Topics: McDonald's, Hamburger, Fast food restaurant Pages: 15 (4755 words) Published: March 13, 2011

Group 8:



Overview of Mc Donald’s

1. History

2. Operation & management

3. Situation


1. Value chain

2. 4P strategies

3. SWOT analysis

4. Our suggestion opinions




Overview of Mc Donald’s

1. History

Early history
In 1937, Patrick McDonald opened "The Airdrome" restaurant at the Monrovia Airport in Monrovia, California. Hamburgers were ten cents, and all-you-can-drink orange juice was five cents. In 1940 his two sons, Maurice and Richard ("Mac" and "Dick"), moved the entire building 40 miles (64 km) to the corner of 14th and E Streets in San Bernardino, California. The restaurant was renamed "McDonald's".

In 1948, Mac and Dick McDonald introduced the "Speedee Service System", which established the principles of the modern fast-food restaurant. In 1954, Ray Kroc, a seller of Multimixer milkshake machines, learned that the McDonald brothers were using eight of his high-tech Multimixers in their San Bernardino restaurant. His curiosity was piqued, and he went to San Bernardino to take a look at the McDonalds' restaurant.

The McDonald brothers had been in the restaurant business since 1937. In 1948, they closed down a successful carhop drive-in to establish the streamlined operation Ray Kroc saw in 1954.

Phenomenal growth in the 1960s and 1970s

In 1960, the McDonald's advertising campaign "Look for the Golden Arches" gave sales a big boost. Kroc believed that advertising was an investment that would in the end come back many times over, and advertising has always played a key role in the development of the McDonald's Corporation. Indeed, McDonald's ads have been some of the most identifiable over the years. 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 with particular appeal to children.

In the early 1960s, McDonald's really began to take off. The growth in U.S. automobile use that came with suburbanization contributed heavily to McDonald's success. In 1961 Kroc bought out the McDonald brothers for $2.7 million, aiming at making McDonald's the number one fast-food chain in the country.

Surviving the 1980s "Burger Wars"

In the late 1970s, competition from other hamburger chains such as Burger King and Wendy's began to intensify. Experts believed that the fast-food industry had gotten as big as it ever would, so the companies began to battle fiercely for market share. A period of aggressive advertising campaigns and price slashing in the early 1980s became known as the "burger wars." Burger King suggested that customers "have it their way"; Wendy's offered itself as the "fresh alternative" and asked of other restaurants, "Where's the beef?" But McDonald's sales and market share continued to grow.

During the 1980s, McDonald's further diversified its menu to suit changing consumer tastes. The company introduced the McChicken in 1980. It proved to be a sales disappointment and was replaced with the highly successful Chicken McNuggets a year later. Chicken McNuggets were introduced in June 1980, and by the end of 1983, McDonald's was the second largest retailer of chicken in the world. In 1985, ready-to-eat salads were introduced to lure more health-conscious consumers. The 1980s were the fastest-paced decade yet. Efficiency, combined with an expanded menu, continued to draw customers. McDonald's, already entrenched in the suburbs, began to focus on urban centers and introduced new architectural styles. Although McDonald's restaurants no longer looked identical, the company made sure food quality and service remained constant.

1990s: Growing pains

McRecycle USA began in 1990 and included a commitment...
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