CASE STUDY OF MCDONALD'S - Drashti Panjrolia

SUCCESS STORY OF MCDONALD'S

•McDonald's Corporation is an American fast food company, founded in 1940.

•In 1917, 15-year-old Ray Kroc lied about his age to join the Red Cross as an ambulance driver, but the war ended before he completed his training. He then worked as a piano player, a paper cup salesman and a Multimixer salesman. In 1954, he visited a restaurant in San Bernardino, California that had purchased several Multimixers. There he found a small but successful restaurant run by brothers Dick and Mac McDonald, and was stunned by the effectiveness of their operation. The McDonald’s brothers produced a limited menu, concentrating on just a few items – burgers, fries and beverages – which allowed them to focus on quality and quick service.

•They were looking for a new franchising agent and Kroc saw an opportunity. In 1955, he founded McDonald’s System, Inc., a predecessor of the McDonald’s Corporation, and six years later bought the exclusive rights to the McDonald’s name and operating system. By 1958, McDonald’s had sold its 100 millionth hamburger.

•In 2019, net income increased 2% (4% in constant currencies) to $6.0 billion and diluted earnings per common share increased 5% (7% in constant currencies) to $7.88. Foreign currency translation had a negative impact of $0.21 on diluted earnings per share. In 2018, net income increased 14% (13% in constant currencies) to $5.9 billion and diluted earnings per common share increased 18% (18% in constant currencies) to $7.54. Foreign currency translation had a positive impact of $0.04 on diluted earnings per share.

#FUN FACTS

•McDonald's is the no. 1 fast food chain in the world! It serves over 69 million customers daily in over 100 coubtries across 37,855 outlets as of 2018.McDonald's is the world's second-largest private employer with 1.7 million employees. 

•You will get your burger ready in 3 minutes!

• It's the most visited restaurant in the world!

• Ronald McDonald is our favourite selfie partner!!! 

•Hardcastle Restaurants Pvt. Ltd. (HRPL). owns & operates McDonald’s restaurants across West and South India. It has a Master Franchisee relationship with McDonald’s Corporation USA and has been the custodian of the brand since its inception in 1996.

THINGS TO LEARN FROM MCDONALD'S

1. POWER OF SYSTEM AND REPEATABILITY

•Have a good scalability (Wide reach) and learn to fastly duplicate your products.

2. MODEL AND METHOD| FORMAT AND SYSTEM

•It helps in growing business! Even a junior employee would work! Your model must be simple! Burgers can be made by anyone! When you are in a business where there is a lot of competition! Your product is not your product! Your business format is your product! 

• This helped them in increasing their no. Of restaurants, global profitability, growth of sale, operational excellence, product standardization and lower operating cost!!

3. THEIR PLUS POINTS

• Quality

• speed

• cleanliness

• Value for money (affordable)

4 PEOPLE DEVELOPMENT

Before launching their products they test their products on their employees! They train their employees at their best! They keep them happy and solve their problems quickly! They do not give much salary but they give them better facilities , free food and many more! If your employees are not happy! They won't bring Customers!

5. TARGET AUDIENCE

They knew that all the food decisions are made by children. So they introduced the HAPPY MEAL! Now they attract chil nodren by offering them free toys! They caught the influencer! They have limited product line! They only sell fast moving PRODUCTs! Dont keep any products that are not having any great influence on products!

6.BUILD A GOOD NAME

• They really made "fast food" fast!

• Drive through!! (Only McDonald's use this strategy

• Local people, Local product, Local price!! ( Local responsiveness+ global integration)

7. ATTRACT CUSTOMERS AND THEN SELL

They attract customers by displaying affordable products outside and then convince the CUSTOMERS to buy more and more! Same STRATEGY is used by D-MART

9. HAVE A FRIENDLY STAFF

McDonald's staff are friendly and always have a smile on their face! This helps in retaining customers! 

10. CHANGE WITH TRENDS

Before some years , there was a trend like #fitindia and others! They made some healthy food with Changing time! They focussed on nutrional values! 

NEXT TIME WHEN YOU GRAB A BURGER REMEMBER THEIR STRATEGIES!!

Note: The work has been originally collected from various sources and is secondary source of data collection. The author does not claim over images