• McDonald’s • Telstra
Pre-seen exam information Semester 1 2013
CPA Program professional level Global Strategy and Leadership
© CPA Australia Ltd 2013
Case Study 1
McDonald’s case facts
McDonald’s Corporation: A strategic approach to global growth McDonald’s Corporation (McDonald’s) is the world’s leading global foodservice retailer with more than 33 500 restaurants serving nearly 68 million people in 119 countries each day (McDonald’s 2012a). In 2011 the company generated USD 27 billion in revenue from its global operations and USD 8.5 billion of operating profit. Headquartered in the United States, McDonald’s Bar-B-Q restaurant was opened in California in 1940 by brothers Richard (Dick) and Maurice (Mac) McDonald as a typical drive-in featuring a large menu and car hop service (where customers stay in their car and are served their food). In 1948 the brothers closed the business for three months of renovations and reorganised the business as a hamburger restaurant, using production line principles and featuring a simple menu of nine items including the staple 15 cent hamburger, cheeseburger, soft drinks, milk, coffee, potato chips and a slice of pie. In 1954 Ray Kroc, a salesman for Prince Castle Multi-Mixer, visited the restaurant intending to sell the brothers some items. Kroc was fascinated by the operations and learned that the brothers were looking for a franchising agent to expand their restaurant chain nationally. Kroc joined the company in 1955 as National Franchising Agent, and opened his first McDonald’s in Illinois. He subsequently purchased the chain from the McDonald brothers. McDonald’s Corporation was created in 1965 when the company had its first public stock offering on the New York Stock Exchange at USD 22.50 per share (McDonald’s 2012b). The famous ‘golden arches’ of McDonald’s were created in 1969 when the company’s logo underwent a major change, and remodelling of the restaurants was also undertaken to re-brand the
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