McDonald's
Paola Rodríguez García
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TABLE OF CONTENTS
1. PRESENTATION OF THE COMPANY
2. History of the company …… …………………………………………..page 3
2.1 History…………………………………………….……………………page 3
2.2 Mission, vision, principles and values……………..……………..……page 4
3. INDUSTRY PRODUCT AND MARKET
3.1 Industry………………………………………………...………...……..page 6
3.1.1 clients…………………………………………………………………page 7
3.1.2 Function……………………………………………………………….page 7
3.1.3 Technology………………………………………………………….…page 7
3.2 Product…………………………………………………………………..page 7
4. EXTERNAL ANALYSIS OF THE COMPANY
4.1 Political factors…………………………………………..……………....page 8
4.2 Economic factors……………….……………………………………...…page 8
4.3 Technological factors……………………………………………………..page 8
4.4 Sociocultural factors………………………………………………………page 9
5. INTERNAL ANALYSIS OF THE COMPANY
5.1 The functional areas of the company………………..…………………….page 9
5.1.1 Financial area…………………………………………………………....page 9
5.1.2. sales area…………………………………………………….………….page 9
5.1.3. production area……………………………….………………………..page 10
5.1.4 Human Resources Area…………………….…………………………..page 10
6. EXAMPLES OF STRATEGIES OF McDonalds STRATEGIES
6.1 Sustainable strategy………………………………..……………..……..…page 11
6.2 Competitive strategy……………………………………………..………..page 11
7 CONCLUSIONS…………………………………………...…………….…..page 12
8 BIBLIOGRAPHY…………………….…………….………………………..page 12
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1. PRESENTATION OF THE COMPANY
McDonald's is a fast food restaurant franchise that was born in the United States. Currently, it
is present on five continents. It has more than 30,000 restaurants, and every four hours,
estimated period, a new restaurant opens in the world. He sells about 75 burgers a second.
This company is the largest distributor of toys in the world due to its products focused on
children, which they give away together with their flagship product called "Happy Meal".
The company logo with the golden arches is one of the most recognized in the world.
2. COMPANY HISTORY
2.1 History
In 1930, Morris and Richard McDonald opened a fast food restaurant that sold food from the
grill. But since the company made money selling hamburgers and fries, they decided to focus
only on those products. This is done effectively so that the orders that people make when they
go to the mentioned places are generated in seconds, better known as "fast food business or
fast food company".
In 1955, Crocker (the great architect of the growth and success of the company) visited
McDonald's and was surprised because they served delicious food in this restaurant, and it
was delivered immediately. Kroc eventually bought McDonald's for $2.7 million to gain
more control over his expansion. On December 1, 1961, thanks to his financial advisor, Harry
J. Sonneborn had the bright idea to create the McDonald's system as a real estate company
instead of a fast food company. He turned to a seasoned financial expert, John Rystol, who
gave the bank more confidence when applying for a loan. When he got the loan, he bought
McDonald's because the McDonald brothers were the burden of his expanding mind.
In the late 1990s, McDonald's began to grow at an incredible rate, because the more stores it
opened, the more rent and revenue the company received. McDonald's already has more than
23,000 stores and opens five new restaurants every day. Kroc started out franchising
restaurants, and while every franchised business had big problems, both the franchisee and
the company shared in the money they made from sales, often up to 50%. This demotivates
franchisees most of the time as they work hard for the company to get 50% of the profits. It
solves the problem by renting premises where the franchisees work, thus reducing the profit
margin of the premises, while making money in another way: by renting premises.
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There are three main sources of income for McDonald's: The main business is real estate.
This is how it manages it, buys the land where the new franchise will be built and negotiates
monthly payments with the franchisees through leasing. The other two sources are
commissions for the use of the company's name or brand and a percentage of the sales
generated. (McDonald's, 2021)
It is also an excellent way to run a business because you do not have to depend on sales, but
the main source of income comes from renting the premises and they are periodic, which
gives the business security and control. about what is included and how much it costs.
2.2. Mission, vision, principles and values
According to the guidelines of the McDonald's website (mcdonalds.es), the company has
various models based on its mission, vision, principles and values.
The mission is the long-term goal of the company. It explains in which department the
company should develop its activity and how to work in it, the members of the company
should know. Vision, on the other hand, is what a company wants to be, that is, the direction
it sees in the future determines the direction it should go. McDonald's mission is "to be our
customers' favorite place and way to eat." Prioritize the importance of customers. In fact, this
approach shows that the company must not only meet, but also exceed the demands and
needs of customers.
Task Composition:
- Improve health: Prioritize the quality of food served to customers. Therefore, the company's
policy is to continually change and improve the production system while making the
products.
- Clients' favorite place: creating the best environment for our clients is the first priority after
food quality. It focuses on the needs of customers and includes various activities at the point
where they sell their products. To meet these needs, McDonald's offers rooms where
customers feel very comfortable because they are very spacious and also provide an excellent
cleaning service, as well as other uses created by it, such as Wi-Fi or meeting rooms,
children's games.
- McDonald's is a prestigious company: it is based on the high quality of food and service,
which distinguishes it from its competitors. Food includes experiences like playgrounds and
parties that make dining a fun experience for customers.
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McDonald's vision to "be where and how customers prefer to eat" drives employees to devote
energy and resources to achieving 100% customer satisfaction when visiting the restaurant.
When it comes to company principles, there are four distinct operating concepts: quality,
service, cleanliness, and value.
- Quality: The maximum quality and safety of the products is verified in all the stages of
production and selection of the product, from the raw material to the preparation in
restaurants.
- Service: Customers are always the most important thing and the goal is to make your
restaurant experience fantastic. A fast service, a friendly and personal attitude and a constant
adaptation to the customer's taste are the means to achieve this.
- Cleaning: McDonald's restaurants are always aware of the cleanliness and hygiene of their
premises.
- Value: value for money.
When it comes to values, it should be noted that it refers to the ethical values and norms that
determine or understand the behavior of individuals in an organization. McDonald's corporate
social responsibility is based on the values embedded in every business activity, whether it's
working with suppliers, developing employees professionally or contributing to society.
- Customer Experience: Provide you with the best quality products and the best service at the
best price in a clean and pleasant environment.
- People oriented: provide opportunities, develop talent, develop leaders and reward
achievement. A well-educated team with professional backgrounds and diverse backgrounds,
working together in a respectful environment that inspires to a high level.
elevator.
- They believe in the McDonald's system: the business model is described
A "three-legged stool" made up of franchisees, suppliers and employees
It is the basis that rests on the balance between these three interest groups.
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- Manage the business ethically: Ethical business behavior is a key component of business
management. McDonald's applies high standards of honesty, integrity and fairness. They take
responsibility on two levels. Individually and collectively.
- They give back what society gives them: they help their clients to create better results.
Community, support charities like the Ronald McDonald Children's Foundation and use your
size, influence and resources to help make the world a better place and support society
through social responsibility.
- They work hard for the profitability of the company: McDonald's is a public company, so
they work hard to ensure the continuous growth of their shareholders, which requires constant
attention to customers and their production process. - They strive for continuous
improvement: constant development and innovation. It is an organization that constantly
learns to anticipate and respond to the changing needs of customers and employees
(McDonald's, 2021).
3. INDUSTRY PRODUCT AND MARKET
3.1. Industry
McDonald's belongs to the restaurant industry, although it has three sources of income. Most
consist of leasing premises with franchisees, so that the main business is real estate and is
managed through the purchase of real estate for the new franchised restaurant and the signing
of a lease with the franchisee, making monthly payments.
The other two sources are commissions for the use of company or brand names, which are
paid to McDonald's franchisees who lease the right to use the company's products and brand,
and finally, revenue as percentage of total annual sales. stores
3.1.1. Whose needs or wants are being met? (customer)
Restaurants are often located in high-traffic commercial areas or in tourist areas and city
centers that are easily accessible to tourists. It focuses on two broad groups of consumers. On
the one hand, we can call children between the ages of 5 and 14 your potential customers. On
the other hand, since it is normal for children to be accompanied by parents or adults,
McDonald's has also targeted this group of consumers called adults.
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Although most of the advertising it brought to the market was aimed at children, one
well-known product was called the Happy Meal, which included a menu of hamburgers, fries,
and children's games. That's all
3.1.2. What needs to be satisfied? need or desire (function)
Basic needs are met, that is, food. Our goal is to provide the highest quality products possible,
made locally with fast, quality service.
3. 1.3 How to satisfy? Unique skills (technologies)
Whether in a catering business, at home, or even in a car or another type of ordering system
called McAuto, it is done quickly and with the highest possible quality and safety.
3.2 Product
McDonald's offers a wide range of products, mainly hamburgers served with fries and drinks,
known as the Mc menu. It has different flavors of burgers like: Big Mac, Super Bacon, CBO,
Quarter Pound with Cheese, American Chicken, Happy Meal, Signature, Sandwiches. It also
has a variety of toppings that you can order with your burger, such as nuggets, cherries,
wings, and gazpacho. Dessert is ice cream, kitkat, oreo or Filipino McFlurry, cream cone,
bagels, Danonino or fruit. It also focuses on breakfast with coffee and sides like croissants,
brownies, toast, muffins, and donuts. Another type of menu is a combination with several
food variations to be able to create your own menu according to the needs of the consumer
(McDonald's, 2021).
4. External analysis of the company
One of the tools that allows analyzing the environment is the PEST analysis, which focuses
on the study of four types of factors to understand the environment in which the company
operates:
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4.1. Political factors
McDonald's operations may be affected by national policies in different countries because it
operates its businesses in different countries and has a large number of stores in those
countries. That is, in all countries.
McDonald's had to adapt to different problems. It varies from one country to another, for
example, a healthy lifestyle, where cholesterol or obesity is not part of the policy of each
country, which should be responsible for fast food and highly processed products. Political
factors focus on various areas of business interest, such as health, worker protection, and the
environment, all of which are controlled by the government through licensing or health
inspections. Depending on the country, there are often more difficulties as well. For example,
there is a legal dispute in India because it violates various laws and religious laws related to
food ingredients, because the presence of various meat or pork products (such as bacon) is
offensive to their religion, so they have to . The national culture of each country adapts to the
different markets in all countries.
4.2. Economic factors
They can be external. There are several factors involving not only McDonald's but other
companies as well. For example, a crisis, unemployment or pandemic situation such as
Covid-19, when the company's income is significantly reduced. While the fast food industry
continues to thrive and is implemented in a variety of ways, such as at home, in stores, or in
local pickup systems, this has helped the company continue to reap the expected benefits.
4.3 Technological factors Technology
It is essential in business, even more so in a time when everything is becoming more and
more automated and constantly changing through innovation. To this end, McDonald's is
committed to investing in research and development and invests in new technologies. For
example, it chose to use touch screens to allow users to place orders without physical human
intervention and began to distribute the so-called Happy Tablet, which is responsible for
turning tables into virtual circuits where children can play various video games. meet
customer satisfaction, or
With a variety of stores, these stores often have their own arcade dedicated to the children of
their potential customers.
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4.4. Sociocultural factors
One of the most important factors is lifestyle changes as there are currently some trends
towards a healthy lifestyle and regular physical activity as this is the best way to stay fit and
lead a healthy life. To do this, McDonald's follows the trend and tries to offer healthy
¡products such as salads, fresh meat or fruit. On the other hand, in other countries with
different lifestyles, such as the US or the UK, there is little time to eat during the working
day, and these fast food companies are a great asset to these societies and lifestyles. nation.
5. Internal analysis
The internal analysis identifies the strengths and weaknesses of the company in the
development of its operations. Next, we will look at some of the key areas of business
analysis. 5.1 Functional areas of the company
5.1.1.Financial area
It is responsible for managing the economic and financial resources of the company
necessary to achieve the objectives of the company. Function:
- financing
- Financial Accounting
- credit and taxes
5.1.2. Sales area
It is responsible for its delivery from the product to the consumer or end user. Market
research, market budget, determination of packaging, containers, labels and brands,
distribution and sale of products, pricing of promotional and promotional products.
Function:
- market research
- product development
- Prices, sale and communication
Its global strategy aims to deepen customer relationships and therefore enhance the restaurant
experience. The commercial strategy includes an international campaign for the brand “I love
it” to promote the products: Happy Meal and McCafé, aimed at children and adults. The
problem for the commercial sector is that advertising directed at children leads children to
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consume unhealthy products, which is contrary to the public health obligation to promote
sports activities related to health and well-being.
5.1.3. Production area
Responsible for transforming raw materials into finished products and services using human,
financial and material resources (tools and equipment).
necessary for its preparation. One of the main tasks in the production area is
Maintenance and repair of machinery or equipment, storage of raw materials, work in
progress, finished products and quality control. Function:
- Product design and marketing.
- Planning and production control.
- Delivery and quality control.
The main drivers of fast food products are on-time delivery, work-to-order, supply chain
quality standardization, global quality standards, business policies and practices, adaptation
to local markets, and with different cultural characteristics.
5.1.4. Personal Resources Area
It is the area that is in charge of managing the company's human resources and is managed
effectively. Recruitment and selection of competent, responsible and sufficient personnel
Motivate, train and evaluate the positions and staff of the company, creating a pleasant work
environment. Function:
- Personnel selection
- Formation and development
- Planning of personnel and working conditions
6 Examples of McDonald's Types of Strategy
6.1. Sustainable strategy
According to the McDonald's website, we can see that the strategy is
The company's sustainability is organized into three large areas: energy and electric vehicles,
packaging and recycling (McDonald's, 2021).
- Energy and electric vehicles: McDonald's has been working on energy efficiency measures
for several years and its premises are designed with
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efficient rooms. They adjust their electricity consumption and more than 95% of their
restaurants use renewable energy. In addition, the company signed a contract with Endesa and
Iberdrola for the installation of more than 150 electric car chargers in 2021.
- Packaging: working to make packaging more sustainable, for example in terms of single-use
plastics, they have eliminated plastic straws and other containers such as salad bowls. In
2018, more than 80% of our packaging came from renewable or recycled sources.
- Recycling: McDonald's was the first organized restaurant company to install trash cans in its
restaurants. They have been working with Ecotic since 2005 and Ecopilas since 2010 to
guarantee the correct recycling of their toys. They are also been part of Ecoembe since 1998
to guarantee.
All containers on the market have two purposes.
6.2. Competitive strategy
Competitive strategy is a set of actions that a company performs to achieve a more
advantageous position compared to other competitors.
- Differentiated Management: The key to McDonald's success is offering more for the same
price and combining the two, controlling its franchised restaurants around the world and
selling its products in those restaurants. It also integrates backwards along its value chain
with the suppliers it employs, achieves a high degree of control over them, builds good
relationships based on mutual benefits, that is, mutual benefit and establishes control
standards over them. and high quality, which demonstrates a significant part of its success
A certified sanitary mark guarantees that your products are of high quality. McDonald's is
capable of offering new products after a certain period, thus bringing freshness to customers.
From time to time they change the menu, expand it and add new styles of food, in this case
they create new variations dominated by their burgers, using new flavors and different types.
It also tailors its offerings based on the country the restaurant is located in, basing its research
on the culture of each region it is located in, and when it does so, it tailors its offerings to the
country, such as where they donate. Don't be without bacon or pork. Eat using other types of
food to complement your burgers. It is a company that seeks innovation to meet the changing
needs of social style, investing in business expansion and opening new stores. Some of the
differentiating characteristics of this company could be its price, quality, or for example the
additional services it offers, such as McAuto or also known as a food stall, which can be
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obtained in stores, parking lots, Wifi, children's games in its facilities. We can observe
different keys to success.
Its strategy is dominated by the following aspects: providing fast food service, good customer
service, successful brand value of the franchise, cleanliness of the premises, good staff
training, offering the highest quality at prices and achieving customer satisfaction. as the
main objective.
7. Conclusion
After doing this job, regarding the company, I can draw the following conclusions:
- McDonald's with a long history started from a small store and grew into a globally
recognized multinational company with 36,899 stores today.
- It is known by all types of society, and although it focuses on children, it can reach any type
of customer without targeting a customer base.
- The company has a business model that surprises everyone, since it is said that its main
business is not the sale of hamburgers, but the rental of brands and restaurants under a
franchise model, generating a fixed amount using its property, but No. They depend on the
income from the sale of hamburgers.
- It has a premium, distinctive and globally recognized brand that demands high quality and
its supplier alliance that cooperates with local suppliers in each country according to their
country of origin.
- Your mission and vision are crucial to your business model and possibly one of your
successes in this industry. Thanks to customer satisfaction, speed of service and cleanliness to
the public everywhere. I think the cooking process is also very important because they have
to get there very fast and deliver to the customer while the food is being prepared.
– It is a growing company that adapts to each country according to its culture, anticipating
market changes and possible problems.
They can generate, it's always one step ahead, it also generates an ever-changing menu that
constantly surprises customers, but always follows the same format that the McDonald's
brand and its flagship burger joint demand.
8.Bibliography
- The 100 best franchises of 2021.
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McDonald's feeds 1% of the world's population and other curiosities.
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%2040%25
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0of%20both%20brands%20a%20big%20traits&text=McDonald's%20has%20a
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