essay on mcdonald's history

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How McDonald’s Beat Its Early Competition and Became an Icon of Fast Food

By: Christopher Klein

Updated: September 27, 2023 | Original: May 15, 2015

New Hampshire brothers Richard and Maurice McDonald opened the very first McDonald's on April 15, 1955, in San Bernardino, California. Their tiny drive-in bore little resemblance to today’s ubiquitous “golden arches,” but it would eventually come to epitomize the fast-food industry, thanks to a pioneering system for food prep.

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The first McDonald's started slow but caught on fast

The first McDonald's—located at the corner of 14th and North E Streets, just off Route 66—started out serving up barbecue slow-cooked for hours in a pit stocked with hickory chips imported from Arkansas. With no indoor seating and just a handful of stools at its exterior counters, the establishment employed female carhops to serve most customers who pulled into its parking lot. The brothers’ business quickly caught on. Sales soon topped $200,000 a year.

After World War II , drive-in competition in San Bernardino grew, and the McDonald brothers discovered something surprising about their barbecue restaurant: 80 percent of their sales came from hamburgers. “The more we hammered away at the barbecue business, the more hamburgers we sold,” said Richard McDonald, according to John F. Love’s book McDonald’s: Behind the Arches .

McDonald's grew thanks to its 'Speedee Service System'

The brothers closed their doors for three months and overhauled their business as a self-service restaurant where customers placed their orders at the windows. They fired their 20 carhops and ditched their silverware and plates for paper wrappings and cups so that they no longer needed a dishwasher. According to Love, they simplified their menu to just nine items—hamburgers, cheeseburgers, three soft drink flavors in one 12-ounce size, milk, coffee, potato chips and pie.

“Our whole concept was based on speed, lower prices and volume,” Richard McDonald said. Taking a cue from Henry Ford’s assembly-line production of automobiles, the McDonald brothers developed the “Speedee Service System” and mechanized the kitchen of their roadside burger shack. Each of its 12-person crew specialized in specific tasks, and much of the food was preassembled. This allowed McDonald’s to prepare its food quickly—and even ahead of time—when an order was placed. All hamburgers were served with ketchup, mustard, onions and two pickles, and any customers who wanted food prepared their way would have to wait.

“You make a point of offering a choice and you’re dead,” Richard McDonald told The Chicago Tribune in 1985. “The speed’s gone.”

According to Love, the first customer at the newly reopened McDonald’s was a 9-year-old girl ordering a bag of hamburgers. The retooled restaurant struggled at first, though, and fired carhops heckled the brothers. Once McDonald’s replaced potato chips with french fries and introduced triple-thick milkshakes, however, the business began to take off with families and businessmen drawn by the cheap, 15-cent hamburgers and a low-cost menu.

McDonald's begins to franchise

With labor costs slashed and revenue growing to $350,000 a year by the early 1950s, the McDonald brothers saw their profits double. They had already established a handful of franchises in California and Arizona by the time a milkshake mixer salesman named Ray Kroc visited San Bernardino in 1954. Kroc couldn’t understand why the McDonalds could possibly need eight of his Multi-Mixers, capable of making 48 milkshakes at once, for just one location until he set eyes on the operation.

Seeing the potential in the business, the salesman quickly became the buyer. Kroc bought the rights to franchise the brothers’ restaurants across the country, and in 1955 he opened his first McDonald’s in Des Plaines, Illinois.

The relationship between Kroc and the McDonald brothers quickly grew very contentious as the aggressive salesman and the conservative Yankees had different philosophies about how to run their business. Kroc chafed at the requirement that he receive a registered letter from the Mcdonald's to make any changes to the retail concept—something the brothers were reluctant to grant. “It was almost as though they were hoping I would fail,” Kroc wrote in his 1977 autobiography, Grinding It Out .

Ray Kroc becomes the owner of the company

In 1961, Kroc purchased the company from the McDonald brothers for $2.7 million. While the name of the chain may have been McDonald’s, the face of the restaurant quickly became Kroc’s. Plaques with his likeness were mounted on the walls of many franchises with a description of how “his vision, persistence and leadership have guided McDonald’s from one location in Des Plaines, Illinois to the world’s community restaurant.”

The brothers who lent their name to the business and pioneered the fast-food concept faded into the background. After selling the business, the founders kept their original San Bernardino restaurant, to the annoyance of Kroc, which they renamed “Big M,” with the golden arches on the marquee sharpened to form a giant letter “M.” To gain his revenge, Kroc opened a McDonald’s around the block that eventually drove the brothers out of business.

The original McDonald’s was torn down in the 1970s and later replaced by a nondescript building that housed the San Bernardino Civic Light Opera. In 1998, it became the headquarters of a regional fast-food chain, Juan Pollo Chicken, which operates a small unofficial museum with McDonald’s artifacts inside.

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McDonald's: a brief history in 15 facts

By 1958 McDonald’s had sold 100m hamburgers - now the burger chain has 36,258 McDonald’s restaurants in 119 countries

The first McDonald’s restaurant was run by brothers Dick and Mac McDonald in San Bernardino, California. In 1954 Ray Kroc visited the restaurant and was so impressed by their efficiency of their operation that he pitched his vision of creating McDonald’s restaurants across the US.
By 1958 McDonald’s had sold 100m hamburgers.
Kroc once said of his four business goals: “If I had a brick for every time I’ve repeated the phrase Quality, Service, Cleanliness and Value, I’d probably be able to bridge the Atlantic Ocean with them.”
69 million customers are served every day
There are now 36,258 McDonald’s restaurants in 119 countries, of which 29,544 are franchised
Some 350 McDonald’s restaurants have been closed down so far this year - mostly in the US and China
32% of revenue comes from the US
40% of revenue comes from Europe - mostly from the UK, France, Russia and Germany
23% of revenue comes from Asia/Pacific, Middle East and Africa
US sales slipped by 2.1% to $27.4bn (£17bn) in 2014
The number of customer visits declined more than 4% in the US last year
McDonald’s has 420,000 employees
More than 80,000 people have graduated from McDonald’s “Hamburger Universty” training centre on the outskirts of Chicago
Previous McDonald’s CEO Don Thompson was paid $9m last year
McDonald’s will pay $9.90 an hour to its 90,000 workers from July after months of protest over poverty wages paid by fast food chains . The current average hourly wage is $9.01
Food & drink industry

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How a Late-Blooming Entrepreneur Made McDonald’s the World’s Largest Burger Chain

I t’s perhaps the most American of American-dream tales: The son of Czech immigrants, without so much as a high school diploma, recognizes the vast commercial potential of the humble hamburger and becomes one of the world’s most successful entrepreneurs.

There are a few plot twists, of course, including the fact that it took Ray Kroc more than half a century to dream his American dream. He was 52 when, on this day, April 15, 60 years ago, he opened his first McDonald’s franchise in Des Plaines, Ill. The red-and-white tiled restaurant, with the golden arches that would become the chain’s trademark, sold $366.12 worth of burgers, fries, and shakes on its inaugural day, per the McDonald’s company website . (Today, the chain serves 69 million customers each day at 36,000 locations in more than 100 countries — and reported $27 billion in revenues for 2014.) By the time of Kroc’s death in 1984, his family fortune was worth at least $500 million, per the New York Times .

Before taking the step that would ultimately lead him to the helm of the world’s largest fast-food chain, Kroc paid his dues as a salesman — for 34 years. Half of that time was spent selling paper cups to fast food retailers like Howard Johnson’s and Dairy Queen, and the other half selling “Multi Mixers,” which could mix five milkshakes simultaneously. It was in this capacity that he met Dick and Mac McDonald, two brothers who ran a small chain of hamburger joints in California. They had bought eight of the mixers, and as Kroc once told the Times , “I had to see what kind of an operation was making 40 [milkshakes] at one time.”

He was so impressed with their operation that, despite what he described as “the opposition of family, friends, and business associates,” he opened the first franchise of what he called “the McDonald’s System.” In 1961, when Kroc’s ambitious vision no longer jelled with the McDonald brothers’ goals, he bought the company from them. He was so sure of his strategy that, at the age of 62, he gambled his life savings and then some — and won.

His years of selling paper cups and milkshake machines played a key role in his success, according to the French chef Jacques Pepin, who called Kroc “the ultimate salesman” in a 1998 profile for a TIME special issue about the 20th century’s greatest “builders and titans.”

“Kroc gave people what they wanted or, maybe, what he wanted,” Pepin wrote. “As he said, ‘The definition of salesmanship is the gentle art of letting the customer have it your way.’ ”

McDonald’s has withstood countless controversies over the years, the latest of which is its part as a target of nationwide protest slated for today to pressure the fast-food industry to raise employee wages, but it remains the world’s largest hamburger chain . Likewise, its founder remains a larger-than-life figure in the business world. Kroc, who may be the subject of an upcoming biopic (in which Michael Keaton is reportedly in talks to play the lead), put it this way in the Times : “I guess to be an entrepreneur you have to have a large ego, enormous pride, and an ability to inspire others to follow your lead.”

Read the 1998 profile here, in the TIME Vault : Burger Meister Ray Kroc

Early Photos of McDonald's

The First Indiana McDonald's Opens in Hammond in 1956.

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McDonald’s: Company Analysis, Essay Example

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Introduction

McDonald’s has revolutionized the way in which people from all over the world eat fast food. When thinking about the success of the McDonald’s it is equivalent to thinking about the American Dream. The McDonald’s franchise was not the first, but it has been the premier example of a successful business model that started from just a single-drive in food place by a pair of brothers. McDonald’s has grown to have over 30,000 locations within over 100 countries. The McDonald’s franchise has followed the standards of innovation, consistency, and resiliency.

There have been roadblocks and challenges along the way, but for the most part McDonald’s has seemed to weather the storms. Their business strategy entails acknowledging the challenges from external and internal sources and commandeering a way to stay on top of the issues when they service. This following business analysis is to provide a critique overview of McDonald’s history, their business strategy, their internal and external environment, and examine the driving forces behind McDonald’s success. This information along with their successful financial statistics will allow the paper to see into the future 40 years ahead in determining if the company will sustain their success, and their impact on the environment. A strategic plan will be develop to keep McDonald’s as the market leader and ahead of their competition in the future.

McDonald’s is considered one of the first pioneers of the fast food industry. It began when Patrick McDonald opened “The Airdrome” in California at 1937. After three, years his two sons, relocated the entire building and opened the restaurant with a different name “McDonald’s Bar-B-Que Restaurant. It was a regular drive-in featuring an extensive menu and car hop service. The company was founded by brothers Maurice and Richard McDonald. The McDonald’s brothers opened their first McDonald’s restaurant located in San Bernardino, California in 1948. At the time, the menu included hamburgers, fries and milkshakes. In 1954, the two brothers met with Ray Kroc, a 52 year old Multimixer salesman, who was impressed with their company and decided to pursue them nationwide (McDonalds, 2013). The biggest event at that time in 1960 was the announcement that McDonald’s has sold more than 100 Million more hamburgers in more than 100 restaurants in America, and opened up the Hamburger University in 1961. When students “graduated” they received a Bachelor degree of “Hamburgerology”.

The Business started to develop, and in 1967, McDonald’s starts the business internationally. Therefore, nowadays we can see McDonald’s restaurants in 119 countries around the world. McDonald’s changed history with creating the first Drive-thru. The first drive-thru restaurant was opened in Sierra Vista, Arizona. The local army fort where there was no shortage of solider were usually not allowed to leave their vehicle wearing their army fatigues. In order for McDonald’s to continue to serve them, they solved this problem by introducing a new service “drive-thru”. The Drive-thru became one of most successful implementation in services field.

From this innovation in their fast food service, McDonald’s started to expand the business at a rapid pace. In 1963, the Ronald McDonald clown debuted as the spokesperson (clown), while McDonald’s sold their 1 billion number of burgers. The Big Mac introduced in 1968 was an instant hit, soon after; the famous frozen French fry was also introduced. To meet the needs of workingwomen the Happy Meal was introduced in 1979; the meal included a burger, fries, a soda and a toy. By June 1993, McDonald’s had 2,576 companies operating, and had over 9,000 franchises. In over 60 countries, they had over 1000. In the United States daily there were over 18 million people visiting a McDonald’s location.

Developing Business Strategy

At the time, McDonald’s had the second biggest brand recognition of any global brand. They had a high brand awareness with a $1 million advertising budget dedicated to the company. They introduced the new ad campaign in 1991, “Great Food at a Great Value,” that was successful in promoting productive value-meal combinations. In 1992, they followed up with their largest outdoor advertising campaign by a single brand. Their advertising messages focuses on customer satisfaction and value. Due to their increase brand awareness it was particularly pertinent to McDonald’s as many customers that were buying impulsively, and would select the McDonald’s locations out of a manner of convenience. An estimated 28% of the company revenues were obtained from their franchise fees. This amount was based on the percentage of sales gathered to cover the corporate services costs that included R&D and centralized marketing research. Now over 70% of McDonald’s restaurants are franchises. McDonald’s usually placed businesses in new countries aligned with company-owned restaurants that are located capital cities. There are franchised after they have well been established.

To attract more mature customers the company launched its Arch Deluxe in 1996, but the low-fat burger fell down. In 2001 subway surpassed McDonalds as a fast-food chain with 148 more stores than McDonalds, causing McDonalds to announce its first ever quarterly loss. The coffee based specialty drinks were successfully launched in 2006. In 2012, McDonalds sustained to emphasize beverages, value, breakfast, and traditional core favorites. They expanded the McCafé beverage offerings with the Chocolate Chip Frappé and Cherry Berry Chill. McDonald’s has expanded the coffee business offering over 1,600 McCafé locations, which in different countries such as Europe have different areas that are normally being located inside the restaurants that provide specialty coffees, desserts and snacks. In addition, McDonald’s has increased their convenience and accessibility, and with extended operating hours, self-order kiosks, optimized drive-through, and opened over 250 new restaurants.

In 2010, Don Thompson was elected and continues to be the president and CEO of McDonald’s, currently one of the world’s largest food service companies. McDonald’s Corporation franchises and operates McDonald’s restaurants that provide menu at different price points providing value in 119 countries. McDonald’s customer-focused Plan to Win (“Plan”) offers a common framework for a global business while also allowed for local adaptation. From the implementation of various initiatives surrounding the five pillars of McDonald’s: Plan, People, Products, Place, Price and Promotion.

McDonald’s has improved the restaurant experience for customers globally and grown worldwide comparable sales and visitor counts in each of the last nine years. As of December 31, 2012, there were 34,480 restaurants in 119 countries, 27,882 were franchised or licensed that included 19,869 franchised to established franchisees. There are over 4,000 licensed to developmental licensees and over 3,000 licensed to foreign affiliates that are located in Japan. While McDonald’s operates over 6,500. (McDonald) All restaurants are operated either by the Company or conventional franchisees fall under the franchise arrangements, and the developmental licensees and foreign affiliated markets are under the license agreements. The franchises that fall under the conventional franchise arrangements contribute a measure of the capital required by investing initially in the seating, equipment, signs, and decoration of their restaurant businesses. They have helped by reinvesting into the company over time. Modernizing the customer experience continued through McDonald’s grand remodeling approach, which provides latest restaurant designs and retailing efforts. The enhanced appearance and functionality of McDonald’s restaurants, which provide a more relevant experience for customers. In 2012, there were over 900 existing restaurants remodeled, the adding drive-thru capacity to attract additional guest counts.

Their Financials are continually improving:

McDonald’s: Company Analysis, Essay Example

Internal Analysis

McDonald’s brand mission statement is “To be our customers’ favorite place and a way to eat.” McDonald’s global processes have been aligned around a global strategy called the Plan to Win centering on the five factors of an exceptional customer experience: Products, People, Price, Place, and Promotion. McDonald’s has stayed dedicated to improving their operations and enhancing their customers’ experience. (McDonald’s) This mission includes becoming the first company for people in each local area independently in location. In McDonald’s, there is a strategy named “Plan to Win” since 2003. It exists in the field till now, and it forced McDonald’s to have 32 months of international, comparative, and productive sales which is the longest streak in the last 25 years. McDonald’s has had a success which lies generally above the industry average growth. To maintain the excellent service to all customers and continue to attain success with a profit through strengths such as McDonald’s process innovation and technology. Their vision refers to exceptional quality, cleanliness, high quality service and excellent value in customer service.

McDonald’s company states that their values in business are the corporate responsibility of the company. Both factors work together with independent franchisees and suppliers in order to achieve a maintainable future not only for the company but for all the surrounding communities. McDonald’s strong values having helped them to become the success they are, and how it is incorporated into their daily routine. The one the primary cores of the McDonald’s values are customer satisfaction. One of the reason for McDonald’s business are the customers. They are trying to explain the admiration by serving a high quality food and excellent service. McDonald’s strive to achieve a welcoming environment, and are committed to the people who are working for them. McDonald’s maintained a well-trained team with intercultural experiences and diverse backgrounds that are a part of their success.

The business model which contains the “three-legged stool” (suppliers, operator and employees) as the primary foundation for developing the business globally. The most prominent is to keep the balance between those “stool’s legs”. Ethics is also one of the values. McDonald’s tries to conduct their business with fairness, honesty and integrity. McDonald’s states that: “We are individually accountable and collectively responsible”. (McDonald’s). This necessitates not only focus on attainment more money but also on customers and the health of the whole system. The changing environment, customer, employee and systems need lead to the McDonald’s progress and innovation as well.

Their business strategy is rooted in their care paid to their customers and customer satisfaction. The customer service philosophy is talking about to retaining customer loyalty and dedication is the central core. If the company do not incorporate the principles of customer service to serve their customers, a company cannot survive. Customers will continue support the company products or services if the company cares about customers, their comfort and concerns. Adam Smith’s legendary Wealth of Nations (1776) said that customer service is the essence of the basic principles of competition. If one company wants to succeed, the company needs to comprehend what kind of products or services customers need at different times. If not the customer will lead to other companies understand what they want to satisfy their needs.

The products produced can be separated into several groups: Hamburgers, Chicken, pork and fish products. They have French fries, Soft drinks, and healthy alternatives such as salads and desserts. Their biggest seller are their hamburgers. They have Big Mac, Double Cheeseburger, McDouble, Big N’Tasty, etc. The most edible items on the menu with its signature taste are the French fries. The main reason for this is that no matter what other product the customer is willing to take, but in every set the first salads were added to the menus in 1985. Currently there are more, and more people are concerned about their health so, McDonald’s puts its all efforts to gain more and not lose any of customers throughout the world. Coca Cola is the biggest soft drink supplier to McDonald’s, followed by specialty coffees, and Hot and iced tea that is delivered by S& D Coffee in the US. McDonald’s also offers hot chocolate, assorted juice and other local beverages such as milkshakes are available in different markets all around the globe. The desserts that McDonald’s offers includes such items as ice-cream (McFlurry), McDonald-land cookies, Freshly Baked cookies, Pies, Cinnamon melts, the fruit and yogurt parfait, smoothies and other items which depending on the country and region.

External Analysis

The fast food restaurants industry is just one of the numerous components of the extensive food services listing. The total estimated revenue from this sector is about $1.86 trillion (US dollars) during the year 2012. Around $706.7 billion is the estimated earnings in 2012. This contributes to around 38% of the food service sub-sector of the world. The revenue from the industry is expected to grow at an estimate of 3.2% in 2012. On a global level, the fast food industry plunged down because the global recession arose and the unemployment rate hit high in the United States and many other countries. To keep the market position and to keep up the idea, some of the fast food operators set up promotional activities to attract customers and also shut down some of the underperforming stores (Smith, 2012). The recovery of McDonald’s after the global financial crisis is at a surprising pace, and the rate in sales growth continues to grow. One of the biggest fast food restaurant in the world announced that it is still gaining market shares from its competitions. The high rate of unemployment does not alter telling people to spend money and eat at McDonald’s. It has suggested and improved breakfast menu with the new frappe drinks. It was the critical success factor in recovering after the huge losses. The surprise of industry execs, McDonald’s reported a growth of 6.0% worldwide while the comparable store sales growth was almost 3.8%. The company is forecasting the further expansion of 5-6% worldwide. The chart below shows the slowdown experience in 2008.

Though the convenience that is provided by fast-food retailers which was valued by the growing numbers of travelers and families in the first part of the 90’s, the recession and fierce competition had produced a decline in growth and decreasing profits for the fast food sector. Predominantly the most hard-hit were independent restaurants that found it problematic to compete with the value-pricing strategies of the burger chains’ and their powerful advertising budgets. As a result, independents encompassed only 56% of all the restaurants in the U, S Sales declined in 1993, down from 63% in 1986, the restaurant industry in fact indicates that saturation in the “limited menu” portion of the restaurant industry was forcing growth-oriented chains to expand overseas and consider alternate outlets domestically. The growth in the restaurant industry includes the: total sales growth for this section during 1990–1991 that was only 0.3% in the U.S. Customer satisfaction, nutrition, and the price which seemed to form the basis for competition nationally. Even though all of the rapidly growing restaurant chains have pursued various strategies. “For example, Rally’s advertised “We get it right or you get it free,” Boston Chicken emphasized nutrition by roasting, steaming and baking its dishes, and Checkers, a double-drive-through burger chain, offered made-to-order burgers at lower prices. Drive-through window sales industry-wide reached $25 billion in 1992.” (GlobalENS 3)

(WikiInvest)

One of the problems that the fast food industry is facing is the criticism about the product, for being high in fat content, increase in body mass index (BMI) and putting on weight. A number of books and documentaries have increased awareness among the public about the harmful consequences on one’s health. The various articles get the health conscious consumers skeptical towards fast food and look for other resources to meet their likes. The rise in commodity prices has significantly affected the fast food industry. The cost of food and beverage inputs comes up to approximately 33% of costs, and higher cost of other raw materials has drastically reduced the profit margin. Due to fierce competition from other players in the market, trying to build a price increase is not possible either. Instead, many of the fast food franchises promoted meals at a remarkably affordable price, affecting their limits making plenty.

Situational Analysis (PEST Analysis)

Demographics will appear where most of your potential customers live their age, gender, needs, likes and dislikes. It appears that McDonalds has been successful in creating and fulfilling a need for just about everyone and appears to have hit on every demographic.

Daily traffic at McDonald’s is 62 million people, more than the population of Great Britain
McDonalds feeds 68 million people per day. That is similar to 1% of the world’s population.
McDonalds hires over a million workers in the U.S. every year with over millions of employees worldwide. (Business Insider)

The socio-cultural aspect of McDonald’s is rooted in their 27 billion in revenue each year that has made it the 90th largest economy in the world. $8.7 billion of this revenue comes from the franchise stores only, making McDonald’s richer than Mongolia. One in every worker in the United States has been employed by McDonalds. As for entertainment, McDonalds offers a recreation area for kids with slides and games, and free WIFI for adults. Parents get a break as their children eat a happy meal and play in the play area. McDonalds is an equal opportunity employer. Male, female, young and old, different nationalities and even handicapped people can be found working at McDonalds.

The political and legal aspect of McDonald’s takes into account the global offerings that they must adhere to. Although global consumer confidence continues to negatively affect the overall sales in retail for the food industry, yet McDonalds is still outperforming the market as it has grown its market share. The other significant contributors to comparable market sales were the U.K. and Russia. Despite ongoing economic challenges, McDonald’s priority remains: growing the overall business by balancing a strong focus on their unique value offerings, endless premium product innovation, and new products. In APMEA, comparable sales rose 1.4%, and approximate visitor counts rose 2.2%, despite a challenging year of economic pressures, partly due to Japan’s uneven recovery and the slower economic growth of China. Several problems have been due to economic uncertainty and government-initiated austerity measures implemented in many countries.

McDonalds has worked hard to streamline the customer experience through their major remodeling initiatives, which offer modern restaurant designs and retailing efforts. The enhanced appearance and functionality of the restaurants delivers a more enjoyable experience for the customer. Over 900 existing restaurants were remodeled during 2012 with the most adding drive-thru capacity to attract additional guest counts. McDonalds has also extended the accessibility of more convenient locations with extended hours and efficient drive-thru service. More than half of the restaurants use some form of various order points to maximize drive-thru capacity, including 1,500 with hand-held order takers to help improve customer service times. As mentioned earlier McDonalds also offers free WIFI and television to its customers. McDonalds tries to invest in the latest technology.

McDonalds incorporates a long-term, average annual constant currency, financial goal to measure business as they continue to build the business. McDonald area has also delivered strong results for their shareholders ever since its inception. McDonald’s long term, average annuals constant currency financial targets are: 1. Statewide sales growth of 3% to 5%, 2. Operating and revenue growth of 6%, and 3. POIC in the high teens. McDonalds strives to keep its prices affordable and uses a cost low advantage strategy to be competitive in the food industry. McDonalds also recognizes their responsibility to give back to the community locally and globally. In 2012 McDonalds sponsored the 2012 London Olympics. The McDonald house was built to help families and children that are dealing with cancer. Globally, McDonald’s uses a customer focused plan that provides a common framework for a global business and continues to prepare for local adaptation. Multiple initiatives encompass the five pillars of the McDonald plan. The five pillars include—People, Products, Place, Price and Promotion, each incorporated to enhance the restaurant experience for customers worldwide. This idea has grown worldwide comparable sales and visitor counts in each of the last nine years. McDonald’s restaurants are located throughout the entire world.

Environmental Impact

Environmentally, McDonald’s has strived to continue their success in trying to in waste reduction, and being a leader in protecting the environment. Since 1993, Michael Quinlan, McDonald’s CEO, felt pretty confident about his company’s environmental performance. McDonald’’ formed a partnership with the Environmental Defense Fund (EDF), which has helped to win over the approval of the customers and its efforts to reduce waste, combined with its highly-publicized move from polystyrene “clamshells” to paper-based sandwich wraps. It has helped to repositioned McDonald’s as the market leader, and purport the image in protecting the environment. In 1994, however, there was another problem with a nonprofit environmental group, this groups called the Beyond Beef Coalition, aimed at McDonald’s in a bigger plan to reduce beef consumption. The environmental complaints this time held to launch an attack at McDonald’s that did not criticize supplementary factors of their business but, rather, aimed at their central products and growing markets. “Quinlan did not want this campaign to devalue the reputation the company had solidified through the EDF partnership.” (UMich 5) It has been proved that as income rises, so does meat consumption. Take in for example the Koreans in 1975 and Japan that red meat consumption doubled as the population has grew in Asia so has the meat consumption. As more people around the world are adopting an American Style diet, they are consuming meat at a faster pace than the world’s farmers are able to produce.

The Beyond Beef Coalition saw the expansion of the “cattle culture” to the developing world as one of the greatest threats to the global environment. “The Coalition was comprised of individuals and organizations involved in environmental protection, animal rights, public health, and world hunger. “ (UMich 4) Similar to the Environmental Defense Fund, this groups of activist aimed at McDonald’s for its business strategy due it to being the industry leader, and one of the largest buyers of beef throughout the world. The goals of the Coalition were: to reduce individual beef consumption in the “U.S. by at least 50%; to replace beef in the diet with organically raised grains, legumes, vegetables and fruits; to change current cattle-industry practices, and to promote humanely and organically raised beef as an alternative for those who continue to include some beef in their diet.” (UMich 6) The main aim for the McDonald’s campaign was to notify at least 1 million McDonald’s customers about beef’s negative effect of on the environment through a large campaign around their thousands of McDonald’s locations around the United States. The volunteer activist group, Beyond Beef protested outside of a McDonald’s establishment on April 17, 1993 to leave leaflets and children’s literature that informed passersby’s of McDonald’s environmental costs with beef. The activist groups collect names for petitions in an effort to assist individuals to reduce their beef consumption by 50%, and to encourage McDonald’s to make a vegetarian component to their U.S. menu. By doing so they are also able to deliver 25% of advertising to the new item. According to research conducted by the University of Michigan, there has been no other commercial entity such as McDonald’s that has been responsible for the encouragement of prime beef consumption. In the United States alone in their over 9,000 restaurants in addition to tens of thousands around the world, McDonald’s proudly displays they have served over 85 billion hamburgers and counting. (UMich 5) According to them the real cost of beef is:

* Tens of millions of cows slaughtered;

* Trillions of gallons of water used to develop their feed;

* Millions of tons of methane, a greenhouse gas, released;

* Millions of acres of public land eroded and destroyed;

* Enough grain fed to cows to produce millions of hungry families with a daily meal. Most McDonald’s patrons are unaware of how their individual decisions as consumers make up to create such a devastating global consequences.

The Future (SWOT Analysis)

From their most recent financial statistics, McDonald’s has made in 2012 $27.56 billion in revenue, and $5.46 billion in profit. They have over 1.8 million employees in 2013, and they have over 34, 000 local restaurants that serve 69 million people in over 119 countries on a daily basis. (McDonald’s) Their main competition now is Subway, Wendy’s, Yum! Brand (Jack in the Box, etc.) Inc., and Burger King. Using the SWOT analysis, we can see that that are several strengths that include that they are the market leader, and they have the largest fast food market share in the world. They have better brand recognition than most other global companies that are valued at over $40 billion. McDonald’s is the one of the most recognized brands throughout the world. They have an annual $2 billion budget allocated for advertising, and is able to adapt their food menus to match the local community. In an effort to strengthen their brand they have partnered with notable brands that include Heinz ketchup, Dannon Yogurt, Pepsi and Coca Cola, and others that add value to the corporation.

However, there are several weaknesses that McDonald’s must overcome in the future to sustain their success. These factors include the negative publicity they contrived from critics that heavily criticized their unhealthy food choices that are targeted towards children let alone the rest of their demographics. McDonald’s helps to contribute to the problems of obesity that has expanded to be a factor around the world. The increase in introducing healthier food choices could potentially lower McDonald’s popularity as competition will soon spring up to offer better healthier food alternatives. While customers are their focal point, they also have an increasing number to employee turnover, as employees are low paid and low skilled. Yet the major problem with McDonald’s is their low differentiation from other fast food competitors, and opts to compete based on price than product differentiation.

In developing a strategic plan for the future, one must incorporate all of these factors as they will continue to be a problem and strength in the far future. Their current market share is broken down:

The long term strategy must recognized that the external factors will continue to change. McDonald’s must thus constantly monitor and erect the most efficient and effective actions to taken into response to the situations. McDonald’s needs to continually be involved in government related programs, the image created can be further supplemented by the active link to the political system. By engaging in programs that promote international growth, contribute to employing more national citizens, and maintaining a positive relationship with the government, McDonald’s will continue to maintain its’ market share. McDonald’s needs to comply and cooperate with various resources that can be used to implement new government programs that benefit society. Changes in economic factors such as the price of raw materials have effects on the profit margin. McDonald’s needs to take control of their suppliers, in becoming self-sufficient, they are able to forecast the changes in the deficit, and minimize the proverbial dip in profit margin. The growing concern in health will continue to be a critical component as society progresses. The changes in health and factors will continue to change. If America continues to eat the way they have been doing, the factors of chronic diseases will be a primary concern for the customer base. McDonald’s will continually invest in Research and Development in order to develop more products that create a neutral balance that benefits those that are looking for healthier alternatives for consumers. This change will help to improve McDonald’s image overall, and win the confidence of the general consumers, which will continue to lead to a better profit margin.

The values estimated for the next five years includes an increasing amount of income, focus on the changing trends and the amount of attention being paid to placing healthier choices on the menu. These include the strategy of heaving a salad and fruit bar for those that are looking for healthier choices. Also placing vegan choices on items, which can be served in a like manner for burgers and fries, but with vegan ingredients. The threats to new entrants have been high as there are certainly no legal barriers that have kept competition from entering the industry. Since McDonalds is already an established company and in 40 years will continue to grow they will enjoy the luxury of maintaining a large amount of market share with new restaurants in developing countries. By offering menu items at a value price, more consumers will continue to demand McDonald’s products. While many of the competition have tried to imitate, by continuing to use quality products people will continue to be the preferred Choice. As evident in this financial chart in the next five years, the income, sales, profits, and margin will continue to improve. By the year 2043, McDonald’s will be the largest franchise in the world. They will employee the most people around the world that contributes to countries GDP, and push for more products on their menus that cater to all types of food choices.

McDonald’s could be on pace to be the first trillion dollar company, and will be able to use improved technology to support its millions of customers that will no doubt still take to consume their trillions of burgers that will be served, on a daily basis. McDonald’s will still need to provide a strategy of sustainability that will help to reduce their environmental impact on beef and waste reduction with smaller packaging, better recycling alternatives, and using more organic food choices to cut down on water consumption. The feasibility of this long term strategy working for McDonald’s is extremely high. Experts have agreed that the type of strategy that McDonald’s currently implements has allowed them to be a public mainstay that more and more companies wanting to invest and buy franchises to place on every corner. Potentially with McDonald’s adhering to these type of strategies used they will be one of the first companies to make a trillion dollars, and can possibly help developing companies by employing more and more people. It can also cross over to providing better training and educational classes that will help with low skilled workers, and helping them to compete with more people around the world. McDonald’s will need to invest in other companies such as competitors like Yum! Brands, that has a diverse portfolio. By investing they will be able to add and grow to their customer base and their profit margins. This will set up for McDonald’s to remain a success beyond forty years from now.

Works Cited

“C- Case Sustaining McDonald’s Environmental Success.” Pollution Prevention in Corporate Strategy . 1995. Web. 10 Dec 2013. http://www.umich.edu/~nppcpub/resources/compendia/CORPpdfs/CORPcaseC.pdf

Gus Lubin, M. B. “19 Facts About McDonald’s That Will Blow Your Mind.” Business Insider . 2012. Web. 10 Dec 2013. www.businessinsider.com/19-facts-about-mcdonalds-that-will-blow-your-mind-2012-4?op=1

Kowitt, Beth. “Why McDonald’s wins in any economy.” CNN Money . 23 Aug 2011. Web. 10 Dec 2013. http://management.fortune.cnn.com/2011/08/23/why-mcdonalds-wins-in-any-economy/

“McDonald’s Investors. Company profile” McDonald’s . 2013. Web. 8 Dec 2013. http://www.aboutmcdonalds.com/mcd/investors/company_profile.html

“McDonald’s Corporation .” 4-Traders . 2013. Web. 10 Dec. 2013. http://www.4-traders.com/MCDONALDS-CORPORATION-4833/financials/

“Making a difference one family at a time .” McDonald’s . 2013. Web. 10 Dec 2013 http://www.mcdonalds.com/us/en/our_story/our_communities/rmhc.html

“Our History.” McDonald’s. 2013. Web. 10 Dec 2013. http://www.aboutmcdonalds.com/mcd/our_company/mcdonalds_history_timeline.html

Rosenbaum, Eric. “McDonald’s: More than a trillion served, by robots,” CNBC . 8 Dec 2013. Web. 10 Dec 2013. http://www.cnbc.com/id/101253344

“SWOT Analysis.” Strategic Management Insight. 10 Mar 2013. Web. 10 Dec. 2013. http://www.strategicmanagementinsight.com/swot-analyses/mcdonalds-swot-analysis.html

“10-K Form McDonald’s Corporation.” United States Securities and Exchange Commission . 2013. Web. 10 Dec 2013. http://sec.gov/Archives/edgar/data/63908/000119312511046701/d10k.htm

“Stock:McDonald’s Corporation (NYSE:MCD). “Wikinvest.” 2013. Web. 11 Dec. 2013. http://www.wikinvest.com/stock/McDonald%27s_Corporation_(NYSE:MCD)

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The Secret History Of The First McDonald's

Vintage cars parked at a historic McDonald's

When it comes to ideas that changed the landscape of American eating, few have been as impactful as the idea for McDonald's. The chain restaurant is an international powerhouse. The corporate offices quote McDonald's at having topped 38,000 locations around the world, with over 210,000 employees and 69 million meals served every day. In some people's perspective , the famed Golden Arches of McDonald's and their mascot Ronald McDonald are "bigger than Jesus." No matter who holds more sway these days, Jesus and McDonald's have something in common: Both come from humble origins — although the history of McDonald's may be the more secret and less straightforward of the two.

The first McDonald's was founded by two brothers , Maurice (Mac) and Richard (Dick) McDonald in the mid-1940s. The siblings established their business in southern California, though history shows it wouldn't stay there for long. Over the years, the family-named stand went through several different phases before evolving into an operation that would be copied worldwide. Before that could happen, the McDonalds would need to join up with a slick salesman from Chicago (and invent the first scalable fast food business model. Then, their claim to the "original McDonald's" would be challenged. How did they do it all, and what became of their first burger shop? This is the history of the first McDonald's.

The first McDonald's food was cooked in a movie theater

Long before the concept for America's most iconic restaurant chain was cooked up, Mac and Richard McDonald were working on the first of countless burgers that would eventually be grilled in their name. As journalist Lisa Napoli details in her book, " Ray & Joan: The Man Who Made the McDonald's Fortune and the Woman Who Gave It All Away ," the brothers McDonald had not come to California to cook. They had arrived to be movie moguls. After years of excruciating labor as crew hands in the studios, Mac and Dick decided to try their luck at screening films instead of working on them. They bought a theater and named it the Beacon. It was at the Beacon where the brothers first experienced food service.

Operating a movie theater is a tough, lean business. So the McDonalds had to come up with a clever and simple way to save and make money. Step one? Keeping guests from bringing their own food into the movies and newsreel screenings. Napoli writes that the McDonalds installed a concession stand and began selling their own food. Eventually, the Great Depression caused the Beacon to shutter. The brothers would then leverage their snack bar skills to really enter the world of foodservice.

The first McDonald's was a hot dog business

After leaving their Beacon theater, the McDonald brothers became very hands-on with building their restaurant business from the ground up. Literally. The brothers moved from one town over to take up shop on California's famous Route 66, where they constructed an octagonal food stall dubbed the "Airdrome." Still a ways out from starting on their famous hamburgers, the open-air food stand provided a unique link to the first McDonald's. At the time of its opening, however, it was something different.

Even with the difficulties of running a movie theater during economic turndowns, Mac and Dick knew that people would always need to eat. Close to the Airdrome was a small airport that often attracted travelers looking for free entertainment. After watching airplane traffic, folks would arrive at the Airdrome to consume inexpensive hot dogs and refreshing orange drinks. As Lisa Napoli writes for The Smithsonian Magazine , the Airdrome was popular enough to inspire the brothers further towards the restaurant industry.

Hot dogs have played an amusing part in McDonald's history since the beginning. Their success with selling frankfurters would help fuel Mac and Dick's ambition to be restaurateurs. (Decades later, the McHot Dog would end up being one of the brand's biggest flops .) Additionally, the building where the McDonald brothers had success selling hot dogs would end up being the home of the very first McDonald's restaurant. Only once they were outside the hot dog business did the brothers find success selling beef.

The brother's Airdome restaurant became McDonald's Bar-B-Q

Having found success in selling food, the McDonald brothers decided to expand their business by moving yet again. The Smithsonian Magazine writes that Dick and Mac took their operation to a small California town called San Bernardino. Here, they reconstructed the shell of the Airdrome, which they had cut in half and moved across the state. The brothers hadn't done all this to continue selling hot dogs.

Upon moving the Airdrome to "San Berdoo," Maurice and Richard opened their very first namesake restaurant, known as McDonald's Bar-B-Q (or Bar-B-Que depending on where you look). Yes, the restaurant served actual barbecue dishes, and no, the McRib was not one of them. That sort of special has been decades in the making (per The Atlantic ).

The Library of Congress details how the first McDonald's location was as busy as any current-day neighborhood Mac Shack on a weekend evening, sometimes serving up to 125 cars a night. World War II made things tight for the food counter, but eventually, it was stiff competition in the food business which disrupted the McDonalds' early success and sent them back to the drawing board.

The barbeque restaurant closed to make way for a burger operation

In the middle of experiencing success with McDonald's BBQ, brother's Dick and Mac did something that was at once both daring and dangerous. They closed the doors of their shop. They wanted to reevaluate how their business could be better. America was rebounding from the stark conditions of World War II, and eateries now dotted the California landscape. The McDonald brothers had a goal to distinguish their service from other restaurants and to play a big role in the economic boom.

The Smithsonian's history of McDonald's details how the move to close the Bar-B-Q operation transformed McDonald's restaurants forever– and also nearly ended the company before it was born.

McDonald's Bar-B-Q was shuttered for several months in 1948 as the brothers retreated and reimagined everything from their steps of service to their menu and decor. When the brothers reopened, they no longer claimed to be a barbeque restaurant. The walls gleamed in white and red tile while silver machines were used to cook rapid foods. McDonald's had become a full-fledged fast food stand.

McDonald's only hired men in the beginning

It's been recorded that the McDonalds' barbecue venture was an early adopter of drive-through food service. Before glowing plastic menu boards and sliding glass windows, drive-throughs operated differently. Diners would roll into the parking lot of a restaurant to be greeted by carhops who were ready to take and run food orders. In keeping with their trend of doing things against the traditional sense, Mac and Dick McDonald decided to nix this position from their staff for a few reasons.

Dick McDonald once told The Washington Post that cutting out the carhop was a crucial part of the first McDonald's business model. By having customers walk to the window for their food, McDonald's eliminated the need for an extra person on the payroll. There's a lot of evidence suggesting other intentions behind the move. During the 1950s and '60s era of food service, most carhops were women. Ray Kroc, the man who would join the McDonald brothers in business, said bluntly in an interview at the time, "we don't hire female help" and stressed that locations were chosen to appeal to families, rather than "transients."

The first McDonald's had a small menu

In addition to unjustly removing women from their workforce, the first McDonald's had other unique operational changes. In the book, " Ray and Joan ," Lisa Napoli writes that when the first McDonald's was housed in the Airdrome as a barbecue restaurant, it featured a large 25-item menu. Then, the brothers reopened the shop as McDonald's Hamburgers. The food bill was as thin as their early days in the movie business with only nine offerings.

Dishes were removed in order to streamline cooking procedures and a carefully choreographed dance was developed to fill the time between diners and their food. The most profitable items were kept while anything that didn't work was taken out with the trash. In his interview with The Washington Post , Dick McDonald said that the first items were simple: Hamburgers were given the option of cheese, but there were otherwise no modifications — they would come plain or with the standard ketchup, mustard, onion, and pickles. McDonald's also sold specially air-dried french fries, piping hot coffee, and the milkshakes that would inevitably lead them into the sights of business shark Ray Kroc.

Before Mr. Kroc appeared on the scene, there was almost nothing to see. The small size of the first McDonald's menu failed to attract customers, Napoli writes for the Smithsonian . There might not be kids smoking cigarettes, playing the jukebox, or flirting with carhops anymore, but there weren't any customers either.

The re-imagined McDonald's restaurant almost failed

Dick and Mac McDonald staked the future of the first McDonald's on a revamped experience that served the customers and the business. It would eventually change the food landscape of America, but in the '50s, it wasn't yet understood. Dick McDonald talks about how new customers would fill the parking lot with honking car horns when no one came out to greet their cars.

As Lisa Napoli tells it , those who remembered the barbecue joint returned to something different, old favorites now replaced by sparkling surfaces, neatly dressed men (and burgers), plus a kitchen that operated like a machine.

For the first time since the Depression-era days of the theater, McDonald's Hamburgers looked like it might never hit stride. On 14th Street in San Bernardino, the crew of the first McDonald's worked on without much of a crowd to feed. Lisa Napoli writes that the drought lasted four months. Even staged crowds couldn't generate interest. That is until one day when they did. In conversation with the Post, Richard McDonald chalks it up to the combination of a local radio host chattering about McDonald's on-air, and the cheap 15-cent burgers. Maybe it was divine intervention. Whatever it was, eaters started to show up.

The McDonald brothers began using the first location to sell their model

After a slow start, the first McDonald's became a hot spot on southern California's food map. So hot that the shape of a thermometer was painted outside the building. When the temperature reached "One Million Burgers Sold," the thermometer shattered and Mickey D's reached a fever pitch (per Lisa Napoli ).

"All hell broke loose," Dick McDonald told The Post . The brothers were fielding calls for help from restaurateurs all over the country. Entrepreneurs wanted what the McDonald's was selling, but they weren't telephoning about the food. McDonald's lightning-quick cooking times, streamlined service, and low-cost business model were totally new to the industry. Other operators needed to know how it worked. The first McDonald's building became a business independent of the food.

The Smithsonian Magazine details how the initial McDonald's structure was opened for demonstration to curious and potential business owners interested in learning the model. From the kitchen and lobby of that first octagonal building, the idea for a McDonald's franchise was born.

The McDonald brothers began licensing their special quick-service system at a price of $950. They sold instruction manuals. An interested purveyor from Phoenix named Neil Fox appeared, but he came for more than the milkshake recipe and an operating method. In 1953, Fox took on the McDonald's name for "good luck" in his own restaurant. It was the first McDonald's franchise location outside of the original and was even the first to feature the signature golden arches.

McDonald's Speedee Service System provided the foundation for fast food service

As History puts it, what made the original McDonald's such a profitable enterprise was the signature operation plans that Dick and Mac had begun selling across the country. It was known as the Speedee Service System. The System included guidance on how to maximize efficiency in that new McDonald's way. It became the bible of a fast food revolution.

The Speedee System was like Henry Ford's automated car line, but with food. The inside of McDonald's became a uniquely mechanized establishment for its day. In The Smithsonian , Lisa Napoli writes that the brother's modeled their easy-made menu from a New England builder called Levitt. Next, they installed their McDonald's with custom inventions like an automated condiment dispenser and Multimixer machines that could pulse milkshakes faster than the competition. They mapped the movements of the kitchen workers out with chalk. It was a totally new way of running a restaurant.

In an article for the BBC , Tim Harford detailed how the Speedee Service System reinvented the game by revealing the inefficiency of quick-service restaurants at the time (carhops included). Restaurant owners had proof that a short wait for hot food was what customers really craved. Napoli writes in the Smithsonian that a 1950s expansion of American car culture moved the needle even closer to fast foods. The Speedee System helped the first McDonald's franchises crawl out from California and the fast food model zipped along with them.

There was a mascot before Ronald

These days, Ronald McDonald is one of the most well-known mascots in the world (despite having faded away for the most part). From charity houses over the ocean to the Macy's Day Parade, the red and white clown was the face of the burger company for decades. Once imagined, Ronald would emerge as the marketing vehicle for one of America's biggest businesses during years of expansion. There was another mascot that had to walk before Ronald could run.

The first McDonald's was represented by an entirely different face, and this mascot wasn't there to advertise family-friendly fun. It was there to sell speed. Prior to a yellow-suited clown, McDonald's featured a pudgy-faced mascot named Speedee . Speedee was a chef with a round face that adorned billboards, signs, and even the McDonald brother's operation manual. During the early years at that first restaurant, Speedee played a big part in characterizing the McDonald's model for potential customers and licensees.

Speedee was retired from McDonald's in 1962, a few years after McDonald's franchises began to appear (per Mental Floss ). Surprisingly, Ronald wasn't the first to replace Speedee. It was actually the famed Golden Arches.

The Golden Arches were designed to be a roadside billboard

When Neil Fox showed up in San Bernardino California for a meeting with the McDonald's brothers, he intended to come away with a new restaurant concept. He likely never intended to help build a logo that would become more recognizable than the cross.

Johnathan Glancey details for the BBC that the history of the McDonald's Arches developed something like this: Fox purchased the rights to build the first franchise location of McDonald's from Richard and Maurice. The brothers wanted to be involved in designing the restaurant, and so together with architect Stanley Clark Metson, they came up with an idea to feature two golden arches on either side of the white-tiled structure. Per Business Insider , their goal was to create a functional building that would act as its own roadside billboard, signaling hot food to hungry and weary travelers.

As the McDonald brothers carried on in their remodeled version of the Airdrome, the franchise location in Phoenix got the honor of building with a brand new design. It may not have been the original McDonald's, but the truth is that this franchise location owns the claim of being the first-ever building to display the signature Golden Arches in McDonald's name.

The first CEO sold milkshake machines to the original McDonald's

Among the nine menu items first served at the original McDonald's, there is one item in particular that played a historic role in the growth of the company. In "Ray and Joan," Lisa Napoli writes that during the 1950s, Chicagoan Ray Kroc worked as a traveling salesman slinging milkshake machines. After receiving notice of an operation needing a large quantity of his 5-cup Multimixers, Kroc hopped in his car and took a drive (per Time Magazine ). It didn't take long for Kroc to see why the first McDonald's needed so many blenders. What he found on his sales call changed the trajectory of the first McDonald's.

At the time, the Mac Shack was just beginning to gain steam (though that famous sandwich was years from development). Kroc delivered on the McDonald's brother's large order of milkshake machines, says Napoli, but it wouldn't be his final interaction with the McDonald brothers. Seeing the growth potential, Kroc's next sale to the restaurant would be himself: As the franchise agent, Ray Kroc promised to help McDonald's grow in scale (per Biography.com ). He started his own location which was to be the first of many more.

Inevitably, Kroc would be the person known for taking McDonald's past its humble, octagon-shaped walls and into the international market, despite not being around with the restaurant during its earliest days.

Ray Kroc opened the second, "First McDonalds"

According to Time Magazine , shortly after joining the McDonald brothers in business, Ray Kroc proceeded to try and wrestle control away from them. Mac and Dick had taken a big chance in remodeling McDonald's from a barbecue joint to a hamburger stand. Even with their success at the time, the Daily Mail reports that the two founders were not as interested in rapidly expanding the business as compared to Kroc, who had the vision for a McDonald's on every corner long before it was reality. In order to work his way towards acquiring and growing the company, Kroc opened up his own franchise location in Des Plaines, Illinois. It was the second, "First McDonald's."

McDonald's Corporate writes that as Kroc opened his franchise store, he started an entirely fresh company within its walls. The Des Plaines, Illinois location was the first McDonald's in a (technically) brand new business venture. Kroc registered his company as McDonald's Systems Inc., later known as the McDonald's Corporation. It was entirely independent of his licensing agreement with the McDonald brothers.

While Mac and Richard carried on in San Bernardino at their original store, Kroc took their name and logo wherever he could. To the chagrin of Richard McDonald , Kroc called himself the Founder and named Des Plaines as the birthplace of the idea for his chain concept. According to Kroc, his restaurant is the real first McDonald's.

The original McDonald's is still there as a museum

Today, American diners can read about the history of McDonald's and make their own choice about which spot deserves the right to be called the first. Is the restaurant we know today a direct descendent of the San Berdoo stand, or just an idea inspired by it? The debate can take you two different ways, but only one location is still around to be explored. As to which one it is, well, that might tell you who gets the final say of being the "original."

Reporting by The Chicago Tribune classifies the Des Plaines, Illinois outlet as being McDonald's #1. In 1982, the building was torn down and then rebuilt with the original sign out front. It then became a museum replica that depicted the beginnings of the Mickey D's operation. For decades, this location served as a mecca to McDonald's fans until it was closed in 2008 and then demolished in 2017.

As for the "original" original, history lives on. Now, visitors have access to an unofficial McDonald's museum housed in the old bones of this California location. Operated by a local fast food purveyor named Albert Okura, the collection is private and has no formal affiliation with the Kroc-constructed corporation (per ABC News ). Still, tourists can come to see piles of McDonald's history that have been crowdsourced over 80 years of business.

The real first McDonald's was a source of pain for Kroc

After purchasing the naming rights for his company in the 1960s, Ray Kroc attempted to run the McDonald brothers out of business. According to Daily Mail , it wasn't enough for Kroc that the two had to re-title their restaurant as they watched their last name become an international powerhouse despite them. No. In the spirit of making McDonald's as big as it could be, Kroc was determined to erase the humble history of Maurice and Richard McDonald and name himself the Founder.

When Kroc went to buy out the McDonald brothers, the agreement came with a condition, writes Daily Mail. The original location would not be included in the transfer of franchises. Dick and Mac got to keep their store and Ray Kroc was free to build as many more as he liked. Despite the two founders changing the restaurant's name to "The Big M," Kroc was infuriated and vowed to get revenge. He opened a McDonald's location just blocks away. Several years later, the McDonald's brothers shut off their grills for the last time. However, as Lisa Napoli told Marketplace , it wasn't all bad: "The brothers had wanted to give over the restaurant to their employees and they did."

The story of Ray Kroc's corporation may live on in our bellies but the persistence of Maurice and Richard McDonald will live on in our hearts.

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Photos show what it was really like to eat at McDonald's in the 1950s

The first McDonald's franchise restaurant opened in Des Plaines, Illinois, in 1955.
When the first McDonald's restaurant opened, the menu only had nine items.
A McDonald's museum was later opened to show visitors what the restaurant was like in the '50s.

The McDonald brothers, Richard and Maurice "Mac" McDonald, launched their burger restaurant in the 1940s.

It had a simple menu, which allowed the brothers to keep costs low and quality high, and self-service counters, according to the company.

Then, in 1954, Ray Kroc, a milkshake machine salesman, came across the small burger joint. Amazed by its efficiency, Kroc wanted in, and he became the first McDonald's franchisee agent.

The following year, he founded McDonald's System, Inc., which would later become the McDonald's Corporation, and he opened his first franchised location in Des Plaines, Illinois, on April 15, 1955, according to the company .

By 1958, McDonald's had sold 100 million burgers. There are now more than 38,000 McDonald's restaurants in more than 100 countries.

Here's what it was like to visit McDonald's in the 1950s.

This is what the very first McDonald's franchise restaurant looked like.

The restaurant's famous red-and-white design was designed by architect Stanley Meston. However, after the McDonald brothers saw the design for the first time, they said that the roof looked too flat. It was then that Meston added the now-iconic golden arches to the building's roof.

The oldest still-operating restaurant featuring the original red-and-white design is located in Downey, California.

Though the McDonald's is no longer in operation, the site was turned into a museum to commemorate what it was like to visit the restaurant in 1955.

Called the "McDonald's No. 1 museum," the site in Des Plaines was created to replicate what it would have been like to visit the McDonald's franchise when it opened, which was a very different experience from what it's like to go to McDonald's today.

Before drive-thru windows and delivery apps were commonplace at fast-food chains, McDonald's customers would drive into the parking lot and place their orders at the counter.

Instead of the drive-thru model that's popular today, this method of ordering was called "drive-up."

The Speedee Service System that made McDonald's successful was originally based on Henry Ford's assembly-line production of automobiles.

Every McDonald's worker had a specific job, and most of the food was preassembled before customers even ordered, according to History.com . This allowed McDonald's locations to serve their food much faster than their competitors.

The original menu only had nine items on it.

The original McDonald's menu offered hamburgers, cheeseburgers, french fries, milk, root beer, orangeade, Coca-Cola, coffee, and three kinds of milkshakes: chocolate, strawberry, and vanilla.

In 1949, potato chips were swapped with french fries and McDonald's began selling milkshakes.

When customers placed their orders at the counter, a server would write them down on a ticket like this one.

At the first McDonald's location, every item cost less than 25 cents, and hamburgers were only 15 cents. Burgers could also be purchased by the dozen for large parties.

Unlike other fast-food restaurants that made their burgers to order, all McDonald's burgers were made the same way and placed under a heat vent ready to serve.

All burgers were pre-made with ketchup, mustard, onions, and two pickles. If you wanted to order your hamburger a different way, you would have to wait just a little bit longer.

When McDonald's first opened, its fries looked and tasted pretty similar to what you'll get today.

The chain marketed its signature shoestring fries as "salty goodness," Fox News reported.

If you stopped by a McDonald's in 1955, you'd definitely want to pick up one of the chain's Triple Thick Milkshakes, made in what was called a Multimixer.

McDonald's might have looked very different had it not been for the invention of the Multimixer. A Multimixer salesman, McDonald's Corporation founder Ray Kroc first met the McDonald brothers in 1954 while attempting to sell them more Multimixers for their restaurants.

It was then that Kroc introduced the idea of franchising their business and set plans into motion to open his first location.

Back in 1955, there were no dining rooms or drive-thrus, but McDonald's thrived on its drive-up model.

Whether customers took their burgers on the road or chose to sit in the parking lot, gazing up at the McDonald's sign advertising its 15-cent burgers, the experience started what would eventually lead to the expansion of the No. 1 fast-food chain in the world.

Just over a decade later, there were 1,000 McDonald's locations in the US . Today there are more than 38,000 McDonald's restaurants in more than 100 countries, according to McDonald's .

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The Company Profile of Mcdonald's

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Published: Feb 12, 2019

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Company’s profile, mcdonald’s history, the strategic direction, mcdonald’s in pakistan, mcdonald’s mission statement, vision statement.

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Essay Samples

McDonald's Sample Essay

Introduction

McDonald’s Corporation is undoubtedly the largest fast food restaurant chain in the world. Currently, the restaurant chain has established its presence in over 115 countries. Furthermore, it serves a wide variety of customers estimated around 70 million every year. Despite numerous economic challenges, McDonald’s has always remained firm in the fast food industry, annually registering impressive results. With its headquarters in the Oak Brook, Illinois United States, McDonald’s operates numerous successful restaurant chains under its brand name (Porter, 1998). The corporation’s success in the ever-challenging fast food industry can be attributed to the fact that McDonald’s has a formidable strategic plan and an outstanding management team (McDonald’s Corporation, 2001). This essay focuses on McDonald’s and looks at some of the factors that have enabled the company to become a household name. Over the decades, managers at McDonald's have continued to succeed, as a result of two factors which one will discuss in this essay. The first factor that one will discuss is the proper planning factor, and the second is the organization factor. These two factors are very important in any organization or business that aims to succeed in the market today.

Planning is the most important to any industry, and McDonald’s is not an exception. Planning is important because without planning, a company can end up in serious chaos. Planning is, therefore, the function of management, whereby the objectives of the firm are set, and the course of action aimed at the achievement of these goals is determined. Managers must, first of all, be aware of the different environments in which their restaurants operate before they can plan effectively. This will help them forecast into the future, so that they could plan any eventualities in the market. This is what the managers at McDonald’s did even, as they came up with strategic plans for their chain of restaurants (McDonald’s Corporation, 2001).

McDonald’s has a strategic plan that has been known as a ‘plan to win’. The company's project is not to be known as the largest world’s fast food restaurant chain. The company instead aims at being the very best fast food restaurant chain. In order to achieve this vision, McDonald’s has continued to use what is known as the five P’s: promotion, place, products, price, and of course, the people. Together with the five P’s, McDonald’s continues to apply its geographic strategic plans. In their US markets, they have adopted a strategic plan that places its focus on convenience, chicken, breakfast, and beverages. For the McDonald’s in the US, these are the key areas of focus.

McDonald’s success has mostly been as a result of the ability of the company to strategize or to plan properly. They have also introduced new items on their menu, such as the Southern Style Chicken Biscuit, which can be taken for breakfast, as well as the Southern Style Chicken Sandwich, which is mostly promoted as being ideal for lunch. When it comes to beverages, McDonald’s has also planned to introduce the new specialty of coffee as a hot drink. This introduction will, however, vary from market to market and will not be introduced at once in all markets.

Everything that the company does has been in an effort to keep with its global strategy. The global strategy is a Plan to win, which insists on offering only the best services to its customers. They have often come up with slogans that they hope will differentiate them from the other companies, and to set them apart from the competition. Planning is important to every organization. McDonald’s is the company that has managed to remain profitable because it has been able to plan ahead. They have strategically owned new restaurants only because they did proper market research and used their findings as a basis for doing business (Holmstrom & Milgrom, 1994).

Organization

The reality is that a company like McDonald’s would not be as successful as it is today if the company did not organize itself properly. The function of organization is one that is very important. A company that is not organized often becomes chaotic, as no one is held accountable for anything that takes place in the line of business. Proper organization from the top to the bottom is what has enabled McDonald’s to achieve the amount of success that the company has today. It remains a force to reckon within the fast food industry because of its organizational structure, which one will further discuss in this article. Analyzing and understanding organizational structures often involves working with data and charts, which is where Excel homework can come in handy, providing students with the necessary skills to organize and interpret data effectively in real-world scenarios.

McDonald’s has also aimed at promoting diversity among all the employees that work for the organization. Managers want all their employees to feel like they belong. As a result, they often aimed at being their customers’ favorite way and place of eating. One of the strengths of the organization is that it is able to emphasize on proper leadership skills. They also offer leadership programs to their executives who are extensive and comprehensive. They have established very high standards for all their employees. They always insist on hiring only the best, and each time, a new employee or manager has to do a better job than the former one (Holmstrom & Milgrom, 1994).

The organization also focuses on its human resources. The way McDonald’s hires employees is in such a way that they ensure that they only select candidates who indicate willingness to put the needs of the organization ahead of their own personal ambitions. McDonald’s also has a culture of appreciating its employees, so that they do not feel the need to pride themselves as the authors of a project. Whenever a project is successful, the glory is shared among the employees, so that no one feels left out. In addition, the company does not have a culture where fingers are pointed or people are vilified whenever something goes wrong. Also, the organization has well laid out succession plans, so that when an employee leaves, a vacuum is not created.

The company's succession culture, as well as its enduring culture, has seen its rise above the troubled times which have seen other companies going under. Even when the company needs to make changes in management, they do so under well-organized procedures, so that operations are not interrupted in the process. The firm never waits until a Chief Executive Officer has died or retired to replace him, as this has a way of creating a crisis. There are well laid out plans for succession, in case someone decides to retire or to leave the company for another one. It is these strong organizational capabilities that have contributed to its great customer service.

The company has over the years ensured that they have leadership skills which are sustaining. This is the reason why they have maintained the skills that are necessary to ensure that their customers are happy, so that they could keep coming back. They have been able to train their current leaders and even those they hope to have in the future. McDonald’s have over the years proven that they are capable of implementing leadership programs that are very strong and capable of producing the highest standards possible.

McDonald’s has remained strong because the company is able to adapt to changes that occur in demographics and technology. Changes in globalization have affected many organizations, and some have not been able to come through. The secret behind the success at McDonald’s has been as a result of their employee culture. The company has a culture where they build very capable team and emphasize on the value of teamwork. McDonald’s is a company where teamwork is valued. Each time they have a task to be accomplished or a business issue, the first thing that managers do is put a team together and empower them to accomplish the task. This is a culture that the company has natured for many years now, and can be seen by anyone who walks into any of the McDonald’s outlets anywhere in the world.

The corporation’s current Chief Executive Officer is Don Thompson. Mr. Thompson’s leadership style has been characterized the aggressive expansion and acquisition of the new market niches. As a part of its business strategy, McDonald’s regards business competition as a war (Clausewitz, 2010). McDonald’s allocates most of its resources on provision of core services in order to ensure that the corporation stays ahead of the rest in the fast food industry. In this respect, McDonald’s operates its outlets either as joint venture or through franchising. In 1997, the corporation redesigned its strategy to focus only on its core brand. This move saw the company divest itself off some chains in Mexico. McDonald’s primarily focuses on selling products that it can provide conveniently to its clientele. This includes various types of chicken sandwiches, hamburgers, French fries, and an assortment of in-house soft drink brands.

Concerning supportive policies, the corporation has ratified measures to ensure that it grows its business in the most profitable manner. Furthermore, McDonald’s believes in its systems, which ensure that the quality of its products remains high throughout the supply chain. Ethics is paramount to the corporation’s business. As a part of its policy, McDonald’s believes that good ethics means quality business. The corporation conducts its business in a fair and honest manner (Parasuraman et, el, 1988).

McDonald’s has a culture that ensures that the corporation grows continuously in order to respond to stakeholders’ needs effectively. The corporation has incorporated principles of organizational learning in its operations. These principles help the corporation to respond positively to ever-changing needs of consumers, system, and employees. Customer’s satisfaction is paramount to McDonald’s, since it is viewed as a business entity. The corporation offers excellent services to customers to afford them the unique experience that cannot be offered anywhere else. Currently, the corporation has the largest number of loyal customers than any other of its competitors. Additionally, the corporation has invested in the latest technology. McDonald’s was the first fast food restaurant to launch online shopping and selling of customized products. The company designs the business environment in which it operates, leaving others behind competition (Clausewitz, 2010).

Strategic leadership is critical for any business success. McDonald’s has an efficient labor force and a management team that is innovative and visionary. The aim of management and workforce at large is to shape the corporation’s culture and ensure that it is in tandem with the organizational strategy. Moreover, McDonald’s has excellent reward programs that are geared towards stimulating employee performance. A motivated workforce is critical to an organization that aims at making profits. McDonald’s uses numerous tactics to reward its employees. This helps meet the company’s objects and reduce overheads at the same time.

Controlling

According to McDonald’s Corporation Annual Report (2012), the company concentrates on the strategies that would strengthen its long-term survival with objectives of distributing evenly the shareholder returns in the top one-third of their colleagues. The company’s long-term financial targets are to:

Grow organic sales from 1% to 2% faster than the market grows in product classes and regions in which they operate

Attain the Core EPS growth of high single digits to low double digits

Generate free cash flow productivity of about 90% or even more

The fast food industry is extremely dynamic. Customer tests and preferences change rapidly. The organization must adopt a sound business strategy to stay ahead of competition. McDonald’s has a competitive strategy that has always manipulated the market in its favor. The corporation recognizes talents and trains them in order to build a formidable team that will always carry on the corporation’s mission, vision, and strategic plan. This has seen the company establishing a good organizational culture that is a critical organizational growth. The corporation appreciates diversity and unique customer requirements in the retail industry. This explains why the company has collaborated with other businesses in some of its chains to ensure that it serves the wider society.

McDonald’s had to apply various marketing concepts to percolate the global market. This market segmentation analysis did not include a survey; instead, it relied wholly on customer’s behavior data that was captured at various branches. The food is mostly served in bags, cartons, or plastic wrapping to minimize cost of operation and for quick identification. Menus are made from processed ingredients prepared from a central place, and then transported to individual outlets. Once in the destination restaurant, the food is finally cooked through grill, microwave, or deep frying for a short time to meet the ever-surging customer’s demand. Precooked food is constantly evaluated to root out stale or overstayed food products. Thus, food at fast food restaurants is mostly characterized by high amounts of fat, high sugar content and less fiber i.e. highly processed. For example, King Burger’s food had a characteristic flavor, aroma, mouth feel, and texture (McDonald’s Corporation, 2001).

Their products include chicken nuggets, pizza, sandwiches, and hamburgers. Customers check in any time of the day either for a bit or for a take-away. The customers are mostly youngsters, and a few old busy people who want to grab some food while on their chores. Young people, in particular, prefer fast foods because they are cheap. Food is packaged in a group and sold at a considerably cheap prize. The restaurant also has a value meal; this is a case when a collection of menu items is sold as a whole at a low price that would be also sold individually. These arrangement-attracted youths, especially school going children usually keep looking for either a hamburger or chicken nuggets to eat.

What is more, the restaurant has a hospital point of sale system to cope with high customer’s demand. This enabled kitchen crew to view orders placed at the counter and prepare them in real time. The system also ensures speed and accuracy in service delivery. Consumer spending was very high, for the time one had been there, the restaurant made sales amounting to $100000. It was evident that most Americans still prefer fast foods compared to cooking a meal at home.

McDonald’s customers in Asia, especially in China, are naturally conservative and prefer eating home-cooked meals, unlike fast food products. Fast foods are prepared with many additives, salts, sugars, flavorings, and preservatives that limit the nutritional value of the final product. McDonald’s restaurants in China include ingredients of organic foods to enrich quality of their food, in accordance with the recommended standards, and minimize the negative impacts of fast food. Despite all negative facts, fast food has become more appealing because it is cheaply priced with irresistible tastes. Consequently, this makes fast food almost everybody’s choice, despite its health implications. McDonald’s provides broad range of chic products, such as modern and classic foodstuffs, including chicken nuggets, pizza, sandwiches, and hamburgers. Its products’ design was initiated by designers, style makers, and buyers. For that reason, it becomes a new trend, which attracts a number of customers. The new items are channeled to the right stores at the right time. McDonald’s provides fashion and quality products at the best price to customers. The best price can be assured through buying in large quantities, purchasing the right products at the right place, focusing on cost-awareness, and making effective distribution. McDonald’s sells its products through stores, catalogues, and online stores. However, there is a limitation for shopping via catalogue and Internet, as this system exists only in some countries. Customers in up market estates are able to order products through catalogue and online, i.e. they can purchase merchandise via Internet. These two channels give advantages and convenience to the customers since they can purchase items at home. Nonetheless, the major distribution channel of McDonald’s consists in stores, which expands more rapidly than other two channels.

Catalogue and Internet shopping are the channels that offer customers more accessible and also increasing service, which reinforces its profile. The corporation does not own any stores, it rents all of them. Therefore, it can move its stores to the new location as the prime location changes. McDonald’s will not establish a new store until it finds the suitable place. Location of a store is essential for success. The company’s stores are always located in the best commercial regions, such as, busy streets and up market estates. A large number of customers are induced to shopping at McDonald’s because of the effective marketing tool of store displays.

McDonald’s usually launches several campaigns annually in order to promote fashionable products that satisfy the ever-changing consumer tests and preferences. Its customers can get up-to-date information about trendy fast food products from such social networks, such as Facebook, Twitter, and the magazine, which is also available on its website.

Video advertising, print advertising, and e-marketing are used to promote its products. Approximately 5% of its income is expended on advertising. There are websites, which customers can access 24 hours a day and 7 days a week. Customers can be acknowledged about a new trend and a new arrival of products via its website. The Internet utilization is a powerful tool in marketing. Online market can help to attract customers and encourage the business growth.

McDonald’s believes in people. Its employees are the most important asset. It encourages employees to share their ideas and attitudes. Moreover, it avoids line of authority. Teamwork and cost awareness are promoted. Responsibility is delegated to employees. Consequently, staffs will feel that they are one part of the company. Freedom and responsibility exist in all business functions and workplaces. People can make their own decisions. Some unexpected situations might happen, but the critical thing is that one can learn from mistakes and avoid them next time. There are policies of diversity, gender equality, and non-discrimination policy. The company usually concentrates on customer’s demand and always provides base of products, according to customer’s requirement. Employees in the stores are well-trained about customer’s services. When customers walk to the company’s outlets, they can feel revitalized, since McDonald’s always provides new fashionable products to clients. Its store layout is obviously separated among merchandise for children, teenagers, women, and men.

An analysis of McDonald’s indicates that successful firms do not target every customer; instead, they satisfy and meet demands only of certain groups of customers. This circumstance is called market segmentation. Consumers have different needs and interests. Firms have to differentiate products according to customers’ need in order to satisfy all clients. One cannot imagine that one product can meet all customers’ demands. However, avoiding mass marketing and focusing only on specific group of customers is significant. This process consists of three elements, which are segmentation, targeting, and positioning (Hale, 1996). Transforming demand and need of customers into marketing mix, which comprises of product, price, place, and promotion at the maximum satisfaction is the challenging job. It is vital to provide well-defined and large enough segmentation. The successful position of products depends on how well companies are able to offer more preferable products than their competitors.

Evidence indicates that there are four standards for effective segmentation:

Identifiable: Ability to determine

Viable: Enough quantity of customers which share the same interest in order for firms to get profit

Merchantable and governable: Easy to create sales and promotion

Static: Remain stable to carry out an activity

There are various types of segmentation, such as geographic segmentation, distribution segmentation, media segmentation, price segmentation, demographic segmentation, time segmentation, and psychographic segmentation (Treacy & Wiersema, 1993).

McDonald’s segments its customers based on both demographic and psychographic factors. Demographic segmentation can be defined as gender, age, income, and education level, while psychographic segmentation is based on customers’ lifestyle, attitudes, values, behaviors, perceptions, beliefs, personality, and interests. The company concentrates on satisfying demand and requirement of target customers rather than making and selling its products. Moreover, it offers products for children, teenagers, women, and men. Children segmentation includes a target audience starting from a newborn infant to an adolescent aged 14. In this segment, products will be produced based on the nature of tastes and preferences. McDonald’s segments’ customers are classified by demographic principle. It involves children, youngsters, women, men, relying on preference and style of everyone in that segmentation (Narver & Stanley, 1990).

After the market segmentation was discovered, firms got alternatives regarding decision about a group of customers that they will target. Firms can target only one segment with one brand of product, or provide different segments with one brand of product, or offer each customer groups with different brands of products. The choice of entirely targeting specific market is not always suitable. The successful company such as Body Shop targets only one segment, which is well-determined. Therefore, it can strongly enhance the appeal of products. McDonald’s major customers are young people aged between 18 to 45 years. The range of target customers was expanded into all ages of both female and male customers.

Positioning is the processes of making customers perceive its products in their minds. Customers’ demand of selected group has to transform into marketing mix, product, price, place and promotion. It is essential, regarding to the fact how customers perceive and position the products in their opinion relatively to the rivals. Sometimes, customers do not sense the correct image of the brand. The uniqueness of the brand is the main factor that leads to success. Positioning can be defined through various factors. It is essential for customers to make judgment and selection from them. The key factor in selecting a grocery store can be defined by price, the possible parameter in choosing a hotel can be made by level of service, the major element in buying electrical device, such as computer, can be chosen from quality and reliability. Some customers perceive that H&M provides cheap products relatively to its quality. It means that McDonald’s positioning is still unclear to some customers, since they understand the company in the wrong direction. Moreover, some customers do not know what the full name of the company is.

It is vital to create a strong brand, which provides competitive advantage to the corporation. Customers should perceive that McDonald’s offers fashion and quality products at the best price. Its merchandises are always updated. In addition, new items are always available. Website is one of the communicative tools that strengthen its brand. Moreover, online shopping is used to convey the business concept and induce customers to come to stores, and purchase products online or by catalogue.

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McDonald’s and It’s Critics: 1973- 2009 Essay (Critical Writing)

Introduction, swot analysis, the company’s control systems, recommendations, works cited.

Marketing entails offering quality products at reasonable prices. The research focuses on the marketing strategy of McDonald’s Company and its critics. The research includes the history of McDonald’s Company from its humble birth in California to its current worldwide acceptance as the best seller in the food and beverage market segment.

Specifically, the research includes a SWOT analysis. The research ends with a recommendation as to what McDonald’s should venture into in the years to come. McDonald’s implements textbook-based marketing strategies to catapult it to its present stature in the restaurant, food, and beverage world.

Gilbert Sara (4) emphasized McDonald’s was founded by Ray Kroc. Dick and Mac McDonald’s had opened its McDonald’s Restaurant on 14 th and E streets in San Bernardino state, California in 1940. The original store included a drive-in environment with a corresponding large menu and car hop services. In 1949, Dick and Mac had reduced their menu. The new menu item list included hamburger, cheeseburger, soft drinks, coffee, milk, potato chips, and pie. The most popular menu during this time period is the 15c hamburger.

In 1954, Ray Kroc accidentally enters the McDonald’s scene by selling a multimixer product to both Dick and Mac McDonald’s. Ray Kroc learns that both owners of McDonald’s were interested to set up franchises of their McDonald’s restaurant in many cities across the United States. Ray Kroc decides to enter the McDonald’s franchising business. Consequently, Ray Kroc opens his first McDonald’s store in Des Moines Plaines, Illinois on April 15, 1955.

Stanley Meston created the Golden Arches logo of McDonald’s. The company’s first day sale catapulted to $366. This was a large sum of money when comparing the value of $366 during that time period and today’s $366 value. The cost of food, clothing, shelter, and other necessities were cheaper back then compared to the prices of food, clothing, shelter, and other necessities of today, April 20, 2011. In 1965, the company was able to franchise 700 McDonald’s restaurants across the United States.

The new recipes included the “Big Mac” which was introduced to the public in 1968 and the replacement of potato chips with French fries. McDonald’s celebrates its 25 years of business operations. In addition, the company reached its 50 th anniversary in 2005. In 2008, McDonald’s came up with a global design of the company’s products.

Anja Bohm (12) opined McDonald’s company has its strengths. First, the company has distinctive competencies. The competencies include its strategic advantages. Competencies include low prices, high quality goods, excellent service and.

Second, the company gains a competitive advantage, people will enthusiastically flock to a new McDonald’s branch because the McDonalds name is a name that can be trusted and admired. Third, the company has a strong marketing strategy. The company spends lots of money for advertising the different McDonalds products in the television, radio, and newspapers.

Fourth, the company has strength in research and development. The company continues to experiment with new ingredients and menu to pamper the current and future McDonalds clients. Fifth, the company has strengths in human resource management. The crew are well trained to serve each client the same high quality way; serving the same high quality products at low prices.

Sixth, the company has strengths in information system. Clients and log on to the online McDonald’s website and make an order for hamburgers, French fries and the like. Seventh, the company has strengths in infrastructure. The company sets up the standard McDonald’s restaurant format. The people from different countries have grown to love the same store fast food style infrastructure, especially the busy working person.

Anja Bohm (12) reiterated the McDonald’s Company has its strengths. The strengths represent the McDonald’s development and growth of the company over time which is identified as the company’s “competitive advantage” and “distinctive competency” that is responsible for the company’s growth to be one of the top restaurants, food, and beverage companies of the world.

The company has the most critical components of a company’s financial resources. The company’s high revenues allow the company to have ready cash on hand to pay for its maturing obligations as well as daily operating expenses.

There are other strengths not discussed above. First, the McDonald’s Company has distinctive competencies that include a strong worldwide presence. The company is recognized the leader in the fast food chain market segment around the world, especially within the United States.

Everyone within the United States and major cities around the world has come across the name McDonald’s. People from all walks of life have visited a McDonald’s store. Everyone will comfortable that they can easily munch the same McDonald’s quality and taste whether one is in Los Angeles, California, Upstate New York, Virginia, London, China, Saudi Arabia, Japan, Korea, Malaysia, India, and other countries.

Second, the McDonald’s Company has under its worldwide fast food market segment more than 30,995 restaurants. The restaurants are strategically located in many places around the world. More importantly, more than 13,998 of the McDonald’s Company’s own stores are strategically located in many major cities within the local United States territory.

The establishment of the McDonald’s Company restaurants in different parts of the world indicates that there is strong demand for the McDonald’s Company’s products and services. The increase in the number of McDonald’s Company restaurants around the world proves that there is a strong demand for McDonald’s Company products and services.

Third, the McDonald’s Company introduces the important economies of scale principles in assigning costs and prices on its McDonald’s products. With the implementation of the economies of scale principle, the company continues to lessen its restaurant operating costs to more realizable levels.

Specifically, the implementation of the scale greatly lessens the expenses of its overall charting of new paths into uncharted fast food market segments around the world. The economies of scale theory states that some countries are composed of a majority of poor people.

The economies of scale theory states that some countries are composed of a majority of poor people. The economies of scale theory states that some countries are composed of a majority of very rich people. The economies of scale theory states that some countries are composed of a majority of average income people. McDonald’s offers it products at low prices. The company targets the general masses of the community.

Since there are poorer and average income people in the community compared to the community of rich and very rich persons, McDonald’s targets the average income and low income groups of people. The company is satisfied to generate a small income because there will be more clients visiting the McDonald’s stores compared to restaurants and food and beverages stores that offer its food and service products at very high prices.

Fourth, the McDonald’s Company maintains a string of children’s charities around many of its branches around the world. The name of the charity is The Ronald McDonald House. The McDonald’s Company spends lots of cash to feed the children entering its charity outlets. By engaging in children’s charities the image of the McDonald’s Company will improve in the eyes of the current and future customers. The amount allocated for the care of the children

Fifth, the McDonald’s Company focuses on the clients’ health and overall well-being. The company only uses ingredients that have passed its strict high standards. The McDonald’s Company complies with all the policies of the United States Department of Agriculture in terms of healthiness of the food ingredients and the food itself.

The company ensures that ingredients used in the production of goods and services are not spoiled or expired. The use of expired or spoiled food ingredients may cause the customers to suffer from food poisoning. Consequently, the customers can file a case in court for the food poisoning incidents. Such cases will cause a huge dent the image of the McDonald’s Company.

The company goes out of its way to protect its image. A damaged image will translate to a decline in the demand for the company’s products and services. A decline in the demand for the company’s products and services will cause a drop in the company’s revenues. A reduction in the company’s revenues will translate to a reduction in the company’s net profits.

Sixth, Anja Bohm (12) reiterated the McDonald’s Company invests in properties around the world and offers franchises. The establishment of McDonald’s Company restaurants around the world shows that many investors believe that the infusion of their hard-earned cash into the McDonald’s Company will be a profitable decision. The spread of McDonald’s Company restaurants indicate the investors are comfortable with their capital investment decision to have one or more franchises of the McDonald’s Company restaurant.

Seventh, the McDonald’s Company has a long list of real estate portfolios. The company is willing and able to purchase properties in different countries around the world. The purchase of such properties would be useful in terms of improving the company’s balance sheet presentation. The investors would be happy to see that the McDonald’s Company’s properties have increased through the years. An increase in the McDonald’s Company’s properties shows there is also an increase in the company’s stockholders’ equity accounts.

Eight, the McDonald’s Company has patents over very popular food items. The food items include Big Mc, Chicken McNuggets. Patents are defined as the government’s right given to an inventor or new product developer to craft the McDonald’s Company products. The copyright prevents the competitors and new entrants to the restaurant, food, and beverage competitors to produce the same products or even use the same product name such as “Big Mac”.

Ninth, the McDonald’s Company has one of the world’s most recognized logos. The Company’s logo is a huge “M” sign. Any person seeing the “M” logo can easily state that it means a McDonald’s restaurant is located nearby where the “M” sign can be easily seen from afar.

Tenth, the McDonald’s Company focuses its unwavering attention on its corporate social responsibility. The company implements community-caring programs. The programs are aimed at giving back to the community what the community has given to each McDonald’s restaurant located in major cities around the world in terms of food and beverage revenues.

Eleventh, the McDonald’s Company incorporates the local culture in all its branches in the United States, Europe, Asia, Africa, and other parts of the world. The McDonald’s Company hires the local residents to manage each McDonald’s restaurant. With the locally-hired McDonald’s employees, the company can be classified as a diversity-based company.

The Chinese employees bring a touch of the local Chinese culture to the McDonald’s China branches. Likewise, the Korean employees bring a touch of the local Korean culture to McDonald’s Korean branches. The United Kingdom employees bring a touch of the local United Kingdom culture to the McDonald’s United Kingdom branches.

Twelfth, the McDonald’s Company is strategically located in major airports, cities, highways, tourist attractions, and parks. Consequently, the large number of people passing through each McDonald’s branch easily accepts the sumptuous menu items displayed in each McDonald’s establishment.

Mike Meldrum (27) reiterated the McDonald’s Company has its weaknesses. First, the McDonald’s Company uses advertising strategies focused on inviting the children to visit the nearest McDonald’s restaurant.

Second, the McDonald’s Company implements a low pricing strategy to capture the competitors’ current clients. Clients would easily transfer their preference to McDonald’s products because the prices of their food items are low. Consequently, the competitors are forced to reduce their prices to levels matching or even nearing the McDonald’s food pricing levels.

Third, the McDonald’s Company lacks the penchant to innovate its products. The company continues to sell the same old McDonald’s products. The products include hamburgers, French fries, coffee, chocolate, beverage, Big Mac, and others. The people will generally prefer a change in the food menu to avoid boredom.

Opportunities

Mike Meldrum (27) theorized the company’s superior performance is the result of a successful fit between strategy and the environment. The community needs low priced food to fill their hunger fangs. In response, McDonalds creates high quality products to fill the community’s needs, wants, and caprices.

In addition, the company’s main technique is to analyze the competitors. The McDonalds Company does not fear the entry of new competitors because it is difficult to outmatch the McDonalds Company’s established high quality products sold at low prices. The suppliers are willing to supply McDonalds with highest quality ingredients and other company needs at reasonable prices.

The McDonalds Company does not fear product substitution because the substitutes are sold at higher prices; the clients will prefer lower priced goods and services. Realistically other traditional restaurant competitors offer their products higher prices than McDonalds.

Nadine Pahl (73) proposed The McDonald’s Company has its set of opportunities. First, the McDonald’s Company can effortlessly adapt to the food needs of the community where the company has established its strategically located branches. The company can introduce products that are very popular in the competitors’ restaurants. For example, the China branch of McDonald’s can introduce the popular food menus being sold to the competing Chinese restaurants or food outlets.

Second, Mike Meldrum (27) theorized the McDonald’s Company can introduce new marketing strategies to increase its revenues. The company can set up websites in each city, community, or state. With the McDonald’s website, the clients can easily order a hamburger or coffee with just the click of the mouse.

In addition, the company can distribute leaflets or promotional brochures to communities indicating the cell phone text numbers. The clients can easily order a McDonald’s Big Mac just by sending a cell phone text message to the local community’s McDonald’s branch.

In terms of threats, Mike Meldrum (27) insists the company can easily hurdle the encroaching new competitors because the new entrants cannot easily win the away the established client base of the McDonalds brand.

Further, the supplier threats can easily be resolved by contacting other suppliers to offer reasonably priced ingredients and other products. Likewise, the threat of substitute products can be easily answered by offering different product choices within the McDonald’s restaurant. For example, the Starbucks coffee is price three times higher than a cup of McDonald’s coffee.

Economics tells us the as prices go up, the demand for the products decreases. Thus, McDonald’s will always better alternative compared to Starbucks coffee because there are more middle income and low income people than rich people. The restaurant and food industry is composed of strategic groups. McDonald’s countless branches around the world are one strategic group that constantly wins most of the current and prospective client’s food preference.

The members of McDonald’s Company’s strategic group can easily resolve its immediate competitor situation. The company has been successful in implementing one universal marketing strategy to capture the new clients and communities food preferences. Currently, the company is at its maturity stage in the product life cycle environment.

The people from around the world have accepted McDonald’s as a mature company that serves their quality food needs at low prices for more than 50 years. Likewise, the macroeconomic environment, political environment, global environment, legal environment and social environment continues to be very favorable to the setting up of a new McDonald’s branch as well as the continued profitability of each currently established McDonald’s brand.

The McDonald’s Company has to contend with its threats. First, the McDonald’s Company has to overcome the current economic depression or recession. The recession covers much of the United States and Europe. The recession has reduced the current clients’ penchant to spend quality time gobbling a McDonald’s hamburger or sipping coffee while reading the newspaper’s headline stories.

Second, the McDonald’s Company has to resolve the currency exchange rate fluctuations. The McDonald’s Company will be happy if the currency exchange rate between the United States dollar and the Chinese currency, Yuan, will remain on the same level. A change in the currency exchange rate between the two currencies may spell an increase in revenues and profits or a decrease in revenues and profits.

Third, many of the competitors are coming up with new food items that can rival the taste, price, and quality of the McDonald’s products. Many local restaurants can easily implement new marketing strategies to please the ever-changing needs, wants, and caprices of its current and future food customers. On the other hand, the McDonald’s Company continues to steadfastly hold on to its popular brands throughout the years.

Fourth, the McDonald’s Company has to finally settle the health issues relating to the company’s food products. Everyone knows that eating too much hamburger is hazardous to a person’s health. Too much indulgence in the McDonald’s products may trigger hypertension, diabetes, and other ailments, especially for the “older” generation of restaurant clients.

Fourth, the McDonald’s Company focuses a major part of its capital investment on advertising. People often see McDonald’s advertisements in television shows. Likewise, McDonald’s advertisements are found in newspapers. In addition, McDonald’s advertisements are found in radio stories.

Fifth, many of the parents detest the McDonald’s Company’s marketing strategy. The strategy focuses on enticing the children to visit the nearest McDonald’s restaurant. The children are easy prey to the continuous advertising of the McDonald’s products and services. Consequently, the growing child will bring the McDonald’s food craze into their adulthood and elderly stages of life.

Sixth, the McDonald’s Company has been sued in courts for the effects of the unhealthy McDonald’s products on the health of its current and future restaurant customers. The lawsuits include charges that the food items are injected with addictive additives. The additives will create a craving among the current and future McDonald’s Company clients to return back to the nearest McDonald’s fast food restaurant to buy another set of McDonald’s addictive products to satisfying their addiction to the McDonald’s food items.

Seventh, major competitors are slowly, but surely, creeping into McDonald’s market segment and literally grabbing major markets. The popular Starbucks coffee is gaining a continuing increase in coffee lovers.

Likewise, Burger King has been able increase its food and beverage market share by chopping away and pirating many of the clients of McDonald’s. In addition, Wendy’s has successfully increased the number of its worldwide branches. The increase in Wendy’s branches translates a decline in the McDonald’s clients.

Eight, the McDonald’s Company’s setting up of new branches in other countries has been unfavorable in many instances. Some countries have slow economies which translate to slow sales. Slow sales statistical figures translate to slow profits. On the other hand, a fast economy translates to fast revenue generating activity. It is common knowledge that some countries have slow economies while other countries have fast economies.

Consequently, a fast economy will generate more revenues and profits compared to companies with slow economic inputs. Normally, communities or countries with few people having purchasing money will translate to lesser revenues and profits when compared to communities or countries having more people with higher purchasing power or having more money to spend for McDonald’s products.

Karl Moore (83) emphasized the company’s control systems focus is very realistic. The store officers and staff ensure that all the company’s ingredients are fresh and healthy. The store officers have implemented one strict production process in all the McDonald’s Company branches around the world. The company’s food preparation manual indicates the step by step process of preparing, cooking, and serving each McDonald’s around the world.

The food preparation process in the California McDonald’s Company branch is similar to the food preparation of the McDonald’s Company branch in Florida. Likewise, the food preparation process in the United Kingdom McDonald’s Company branch is similar to the food preparation of the McDonald’s Company branch in France. The food preparation process in the Saudi McDonald’s Company branch is similar to the food preparation of the McDonald’s Company branch in India.

The implementation of only one standard tried and tested ingredient choosing, and food cooking, and food preparation in all the McDonald’s Company branches around the world ensures that the outcome of each McDonald’s Company food and beverage activity complies with the company’s preset quality standards.

The company implements preset standards as a measure of quality performance. All branches must adhere to the standards for the sake of maintaining the company’s top spot in the world’s fast food market segment. The McDonald’s Company officers compare the employees’ actual job performance with established standards with the aim of improving any lackluster service performed by the company’s crew.

The McDonald’s Company officers do not waste any time in correcting or alleviation any customer complaints. The McDonald’s Company food crew is a human being, sometimes one commits unintentional errors. The new greenhorn employees are apt to commit mistakes fulfilling the needs, wants, and caprices of the clients.

The McDonald’s Company must be quick to remedy such errors to ensure the company will continue to patronize the company’s products and services. It is also customary to post the picture of the best employee of the month in each McDonald’s Company branch as a reward for enthusiastic and hardworking employees.

Based on the above discussion, it is highly recommended that the company continue its present course in terms of ingredient choosing, food cooking, food preparation, and pricing of the regularly sold McDonald’s Company products that include the “Big Mac”, Chicken McNuggets, the Frappes, and the standard hamburger, coffee, egg McMuffins, chicken, and other McDonald’s mainstay products being sold in its more than 50 years of existence.

The company should continue to expand its horizons by setting up more branches in other communities and countries to ensure that the world’s craving for the favorite McDonald’s Company products will be filled to overflowing status.

The Company does not have to retrench its employees because the company’s food and beverage market segment continues to generate huge revenues and profits. The company can use a combination of online (internet website) ordering, cell phone texting, and phone calls as a means for current and future clients to fill their need for the mouth-watering McDonald’s Company products.

In terms of the future, the horizon is crystal clear. Crystal clear means the company sees an increase in the number of McDonald’s Company branches sprouting like mushrooms in other cities that do not have a McDonald’s Company branch within the reach of the hamburger-loving, French fry-loving, and chicken McNuggets-craving residents.

Using trend analysis, since the current trend of setting up new McDonald’s Company branches in the past has spelled financial success, the company should continue in its unwavering stand to set up new branches in other parts of the world.

In terms of rationalizing, the company has been able to generate profits from each branch set up in major places where a huge volume of people congregate, the company should continue its present course to set up new McDonald’s Company branches, in malls, groceries, busy street corners, airports, train stations, and other busy intersections around the world.

Marketing includes offering quality products at reasonable prices. The history of McDonald’s Company from its humble birth in California to its current worldwide acceptance as the best seller in the food and beverage market segment shows the company deserves the accolades for striving to be the best in terms of product quality and quality service.

Specifically, the SWOT analysis scrutinizes the strengths, weaknesses, opportunities, and threats of McDonald’s. The recommendations show that McDonald’s continue its present course because the company will continue to generate more revenues and profits. Indeed, McDonald’s Company continues to successfully implement textbook-based marketing strategies to retain its catapulted stature as one of the best in the restaurant, food, and beverage world.

Bohm, Anja M. The SWOT Analysis. New York: Grin Press, 2009.

Gilbert, Sara P. The Story of McDonalds. New York: Creative Press, 2008.

Moore, Karl A. Marketing: The Basics. New York: Taylor & Francis Press, 2009.

Pahl, Nadine R. SWOT Anaysis, Methodology, and Practical Approach. New York: Grin Press, 2009.

Chicago (A-D)
Chicago (N-B)

IvyPanda. (2024, February 28). McDonald's and It's Critics: 1973- 2009. https://ivypanda.com/essays/mcdonalds-and-its-critics-1973-2009/

"McDonald's and It's Critics: 1973- 2009." IvyPanda , 28 Feb. 2024, ivypanda.com/essays/mcdonalds-and-its-critics-1973-2009/.

IvyPanda . (2024) 'McDonald's and It's Critics: 1973- 2009'. 28 February.

IvyPanda . 2024. "McDonald's and It's Critics: 1973- 2009." February 28, 2024. https://ivypanda.com/essays/mcdonalds-and-its-critics-1973-2009/.

1. IvyPanda . "McDonald's and It's Critics: 1973- 2009." February 28, 2024. https://ivypanda.com/essays/mcdonalds-and-its-critics-1973-2009/.

Bibliography

IvyPanda . "McDonald's and It's Critics: 1973- 2009." February 28, 2024. https://ivypanda.com/essays/mcdonalds-and-its-critics-1973-2009/.

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History of McDonald’s Essay Example

Pages: 7 (1734 words)
Published: April 3, 2019

This is an exciting and interesting essay to write for a number of reasons. For one it's an honour to make a research on one of the most profitable societies of the world, for second because the kindness of McDonald's employees and the precision of McDonald's Web site, are perfect sources for all kind of information that can help analyse through Porter's value chain, all the aspects of its value creation.

In the late 1940s, Dick and Mac McDonalds were searching for a way to improve their little drive-in restaurant in San Bernardino, California, U.S.A.; they invented an entirely new concept based upon speed service, low prices, and big volumes. Word of its success spread quickly, in 1952 they had more than 300 franchising inquires a month from all over the country. McDonald's is now the largest and best-known foodservice retailer and one of the two best-known and powerful brands in the

market. With more than 24,500 restaurants in 115 countries, some of those operated by the company, some by franchisees or by affiliates operating under joint-venture agreements.

The global market potential is still huge: yet on any day, even as the market leader, McDonald's serves less than one percent of the world's population. The restaurant chain plans to expand their leadership position through convenience, superior value and excellent operations. The effort to increase market share, profita! bility and customer satisfaction has produced high returns to shareholders: a compound annual total earning of 210ver the past 10 years. McDonald's vision is to dominate the world-wide foodservice industry.

Universal dominance means setting the performance standard for customer satisfaction and increasing market share and profitability through successful fulfilling McDonald's convenience,

value and execution strategies. A precise way of considering McDonald's' role of operations is through Porter's value chain analysis. The Value chain breaks down the firm into its strategically relevant activities, in order to understand the behaviour of costs and the existing or potential sources of differentiation. A firm gains competitive advantage by performing these strategically important activities more cheaply or better than its rivals. For a company which feeds some 38 millions clients every day, finding a reliable quality supplies is a major factor for success. McDonald's has solved the problem by making food supplies part of their success.

McDonald's distributors are strategically to be accessible to the each restaurant and carry practically everything, from meat and potatoes to lightbulbs. Coca-Cola, the right well-known drink, has been with McDonald's from the beginning supplying beverages. McDonald's is increasingly using its leverage to capitalise upon global purchasing practices. New restaurants throughout Europe feature tabletops from Belgium; chairs, floors and tiles from Italy; doors from Austria etc. all using low-cost, quality suppliers. McDonald's 'new 'Made for you' preparation food system will allow it to serve hotter, fresher food. When a burger is being created the bottom bun and the meat is heated up together in the microwave, than the cheese, ketchup, mustard and pickles are being put on and covered up with the other half of the bun.

The whole finished burger is then wrapped up into special paper and market with the time. New cookers are being added which grill the burger meat faster. Everything is then put in special storage cupboard, which additionally holds the food warm for no more than 10 minutes, after that the burger

is eliminated. When the customer orders his/her food is straightaway served. The quest for variety to satisfy the growing number of customers was attracting ultimately led to new items being added to the Classical menu (hamburger, cheeseburger, milkshake and coffee, soft drinks and fries).

Now there is a wide range of products that have been introduced throughout the years: Quarter Pounder (1972), Chicken McNuggets (1983), Egg McMuffin (1973), Big Mac (1963), etc. In addition many new products are always under development in McDonald's test Kitchens for evaluation in selected markets. The menu is often enchanted with promotional products to add variety on limited time bases. The group constantly examines their menus around the world in light of changing customer's taste, as well as local customs. In addiction to traditional favourites, customers will find special menu offerings in some countries outside the U.S. Examples include the popular Teriyaki Burger in Japan and vegetable Nuggets in India. Also in a large Muslim populations, such as Malaysia a! nd many Middle East countries, their menu is Halal, prepared in keeping with Muslim guidelines.

Research indicates that customers feel a unique emotional bond with the chain, the idea of a visit to them triggers a feeling of anticipation and excitement unlike in any other restaurant. Customers come to McDonald's for signature products they can't find anywhere else. In addition many families visit the restaurants because of their unique ability to put smiles on their children's faces. Happy meal combine wholesome food whit a toy; Ronald McDonald is a special friend; play places provide safe and fun recreation and the alliance with Walt Disney Company let the children's shout even more. McDonald's

is recognised as one of the best marketers of the world, investing some hundreds of millions of dollars every year for advertising and promotion of its image. In 1967 the franchisees created the Operators National Advertising (OPNAD). Fund by pledging to contribute 1 0f their individual restaurants sales to a national co-operative advertising program in addition to the 2 or 3 % they were contributing to their local advertising-co-operatives. McDonald's has always shown bits of real life in their commercials that seems to have became a standard for them. Their marketing efforts go far beyond advertising, including special food promotions, games, videos, cassettes, tapes, videos, CDs that we couldn't get anywhere else for the value. Because of the diversity of customers that go to McDonald's, they developed segmented marketing programs as various key audience.

McDonald's is the sponsor of such important worldwide sporting events as the Olympics and the World Cup s! occer, car racing (NASCAR), Basketball (NBA) and many more. Men are also drawn to McDonald's because of their unflagging support of our neighbours around the world. This begins with franchisee involvement in their communities and extends to Ronald McDonald House Charities. The brand is also sponsoring the Dinoland exhibit at Disney's Animal Kingdom in Florida and has various showcase restaurants in each Disney attraction resort. This means a well organised psychological bombing aimed at all kind of people, from every race and social class where the golden arches result to be the overall winner.

McDonald's Corporation is dedicated to the selling of hamburgers, a common job especially in the U.S. To survive in the communal market McDonald's delivers Quality, Service, Cleanliness and Value (QSC;V). This

chain is also well known because of its consistency in delivering a customer experience that has value far beyond good food at a great price. But probably the most attractive side of McDonald's' activity is the training that stands as background in every single employee. McDonald's corporation started his fortune training people on how to be kind, fast, precise and effective: it has been an absolute pioneer in this field. This year is the Hamburger University's 37th Anniversary. Hamburger University is McDonald's worldwide management training centre located in Oak Brook, Illinois. Designed exclusively to instruct personnel employed by McDonald's Corporation or employed by McDonald's Independent Franchisees in the various aspects of the business.

All training programs be! gin with one essential ingredient: The Basics of McDonald's Operations. Because of McDonald's international scope, translators and electronic equipment enable professors to teach and communicate in 22 languages at one time. McDonald's also manages ten international training centres, including Hamburger Universities in England, Japan, Germany and Australia. Today, more than 50,000 managers in McDonald's restaurants have graduated from Hamburger University, located in a 130,000 square foot, with a faculty of 30 resident professors. McDonald's believes that his quick-service format would be lost if service at the order desk was not courteous and efficient, to avoid this problem some detailed video tapes have been created to train every single worker who had to have direct contact with the customers. The tapes cover every aspect of dealing with the customers during his 15 seconds at the counter. Crewmen are instructed to initiate each order with a polite question: 'May I have your! order, please?' The success of these service methods cannot

be questioned. Competitors soon realised the benefit of classroom instruction too.

Now all major fast-food chains have training schools. Yet, non-has come close to matching the resources McDonald's continues to devote to formal instruction. The Hamburger University even includes a 154-room lodge where students live during training. Given its commitment to uniform standards, the McDonald's System hardly seems to provide room for individual initiative. In fact, one of the least understood characteristic of the system is that its fascination with uniformity exists side by side with its lesser known-but equally strong-respect for creativity and judgement of its franchisees. Without the freedom of franchisees and suppliers to exercise their businessperson instincts, to test their own ideas on new products and procedures, and even to challenge the corporation head-on, McDonald's might still have attained its celebrated uniformity, but a terrible price. It would lose the creativity those divers franchisees and suppliers provide. It would, in short, lose touch with the marketplace. Approximately 800f McDonald's restaurant businesses world-wide are owned and operated by franchisees.

Each McDonald's restaurant runs on ! the standard basis given by the big McDonald's headquarters: approximately 2,800 employees provide a wide variety of support functions to the 24,500 McDonald's restaurants through a network of divisional, regional and local-country offices. The chief way to control his restaurant is done in many ways. I think that the most effective way, is the MBWA (The technique of managing by wandering around) to make personal inspection on Q.S.C.& V..This effective technique, done by regular visits is the one most used by McDonald's chiefs to control directly their manager and the other employee's work.

Bibliography

McDonald';#1203; Annual Report 1998 McDonald'ҳ
Behind the Arches Cliff Bowman, The essence of strategic Management, Laurie j. Mullis, Management and organisational behaviour Tim Hannagan,
Management Concept and practices Thompson Strickland, Strategic Management
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Women’s History Month Feature: Danville McDonald’s Owner Abby Tamme

Published 4:15 pm Wednesday, March 20, 2024

By Special to The Advocate-Messenger

As Women’s History Month is celebrated around the United States during the month of March, the McDonald’s system is proud to count many outstanding female employees, franchisees and suppliers among its leaders.

In the U.S., women own and operate 30 percent of all McDonald’s restaurants. One of those restaurants is in Danville.

Abby Tamme is a third-generation McDonald’s owner operator who began her career under the Golden Arches at the age of 23.

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“With my Grandpa and Dad being owner operators, I practically came out of the womb having McDonald’s in my life,” said Tamme. “I had the goal of becoming an owner operator and was willing to put in the work to make it happen. I worked my way up to shift manager, then general manager, supervisor and then entered the Next Gen Program. As an owner operator, I always keep the mindset that if it’s easy, you won’t appreciate it and that can really apply to anything in life.”

Today, Tamme operates three McDonald’s locations, in Danville, Harrodsburg and Lawrenceburg. She works hard to represent women in such a male dominated industry. She takes pride in both giving back to the community and leading by example for all members of her team.

“Since having children, I have gained a new appreciation for the women in my field and restaurants,” said Tamme. “It is truly inspiring to see how many other women have to juggle work and family while still managing to be such awesome moms. It has created a common understanding between me and my crew members. I would never ask anyone to do something I wouldn’t do myself. I’ll be right by your side getting the job done.”

Tamme gives credit to her strong hometown community, family and background in public relations and marketing for all of her success today.

“I practically grew up at McDonald’s. From birthday parties to having celebratory meals with my teammates after a soccer game to handing out receipts with my dad at five years old,” said Tamme. “All of my locations are in my hometown, we have so much history here, which creates a special connection to give back to our community.”

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COMMENTS

McDonald's
1940-1948: The birth of fast-food pioneers. The first McDonald's drive-in was opened in 1940 by brothers Maurice ("Mac") and Richard McDonald in San Bernardino, California.In 1948 the brothers revamped the business, and a newly envisioned McDonald's restaurant was created to produce huge quantities of food at low prices.. The brothers developed a simple, efficient format that they ...
History of McDonald's
1930s. The oldest operating McDonald's, on Lakewood and Florence in Downey, California in March 2007, was the chain's third restaurant and the second to be built with the Golden Arches. The McDonald family moved from Manchester, New Hampshire to Hollywood, California in the late 1930s, where brothers Richard and Maurice McDonald ("Dick" and ...
How McDonald's Beat Its Early Competition and Became an ...
CSU Archives/Everett. The original McDonald's restaurant, featuring a ten-item menu built around a 15 cent hamburger, in San Bernadino, California, circa 1955. "You make a point of offering a ...
McDonald's Company: History and Overview Essay
The company was started in 1940 by Maurice and Richard McDonald (Anaf, Baum, Fisher, Harris, & Friel, 2017). The company has its presence in over 120 nations. The multinational firm has its headquarters in Oak Brook, Illinois. The common products marketed by the firm include chicken, coffee, hamburgers, soft drinks, and milkshakes.
McDonald's: History of the Company
McDonald's is a food joint that was started in 1937 in the US. When it started, it dealt with hot dogs. It has transformed itself into a chain of food joints sprawling over several continents within the years. Clients from all over the world are impressed by the quality of service that McDonalds has to offer and hence the food joints receive ...
History of McDonald's: Timeline and facts
Big Macs. Chicken McNuggets. The legendary Egg McMuffin. It all started with a hot dog and a drive-through barbecue restaurant. Brothers Maurice and Richard McDonald started the first McDonald's ...
McDonald's: a brief history in 15 facts
Rupert Neate. The first McDonald's restaurant was run by brothers Dick and Mac McDonald in San Bernardino, California. In 1954 Ray Kroc visited the restaurant and was so impressed by their ...
essay on mcdonald's history
McDonald's History is one thing that you can be sure of - it's been around for over 60 years, and during that time, it's played a major role in the food industry. In this essay, we're going to take a look at just some of the things that have happened at McDonald's over the years.
The First McDonald's Franchise: How Ray Kroc Got Started 60 ...
He was 52 when, on this day, April 15, 60 years ago, he opened his first McDonald's franchise in Des Plaines, Ill. The red-and-white tiled restaurant, with the golden arches that would become ...
Essay about McDonald's: Evolution of the Food Industry
McDonald's: Evolution of the Food Industry. History. McDonald's has had a global impact on the food industry. McDonald's developed a revolutionary idea known today as fast-food. This impact began in 1930 when Maurice and Richard McDonald left New Hampshire seeking to make a fortune in Hollywood, started up a drive-in restaurant in San Bernardino.
McDonald's: Company Analysis, Essay Example
The Future (SWOT Analysis) From their most recent financial statistics, McDonald's has made in 2012 $27.56 billion in revenue, and $5.46 billion in profit. They have over 1.8 million employees in 2013, and they have over 34, 000 local restaurants that serve 69 million people in over 119 countries on a daily basis.
The Secret History Of The First McDonald's
The Smithsonian's history of McDonald's details how the move to close the Bar-B-Q operation transformed McDonald's restaurants forever- and also nearly ended the company before it was born. McDonald's Bar-B-Q was shuttered for several months in 1948 as the brothers retreated and reimagined everything from their steps of service to their menu ...
McDonald's History of Conquest
Introduction. The history of McDonald's dates back to 1954 when Ray Kroc was awed by the great order for multi-mixers from an outlet in San Bernardino in California (McDonald's). The outlet was managed by two brothers, Dick and Mac McDonald.Ray Kroc noticed very effective operations by the two brothers (McDonald's). The brothers labored to prepare a few items that included burgers, fries ...
The Story of the McDonald's [Free Essay Sample], 2033 words
The brothers decided to give Ray Kroc a chance ("History of McDonald's"). In the period of less than 7 years Ray built more than 90 McDonald's restaurants, the McDonald's brothers were still making a fortune with everything that had their name on it, but Ray found a clever strategy to eliminate them from the business.
"The Founder" Summary Essay
Introduction. The Founder is a movie that tells the story of how McDonald's came to existence. It goes as far back as the 1950's and 60's when restaurants were the only place where customers could buy food. Drive-in restaurants that Roy Kroc (Michael Keaton) tried to sell were not run in an effective way and customers would wait long for orders.
Turning Point
In 1962, McDonald's introduced its now world-famous Golden Arches logo. A year later, the company sold its billionth hamburger and introduced Ronald McDonald, a red-haired clown designed to appeal to children. In the early 1960s, McDonald's really began to take off. The growth of the car contributed a lot to McDonald's success.
The History of Mcdonalds
In conclusion, this report is describing the McDonald's history that first McDonald open in Bar-B-Q restaurant on Fourteenth E streets in San Bernardino, California. In addition, McDonald's environment is about the factor and forces outside the marketing that affect marketing management ability to build a successful relationship with the ...
Photos Show What McDonald's Looked Like When It First Opened
The McDonald brothers, Richard and Maurice "Mac" McDonald, launched their burger restaurant in the 1940s. It had a simple menu, which allowed the brothers to keep costs low and quality high, and ...
The Company Profile of Mcdonald's: [Essay Example], 1990 words
In 1955, Ray Kroc founded the McDonald's Corporation and opened the first restaurant in Des Plaines, Illinois. In 1961, he bought out the McDonald brothers And the rest, as they say, is history. McDonald's grew into the largest restaurant organization in the world. Today, there are more than 34,000 McDonald's restaurants serving 69 million ...
Essay Sample about McDonald's
McDonald's has a strategic plan that has been known as a 'plan to win'. The company's project is not to be known as the largest world's fast food restaurant chain. The company instead aims at being the very best fast food restaurant chain. In order to achieve this vision, McDonald's has continued to use what is known as the five P's ...
History of Mcdonalds Free Essay Example
Mcdonald is the world famous fast food restaurant. The idea of mcdonald's was introduced by two brothers Mac (Maurice) and Dick (Richard) Mcdonald in California. their father Patrick Mcdonald in 1937 was having a hot dog cottage called as Airdrome restaurant near the airport. In 1940 the restaurant was renamed as Mcdonald's Famous Barbeque.
The Background And History Of Mcdonalds Marketing Essay
1.1 Background of Research. McDonald's is conceived as one of the world's leading fast food chain that has accommodated the lives of people daily. This burger brand was started by two brothers known as Dick and Mac Donald in 1940 when their first McDonald's restaurant was opened in San Bernardino, California, United States.
McDonald's and It's Critics: 1973- 2009 Essay (Critical Writing)
The research includes the history of McDonald's Company from its humble birth in California to its current worldwide acceptance as the best seller in the food and beverage market segment. We will write a custom essay on your topica custom Critical Writing on McDonald's and It's Critics: 1973- 2009. 808 writers online.
History of McDonald's Essay Example
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Women's History Month Feature: Danville McDonald's Owner Abby Tamme
As Women's History Month is celebrated around the United States during the month of March, the McDonald's system is proud to count many outstanding female employees, franchisees and suppliers among its leaders. In the U.S., women own and operate 30 percent of all McDonald's restaurants. One of those restaurants is in Danville. Abby Tamme is […]
Opinion
Guest Essay. The Long, Strange History of 'Manifesting' ... To understand today's manifesting culture and what it means, we need to look deeper into history — beyond the 21st century and ...
Opinion
Mr. Lowenstein is the author of "Ways and Means: Lincoln and His Cabinet and the Financing of the Civil War." Waving the flag as he heads into election season, President Biden is opposing the ...

How McDonald’s Beat Its Early Competition and Became an Icon of Fast Food

The Food That Built America

The first McDonald's started slow but caught on fast

McDonald's grew thanks to its 'Speedee Service System'

McDonald's begins to franchise

Ray Kroc becomes the owner of the company

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McDonald's: a brief history in 15 facts

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The Secret History Of The First McDonald's

The first McDonald's food was cooked in a movie theater

The first McDonald's was a hot dog business

The brother's Airdome restaurant became McDonald's Bar-B-Q

The barbeque restaurant closed to make way for a burger operation

McDonald's only hired men in the beginning

The first McDonald's had a small menu

The re-imagined McDonald's restaurant almost failed

The McDonald brothers began using the first location to sell their model

McDonald's Speedee Service System provided the foundation for fast food service

There was a mascot before Ronald

The Golden Arches were designed to be a roadside billboard

The first CEO sold milkshake machines to the original McDonald's

Ray Kroc opened the second, "First McDonalds"

The original McDonald's is still there as a museum

The real first McDonald's was a source of pain for Kroc

The Story of the McDonald’s

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Photos show what it was really like to eat at McDonald's in the 1950s

This is what the very first McDonald's franchise restaurant looked like.

Though the McDonald's is no longer in operation, the site was turned into a museum to commemorate what it was like to visit the restaurant in 1955.

Before drive-thru windows and delivery apps were commonplace at fast-food chains, McDonald's customers would drive into the parking lot and place their orders at the counter.

The Speedee Service System that made McDonald's successful was originally based on Henry Ford's assembly-line production of automobiles.

The original menu only had nine items on it.

When customers placed their orders at the counter, a server would write them down on a ticket like this one.

Unlike other fast-food restaurants that made their burgers to order, all McDonald's burgers were made the same way and placed under a heat vent ready to serve.

When McDonald's first opened, its fries looked and tasted pretty similar to what you'll get today.

If you stopped by a McDonald's in 1955, you'd definitely want to pick up one of the chain's Triple Thick Milkshakes, made in what was called a Multimixer.

Back in 1955, there were no dining rooms or drive-thrus, but McDonald's thrived on its drive-up model.

The Company Profile of Mcdonald's

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McDonald's Sample Essay

Introduction

Organization

Controlling

McDonald’s and It’s Critics: 1973- 2009 Essay (Critical Writing)

Opportunities

History of McDonald’s Essay Example

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Women’s History Month Feature: Danville McDonald’s Owner Abby Tamme

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