An Analysis of McDonalds

Topics: Fast food, Fast food restaurant, McDonald's Pages: 22 (6935 words) Published: January 30, 2014

An Analysis of McDonald's

Table of Contents
Executive Summary3
I. Background and History of McDonald's4
II. Analysis of McDonald's5
The industry environmental
External Environmental7
SWOT Analysis10
Company performance over time– financial outlook – stock analysis12 Strategy/Five Forces Framework15
III. Issues involving McDonald's20
Social Responsibility24

Executive Summary

This project analyzes the greatest and most successful fast-food restaurant in the world, McDonald's. The success of McDonald's is not by chance. Since its humble beginnings, McDonald's has taken a number of strategic steps over the years to build its empire not only in America, but also globally. In a way, McDonald's has been a key factor in not only the rise of the fast-food industry as a whole, but also has played a key factor in American relations around the world. For example, it has been said that countries that have McDonald's will never go to war with the United States. The analysis includes a deeper look into the business side of McDonald's, a discussion on the social and ethical issues that McDonald's holds, and just how this business has played a role in both business, and peace relations with other countries.

I. Background and History of McDonald's
The birth of McDonald's began when Patrick McDonald opened “The Airdrome” in 1937. This restaurant was in Monrovia, California. After 3years, in 1940 his two sons Mac and Dick (Maurice and Richard), changed things up a bit, relocated, and open the restaurant with new name “McDonald’s Bar-B-Que Restaurant” in San Bernardino, California. It was a drive-in with a large menu and car hop service.

By 1960, McDonald's announced that it had sold 100 Million of hamburgers in more than 100 restaurants in America, and by 1963 there were up words of 500 restaurants around the country. On the 10th Anniversary (1965) of McDonald’s, it issues the first public stock selling for $22.50 per share. In 1967 McDonald’s took a giant leap into the global market in 1967 when it spreads the business internationally. Starting in Canada, Puerto Rico, Japan then in Spain, Denmark, and Philippines. By the end of 1983, McDonald’s had 7,778 restaurants located in 32 countries all around the world. Currently, they have opened 119 countries around the world.

Jim Skinner is the current Vice Chairman and CEO of McDonald's. His story and experiences is representative of the quintessential American Dream; a rags to riches story, like the story of McDonald's, itself. He began working at McDonald's as a restaurant manager trainee in Carpentersville, Illinois in 1971 after serving ten years in the Navy. He worked his way up in the company and was named CEO of McDonald's Corp. in 2004...and he has never even graduated from college. Throughout, Skinner has held numerous leadership positions.

McDonald’s has worked its way up to being the most successful fast food restaurant in history. McDonald's boasts that the reason for their success is their customer-focused “Plan to Win” and their financial discipline. The goal of the Plan to Win is to have a common framework for their global business, and at the same time, provide for successful local adaptation.  They call this Plan to Win the “System.” The System is made up of initiatives surrounding the five elements of their Plan to Win – People, Products, Place, Price and Promotion. The System, plus financial discipline, is why McDonald's has been successful even during times of worldwide economic troubles. McDonald's has always provided strong results for the customers, the employees and the...

References: Computing, 2004, McDonald 's Offers Customers a Bigger Taste of Technology,
Day Software, 2012, World 's Most Trusted Brands Use Adobe Enterprise Solutions
Tseng, 2011, Three Challenges to McDonald 's Growth,
Israel, 2011, McDonald’s Menu Items From Around The World,
James, 2009, McDonald 's Abroad,,8599,1932839,00.html
Yacoubou, 2011, McDonald 's New Fruit & Maple Oatmeal Can Be Ordered without the Cream,
Indexmundi, 2012, Barbados Demographics,
Indexmundi, 2012, Jamaica Demographics,
Levy, 2005, Why McDonald 's Failed,
MoneyMax, 2012, 2 Smashing Reasons to Resurrect McDonalds in Jamaica,
Donlon, J.P. (May/June 2009). "McCEO". Chief Executive (Montvale, NJ: Butler Publishing, Inc.) (240): 49–54. ISSN 0160-4724
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