McDonald’s - Success through Development of a Rational System

McDonald’s - Success through Development of a Rational System

At first, most people must have laughed at the idea of a chain of restaurants selling identical products all over the country, but little did they know that the genius idea that they had mocked would go on to revolutionise the business environment of the future. McDonald’s is now the international market leader for fast food, and has been ever since its pioneering first restaurant was launched in San Bernardino, California in 1948.

Historical Background

The original founders of McDonald’s, and the fast-food concept, were brothers Dick and Mac McDonald. In 1948, they modified their drive-in restaurant, creating the standard for the contemporary fast-food restaurant of modern times. From the introduction of a limited menu of just nine items, and by focusing on efficient production and service, the brothers were able to halve the price of their hamburgers to 15 cents. Ray Kroc, who, at this time was a 52-year-old milkshake machine salesman, heard of the brothers’ generation of around $350,000 in annual revenues, and instantly became convinced that its concept could work in other cities. Kroc became the first franchisee appointed by the McDonald brothers, and opened his first restaurant the following year in Des Plaines, Illinois. In 1961, Kroc bought all the rights to the McDonald’s concept from the McDonald brothers for $2.7 million. Kroc was somewhat of an obsessive individual, fixated with rules, regulations, procedures, and obedience to his strict rules of discipline. Kroc was especially concerned with maintaining McDonald's clean image, as well as that of life in general, and could regularly be seen picking up litter outside of his restaurants in order t...

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...o follow. However, as stated earlier, rational systems tend to generate irrational consequences, and it is the impact on society as a whole that a business must consider before adopting a similar code of practice. I feel that if too many businesses follow this model, it wouldn’t make the world a better place, but simply a bigger breeding ground for exploitation, pollution, and concealment.

Bibliography

Shook, C. / Shook, R. (1993) – “Franchising: the business strategy that changed the world.” London. Prentice Hall.

Ritzer, G. (1996) – “The McDonaldisation of Society.” California: Pineforge Press.

Daniels, J. L. (1993) – “McDonaldisation revisited. Critical essays on consumer culture.” Westport: Praeger Publishers.

McDonald's Corporation (1996) – “Crew Handbook.” London.

Microsoft® Encarta® (1999). Microsoft Corporation.

www.mcspotlight.org