McDonald’s Corporation

History

McDonald’s is one of the oldest fast-food chains in the world alongside with Burger King, Dairy
Queen, and KFC. And is now considered as the largest fast-food restaurant chain in the world. However,
before being hailed as one, this company started from humble beginning. If we are to ask who founded
the business, some customers might say Ray Kroc. But before reaching the pedestal, it was Richard and
Maurice McDonald in 1948 converted their drive-through barbeque restaurant into a shop selling
burgers and milkshake.

The basic design of our conventional fast food today was once a competitive advantage of the
company against the competitors. This is the self-service counter that the brother built, this eliminated
the work of waiters and waitresses. Aside from selling at half the price of the competitors, they also
served food more quickly since products are cooked ahead, wrapped and warmed under heat lamps
before serving to customers. They bought their appliances form Ray Kroc who eventually see the
potential of the business. Kroc then offered to begin a franchise program for the brothers and he the
launched the McDonald’s Corporation in 1955. In 1961 he bought now the whole business of the
brothers. It reaches 1000 outlets on that decade and now McDonald’s can be found around 120
countries, with 68 million customers each day and has around 37,855 operating outlets as of 2018.

BUSINESS STRATEGY
Customer Service

McDonald’s offers speed service without compromising the quality of their products.

Brand Marketing

Fast food is also labeled as junk food and consider unfit for daily consumption. Now it aims to
improve healthy food options in their menu- offering salad, iced tea, sugar free drinks and other
products with low calories or carbohydrates.

Digital Marketing

As per observation, McDonald’s franchises specially here in the Philippines tries to touch
customers and potential customers’ emotion through digital marketing such as short films and other
online offerings. Now they already have McDo app which can be install for free and enjoyed by
everyone.

Menu Standardization

The company implements menu customization for every country it is operating. McDonald’s
standardizes. Menu items that also includes its traditional products such as Big Macs, fries and Quarter
Pounders.
CORPORATE STRATEGY
Expansion Strategy

The corporation adopted market development strategy relating to expanding their economy.
Now McDonald’s is penetrating Asian markets because of its high-income potential.

Franchising

To carry out their expansion strategy, they use franchising strategy. They replicated their
business model all throughout the countries they operated.

Adaptation Strategy

Since they are operating across borders, different rules and regulations to follow. This is
sometimes hard. For example, meat is purchases in a specific way in Russia, the company needs to
follow its local regulations.

GLOBAL STRATEGY
Leveraging Skills

The company benefited by the learning effects when its product of one region is taken to
another region. For instance, their Arabian dishes now becomes appealing to other regions. Also, the
corporation is now involved and holds major shares of other business and was able to learn more
management and marketing expertise.

Homogeneities

Strong culture was pointed out on their organization. They try to keep the homogeneity of their
conventional products like their chicken, beef, and potatoes which were imported from same area to
assure that the taste of its product will be the same across the globe.

Sources used:

https://www.britannica.com/topic/McDonalds

https://www.thestreet.com/markets/history-of-mcdonalds-15128096

https://www.mashed.com/147897/the-tragic-real-life-story-of-the-mcdonald-brothers/

https://mcdonalds600.weebly.com/corporate--business-strategy.html

http://researchregion.com/blog/2015/03/mcdonald-international-strategy.htm#:~:text=Core
%20Competencies%3A,centralized%20control%20of%20head%20office.