Overview McDonald’s (McD) operates over 33,000 restaurants worldwide, and employs more than 1.5 million people. In Canada, around 1,400 McD restaurants are stationed with more than 77,000 people employed (Appendix A). In 1954, as a 52-year-old salesman, Ray Kroc came across the small hamburger stand of Dick and Mac McDonald in San Bernardino, California (McDonald’s). He immediately saw market potential with fast paced purchasing of hamburgers and french fries. Ray Kroc became Dick and Mac McDonald’s franchising agent and together they formed a company in 1955 under the name McD System, Inc. This began the growth of the fast food giant we know today, McD. McD primarily sells hamburgers, cheeseburgers, chicken products, french fries, breakfast items, soft drinks, milkshakes, and desserts. In response to obesity trends in Western nations and criticism over the healthiness of its products, the company has modified its menu to include healthier alternatives such as salads, wraps, and fruits (McDonald’s).
The Fast food industry is somewhat fragmented. The seven major competitors only account for 47% of total revenues; McD has 13% of The Fast Food Restaurant industry. The Quick Service Restaurant and Fast Food Hamburger Restaurant category are extremely competitive because each Fast Food Hamburger Restaurant offers similar menus and prices (Appendix B).
Analysis Desired Image/Strategy
McD desired image is that of “a happy place.” Although the company continues to achieve this image it has changed its vision from cheap and convenient to dedicating itself to quality, service, cleanliness, and a commitment to treating all customers with respect (Kiddon and Light). In regards to corporate social responsibility McD strives to achieve their values each day and improve their environmental and social performances in an effort to obtain to a sustainable future (McDonald’s). In order to achieve their desired image and