Two Brothers, Richard and Maurice Mcdonald Founded Mcdonald’s in 1937. the Brothers Developed Food Processing and Assembly Line Techniques at a Tiny Drive-in Restaurant East of Pasadena, California.

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Two brothers, Richard and Maurice McDonald founded McDonald’s in 1937. The brothers developed food processing and assembly line techniques at a tiny drive-in restaurant east of Pasadena, California. In 1954, Ray Kroc, a milk-shake mixer salesman, saw an opportunity in this market and negotiated a franchise deal giving him exclusive rights to franchise McDonald’s in the USA. Mr Kroc offered a McDonald’s franchise for $950 at a time when other franchising companies sold restaurant and ice-cream franchises for up to $50,000. Mr Kroc also took a service fee of 1.9 per cent of sales for himself plus a royalty of 0.5 per cent of sales went to the McDonald brothers. The McDonald’s brothers sold out for $2.7 million in 1961. McDonald’s first international venture was in Canada, during 1967. Shortly afterwards, George Cohon bought the licence for McDonald’s in eastern Canada, opening his first restaurant in 1968. Cohon went on to build a network of 640 restaurants, making McDonald’s in Canada more lucrative than any of the other McDonald’s outside the USA. The key to the international success of McDonald’s has been the use of franchising. By franchising to local people, the delivery and interpretation of what might be seen as US brand culture are automatically translated by the local people in terms of both product and service. McDonald’s now has over 20,000 restaurants in over 100 countries, and around 80 per cent are franchises. Globalisation versus internationalisation Globalisation involves developing marketing strategies as though the world is a single entity, marketing standardised products in the same way everywhere. Globalised organisations employ standardised products, promotional campaigns, prices and distribution channels for all markets. Brand name, product characteristics, packaging and labelling are the easiest of the marketing mix variables to

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