Mcdonald’s vs. Burger King
Situation Audit
Since 1954, McDonald’s has seemed to be invincible. They have demonstrated consistent quality throughout thousands of restaurants. McDonald’s has enforced operational standards effectively that controlled service, cleanliness, and other operating processes. They have consistently hired friendly employees that contributed to customer satisfaction. And they successfully focused upon a specific target market for over forty-two years, the family. McDonald’s has maintained an unremitting marketing strategy specifically designed to attract families that include products, pricing, site locations, and advertising and media efforts. All of these strategic initiatives have contributed to the historical success of the organization. However, despite increasing sales and organizational operating income throughout the 1990’s, domestic income has remained relatively consistent. Over the last ten years, several company and industry critical issues have challenged McDonald’s traditional strategy and its market position.
McDonald’s has demonstrated tremendous growth. Just after six years of operating, the founder Ray Kroc, had sold 200 franchises. Within seventeen years, he had become a billionaire and was responsible for the success of one thousand millionaires! Sales and income have steadily increased every year and until 1998, McDonald’s has had a positive percent gain. In 1998, McDonald’s was opening 2,400 new restaurants around the world. A confident marketing attitude prevailed that believed only one percent of the world’s population eats at McDonald’s daily, therefore, the remaining ninety-nine percent represents an untapped market. McDonald’s sustained an aggressive global growth strategy to gain market share and profitability worldwide. Standardizing materials and equipment contributed to expansion efficiency and decreased new building and construction costs. McDonald’s also grew through the purchase of 184 outlets owned by a weak
Since 1954, McDonald’s has seemed to be invincible. They have demonstrated consistent quality throughout thousands of restaurants. McDonald’s has enforced operational standards effectively that controlled service, cleanliness, and other operating processes. They have consistently hired friendly employees that contributed to customer satisfaction. And they successfully focused upon a specific target market for over forty-two years, the family. McDonald’s has maintained an unremitting marketing strategy specifically designed to attract families that include products, pricing, site locations, and advertising and media efforts. All of these strategic initiatives have contributed to the historical success of the organization. However, despite increasing sales and organizational operating income throughout the 1990’s, domestic income has remained relatively consistent. Over the last ten years, several company and industry critical issues have challenged McDonald’s traditional strategy and its market position.
McDonald’s has demonstrated tremendous growth. Just after six years of operating, the founder Ray Kroc, had sold 200 franchises. Within seventeen years, he had become a billionaire and was responsible for the success of one thousand millionaires! Sales and income have steadily increased every year and until 1998, McDonald’s has had a positive percent gain. In 1998, McDonald’s was opening 2,400 new restaurants around the world. A confident marketing attitude prevailed that believed only one percent of the world’s population eats at McDonald’s daily, therefore, the remaining ninety-nine percent represents an untapped market. McDonald’s sustained an aggressive global growth strategy to gain market share and profitability worldwide. Standardizing materials and equipment contributed to expansion efficiency and decreased new building and construction costs. McDonald’s also grew through the purchase of 184 outlets owned by a weak
References: Hartley, R (2006). Marketing mistakes and successes. New Jersey: John Wiley & Sons Inc. Kolter, P & Keller, K (2006). Marketing Management. New Jersey: Pearson Education, Inc.