Introduction
Dick and Mac McDonald, they are the two who founded the first drive-in and self-service restaurant in California, US in 1940. As we all know McDonalds is one of the most popular and successful fast food restaurant in whole world. They are running their business almost in all countries and they are doing really good and holds a good position in the market. Approximately they are having 32,000 local restaurants all around the world and also they are serving near about 60 million people in 117 countries of the world. Their brand logo and brand name is very much popular among people all over the world.
Issues
1. Competitors – As there are many other restaurants who are trying very hard to compete with McDonalds like KFC, Burger King, and Burger Fuel etc. They are also serving people with same kind of services like McDonalds and burger king is really giving a tough competition to McDonalds at the moment.
2. Religious Views – As we know that some people are vegetarian’s and they don’t like to go such places. As McDonalds is using lot of beef to make their beef burgers and chicken as well. So this thing can also affect their business. Like if they will introduce their beef burger in India it will not be a good option as people don’t eat beef in India because of their religious values.
3. No New Products – In last year everyone is expecting that McDonalds will launch some new product to add in their menu like Wendy’s did they added a miracle product in their menu but
Well, first off, Mcdonalds is a well popular fast food restaurant that has boomed over the years. While the past years, there's been a well popular fast food restaurant that many people are beginning to enjoy. They have many things similar while all that’s happening, they have lots of things one has that is overwhelming the competition. Mcdonalds is a way better and more efficient fast food restaurant.
McDonald’s has an advantage as they offer vegetarian burgers as substitute which Burger King doesn’t offer.
McDonald’s corporation started in 1944 as a drive-in restaurant in California. This single location was started by Dick and Mac McDonald. That location was altered in 1948, when the start of the 19 cent cheeseburger became popular. They had continued growth over the years and by 1965 there were over 700 restaurants in service. Since that time they have grown dramatically. As of 2011, they are operating in 119 different countries. They have more than 35,000 restaurants and over 1,8 million employees. McDonald’s direct competitors are Burger King and Yum brands (Taco Bell, KFC, Pizza Hut). Forbes profile describes McDonald’s as “As of December 31, 2011, of the 33,510 restaurants in 119 countries 27,075 were franchised or licensed (including 19,527 franchised to conventional franchisees, 3,929 licensed to developmental licensees and 3,619 licensed to foreign affiliates (affiliates)-primarily Japan) and 6,435 were operated by the Company. McDonald's menu includes hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, Snack Wraps, French fries, salads, oatmeal, shakes, McFlurry desserts, sundaes, soft serve cones, pies, soft drinks, coffee, McCafe beverages and other beverages.” They are considered #6 by Forbes on the World’s Most Valuable Brands. Their dollar menu and attention given to children’s products in their much marketed Happy Meal’s have brought them much attention and wealth.
“The foods contain too much fat, salt and sugars. The food is not always what is said to be and uses a lot of packaging.” First, Mcdonald’s has many different food selections but many of them don’t have the real ingredients on them. Not only do Mcdonald’s stores show up on every corner of the united states, they also have unknown animals involved in the process of making your lunch, dinner, and breakfast. “Packaging that will be thrown on the ground, if the food is not eaten within the restaurant people usually don’t take the time to throw the packaging in the dustbins.” Since,
McDonalds is less of a restaurant, and more of a vicious entity. This friendly restaurant is making its way into every aspect of our society with poorer education, horrible customer service, and so on. The problem being that our culture is embracing these traits and behaviors of McDonalds, society is becoming lazier and focusing on quantity instead of quality. There are four dimensions of McDonaldization that highlight how it is impacting societies worldwide: efficiency, calculability, predictability, and control. Efficiency is getting from one place to another the quickest way possible, calculability is when bigger quantities are better, predictability is when things are the same in terms of taste etc.
McDonald's restaurants feed more than a million of peoples around the world everyday. Almost everyone in the United States will see the Golden Arches( symbol of McDonald’s) every where; whether, they are on their way back home from work or going somewhere. The reason why peoples starting to like McDonald more and more are because of the restaurant location, food cost and
are the worlds second-largest international fast food restaurant. Employees at McDonalds have a very low wage. With a low payments you can't really proceed anywhere and you barely make it to a next paycheck because you have to pay rent, bills and buy food for you and your family if you have one. Also, McDonalds makes so much waste product a year that is no joke. The hamburger at McDonalds are made horribly. Beefs are not real beefs they are something that just tastes
Despite of providing good quality product people might not be attracted towards the product because McDonald's does not have any past experience in this product. People associate McDonalds with Hamburgers. So this positioning may result in relatively little response in start and it may take more time to grab the market than expected.
The positioning of McDonald’s was as a family restaurant and also it’s being made as children friendly’s place. Their main focus was getting on price penetration.
McDonalds obtained an additional customer base and this had a positive impact on sales. Also McDonalds have sponsored past Olympics and this increased the demand of a product especially the Big Mac, they also gained free publicity and this also increases the customer base. This avoids customers to switch to competitors and this means that they will obtain a healthy and stable profit for the future. In the past year if a customer bought a meal from McDonalds the customer would receive a cup as part of their purchase. This increased the amount of customers they get and it also made McDonalds stand out from its competitors. A unique selling point of products differentiates McDonalds from its competitors because they will be more customers visiting the restaurant and this will result to increase of sales.
The best way to describe McDonalds position in the market is that every company has its peak and McDonalds has hit its peak. Started in 1940 by Dick and Mac McDonald in San Bernardino, California. However, it didn’t start as a burger joint, it actually started as a BBQ joint. Moving to the financial standing of McDonalds, currently they aren’t doing to well, but they are making progress. McDonalds released its results for second quarter:
What major organizational behaviour issues are multinational corporations facing currently and in the near future? Select either McDonald’s OR Subway OR another well known multinational corporation with a high profile in Australia for your answer. Ground your responses in relevant behavioural theories.
The weaknesses of McDonalds include competitors and nutrition concerns. McDonalds failed attempt at pizza limited their ability to compete with fast food pizza franchise. Price competition with the competitors is also resulting in lower revenue for McDonalds. McDonalds also lacks variation in seasonal products that they offer. Another weakness, which has actually stemmed from McDonalds large size, is a lack of personal touch or connections. McDonalds has a very high turnover rate which in the end elevates the cost of training staff. There are also concerns that franchised operations negatively affect the food quality. McDonalds has also had a lack of innovation.
McDonalds's is one of the most powerful, influential, and well-known global companies. In the late 1940’s, Dick and Mac McDonalds were searching for a way to improve their little drive-in restaurant in San Bernardino, California. They invented an entirely new concept based upon speed service (fast food) and low prices. McDonald’s is now the largest and best-known foodservice and one of the best-known and powerful brands in the market.
The fast food industry is a highly competitive environment. For a leading chain such as McDonalds they always need to be thinking ahead about the competition and how the economy affects their industry. Although McDonalds is one of the biggest fast food chains they have to be aware of new companies entering in to the market, mergers, globalization, pricing, and how to continuously sustain their profits. By being aware of these main points they stay ahead in their market. Next McDonalds must regulate themselves in regards to global