Mcdonald's Success Ans Challenges.

McDonalds Case Study

A Case Study Documenting McDonalds Success And Challanges:

An Overview of McDonalds:

McDonalds is a large fast food chain with a global presence, operating in 118 countries. Many of its outlets are run on a franchise basis which is tightly controlled for consistency of experience. It is this consistency that has helped contribute to McDonalds’ success.

McDonalds is differentiated from its competitors by the scale of its operations, and is so well-known that its name has been incorporated into broader vocabulary, with ‘McDonaldization’ referring to largely homogenised global operations and ‘McJob’ describing employment with little reward or prospects.

Originally set up by the McDonald brothers in 1940, rapid expansion came with the involvement of Ray Kroc in the 1950s. McDonalds’ branding has one of the most widely recognised logos – the Golden Arches - in the world.

Key Reasons For McDonald’s Success:

* Ray Kroc was aggressive in his expansion strategy, building rapidly on early successes with a franchising model and raising capital by floating the business on the stock exchange in 1965.

* The company has achieved a careful balance between global homogenisation for economies of scale and tailoring its products to local markets for maximum customer appeal.

* It has been active in developing its offer, for example offering free wifi in its restaurants.

* It has responded to criticisms that its food is unhealthy by providing a broader range of products for the health conscious customer.

* Ethical concerns of consumers have been addressed by sourcing organic milk and fair trade coffee.

* Promotions encourage repeat visits from a variety of market segments, for example through collectible toys for children and coffee loyalty cards for adults.

* It is highly successful in providing consistent eating experiences and maintaining cleanliness.

Challenges:

* Despite its efforts, McDonalds is still associated in the...