Preview

Overview of Mcdonald's

Good Essays
Open Document
Open Document
1174 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Overview of Mcdonald's
Overview

McDonald’s was founded in 1937, by two brothers, Dick and Maurice McDonald. The first store the brothers owned was built in Pasadena, California and was originally a one window drive-in, serving only hot dogs and milkshakes. The success of this establishment led them to open their second restaurant in San Bernardino, California, where they actually employed twenty or more car hops and other staff with a much broader menu. These restaurants were incredibly successful and by 1948 the brothers had made more money then they had ever dreamed. With their newly found success, the brothers decided to overhaul their operations. After analyzing their operations they noticed that hamburgers were the majority of their sales so when developing their new strategy they decided to cut their menu items to offer only nine items, set up the kitchen to work as an assembly line and implement a self-service restaurant without car hops. They closed their doors for three months to elaborate on their new strategy of “Speedy Service System”. Initially the new strategy was not well received, but by 1952 the brothers we successful again and had signed their first franchise. The brothers were very successful in the fast food industry from its inception, but they lacked many skills in developing franchises. They did however realize their inadequacy in this area and eventually hired Ray Kroc to become their franchise agent, though not without a stringent contract. Eventually, the McDonald brothers were ultimately squeezed out of the business, and were bought out by Kroc for $2.7 million. In 1961 McDonald’s senior management were able to secure further funding not by just selling the franchises, but also by their real estate operations. McDonald’s would buy land and lease it to their franchisees thus not only making money on the operations end but also on the real estate end. With the brothers out of the existing company and the increasing assets, Ray Kroc and his

You May Also Find These Documents Helpful

  • Powerful Essays

    McDonald's was started as a drive -in restaurant by two brothers, Richard and Maurice McDonald in California, US in the year 1937. The business which was generating $200,000 per annum in the 1940's,got a further boosts with the emergence of a revolutionary new concept called ''self-service''. The brothers designed their kitchen for mass production with assembly line procedure.…

    • 1081 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Mcdonald's Past and Present

    • 4598 Words
    • 19 Pages

    The McDonalds had been in the restaurant business since the 1930s. In 1948 they closed down a successful carhop drive-in to establish the streamlined operation Ray Kroc saw in 1954. The menu was simple: hamburgers, cheeseburgers, french fries, shakes, soft drinks, and apple pie. The carhops were eliminated to make McDonald's a self-serve operation, and…

    • 4598 Words
    • 19 Pages
    Powerful Essays
  • Powerful Essays

    Mcdonalds Case Study

    • 2283 Words
    • 10 Pages

    Kroc’s offered his services and the first McDonalds open 1955 in Chicago and by 1965 there were more than 700 sites across the United States. It wasn’t long before McDonalds caught on in several countries and today forty seven million people are being served every day and sales are at a hefty $17 billion.…

    • 2283 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    History of Mcdonald

    • 6300 Words
    • 26 Pages

    McDonald’s is a company which has a colorful history and developed the culture associated with the Fast Food Chain today. In 1937, the McDonald’s brother Richard and Maurice opened the first McDonald’s restaurants in America; it was a freestanding business that offered until then an unthought-of concept. The main items they then sold were beef or pork burgers, fries and drinks. Their restaurant were set up differently to the restaurants of those times, with open kitchens the customers could see right through, and counters with many operational cash registers. Under a high degree of customer satisfactory contributed for business expansion, McDonald today has over than 30,000 restaurants over than 100 countries in the world and it has maintained the top position in the Fast Food Industry for the past 50 years.…

    • 6300 Words
    • 26 Pages
    Powerful Essays
  • Better Essays

    The McDonald brothers moved from New Hampshire during the Great Depression to try and make a living in southern California. They saved up money working as set builders on a movie lot and bought a movie theater. The theater did not do very well and they bought a small drive in restaurant trying to cash in on the craze. After limited success they grew tired of the constant problems of a restaurant and in 1948 they closed it and installed larger grills and applied the idea of an assembly line to the kitchen. This is where the McDonalds, the popular culture giant, we all know today was born.…

    • 1490 Words
    • 6 Pages
    Better Essays
  • Better Essays

    Mcdonalds History

    • 1239 Words
    • 5 Pages

    Our company that we chose to research is McDonald’s; whose full company name is McDonald’s Corporation. McDonald’s is the world 's largest chain of hamburger fast food restaurants, worldwide, serving around 68 million customers daily in 119 countries and counting. McDonalds was founded May 14, 1940 in San Bernardino, California by brothers Richard and Maurice McDonald. The focus of McDonald’s at the time was their “Speedee Service System", they did this by introducing an assembly line style kitchen, which speed and ensured maximum efficiency. Then in 1954, 52 year old Ray Kroc, milkshake mixer sales man, hears that a restaurant is using 8 mixers and takes a trip to visit them. He becomes fascinated by the restaurant that he becomes a franchisee, and then in 1961 he bought the company from the McDonald’s brothers for $2.7 million. Now McDonald’s is a multi-billion dollar company and is one of the most recognized brands.…

    • 1239 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    that is mcdonald is very report for me Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. A company that engages in global marketing focuses resources on global market opportunities and threats. Successful global marketers such as Nestle, Coca-Cola, and Honda use familiar marketing mix elements – the four Ps – to create global marketing programs. Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. A company that engages in global marketing focuses resources on global market opportunities and threats. Successful global marketers such as Nestle, Coca-Cola, and Honda use familiar marketing mix elements – the four Ps – to create global marketing programs. Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. A company that engages in global marketing focuses resources on global market opportunities and threats. Successful global marketers such as Nestle, Coca-Cola, and Honda use familiar marketing mix elements – the four Ps – to create global marketing programs. Essay is too shortEssay is too shortEssay is too shortEssay is too shortEssay is too shortEssay is too shortEssay is too shortEssay is too shortEssay is too shortEssay is too shortEssay is too shortEssay is too shortEssay is too shortEssay is too shortEssay is too shortEssay is too shortEssay is too shortEssay is too shortEssay is too shortEssay is too shortEssay is too shortEssay is too shortEssay is too shortEssay is too shortEssay is too shortEssay is too shortEssay is too shortEssay is too…

    • 813 Words
    • 4 Pages
    Satisfactory Essays
  • Powerful Essays

    Telstra and Mcdonalds

    • 12932 Words
    • 52 Pages

    McDonald’s Corporation: A strategic approach to global growth McDonald’s Corporation (McDonald’s) is the world’s leading global foodservice retailer with more than 33 500 restaurants serving nearly 68 million people in 119 countries each day (McDonald’s 2012a). In 2011 the company generated USD 27 billion in revenue from its global operations and USD 8.5 billion of operating profit. Headquartered in the United States, McDonald’s Bar-B-Q restaurant was opened in California in 1940 by brothers Richard (Dick) and Maurice (Mac) McDonald as a typical drive-in featuring a large menu and car hop service (where customers stay in their car and are served their food). In 1948 the brothers closed the business for three months of renovations and reorganised the business as a hamburger restaurant, using production line principles and featuring a simple menu of nine items including the staple 15 cent hamburger, cheeseburger, soft drinks, milk, coffee, potato chips and a slice of pie. In 1954 Ray Kroc, a salesman for Prince Castle Multi-Mixer, visited the restaurant intending to sell the brothers some items. Kroc was fascinated by the operations and learned that the brothers were looking for a franchising agent to expand their restaurant chain nationally. Kroc joined the company in 1955 as National Franchising Agent, and opened his first McDonald’s in Illinois. He subsequently purchased the chain from the McDonald brothers. McDonald’s Corporation was created in 1965 when the company had its first public stock offering on the New York Stock Exchange at USD 22.50 per share (McDonald’s 2012b). The famous ‘golden arches’ of McDonald’s were created in 1969 when the company’s logo underwent a major change, and remodelling of the restaurants was also undertaken to re-brand the…

    • 12932 Words
    • 52 Pages
    Powerful Essays
  • Good Essays

    Mcdonalds History

    • 1236 Words
    • 5 Pages

    made a partner of the restaurants and opened up the first Mcdonalds in Des Plaines, Illinois. Finally…

    • 1236 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Jack Greenberg recognized the difficult task the company faced in trying for sales to grow as the market shares and profit as well. He also recognized that the strengths of the competitors are by taking advantage quickly in customer preferences and tastes.…

    • 530 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    McDonald s Case study

    • 893 Words
    • 9 Pages

    Case Study on McDonald's Environmental Strategy Bipul Chandra Saha Brajesh Kumar Dhirendra Kumar G.B.Chandramouli G.V.Ramana Overview on McDonald’s History  Started business in 1948 at California with single drive–in Restaurant  Owned $13 billion of the $ 93 billion fast food industry in 1991  Operation of 12400 restaurants in 59 country till 1991 and serving 18 million people per day in US only  Second best known global brand  Known brand for formulating and implementing its strategy for being market leader Sales Data for McDonald’s Sales in million $ 25000 20000 15000 Sales in million $ Axis Title 10000 5000 0 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 McDonald’s- Business Strategy  To enhance the message that McDonald’s is value driven on behalf of its customers by emphasizing their profitable value-meal combinations  To provide exceptional customer care by exceeding customer expectations, including finding ways to add personal touches that go beyond convenient locations, quick service, clean restaurants and quality products  To remain an efficient producer while maintaining quality by looking to innovations in food processing, construction and design operations that will increase global profits McDonald’s founding principles Quality, Service, Cleanliness & Value ( Q.S.C.&V.) Involvement in various community projects like education, healthcare, medical research and rehabilitation. Environmental Concern in General  Environmental concerns have become important in recent years, with the wider impact of doing business increasingly recognized by consumers as a factor in their buyer behaviour.…

    • 893 Words
    • 9 Pages
    Good Essays
  • Good Essays

    2. The Story of Dick and Maurice McDonald. Effective restaurant owners who understood how to run a business efficiently, but who could not translate that into successful franchising due to the fact they were not leaders. The McDonald brothers soon teamed with a true leader – Ray Kroc who worked tirelessly, long hours and at times with no pay to open hundreds of McDonald franchises. In 1961 he bought the exclusive rights to McDonald’s from Dick and Maurice McDonald for $2.7 million. Today there are more than 21,000 restaurants in at least 100 countries.…

    • 2752 Words
    • 8 Pages
    Good Essays
  • Good Essays

    Mcdonalds Case Analysis

    • 1511 Words
    • 7 Pages

    FACTS McDonald¶s roots go back to the early 1940s when two brothers opened a burger restaurant that relied on standardized preparation to maintain quality the Speed Service System. So impressed was Ray Kroc with the brothers¶ approach that he became their national franchise agent, relying on the company¶s proven operating system to maintain quality and consistency. Over the next few decades, McDonald¶s used controlled experimentation to maintain the McDonald¶s experience, all the while expanding the menu to appeal to a broader range of consumers. For example, in June 1976, McDonald¶s introduced a breakfast menu as a way to more fully utilize the physical plant. In 1980, the company rolled out Chicken McNuggets. ««Continued…

    • 1511 Words
    • 7 Pages
    Good Essays
  • Best Essays

    Introduction of Mcdonalds

    • 2233 Words
    • 9 Pages

    McDonald’s philosophy ‘one world, one burger’ has a vast significance in delivering performance. The key ingredients in achieving productivity, such as having a systematic work process, collaboration and information sharing among team mates and suppliers, will be the main focuses of generating good quality, perfect customer services, and affordable prices in customer deliverance.…

    • 2233 Words
    • 9 Pages
    Best Essays
  • Good Essays

    The long journey of the burger brand started in 1940, when two brothers, Dick and Mac McDonald opened the first McDonalds restaurant in San Bernardino, California. Initially, they owned a hotdog stand, but after establishing the restaurant they served around 25 items, which were mostly barbequed. It became a popular and profitable teen hangout. In 1948, the brothers closed and reopened the restaurant to sell only hamburgers, milkshakes and French fries. Nowadays, McDonald's are the world's leading food service retailer, as they serves some of the world's favorite foods such as Big Mac, Quarter Pounder, Chicken McNuggets, Egg McMuffin, cheese burgers, chicken burgers, french fries, soft drinks, shakes, and desserts. In response to obesity trends in Western nations and in the face of criticism over the healthiness of its products, the company has modified its menu to include alternatives considered healthier such as salads, wraps and fruit. There are more than 30,000 restaurants in 118 countries, serving 46 million customers each day. Also, McDonald's is one of the world's most well-known and valuable brands. It holds a leading share in the globally branded quick service restaurant segment of the informal eating-out market in virtually every country in which it does business.…

    • 1601 Words
    • 7 Pages
    Good Essays

Related Topics