Mcdonalds

CASE STUDY

McDonald’s Corporation

McDonald’s has worked hard to be more than a restaurant chain. It has become a marketing icon and is part of the routines of millions of people. Its success is so far reaching that it has developed its own culture and identity. It has become a symbol of the success and desirability of American popular culture.

McDonald’s operates more than 24,000 restaurants in 114 countries. It has a 21 percent share of the very competitive US fast food industry. Overseas restaurants now account for half of the company’s profits. McDonald’s plans to open 10,000 new restaurants by the year 2005. It has been the forerunner in the recent industry trend of co-branding and satellite locations.

What has set McDonald’s apart from the average hamburger restaurant is its ability to recognise customers’ needs and desires. It seems customers want fast, friendly service in a clean and orderly environment. McDonald’s sees this as its main objective and addresses it as its primary business function. One of McDonald’s most important critical success factors has been the ability to apply manufacturing functions to service activities. McDonald’s has used this approval to bridge the dichotomy between service and manufacturing.

The McDonald brothers identified simplicity as being important. Dick McDonald explained,

We said let’s get rid of it all. Out went dishes, glasses and silverware.

Out went service, the dishwashers and the long menu.

We decided to serve just hamburgers, drinks, and French fries on paper plates.

Everything prepared in advance, everything uniform.

All geared to heavy volume in a short amount of time.

This simple system was felt to be ideal for franchising as it was ideal to duplicate. A strong system of operations was conceived. The system consists of four distinct parts:

1. Develop supplier relationships.

2. Train and monitor franchises.

3. Improve products.

4. Improve equipment through...