Mcdonald Porter's Pest Analysis Essay

McDonald’s, founded by Ray Kroc, is now one of the most popular fast food restaurants across the world. They’ve proudly served more than 46 million customers in

Now, in 1954, a man named Ray Kroc joined McDonald’s and helped create it into a fast food empire by spreading the idea of the Speedee Service System nationwide. He had originally went to McDonald’s to convince the brothers who owned to by his milkshake machine, but fell in love with their Speedee Service System. He convinced the brothers to let him buy the franchise and helped developed the business nationwide. After finalizing the agreement, he wrote to his old friend, Walt Disney to ask if he (Kroc) could place a McDonald’s in his amusement park, Disneyland. Disney forwarded the idea to the executives over the park and in return the executives demanded that Kroc raise the prices on the food so that they could make a profit off of it. Kroc refused.

Since Richard and Maurice McDonald founded in 1948, McDonald's has grown from a small restaurant in California into one of the most recognized brands in the world with a chain of outlets that spans the globe. For over 50 years, McDonald's defined the fast food industry while indelibly etching its golden arches logo on the face of both American and global culture through such icons as character Ronald McDonald and the Big Mac sandwich. Millions of people started their very first jobs at McDonalds while even more began to have their eating habits redefined by the chain. Concepts like the drive-thru window were introduced along with the Happy Meal for children in order to provide a fast, affordable, and enjoyable dining. Ray Kroc, saleman

Fast food is a mass production that is fast and efficient for busy families or individuals. South Africa has a growth in development of Fast foods and two of our leading competitors are McDonald’s and Burger King. By analysing these two company backgrounds and looking at the Market environment and using/ performing a Porters Five Forces Model on them will give us a better understanding on which is the leading fast food. By placing strategies in place will help the ‘unsuccessful’ company improve their current business status.

McDonalds was first incorporated in the year 1955 in USA with a single restaurant. Currently, McDonald has transformed to be the biggest and the fastest growing in the industry of fast food services (Employee handbook, 18). The corporation sales are now at a staggering $30 billion an year contributed by the 21,000 stores that are located across 101 different nations around the world. The success of the corporation has been as a result of a great contribution by the company’s management where there has been application of new ideas to give the corporation an upper edge in the market. On analysis of the company’s blueprints, a projection has been made where the corporation

McDonald’s has been in business since 1955. Through many years of great strategic and financial planning, it has become one of the most successful food chains in the world. In order to continue its great success, McDonald’s must continue to adapt to change. In this paper we will discuss the strategic and financial planning that would be necessary to keep McDonald’s on top of the food chain.

McDonald’s is the largest chain of fast food Corporation in the world, has become a global most valuable brands. The business began in 1940, with a restaurant opened by siblings Dick and Mac McDonald in San Bernardino, California. Is the world 's largest chain of hamburger fast food restaurants, serving more than 58 million customers daily. In addition to its signature restaurant chain, McDonald’s Corporation held a minority interest in Pret A Manger until 2008, was a major investor in the Chipotle Mexican Grill until 2006. And owned the restaurant chain Boston Market until 2007. It employed more than 418000 people in the world.

McDonald’s has been a staple in the restaurant business for as long as most of us can remember. It has achieve around the globe, but not without overcoming a fair amount of challenges in its pursuit of the title “King of Fast Food”.

“McDonald’s.” When people hear that word, the first things they visualize are the Golden Arches, the Big Mac, or Ronald McDonald. McDonald 's has had a profound effect on the fast-food industry and on the U.S.; in the 20th century, the creators/owners of McDonald 's, Richard McDonald, Maurice McDonald, and Ray Kroc (a traveling salesman) created the Speedee Service System, which made restaurants like a factory, and improved on franchising, an easy way to set up businesses and make money. Other restaurants began basing themselves off of McDonald’s. As of McDonald’s influence on America: “We believe that the McDonald’s brand is… omnipresent… in America,”

Because McDonalds is such a known-worldwide corporation, you have to wonder what kind of man was brilliant enough to come up with the idea. Ray Kroc is the man behind the yellow arches. Ray Kroc was born in 1902 and was known for having various jobs until 1954 when he visited a San Bernardino, CA restaurant and was impressed by how effective and organized the operation of the restaurant was (Ray). He admired their “limited menu… which allowed them to focus on quality and quick service” (Ray). So in 1955, Kroc presented his idea of building McDonald’s restaurants across the country and founded McDonald’s System, Inc. (Ray). Kroc was very successful even from the beginning seeing that as of 1958, the 100 millionth burger had been sold by McDonald’s (Ray). Since then McDonalds has expanded considerably and has caused Americans to affiliate their yellow arches with hamburgers and quick

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McDonald’s began as a barbeque, and the brothers strictly offered burgers, fries, and pop. Ray Kroc heard about McDonald’s one day and went to visit the restaurant. Kroc was surprised by their efficiency and the quality of the food. Kroc liked the fact that the brothers could focus on the quality of food, due to the limited menu items. Subsequently Kroc realized their success could amount to much more and shared his vision. Kroc told the McDonald brothers that McDonald’s could be a national business serving people across the country. (At this point, Kroc did not even think about being international). Dick and Mac were thrilled with what they heard, so in 1955 Kroc founded the McDonald’s Corporation and opened the first McDonald’s in Des Plaines, Illinois. By 1960 Kroc had bought exclusive rights to McDonald’s. In 1961, Kroc developed Hamburger University where new employees were trained on how to run a successful McDonald's. Kroc wanted to develop the most efficient methods to store, cook, and sell food, so he had a laboratory built at Hamburger University where students' test different ways to make McDonald's more productive. Hamburger University is still in use today in the search for ways to better McDonald’s. McDonald’s had their first sit-down restaurant in 1962, and then in 1975, McDonald’s had opened their first drive-thru restaurant in Arizona. The first drive-thru restaurant was

McDonald has been a well-known and valuable brand for over half a century. The company’s mission and vision is striving to be the world’s best quick service restaurant and formalizing their beliefs into “People, Vision, and People Promise”. “Quality, Service, Cleanliness and Value” also became the company’s motto. The company’s first McDonald store was built “in 1940 by the original McDonald brothers, Dick and Mac. Later in 1954, Ray Kroc became the first official franchisee appointed by Dick and Mac McDonald in San Bernardino, California” (Chandiramani, Ravi). Soon after, Mr. Kroc opened his first restaurant in Des Plaines, Illinois, and the McDonald’s corporation was created. The new franchise began to grow rapidly as a result of its

Since McDonald’s is the most well know fast food chain in the world with a market cap of 69.35 billion, brand recognition is their biggest strength. The secret of McDonald’s success is its willingness to innovate and maintain consistency in the operation of its many outlets. In recent years McDonald’s has introduced Premium Salads, Snack Wraps, fresh Apple Dippers in the United States, and Corn Cups in China. Also, McDonald 's products are priced so low that economic conditions are almost insignificant.

The McDonald's global position in the market of fast food is result of the company's effectiveness to respond to the five forces in the industrial environment. When analyzing the five forces of the McDonald, the focus is on the industry of fast food restaurants. The industry environment interacts with McDonalds to influence the company's potential and success. The analysis of Porter's five forces McDonalds is as under:-