1.0 brothers Richard and Maurice McDonald began working

1.0       INTRODUCTION OF THE COMPANY

1.1       History

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”

The advertising blitz marked, surprisingly, the
first time the venerable fast food company had ever used a single message and
set of commercials worldwide at the same time.

           

 

 

2.0
LEADERSHIP

 

High demand from
customer make McDonald become a success company like today. The effective of
strategies that McDonald used very efficiently by follow the culture of each
country.

Such as, in India there is no Beef
because most people in India is adherent of Buddha and in US they sell a bacon
that made from pig that cannot be sell in Malaysia because most of people in
Malaysia is Muslim. Furthermore, based on strategy of business level for
integrated Cost Leadership differentiation McDonald of competition by providing
customer with more option of healthier meals, cheaper prices, and fast service.
Product innovation and existing as property upgrade (McCafe, smoothies, and
free Wi-Fi internet.) Hence, the environment inside the McDonald is more
comfortable that makes customer likes to spend time chilling and dine. 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,
McDonald provide Drive Thru service that easier for customer to buy their food
so that the customer did not have to line up the long queue. So in that case,
that’s why people prefer McDonald than other fast-food.

 

 

3.0 SWOT ANALYSIS

3.1       Strengthens

McDonald’s has
successfully rolled out new items like coffees, smoothies, and burger, expanding
the range of menu choices. With a strong product offering, the company has
grown income throughout the recession, notching strong increases in same-store
sales. Operations are spread around the world, meaning the company is 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 $2.20
this year.

 

3.2       Weaknesses

It will be harder and
harder to find prime locations to build a set of golden arches. The U.S. is
saturated with its restaurants, so growth will have to occur internationally,
posing potential cultural challenges. While the annual dividend hikes are
likely to continue, the dividend growth rate has been slowing and will probably
continue to slow or level off.

 

3.3       Opportunities

            There
are opportunities for new restaurants outside the United States, and McDonald’s
has been taking advantage of them. China is a great opportunity for the
company, as is much of Asia. Menu innovations are limited only by imagination. Low
interest rates provide cheap capital for growth.

 

3.4       Threats

Governments are
considering regulations targeting fast food. McDonald’s faces competition from
strong peers. New product rollouts often have to go head-to-head with established
players like Starbucks. Commodity price increases could increase costs while a
weak economy limits the ability to pass the price hikes through to consumers.

 

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.