...Global Success of McDonald's MBA/521 Jan-7th-2012 Abstract When people think about the franchising concept, McDonald's usually comes up first as a prime example. Although McDonald's was not the first franchise business Isaac Singer, the inventor of the sewing machine gets credit for originating the franchise idea-the hamburger chain certainly exemplifies franchising success. The first McDonald's restaurant was opened by brothers Dick and Mac McDonald in 1940 on Route 66 in San Bernadino, California. The menu had about 25 offerings, and carhops brought the food out to patrons waiting in their cars. Today, McDonald's franchise network is the world’s leading food service retailer with more than 30,000 franchise restaurants serving 52 million people in more than 100 countries. Of those stores, more than 70% are owned by independent operator franchisees (Franchise Direct, n.d). In the following pages a brief summary of how McDonald's has been able to successfully establish itself at National and International Level is presented. McDonald's Success Story McDonald's has over the years continued to stay on the growth curve by recursively innovating and adopting though they have had some setbacks along the way for example about eight yrs ago they reported their 1st loss in a quarter in the history of the company, though many saw this as the beginning of the end of the company, McDonald's looked at this...
Words: 1384 - Pages: 6
...EXECUTIVE SUMMARY McDonald’s is a quick service restaurant founded in 1955 by Ray Kroc. From its early days of serving burgers, McDonald’s has grown into a global household brand. McDonald’s now has restaurants in over 100 countries and has become the 9th most powerful global brand according to Interbrand. McDonald’s aims to be “customers’ favorite place and way to eat and drink.” However, as the fast food industry has progressed, McDonald’s has lost its identity as that favorite place and is no longer at the cutting edge of the industry. McDonald’s makes every effort to localize its offerings to the consumer segments it appeals to around the world, catering to local tastes and flavors. The company also tries to segment by income level and cater to consumers on varying budgets with its Dollar Menu, premium items, and extra value meals. McDonald’s does not differentiate itself in any one category of fast food, with competitors dominating in taste in other categories, but it does stand out for its variety and convenience. Due to the fact that McDonald’s does not provide the best fare in any given category, it has relied heavily on positive advertising and messaging that targets emotions. McDonald’s messaging focuses on building the brand and highlighting the emotion of happiness. This can be seen in commercials and the long-time slogan of “I’m Lovin’ It,” for example. In order to understand what the brand truly means to consumers, our group conducted a number...
Words: 7746 - Pages: 31
...Individual Innovation Paper McDonald’s Arch Deluxe EXECUTIVE SUMMARY Individual Innovation Paper: McDonald’s Arch Deluxe Analysis - Why It Failed INTRODUCTION McDonald’s has been in the hamburger business since the 1950’s and grown into a world-wide fast-food giant known for “Quality, Service, Cleanliness and Value”. As the McDonald’s empire grew so did their menu, it adapted to the tastes of their customers. In 1996 McDonald’s launched the Arch Deluxe; their answer to what adults want to eat. The public did not agree with McDonalds and the product was not successful. CAUSE OF PRODUCT FAILURE McDonalds advertising tried to show that the new Arch Deluxe was fancier than their other menu items and overemphasized the how adult it was. In the end the public did not agree and it ultimately failed. The Arch Deluxe did not make a rebound although over time they did add menu items with similar ingredients on the menu today. WHY DID IT NOT REBOUND? I believe the reason McDonald’s would not bring the Arch Deluxe back is because it is such a well-known financial failure for such a successful multi-national business. CONCLUSION The creation of the Arch Deluxe was not a big mistake in of itself, they wanted to create something adults would like to order and during research and design the testing groups liked the Arch Deluxe. The problem was with the way McDonald’s advertised and promoted the Arch Deluxe; they thought their idea was innovative and the advertising did not...
Words: 1537 - Pages: 7
...View of PESTEL Analysis for McDonald’s Chummar Pudussery (011869) Copy 2 Word Count: 2126 TABLE OF CONTENT EXECUTIVE SUMMARY .........………………………………………………………3 1.0 INTRODUCTION 1.1 The History of McDonalds ………………………...…………….……4 1.2 Industry Overview ………………………………………………….....4 1.3 The challenges…………………………………………………...….…5-6 2.0 PESTEL Analysis 2.1 Political ………………………………………………....………...…. 7 2.2 Economical ……………………………………………………….…...7 2.3 Social………………………………………………………….....…….8 2.4 Technological……………………………………………….……..…..8 2.5 Environmental……………………………………………..…….….…9 2.6 Law………………………………………………………..…….…..…9 3.0 Recommendations………………………………………………….…….…..10-11 4.0 Conclusion ……………………………………………………………...……12 5.0 Bibliography ……………………………………………………………..…..13-14 Executive Summary McDonald’s considered one of the pioneers in the fast food industry, is clearly got many aspects to discuss about which is related to functioning of their business. In this study, PESTEL Analysis was conducted to understand various factors surrounding the environment. The factors are namely Political, Economic, Social, Technology, Environmental and Law. This paper is organized as follows: In the first section, will give an introduction to the History of McDonald’s, Industry Overview and The challenges faced by the industry. In the second section, PESTEL Analysis is used to study some of the various factors that have been happening around McDonald’s. Here we get to see factors...
Words: 2854 - Pages: 12
...Introduction Mcdonald is the world famous fast food restaurant. The idea of mcdonald’s was introduced by two brothers Mac (Maurice) and Dick (Richard) Mcdonald in California.their father Patrick Mcdonald in 1937 was having a hot dog cottage called as Airdrome restaurant near the airport. I. Situation analysis Economic factors: Currency trade likewise have an extraordinary effect on any organization. USA has a High duty ratio, Low unemployment created country, dealing in international money (Dollars).Business for Mc donalds in USA is as of now settled and low gambled yet for India high unemployment rate, dealing in Rupees as coin and a huge number of individuals living beneath neediness line is a sympathy toward Mcdonalds. Culture: One can't envision a day when the road side 'vada pav', "chaat" slowdown in our urban communities will vanish. It's such an essential piece of who we are as Indians. Demographics: McDonalds has made its surroundings suitable for school/understudies to home base with their companions and snatch their lunch at McDonalds. Psychographics: McDonalds has adjusted by comfort and way of life of the Indian buyers, as India has an enormous vegan populace so McDonald's thought of an alternate and new product offering which incorporates things like Mc Veggie burger and Mc Aloo tikki Burger. Consumer Behavior: There is exploration required to figure out the dietary patterns of individuals in an aggressive setting. . It is giving play territories...
Words: 787 - Pages: 4
...Term Paper Background info: McDonald’s is one of the world’s largest hamburger fast food restaurants, serving about 68 million customers daily across 35,000 outlets worldwide. The company began in 1940 by brothers Richard and Maurice McDonald. Within a few years of beginning their soon to be worldly renowned fast food chain, the brothers were joined by Ray Kroc as a franchise agent in 1955 and oversaw its worldwide growth. Now McDonalds is well known throughout the world with their famous “M” logo, or “Golden Arches”. In 2012, McDonald's Corporation had annual revenues of $27.5 billion, and profits of $5.5 billion. In 2013, the corporation had annual revenues of $28.1 billion and more profits compared to the year before. As we can see, their revenue and profits increase by the year and they become more known around the world. McDonald’s competitors consist of Burger King, In-N-Out Burger, and 5 Guys. Although McDonald’s is very well known worldwide, makes billions of dollars, and makes it hard for their competitors, their customer satisfaction isn’t complementary to their success. Secondary Data: Customer satisfaction is very important in order for businesses to succeed. In the past year, McDonald’s has lacked the ability to provide efficient and successful service. According to vice president of business research for McDonald’s USA, Steve Levigne, “…service is broken.” (Jargon). Mr. Levigne is trying to imply that if McDonald’s is trying to maximize their potential...
Words: 916 - Pages: 4
...Marketing food: I'm loving McD's Tom Roach Admap: November 2012 MORE ARTICLES ABOUT Brand and product choice Brand strategy Brand and product choice Brand strategy Show all Fast food, takeaway outlets Summary This article looks at McDonald's recovery from a period of falling sales, with lessons for the rest of the fast-food sector. The Quick Service Restaurants sector has been steadily growing over the past few years, boosted by the smaller sub-sector of 'fast casual dining', while non-branded, independent restaurants are suffering. Reasons for this shift are that consumers need to trust the food offered, that they love brands and are looking for family appeal. McDonald's communications has been built on four marketing pillars: value, variety, favourites and trust, leading the way back to strong growth. Restaurants and takeaways Food, diet and obesity Marketing food: I'm loving McD's Tom Roach Leo Burnett If you enjoy this article from Admap, find out more about subscribing to Admap and Warc. This article may be shared or reproduced online, provided the contents are not altered and the source is acknowledged as: Reproduced from Admap with permission. © Copyright Warc. www.warc.com/admap Six years ago, the McDonald's brand was severely damaged by media castigation of the products' nutritional values and impact on public health. Sales were falling, and even once loyal customers had fallen out of love with the brand. This is the story of the brand's recovery...
Words: 3170 - Pages: 13
...[pic] ASSIGNMENT COVER SHEET (INDIVIDUAL OR GROUP) Please complete and attach this form to your assignment. All assignments must be submitted to lecturer on the stipulated submission date. |Name || | |Unit Code |BUS235 |Unit Name |Market Research & Analysis | |Class Code |PT-BUS35G | |Local Lecturer’s name |Ms Mona | |Assignment No. (i.e. 1,2,3) or ‘short answer’ |Assignment 3: Research Report – | | |Final Research Report | Your assignment should meet the following requirements. Please confirm this by ticking ( the boxes before submitting your assignment √ My assignment is double-spaced and clearly legible √ My assignment is written on one side of page only √ I have provided a wide margin (4 cm) on left-hand side of page √ The first page of my assignment is clearly labelled with my name, unit no, unit name and tutor’s name. √ I have retained a copy of my assignment ...
Words: 5134 - Pages: 21
...------------------------------------------------- MCDONALD’S RESEARCH * ------------------------------------------------- * ------------------------------------------------- Identify the key characteristics of the products and/or services and their significance to the market. The McDonald's Corporation (NYSE: MCD) is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries.[4][5] Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth. A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27 percent over the three years ending in 2007 to $22.8 billion, and 9 percent growth in operating income to $3.9 billion. McDonald's primarily sells hamburgers, cheeseburgers, chicken, 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. Mission Statement “McDonald’s vision...
Words: 2986 - Pages: 12
...Marketing Research Paper August 27, 2014 McDonald's Corporation The very first McDonald's was opened up in 1940. The name of the first McDonald’s, which was located in San Bernardino, CA, was McDonald's Bar-B-Que (Farfan). It was a typical 1940’s drive-in with roller-skating car hops (Mcdonalds.com). Richard "Dick" McDonald and Maurice "Mac" McDonald were the original owners (wm2@doney.net). The menu included 25 items, but simplified it to hamburgers and potato chips in 1948. Their McDonald’s was shut for three months, and in December, 1948 they reopened it as a drive-through restaurant (Mcdonalds.com). In 1949, milkshakes were added to the menu, and French fries replaced the potato chips (Farfan). In 1953, Stanley Meston designed the Golden Arches (Mcdonalds.com). Ray Kroc learned about the first McDonald's in 1954 when he tried to get them to buy a milkshake machine. He became a franchise manager in 1955. He also helped McDonald's open a franchise restaurant for the first time in Des Plaines, Illinois (Farfan). Ray Kroc purchased the interests and right of the McDonald’s name for the price of $2.7 million in 1965 (About McDonalds). McDonald’s has their own school to train employees called Hamburger University (H.U.). The Hamburger University was opened in 1961, located in the Elk Grove Village’s basement in Illinois (Mcdonalds.com). When employees graduate from Hamburger University they receive a Bachelor of Hamburgerology degree (About McDonalds). Their training statement:...
Words: 1853 - Pages: 8
...Food Inc and Supersize me. With all of the news stories and articles and social media that surround consumers now a days there is no secret that there is a correlation between eating Trans fats and gaining weight. The Canadian Restaurant and Food Services Association has asked us to find out whether or not people are really responding to all of this media coverage and if people are still going to fast food restaurants as a daily routine. Research Objectives The purpose of this study is to examine and explore if consumers (even with all of this information about Trans fats and being health conscious) still attend fast food restaurants regularly in Canada in comparison to 10 years ago. Research Method In order to study the correlation of buying patterns of customers over the past ten years and compare them to today’s buying patterns I will be gathering information about three very competitive fast food brands in Canada, McDonalds, Burger King and Tim Horton’s. My research will include going to each individual website, and to research financial numbers that are released about the popular fast food restaurants. I will be looking at overall number of customers over the past 10 years and see if customers are on the decline because of the information that is available to them. I will focus mostly on a market of people who are between the ages of 18 to 55. This is because these are the people who work every day and are busy. I estimate that...
Words: 2286 - Pages: 10
...................................................3 Business Objectives ................................................................................3 S.W.O.T analysis in Vietnam’s Market .......................................................4 Advantages & disadvantages McDonald’s franchise ....................................5 Investment Decision ...................................................................................6 Summary ...................................................................................................7 Reference ..................................................................................................7 I. Background McDonald's is a huge multi-national restaurant chain. There are restaurants all over the world that are willing to sell you a Big Mac and fries. Indeed, you would probably be hard-pushed to find a country that does not contain a few McDonald's restaurants somewhere within its borders. The company is now so big that you could be forgiven for thinking that it has always existed. But it hasn't. It was started in the first half of the 20th Century by two brothers - neither of whom was named Ronald. 1. History 1940: The first McDonald's was built in 1940 by the McDonald...
Words: 1554 - Pages: 7
...MarketLine Case Study McDonald’s Corporation Case Study Remaining relevant in a health conscious society Reference Code: ML00001-040 Publication Date: January 2012 WWW.MARKETLINEINFO.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED MCDONALD’S CORPORATION CASE STUDY © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED ML00001-040/Published 01/2012 Page | 1 OVERVIEW Catalyst McDonald's Corporation is one of the world's largest foodservice retailing chains. The company is primarily known for its burgers and fries, which it sells through more than 32,000 restaurants in 117 countries. In 2010, the company served an average of 64 million customers per day. It primarily operates in Europe, Asia Pacific, and the Americas. The company is headquartered in Oak Brook, Illinois and employs about 400,000 people. McDonald’s has been able to successfully increase revenues and profits in recent years in spite of much negative publicity and an increasingly health conscious public. This case study shows how the company has achieved these goals in a difficult trading environment. Summary McDonald’s has, to a great extent, defied recent difficult economic conditions and continued to experience strong sales and profit growth in recent years, as it has been able to attract diners with an improved and expanded product range while remaining competitive on price. McDonald’s has been the target of much criticism in recent...
Words: 5429 - Pages: 22
...smoking and getting addicted to cigarettes (Adage.com, 2016). McDonalds should used Ron’s image in a different way, promoting healthy food and activity, less focus on the food even and focus on charitable work. Ronald is among top 25 mascots of all times. (DailyFinance.com, 2016) Ronald McDonalds should make visits to schools to educate students about the importance of eating healthy and staying active. Even addressing moderation of unhealthy foods and portions control. This will help to improve Ronald image in a positive way as the mascot. 2) Discuss the merits of the law proposed by France that would require fast-food companies either to add a health message to commercials or to pay 1.5 % tax on their ad budget. Propose a strategy for McDonald's to pay the tax or add health message and defend your recommendation. The French law will force food marketers to choose between adding a health message to commercials and paying a 1.5 percent tax on their ad budgets to fund healthy-eating messages. (Adage.com, 2016) Other bans may also be placed on using celebrities and cartoon characters from food ads to entice children and preventing food marketers from using jingles aimed at children. I believe this is a smart strategy; it gives the food marketers the freedom to choose between paying or advertising about healthy foods. I think that most of them would choose to add a health conscious message rather than cut in their profits. In my option...
Words: 1069 - Pages: 5
...restaurants serve processed food with an excess in calories, sodium, and fat at low prices. Many people turn to fast food for a quick, easy meal rather than preparing a home-cooked meal themselves. Additionally, fast food restaurants frequently marketing towards children, which has been linked to contributing to childhood obesity. Though public awareness of the effects of these unhealthy eateries has increased, they continue to be a leading contributor to the rise in obesity. The McDonald’s corporation is headquartered in the U.S. and is recognized as a symbol of American Culture, as well as a contributor to the globalization of Western influence. According to William Gould, “McDonald’s was the first company to try to export America’s love of fast food and changes in eating habits of other nations.” Headquartered in Belgium, Quick has made significant leaps and bounds to improve the food content within its chain in order to reduce its impact on the global obesity epidemic. In France, “McDonald's has 1,200 branches [whereas the] home-grown European rival Quick has around 400." This huge influence on the local fast food landscape has contributed to studies, “showing obesity has doubled in 15 years” in the country of France. With over 34,000 restaurants in 100...
Words: 1681 - Pages: 7
