McDonald’s SWOT Analysis
In 1955, Ray Kroc opened the first McDonald’s in Des Plaines, IL. The first day’s sales were $366.12. $366.12 in 1955 had the same buying power as $3,148.37 in 2013. (DollarTimes.com). IN 1956, Kroc hires a gentleman by the name of Fred Turner who would soon become the head of operations. In the year 1961, McDonald’s Hamburger University opened in Elk Grove Village, IL. Since its inception, training at Hamburger University has emphasized consistent restaurant operations procedures, service, quality and cleanliness. It has become the company’s center of excellence for McDonald’s operations training and leadership development.
In 1961, Fred Turner, McDonald’s former senior chairman and Ray Kroc’s first grillman, founded Hamburger University in the basement of a McDonald’s restaurant in Elk Grove Village, Illinois. February 24, 1961, Hamburger University's first class of 15 students graduated. Today, more than 5,000 students attend Hamburger University each year Since 1961, more than 80,000 restaurant managers, mid-managers and owner/operators have graduated from this facility At McDonald’s, our training mission is to be the best talent developer of people with the most committed individuals to Quality, Service, Cleanliness and Value (QSC&V) in the world. Our strong commitment to the training and development of our People has resulted in many “firsts” and honors, including being… ·
The first restaurant company to develop a global training center ·
The only active QSR currently to receive college credit recommendations from the American Council on Education (ACE), the United States’ oldest and most recognized unifying body for higher education ·
Continually recognized for excellence in training
Our founder Ray Kroc once said, “If we are going to go anywhere, we’ve got to have talent. And, I’m going to put my money in talent.” Hamburger University continues to promote that philosophy every day. (aboutMcDonalds.com) By 1965 there were over 700 McDonald’s restaurants within the United States.
SWOT for the Company McDonalds
Brand recognition|Slow product development|More healthy food choices|Trends of healthier foods| Children Targeting|High rate for employee turnover|Change atmosphere in store |Saturated market| Largest fast food market share in the world|Unhappy franchisees|Expand drink menu|Economic downturn| Foreign markets|Varying quality in different stores|Delivery (similar to pizza places)|Changing consumer tastes|
Perhaps one of the biggest strengths that McDonald’s has is that it is the largest fast food market share in the world. McDonald’s is the largest fast food restaurant chain in terms of total world sales (8%). It is the second largest outlet operator with more than 34,000 outlets, serving 69 million consumers every day in 119 countries. McDonald’s company brand is the most recognized brand in fast food industry and is valued at $40 billion. McDonald’s is also famous by the Ronald McDonald clown. Many children find the clown fun and inviting. This gives them the advantage to other fast food companies that may not have a mascot. One thing that help McDonald’s greatly when being the largest fast food market share in the world is that McDonald’s spends on advertising more than the next 4 fast food restaurant chains combined. The fast food chain is operating in many diverse cultures where tastes in food are extremely different than those of US or European consumers. Thus ability to adapt to local tastes is one of McDonald’s strengths. Being able to satisfy the taste buds of not only an American but also someone in China or Canada, not everyone has the same taste. McDonald’s has also managed to partner themselves with other high quality and well recognized companies. McDonald’s offers only most popular brands in its restaurants, such as: Coca Cola, Dannon Yogurt, Heinz ketchup and others. By offering the high...
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