McDonalds Corporation Essay

McDonalds Corporation is the world’s number 1 fast food chain, Richard and Maurice McDonald started this business with a restaurant in San Bernardino California in 1940. Now a days McDonalds serves more than 56 million customers every day. There are more than 30,000 restaurants operated by McDonalds worldwide in which more than 80% are operated as a franchise and less than 20% are owned by company. McDonald’s main selling products are hamburgers, cheeseburgers, double cheeseburgers, big Mac burgers, quarter pond burgers, tasty burgers and mc flurry’s Company profile McDonalds is the words largest fast food corporation, serving more than 57 million people in 119 countries daily with more than 31,000 restaurants worldwide in which 6,899 are owned by company and 20,499 are operated as franchise and 3,960 are operated by affiliates.Andrew j. McKenna is the chairman of McDonalds Corporation since April 2004, Aprill Harrell Perrine president of blur cross and blue shield of Florida, Jim Dalton vice president of the Dalton agency, Ryan Schwartz the treasurer of Zurich insurances,inc. bill van zante the secretary of McDonalds.â€Å"The corporation revenues come from the rent, royalties and fees paid by franchises, McDonalds revenues grew 27% over 3 years ending in 2007 22.8 billion and 9% growth in operating income to 3.9 billion†. History of Mc. Donalds ‘I m Loving it’ is a tagline known to every segment of the market, from kids and youngsters to the elderly people. McDonalds is a global foodservice industry, which began its operations in the 1940’s. The concept of McDonalds was introduced by Dick and Maurice McDonald, by opening a ‘hamburger stall’ in San Bernardino, California. They introduced an idea of selling their food cheaper than competitors by persuading customers to go to a counter to order their food. This concept helped in faster turnaround of the customers. This innovation proved successful and popular among the customers. They focused on burger cooking as a production line. The staff of McDonalds were committed to one task at a time. When Mr. Ray Kroc came across a McDonalds burger, he had never seen so many people served so quickly. He was quite impressed by the speed of service that they used in catering their customers. Kroc suggested that open more outlets of their stall, but they refused as they were quite busy with their own store and were not in a position to open any other store. Kroc volunteered to run a new outlet himself, by paying them royalties for using their concept of business. The McDonald brothers agreed and a new McDonalds retail outlet was opened, which was a franchisee. Kroc was a person with aggressive and risk taking attitude. He realized that small things were often valued more by customers than some of other things. He introduced a concept of Cleanliness in his store. He termed cleanliness not only a symbol of hygiene but it also showed its customers that the business cared about details. He started growing his business and started giving franchises to other people. With the help of Ted Turner, Kroc visioned that the key success of McDonald’s expansion was to offer franchises. The major domestic growth of McDonald’s in USA began in 1960’s, as there was a demand of cheap takeaway food. Through the franchise concept, McDonald’s made a move toward worldwide success. Today the Company operates in more than 117 countries worldwide, serving more than 50 million customers per day. The company’s retail outlets are either owned by the company or by franchisees. The company focuses on delivering high quality and value to its customers through its services, product range and constant quality check of its products The Success Factors How did the chain grow from a single restaurant into the massive corporation it is today? There are three characteristics that stand out about the success of McDonald’s: consistency, innovation and resiliency. Consistency It doesn’t matter if you’re visiting a McDonald’s in South Africa or Zimbabwe, you’re going to have a similar experience wherever you are. This highlights Ray Kroc’s vision for McDonald’s from the beginning. â€Å"Quality, Service, Cleanliness and Value† was Kroc’s motto. His belief in this motto was so strong he went on to found a training school. Consistency, of course, is the key factor in any franchise Customers know what to expect and can take comfort in that knowledge when making a decision on where to eat. McDonald’s success came from customers expectations of producing food at a quick pace. Innovation You can tweak your product without causing disruptions, and potentially better serve your customers. Innovation comes from responsiveness to customers needs or wants. For example, in 1975 a group of potential McDonald’s customers had a problem: at that time, soldiers in a certain places weren’t allowed to get out of their cars while wearing their uniforms. After learning this problem, McDonald’s came up with a solution: add a drive-thru. Resiliency Many of the challenges McDonald’s has faced over the years are related to health concerns, particularly related to children. In response to these concerns, McDonald’s formed the Global Advisory Council (GAC) in 2004. The GAC is an international team of independent experts assembled by McDonald’s to provide us with professional guidance in the areas of nutrition and children’s well-being. In spite of these controversies, McDonald’s ranked in the top 10 overall, and number one in food services, in CNNMoney.com’s survey of the World’s Most Admired Companies for 2011. Mission & Values McDonald’s brand mission is to be the customers favourite place, way to eat and drink. Their worldwide operations are aligned around a global strategy called the Plan to Win, that centres on an amazing customer experience – People, Products, Place, Price and Promotion. They are committed to continuously improving their operations and enhancing their customers experience. McDonald’s Values †¢They place the customer experience at the core of all that they do. †¢They are committed to their people. †¢They believe in the McDonald’s System. †¢They operate their business ethically. †¢They give back to their communities. †¢They grow their business profitably. †¢They strive continually to improve. Sustainability From the start, they’ve been committed to doing the right thing. Their sustainability efforts ensure that their business practices and policies continue their rich heritage of making a positive impact on society. McDonald’s footprint is significant. So too are the opportunities and expectations. With approximately 1.8 million employees working for McDonald’s and over 5,000 franchisees, thousands of committed suppliers and the more than 69 million customers who visit us every single day in 119 countries, we can use our scale, scope and talent to make a positive difference in the world. Together for good.