Kay Kolalowski, Tyler Laudette and Annette Compo
University of Phoenix
Professor Dr. John Seinrukos
February 24, 2008
Ray Kroc once said he did not know what his company would be selling in 2000 but he knew it would be selling more of it than anyone else. (Kroc, 1978). McDonald’s is the predominant leader in the fast food industry and the corporation continues to grow each day globally. This expansion and seizing the opportunity by using good environment practices has become a pivoting point for the company’s growth financially. The infrastructure in supporting the stores and the continued redevelopment of technology and business techniques is the fuel behind this company’s success.
"Are you green and growing or ripe and rotting?" (Kroc, 1978) Ray Kroc was a very intelligent man but not in the fact that he knew the burger business. Ray Kroc knew the entrepreneur business of making money. Ray Kroc was an entrepreneur not an owner of a hamburger place. Looking over his legacy, he understood the importance of many variables in business. Planning being at the forefront with globalization, technology and then later the understanding and opportunity for environmental scanning. With its Golden Arches planted in almost every corner of the world, McDonald’s Corp. is considered to be one of the premier organizations of global brand expansion. McDonald’s international expansion began in 1967, when its first restaurant was opened in Canada. A few years later, McDonald’s kicked their global expansion into high gear, opening restaurants in the United Kingdom, Japan, Germany and France, to name a few. A majority of McDonald’s restaurants today, approximately 17,000, are located outside of the United States. “Each area of the world has focused on increasing operational excellence, leadership marketing and innovation through a variety of global and regionally specific initiatives, officials say” (Nation’s Restaurant News, 2005). Much of McDonald’s success can be attributed to carefully orchestrated strategic planning and the leadership behind the implementation and execution throughout the organization.” In 2005, McDonald’s introduced a brand revitalization program called “Plan to Win”, that was built around five drivers of exceptional customer experiences: people, products, price, place and promotion” (Nation’s Restaurant News, 2005). This plan has been implemented by McDonald’s restaurants all over the world, but localized to the customers in that specific region. Each country within a McDonald’s 4
specific region has a management team that oversees operations and growth initiatives and is supported by a dedicated corporate team at McDonald’s headquarters in Oak Brook, Ill. “We aim to meet the local needs of people wherever we’re operating” commented Marvin Whaley, president of McDonald’s Asia, Middle East and Africa (Nation’s Restaurant News, 2005).
“The popular advertising theme, “I’m Lovin It”, grew out of that plan. The idea was of being forever young and being our customer’s favorite place and way to eat” (Skinner, 2005). McDonald’s current CEO, Jim Skinner, a 34-year company veteran, is committed to developing talent and leadership with “diversity of thought and diversity of population” (Skinner, 2005). The “Plan to Win” program was the creation of three of McDonald’s chief executives, Jim Skinner, current CEO, Jim Cantalupo. CEO in 2004, and Charlie Bell, company president and chief operating officer. “Cantalupo and Bell shifted the focus to increasing sales at existing stores and improving service. Prior to this, they had focused on growing the business by adding new restaurants. “This shift in strategy and intensified focus on customers has resulted in a surge in profits that paid handsome dividends for shareholders and that system remains in place today” (Skinner, 2005)....