ABOUT
1. History begins:
- McDonald's is a group of fast-food restaurants with about 36,000
restaurants in 119 countries. Every day, McDonald's is estimated to serve
nearly 70 million customers in more than 100 countries. With its
influence, McDonald's has expanded to many countries and began to
license development in 65 markets around the world.
- McDonald's was first established in 1940, by brothers Richard and
Maurice ("Mick & Mack") McDonald as founders. The foundation of
today's successful business was acquired by Ray Kroc from the
McDonald brothers and developed into one of the most successful fast
food ventures in the world.
- At that time, Ray Kroc specialized in the blender business and was quite
successful in this business. After World War II, Ray Kroc's business
faltered, but he discovered that a small McDonald brothers' California
restaurant still bought a lot of smoothie machines, even more than the big
stores. In America, the city is busier.
- Ray Kroc decided to visit the McDonald brothers' store and found it to be
a special business model. Customers choose from a very simple pre-
determined menu. The baking process is arranged in a very scientific
way, making the completion of the dish extremely fast. Customers choose
the food, pay at the cashier and also receive the food there. Witnessing
the terrible customer base of McDonald's, Ray Kroc immediately
envisioned a scenario when expanding McDonald's to all major cities
across the United States.
2. Brand Positioning:
- Logo of “Mcdonald’s” :
+ From the very beginning, McDonald's considered the Logo an important
element of the brand. McDonald's is widely known for its great logo
design, which is simple and recognizable to customers. From colors to
typography, everything is carefully selected.
+ McDonald's logo design is famous for its prominent “Golden Arches”.
Yellow, which is the most visible color in daylight. That's why we can
see McDonald's from afar.
+ McDonald's side wants to give its customers a different message. Before
that, in the 1960s, in an effort to rebuild its image, the company invited
Donald Cheskin – a design consultant to help them change the logo.
Almost immediately he convinced them to keep their logo original.
Because according to him, the letter "M" with a circle on top helps people
associate a woman's breasts and makes them feel hungry. This may seem
unbelievable to many people, but surely after knowing this, we will see
that “M” in a completely different way.
+ As a result, the McDonald's brand was forever remembered as the most
successful fast-food restaurant chain in human history.
3. Franchise model:
“According to the usual McDonald's franchise agreement
Franchisees provide a portion of the required capital by making an initial
investment in the equipment, signage, seating, and decoration of the
restaurant business and by reinvesting in the business over time.
The Company typically owns the land and office buildings or signs long-
term leases for both conventional franchised restaurant locations and
Company-operated restaurants.
McDonald's retains control of the land and/or long-term leases to
leverage its market position to negotiate deals. At the same time, this type
of agreement acts as a link between the company and the franchisees
4. McDonald's in Vietnam:
Present in more than 118 countries with a chain of 35,000 restaurants on
all continents, every day, McDonald's globally serves more than 70
million consumers, not only ensuring to bring them delicious, safe, and
hygienic meals. , but also make them satisfied with McDonald's service.
In 2014, McDonald's came to Vietnam, becoming the first fast food brand
present in our country. At this time, McDonald's was welcomed and
responded to very warmly by the people. Opening the first store in
Vietnam named McDonald's in District 1 (HCMC).
---SWOT---
Strengths – Strengths of McDonalds
Most Valuable Brands – These are the key strengths of the brand:
McDonald's is the 10th most valuable brand in the world. Having
incredible brand value, the company has strong competition and
dominates the restaurant industry. McDonalds is a popular outlet and is
available in many places. Possessing excellent service and products, this
is truly the most valuable brand in the fast food industry.
International network:
Having an international presence is one of the strengths of the brand. The
company has a wide presence in about 100 countries, and it has both store
types as a maintained company and licensed stores in its international
network.
Sales from global market:
The company focuses on high growth markets in addition to established
markets. McDonald's established markets are in the US, UK, Canada,
Australia, France and Germany. High growth markets have more
potential for expansion in regions such as Italy, China, Poland, South
Korea, Switzerland, the Netherlands and Russia. These countries are
McDonald's top markets. McDonalds is planning through franchising to
enter other markets.
Good food:
This is another strength of McDonalds. The food of this fast food brand is
liked by everyone and is very tasty. McDonalds is known for the best
fries in the food industry.
McDonald's is a real estate company:
Most of us don't know that in addition to burgers and fries, McDonalds
also owns a billion-dollar empire in real estate. McDonalds stores have
many beautiful locations around the world. This is indeed a great strength
of the brand.
Supply chain management
McDonald's has a large supply chain. Its supply chain includes many
independent suppliers. Brands along with source equipment, franchisees'
food and other essentials from their suppliers. To ensure that quality is
maintained, the company has adopted great quality standards and various
food safety measures.
Weaknesses - McDonald's weaknesses:
Depends heavily on the franchise:
McDonalds business model is designed to rely more on franchise brands.
These companies primarily operate about 90% of McDonald's business.
McDonalds business is stable so far, but franchise issues keep popping up
Highly dependent on Western market:
As a leading fast food brand, McDonalds is heavily reliant on Western
markets. The top markets that McDonald's focuses on are the UK, US,
France, and Canada, and account for a large portion of its revenue.
Supply chain disruptions:
This is the weakest point of McDonalds. As one of the most famous food
chains in the world, however, McDonalds has mostly faced disruption
related to the supply chain.
Lack of employee satisfaction
As employee rights revolutions now take place around the world and
wages rise, McDonalds has faced dissatisfaction from its employees.
Opportunity - Opportunity
The first opportunity that McDonald's received was that the Vietnamese
population was mostly young people. They know how to hit this point
when young people are people who like new things, especially imported
from the West. Second, McDonald's is a world famous fast food brand.
This will stimulate public curiosity and interest in McDonald's restaurants
and will create a high level of virality.
Threat
The first challenge that McDonald's restaurants face is the Ministry of
Health's warning about diseases that can be caused by fast food,
especially obesity. Moreover, the press also constantly reports on the
harmful effects of fast food, making the public afraid. Second, the
segment into the children's market at that time was held by more than
80% of KFC. This is a huge challenge for McDonald's restaurants.
