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Mcdonald's organizational strategy
Fast food industry SWOT analysis
Swot analysis of mcdonalds corporation
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McDonalds (MCD) Founded in Illinois in 1955 April 15. Founded by Ray Kroc. The current CEO of McDonalds is Steve Easterbrook as of 2015. The past subsidiaries of McDonalds are Donatos Pizza (until 2003), Chipotle Mexican Grill (until 2006), Pret A Manger (Until 2008), Redbox (Until 2009), Aroma (1999-2002), Boston Market (2000-2007). The current subsidiaries of McDonalds are Krispy Kreme (2010+), Au Bon Pain (2010+), Bakers Oven (2010+), Londis (2011+), Millies Cookies (2011+), Café Giardino (2011+), Martin McColl (2012+), Threshers (2012+), Dairy Queen (2012+), and SPAR (2012+). The corporation of McDonalds competes in the industry of Fast Food Restaurants. The chief competitors of McDonalds are Burger King, Wendy’s, Taco Bell, KFC, and …show more content…
There is a huge list of products but I will provide a dumbed-up version. They provide beef burgers such as the Big Mac and McDouble, they provide chicken such as the McChicken and Snack Wrap, they provide fish such as the Filet-o-Fish, they provide pork such as the McRib, they provide beverages such as soda pop and coffee, and lastly they provide desserts such as ice cream and milkshakes. The corporation of McDonalds employs 420,000 people. Lastly, the company’s net worth is 96.06 billion …show more content…
The years increase from left to right. As shown in the diagram McDonalds in 2011 has a net income of 5.5 billion dollars, which is very high. In 2012 McDonalds’ net income decreased and went to 5.46 billion dollars. There was a huge leap from 2012 to 2013 because the new net income was now 5.59 billion dollars in 2013. The years of 2014 and 2015 were fairly bad because they decreased about a billion dollars from 2013. In 2014 the net income was 4.76 billion dollars. It then decreased to 4.53 billion dollars in 2015. During this 5 year span the corporation of McDonalds constantly had a profit of several billion dollars. Yes, the corporation of McDonalds does pay dividends. From the year of 2000 the corporation of McDonalds has paid 44 dividends. The current dividend is $0.94. The last dividend was paid on September 16,
Whole Foods Market, which is in the Grocery Store and Health Food Store industry, is one of America’s most prominent organic grocery store on the market. The supermarket chain has established a competitive advantage amongst other grocery stores, as it assures consumers that all foods are free of preservative, additive, and pesticides. The grocery store has gained such a profitable following, that it Amazon acquired it in August 2017, boosting Whole Foods Market’s digital and physical competitive advantage. In fact, most researchers have concluded that such an acquisition may eliminate any opportunity for other grocery store chains to compete against Whole Foods Market (Formichelli, 2017). Whole Foods Market’s key to success
McDonald’s was created by the McDonald’s brothers(hint the name), Maurice and Richard, who wanted, from the beginning, to start their own business. After four years of trying to run a movie theater, the brothers decided to start a drive-in restaurant. By 1940’s the brothers started earning $50,000 a year. Instead of being happy, the brothers grew bored. Together they came up with a new idea and remodeled their whole place into a fast food place. No more serving people in their cars, time to serve people fast and cheap. Revolutionizing the food industry
Wendy’s is one of the world’s third largest hamburger companies that is quick service. There are over 6,500 company and franchise restaurants worldwide. Wendy’s mission is to stand for honest food, higher quality, fresh wholesome food, prepared when you order it, prepared by Wendy’s kind of people, do it Dave’s Way, we don’t cut corners. This company believes in fresh and non-frozen products so the customers are satisfied and now they bought from an honest restaurant. The foundation believes in long term success that include there core values in every production. The core values are “Quality is our Recipe” “Do the Right Thing” and “Give Back”. Wendy’s focuses on the responsibility that the stakeholders are also the key to success.
Internal resource is the first consideration that can lead to sustainable competitive advantage and Resource –Based View (RBV) is a theory that usefully helps a firm focus on internal resources (Kraaijenbrink, Spender & Aard, 2010). According to RBV (Valuable, Rare, hard to imitate and non-substitutable), companies have different tangible and intangible resources, these resources can be transformed into unique ability, this special ability cannot flow between firms and rival firms and difficult to reproduce. These unique resources and abilities are the source of enterprise sustainable competitive advantage. In this part, Starbucks and Apple are worth to be analyzed by RBV.
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
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).
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)
McDonald's Corporation is the largest fast-food operator in the World and was originally formed in 1955 after Ray Kroc pitched the idea of opening up several restaurants based on the original owned by Dick and Mac McDonald. McDonald's went public in 1965 and introduced its flagship product, the Big Mac, in 1968. Today, McDonald's operates more than 30,000 restaurants in over 100 countries and have one of the world's most widely known brand names. McDonald's sales hit $57 billion company-wide and over $25 billion in the United States in 2006 (S&P).
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).
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 restaurant was founded by two brothers, Richard and Maurice (Dick and Mac) McDonald, in 1940. They initially opened the restaurant under the name McDonald’s Barbeque which was located in San Bernardino, California. The McDonald brothers had a vision of a drive-in restaurant that focused on quality food and good service. They served a simple menu consisting of 20-25, mainly barbeque, items. In 1948 after eight years of operations the McDonald 's brothers discovered that the majority of their revenue was coming from hamburgers. With this in mind, they decided to change the menu and set their focus mainly on hamburgers. They also changed the name of the restaurant to simply “McDonald’s” and adopted an assembly line approach in the production process. After continued
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.
“McDonald 's is the leading global foodservice retailer with more than 35,000 local restaurants serving nearly 70 million people in more than 100 countries each day” (About McDonald’s 2014).
McDonalds provide high quality products, such as burgers, fries, drinks, muffins, etc, which are safe and reliable that it does what it is supposed to do, but not only does the quality of the products matter, the good value for money affects the business. E.g. buy one extra value meal and get one free with a food voucher that represents the offer only. They ensure that a high standard of the product is carried out at all times and they try to compete very competitively with other fast food businesses with their good value for money. Also a customer would know if the product is good value for money by checking in another food outlet like KFC for their services and products.
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