CASE ANALYSIS: McDonald’s “Seniors” Restaurant
Hatol, Louise Nicole
Professor Earl Elizondo
McDonald’s is the world’s largest chain of hamburger fast food restaurants with more than 34,000 local restaurants serving approximately 69 million people in 119 countries each day. The company started in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald. In 1948 they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth.
A McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27 percent over the three years ending in 2007 to $22.8 billion, and 9 percent growth in operating income to $3.9 billion.
McDonald's primarily sells hamburgers, cheeseburgers, chicken, French fries, breakfast items, soft drinks, milkshakes and desserts. In response to changing consumer tastes, the company has expanded its menu to include salads, fish, wraps, smoothies and fruit. Mission
McDonald's brand mission is to be “our customers' favorite place and way to eat. Our worldwide operations are aligned around a global strategy called the Plan to Win, which center on an exceptional customer experience – People, Products, Place, Price and Promotion. We are committed to continuously improving our operations and enhancing our customers' experience.”
Goals and Objectives
o McDonald's is a large corporation, and, therefore, must remain profitable to stay in business. To remain profitable, McDonald's offers quality products at a price that meets its consumers' demands. Ironically, McDonald's has remained profitable, even during global recessions, by offering a cheap alternative to sit-down meals. Quality Service
o McDonald's aims to offer quick, efficient products at a reasonable price. McDonald's strives to expand and increase awareness of nutritious menu items. For example, McDonald's has expanded food and beverages containing fruit and vegetables across the menu, and has increased awareness of fruit, vegetable and dairy options available for children on the menu. Their fast, convenient meals won't result in an unsatisfactory product. Customer Satisfaction
o Customer loyalty is an important objective of McDonald's. Without customer loyalty, there would be a decrease in customers meaning less positive word of mouth from customers to friends and family members. Customer satisfaction involves marketing, as McDonald's identifies the needs and requirements of its consumers in a better way than its competitors. Many consumers choose McDonald's because of its friendly, inviting atmosphere. Restaurants offer comfortable seating, televisions and playgrounds for children. Convenience is also important, as customers want their food produced in a fast, efficient manner.
o McDonald's opened its first restaurant in 1954. As of 2011, McDonald's operates more than 32,000 restaurants serving more than 60 million people in more than 100 countries every day. McDonald's seeks to continually improve its image as a pathway to a career, rather than a provider of "minimum-wage, dead-end, burger flipping jobs." Community Outreach
o McDonald's strives to increase its financial and volunteer support to Ronald McDonald House Charities through...