For over a half a century, McDonald’s has served the world some of its most appetizing foods consisting of their world’s famous fries, Chicken nuggets, burgers, and other products.
They’re known for their quality, reasonable prices, and consistency in which has made them so successful in the past. No matter where people are from or what social class, it’s guaranteed that they have eaten or at least heard of McDonald’s. Although they’re other fast food restaurants that have been successful in the past, none have managed to reach the caliber of McDonald’s.
McDonald’s has served to be a role model for other leading competitors. For the past half of a century McDonald’s has been the leading global fast food restaurant because of its impressive emergence when they first started, immense growth of profits and restaurants compared to other competitors, serving as a role model to other global food service, and its drive thru innovation.
The story of McDonald’s was started by a man named Ray Kroc and his great eye for discovering talent. One day as Ray Kroc was selling some of his multi-mixer blender for his job, he was called for a huge order for eight multi-mixer blenders (Love). It came from a restaurant located on Fourteenth and East street in San Bernardino, California during the year 1954 (Love).
There he found a small, but successful restaurant called, McDonald’s. The restaurant was owned by two brothers named Dick McDonald, and Mac McDonald (Love). Ray Kroc was stunned by the McDonald brothers restaurant because of how highly effective they were with only the limited menu that they had. Ray Kroc realized that this limited menu allowed them to focus more on the quality of their food, in which many other restaurants didn’t do. With K...
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...each and every day appreciate McDonald’s for what they stand for as they are given a job opportunity or are eating one of their sufficient meals. As a typical Chicago resident April Kohlhaas said about one of McDonald’s most famous burger The Big Mac, “ The flavors come together --- it’s like heaven in your mouth,” (Kramer).
Work Cited
Kramer, Andrew. "Russia Becomes a Magnet for U.S. Fast-Food Chains." New York Times 03
08 2011, n. pag. Print. a-magnet-for-american-fast-food-chains.html?_r=1&ref=mcdonaldscorporation>. K r o c , R a y. " G r i n d i n g i t O u t : T h e M a k i n g o f M c D o n a l d ’s . " © R a y A .
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L o v e , J o h n . "McDo n a l d s : Be h i n d t h e Go l d e n Ar c h e s . " ©J o h n F. L o v e ,
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Ray Kroc(Michael Keaton) who worked as a salesman selling spindle milkshake shakers for Prince Castle. Everywhere he goes to sell the product he doesn't succeed. He is always on the road and he goes to drive-in restaurants and he gets frustrated because he has bad experience with all the drive-in restaurants because they offer bad food and bad service. He travels to San Bernardino, California to meet the McDonald brothers Richard (Nick Offerman) and Maurice (John Carroll Lynch) - Dick and Mac who are the owners of McDonalds. The McDonald brothers introduced Ray Kroc into the concept of the drive-in restaurants where they focus on good quality food through a smaller menu like hamburgers, chips and cold drinks while serving it at a quick pace.
While peddling about the country he came in contact with the super efficient McDonald's hamburger joint, which was started by Dick and Mac McDonald, who were brothers. He saw this place and optimistically envisioned many more opening up all over the country. He convinced the brothers to let him be their first franchisee. They agreed so in 1954 Ray opened up the first McDonalds franchise. A year later, Ray opened up the second McDonalds franchise in Des Plaines, Illinois. Only four years after the second restaurant's opening the one hundredth McDonalds was opened. In 1961 Ray Kroc bought the rights to the McDonalds franchise for a meager 2.7 million dollars. To pay this massive sum at the time he had to mortgage his house and take out numerous loans that would eventually cost him 14 million to pay back. After he bought the rights to the name and the company he forced Dick and Mac to remove their name from their original restaurant. But he went even further when he opened up a McDonalds restaurant a block down the road trying to put them out of business. Also that same year Hamburger University was opened.
In many ways, McDonald’s is the model business empire. All-American food, speedy service and a perceived value for money all go some way to explaining why the giant corporation continues to pack in diners to its restaurants every day. Nothing seems to dent the popularity of the mighty Big Mac, even under the pressure of harsh criticism that golden arch still stands tall. Somethings however you just can 't ignore on many different accounts very disgusting things have been found inside of different items on the menu. “Katherine Ortega bought a large order of nuggets from a Newport News McDonald’s and took them home to feed her kids, only to shake a deep-fried chicken head out of the box and onto the plate. That’s not white meat, obviously.”(K
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
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).
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.
There are a number of threats I see with the McDonald’s Corporation. First and foremost, the food industry is an extremely competitive industry. They are not only competing against other fast food chains but they are also competing against fast casual restaurants and premade food market. Another threat to McDonald’s and the fast food industry is the fact that millennials are more health conscious and are eating less fast food, baby boomers are also choosing healthier
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.
McDonald's current customer environment is people on the go or people who don't want to spend a lot while going out and need something quick and good to eat. It is best stated in McDonald's mission statement that they want to be the world's best quick service restaurant experience. As stated before, McDonald's has restaurants in 121 countries and has extensive global experience in customer service and satisfaction. McDonald's is excellent at researching an international area before building restaurant there. For example, in India McDonald's realized that the majority of the population was Hindu and vegetarian, they therefore, did not even bother to put beef or any other red meat on the menu.
I have selected Mc Donald’s as an organization on which I would be making this report. I would be discussing Mc Donald’s competitive advantages over other organizations by applying a Resource based view of strategy. This report would highlight the resources and capabilities Mc Donald’s has and how can it utilize those resources to gain competitive advantage over its rivals.
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.
McDonalds also uses diversification in its global marketing. McDonalds recognizes that different countries have different values, customs, and tastes. Therefore, McDonalds satisfies these diverse global tastes by diversifying the menu according to each country’s unique preferences. This added diversification tactic, allows McDonalds to stay competitive in a global market. Examples of McDonalds globally diversified menu would be that McDonalds offers an exclusive beefless menu to its customers who live in India. This is because eating beef in India is sacrilegious. To meet the tastes of customers in India, McDonalds created new offerings such as the “Pizza McPuff” and the “McVeggie.” McDonalds considers the cultural tastes in every country it opens its doors
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.
McDonalds is one of the world’s largest fast food chains, feeding many people for low prices. What people don’t understand is what is actually