Intro
The McDonald's Corporation is the largest chain of fast food restaurants in the world. It is franchised in over 119 countries and serves an average of 68 million customers daily. The company started in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald in the United States. They reorganized their business as a hamburger stand in 1948. In 1955, Businessman Ray Kroc joined the company as a franchise agent. He purchased the chain from the McDonald brothers and oversaw its global-wide growth (McDonald’s 2014).
A franchisee, an affiliate, or the corporation operates a McDonald’s restaurant. Thus, McDonald's Corporation revenues come from the rent, royalties, and fees paid by the franchisees or sales in company-operated restaurants. According to Yahoo Finance report, McDonald's Corporation had annual revenues of $27.5 billion, and profits of $5.5 billion (McDonald’s 2014). McDonald’s primarily sells hamburgers, cheeseburgers, chicken snacks, french fries, breakfast items, soft drinks, milkshakes, and desserts. In response to changing consumer tastes, the company has expanded its menu to include salads, fish, wraps, smoothies, and fruit. Their food caters to all age groups, and they have a special menu known as “happy meal” that is targeting children.
McDonald’s SWOT Profile
I would be further discussing the McDonald’s SWOT profile to better understand the company’s situation. This would evaluate the company’s overall performance.
Strengths
McDonald’s has the largest fast food market share in the world. As mentioned, it serves 68 million customers every day in 119 countries, allowing it to be the second largest outlet operator with more than 34,000 outlets.
Brand recognition is valued at $40 million. In ...
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McDonalds are most heavily located in North America, East Asia and Europe due to the fact that these continents have better economies; therefore they can afford the popular food chain restaurant. On the other hand, Africa and Central Asia do not have nearly as many McDonalds because their economies are weaker than North America, East Asia and Europe. Russia, being the largest country in the world in terms of landmass, only has 94 McDonalds’ while Brazil, which is not nearly the size of Russia, has 584 McDonalds’.
Mcdonalds is one of the biggest and largest fast food chains in America, it can be viewed as a cultural icon. The principles of McDonalds as a business has a tremendous influence on every aspect of a culture. The business characterizes American Culture through the impacts on our society and economy.
The corporation I chose to discuss is McDonald’s. McDonald’s is a publicly traded corporation that includes the following domestic companies, McDonald’s, Chipotle Mexican Grill, and Boston Market. This paper will discuss the following:
With the help of 68 million customers around the world, McDonald’s has become a top ten company in the world with billions of dollars coming in. The story of McDonald’s started within the minds of Richard and Maurice McDonald in San Bernardino, California on May 15, 1940. The two brothers came up with the idea of the fast food chain with the observation from their father who was an owner of his own restaurant called “The Airdome.” Later, the brothers were given the idea to add the thought of a corporation with the help of Ray Kroc, seller of the milkshake machine that has been used at McDonald’s. Ray Kroc turned a locally branch fast food restaurant into what it is today. Today, McDonald’s is a company that is highly respected because of how
If you ever ask a person where the nearest McDonalds is at they’ll most likely show you the directions to at least four different locations in an instant. McDonalds is one of the largest and leading fast-food chains originating in the U.S., having at least 10,000 restaurants in America alone. McDonalds is such a huge part of America that if you ever go to a different country it wouldn’t be a surprise for at least one person to associate the fast-food chain with America. And McDonalds isn’t the only fast-food chain that originated in the U.S., there is also Burger King, Wendy’s, Taco Bell, Pizza Hut, and also KFC. All of these major restaurants are constantly being built in every state, every town, and every street
The first McDonald’s opened in 1948. The franchising operations soon became McDonald’s Corporation in 1955.
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).
OPPORTUNITIES: McDonalds has many opportunities to change its look, menu, and customer service. McDonald’s started building newer building incorporating the arch, along with more modern furnishings. The menu has changed by adding more breakfast items and introducing the McCafe in certain areas.
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.
Product is fairly similar to competitors – the McDonalds menu is quite similar to many of its competitors such as Burger King and Wendy’s. This forces McDonald 's to have to lower its prices in order to continue to be competitive.
In order to understand McDonald's structure and culture and why they continue to be the world's largest restaurant chain we conducted a SWOT analysis that allowed us to consider every dimension involved in the business level and corporate level strategies.
Mc Donald’s is world’s famous fast food restaurant chain consisting of 34000 local restaurants. It is present in 119 countries serving 47 million customers on daily basis. It is globally recognized by the Golden arches as its logo. In 1954, Mc Donald’s founder Raymond Kroc passed by a hamburger stand in San Bernardino, California and then he came up with an idea of forming a countrywide fast food chain.
The menu at McDonald's typically consists of hamburgers, chicken sandwiches, salads, drinks, shakes, and a recent influx of healthier alternatives. McDonald's also is widely known for their breakfast menu, which consists of sandwiches, pancakes, French toast, hash browns, and breakfast drinks. Since McDonald's appeals to such a wide audience, it must constantly re-evaluate its menu depending on feedback and market research. McDonald's expends considerable resources to update its menu and introduce new products in order to be more in tune with its target audience (The Times 100).
McDonalds uniform menu offerings can be mass produced; therefore helps to lower production costs. Additionally, the company bargaining power with its suppliers lowers its input costs and boost margins and even more importantly, McDonald 's offers a very large advertising budget which gives the company a significant competitive advantage over its competitors. Much of McDonald 's sales occur outside the United States and thus, with McDonald 's tapping extensively into global expansion therefore the company’s international operations will continue to strive and