1.0 family moved from Manchester, New Hampshire to Hollywood

1.0       INTRODUCTION OF THE COMPANY

1.1       History

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The
McDonald family moved from Manchester, New Hampshire to Hollywood in the late
1930s, where brothers Richard and Maurice McDonald began working as set movers
and handymen at Motion-Picture studios. In 1937, their father Patrick McDonald
opened “The Airdrome”, a food stand, on Huntington Drive (Route 66)
near the Monrovia Airport in Monrovia, California with hot dogs being one of
the first items sold. Hamburgers were later added to the menu at a cost of ten
cents with all-you-can-drink orange juice at five cents. In 1940, Maurice and
Richard (“Mac” and “Dick”) moved the entire building 40
miles (64 km) east, to West 14th and 1398 North E Streets in San Bernardino,
California. The restaurant was renamed “McDonald’s Bar-B-Que” and had
25 menu items, mostly barbecue.

In
October 1948, after the McDonald brothers realized that most of their profits
came from selling hamburgers, they closed down their successful carhop drive-in
to establish a streamlined system with a simple menu which consisted of only
hamburgers, cheeseburgers, potato chips, coffee, soft drinks, and apple pie.
After the first year, potato chips and pie were swapped out for french fries
and milkshakes. The carhops were eliminated, making the new restaurant a
self-service operation. Richard and Maurice took great care in setting up their
kitchen like an assembly line to ensure maximum efficiency. The restaurant’s
name was changed again, this time to simply “McDonald’s,” and reopened
on December 12, 1948.

1.2       Logo

In
the 60’s, McDonald’s wanted to change the logo but their design consultant and
psychologist Louis Cheskin insisted that they left the golden arches. According
to BBC he said customers will unconsciously recognize the logo as “symbolism of
a pair of nourishing breasts”

1.3       Background

McDonald was founded by two brothers, Richard and
Maurice McDonald in 1937 in California. This largest global fast food chain
arrived in Malaysia 43 years later in December 1980. McDonald Corp gave their
license to Golden Arches Sdn Bhd to open McDonalds Restaurant in Malaysia.
After 26 years, they now have 185 franchise outlet nationwide. McDonald have
created over 7000 job opportunity ever since they arrive in Malaysia over the
years. McDonald’s name in Malaysia, it built its name in Malaysia for the first
time in December 1980, when the United States McDonald Corporation award Golden
Arches Restaurant Sdn Bhd, a licence to operate McDonald restaurant. Jalan
Bukit Bintang, Kuala Lumpur was chosen as the most strategic location, the
first McDonald restaurant in Malaysia has been opened. With the opening of this
restaurant, McDonald Malaysia was crowned as the first restaurant in the
country which operate a majority Muslim population. Now, McDonald Malaysia has
had a total of 204 restaurant nationwide network and make new restaurant with a
projected growth rate of between 15-20 restaurants annually. With the opening
of this new restaurant, of course employment opportunities for local resident
also increase. Estimate of 1500 new jobs will be created through the opening of
new restaurant, the edition of staff and remodeling restaurant available.

1.4       Vision

McDonald’s vision statement is as follows: “Our
overall vision is for McDonald’s to become a modern, progressive burger company
delivering a contemporary customer experience. Modern is about getting the
brand to where we need to be today and progressive is about doing what it takes
to be the McDonald’s our customers will expect tomorrow. To realize this
commitment, we are focused on delivering great tasting, high-quality food to
our customers and providing a world-class experience that makes them feel
welcome and valued.”

1.5       Mission

            “McDonald’s brand mission is to be
our customers’ favorite place and way to eat and drink. Our worldwide
operations are aligned around a global strategy called the Plan to Win, which
center on an exceptional customer experience – People, Products, Place, Price
and Promotion. We are committed to continuously improving our operations and
enhancing our customers’ experience.”

 

1.6       Product and Service Provided

            McDonald’s provides mainly food and
beverage products. This element of the marketing mix covers the various
organizational outputs (goods and services) that a company provides to its
target customers. McDonald’s product mix has the following main product lines:

1.         Hamburgers and sandwiches

2.         Chicken and fish

3.         Salads

4.         Snacks and sides

5.         Beverages

6.         Desserts and shakes

7.         Breakfast/All-day breakfast

8.         McCafé

McDonald’s
is primarily known for its burgers. However, the company expands its product
mix through time. At present, customers can purchase other popular products
like chicken and fish, desserts, and breakfast meals. This element of
McDonald’s marketing mix indicates that the firm innovates new products to
attract more customers.

1.7       Tagline

                                                “IM
LOVIN IT”

 

           

 

 

2.0
LEADERSHIP

 

McDonalds is one of the
most success fast food company in worldwide. They archive this from the
strategies that very efficient.  We can
see this from the product that they launch is different based on the culture in
every country. Such as, in India, there are no beef in their product because of
the culture in India cannot eat beef by follows their religion. Another example
is in Malaysia, there are no pork in their burger because most of the people
are Muslims.

Furthermore, in
vertical strategy, they have multi-service such as Drive-Thru, McCafe, delivery
that satisfied demand from customers. Drive-Thru makes customers easier to take
away the food without have to queue long in the restaurant. McDonald’s also
offer for customers that love to takes dessert that McCafe provide to customers
such as cake, coffee and ice cream. Next is from delivery, this is for
customers that makes an order from home. This can be benefit for customers that
they do not have to waste time energy and fuel.

Moreover, for
integrated cost leadership differentiation is the Wi-Fi service that allows
customer to use Internet for free. So, customer will more attract interest to
come to McDonalds It is also open 24/7 but it’s depend on certain
restaurant.  McDonald becomes more
successful with many competitors such as KFC, Pizza Hut, Burger King because of
strategy that we already discussed.

            In
conclusion, satisfy that McDonald’s offer to customer makes the high demand
from customers itself increase years by years. This is why McDonald’s can stays
stand even many competitors that increasingly advanced.

 

 

3.0 SWOT ANALYSIS

3.1 Strengths

Strong Global Brand:
McDonald’s has one of the most recognizable brands in the world. Most
individuals in the United States, and much of the world, instantly recognize
the company’s “Golden Arches”. The company provides consistency in its food, so
that you can get the same taste whether you’re eating a Big Mac in New York or
Moscow. However, it also provides cultural diversity in the foods it offers based
on the location of the restaurant, thereby adding to supplemental sales in each
particular region. The company’s success has allowed it to become the world’s
largest fast food restaurant chain in the world.

Diversified Income:
Since the company is so large, with so many locations around the world, its
total sales and earnings in different regions tend to offset one another. It
has locations in nearly 120 countries, so if domestic sales are slumping, it’s
possible that they could be strong in South America or Europe. As a result, the
company doesn’t rely on one key source of income, unlike many of its rivals.
For example, Burger King relies almost exclusively, roughly 98%, on the United
States for its earnings. This diversification allows McDonald’s to have
relatively stable cash flows, and generate consistent profitability.

 

3.2 Weaknesses

Negative publicity:
McDonald’s has always maintained the perception that its food is unhealthy,
loaded with fat, carbs, salt, and sugar. Well, these perceptions are generally
on point, as most items on its standard menu are relatively unhealthy. The
chain has been widely criticized for promoting unhealthy eating habits, leading
many of its customers to put on pounds. 2004’s documentary, “Super Size Me”,
didn’t help the company, as it documented Morgan Spurlock’s rapidly
deteriorating health as he ate only McDonald’s for a 30-day period. As a
result, many health conscious consumers don’t even consider having a meal at
McDonald’s, despite its efforts to introduce healthier options.

High Employee Turnover:
Most jobs at McDonald’s are low skilled and low paying. As a result, there is a
significant amount of employee turnover. Many employees don’t take the job
seriously, or only do it for short periods of time, and this leads to lower
performance. Since there is so much turnover, training costs are high,
pressuring the company’s bottom line.

 

3.3 Opportunities

Upgraded Menu:
New CEO Steve Easterbrook has big plans to turn the company around. Part of the
plan is to offer premium products at some of its locations. The restaurant
recently introduced artisan chicken and sirloin burgers to its menu in parts of
the U.S. The company is also trying to strengthen its position in the
high-margined caffeinated beverages industry, dominated by Starbucks (SBUX). McCafe has had some success by
keeping prices competitive, and the company has been able to harness its vast
store network, marketing muscle, and highly efficient supply chain. The McCafe menu also now includes fruit smoothies, an
appeal to more health conscious consumers.

Expansion Plans:
McDonald’s is always on the lookout to expand its market share. While the
markets in North America and Europe are fairly saturated, there are
opportunities in more underdeveloped nations. The company also recently
announced that it was going to refranchise 3,500 restaurants by the end of
2018, accelerating the pace of refranchising and increasing the global franchised
percentage from the current 81% to 90%. This should allow for a more
streamlined, lower cost, and more stable organization. 

3.4 Threats

Competition: McDonald’s
faces significant competition from national, international, regional, and local
retailers of food products. It competes on the basis of price, convenience,
service, menu variety, and product quality. While it does a good job on most of
these metrics, product quality is something that management is working on,
given consumers’ increasing preference for quality and natural products. In the
hamburger fast food category, McDonald’s primarily competes with Burger
King and Wendy’s (WEN). However, it still has the highest
market share in the overall fast food market, with a 22% share, ahead of
competitors Yum! Brands (YUM) and Subway.

More Health-Conscious Customers:
Many consumers, both in the U.S. and abroad, are trying to eat a healthier
diet. The rise in popularity of organic products, fresh fruit and vegetables,
and goods with all-natural ingredients is somewhat of a concern for McDonald’s.
While the company has very strict quality controls for its food, customers
aren’t exactly going to McDonald’s for free-range chicken and organic
vegetables. The company is also facing concerns that younger, more
health-conscious consumers, will hurt results in the long run unless a shift in
strategy is made.

4.0 RECOMMENDATION

 

McDonald is a one of
world-famous restaurant in global level but every advantage have there are own
disadvantage. Majority perception public of the restaurant is selling an
unhealthy foods. Most of the foods that McDonald offers is hamburger that make
people assume it is less health. This is why my group wants to suggest a way to
McDonald provide their foods by add healthier menu. It will changes people’s
perceptions to McDonald’s and it’s also can maximizes profit. In this way, to
whom that cares about their health will buy it with open heart.

Next, we recommend that
McDonald should train their employees so that they work effectively and
effiency. This can improve the performance of each worker as well as prevent
customers from getting the wrong order and waiting for a long time. In this
way, it will helps the worker to work well. Additionally, McDonald’s who
provide drive-thru services can reduce their problems with long-awaited
customers as they work well.

In addition, we
recommend that McDonald should create an application where customers can place
orders at home and take their orders at the restaurant. Therefore the customer
no longer needs to queue at the restaurant and can also avoid mistakes when
taking orders. Customers also do not have to wait to take their order in the
restaurant. This application will simplify and save the busy working hours of
customers and have no long breaks in the office.