McDonalds has benefited from several years of strong growth, having nearly $22 billion in sales in 2006. In 2007, the company’s stock rose nearly 22%, sitting at around $54. The move to compete with Starbucks, however, still carries some risk. Some McDonald loyalists say it could slow down service at McDonald's restaurants, taking away from its “fast food” standard. Others may begin to think McDonalds is stepping into a new realm of service, looking to acquire a higher standard of customer, who in return will be looking for a higher quality menu and service.
Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by the eponymous Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth. A McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants.
Changing preferences of consumers | 0.07 | 3 | 0.21 | 12. Competitors’ influence on employee turnover | 0.07 | 2 | 0.14 | Total | 1 | | 2.675 | DESCRIPTION Opportunities: 1. Increase consumption of fast food A major opportunity for McDonald’s is that consumption of fast food has increased and people are demanding this type of food more. So McDonald’s can open its more outlets and can contribute in fulfilling this need gap. That is why it is rated 4 and gets the weight of 9%.
I have a background in construction and land development and whenever we are looking at starting a project there is always someone asking “Where are we going to put the McDonald’s”. You know they are imbedded in our culture when you find two restaurants with blocks of one another on the same street. I believe the momentum started by the introduction of the Big Mac in 1968 has catapulted McDonald’s into a standard for our ever evolving pop culture. Item 2: Item 3: I would pose the question, “Are McDonald’s and the other fast food restaurants in the industry responsible for the obesity problem that is happening in America right now?” Could a court of law find them legally responsible in such a left winged society? Living in such a vain and commercial society affects every aspect of life in America, even our diet.
McDonald’s significant development happened in 1954 when Ray Kroc, at age 52 became the exclusive distributor of a milkshake maker called Multimixer. Upon hearing about the McDonald brothers’ hamburger stand in California which was running eight of his Multimixers at a time, he decided to pack up and pay a visit to see the McDonald brothers. He was amazed on how many people being served so quickly that an idea struck him, by opening several more McDonalds’ outside of California. So he bought the rights to expand the McDonald’s concept and quickly built the restaurant chains and by 1959, there were over 100 restaurants in operation. Sometime in the year 1961 McDonald’s Corporation pioneered the training of its many franchise owners with the opening of Hamburger University, an innovation credited with maintaining manager and franchisee loyalty despite a highly competitive market.
After being sold to a group of investment firms led by TPG Capital in 2002, Burger King revamped rapidly and had a highly successful initial public offering in 2006. At the end of 2010, Burger King had 12,200 locations in 73 countries, 60% of them in the U.S. and 90% are privately owned. While McDonald’s posted gains of more than 40% in 2011, its performance has been lackluster in 2012 so far. The stock has lost close to 5% in 2012 compared to the S&P 500 index, which has gained more than 10%. The news that CEO Jim Skinner will end his tenure in June 2012 has also created some uncertainty about the company’s future.
We are going to present you two international firms which are McDonald’s and Quick. Both are in the restaurant industry and are positioned only in the fast-food sector. We’ve chosen those two companies because of the high reputation they have and the way they are implemented in our consumption patterns. Indeed, since their creation both companies have experienced a rapid development. We’ll try to explain what the key of their success was and how they managed their international expansion.
In order to attract consumers’ attention and to be unique, McDonald’s uses different advertisements adapted to different countries. Accordingly the company respects the characteristics of different regions, cultures and customer behaviors. McDonald’s is an example of a company that considers that entering new markets, with different national cultures, should be followed by certain market adjustment. The product should be suitable to locals. For example, Chinese customers prefer the food with low calories and bearing this in mind McDonald’s constantly brings out products specially adapted to locals and some of those products is impossible to find in other markets.
Following the acquisition there was a renewed focus on international growth, which drove numerous new country entries throughout the 1990s.In 2006; Burger King Holdings completed a successful initial offering, and listed its stock on the New York Stock Exchange, however on October 19th 2010, 3G Capital acquired Burger King Holdings, and this reverted it back to privately owned company once again. In April
(McDonalds website) ‘Franchisees are crucial to McDonald’s success; they deliver our brand values straight to the customer. Worldwide, over 70 percent of our restaurants are run by independent entrepreneurs’ (Lancaster and Reynolds, 2004, P.335). McDonald’s is considered to be in a monopolistic competition; ‘it is a market structure where there are a large number of sellers producing a differentiated product’ (Worthington and Britton, 2006, P.505) With no price competition, the goods are slightly differentiated by advertising, branding or local production. There are many ways to determine a size of an organisation, we can see the increase in size of McDonalds over the years by the increasing number of restaurants and the revenue. We can see this in McDonalds worldwide financial profile, appendix 7.1.