Professional Documents
Culture Documents
BY:
RAMSHA QADIR
JYOTSNA SINGH
VIJAYALAXMI
ANKIT RATHI
“The Mc Donald’s type
fast food isin’t relevant
to today’s customer.”
-A Mc Donald’s Franchisee
“The world’s has
changed. Our
customers have
changed. We have
to change too.”
-JAMES R.
CANTALUPO, CHAIRMAN AND CEO, Mc
Donald’s, 2003
• Two brothers Richard and Maurice McDonald
opened the first restaurant in San Bernardino,
California in 1937.
• Opened a drive-in restaurant- relatively new
concept.
• Single store- sold hamburgers and fries.
• Strong business in milk shakes.
SUCCESS FACTORS IN
•
MID 1950s
Invented a revolutionary new
concept- “self service”
• Reduced menu from 25 items to 9.
• Prices kept low.
• Success factors- speed, service,
quality and cleanliness.
MCDONALD’S LOGO
• First franchisee- Neil Fox in Phoenix,
Arizona(1952)
• Franchisee restaurant located in a
gleaming red and white tiled
rectangular building.
• Most distinctive feature- “ two bright
yellow arches” which later evolved as
the symbol for McDonald’s.
MCDONALD TO MCDONALD’S
CORPORATION
• Ray Kroc- multimixers distributor-
stepped in to change McDonald’s
history.
• Small investment for $75000 made
business ideal for franchising.
• In 1955- Kroc established a
franchising company.
• In 1961- changed the company name
to McDonald’s Corporation.
CRUCIAL HAPPENINGS
1960 Indication of competition- Domino’s
first telephone order to deliver a
1963 pizza
Ronald McDonald’s debut as
corporate “spokesclown”
1965 McDonald’s stock went public at
$22.50 a share
1967 McDonald’s went International
1968 “Big Mac”, the basic burger, made
its debut- an immediate hit
1975 First “Drive- Thru” operations in
Sierra Vista, Arizona
1979 Introduced “Happy Meals”- gave
working moms a break
1991 Introduced low-fat McLean Delux
Burger- flopped and withdrawn
DOWNFALL
Since 1994 McDonalds ranked at the
bottom of fast food
industry.
Dec 2002 Stock plummeted 60%
over a period of 3 years
• “ McDonald’s need to
move the question from
‘How can we sell more
hamburgers?’ to ‘What
does our brand allow us to
consider selling to our
customers?’”
-ADRIAN J.SLYWOTSKY, A PARTNER
AT CORPORATE DECISIONS INC., A CONSULTING
• Problems in maintaining cordial
relationships.
• 1996 survey showed that only 28% of
franchisees thought that the company’s
strategy is on “the right track”.
• Company changed its views so many
times that it was not possible to know
company’s stance.
• Unlike 1994 i.e. 84%, only 26% said
that company’s handling of important
Continued..
In late 1990’s, no
such queues.
Terminating their
contracts.
They saw their
profits to just 4% from
15% peak. Countries with McDonald's stores
Continued…
Former franchisee and a food
consultant Richard Adams, 20
franchisees were leaving McDonald’s in
early 2000s. Unhappiness over their
expenditure on “made for you” kitchen
which actually slowed the service.