1.0 INTRODUCTIONOF THE COMPANY 1.1 History The McDonald familymoved from Manchester, New Hampshire to Hollywood in the late 1930s, wherebrothers Richard and Maurice McDonald began working as set movers and handymenat Motion-Picture studios.1 In 1937, their father Patrick McDonald opened”The Airdrome”, a food stand, on Huntington Drive (Route 66) near theMonrovia Airport in Monrovia, California2 with hot dogs being one of thefirst items sold. Hamburgers were later added to the menu at a cost of tencents with all-you-can-drink orange juice at five cents. In 1940, Maurice andRichard (“Mac” and “Dick”) moved the entire building 40miles (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 had25 menu items, mostly barbecue.
In October 1948, afterthe McDonald brothers realized that most of their profits came from sellinghamburgers, they closed down their successful carhop drive-in to establish astreamlined system with a simple menu which consisted of only hamburgers,cheeseburgers, potato chips, coffee, soft drinks, and apple pie.3 After thefirst year, potato chips and pie were swapped out for french fries andmilkshakes. The carhops were eliminated, making the new restaurant aself-service operation. Richard and Maurice took great care in setting up theirkitchen like an assembly line to ensure maximum efficiency. The restaurant’sname was changed again, this time to simply “McDonald’s,” and reopenedon December 12, 1948. 1.
2 Logo In the 60’s, Mcdonald’s wanted tochange the logo but their design consultant and psychologist Louis Cheskininsisted that they left the golden arches. According to BBC he said customerswill unconsiciously recognize the logo as “symbolism of a pair of nourishingbreasts 1.3 Background Mcdonaldwas founded by two brothers, Richard and Maurice Mcdonald in 1937 inCalifornia. This largest global fast food chain arrived in Malaysia 43 yearslater in December 1980. Mcdonald Corp gave their license to Golden Arches SdnBhd to open Mcdonalds Restaurant in Malaysia.
After 26 years, they now have 185franchise outlet nationwide. Mcdonald have created over 7000 job opportunityever 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 theUnited States Mcdonald Corporation award Golden Arches Restaurant Sdn Bhd, alicence to operate Mcdonald restaurant. Jalan Bukit Bintang, Kuala Lumpur waschosen as the most strategic location, the first Mcdonald restaurant inMalaysia has been opened. With the opening of this restaurant, McdonaldMalaysia was crowned as the first restaurant in the country which operate amajority Muslim population. Now, Mcdonald Malaysia has had a total of 204 restaurantnationwide network and make new restaurant with a projected growth rate ofbetween 15-20 restaurant annually. With the opening of this new restaurant, ofcourse employment opportunities for local resident also increase. Estimate of1500 new jobs will be created through the opening of new restaurant, theedition of staff and remodeling restaurant available.
1.4 Vision McDonald’s visionstatement is as follows: “Our overall vision is for McDonald’s to become amodern, progressive burger company delivering a contemporary customerexperience. Modern is about getting the brand to where we need to be today andprogressive is about doing what it takes to be the McDonald’s our customerswill expect tomorrow. To realize this commitment, we are focused on deliveringgreat tasting, high-quality food to our customers and providing a world-classexperience that makes them feel welcome and valued.
” 1.5 Mission “McDonald’s brandmission is to be our customers’ favorite place and way to eat and drink. Ourworldwide operations are aligned around a global strategy called the Plan toWin, which center on an exceptional customer experience – People, Products,Place, Price and Promotion. We are committed to continuously improving ouroperations and enhancing our customers’ experience.” 1.6 Productand Service Provided McDonald’s providesmainly food and beverage products.
This element of the marketing mix covers thevarious organizational outputs (goods and services) that a company provides toits target customers. McDonald’s product mix has the following main productlines:1. Hamburgers and sandwiches2. Chicken and fish3. Salads4. Snacks and sides5.
Beverages6. Desserts and shakes7. Breakfast/All-day breakfast8. McCaféMcDonald’sis primarily known for its burgers. However, the company expands its productmix through time. At present, customers can purchase other popular productslike chicken and fish, desserts, and breakfast meals. This element ofMcDonald’s marketing mix indicates that the firm innovates new products toattract more customers.
1.7 Tagline ‘IM LOVIN IT’ Theadvertising blitz marked, surprisingly, the first time the venerable fast foodcompany had ever used a single message and set of commercials worldwide at thesame time. LEADERSHIP High demand from customer make McDonaldbecome a success company like today. The effective of strategies that McDonaldused very efficiently by follow the culture of each country.
Such as, in India there is no Beefbecause most people in India is adherent of Buddha and in US they sell a baconthat made from pig that cannot be sell in Malaysia because most of people inMalaysia is Muslim. Furthermore, based on strategy of business level forintegrated Cost Leadership differentiation McDonald stay ahead of competitionby providing customer with more option of healthier meals, cheaper prices, andfast service. Product innovation and existing as property upgrade (McCafe,smoothies, and free Wi-Fi internet.
) Hence, the environment inside the McDonaldis more comfortable that makes customer likes to spend time chilling and dine.Moreover, Mcdonald’s provide Drive Thru service that easier for customer to buytheir food so that the customer did not have to line up the long queue. So inthat case, that’s why people prefer Mcdonald than other fastfood. 3.0SWOT ANALYSIS 3.
1 Strenghtens McDonald’shas successfully rolled out new items like coffees, smoothies, and Angus burgers,expanding the range of menu choices. With a strong product offering, thecompany has grown income throughout the recession, notching strong increases insame-store sales. Operations are spread around the world, meaning the companyis not exposed to just once currency or economy.
Even trading near its highs,McDonald’s serves up sizzling dividend yields that top the 10-year Treasury.The yield comes with a side order of annual dividend hikes dating back to 1976.The annual dividend payment has gone from 55 cents per share in 2005 to $2.20this year. 3.2 Weaknesses Itwill be harder and harder to find prime locations to build a set of goldenarches. The U.
S. is saturated with its restaurants, so growth will have tooccur internationally, posing potential cultural challenges. While the annualdividend hikes are likely to continue, the dividend growth rate has beenslowing and will probably continue to slow or level off. 3.
3 Opportunities Thereare opportunities for new restaurants outside the United States, and McDonald’shas been taking advantage of them. China is a great opportunity for thecompany, as is much of Asia. Menu innovations are limited only by imagination. Lowinterest rates provide cheap capital for growth. In addition todollar-denominated debt, McDonald’s recently became the first foreign companyto issue yuan-denominated bonds in Hong Kong.
3.4 Threats Governments are considering regulations targetingfast food. McDonald’s faces competition from strong peers. New product rolloutsoften have to go head-to-head with established players like Starbucks. Commodityprice increases could increase costs while a weak economy limits the ability topass the price hikes through to consumers.
4.0RECOMMENDATION McDonald is a one ofworld-famous restaurant in global level but every advantage have there are owndisadvantage. Majority perception public of the restaurant is selling anunhealthy foods. Most of the foods that McDonald offers is hamburger that makepeople assume it is less health. This is why my group wants to suggest a way toMcDonald provide their foods by add healthier menu. It will changes people’sperceptions to McDonald’s and it’s also can maximizes profit.
In this way, towhom that cares about their health will buy it with open heart. Next, we recommend thatMcDonald should train their employees so that they work effectively andeffiency. This can improve the performance of each worker as well as preventcustomers from getting the wrong order and waiting for a long time. In thisway, it will helps the worker to work well.
Additionally, McDonald’s whoprovide drive-thru services can reduce their problems with long-awaitedcustomers as they work well.In addition, werecommend that McDonald should create an application where customers can placeorders at home and take their orders at the restaurant. Therefore the customerno longer needs to queue at the restaurant and can also avoid mistakes whentaking orders. Customers also do not have to wait to take their order in therestaurant. This application will simplify and save the busy working hours ofcustomers and have no long breaks in the office.