Case Study Of Mcdonalds

Improved Essays
An overview of a multinational company

McDonalds is one of the most successful Multinational Cooperation (MNC) in the world, worth $92.8 billion dollars. It started in 1940 by 2 brothers, Dick and Mac McDonald 's. It caters to over 68 million customers daily in 119 countries across 35000 outlets worldwide. These numbers are still increasing. According to a 2012 BBC report, McDonald 's is also the world’s second largest employer with 1.9 million employees, 1.5 million of which work in the franchise (James, 2009). In 2012, the company earned $27.5 billion in revenue and profit of $5.5 billion annually. This essay will cover the reasons for McDonald’s ongoing success, growth factors contributing to its success and problems it has faced and how
…show more content…
For example, during the Chinese New Year festival, McDonalds will introduce the famous prosperity burger, an item many look forward to during that time of the year. Items such as filet-o-fish, apple pie and Big Mac have been evolved over many years in order to meet the preferences of customers. Another example of games is the popular Monopoly game in McDonalds, giving customers a chance to win prizes. This attracts customers to eat at McDonalds, hoping for a chance to win those prizes. In 1975, soldiers were not permitted to come out of their vehicles in their fatigues. So McDonalds came up with the drive-thru (Bailey, 2014). The MNC continues to attract customers by meeting their needs. James Skinner emphasized in a 2010 interview, “ (McDonalds) does not put something on the menu until it can be produced at McDonald’s speed.” Thus innovation has contributed greatly to McDonalds ongoing …show more content…
One reason is meeting demands of the customers and the changing food preferences. McDonald has established different menus to meet the demands of different countries. For example, in Singapore and Malaysia, McDonald outlets went through detailed inspections by Muslim clerics to ensure all items used are halal and pork free (Watson, 1997). This is because Singapore is a multi-religious country, home to citizens of various cultures. McDonalds respects the culture of every religion thus allowing the franchise to cater to a larger market. McDonald has also established items to cater to customers of all age groups. For example, Dick Brams introduced Happy Meal to appeal to young children in 1979 (Webley, 2010). It began with a Circus Wagon Train theme which included toys such as a McDoodler stencil, puzzle lock, McWrist wallets and more. The toy in the meal became the key to the Happy Meal success. It attracted children and even adults to collect the season’s Happy Meal series. Thus, contributing to its success. Another factor McDonald has adapted to the changing food preference among customers. Recently, customers are becoming more cautious of their health and eating more healthily. Adapting a healthy diet has become a priority for many, so McDonalds has added new items on the menu such as salad and corn so as to attract this group of customers. This has retained customers through the

Related Documents

  • Improved Essays

    With young children only wanting the toy, parents have no reason but to purchase their food to keep their little one happy. Even when there are important sporting and media events, fast food chains design marketing to promote their foods. Celebrities as big as Beyoncé have participated in commercials to advertise fast food. If Beyoncé likes to Whoopers from Burger King, then sales will soon be through the roof to buy that…

    • 937 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    The advertisement uses pathetic appeal within the two largest elements, the picture of the lunch box and the print "Cheer up your lunch" (Nabisco). Clever businessmen are trained to use marketing tactics to attract buyers. Adults are always reminiscing carefree and lighthearted times of youth, so the slogan and the lunch box are great reminders of childhoods. Children who view this advertisement will also become interested in Oreo because of the grinning smile on the lunchbox. Because Oreos have been around for over a hundred years, the marketers who create advertisements have taken advantage of Oreo’s seniority in the food business in sending the message that Oreo as a friend that has always been there to save our unappetizing lunches.…

    • 1996 Words
    • 8 Pages
    Improved Essays
  • Great Essays

    (theAustralian) The brand has one of the strongest marketing schemes, ranked third in Global Marketing Brand Effectiveness and has a most sophisticated, extensive and integrated communication strategy. (digitalagency) (thedailylife) McDonald’s has the largest brand value out of any fast food industry, with a total worth of US$81,162 bn. With the progression of CYT campaign, Dr Rohan Miller believes that McDonald’s is moving towards a higher market niche. (abc.net) IBISWorld indicates that McDonalds as a fast food chain, holds a 16.5% market share of the $15 billion fast food industry in Australia. (theAustralian) (ibisworld) After a 7.4% decrease in revenue, McDonald’s launched McDelivery which does as the name suggests, then again in 2015 introduced Create Your Taste, increasing revenue by 2.2% and $2.35 billion.…

    • 1176 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    Yum Brands Case Study

    • 890 Words
    • 4 Pages

    In terms of numbers of locations YUM! Brands is the largest fast-food operators in the world with over 43,500 stores throughout some 135 countries. While being one of the leading companies in the restaurant business, Yum! Brands still continues to fall to one major corporation, the McDonalds Corporation. More ever, with around 8,000 stores less than YUM!…

    • 890 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    McDonalds had studied the manners of the Indian clients and totally provided various menus as compare to its menu presented in world market. The company eliminates beef, mutton and pork burger from their menu. India is just country wherein McDonalds offer vegetarian menu. As well as the cheese and sauce use are pure vegetarian. The company constantly improves its product and service in accordance to the fast changing desires and tastes of its consumers.…

    • 1586 Words
    • 7 Pages
    Improved Essays
  • Improved Essays

    The McDonald’s corporation is an ever-so expanding company that is found in 118 different countries and serves sixty-eight million customers each day. It is the world’s largest owner of retail property. McDonald’s was founded in 1948 by Dick and Mac McDonald. The first restaurant was opened in Des Plaines, Illinois and the company’s motto was “Quality, Service, Customers, and value,” in which they still adhere to that motto today. By 1963, McDonald’s had sold one billion hamburgers and their net income exceed one million dollars.…

    • 1831 Words
    • 8 Pages
    Improved Essays
  • Improved Essays

    People can order whatever type of food they want and stay at home and save a lot of time, people that don’t have a lot of free time and that are always busy will benefit from the home delivery services, only a few branches of McDonalds around the world provide home delivery services. McDonald’s introducing this method of delivery would increase the number of customers willing to buy their products. The other opportunity that McDonalds has to take is by making their business more recognizable and profitable by taking the initiative to make the organization's life span longer and help them achieve their goals, they first need to create a plan to make a positive open picture in the local community. They can also encourage employees to look and act their best so that the customers will feel more welcomed.…

    • 1008 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    In fact, McDonald’s is trying to do in this way. In updating McDonald’s menu and advertisement, healthy items and signs appears. Mc Cafe and Mc delivery service has more space to be developed. Faster delivery and better service will be welcomed by more and more customers. McDonald’s could improve its public image to attract more customers, not only provides more healthier food, but also create jobs and join into more charity events to improve public image.…

    • 1065 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    Who Is Mcdonald's?

    • 1214 Words
    • 5 Pages

    They expanded their brand everywhere, I mean malls, train stations even in stores such Macys. Price is important meal prices and an area means or an average income. Cheaper prices attract families and students so if the price is right people are bond to come. Promotion and Advertising is a strong part of how they keep their power. They are everywhere YouTube, Instagram Facebook.…

    • 1214 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Thompson denies any claims made by consumers and health critics that McDonald’s food leads to childhood obesity. In an interview with Bloomberg TV, Thompson says “I am a parent of two children. I know what my kids eat. I would bring my kids to McDonald’s then and I would bring them now because the food is high-quality, safe, and they have choices” (Lutz). Well, if the big CEO is claiming all this stuff, it has to be true right?…

    • 1134 Words
    • 5 Pages
    Improved Essays