Mcdonalds Case Study
McDonalds Case Study
Introduction
McDonald’s is the most famous and well-known fast-food company in the world. It was started by Dick and Mac McDonald’s in 1940. Their concept of the restaurant was based on speed and therefore called ‘Speedee Service System’ in 1948, which in today’s times is known as the fast food concept (Wikipedia, 2009). McDonald’s serves fast food to approximately 47 million people in more than 30,000 restaurants located in 121 countries (Bized, 2009). The product offering has chicken, beef, bread, milk, vegetables as the main ingredients which are composed into burgers (chicken, ham, beef, and vegetable), French fries, milk shakes, soft drinks, breakfast items, juices, and desserts. The major marketing moment for McDonald’s was provided by Ray Kroc, and the brand continues to be a major success by the hard work of its family of employees, suppliers, and franchisees. McDonald’s for years have continued with an extensive advertising campaign targeting children, healthy food, and convenience. The advertising is done through television, radio, newspaper, billboards & signage, sponsoring sport and charity events, many local events throughout the world.
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Question 1 – Summarize the strategic situation confronting McDonald’s
In 1973 Richard Steinig (27 years) became a junior partner in McDonald’s Corp. Franchisee in his 2 stores that generates 80,000 in annual sale and earns 15% from the profit. But since 1999, sales haven’t budged, but instead costs kept rising. (McDonald’s began advertising the Big N’ Tasty burger). Instead of living the American Dream, Steinig says: ‘The business just isn’t nearly as profitable, I don’t think that McDonald’s has the waiting list it used to, and part of that reason is that the return on investment just isn’t what it used to be’.
Prospective franchisee were once eager to get into the 2 year training program by waiting in line for hours, but no line exists today, and the current franchisee start to feels
Introduction
McDonald’s is the most famous and well-known fast-food company in the world. It was started by Dick and Mac McDonald’s in 1940. Their concept of the restaurant was based on speed and therefore called ‘Speedee Service System’ in 1948, which in today’s times is known as the fast food concept (Wikipedia, 2009). McDonald’s serves fast food to approximately 47 million people in more than 30,000 restaurants located in 121 countries (Bized, 2009). The product offering has chicken, beef, bread, milk, vegetables as the main ingredients which are composed into burgers (chicken, ham, beef, and vegetable), French fries, milk shakes, soft drinks, breakfast items, juices, and desserts. The major marketing moment for McDonald’s was provided by Ray Kroc, and the brand continues to be a major success by the hard work of its family of employees, suppliers, and franchisees. McDonald’s for years have continued with an extensive advertising campaign targeting children, healthy food, and convenience. The advertising is done through television, radio, newspaper, billboards & signage, sponsoring sport and charity events, many local events throughout the world.
?
Question 1 – Summarize the strategic situation confronting McDonald’s
In 1973 Richard Steinig (27 years) became a junior partner in McDonald’s Corp. Franchisee in his 2 stores that generates 80,000 in annual sale and earns 15% from the profit. But since 1999, sales haven’t budged, but instead costs kept rising. (McDonald’s began advertising the Big N’ Tasty burger). Instead of living the American Dream, Steinig says: ‘The business just isn’t nearly as profitable, I don’t think that McDonald’s has the waiting list it used to, and part of that reason is that the return on investment just isn’t what it used to be’.
Prospective franchisee were once eager to get into the 2 year training program by waiting in line for hours, but no line exists today, and the current franchisee start to feels
References: •Barkham, Patrick, “The Big McMakeover”, Date Published: 28th January, 2008, Date Accessed: 29th May, 2009, Link: http://www.guardian.co.uk/business/2008/jan/28/mcdonalds.fooddrinks •Bized, “McDonald’s Field of Operation”, Date Accessed: 29th May, 2009, Link: http://www.bized.co.uk/compfact/McDonald’s/mc1.htm •McSpotlight, “Whats wrong with McDonald’s?”, Date Accessed: 28th May, 2009, Link: http://www.mcspotlight.org/campaigns/translations/trans_uk.html •Press Release, “Super Size Me Movie Review”, Date Published: 28th August, 2004, Date Accessed: 29th May, 2009, Link: http://www.futuremovies.co.uk/review.asp?ID=232 •Spiritual Guides, “McDonald’s Vegetarian & Vegan Options at Fast Food Restaurants”, Date Accessed:28th May, 2009, Link: http://www.vegetarian-restaurants.net/OtherInfo/McDonalds.htm •Wikipedia, “McDonald’s”, Date Accessed: 29th May, 2009, Link: http://en.wikipedia.org/wiki/McDonald’s •Cravens D. W. & Piercy N. F. (2009) Strategic Marketing, 9th Edition, McGraw-Hill/Irwin, New York •Nurseb911 2008, Never Compete on Price: The Lessons of McDonald’s and Motorola, viewed 3rd June 2009, http://www.gurufocus.com/news.php?id=34744 •Gogoi P. and Arndt M. 2003, ‘McDonald’s Hamburger Hell’, Business Week, 3 March, p. 1, viewed 3 June 2009, http://www.businessweek.com/magazine/content/03_09/b3822085_mz017.htm