Essay About Mcdonalds Corporation And Mac Mcdonald

Mac Donalds
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INTRODUCTION: McDonalds Corporation is the worlds leading food service organization. The corporation started out as a small drive-through in 1948 by two brothers, Dick and Mac McDonald. Raymond Albert Kroc, a salesman, saw a great opportunity in this market and advised Dick and Mac to expand their operation and open new restaurants. In 1961 Kroc bought out the McDonald brothers. By 1967 McDonalds expanded its operations to countries outside the U.S.A. This unyielding expansion led the Corporation to open 23,000 McDonalds restaurants in 110 countries in 1994, producing $3.4 bn in annual revenues. In addition, McDonalds opens a new restaurant every three hours. Also, McDonalds has twice the market share of its closest U.S. competitor, Burger King, representing 7% of total U.S. eating-out sales. Similarly, McDonalds serves about 1% of the worlds population on any given day through its 23,000 restaurants internationally. Big Mac, the worlds most sold hamburger was developed by Jim Delligutti in 1967 to feed construction workers. Big Mac is the biggest attraction and backbone of the corporation. Moreover, McDonalds maintains its competitive advantage by constantly creating new items to add onto its menu. This shows us that McDonalds practices an analyzer type of strategy, introducing new items and defending its existing ones. McDONALDS MISSION AND VISION: We serve people with good quality food, fast and at low cost. McDonalds vision is to dominate the global food-service industry. Global dominance means setting the performance standard for customer satisfaction and increases market share and profitability through successfully implementing our convenience, value and execution strategies. THESIS STATEMENT: To have a clear picture of McDonalds corporation we need to look at its Task Environment, which includes its: .Customers .Competitors .Strategic Allies .Suppliers .Regulators We shall also explore McDonalds Workforce Diversity and its Total Quality Management. CUSTOMERS: Customers are those who pay money to acquire an organizations goods or services. For many years McDonalds mostly targeted the young people, however this has changed in this decade; McDonalds has turned towards a more general market. By doing this McDonalds concentrates on the family, targeting a diverse market which includes consumers ranging from children to elderly people, using products such as the happy Meal for children and Egg McMuffin for the elderly. McDonalds also realized the changing world we live in and the need for healthier food, since there is an ever changing demographic group, who demand fast, top quality food that is low in calories. McDonalds responded to this opportunity and introduced a new and innovative product. This new product was a regular hamburger that tasted like the real thing but was made of plant material like Soya beans. This same product also targets another demographic group, vegetarians. McDonalds mostly uses psychographic segmentation targeting the working and middle classes. These are the people that are more susceptible to enter a fast food restaurant, since these are the people that lead a fast moving life and thus require a fast meal. In brief McDonalds customers are of all classes, but largely working and middle classes, and people of all ages. COMPETITORS: A competitor is an organization that competes with other organizations for resources. In our findings, McDonalds has two types of competitors in the Lebanese market: ..Indirect ..Direct Indirect Competitors: Indirect refers to firms producing one or two products that compete with McDonalds products and therefore be a threat to the company. We have identified four indirect competitors: Henry J. Beans, T.G.I. Friday, K. F. C. and Popeyes. Henry J. Beans offers hamburgers and fries on its menu, therefore competing with McDonalds for customers of these products. However, Henry J. Beans also known as Hanks is a more of a bar restaurant and therefore a hang out place, as a result charging more money for its products. Hanks targets middle to upper class customers, so where most of these customers overlap are in the middle class. T.G.I Friday is another indirect competitor reflecting the same characteristics as Henry J. Beans. Other indirect competitors are K. F. C. and Popeyes, both competing for the chicken nuggets and fries customers. In brief, Hanks and T.G.I. Fridays competes with McDonalds by offering hamburgers and fries, whereas K. F. C. and Popeyes compete with McDonalds by offering chicken nuggets and fries. Direct Competitors: Direct competitors refers to firms producing the same products or services as McDonalds does. Here we found that McDonalds has three direct competitors: Burger King, Wendys and Hardees. McDonalds closest rival is Burger King, which operates a total of 9644 restaurants in 110 countries. Wendys is McDonalds second largest rival, which is also in the fast food business, where Wendys operates 6776 restaurants in 32 countries. Hardees, McDonalds third largest rival is also in the fast food business and is the only direct competitor apart from Juicy Burger in the Lebanese market. Hardees operates 3080 restaurants in 20 countries. As we have illustrated McDonalds faces stiff competition from three major competitors, Burger King, Wendys and Hardees. Suppliers: Suppliers is an organization that provides resources for other organizations. McDonalds has practiced a backward vertical integration, by replacing most of its suppliers. It has done so for two reasons, 1) To reduce costs, and 2) To ensure that its products are of top quality. These supplies include beef and milk to be used in its products, which it gets from its farms. Other suppliers include local grocery stores that supply McDonalds with fresh vegetables. Soft drinks are supplied exclusively by Coca-Cola, which is also its ally. McDonalds supplies also include raw material such as flour, sugar, yeast, etc.,. Strategic Allies: A strategic ally is an organization working together with one or more other organizations is a joint venture or a similar arrangement. McDonalds has formed a strategic alliance with: Walmart, Chevron, Amoco, Disney and Coca-Cola. Walmart, which is a large shopping mall chain in the U..S. and several neighboring countries, is allied with McDonalds, which offers great opportunities for both companies. McDonalds has restaurants in each Walmart, offering its customers conveniences and excellent fast food at a low cost ease of accessibility. McDonalds corporation describes it best in this scenario: Imagine a busy shopping day at your local Walmart and having the ability to sit down with