Mcdonald's Case Study
McDonald’s case analysis
When McDonalds brothers first started in the year 1941 with their unique and attractive idea of the drive in fast foods restaurant it appealed for the Americans and was successful, and McDonalds was said to be the first of their kind in the fast food industry which gave a great opportunity to entering the market and shortly after that dominating it for years, and according to the 5 forces of porter they almost had no barriers for entry and they were also able to crush the rivalry "old classical eat-in- restaurants" with their unique idea of foods that were of a good quality, quickly assembled and served, and at the same time affordable to customers.
After the idea appealed to many local business men, McDonalds started franchising the restaurant and that was an opportunity for the business to grow even bigger, and at the year 1952 the first franchise was opened in Arizona but later after that, the franchisees weren 't able to keep up with standardization of the restaurant 's cleanness as well as the operations and assembly lines which created a very lethal internal threat at that time.
After Ray Kroc joined McDonalds and became the national franchise agent he eventually bought out McDonalds and became the chairman and CEO and called it the McDonalds corporation, he knew that standardization was a success factor for McDonalds so he created the Hamburger University and came up with the a philosophy of QSCV that the entire chain had to maintain, and later after that the skyrocketing profits opened up new opportunities for the corporation to invest largely in real estate, by leasing potential stores and then subleasing it to franchisees and that turned out to be great idea, with a lot of revenue gain.
For the McDonalds business everything was good until the 1990, then they started facing problems and their sales started to drop, many threats like increased preference of buying from competition (Wendy 's, Burger King ...etc)
When McDonalds brothers first started in the year 1941 with their unique and attractive idea of the drive in fast foods restaurant it appealed for the Americans and was successful, and McDonalds was said to be the first of their kind in the fast food industry which gave a great opportunity to entering the market and shortly after that dominating it for years, and according to the 5 forces of porter they almost had no barriers for entry and they were also able to crush the rivalry "old classical eat-in- restaurants" with their unique idea of foods that were of a good quality, quickly assembled and served, and at the same time affordable to customers.
After the idea appealed to many local business men, McDonalds started franchising the restaurant and that was an opportunity for the business to grow even bigger, and at the year 1952 the first franchise was opened in Arizona but later after that, the franchisees weren 't able to keep up with standardization of the restaurant 's cleanness as well as the operations and assembly lines which created a very lethal internal threat at that time.
After Ray Kroc joined McDonalds and became the national franchise agent he eventually bought out McDonalds and became the chairman and CEO and called it the McDonalds corporation, he knew that standardization was a success factor for McDonalds so he created the Hamburger University and came up with the a philosophy of QSCV that the entire chain had to maintain, and later after that the skyrocketing profits opened up new opportunities for the corporation to invest largely in real estate, by leasing potential stores and then subleasing it to franchisees and that turned out to be great idea, with a lot of revenue gain.
For the McDonalds business everything was good until the 1990, then they started facing problems and their sales started to drop, many threats like increased preference of buying from competition (Wendy 's, Burger King ...etc)
References: • http://www.emeraldinsight.com/Insight/menuNavigation.do?hdAction=InsightHome (journals) • Consumer Behavior 10th edition By Leon-Leon • Operational Management 13th edition by Shiffer