McDonald’s--The Best
Restaurant in Innovation and
Quality of Service

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Findings/Research
—Introduction/General
McDonald’s is one of the most famous restaurants on Earth. McDonald’s operates, develops, franchises, and services a system of fast-food restaurants around the world
(Fortune Homepage, April 25, 1999). Those restaurants prepare, assemble, package, and sell low-priced foods (Fortune Homepage, April 25, 1999). McDonald’s is the largest chain of restaurants with 24,500 of t hem in 114 countries (Boldt, 1999). McDonald’s has the most recognized brand name in the world, beating Coca-Cola, according to a survey by Interbrand
(Murphy, 1999). Its advertising spokesman, Ronald McDonald’s, is a more recognizable figure than Santa Claus in the United States (Love, 1995). McDonald’s headquarters is located in Oak Brook, Illinois (Fortune, April 26, 1999).
The first McDonald’s opened in 1940 in San Bernardino, California, by Dick and
Mac McDonald (Murphy, 1999). Businessman Ray Kroc bought the rights to the franchise from them for ten years in 1955 and started McDonald’s Corporation (Murphy, 1999). He opened his first store in Des Plaines, Illinois in April of that year (Emerson, 1979). Harry
Sonneborn, former vice president of Tastee-Freeze, became president of McDonald’s in 1959
(Love, 1995). Sonneborn led McDonald into the real estate business in the late 1950’s and early 1960’s by renting or buying property and leasing it to the franchisees in exchange for a percentage of their sales (Emerson, 1979).
At the end of 1960, there were 225 franchised units of McDonald’s. In 1961, Kroc bought out the total rights from the McDonald’s brothers for $2.7 million. In October 1963,

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the chain had its first nation advertisement —in Reader’s Digest. McDonald’s started selling its stock on April 20, 1965 at $22.50 per share. The following year the company introduced
Ronald McDonald as its national symbol for its advertising. Fred Turner, who was the director of operations for the chain, replaced Sonneborn for president in 1968. By that time
1,087 units had been opened including 12 in Canada and four in Puerto Rico. (Emerson,
1979, Love, 1995)
McDonald’s saw more growth in 1970’s. In 1971, 14 units were opened in Japan and a couple in The Netherlands. In that year, it also started testing its breakfast program which in six years after accounted for 14% of its domestic sales. McDonald’s stock rose to an alltime high of $77 per share in 1973. By the mid-1970’s, McDonald’s had become one of the most powerful television advertiser with its marketing department producing 160 new television commercials at a yearly cost of $35 million. Also, during those years McDonald’s brought major changes to the food service and processing industry in the United States by developing new food processing methods and better food distribution and packaging systems.
(Love, 1995)
In January of 1984, Ray Kroc died at 81 due to complications from two strokes (Love
1995). In 1985, McDonald’s was added to the 30-company Dow Jones Industrial Average
(McDonald’s Homepage, April 26, 1999). From 1986 through 1994, systemwide sales increased about 110 percent from $12.4 billion to $25.9 billion and net income increased 50 percent from $430 million to $1.2 billion (Love, 1995). In March of 1987 Michael Quinlan became CEO of McDonald’s and then later took the top spot for leadership over Fred Turner on March 31, 1990 (Love, 1995). In the late 1980’s McDonald’s began to feel some troubles as Quinlan said, “Frankly, our value perceptions had gotten out of sync in the late 1980s, and

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we probably were a little too arrogant to think that there was anything wrong with our system” (Love, 1995, p. 452). The company saw rising costs, lower sales, and shrunken profits (Love, 1995).
In 1990, McDonald’s started phasing out the use of foam packaging in the United
States. One reason they did this was because management thought the foam packaging hurt sales because of environmental concerns from the public. In August of the same year,
McDonald’s launched a partnership with the Environmental Defense Fund which would help the company reduce and recycle its solid wastes. In 1991, the company created several pricing strategies to boost sales such as the Extra Value Meals. It also started using its
Customer Care Culture plan in all its restaurants that let customers specialize their orders. In
1992, Jack Greenberg, who worked at McDonald’s accounting firm for ten years, joined the senior management group as vice chairman. In the summer o f 1994, the company used the new McDonald’s Communications network video satellite technology to gain approval for national advertising campaigns. McDonald’s has shown its good social responsibility by having a partnership with the Red Cross to assist victims and supplying food and other resources to disaster victims (Love, 1995).
McDonald’s, during the late 1990’s, still has not been able to come up with any “hit” food products—not since the Chicken McNuggets in 1983 (Raffio, 1998). McDonald’s menu was even ranked among the worst tasting for a restaurant chain in 1997 (Leonhardt,
1999). Franchise owners were not earning as much and McDonald’s stock has not grown anywhere as fast as Dow’s 40% gain in 1996 through 1997 (Raffio, 1998). In July of 1997, its U.S. restaurants chief Ed Rensi was replaced by five regional presidents (Raffio, 1998).
McDonald’s “new” management implemented a new marketing strategy—“Did somebody

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say McDonald’s?” brand advertising—in October of 1998 and a new computer-based production system which sandwiches where assembled until the customer ordered them
(Raffio, 1998). This “just-in-time” system was “the most significant operating cost improvement we’ve had in five or six years,” said Claire Babrowski, McDonald’s senior vice president of restaurant systems (Raffio, 1998, p. 32). More changes include minor remodeling of the restaurants, changing or upgrading their food items, and lower pricing of some of their foods (Raffio, 1998). In April of 1998, Jack Greenburg became CEO of the company and started more changes such as cutting 23% of the headquarters staff—which was the company’s first layoffs (Leonhardt, 1999). Continuing in 1999, more changes are being made in the company that are quite successful such as new food products like the
McFlurry Sundae, slowing the adding of more domestic franchises, and the retrofitting of every restaurant (Leonhardt, 1999). The retrofit, dubbed “Made for You,” will use computers for managing orders to make their food hotter and freshly made ( Leonhardt,
1999). McDonald’s announced in May of 1999 that it would buy Donatos Pizza Inc., which is a privately owned chain of 143 pizza restaurants based in Columbus, Ohio (Fortune
Homepage, May 15, 1999).
McDonald’s is still doing economically well despite its recent troubles. McDonald’s ended 1998 with its highest market share ever, estimated at more that 42.2 percent of the hamburger market (Cebrzynski, 1999). It’s stock rose from $47.75 to $76.75 in 1998 and part of it is attributed to their good marketing campaigns (Cebrzynski, 1999). McDonald’s current stock value price is $40.375 with a volume of 3,272,700 shares and is traded on the
New York Stock Exchange with the symbol MCD. Its price-earnings ratio is 35.7 and the stock had a 5-year growth of 8.0 percent (Fortune Homepage, May 16, 1999). McDonald’s

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reported its first-quarter profits rose 11 percent from last year’s because of strong sales, an increase in franchise openings, and lower operating costs (Fortune Homepage, McDonald’s
Profits Jump 11 Percent). McDonald’s is ranked number 134 on the 1999 Fortune 500 list and had revenues of $12,421,000,000 in 1998 (Fortune Homepage, 1999 Fortune 5
Hundred). McDonald’s was ranked number one in its industry—food services—on Fortune’s
America’s Most Admired companies list (Fortune Homepage, Fortune’s America’s Most
Admired Companies). In 1998, McDonald’s had a profit of $1,550,000,000 and is ranked number 49 in profitability (Fortune, April 26, 1999). McDonald’s market value as of March
15, 1999 is $59,924,700,000 and it ranks 46 in this category (Fortune, April 26, 1999). One more statistic is that McDonald'’ is the eighth largest employer in the United States with
284,000 employees (Fortune, April 26, 1999). McDonald’s will still probably be the most famous fast-food restaurant for decades to come.

Selected Attribute Number 1—Innovativeness
—Research on Innovativeness about McDonald’s

One of the ways McDonald’s has avoided going into decline is through the development of new, innovative ideas, and products. According to the magazine Fortune's
America’s Most Admired Companies, McDonald’s Corporation was ranked 318 out of 500 in innovativeness, with a score 5.68 (Fortune Homepage, April 23, 1999). Kroc was a remarkable innovator, “He was always looking for new things that would increase the business,” says Herb Peterson, the McDonald’s operator (Branch, 1999, p. 133). Throughout the years, McDonald’s came up with numerous innovative ideas and products, which

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includes reconstruction, innovat ion on menu, adaptation of local tastes around the world, the introduction of Happy Meal Program, and so on (Branch, 1999).
McDonald’s continuous innovation on remodeling has played an important role in bringing up its sales and profitability. Today, the store design is different from it was in the
1960s. In 1968, McDonald’s evolved from stands with no seating into fast -food restaurants with attractive indoor seating areas (Kotler, et al., 1996). Then, McDonald’s began adopting the innovation of offering sales via a drive-through window for its own units. Finally, the most recent development is the “soft playground,” in which “the child is free to jump, crawl, and play ball in an enclosed, safe areas that is…childproof” (Emerson, 1990, p. 97).
In order to stimulate sagging sales, McDonald’s has introduced a number of new menu items. McDonald’s added breakfast, salads, desserts, and chicken sandwiches in its effort to attract new users and increase use (Kotler, et al., 1996). In 1963, the Filet -O-Fish was created by a franchisee after he realized that Catholics abstain from red meat on Fridays
(Love, 1968). In 1968, the Big Mac sandwich was introduced, which sales accounted for
19% of all McDonald’s sales by the very next year (Love, 1986). In 1982, the introduction of Chicken McNuggets led McDonald’s become the second largest purveyor of chicken
(Love, 1986). McDonald’s has found modest success with new products, including a bagel breakfast sandwich and the McFlurry sundae, and with regional discounts. Those were big reasons why “average stores climbed last year and overall company revenues rose 9%, to
$12.4 billion” (Leonhardt, 1999). The most tangible innovation of late is the new Made for
You kitchen system, which makes McDonald’s easier to “run the stores in a consistent, quality way and to make better food” (Greenberg, 1998, p.40). “The whole idea of mass

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customization is continuing to develop,” says Greenberg. “But the biggest benefit is that
Made for You gives us a platform for good innovation” (Brooks, 1999, p.30).
McDonald’s, which has restaurants in more than 100 countries, adapts its menu to local tastes around the world (Zikmund, 1999). Therefore, menus have become flexible abroad. In Tokyo, McDonald’s offers Teriyaki McBurgers (sausage patties with teriyaki sauce) and Chicken Tatsuta (chicken breast in a tempura batter on a bed of sprouts with soy sauce and ginger) (Zikmund, 1999). A McDonald’s restaurant located in New Delhi, India, is the only one in the world with no beef on the menu, because some 80% of Indians are
Hindu, a religion whose adherents do not eat beef. Therefore, instead of the Big Mac, the
Indian menu features the Maharaja Mac—“a all-mutton patties, special sauce, lettuce, cheese, pickles, onions on a sesame-seed bun” (Zikmund, 1999, p. 107). Its Vienna franchises also contain “McCafes,” which offer coffee blended for local tastes (Barboza, 1999). As a result,
“the combination of a globally recognized brand with a flexible menu that caters to local palates has helped McDonald’s navigate the global economic turbulence that has knocked most of the other big corporations operating around the world way off course” (Barboza,
1999).
McDonald’s Happy Meal program, which the kids love the most, is one of the significant innovations. When McDonald’s and Disney come together, they are able to provide the children with not only their favorite food, but also their favorite Disney characters in a unique, fun way. “Offering our customers the most popular toys—like
Furby—is a hallmark of our Happy Meal program and part of the special ‘only at
McDonald’s’ experience that keeps our customers coming back,” said R.J. Milano,
McDonald’s vice president, U.S. marketing (McDonald’s Homepage, April 23, 1999).

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Disney tie-ins, Monopoly promotions, and Teenie Beanie Babies drove traffic throughout
1998 and can be expected to do so again in 1999 (Hamstra, 1999).
Other successful innovations developed by McDonald’s include franchising and the
“talking” annual report on videotape. McDonald’s has always been a franchising company and has relied on its franchisees to play a major role in its success. Moreover, McDonald’s is recognized as a fast-food restaurant around the world! A “talking” annual report on videotape complete with commercials was initiated by McDonald’s. This unusual and creative approach to presenting the required annual report proved to be an excellent means for reaching stockholders and employees. When introduced, it also produced a wealth of free publicity in major news media (Kotler, et al., 1996).
Innovation has always played an essential role in McDonald’s long-term success in this competitive world. Reconstruction, innovation on menu, adaptation of local tastes around the world and the introduction of Happy Meal Program are only a few of McDonald’s numerous new, innovative ideas and products. The recent ideas, including the Made for You kitchen system and the Monopoly Game, are indeed attractive and innovative. No wonder,
McDonald’s is ranked one of the Top 500 America’s Most Admired Companies in innovativeness (Fortune Homepage, April 23, 1999).

—General Research on Innovativeness

What is innovation? How can innovation relate to business? Why is innovation important for business? How does a company obtain successful innovativeness? These are some questions a company must seriously consider if they want to succeed.

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Innovation is a vast subject that means many things. To many people, the term innovation simply means something new. To others it seems to involve something more complex that is somehow mixed with research and invention. Innovation does have some of each of these characteristics but it goes far deeper, it includes “a new idea, theory, machine, tool, social arrangement, and behavior pattern” (Mueller, 1971, p.3). The word innovate is defined as “the act of introducing something new to make a change, especially in customs, manners, and rites” (Mueller, 1971, p.4). Innovation is the use of the idea, which make up the total process by which new ideas are conceived, nurtured, developed, and finally introduced. Moreover, it can be introduced into the economy as new products and processes, into an organization to change its internal and external relationships, or into a society to provide for its social needs and to adapt it to the world (Mueller, 1971).
Today, more than ever before, a strong market position must be based on an organization’s innovativeness (Humphrey, 1987). Most companies now recognize that “the key to their future survival and growth rests in a continuous flow of new and improved products” (Rothberg, 1981, p.1). For business, there are two categories of innovation that are closely related, and they are technological innovation and administrative innovation. First of all, technological innovation involves the development of planned, purposeful, and profitable change in a wide range of technically oriented area such as products, services, or processes.
Second, administrative innovation deals with changes in the methods of operating a business that make more effective use of its resources: technical, human, and financial. These may include changes in organization structure, policies, work methods, and any procedure for making, financing or marketing a product or service. As a result, by using a successful

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innovation in product or service, and/or a successful innovation in the various skills and activities, it gives every business a stronger position in the market (Miller, 1970).
There are, of course, innovations that come from a flash of genius. Most innovations, however, especially the successful ones, result form a conscious, purposeful search for innovation opportunities. Furthermore, there are seven sources of innovative opportunity exist within or outside a company or industry. (Drucker, 1985)
Four sources of opportunity involve changes within a company or industry and they are highly reliable indicators of changes that have already happened or can be made to happen with little effort:


Unexpected occurrences – the unexpected success; the unexpected failure, the unexpected outside event;



Incongruities – between reality as it actually is and reality as it is assumed to be or as it “ought to be”;



Innovation based on process needs;



Industry and market changes– changes that catch everyone unawares (Drucker,
1985).

Three additional sources of opportunity involve changes outside a company or industry in its social and intellectual environment:


Demographic changes – population changes;



Changes in perception, mood, and meaning;



New Knowledge – whether scientific, technical, or social

(Drucker, 1985).

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Year to year, the market is being more and more competitive. Therefore, a company must make some changes to attract more customers such as new ideas, new products, and new promotion programs. In this way, innovativeness becomes one of the most important attributes that can strongly influence a company or industry in its market. The success of technological innovation or administrative innovation is result from the seven sources of innovative opportunity: the unexpected, the incongruity, process need, industry and market changes, demographics, changes in perception and new knowledge, and it could lead a business to a better marketing position in the future.

—Discussion/Comparison on Innovativeness

Throughout the years, McDonald’s has contributed continuous innovation to the fast food market of today. With technology constantly changing McDonald’s is changing along with it. The first category of innovation involves technolog y and the technically oriented areas. The second innovation category being administration and method of operation. How innovation comes about in a company is also a key role in McDonald’s corporation.
Technological innovation that includes the changing of products, services, or processes is a prominent part of McDonald’s. In past years McDonald’s has continuously introduced new menu items. From the Big Mac to the Filet O’ Fish McDonald’s still manages to keep the customers coming back. Although some o f the newer, more recent
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products are not as popular as McDonald’s traditional menu items, they continue to plan, develop, and create a wide range of culinary delights. Overall, the service is good though it is quite different from the single restaurant o wned by the McDonald’s brothers to the current
23,000 restaurants in operation.
The administrative innovation that has been a success is the franchising and “talking” annual report on video. This new “talking” annual report was developed by McDonald’s and is very successful with the stockholders. Much of the method of operation has changed from the single McDonald’s to the now worldwide McDonald’s in 114 different countries.
With each restaurant individually owned and operated most of the innovation came from the board members, though some franchisees contributed ideas such as the Filet O’
Fish. With the new Made For You kitchen systems it has enabled McDonald’s processes to become more consistent and to prepare better quality food. This new kitchen system is also paving the way for “good innovation.”
McDonald’s has contributed greatly to the innovation of today’s fast food chains.
Technology and technically oriented areas of McDonald’s has opened up a newer and better market. The administrative and method of operation with the stockholder’s receiving the
“talking” annual report changed involvement into a corporation for stockholders. With new ideas constantly created by McDonald’s, it enables consumers to benefit from the company’s innovative products.

—Selected Attribute Number 2—Quality of Products and
Services
—Research on Quality of Products and Services about
McDonald’s

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McDonald’s is known to be the most successful fast food restaurants in the world
(Kotler, et al., 1996). Ray Kroc, the owner of the McDonald’s Corporation, “managed to develop a restaurant concept that appealed to younger families, quick service, clean surroundings, and inexpensive food” (Kotler, et al., 1996, p.16). McDonald’s started as single restaurant that spread to become a wealthy franchise. With ingenuity and good business management, McDonald’s succeeded in business and developed a system to bring
Americans food for a cheap price. Not only is the food an exception part of McDonald’s, but their service helps to aid in their success. McDonald’s has a goal of giving people a fun time, but not having them loiter around for too long. It makes the business a more of a “fast -food” where the family can enjoy a meal for a cheap price and leaving when they are done.
McDonald’s also has a dedication for cleanliness, and for this reason, it is intended for the customer to stay long enough to enjoy the place. To appeal to children, “McDonald’s aims fast food advertising directly at children” (Kotler, et al., 1996, p.186). They include “Happy
Meals” that includes a meal, as well as toys and other fun things for children to do while they eat. McDonald’s service, along with the food, is what Americans want from fast -food industry, allowing it to be number one in its class (Love, 1986).
McDonald’s knows how to serve people and adjust to consumers needs (Kotler, et al.,
1996). “McDonald’s monitors product and service quality through continuous customer surveys and puts great energy into improving hamburger production methods in order to simplify operations, bring down costs, speed up service, and bring greater value to customers” (Kotler, et al., 1996, p.34). “McDonald’s publishes the complete nutritional breakdown of their menu items” (Brooks, 1999). They cont inuously change their way of cooking and preparing the food to satisfy customers, switching their cooking oil from animal

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fat to 100 percent vegetable oil, which is much lower in cholesterol (Love, 1986). Since fries are considered their “signature” item, McDonald’s claims that the distinctive taste could only come from the way they cook it (Brooks, 1999). McDonald’s has promotions every now and then to attract and increase the number of customers (Kotler, et al., 1996). For example, there was a promotion where a cup of coffee and a bran muffin are offered at $1, while regularly, the coffee and muffin each sell at 95 cents each (Kotler, et al., 1996)
“McDonald’s has set a long-term strategy of being where the customer is” (Kotler, et al., 1996, p.16). It serves teriyaki burgers in Japan, pasta salads in Rome, and wine with its
McNuggets in Paris” (Kotler, et al., 1996, p.34). McDonald’s concentrates mostly on its hamburgers, fries, and drinks, but the place also offers sausage gravy biscuits and specialty items for different locations. For example, it offers Saimin for the Hawaiian market (Kotler, et al., 1996). Saimin is well known Hawaiian noodle soup that originated from Guangdong,
China (Hamstra, 1999). McDonald’s seems to be everywhere. A population of 5.6 million people in Hong Kong already has 42 restaurants, and management experts saying that it’s capable of have 100 or 200 restaurants (Emerson, 1990). It seems like there is at least one in every city and “McDonald’s plans to open restaurants in schools, trains, gas stations, and supermarkets” (Kotler, et al., 1996, p.62).
By examining the needs of consumers, McDonald’s has found the solution to every situation. The answer to the important question as to what the people need and want and what price are they willing to pay is found (Love, 1986). They accumulate an understanding of what kind of service to provide to its customers. For example, their emphasis on the sanitation system is important. Most people would prefer to eat at a place with clean tables, clean floors, and a nice atmosphere. The service provided by restaurant employees is also an

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important factor that will determine whether the customers will return and food protection is also enforced (Love, 1986).
Many people go to a McDonald’s restaurant because it has a high standard of what the company calls QSCV — quality, service, cleanliness, and value (Kotler, et al., 1996).
McDonald’s is accepted in our society because of its consistency, clean restaurants, and quick service (Kotler, et al., 1996). It is figured that money and time are the biggest factors that determine whether a person chooses to eat at a fast -food place or an elegant restaurant
(Kotler, et al., 1996). The company takes in what they think are important to the consumers.

—General Research on Quality of Products and Services
One way to ensure good quality of product and services requires continuous pursuit of three goals: customer satisfaction, employee satisfaction, and productivity. Customer satisfaction often refers to the role of the consumer. The consumer is satisfied when his or her needs are directly linked to employee incentives for quality. Employee satisfaction depends on employee incentives, especially employee empowerment. The empowered emplo yee has the information skills and responsibility to produce a quality product or service that satisfies consumer (Schwartz, 1992). Production of the products and services should obey the law of producing quality: production is governed by supply and dema nd. Therefore, the production of quality must have commitment from top management: quality must be highly valued by its consumers and employees must have the incentive to produce increasing better products and services. An organization that is likely to succeed in implementing total
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quality has a strong need for quality improvement benefits. Such an organization is convinced that total quality is the means to success. In addition, the members of the organization are willing to create link among customer’s satisfaction, employee empowerment, and productivity.
There are various accepted meanings of products and services. To an economist and to some quality professionals, there are two kinds of products: tangible products (or goods); and intangible product s (or services). Then there are distinctions between types of services.
Production-centered services have low customer involvement, relatively little variability, and they employ physical training methods. Customer-centered services have high customer involvement, more variability, and psychological training. Another meaning of service is customer service itself, which helps customers obtain and use product bundles. The bundles are combination of goods and services. Services have at least two other me anings: the facilities in which service is provided and the human interactions that deliver the service. It is best to view the various meaning of product and services as overlapping domains that support customers’ satisfaction with the total product bund le. (Ballard, 1992)
Successful companies are cautious about their products. They care about the quality.
They understand the technologies of the products well enough to know what can be done and what should be done. Successful companies respond to quality problems quickly and with thoroughness, often incurring additional expense when the firm can least afford it. The result of action on defects is not only a better product but also reduced manufacturing cost
(Zimmerman, 1991). Due to the fact that they reduce the manufacture cost, the price will even be cheaper when they contribute to the consumers. Since the consumers will get the products in a cheap price, they will be satisfied with it.

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By applying the principles of service quality, an organization can satisfy its customers. Principles included the belief that customer services are only one aspect of service quality. Managing service quality also involves clearly defining customer and service, while avoiding jargon and some of the quality models used in manufacturing. A sixstep process can transform the principles into customers focus (Wollner, 1992). First, define service as a tangible service product, such as repair or delivery. Second, establish the goal of satisfying the customers who are end users. Third, translate customer needs into attributes of service product. Fourth, measure modification of the product to verity that it continuously gets closer to meeting customer needs. Fifth, be aware of the process should be simple and painless. Sixth, measure how well the service product satisfies customer priorities like ease of use and timeless. The quality of a business’s products and services is very crucial to its survival. —Discussion/Comparison on Quality of Products and Services
McDonald’s has given their customers the needs that they need for its products and services. All of the organizations should be aware of three categories: customer satisfaction, employee satisfaction, and productivity. Employees need to provide good product and service to each consumer to make them satisfied. Companies have to be creative to fulfill customers needs. McDonald’s is the place that plays all three roles in a worldwide basis.
Customers will be satisfied if they eat in a restaurant with quick service, clean surroundings, and inexpensive food. McDonald’s is a place where the whole family can enjoy their meal for a cheap price. Employees have kept the place to be clean all the time.
The employees at McDonald’s understand that consumers like to eat at a clean place.
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McDonald’s makes Happy Meals for children that include a toy in it. Children can enjoy the meal while they are playing with the toys. Some of the McDonald’s include a playground for little children to have fun after they done with the food. This shows that McDonald’s provides more than food and its services also to keep customers coming back.
Employees need to fulfill consumers’ needs for a business to succeed. McDonald’s has put in a lot of effort to improve their food. They change their way of cooking from time to time to satisfy customers. For health purposes, they use vegetable oils which is more healthier than animal oils. They do many promotions to attract customers. They also create different burgers for different times of the day. Employees have to give out great services and they play an important role for determining whether the customers will return or not.
They need to put out a lot of effort to keep the business in high standards.
High productivity is important to every company. Top management does have high quality of production. McDonald’s creates many different foods in each country. Each country has the same burgers, fries, drinks, and a specialty. It seems like everywhere in the world there is a McDonald’s. They create different food to satisfy with each customer’s needs. McDonald’s is very successful in today’s food marketing. Consumers are satisfied with the services and food in McDonald’s. Employees do their best to serve customers and fulfill their needs. They understand that they have to be creative enough to compete with other restaurants. They create different kinds of food to ensure the customers to return.
McDonald’s brings in high quality products and services to every country.

—Conclusions

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McDonald’s seems to be consistent with the general guidelines for success.
McDonald’s is successful because it is the number one fast -food chain restaurant.
McDonald’s innovativeness and its quality of products and services does follow the general recommended rules to excel in those areas. McDonald’s success in innovativeness and its quality of products and services have probably been the two most important factors in its success. McDonald’s innovativeness is quite healthy because it conforms very closely to the general suggestions for effective innovativeness. Successful innovation includes technological and administrative innovation, which McDonald’s both have. McDonald’s has introduced various new food items, the Happy Meal program, playgrounds, drive-through service, and so on which shows their excellent technological innovation. McDonald’s showed its administrative innovation by implementing the Made For You kitchen system and its annual report on videotape. McDonald’s innovativeness t ies in very much with their products and services.
The quality of products and services of McDonald’s matches most specifications for success in that attribute. Customer satisfaction, employee satisfaction, and productivity are very important for this attribute. McDonald’s has satisfied customers with inexpensive food and great services such as providing playgrounds for kids. It also conducts surveys among consumers to find out what they can improve upon. McDonald’s does seem to have some employee sat isfaction with its friendly management and McDonald’s is the eight largest employer which shows people want to work there. McDonald’s is productive with its continuous improvement of their production methods.

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McDonald’s has shown that it has done its research on how to become successful.
This is demonstrated by the fact that their innovativeness and quality of products and services conforms to textbook standards for being successful in those areas. McDonald’s has shown that its innovativeness and its quality of products and services have propelled it as a worldwide leader in the food services industry. McDonald’s will continue to be successful as long as it continues to innovate and maintain its high quality of products and services (and other factors too).

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