Mcdonald's Corporation: The Case Study Of Mcdonalds

1831 Words 8 Pages
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. In 1967, McDonald’s made its first move outside of the US to Canada and Puerto Rico. McDonald’s mission statement is as follow, “Our worldwide operations are aligned around a global strategy called the Plan to Win, …show more content…
On the other side, low start-up costs make it easy to compete in the industry for new businesses. On a global scale, McDonald’s are in an advantage due to McDonald’s having such a high brand loyalty. Since McDonald’s brand loyalty is so high, it makes it hard for new entrants in the market to pose a threat. Being in the fast food industry, there are a lot of threats from substitutes. Everything from meals prepared at home, to dine-in restaurants pose a threat to companies such as McDonald’s. Customers are now becoming more aware of the health conscious and now other healthy substitutes are becoming more appealing. In order to cater to this new demand, McDonald’s has implemented more salad and wraps to appeal to this new demand. The power of suppliers for McDonald’s is at a moderate level. The prices that are charged by suppliers are a major factor that affects net income. Since the supplies are commodities, the suppliers do not have the power to charge more than the market so that leaves the company unable to bargain for cheaper products. McDonald’s excels in their relationships with their suppliers which contribute to McDonald’s being able to obtain large quantities of supplies when they need them. The power of buyers is also at a moderate level due to McDonald’s customers not having the influence to effect prices directly. McDonald’s customers do somewhat influence the prices indirectly through their opinions and influences through others. Social media and health concerns have caused McDonald’s to be viewed negatively in some people’s eyes. Companies such as McDonald’s have to focus and adhere to social regulations such as promoting quality standards, and enhancing their brand reputation so that their customers feel safe and satisfied with consuming their

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