at a McDonald’s location and roughly 1 out of every 10 people has worked at this fast food chain at some point in their lives. I belong to both these groups and I have also heard much of this restaurant from business school. The corporation has a few simple goals that are versatile in different environments and cultures. “McDonald's main aims are to serve good food in a friendly and fun environment, to be a socially responsible company, and to provide good returns to its shareholders.” (McDonald’s). These are the principles that guide MCD both domestically and globally.

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

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

McDonald’s is a famous fast food brand in the word which owns 35,000 outlets located in 119 different countries. In 1990, the first McDonald’s store opened in Shenzhen. But before they actually started their business, McDonald’s had already carried out 5 years business research and all sorts of information gathering such as the income level of the Chinese people, the kind of foods they enjoy etc (Han, J. 2008). For product perspective, McDonald’s create a standardized set of products that taste similar no matter in United State or in China. According to the research, they found cost saving by standardization as “think global, act local”.

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.