Introduction
The history of McDonald’s dates back to 1954 when Ray Kroc was awed by the great order for multi-mixers from an outlet in San Bernardino in California (McDonald’s). The outlet was managed by two brothers, Dick and Mac McDonald. Ray Kroc noticed very effective operations by the two brothers (McDonald’s). The brothers labored to prepare a few items that included burgers, fries and non-alcoholic drinks (McDonald’s).
He envisaged a future where McDonald’s restaurants would be found all over the United States of America. With a lot of enthusiasm, Kroc founded the McDonald’s Corporation in 1955 and was able to buy restricted rights to own the McDonald’s name (McDonald’s). He aimed to come up with a cafeteria method that would be known for the high and invariable quality of food and homogeneity in methods of preparation of the foods. He founded the business on the tenets of quality, service, cleanliness and value (McDonald’s)
Ray Kroc passed on on 14th January 1984 leaving behind a very rich legacy that lasts up to date (McDonald’s). This essay seeks to unravel the factors behind the success of McDonald’s Corporation and briefly compare it with one competitor, Burger King to show that the competitor might not be able to outwit McDonald’s in the industry.
McDonald’s Success Factors
McDonald’s is currently doing well on the New York Stock Exchange. The share price shot from $55 per share in 2008 to settle at $87.09 in 2011, a whopping 58% increase (Krantz). This is such impressive growth in stock price. This has been made possible by factors that include consistency, innovation, and resiliency (Franchise Direct). Others include aggressive business goals, willingness to adapt, and valuing people approach (Oxbridge Writers).
Consistency
Visiting any outlet any location in the world grants you the same experience; the services are of high quality as does the food and drinks served and as such customers can comfortably enjoy the great services offered any place where a McDonald’s outlet is established (Franchise Direct). This was Kroc’s initial vision towards consistent processing and efficiency (McDonald’s). This is one aspect that has greatly contributed to the success of McDonald’s.
Innovation
A quick mention of consistency and innovation would certainly evoke a situation of mutually exclusive concepts; that the two cannot complement each other. However, consistency does not rule out innovation. Consistency and innovation work towards McDonald’s increased growth (Franchise Direct).
Being consistent does not in any way imply that products have to remain the same. A critical balance has to be maintained between consistency and innovation in such a way that, planned well in advance, will not disrupt customer enjoyment but serves to enhance the same satisfaction (Franchise Direct).
Such an innovation arising from customers’ responses as well as those of franchisees has greatly enabled McDonald to avoid stagnation throughout their corporate history. For instance, in 1975, McDonald’s introduced a drive-thru to serve the military who were not allowed to embark from their vehicles while in their military uniform (Franchise Direct). This innovation allowed the soldiers to enjoy McDonald’s services and added value to the venture.
When protests against McDonald’s were experienced, McDonald’s decided to serve a product called Big Mac without cheese in various outlets (Oxbridge Writers). In Singapore and Malaysia, the corporation had to be inspected by Muslim clerics and rewarded with a Halal certificate. This is part of their innovation that arises from customers’ concerns and needs (Oxbridge Writers).
Resiliency
McDonald has had to encounter numerous challenges and controversies including lawsuits and negative portrayal by the press (Franchise Direct). Part of their strategy to fight this involves accepting the concern and then using resources at their disposal to help them remain afloat of the issue.
The corporation has suffered challenges regarding health concerns especially children related concerns (Franchise Direct). This led to the formation of the Global Advisory Council (GAC) in 2004 to provide McDonald’s with the professional guidance in matters relating to nutrition (Franchise Direct).
Aggressive Business Goal
As a corporation, McDonald has carried pride and the desire to grow bigger and stronger (Oxbridge Writers). The corporation takes it upon itself to entrench love for the company to the employees and the management by making them understand how they stand to benefit as they work with McDonald’s (Oxbridge Writers). This necessarily makes them take a lot of pride in the success of their company. It has been McDonald’s culture to instill a sense of loyalty to the staff at large (Oxbridge Writers).
Conclusion: McDonald and Burger King Compared
Burger King had been touted as the greatest competitor to McDonald’s. However, in comparison, Burger King cannot get anywhere near the success of McDonald’s for various reasons. McDonald’s branding is catchy and conveys the message spot-on while that of Burger King is pathetic (Sheridan). McDonald’s are known for making critical and tough choices that others including Burger King cannot dare.
In addition, as earlier seen, their innovation cannot be matched by any other competitor and their insistence on staff benefits adds to the value of the company with a lot of ease (Sheridan). It will be long before McDonald can have a worthy competitor.
Works Cited
Franchise Direct. “The Success of the McDonald’s Franchise”. 2013. Web.
Krantz, Matt. “Is McDonald’s a good stock to buy?” 28 July 2011. Web.
McDonalds.” The Ray Kroc Story”. 2009. Web.
Oxbridge Writers. “McDonalds top five critical success factors”. 2013. Web.
Sheridan, Marcus. “7 Reasons Why McDonald’s Crushes Burger King Year After Year After Year”. 2010. Web.