1. Introduction
The first McDonald's was built in 1940 by the McDonald brothers (Dick and Mac). McDonald’s is a large corporation in the fast food industry. It has been around since 1955 when Ray Kroc started the chain of McDonalds. It consists of over 3200 restaurants in over 119 countries. McDonald's start global expansion in 1971 they opened in different parts of Asia and European nations. McDonalds has many competitors like Burger King, Wendy’s, Hardees and many others. It is one of the popular companies of fast food industry over the world. One of fast and quick service restaurant in the world. They have many kinds of fast food meals that customer prefers with cheap prices. In addition, McDonalds innovate its products according to the
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McDonalds provides an easy way to place orders online within the McDelivery website https://www.mcdelivery.ae/ae/. McDelivery work in 4 simple steps. First, setup customer address, then choose your food, checkout, and finally deliver to the customer’s address. The feature of this service is to give customers the time to place the order. In addition, Drive Thru, is a type of service provided by a McDonalds that allows customers to buy or order food without leaving their cars. Moreover, McDonald’s provides Free Wi-Fi in all branches to attract customer to buy food.
2. SWOT Analysis
2.1 Strength
a. Largest fast food market share
McDonald’s serves more than 70 million people around the world in more than 120 countries. “You will see McDonald’s, everywhere you go”. You can see McDonald’s in airports, malls, cities, highways and parks.
b. Strong Global Brand
McDonald’s is currently the 6th most important brand in the world. Most people in the United Arab Emirates, and much of the world, instantly recognize the McDonald’s “Golden Arches" or “M” letter.
c. Different menu
McDonald’s always cares about the cultural diversity in the foods it offers based on the location of the restaurant. The menu in a particular region such as US is a little different from other regions. It is adapted to the cultural differences regarding the region. The Muslim consumers need “Halal food”, so McDonald’s provides
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Demographics
McDonald's provides all ages appropriate meals. It also has different adult meals that are made with several sizes, such as small, medium and large. Children can have happy meals to suit their age. All meal prices are not high, but suitable for all categories. For families, a new offer was recently added, “Family Box”, and consists of several meals, drinks and at an affordable price so that families can buy it.
B. Geographic
The geographic segment of McDonald's relies on existing customers, and the desires of customers in terms of food. In Arab countries, for example, the company provides “Halal food”. Moreover, McDonald's open branches in the most popular areas to meet the demands of customers, like malls, markets, and also in the petrol stations. In addition, McDonald's adds new meals at different times in a year as a limited promotion for “new burgers seekers” and to diversify the menu according to the desires of customers. As can be seen, mostly males are the customers of McDonald's because most of their time is outside their houses and they need a quick meal at a cheap
McDonald’s Corporation has held a prominent position in the fast-food market for much of its existence. A person would be hard pressed to find consumers who would not readily recognize the famous golden arches, as the company has expanded its market globally. However, as global consumer tastes shift to a more heath-conscious public which cares less about “super sizing” and more about “slenderizing” the popular burger chain has been experiencing a drop in sales. McDonald’s strategy for its globalization plan has included the concept of localizing their product (to a degree) for an international market; for example, local managers in British versions of the restaurant are able to make their own decisions that pertain to adapting to the current market. A difficult challenge for the corporation’s marketing team is how to reposition this wildly successful brand in a stagnant British market.
From just one restaurant in San Bernadino, California, run by two brothers, McDonald’s has grown to become the best known and most popular fast food restaurant chain in the world.
As a company, McDonald’s was first introduced in Des Plaines, Illinois in 1955. This was the very first McDonald’s restaurant, which all started in San Bernardino, California in 1954 when Ray Kroc approached the McDonald brothers with a business proposition to start a new company. In 1965 McDonald’s went public and was later, in 1985 added to the Dow Jones Industrial Average. (www.mcdonalds.com) The company has gone through quite a few changes with its changing CEO’s over the years, but the company seems to be on track with CEO Jim Skinner, named in 2004. Skinner was named the new CEO just in time to clean up after McDonald’s first ever quarterly loss. He succeeded by showing that McDonald’s revenue had climbed 11% during 2006 and net profits had climbed 36%. (Dess, Case 40 Pg. 1)
A world without the Big Mac, Happy Meals, Chicken McNuggets, and the phrase “I’m lovin’ it,” is almost inconceivable. People around the globe have become accustomed to the high gleaming golden arches that make up the famous emblem for McDonald’s. McDonald’s has grasped the concept that culture flows from power. In this case, the American culture flows through the veins of this fast-food giant and the more that is supplied, the greater the demand. It is no secret that McDonald’s has become one of the world’s largest fast-food retailers. It has become a well known icon that has played a huge part in globalization, with chains located in many different countries… transforming the meaning of fast-food all around the world.
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).
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 is one of the world’s leading fast food franchisee. They mainly concentrate on burgers with occasional additions with to suit the host country. They have designed meals targeted at adults to toddlers so as to reach wider range of audien...
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.
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.
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.
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.
Mobile ordering/paying – with improvements to technology, McDonalds could introduce an app that would allow consumers to order through their smartphones, pick it up and possibly even pay through their phones, making everything a much more smooth process.
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
Brand experts recommend McDonald's to localize its menu. Generally, McDonald's strategy to create dishes that cater to local tastes ' Asia ' is a powerful uses. McDonald's Big Mac sandwich on its menu in Vietnam, cheeseburgers and fries are included.