Research on Innovativeness About Mcdonald’s
One of the ways McDonald’s has avoided going into decline is through the development of new, innovative ideas, and products. According to the magazine Fortune 's America’s Most Admired Companies, McDonald’s Corporation was ranked 318 in innovativeness, with a score 5.68 (Fortune Homepage, April 23, 1999). Kroc was a remarkable innovator. “He was always looking for new things that would increase the business,” says Herb Peterson, the McDonald’s operator (Branch, 1999, p. 133). Throughout the years, McDonald’s came up with numerous innovative ideas and products, which includes reconstruction, innovation on menu, adaptation of local tastes around the world, the introduction of Happy Meal Program, and so on (Branch, 1999).
McDonald’s continuous innovation on remodeling has played an important role in bringing up its sales and profitability. Today, the store design is different from it was in the 1960s. In 1968, McDonald’s evolved from stands with no seating into fast-food restaurants with attractive indoor seating areas (Kotler, et al., 1996). Then, McDonald’s began adopting the innovation of offering sales via a drive-through window for its own units. Finally, the most recent development is the “soft playground,” in which “the child is free to jump, crawl, and play ball in an enclosed, safe areas that is…childproof” (Emerson, 1990, p. 97).
In order to stimulate sagging sales, McDonald’s has introduced a number of new menu items. McDonald’s added breakfast, salads, desserts, and chicken sandwiches in its effort to attract new users and increase use (Kotler, et al., 1996). In 1963, the Filet-O-Fish was created by a franchisee after he realized that Catholics abstain from red meat on Fridays (Love, 1968). In 1968, the Big Mac sandwich was introduced, which sales accounted for 19% of all McDonald’s sales by the very next year (Love, 1986). In 1982, the introduction of Chicken McNuggets led McDonald’s become the second largest purveyor of chicken (Love,
McDonald’s continuous innovation on remodeling has played an important role in bringing up its sales and profitability. Today, the store design is different from it was in the 1960s. In 1968, McDonald’s evolved from stands with no seating into fast-food restaurants with attractive indoor seating areas (Kotler, et al., 1996). Then, McDonald’s began adopting the innovation of offering sales via a drive-through window for its own units. Finally, the most recent development is the “soft playground,” in which “the child is free to jump, crawl, and play ball in an enclosed, safe areas that is…childproof” (Emerson, 1990, p. 97).
In order to stimulate sagging sales, McDonald’s has introduced a number of new menu items. McDonald’s added breakfast, salads, desserts, and chicken sandwiches in its effort to attract new users and increase use (Kotler, et al., 1996). In 1963, the Filet-O-Fish was created by a franchisee after he realized that Catholics abstain from red meat on Fridays (Love, 1968). In 1968, the Big Mac sandwich was introduced, which sales accounted for 19% of all McDonald’s sales by the very next year (Love, 1986). In 1982, the introduction of Chicken McNuggets led McDonald’s become the second largest purveyor of chicken (Love,
Bibliography: Fortune Homepage, America’s Most Admired Companies, http://www.pathfinder.com/fortune/mostadmired/csnap21-1.html, April 23, 1999. Branch, Shelly, The Brand Builders, Fortune, May 10, 1999, p. 133. Kotler, Philip, Bowen, John, and Makens, James, Marketing for Hospitality and Tourism, Prentice Hall, 1996 Emerson, Robert L., The New Economics of Fast Food, Van Nostrand Reinhold, 1990. Love, John F., McDonald’s Behind the Arches, Bantam Books, 1986. Leonhardt, David, Getting Off Their McButts, Business Week, February 22, 1999, p. 84. Brooks, Steve, Jack Green berg: McDonald’s, Restaurant Business, March 15, 1999, p.30. Zikmund, William G., Marketing, Sixth Edition, South-Western College Publishing, 1999. Barboza, David, Pluralism Under Golden Arches, The New York Times, February 12, 1999. McDonald’s Corporation Homepage, http://www.mcdonalds.com/whatsnew/pressrelease/Press_Release03231999.html, April 23, 1999. Hamstra, Mark, Tom Ryan, Nation’s Restaurant News, January 1999, p