1.0 Introduction
McDonald’s is the world’s largest multinational restaurant chain that serves hamburger fast food. As one of the leading food service retailers, there are more than 32,000 restaurants across the world serving more than 60 million people in more than 100 countries every day. Around 85% of the restaurants are run by franchises or affiliates. (McDonald’s History, 2010)
1.1 History In 1937, Dick and McDonald opened McDonalds Bar-B-Que restaurant in San Bernardino which was a typical drive-in featuring a large menu and car hop service.
In 1948, the brothers shut down their restaurant and developed a new idea of self-service drive-in restaurant. They reduced the menu consisting only cheeseburgers, hamburgers, French fries and drinks.
The birth of McDonalds began with Raymond Albert Kroc whom was the distributor of a milk shake maker called the Multimixer in 1954. Ray Kroc discovered that the McDonald brothers were doing well using his Multimixers to serve their customers. He met up with them and managed to talk his way into running the franchising operation.
Finally in April 1955, Ray Kroc established the McDonald’s Corporation and opened the first restaurant in Des Plaines, Illinois. He bought out the brothers in 1961. (McDonald’s History,2010)
2.0 McDonald’s Overseas Operations
McDonald’s business structure is mainly based upon a geographic structure which is divided into various geographical segments. These segments include the United States, Europe, Asia/Pacific, Middle East and Africa (APMEA). (McDonald’s Global Sales Advantages, 2008) It is crucial for McDonald’s to maintain its major leading markets and at the same time expand the business into other emerging markets.
McDonald’s produces and markets different types of products with different prices in different geographical areas. Nevertheless, their food quality, service, cleanliness &values are the same for everywhere.
2.1 Mc