1.0 this time to simply “McDonald’s,” and reopened

1.0           INTRODUCTION

1.1           History

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The McDonald family moved from Manchester, New
Hampshire to Hollywood in the late 1930s, where brothers Richard and Maurice
McDonald began working as set movers and handymen at Motion-Picture studios. In
1937, their father Patrick McDonald opened “The Airdrome”, a food
stand, on Huntington Drive (Route 66) near the Monrovia Airport in Monrovia,
California with hot dogs being one of the first items sold. Hamburgers were
later added to the menu at a cost of ten cents with all-you-can-drink orange
juice at five cents. In 1940, Maurice and Richard (“Mac” and
“Dick”) moved the entire building 40 miles (64 km) east, to West 14th
and 1398 North E Streets in San Bernardino, California. The restaurant was
renamed “McDonald’s Bar-B-Que” and had 25 menu items, mostly

In October 1948, after the McDonald brothers
realized that most of their profits came from selling hamburgers, they closed
down their successful carhop drive-in to establish a streamlined system with a
simple menu which consisted of only hamburgers, cheeseburgers, potato chips,
coffee, soft drinks, and apple pie. After the first year, potato chips and pie
were swapped out for french fries and milkshakes. The carhops were eliminated,
making the new restaurant a self-service operation. Richard and Maurice took
great care in setting up their kitchen like an assembly line to ensure maximum
efficiency. The restaurant’s name was changed again, this time to simply
“McDonald’s,” and reopened on December 12, 1948.

1.2           Logo

In the 60’s, McDonald’s wanted to change the logo
but their design consultant and psychologist Louis Cheskin insisted that they
left the golden arches. According to BBC he said customers will unconsciously
recognize the logo as “symbolism of a pair of nourishing breasts”

1.3           Background

McDonald was founded by
two brothers, Richard and Maurice McDonald in 1937 in California. This largest
global fast food chain arrived in Malaysia 43 years later in December 1980. McDonald
Corp gave their license to Golden Arches Sdn Bhd to open McDonalds Restaurant
in Malaysia. After 26 years, they now have 185 franchise outlet nationwide. McDonald
have created over 7000 job opportunity ever since they arrive in Malaysia over
the years. McDonald’s name in Malaysia, it built its name in Malaysia for the
first time in December 1980, when the United States McDonald Corporation award
Golden Arches Restaurant Sdn Bhd, a licence to operate McDonald restaurant.
Jalan Bukit Bintang, Kuala Lumpur was chosen as the most strategic location,
the first McDonald restaurant in Malaysia has been opened. With the opening of
this restaurant, McDonald Malaysia was crowned as the first restaurant in the
country which operate a majority Muslim population. Now, McDonald Malaysia has
had a total of 204 restaurant nationwide network and make new restaurant with a
projected growth rate of between 15-20 restaurants annually. With the opening
of this new restaurant, of course employment opportunities for local resident
also increase. Estimate of 1500 new jobs will be created through the opening of
new restaurant, the edition of staff and remodeling restaurant available.

1.4           Vision

McDonald’s vision
statement is as follows: “Our overall vision is for McDonald’s to become a
modern, progressive burger company delivering a contemporary customer
experience. Modern is about getting the brand to where we need to be today and
progressive is about doing what it takes to be the McDonald’s our customers
will expect tomorrow. To realize this commitment, we are focused on delivering
great tasting, high-quality food to our customers and providing a world-class
experience that makes them feel welcome and valued.”

1.5           Mission

brand mission is to be our customers’ favorite place and way to eat and drink.
Our worldwide operations are aligned around a global strategy called the Plan
to Win, which center on an exceptional customer experience – People, Products,
Place, Price and Promotion. We are committed to continuously improving our
operations and enhancing our customers’ experience.”


1.6           Product
and Service Provided

provides mainly food and beverage products. This element of the marketing mix
covers the various organizational outputs (goods and services) that a company
provides to its target customers. McDonald’s product mix has the following main
product lines:

1.             Hamburgers
and sandwiches

2.             Chicken
and fish

3.             Salads

4.             Snacks
and sides

5.             Beverages

6.             Desserts
and shakes

7.             Breakfast/All-day

8.             McCafé

McDonald’s is primarily known for its burgers.
However, the company expands its product mix through time. At present,
customers can purchase other popular products like chicken and fish, desserts,
and breakfast meals. This element of McDonald’s marketing mix indicates that
the firm innovates new products to attract more customers.

1.7           Tagline








is one of the most success fast food company in worldwide. They archive this
from the strategies that very efficient. 
We can see this from the product that they launch is different based on
the culture in every country. Such as, in India, there are no beef in their
product because of the culture in India cannot eat beef by follows their
religion. Another example is in Malaysia, there are no pork in their burger
because most of the people are Muslims.

in vertical strategy, they have multi-service such as Drive-Thru, McCafe,
delivery that satisfied demand from customers. Drive-Thru makes customers
easier to take away the food without have to queue long in the restaurant.
McDonald’s also offer for customers that love to takes dessert that McCafe
provide to customers such as cake, coffee and ice cream. Next is from delivery,
this is for customers that makes an order from home. This can be benefit for
customers that they do not have to waste time energy and fuel.

for integrated cost leadership differentiation is the Wi-Fi service that allows
customer to use Internet for free. So, customer will more attract interest to
come to McDonalds It is also open 24/7 but it’s depend on certain
restaurant.  McDonald becomes more
successful with many competitors such as KFC, Pizza Hut, Burger King because of
strategy that we already discussed.

                In conclusion, satisfy that McDonald’s offer to
customer makes the high demand from customers itself increase years by years.
This is why McDonald’s can stays stand even many competitors that increasingly



3.0 SWOT

                3.1           Strenghtens

has successfully rolled out new items like coffees, smoothies, and Angus burgers,
expanding the range of menu choices. With a strong product offering, the
company has grown income throughout the recession, notching strong increases in
same-store sales. Operations are spread around the world, meaning the company
is not exposed to just once currency or economy. Even trading near its highs,
McDonald’s serves up sizzling dividend yields that top the 10-year Treasury.
The yield comes with a side order of annual dividend hikes dating back to 1976.
The annual dividend payment has gone from 55 cents per share in 2005 to $2.20
this year.


3.2           Weaknesses

will be harder and harder to find prime locations to build a set of golden
arches. The U.S. is saturated with its restaurants, so growth will have to
occur internationally, posing potential cultural challenges. While the annual
dividend hikes are likely to continue, the dividend growth rate has been
slowing and will probably continue to slow or level off.



are opportunities for new restaurants outside the United States, and McDonald’s
has been taking advantage of them. China is a great opportunity for the
company, as is much of Asia. Menu innovations are limited only by imagination. Low
interest rates provide cheap capital for growth. In addition to
dollar-denominated debt, McDonald’s recently became the first foreign company
to issue yuan-denominated bonds in Hong Kong.



are considering regulations targeting fast food. McDonald’s faces competition
from strong peers. New product rollouts often have to go head-to-head with established
players like Starbucks. Commodity price increases could increase costs while a
weak economy limits the ability to pass the price hikes through to consumers.





is a one of world-famous restaurant in global level but every advantage have
there are own disadvantage. Majority perception public of the restaurant is
selling an unhealthy foods. Most of the foods that McDonald offers is hamburger
that make people assume it is less health. This is why my group wants to
suggest a way to McDonald provide their foods by add healthier menu. It will
changes people’s perceptions to McDonald’s and it’s also can maximizes profit.
In this way, to whom that cares about their health will buy it with open heart.

we recommend that McDonald should train their employees so that they work
effectively and effiency. This can improve the performance of each worker as
well as prevent customers from getting the wrong order and waiting for a long
time. In this way, it will helps the worker to work well. Additionally,
McDonald’s who provide drive-thru services can reduce their problems with
long-awaited customers as they work well.

addition, we recommend that McDonald should create an application where
customers can place orders at home and take their orders at the restaurant.
Therefore the customer no longer needs to queue at the restaurant and can also
avoid mistakes when taking orders. Customers also do not have to wait to take
their order in the restaurant. This application will simplify and save the busy
working hours of customers and have no long breaks in the office.


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