mcdonald's case study problem statement

McDonald’s Case Study Problem Statement: Improper Resource Management

Mcdonald’s statement of the problem or opportunity, mcdonald’s problem statement: alternatives, mcdonald’s problem: analysis of the alternatives, recommendation, works cited.

There is lack of proper management of resources within McDonald restaurants and this has led to tremendous drop in sales over the years. Most of the stores in the Far East have closed due to economic downturn. At the same time consumers are shifting their tastes and preferences from hamburgers to other types of food. This has contributed to low sales since the number of people visiting the stores decreased over the years.

The number of prospective franchisees has also decreased attributing their exit to poor customer turnout owing to cheap brand that McDonald has exposed itself to by offering too much discounts on its products. The firm is also experiencing poor quality services and uncleanliness; this is due to laxity by the top management making them not to inspect the franchises. There is also lack of skilled manpower due to postponement of training sessions that were once used to equip employees.

The company need to work out on their business models through appropriate segmentation to enable them work comfortably with the changing market economy. Professional training of the employees on the marketing and sales strategies needs to be resumed. The firm at the same time need to diversify its sales in order to catch up with the consumers changing trends on tastes.

These other food products must be accompanied by quality services including reasonable prices. McDonalds should also improve on the quality of their burgers by inventing new and unique recipe. This can only be achieved by utilizing the most creative franchisees having high skilled employees (McDonald et al 335-352).

There is need to recruit managers who are capable of implementing the firms marketing programs and at the same time have the ability of building internal cohesion (Johlke and Duhan 265-267). The manager must have the ability to motivate and unite employees from the franchises to the head office.

The managers must possess the ability to control and cope with major changes and challenges within the market. The managers need to acquire valuable information on the current market trends without relying so much on their past performances. They need to improve on their level of interaction and communication with their franchisee.

Making training mandatory for every employee on a regular basis might see an improvement in the level of skilled manpower. This can be used to enhance marketing effectiveness as well as the level of performance. Recruiting experienced managers will ensure that proper tactics are implemented to regain the control of the market.

This will also ensure that the human resource have the right people for right duties (Cravens and Piercy 2009). McDonalds have kept on changing its managers due to poor performances and inability to implement quality strategies for quality services. Like in this case, poor management led to McDonalds closing over seven hundred restaurants (Gogoi and Michael 281-284).

Looking for the alternative food stuff for consumers might not look effective at the start since there are many consumers who are now used to the supplies from other potential competitors. Improving the recipe will not also realize much change because according to research ratings, the consumers prefer being served with firms that offer better quality services.

According to the research carried out, companies like Wendy and Chick-fill-A Inc were ranked a head of McDonald. McDonald’s competitors offer far better quality food stuff than them and this might mean that McDonald will really have to improve on their sales and marketing tactics in order to convince consumers (Kohli 53-8).

There is need to analyze other competitors intentions and strategies in order to find the best counteractive approach. The need for good management team will enhance the provision of good brand and articulation of all the elements that comprise marketing mix. The products, pricing and the way of marketing must change for growth and improvement to be realised.

Cravens, David and Piercy, Nigel. “Strategic Marketing”. McGraw Hill. 9 th edition. 2009.

Gogoi, Pallovi and Michael, Arndt. “McDonald’s Corporation”. Business week , New York, (2003): 281-284.

Johlke, Mark and Dale Duhan. “Testing Competing Models of Sales Force Communication”. Journal of Personal Selling & Sales Management . USA Vol. 21 (4), (2000): 265-277.

Kohli, Jaworski. “Market orientation: Antecedents and consequences”. Journal of Marketing; New York 57, (3) (1993): 53-81.

McDonald, Malcolm et al. “Corporate Marketing and Service Brands—Moving Beyond the Fast-Moving Consumer Goods Model.” European Journal of Marketing ; London. Vol. 35 (3/4), (2001):335-352.

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McDonald's Corporation

By: Frank T. Rothaermel, John Kim

The case is written from the perspective of McDonald's CEO Steve Easterbrook. Easterbrook assumed office in March 2015, and the case highlights the company's recent and dramatic decline in…

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The case is written from the perspective of McDonald's CEO Steve Easterbrook. Easterbrook assumed office in March 2015, and the case highlights the company's recent and dramatic decline in performance amidst increasing competition. In addition, the case details Easterbrook's strategic initiatives in an attempted turnaround of McDonald's' fortunes. With some $25 billion in sales (in 2017) and some 45,000 restaurants globally (thereof 27,000 in the U.S.), McDonald's remains the largest quick-service restaurant (QSR) chain. At the same time, McDonald's has been struggling on several fronts in recent years. Attempting to be "everything for everybody," McDonald's fell victim to being "stuck-in-middle," without a clear strategic position. With such a large global installed base of restaurants and franchisees, any changes coming from the McDonald's headquarters require significant leadership, investment, and potential risk.

Learning Objectives

Vision, mission, and values; Core competency; Business model; Business unit and corporate strategy; Industry and competitor analysis.

Sep 28, 2017

Discipline:

Geographies:

United States

Industries:

Restaurants and food service industry

McGraw-Hill Education

MH0050-PDF-ENG

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Table of Contents

Mcdonald's consumer profile, mcdonald's advertising strategy , promotion for broadcast, billboard ads, outdoor ambient marketing, mcdonald's digital marketing strategy, become a digital marketer in 2022, mcdonald's marketing strategy - a case study.

In 1940, California was where the first McDonald's opened. It became well-known quickly for its tasty hamburgers and friendly service. Eight years later, it was one of the first places to switch from traditional table service to fast food. It added new kinds of burgers and milkshakes to its menu. The success of the development led the company to sign its first franchise agreement in 1952, which led to rapid growth worldwide. The company runs about 40,031 restaurants worldwide, and sales in other countries brought in about $21.076 billion in 2019.

McDonald's marketing strategy has helped the company achieve the success it commands today. From the start of its growth, the company wanted to build strong brand recognition and market penetration to help promote its growing franchise business. As the company's number of customers grew, they did more research on demographics to help them target easily. McDonald's marketing strategy includes investing in online and offline marketing methods that spread its clear, brand-centered messages to a large audience and using other channels like its dedicated mobile app to reach and keep loyal customers.

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McDonald's has a wide range of customers because it uses mass marketing and has low prices at fast-food restaurants. Most of the chain's customers are between 35 and 54. Buyers, both men and women, often have low to average incomes. They are known as brand-loyal casual diners who spend an average of $7.79 each time they eat.

Many of these customers are parents of young children who like that the brand's atmosphere and food are good for families. This market group was first targeted in 1979 when Happy Meal, a set of children's meals with a free-themed toy, was introduced. 

McDonald's website wants to create a "pleasant, entertaining environment for everyone to enjoy." This shows how many different kinds of people it wants to attract. The brand does primary market research to determine how to market itself and make sure it fits the demographics of the people it wants to reach. McDonald's uses surveys and questionnaires in stores, on social media, and through its mobile app to find out how happy customers are with the food, service, delivery, and other things. McDonald's Community and other digital channels are always being watched to keep track of what customers say and do.

McDonald's spends a lot of money on billboards and TV ads. In 2018, the company spent nearly $1.5 billion on advertising in the US alone. Outdoor, TV, and radio ads aren't likely to reach many people, so digital marketing strategies are used to send consistent information to people who aren't likely to see or hear the ads.

McDonald's marketing strategy uses TV and radio to get the word out about its brand and promote new menu items, meal discounts, and charitable work. Its broadcast channels and times are chosen so that most people will watch or listen. In November 2018, when the NFL season was at its peak popularity, McDonald's is expected to have spent $52.9 million on TV ads in the United States. This shows the importance of the fast-food chain getting the most prominent broadcast ad positions.

McDonald's has a lot of traditional billboard ads, which have the same marketing goals and content as its TV ads. With billboards that range from static to digitally interactive and are placed in high-visibility, high-traffic areas, the company tries to keep its target demographic and other connected consumer groups thinking positively about its brand.

This is a great example of how multiple ways to promote the same goals can make the campaign more successful compared to campaigns that only use one method.

McDonald's also does creative and interesting outdoor ambient marketing. Ambient advertising is when promotional materials are put in places or on things that are very unusual or unexpected or that aren't usually used for advertising. McDonald's is using this type of guerrilla marketing to make more of an impact on customers. McDonald's campaign shows this for its "Massive McMuffin Breakfast." During the whole year of 2010, the company put up big paper takeout bags with the name of its new breakfast item on major streets in New Zealand. The unexpected and hard-to-miss image got a lot of attention from people walking by, as shown by the many photos of the scene people took and shared on social media. This helped promote the McMuffin breakfast.

The brand's street markings at pedestrian road crossings are another example. They are meant to look like fries sticking out of a McDonald's-branded package of fries.

Online advertising helps the brand reach its goals of building brand awareness and creating demand. The information used online is similar to what you might see in a McDonald's TV ad or on a billboard. However, both the language and the graphics are made to work best on the social media platforms used, such as Twitter, Facebook, and Instagram. By asking customers to post pictures of their meals online, McDonald's takes advantage of the growing food photography trend. In fact, between September 2018 and February 2019, 4,9 million logos of McDonald's were posted on Twitter around the world. This made McDonald's the second most pictured brand.

The company also works on search engine optimization (SEO), but its "organic" SEO method does better than "sponsored" promotion. As of December 2019, 90.7% of the search traffic to mcdonalds.com came from natural search results, while 9.3% came from sponsored keywords.

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McDonald's marketing strategy in the digital medium includes customer interactions through social media like Facebook and Instagram. The customers interact with the brand and with each other on social media. Also, the company offers various discounts and coupons through their social media pages and the company app. McDonald's was one of the few companies that performed well during the 2000s recession. The reason for the success was that the company communicated its strategy to the consumers.

McDonald's digital marketing strategy allowed the company to fight back rumours circulating on social media in 2018. The company got  a Long Term Excellence Award from the Marketing Society. The company responded directly to the allegations that it faced and was able to get its message out in the open. 

McDonald's marketing strategy across the various offline and online methods has allowed the company to maintain its leadership position in the fast-food business. The target audience is families that allow most of the population to feel comfortable at the restaurant. McDonald's marketing strategy across the digital channels helps the company communicate clearly and directly.

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McDonald’s SWOT Analysis & Recommendations

This SWOT analysis of McDonald’s Corporation illustrates the benefits of having a leading industry position and a dominant presence in the global market. However, the fast-food company needs to account for the combined effect of its strengths, weaknesses, opportunities, and threats (SWOT) on its strategies, to optimize success in the face of cutthroat competition. McDonald’s generic strategy for competitive advantage and intensive strategies for growth align with the SWOT factors. Considering the restaurant company’s leading market position, these strategies are suited to the issues raised in the internal analysis (strengths and weaknesses) and external analysis (opportunities and threats) components of this SWOT analysis. Also, these strategies contribute to the fulfillment of business goals based on McDonald’s mission statement and vision statement . The company serves as an example of how a food service business can succeed by developing operations while resolving the issues brought to light through a SWOT analysis.

Insights from this SWOT analysis explain McDonald’s current strategic decisions. The internal factors examined in this case influence the company’s capabilities and growth in its target markets for food and beverage products and for food service. On the other hand, the external factors determine limits and challenges that McDonald’s must overcome to succeed in these markets. Thus, this SWOT analysis describes the business condition and external environment significant to the restaurant company’s strategic management.

McDonald’s Strengths (Internal Factors)

McDonald’s strengths make the fast-food restaurant chain a leading contender in the market. This aspect of the SWOT analysis shows the internal strategic factors that contribute to the fast-food company’s organizational viability. McDonald’s strengths are as follows:

• Internationally recognized brand and name
• High consistency of food, beverages, and services based on standardized processes
• Large network of business locations

McDonald’s brand and name are easily recognized internationally. This internal strategic factor is a strength in this SWOT analysis, indicating the benefits of the brand and name in supporting the company’s success, such as in introducing new food products. McDonald’s also has the strength of high consistency in its products. For example, the ordering process and most of the company’s food and beverage products, like burgers, fries, and carbonated drinks, are highly similar across different regions. McDonald’s corporate culture (business culture) contributes to such consistency, especially in terms of quality. Another strength noted in this SWOT analysis is the company’s large network of locations for its restaurants and kiosks. This internal factor strengthens the food service business in terms of revenues, as well as visibility and brand recall among target consumers. In relation to the network of locations pertinent to this SWOT analysis, McDonald’s applies marketing strategies that maximize the utility of available technologies and third-party services. For example, the company’s mobile apps enhance consumers’ convenience in accessing the company’s fast-food products. Technological efforts are a strategy for strengthening the network of business locations considered in this SWOT analysis of McDonald’s.

Weaknesses (Internal Factors)

McDonald’s weaknesses are linked to market focus, products, and business processes. This aspect of the SWOT analysis indicates the internal strategic factors that limit the restaurant company’s performance and success. McDonald’s weaknesses are as follows:

• Insignificant degree of vertical integration
• Imitable characteristics of processes and food and beverage products
• Limited product design flexibility that comes with standardization

McDonald’s operations and business strategies revolve around the preparation and serving of food and drinks. In this SWOT analysis, such focus comes with the weakness of the insignificant degree of vertical integration. For instance, the company does not produce its own raw ingredients. The SWOT analysis model considers this internal strategic factor as a weakness because it enables suppliers’ leverage over McDonald’s. On the other hand, competitors can imitate the company’s products and business processes, including hamburger meals and drinks, employee training programs, and the food preparation processes at restaurants. This internal factor contributes to competitive pressure on the fast-food chain business. In addition, McDonald’s has the weakness of limited product design flexibility because of standardization, which is one of the strengths noted in this SWOT analysis. For example, the standardized recipes of many of the company’s food products weaken the ability to satisfy regional food preferences. This weakness stands, even though the company has customized its menu for some countries, like India. Addressing this weakness requires corresponding adjustments to McDonald’s operations management programs and approaches for standardization.

Opportunities for McDonald’s (External Factors)

McDonald’s opportunities are linked to its product mix, multinational operations, and connections with other businesses. This aspect of the SWOT analysis points to the external strategic factors that support the food service company’s business growth. McDonald’s opportunities are as follows:

• New programs for suppliers to stabilize supply chains
• Acquisition of firms for vertical integration to include production of materials, especially ingredients
• Growth in consumer goods operations

McDonald’s has the opportunity to implement new programs to ensure the stability of its supply chains. This external strategic factor addresses supply disruption, which is included as a threat in this SWOT analysis of the fast-food business. Also, McDonald’s can gradually achieve vertical integration by acquiring firms related to its current business. For example, the company can acquire firms that process flour or manufacture bread. In this way, the company can increase its control of the supply chain, while reducing risks involving unpredictability in the supply of raw materials or ingredients. This opportunity addresses the weakness of insignificant vertical integration and the threat of supply chain disruption, which are issues identified in this SWOT analysis of McDonald’s Corporation.

Consumer goods represent only a small portion of McDonald’s business, considering that the company focuses mainly on food service. However, growth in consumer goods operations is considered an opportunity in this SWOT analysis. McCafé home-use coffee products are performing well in the market, indicating that the company can further grow its consumer goods business. McDonald’s marketing mix or 4Ps can support consumer goods operations along with product design and development. Also based on such an external factor, this SWOT analysis points to the benefit of strategic partnerships to boost the sales of McCafé at Home coffee products through retailers and e-commerce platforms, like Walmart , Costco , Target, and Amazon . These sellers and platforms currently offer McCafé at Home products and can facilitate the sales of new consumer goods from McDonald’s. The resulting growth in the consumer goods business can increase the company’s revenues while capitalizing on the brand strength identified in this SWOT analysis. The design of McDonald’s business structure (organizational structure) affects the direction of new consumer goods operations.

Threats (External Factors)

The threats to McDonald’s are based on competitive rivalry, sociocultural trends, and economic or ecological conditions. This aspect of the SWOT analysis deals with the external strategic factors that limit the fast-food company’s business development. The main threats to McDonald’s business are as follows:

• Aggressive competition in the market for fast food and consumer goods
• Healthy lifestyle trends
• Food supply disruptions

Aggressive food service competitors threaten McDonald’s and impose a major strategic challenge relevant to this SWOT analysis. The company competes with other fast-food firms, such as Burger King , Wendy’s , and Subway. McDonald’s food and coffee business, McCafé, also competes with Starbucks , Dunkin’, and Tim Hortons. These food service companies maintain the strong external force of competition. Furthermore, PepsiCo ’s caffeinated beverages and Unilever ’s Bru coffee products, which can be bought online in various countries, intensify the competition with McCafé merchandise. The Five Forces analysis of McDonald’s Corporation determines that this competitive force strongly affects the company.

Healthy lifestyle trends are also a threat relevant to this SWOT analysis. This external strategic factor refers to sociocultural movements that discourage consumers from eating fast food, such as McDonald’s. This trend emphasizes the importance of product development to satisfy evolving food preferences. The PESTEL/PESTLE analysis of McDonald’s Corporation reflects such a social trend affecting the food service industry. The company already has some programs testing the business potential of vegetarian burgers, but this SWOT analysis views the external factor as a threat because such programs have a limited rollout scope. Additional efforts for addressing this threat can contribute to the success of McDonald’s CSR and ESG strategies for satisfying stakeholders , including consumers.

This SWOT analysis also includes food supply disruptions as a threat to the fast-food restaurant chain. McDonald’s stability depends on the stability of food supply, which relates to the stability of the agricultural sector. Pandemics and other crises can weaken food supply and, as a result, threaten the food service business. Thus, this SWOT analysis highlights the importance of strategies for ensuring the reliability of the company’s supply chain and its access to input materials for the restaurant business.

Insights and Recommendations – McDonald’s SWOT Analysis

The threats and opportunities shown in this SWOT analysis point to potential improvements to McDonald’s business. The company suffers from the weakness of low or insignificant vertical integration, and faces threats, such as healthy lifestyle trends and supply chain disruptions. However, these issues come with opportunities for improving McDonald’s. For example, this SWOT analysis shows the business opportunity for vertical integration, which can support the stability of the supply of food and raw ingredients. Also, the company can offer improved products, such as better burgers, to satisfy consumers’ concerns about the health effects of fast food. Moreover, this SWOT analysis indicates the recommendation for increasing McDonald’s consumer goods operations with support from the competitive advantage of brand popularity to encourage customers to buy McCafé and new consumer goods from the company.

• Alexander, T. (2023). Unwrapping the McDonald’s model: An introduction to dynamic social theory. The Journal of American Culture, 46 (3), 232-241.
• Benzaghta, M. A., Elwalda, A., Mousa, M. M., Erkan, I., & Rahman, M. (2021). SWOT analysis applications: An integrative literature review. Journal of Global Business Insights, 6 (1), 55-73.
• Mbatha, V. D., Koopman, A., & Chuchu, T. (2023). Examining the Impact of Sensory Marketing on Young Consumers: A McDonald’s Case Study. International Review of Management and Marketing, 13 (3), 16.
• McDonald’s Corporation – Food Quality & Sourcing .
• McDonald’s Corporation – Form 10-K .
• McDonald’s Corporation – Our Commitment to Quality .
• McDonald’s McCafé at Home .
• U.S. Department of Agriculture – Economic Research Service – Food Service Industry Market Segments .
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McDonald's Corporation: The World's Leading Fast Food Chain [Case Study]

Devashish Shrivastava , Anik Banerjee

McDonald's Corporation is an American fast-food organization established in 1940 as a café by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a burger stand and later transformed the organization into an establishment; the Golden Arches logo being presented in 1953 at an area in Phoenix, Arizona.

Ray Kroc, a businessperson, joined the organization as an established operator in 1955 and continued to buy the chain from the McDonald's siblings. McDonald's had its base camp in Oak Brook, Illinois, and moved its worldwide base camp to Chicago in mid-2018.

McDonald's is worth $185+ bn today. It is the world's biggest eatery network by revenue. It was last registered to be serving 69+ million customers each day in more than 120 countries across over 39,000 outlets.

Although McDonald's is best known for its burgers, cheeseburgers, and french fries, its menu also includes chicken items, breakfast things, sodas, milkshakes, wraps, and sweets. In light of changing buyer tastes and a negative backfire on account of the wretchedness of its food, the organization has added mixed greens, fish, smoothies, and natural products to its offerings.

McDonald's Corporation's income originates from leases and charges paid by the franchisees. According to two reports distributed in 2018, McDonald's is the world's second-biggest private manager with 1.7 million representatives (behind Walmart with 2.3 million workers).

Here's bringing you the McDonald's company profile that will present to you McDonald's company overview, when was McDonald's founded, McDonald's growth over the years, about McDonald's, McDonald's owner name, founder of McDonald's corporation, McDonald's history and background, McDonald's case study marketing, and more.

McDonald's - Company Highlights

McDonald's - Startup Story and History McDonald's - Mascot/Logo McDonald's - Business Model And Market Strategy McDonald's - Target And Mission McDonald's - Growth McDonald's - Restaurants And Services McDonald's - Future

McDonald's - Startup Story and History

Richard and Maurice McDonald in 1940, opened the primary McDonald's at 1398 North E Street at West fourteenth Street in San Bernardino, California; however, it was not the McDonald's you know today. Ray Kroc made changes to the siblings' business and modernized it.

The siblings presented the "Speedee Service System" in 1948 by extending the standards of cutting-edge drive-thru eatery that their antecedent White Castle had tried over two decades earlier. McDonald's emerged with a delivery model where it made its food on a supply belt and delivered it within 2 minutes.

It looked like a fantastic and impossible eatery that had:

• Only burgers, fries, and shakes on the menu • No plates or waiters to serve the customers

However, when Ray Kroc came, he was astonished by the never-ending waiting lines that were there waiting for their orders from McDonald's.

Kroc was then 50 already and was selling milkshake mixers door to door. Ray Kroc had earlier tried his hand in many things but never had attained success in his whole life. He already worked as a musical director, pianist, and had also worked as a real estate guy, in the paper cup industry, and as a seller of kitchen appliances, but he couldn't hold on to one thing among them all. Thus, Kroc was a person who lived from paycheck to paycheck.

Kroc came to McDonald's to deliver an absurd order of 8 milkshake mixers for just one area. He wondered "why would someone want to make 40 milkshakes at a time?" This is why he drove to California, at McDonald's to see the place himself.

Seeing the huge demand for McDonald's burgers, fries, and shakes, Kroc sensed a huge opportunity. He soon pushed the founders of the store to embrace a franchise model. The McDonald's brothers who owned the business, were living a comfortable life then, getting rich by the day, and buying Cadillacs as they filled their pockets. They didn't have vision nor they were eager to expand. However, Ray convinced them and rushed to work, as soon as he did that.

He assumed the role by taking 2 major steps back to back:

• Mortgaging his house when he was already 52
• Opening 18 new outlets in the very first year

This has helped the company scale big time, and McDonald's now boasts of:

• Serving 2.3+ billion burgers a year
• Serving 39,000+ restaurants across more than 120 countries
• Being the 4th largest employer in the world
• Being the largest toy distributor in the world

Though it was Ray's idea and the expansion was promising, the McDonald's brothers made an unfair deal with him. Kroc was allowed only 2% of the profits. McDonald's being to scale aggressively but the founders of McDonald's wasn't really happy with Ray and his scaling. This is why Ray borrowed and bought them out for $2.7 mn, thereby becoming the 100% owner of McDonald's.

The organization attributes its success to Ray Kroc. Kroc later bought the McDonald siblings' value in the organization and was responsible for McDonald's overall reach. He was seen as a forceful colleague, driving the McDonald siblings out of the business. Kroc and the McDonald's siblings battled for control of the business, as recorded in Kroc's life account.

The San Bernardino eatery was torn down (1971, as indicated by Juan Pollo) and the site was offered to the Juan Pollo chain in 1976. This zone currently fills in as central command for the Juan Pollo chain, and a McDonald's and Route 66 museum.

With the development of McDonald's into numerous universal markets, the organization has turned into an image of globalization and the American lifestyle. Its unmistakable quality has additionally made it a regular point of open discussions about heftiness, corporate morals , and shopper obligation.

McDonald's - Mascot/Logo

The first mascot of McDonald's was a cooking cap over a burger who was alluded to as "Speedee" . In 1962, the Golden Arches supplanted Speedee as the all-inclusive mascot. The image of jokester Ronald McDonald was presented in 1965. Ronald McDonald showed up to promote amongst children.

On May 4, 1961, McDonald's initially petitioned for a U.S. trademark on the name "McDonald's" with the portrayal "Drive-In Restaurant Services". By September 13, McDonald's, under the direction of Ray Kroc, petitioned for a trademark on another logo—a covering, twofold curved "M" image.

Before the twofold curves, McDonald's used a solitary curve for the design of its structures. Even though the "Brilliant Arches" logo showed up in different structures , the present form was not utilized until November 18, 1968, when the organization was given a U.S. trademark.

McDonald's - Business Model And Market Strategy

The business and revenue model of McDonald's includes almost 37000 outlets which spread to more than 120 nations. Today, McDonald's is the biggest eatery network on the planet in terms of income.

Initially launched as a Drive-In Hamburger Bar, the idea was advanced in 1940 by The McDonald Brothers, Richard James (Dick), and Maurice James (Mac) McDonald. It was after the presentation of the Speedee Service System with shakes, fries, and burgers costing as low as 15 pennies that the McDonald Brothers started the establishment of McDonald's Hamburgers.

In 1954, Ray Kroc turned into the establishment operator of the McDonald Brothers. The main McDonald's eatery was opened by Kroc in 1955 in Des Plaines, Illinois, USA. It was in the year 1961 that the rights to the eating joint of the kin were obtained by McDonald's for a powerful total of $2.7 million.

You may likewise be astonished to realize that when the first McDonald's eatery opened, the extremely well-known McD french fries were eaten with no ketchup! The revenue model of McDonald's, the world's quickest developing food chain, is an interesting one.

McDonald's - Target And Mission

McDonald's endeavours hard to be its clients' "most loved spot and approach to eating". McDonald's plan of action is fixated on the ground-breaking strategy "Plan To Win", which is placed into requests around the world.

With the mission of "Quality, Service, Cleanliness, and Value", McDonald's has clung to each of these characteristics. Client experience is improved by the selection of five fundamentals: people, products, place, price, and promotion.

Additionally, McDonald's plans to give high-review nourishment, at effectively reasonable costs to individuals over the globe. The deals at McDonald's are furrowed through an efficient deals channel which guarantees remarkable consumer loyalty on all occasions.

Astounding Vision

When Ray Kroc opened the Original McDonald's in Illinois, he had a dream of expanding the franchise across the globe with more than 1000 outlets in the States itself. Remaining consistent with its guarantee, McDonald's widened its worldwide handle by opening joints outside the US as early as 1967.

The first international outlets were opened in Canada and Peurto Rico. By January 2018, McDonald's was situated in 120 nations and had about 37200 cafés with 1.9 million workers. It was serving more than 69 million individuals every day. At one point in time, McDonald's was opening a new outlet every 14.5 hours!

Significant Growth Strategy

McDonald's has clutched a promising development technique to serve customers and spread its wings. The presentation of the "Speed Growth Plan" in March 2017 enhanced the development of the business.

McDonald's development system depends on retaining, regaining, and converting. McDonald's strives to hold on to its old clients, recapture the lost trust, and convert easygoing clients into ordinary ones.

What's more, it has additionally embraced three quickening agents: digital, food delivery, and experience of things to control its monstrous development. It keeps on reshaping cooperation with clients and raising the level of consumer loyalty and experience through innovation and human endeavours.

Decent Variety

Monetarily, McDonald's has affected the world more significant manner than some other organizations. McDonald's adheres to the conviction "Decent variety is Inclusion" and doesn't leave a solitary opportunity to make each person from every network feel regarded. Its suggestion of "Decent variety is Inclusion" has affirmed its situation at the top position.

The McDonald's way of life revolves around the following: customer-obsessed, better together, and committed to lead. These coupled with its conviction has caused the fast-food chain to exceed expectations in the field of business enterprise and showcasing.

McDonaldization

McDonald's can appropriately be named as one of the best organizations to be involved in the worldwide system. The worldwide broadening of the McDonald's is regularly alluded to as "McDonaldization." Its accomplishment in more than 120 nations can be credited to its hierarchical structure.

The hierarchical structure of McDonald's mulls over expanding localization, and in this way, the entire plan of action of McDonald's is normally redone thinking about the mass intrigue in different nations.

Fruitful Acquisitions

The McDonald's Corporation Mergers and Acquisitions (M&A) have, since its inception, entertained itself with cautious acquisitions. Donato's Pizza which is a Midwestern chain of 143 eateries was obtained by McDonald's on 6 May 1999. Aside from securing Donato's, it acquired the Boston Market on 18 May 2000. Boston Market is a drive-through eatery chain that essentially focuses on home-style sustenance.

Supporting Employees

McDonald's doesn't, in any capacity, hamper the development of its workers. It bolsters its representatives in every possible way and empowers them to set up business systems.

At McDonald's, the work environment is brimming with positivity, connections are advanced, professional openings are supported, and business development is sustained.

Coaches, good examples, and backers are accessible at all times to direct the employees on successful initiatives, professional procedures, and prosperous business.

Engagement Of Community And Education

Aside from being one of the best good-quality fast food options, McDonald's investigates every possibility to endeavour for the network it serves. It effectively takes part in network administration and continues to have a critical effect on assorted networks.

The Global Diversity, Inclusion, and Community Engagement Team alongside its key accomplices have fabricated cherished relations with different network-based associations. McDonald's Hamburger University readies its workforce to maintain the multi-billion dollar business and worldwide initiative improvement programs.

McDonald's - Growth

McDonald's eateries are found in 120 nations and serve 69 million customers each day. McDonald's operates 39,000 restaurants/cafés around the world, utilizing more than 210,000 individuals as part of the arrangement. They help operate 2,770 organization possessed areas and 35,085 diversified areas, which incorporates 21,685 areas diversified to regular franchisees, 7,225 areas authorized to formative licensees, and 6,175 areas authorized to remote affiliates.

Concentrating on its centre image, McDonald's started stripping itself of different chains it had gained during the 1990s. The organization possessed a large stake in Chipotle Mexican Grill until October 2006 when McDonald's was completely stripped from Chipotle through a stock exchange .

Until December 2003, it likewise claimed Donatos Pizza, and it claimed a little portion of Aroma Café from 1999 to 2001. On August 27, 2007, McDonald's sold Boston Market to Sun Capital Partners.

Outstandingly, McDonald's has expanded investor profits for 25 back-to-back years, making it one of the S&P 500 Dividend Aristocrats. The organization is positioned 131st on the Fortune 500 of the biggest United States companies by revenue.

In October 2012, its month-to-month deals fell without precedent for nine years. In 2014, its quarterly deals fell without precedent for a long time, when its deals last dropped for the whole of 1997.

In the United States, McDonald's accounts for 70% of sales in drive-throughs. McDonald's shut down 184 eateries in the United States in 2015, which was 59 more than what they wanted to open.

Starting in 2017, the income was roughly $22.82 billion. The brand estimation of McDonald's is more than $88 billion; outperforming Starbucks with a brand estimation of $43 billion. The total compensation of the organization in 2017 was $5.2 billion; this worth saw an ascent of about 11% from the previous year.

McDonald's is, without a doubt, the quickest developing drive-thru eatery chain on the planet. In 2018, McDonald's developed as the most profitable inexpensive food chain with a brand worth nearing $126.04 billion. Also, the all-out resources of McDonald's were almost $33.8 billion.

The world's quickest developing cheap fast food chain partitions its market into four unique areas: U.S., International Lead Markets, High Growth Markets, and Foundational Markets and Corporate.

According to the report set forth by the organization in the year 2017, the market in the U.S. created the biggest measure of income at $8 billion. The International Leads Markets which includes Australia, Canada, France, Germany, and the U.K. created an income of $7.3 billion.

The High Growth Markets which incorporate China, Italy, Korea, Poland, Russia, Spain, Switzerland, the Netherlands, and comparative brought in about $5.5 billion in revenue.

The Foundational Markets and Corporate incorporate the rest of the business sectors. Furthermore, it additionally incorporates a wide range of corporate exercises. The income created by this section of the market represented roughly $1.9 billion.

McDonald's - Restaurants And Services

In certain nations, "McDrive" areas close to roadways offer no counter administration or seating. interestingly, areas in high-thickness city neighbourhoods frequently preclude pass-through service. There are likewise a couple of areas, found for the most part in the downtown locale, that offer a "Walk-Thru" administration instead of a Drive-Thru.

McCafé is a bistro-style backup to McDonald's cafés and is an idea conceived by McDonald's Australia (likewise known, and promoted, as "Macca's" in Australia), beginning with Melbourne in 1993. As of 2016, most McDonald's outlets in Australia have McCafés situated inside the current McDonald's eatery.

In Tasmania, there are McCafés in each eatery, with the rest of the states rapidly following suit. After moving up to the new McCafé look and feel, some Australian eateries have seen up to a 60% expansion in deals. There were more than 600 McCafés around the world some time back.

Create Your Taste

From 2015–2016, McDonald's attempted another gourmet burger administration and eatery idea dependent on other gourmet cafés, for example, Shake Shack and Grill'd. It was taken off without precedent for Australia in early 2015 and extended to China, Hong Kong, Singapore, Saudi Arabia, and New Zealand with progressing preliminaries in the US showcase.

In committed "Make Your Taste" (CYT) booths, clients could pick all fixings including a kind of bun and meat alongside discretionary additional items. In late 2015, the Australian CYT administration presented CYT servings of mixed greens.

After an individual had requested, McDonald's prompted that hold up times were between 10–15 minutes. At the point when the nourishment was prepared, the prepared group ('has') carried the sustenance to the client's table.

Rather than McDonald's typical cardboard and plastic bundling, CYT nourishment was exhibited on wooden sheets, fries in wire bushels, and servings of mixed greens in china bowls with metal cutlery. A more expensive rate connected. In November 2016, Create Your Taste was supplanted by a "Mark Crafted Recipes" program intended to be increasingly proficient and less expensive.

McDonald's Happy Day

McHappy Day is a yearly occasion at McDonald's during which a portion of the day's deals goes to philanthropy. The collections on this day go to Ronald McDonald House Charities.

In 2007, it was celebrated in 17 nations: Argentina, Australia, Austria, Brazil, Canada, England, Finland, France, Guatemala, Hungary, Ireland, New Zealand, Norway, Sweden, Switzerland, the United States, and Uruguay. As indicated by the Australian McHappy Day site, McHappy Day brought $20.4 million up in 2009. The objective for 2010 was $20.8 million.

McDonald's Monopoly Donation

In 1995, St. Jude Children's Research Hospital got a mysterious letter stamped in Dallas, Texas, containing a $1 million winnings McDonald's Monopoly game piece. McDonald's authorities went to the medical clinic, joined by a delegate from the bookkeeping firm Arthur Andersen, inspected the card under a diamond setter's eyepiece, took care of it with plastic gloves, and checked it as a winner.

Although game guidelines disallowed the exchange of prizes, McDonald's deferred the standard and made the yearly $50,000 annuity instalments for the full 20-year time frame through 2014, even in the wake of discovering that the piece was sent by an individual associated with a theft plan meant to cheat McDonald's.

McRefugees are destitute individuals in Hong Kong, Japan, and China who utilize McDonald's 24-hour cafés as transitory lodging. One out of five of Hong Kong's populace lives underneath the destitution line. The ascent of McRefugees was first archived by picture taker Suraj Katra in 2013.

McDonald's - Future

The reported objective is to source all visitor bundling from inexhaustible, reused, or ensured sources, reuse visitor bundling in 100% of eateries, and overcome framework challenges by 2025.

McDonald's turned into the principal eatery organization on the planet to set an endorsed Science-Based Target to lessen ozone-depleting substance emanations. It also joined the "We Are Still In Leader's Circle", driving activity to relieve environmental change.

McDonald's USA completed five years as the sole worldwide café organization to serve MSC-ensured fish in each U.S. area. It united with Closed Loop Partners to build up a worldwide recyclable and additionally compostable cup arrangement through the NextGen Cup Challenge and Consortium. Official pioneers called for atmosphere activity and offered arrangements at the primary Global Climate Action Summit (GCAS).

McDonald's co-facilitated the "Way to Greenbuild" occasion with Illinois Green Alliance at its new worldwide home office. The structure, a collaboration among Sterling Bay, McDonald's, and Gensler Chicago, got USGBC LEED Platinum accreditation.

McDonald's is establishing the tone for other inexpensive food organizations to pursue. Given the present want by numerous buyers to spend cash on organizations that are doing great on the planet, where McDonald's leads, others will pursue.

Who is the founder of McDonald's?

McDonald's was founded by Richard McDonald and Maurice McDonald on 15 April 1955 in California, United States.

Who is the CEO of Mcdonald's?

Chris Kempczinski is the CEO of Mcdonald's since Nov 2019.

Who is the owner of McDonald's in India?

In India, McDonald's is a joint-venture company managed by two Indians- Amit Jatia (M.D. Hardcastle Restaurants Private Ltd) and Vikram Bakshi ( Connaught Plaza Restaurants Private Ltd).

When was the fast-food chain McDonald's founded?

Mcdonald's was founded in 1940 in San Bernardino, California.

How much does a Mcdonald's franchise owner make?

An average Mcdonald's franchise generates $150,000 annually.

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McDonald’s Case Study Freshest Ideas – Strategic Management, Global Marketing, etc.

Have you ever wondered how McDonald’s became world-famous for selling sandwiches and potatoes?

McDonald’s Corporation is a leader in the fast-food industry, an extremely competitive market. This article will discuss various factors that brought the restaurant chain to success. We will answer all your questions for the McDonald’s case study: strategic management, marketing, competition, crisis management, etc. Let’s start!

• 🦸 McDonald’s Facts
• 🌿 McDonald’s Case Study Ideas
• 🍔 Marketing
• 🥤 Strategic Management
• 🧸 McDonald’s Staffing
• 🍟 McDonald’s Vs. Burger King
• 🤢 McDonald’s and Obesity
• 🥻 McDonald’s in India
• 🤠 Crisis Management

🎉 McDonald’s Case Study – 50 Best Examples

🔗 references, 🦸 5 crazy facts about mcdonald’s.

We bet you didn’t know most of these facts:

• French fries are the best-selling item on the menu. No, not everyone’s all-time favorite Big Mac. But it is pretty popular too, in second place.
• US military inspired Mcdonald’s to create McDrive. Some of the soldiers on duty were not allowed to leave their cars. That is why a Mcdonald’s restaurant near a military base developed a drive-through system that spread to other branches.
• Mcdonald’s sells around 75 hamburgers in a second. More than 750 hamburgers will be in customers’ hands only before you finish reading this article.
• Some countries banned McDonald’s. Bermuda, Iran, Macedonia, Yemen, Montenegro, North Korea, Zimbabwe, Bolivia, and Iceland don’t have a single Mcdonald’s restaurant on their territories.
• McDonald’s is the biggest toy distributor in the world. The company gives kids more than 1.5 billion toys yearly, thanks to Happy Meal. Check out McDonald’s Research Topics & Essay Examples to learn more about the company!

🌿 McDonald’s Case Study – Fresh Ideas

McDonald’s is an excellent research field. It’s a big and famous company with many departments and a long history. Don’t know what to begin with? Check McDonald’s case study starters below:

• Advertising campaigns.
• Pricing strategies.
• Human resource management.
• McDonald’s hiring process in 2021.
• Creative marketing campaigns.
• Ronald McDonald House Charities.
• Corporate environment.
• International markets strategies.
• Fast-food industry problem statement.
• McDonald’s financial summary.
• Food shortage in local markets.
• Benefits for employees.
• Supply chain.
• Sustainability.
• Community connection.

🍔 McDonald’s Case Study Marketing – Idea #1

Take a look at key marketing focus areas of McDonald’s:

• Quarter Pounder
• Filet O’Fish
• McDonald’s advertising The advertising budget is constantly growing and expanding to new markets. The company spent $1.62 billion on ads in 2020.
• McDonald’s branding The fast-food chain developed a string brand using red and yellow colors, “M” golden arches and copywriting. You probably know McDonald’s world-famous slogan, “I’m loving it.”
• Marketing for children segment Happy meals and marketing campaigns targeted at children made McDonald’s No1 fast-food restaurant for families.
• McDonald’s franchising model The company was one of the pioneers in franchising. It also implemented a unique quality control system and adapted menus to regional tastes.

🥤 McDonald’s Case Study Strategic Management – Idea #2

McDonald’s constantly sets new goals and reviews current strategies to maintain its position in the market. Here is what you can research:

• McDonald’s strategic objectives Apart from generating revenue, McDonald’s focuses on its mission and vision. The company aims to become its customer’s favorite restaurant with excellent service.
• McDonald’s strategic management in HR The company devotes much attention to employment and workforce management planning. McDonald’s also implements innovative technologies to automatize HR processes.
• McDonald’s strategic investments McDonald’s continues to invest in core menu positions’ marketing as they make roughly 70% of the sales. They plan to integrate more bestsellers into regional menus.
• McDonald’s strategic innovations The company prioritizes 3Ds (Digital, Delivery, and Drive-Thru) in its current growth strategy. The company works on social and digital client interactions to create a better customer experience.
• McDonald’s financial strategies McDonald’s financial goal is to maximize its revenue by offering more straightforward financial solutions to its partners. The company supports suppliers and franchisees to help local economies recover after the COVID-19 pandemic.

👔 McDonald’s Staffing – Case Study Idea #3

McDonald’s offers various jobs, from the front counter and drive-thru to top management careers. How are employees treated in McDonald’s? Let’s find out:

• 2021 measures to fight labor shortage At the beginning of 2022, McDonald’s announced that in 2021, it had significantly grown its number of employees. The reasons were wage increases, more benefits, and additional bonuses.
• McDonald’s recruiting The company uses various selection, screening, and testing techniques depending on the career a person applies to. Hiring managers have many responsibilities, as McDonald’s employs around 200,000 people yearly.
• McDonald’s human resource management There are more than 1,7 billion McDonald’s crew members around the world. McDonald’s provides training and performance appraisal.
• Career ladder in McDonald’s Based on the results of its employees, there are multiple career growth opportunities at McDonald’s.
• Diversity and inclusion in McDonald’s McDonald’s works on key factors that are equal pay, supplier and franchisee diversity, and other sustainability goals. The company implements its DEI (Diversity, Equity & Inclusion) strategy in its departments and supply chains.

🍟 McDonald’s Vs. Burger King Case Study – Idea #4

Burger King is one of McDonald’s main competitors on the market. You can compare these fast-food chains using the following aspects:

• McDonald’s and Burger King’s customer service Burger King greets each customer when they enter its restaurants. In addition, Burger King replies to unsatisfied McDonald’s customers on social media and offers their coupons.
• McDonald’s and Burger King’s pricing strategy In general, McDonald’s prices are a bit lower. But there is no significant difference in their pricing strategies.
• McDonald’s and Burger King’s menu positions Burger King offers more balanced options than McDonald’s. On the contrary, McDonald’s is the leader in the breakfast menu and has many healthy options.
• McDonald’s and Burger King’s advertising McDonald’s implements better branding decisions and consistent advertising. Burger King creates more memorable and witty TV commercials.
• McDonald’s and Burger King’s coffee McDonald’s offers better coffee with a broader menu, especially in McCafe. Burger King’s coffee is not as popular.

🤢 McDonald’s and Obesity Case Study – Idea #5

McDonald’s and other fast food generally contain many calories, leading to weight gain. This problem is especially prominent in the US, where fast food is much more popular than in Europe.

• McDonald’s responsibilities As the most popular fast-food chain, Mcdonald’s can set trends in the industry that other chains will follow.
• McDonald’s nutritional information presentation In 2022, Mcdonald’s changed its calorie legislation. You can see calorie and macronutrient information about all the menu items in all customer touchpoints.
• McDonald’s and childhood obesity The company aims to reduce the amount of sugar, salt, and fat on the Happy Meal menu. McDonald’s also promotes healthy and balanced eating habits in its ads for children.
• McDonald’s accusations Advertisements, loyalty programs, and discounts motivate people to buy more. That is why much of McDonald’s marketing is criticized because it makes people buy bigger portions and more menu items.
• McDonald’s healthy meals The restaurants offer different salads, healthy breakfasts, low-fat milk, apple dippers, and other region-specific options.

🥻 McDonald’s in India Case Study – Idea #6

Indian culture and eating habits were a challenge for McDonald’s. Now we can see that the restaurant has successfully conquered the market.

• Mcdonald’s expansion to India McDonald’s opened its first restaurant in Delhi in 1996. Before McDonald’s entered the market, Indians didn’t even consider a burger as a meal.
• McDonald’s menu in India You can find many spicy burger options, spicy fries, kebabs, pizza, and rice bowls on the menu.
• Domino’s Pizza
• Dunkin Donuts
• Burger King
• Vegetarian market Indians don’t eat beef or pork at all. Nearly half of the Indian population is vegetarian. That is why McDonald’s made adjustments to its branding and ingredients.
• McDonald’s opportunities in India Indians’ eating habits have changed over the last few years. More of them choose to eat out and eat western food.

🤠 McDonald’s Crisis Management Case Study – Idea #7

McDonald’s regularly faces controversies and scandals that they have to deal with. Here are some examples of such cases:

• McDonald’s crisis response in 2020 During the Covid-19 pandemic, McDonald’s provided financial support to its franchisees and employees. It also continued operating and ensured no delays in the supply chain.
• Steve Easterbrook lawsuit The former McDonald’s CEO was fired because of an affair with an employee. Later, the company discovered he had three other relationships with his employees.
• McDonald’s discrimination scandals Multiple sources alleged that David Fairhurst, former Chief People Officer, sexually harassed female employees. He also was forced to leave his job.
• McDonald’s transparent investigations After the scandals that involved higher management, McDonald’s implemented new policies. They include public and transparent actions and a proactive position in the investigation.
• Million-dollar nugget lawsuit A man from Florida cracked his tooth because of a bone in a nugget. Currently, he is trying to sue McDonald’s for the damage.

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McDonald’s Situational Analysis Case Study Analysis

Mcdonald’s case study – problem statement.

McDonalds is unable to have a consistent and increasing rise in its gross profit. Although the revenues from 2011 to 2013 have been rising steadily by an average of $500,000 the revenue for 2014 has declined. This has therefore decreased the gross profit yet the income tax and most other corresponding factors remain the same.

See also: McDonalds Causes Obesity in United Sates

Situational Analysis

• The Income tax charged on the company’s proceeds for the year 2014 and 2012 are similar, however, the company’s profit was $11,995,000 in the year 2014 from $12,401,500 in 2013 and $12,218,500 in 2012. Since the tax cannot be blamed for the decline in profit it is necessary to look at other factors. Despite this decrease in gross profit in 2014, the gross profit margin can be argued to be healthy since it has maintained at an average of 0.44.
• According to McDonalds Strategic financial analysis, the company’s total liabilities have seen a continuous increase throughout the five years. Rising from $17,341,000 in 2010, through $20,092,900 in 2012 to $21,428,000 in 2014. Since these liabilities contain debts to be paid regularly, they cause a decline in gross profit after any revenues are made. The liabilities/equity ratio also saw a sharp increase in 2014. It was at 1.29 in 2013 by rose sharply in 2104 to 1.69. The previous years had an average of 1.29 and therefore, the liabilities accrued in 2014 had a huge influence on the companies financials.
• Health concerns. McDonalds deals mostly in fast foods that have been immensely blamed for most health and weight problems. Despite efforts by the company to manage this such as the 15% reduction in sodium on its foods, there is a large perception that the foods are still unhealthy leading to most people avoiding its stores. This has therefore translated to less sales and less income. Evidently, the income for 2014 declined by $664400 from 2016.
• The number of employees has decreased slightly into 2014, their income has also reduced. Although this should translate to more profit, this has not materialized. This could therefore be blame on the productivity and efficiency of most of the employees that could translate to more revenues by the company.

Alternatives

• Switching to healthier food alternatives. To deal with the negativity placed on fast foods such as those sold by McDonalds, the company could choose to make changes to its menu. Due to changing environments, most companies and institutions choose to change adjust their operations to suit the current trends. This in turn translates to continued increase in revenues and consistent operations. For McDonalds the same could be done though it would face varied opinions from diehard lovers of McDonalds. Fast foods are its brand and the change could taint this brand. The companies’ outlets would change from being the fast food joints most people identify them with, to regular restaurants where someone can have a salad or soup. This change however, would translate to those customers moving away from McDonalds outlets due to the health concerns retaining their loyalty to McDonalds and thus continued rise in revenue.
• To manage the unfavorable liabilities the company could reduce the number of outlets it has. Although a difficult decision, this option could favor the company’s finances. Many outlets lead to increased costs. The outlets require more labor hence increase in labor cost, they require capital to start, which could come from loans hence increase in liabilities. By cutting down on the number of outlets it has, it would also be able to deal with the two problems arising from labor; Complaints about rude employees and wages. The company has been under intense pressure to increase its wages to a $15 per hour minimum which through good for the employee, is damaging to the company’s finances especially if it does not translate to more revenues.

Recommendations.

Switch to healthier food alternatives. Saturated fats and foods high in calories have been blames for most health problems such as obesity, high blood pressure and heart problems. Most medical research recommends a change of diet to healthier foods such as vegetables and fibers. This is centrally to what fast food joints such as McDonalds have been selling. Despite the fact that these fast foods once had a huge popularity they are being looked down upon and thus lees business for McDonalds. It customers who are mainly composes of young people are also becoming more receptive to healthier food options. To retain its revenues, McDonalds needs to adjust its menu to suit this growing trend. In addition, upcoming technologies are making it possible to make fast foods that do not pose any health risk. It decision to reduce sodium in most of its foods I s good and should be followed by using oils that are cholesterol free and preparing foods with less calories. Not only would this ensure sustainability of revenue but it would provide competition to similar companies such as Burger King and KFC hence a rise in revenue.

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Marketing Cases from Emerging Markets pp 99–112 Cite as

Case Study 11: Marketing of Services: The McDonald’s Way

• Rik Paul 4 &
• Sanjit Kumar Roy 5  
• First Online: 01 January 2013

3866 Accesses

2 Citations

For a lot of people, the name of McDonald’s instantly brings a smile. It is known for its crispy burgers and its wide network of outlets. The company started its business operations in India in 1996 as a 50:50 joint venture partnership between the two businessmen Amit Jatia (Jatia) and Vikram Bakshi (Bakshi). India was a challenging market, given local dietary preferences for vegetarian dishes. Tim Fenton pointed out that India’s eat out market was about $128 billion a year compared with $132 billion in China, but was growing faster than that of China.

If you work just for money, you’ll never make it, but if you love what you’re doing and you always put the customer first, success will be yours. —Ray Kroc, Founder, McDonald’s Corporation.

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Amit Jatia, the MD of Hardcastle Restaurants, joined the McDonald’s family as the youngest JV Partner in 1995. He took hands on training for a year at McDonald’s in Jakarta (Indonesia) as well as a degree in Hamburgerology from the Hamburger University, Oak Brook (Illinois, USA). He was also nominated for “The Economic Times Awards for Corporate Excellence” as “Entrepreneur of the Year” in 2004 and 2005.

Vikram Bakshi became the MD, McDonald’s India (North and East) on September 28, 2006. He was also nominated as the President of the National restaurant Association of India.

Tim Fenton was the president of Asia, Pacific, Middle East and Africa and was accountable for the 38 countries and more than 8,200 McDonald’s restaurants in this region. He served as president, East Division, for McDonald’s USA. He was responsible for more than 5,200 restaurants in the eastern United States, covering eight geographical regions in 21 states.

It is a vegetable burger, which includes a patty made out of potatoes, peas, and spices. It also includes tomato slices, onions, and vegetarian mayonnaise.

It starts with a rectangular shaped crust, but instead of a creamy sauce, it is flavoured with a tomato-based sauce and then is topped with carrots, beans, bell peppers, onions, peas and mozzarella cheese.

It looks similar to McAloo Tikki Burger, but starts with the sesame seed bun. In between the bread, there is a vegetarian patty made from peas, carrots, green beans, red bell pepper, potatoes, onions, rice, and seasoning. It is garnished with lettuce, and has mayonnaise spread thickly on the bread.

A samosa is a stuffed pastry and a popular snack in South and Southeast Asia. It generally consists of a fried or baked triangular, semi-lunar or tetrahedral pastry shell with a savory filling, which may include spiced potatoes, onions, peas, coriander, and lentils, or ground beef or chicken.

Kababs are a wide variety of meat dishes originating in Persia and later on adopted by the Middle East andTurkey, and now found worldwide.

Chole bhatura is a combination of spicy chick peas and fried bread called bhatura made of flour.

Pakoda is a fried snack (fritter) found across South Asia. It is created by taking one or two ingredients such as onion, eggplant, potato, spinach, plantain, cauliflower, tomato, chilli, or occasionally bread or chicken and dipping them in a batter of gram flour and then deep-frying them.

A paratha is an Indian flat-bread that originated in the Indian subcontinent. Parathas are usually stuffed with vegetables such as boiled potatoes, leaf vegetables, radishes or cauliflower and/or paneer (South Asian cheese). Aloo-paratha is the variety that is stuffed with boiled potato and spices.

The bhaaji is a vegetarian dish made from a vegetable. A typical north Indian lunch or dinner usually starts with Poori (flat bread), accompanied by one or more bhaaji(s).

Dosa is a fermented crepe or pancake made from rice batter and black lentils. It is indigenous and is a staple dish in the southern Indian states of Andhra Pradesh, Karnataka, Kerala, and Tamil Nadu.

Vada can vary in shape and size, but are usually either doughnut or disc shaped and are about between 5 and 8 cm across. They are made from dal, lentil, gram flour or potato. Vadas are preferably eaten freshly fried, while still hot and crunchy and is served with a variety of dip called sambar.

Rs = Indian Rupee (s), Re. 1 = 100 paisa, In February 2011, US$1 = Rs. 45 (approximately).

V S Rama Rao, “Fast Food Retailing in India,” www.citeman.com , September 17, 2010.

In India, highways are dotted with local restaurants popularly known as dhabas (singular: dhaba ). They generally serve local cuisine. They are most commonly found next to petrol stations, and are generally open 24 h a day.

“The Burger Story” www.tonicpanel.com .

Leo Burnett Worldwide is an American advertising company, created in 1935 by Leo Burnett. The company was opened in Chicago in 1935. In 1950 the company started its two first major advertising projects, for Kellogg’s and P&G.

Bollywood is the informal term popularly used for the Hindi-language film industry based in Mumbai, Maharashtra, India. The term is often incorrectly used to refer to the whole of Indian cinema; it is only a part of the total Indian film industry, which includes several regional film industries sorted by language.

The Indian Premier League (IPL) is a professional league for Twenty20 cricket competition in India. It was initiated by the Board of Control for Cricket in India (BCCI) headquartered in Mumbai, India.

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) is the umbrella body of chambers of commerce in India. The organisation represents the interests of trade and commerce in India, and interacting with the Government of India on policy issues, and liaisoning with their international counterparts to promote trade between India and other nations.

India’s first Food Franchising Report by Franchise India and CIFTI-FICCI. The primary objective of the report is to provide a snapshot of current trends in Food Franchising vis-a-vis expert analysis of various elements having implications on it.

Established in 1991 by Arvind Singhal, Technopak Advisors is a Management Consulting firm in India, offering strategic advice, start up assistance, performance enhancement impetus, consumer insights and capital advisory to Indian and International companies.

Sagar Ratna is a well known brand of restaurant chain in northern India serving vegetarian cuisine with a speciality in south Indian delicacies.

Yo! China is India’s first and largest chain offering Indian Chinese cuisine in almost all corners of the country. It offers a trendy casual dining atmosphere and has 43 points of presence in trendy locations across India.

Haldiram’s is one of India's largest sweets and snacks manufacturers, based in Delhi, India.

Bikanervala is a chain of traditional restaurant in India which specializes in ethnic Indian food specially sweets and snacks.

Nirula’s is India’s oldest fast food restaurant chain, based in North India and most popular in NCR Delhi. It specialized in “Desi (local) version” of western fast food as well as offered Indian cuisine and casual dining.

Mavalli Tiffin Room (commonly known as MTR) is the brand name of a food related enterprise located in India. It is famous for the MTR restaurant located on the Lal Bagh Road in Bangalore and also for the pre-packed food articles which are sold in packets having the MTR brand. MTR also claims to be the inventor of the popular South-Indian breakfast item, Rava idli.

Murugan idli shop is considered among the best to taste South Indian dishes. Idly, Dosai and Meals are enjoying the prominent positions among the menu of a south Indian.

Denny’s Corp is a full-service coffee shop/family restaurant chain. It operates over 1,500 restaurants in the United States. Denny’s is known for always being open, serving breakfast, lunch, dinner, and dessert around the clock. .

Pollo Tropical is a fast food restaurant chain specializing in the Floribbean cuisine of South Florida (a fusion of Florida cuisine and Caribbean food). Pollo Tropical is owned and operated by Carrols Corporation. The chain has its headquarters in Kendall, unincorporated Miami-Dade County, Florida.

Johnny Rockets is an American restaurant franchise whose concept is to create a classic American restaurant atmosphere. The theme is the diner-style restaurant that had become a common sight by the 1950s.

Wendy’s Old Fashioned Hamburgers is an international fast food chain restaurant founded by Dave Thomas. As of March 2010, Wendy’s was the world’s third largest hamburger fast food chain with approximately 6,650 locations.

Arby’s is a fast food restaurant chain in the United States and Canada that is a wholly owned subsidiary of Wendy’s/Arby’s Group. It is primarily known for selling roast beef sandwiches and curly fries. The company's target market attempts to be more adult-oriented than other fast food restaurants.

CKE Restaurants, Inc. is the parent company of the Carl’s Jr., Hardee’s, Green Burrito, and Red Burrito restaurant chains.

Schlotzsky’s is a privately held franchise chain of restaurants, specializing in sandwiches, headquartered in Downtown Austin, Texas. As of November 20, 2006, Schlotzsky’s has nearly 380 franchised and company-owned locations in 36 states in the United States and in six other countries around the world, generating $210 million in systemwide revenue.

BannaStrow’s is a franchise concept that focuses on a menu of Crepes and Waffles, cooked to order in front of its customers for a wonderful show.

Moe’s Southwest Grill is an American chain of fast casual style Tex-Mex restaurants headquartered in Atlanta, Georgia.

Carvel is an ice cream franchise owned by Focus Brands. Carvel is best known for its ice cream cakes, which feature a layer of distinctive ‘crunchies’. It also sells a variety of novelty ice cream bars, ice cream sandwiches and soft serve ice cream.

Dunkin’ Donuts is an international doughnut and coffee retailer founded in 1950 in Quincy, Massachusetts by William Rosenberg.

Popeyes Chicken & Biscuits (sometimes named Popeyes Louisiana Kitchen or Popeyes Chicken & Seafood; often referred to as just Popeyes) is a chain of fried chicken fast food restaurants, owned since 1993 by the Sandy Springs, Georgia-based AFC Enterprises.

The Pizza Company is a restaurant chain and international franchise based in Bangkok, Thailand.

Swensen’s is a global chain of ice cream restaurants that started in San Francisco, California.

Burger King, often abbreviated as BK, is a global chain of hamburger fast food restaurants headquartered in unincorporated Miami-Dade County, Florida, United States.

Ipsos Indica Research is an independent company which ranks fifth among global research companies.

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Paul, R., Roy, S.K. (2014). Case Study 11: Marketing of Services: The McDonald’s Way. In: Mutum, D., Roy, S., Kipnis, E. (eds) Marketing Cases from Emerging Markets. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-36861-5_15

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