Background and History

Published: 2020-04-28 06:10:35
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4 pages
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Being one of the most famous and profitable businesses all over the world, McDonalds has taken a long journey to become successful this far. It simply started with two brothers named Richard also known as DICK and Maurice also known as MAC McDonald who opened an airdrome at an airport with a loan of $5000. They opened up a small Hot dog stand in Monrovia and later moved to San Bernardino where they transformed the small hot dog stand into a road side drive in. with the investment of Ray Kroc in 1954 who was interested in their business, turned McDonalds a successful restaurant all around the world. With the largest restaurant chain in the world, McDonalds has made sales of over 75 billion dollars in 30,000 local restaurants and in more than 119 countries making it the 90th largest economy in the world. It has not only served people just meals but also a sign of an entire cultural principles and practices.Observation

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Walking into a McDonalds restaurant there are a couple of observations that are made like the relationship of the parking lot to the restaurant is that the parking lot is usually bigger than the restaurant. In fact, almost three quarters of the space is taken up by the parking lot. The parking lot is very close to the hotel in fact surrounding it because of the many customers that visit the place with vehicles. The number of vehicles in the parking lot depends mostly on the time of the day and it is mostly fully parked during meal breaks such as breakfast, lunch and supper. Some people are lined up in the vehicles so as to order take away food without really getting into the hotel. The general view of the hotel from outside there is a couple of common things observed in all McDonalds restaurants.

One major observation is the big M at the entrance which is the logo for McDonalds. The building is generally red and with some parts yellow, which is the brands official colors all over the world.

Getting into the restaurant there are a couple of things observed such as the whole place is so busy with people moving around, others in and out, long queues of customers at the counter and also busy staff serving customers. The place itself is beautiful where it maintains its optimum level of hygiene. The staff dresses in red shirts and black trousers with a red cap written McDonalds. They are generally welcoming. The tables are covered with red and white table clothes with red chairs. Due to the high number of people in the restaurant its clear that the restaurant meets the needs of its customers. At the counter, there are a couple of meals offered such as burgers, chicken, fish, pork, wraps, vegetarians, salads, sides, desserts, beverages, Mccafe and also meals. From observation a lot of people normally never eat at the restaurant but the foods as take away.

Cost

McDonalds has been offering their food at prices that no any other competitor in the industry is offering. To achieve this, the company ensures that the cost of operation is as low as possible. The company buys its supplies in wholesale to get lower prices. The company also leases land and property to franchises. Due to its popular brand name, McDonalds spends less in advertising its products .Strategic customer selection has also enabled the company to provide what is best to every segment of the market.

Culture

Due to its placement all over the world in over 199 countries, McDonalds has played a major role in promoting cultural aspects in the countries. In the restaurant for instance at the counter the staff comprises of people from different cultures such as Indians, whites and also blacks. This has brought about people from different races coming together and promoting culture. They also promote culture by preparing certain foods that are cultural to that area. And also McDonalds is sensitive to certain cultures for instance McDonalds does not cook beef in India because of the cultural beliefs of the people hence that makes the company to work harmonious with the people of that region.

Quality verses quantity of products

When comparing the quality of food with quantity its a positive feedback. The food quality is tremendously good this is due to their highest level of technology in machinery used in the kitchen, the experienced chefs who monitor the process of production very well and also they always go for the best quality items in the market stock. The quantity depends on what is ordered for. And what a customer has paid for but as mentioned earlier McDonalds has been offering over the years their food at prices that no any other competitor in the industry is offering and also their quality and quantity is relatively good.

Loyalty

In the industry, there are many competitors but because of the loyal customers who have always been customers to the restaurant ever since the heard of the big mac. This is clear that its success has been pushed ahead by the loyal customers who never change thoughts when it comes to finding a place to buy food. Customers usually flock the MacDonalds restaurants in a bid to eat the many delicious foods that are prepared. They flock the restaurants especially during daytime and lunch hours. Others date in the MacDonalds restaurants since it is expensive and well furnished.

Peoples reactions

After a conversation with people in the dinners, different opinions have been observed like, all love the way the food tastes and about prices no one had to complain, mostly very few complain about the long queues at times. In a general opinion it shows that people love what McDonalds is doing and they should keep it up.

Conclusion

McDonalds has come a long way and also had a successful journey which makes even celebrated companies have to continuously monitor their operations and business structure in order to remain relevant in todays competitive global market. This case study provides a comprehensive solution for companies and can be applied in any industry. It is a powerful tool to understand the drivers of customer satisfaction and to give impetus to improvement activities in companies. The lessons learned are that different markets have different tastes and preferences, and as such, should be treated individually. It is also evident that a company should respond fast by investing in upcoming but promising new markets. It is, however, important to experiment with new products in test markets before rolling them out.

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