Statement of Purpose
These days, fast food is becoming a part of life for most citizens in big cities. Instead of a proper lunch, many individuals solely have time for a snack on the go or a run to an eatery, mainly due to an enormous amount of work. McDonald’s is the world’s most famous fast-food restaurant chain, offering customers tasty and inexpensive meals. It is known to almost everyone, and there are branches in all, even tiny towns.
Nonetheless, few people know where the company started and what marketing concept was behind the name. This paper aims to provide strictly factual information about McDonald’s, its history, mission, products, services, market position, strategies, and plans. This informational report will be helpful for those interested in McDonald’s activities, seeking a deep understanding of the company and its significance in the global economy and society.
Company Description
McDonald’s is a well-known American corporation operating in the catering industry. The company’s white letters proudly adorn over 30 thousand restaurants worldwide today (Nuque-Joo et al., 2019). More than 1.5 million people work for the organization, serving about 43 million visitors daily (Tien et al., 2020). McDonald’s is the largest fast-food chain in the U.S. regarding revenue (Mozammel, 2019). It is among the most prosperous in its niche since 1940 (Tien et al., 2020).
The critical element of this success is the franchising scheme, which makes it possible to open many restaurants while attracting the bulk of investment from private franchise buyers. The firm’s facilities are trendy among Americans and other nationalities for delicious, low-cost food made from quality ingredients (Rani, 2023). The longevity and profitability of McDonald’s are determined mainly by adapting to consumers’ taste preferences (Opait, 2019). Friendliness, cleanliness, consistency, and convenience are four essential concepts for the organization’s great results (Schramade, 2019). The business is rapidly growing and expanding every year and will continue.
Background and History
McDonald’s has a rich and illustrious history filled with ups and downs. The firm was founded in the late 1930s by brothers Richard (Dick) and Maurice (Mac) McDonald in San Bernardino, California (Nuque-Joo et al., 2019). After moving to California to seek new opportunities, Dick and Mac opened a movie theater (“McDonald’s History,” n.d.).
It was not profitable, and they decided to change the business concept. Their drive-in burger bar with hot dogs turned out to be surprisingly beneficial, but the brothers were tired of hiring new servers who kept changing jobs, finding good cooks, and buying plates that teenage customers kept pounding. Everything changed when they took a risk and optimized their operations (“McDonald’s history,” n.d.). At a minimum, Richard and Maurice McDonald installed huge grills, abandoned the expanded menu, and applied the idea of self-service. Such principles made hamburgers half the price and more and more customers bought them.
Ray Kroc, a talented businessman, helped Mac and Dick to expand their chain across America. In 1954, Kroc acquired the right to act as the exclusive franchise agent from the McDonald’s brothers (Crisanti, 2023). Ray realized the only thing the firm needed for complete success was scope. He could not resist the urge to multiply to the thousandth degree, an original endeavor, to turn it into an industry. In 1955, the entrepreneur opened his first McDonald’s restaurant in Des Plaines, Illinois (now the corporation’s museum) and organized a franchise company (Crisanti, 2023).
The McDonald’s chain grew and expanded, with more and more eateries popping up in metropolitan areas and smaller towns. There were undoubtedly many challenges along the way. Kroc lived his “brainchild,” putting everything at stake: all his savings, invested all his energy, and finally, radically changed his personal life. The company’s creation and development history shows how hard work and dedication can lead to success. Today, McDonald’s has tens of thousands of restaurants around the globe, operated mainly by franchisees, and the business is thriving.
Mission Statement
McDonald’s aims to provide fast and high-quality customer service with standardized products. The official website states: “Our mission is to make delicious feel-good moments easy for everyone.” (“Our mission and values,” n.d.). McDonald’s restaurants will be the most pleasing places for their clients to get friendly service and favorite fresh, hot foods in a clean, pleasant environment where they can have fun, all at reasonable prices.
The American corporation sees itself as the world’s best fast-food restaurant chain and intends to outperform competitors in quality, service, sanitation, and customer value. The company’s priorities are ensuring stable growth, impeccable customer service, continuous employee development at all levels, exchange of experience between units in different countries, dish improvement, and technology implementation.
Products and Services
McDonald’s is famous for its quality worldwide, primarily because of the high demand for its dishes and beverages, and its prices remain affordable. First-class ingredients and modern technologies are used in production. Restaurant assortments typically include burgers, sandwiches, fries, desserts, soft drinks, shakes, tea and coffee. McDonald’s approach is to offer a limited range of dishes, improve flavors, and try out new categories of fast-casual meals. The organization maintains nutritional standards globally and adjusts food flavors depending on the restaurants’ locations and gastronomic trends (Tien et al., 2020).
For example, it has eliminated beef specialties in India, introduced various spaghetti and rice dishes in the Philippines, and changed its hamburger recipe in Japan to add mashed potatoes and cabbage (Nuque-Joo et al., 2019). The fashion for healthy food has forced McDonald’s to make actual changes to the usual menu by presenting smoothies, milkshakes, and vegetable and fruit salads (Opait, 2019). McDonald’s provides on-site service and the capability to order food through delivery services, and some restaurants have children’s playgrounds attached. It works with loyalty programs, offering discounts and bonuses to its regular clients.
Major Competition
The company’s major competitors in the fast-food industry are Burger King, Subway, KFC, Wendy’s, Domino’s, Pizza Hut, Starbucks, Papa John’s, Chipotle Mexican Grill, In-N-Out Burger, Tim Hortons, Dunkin Donuts, and many others. These are some of McDonald’s most significant international and local competitors. Despite many “opponents,” McDonald’s is the most successful and profitable organization due to its expansion and presence policy, quality standardization, exciting advertising, and diversified offers.
McDonald’s is ahead of the competition, owning over 38,600 restaurants in over 119 countries and generating more turnover (“Competitor analysis,” 2023). McDonald’s is a multinational corporation that utilizes ingenious vertical marketing tactics. The firm tries to make its costs cheaper than Burger King or KFC and deliver meals faster, and so far, it is succeeding.
Marketing Strategy
McDonald’s has successfully utilized its marketing mix to appeal to its target audience, making it a globally recognized brand. McDonald’s marketing plan revolves around product development, cultural sensitivity, technology adoption, and consistent brand promotion (Rani, 2023). The firm has developed uniform standards for food preparation, equipment technology, marketing strategies, staff training programs, service organization, methods of selecting locations, and supply systems. These standards apply to all of the firm’s restaurants in every country. McDonald’s offers customers various inexpensive meals, and McDonald’s Happy Meals are popular with children.
McDonald’s also builds brand loyalty through its customer retention programs, offers a rewards program, various promotions, and discounts, further enhancing its appeal to value-conscious consumers. The critical elements of McDonald’s marketing mix are price, product, promotion, and place. Most McDonald’s restaurants are franchised, bringing suppliers and employees together to accomplish common goals (Schramade, 2019). McDonald’s marketing strategy is designed to consider the global market and competitive environment, as well as the needs and preferences of local consumers. It constantly works on innovation and adaptation to remain competitive and meet changing market demands.
Diversity Plan
In the race towards dynamic and sustainable development in light of today’s business environment, companies are increasingly focused on implementing diversity plans. One of the world’s most famous and successful companies, such as McDonald’s, is embracing this wave of change. McDonald’s recognizes that caring about inclusion, uniqueness, and diversity is integral to creating an inclusive work environment where employees can realize their potential and feel at ease.
McDonald’s strives to achieve balance in the recruitment process by ensuring that all candidates with equal qualities and competencies have an equal opportunity to fill a position. The company is creating a more open and fairer environment for everyone who wants to join the team. Employees can participate in various program training, workshops, and online courses to help them develop the necessary skills and expand their horizons.
McDonald’s is committed to creating a culture where employees feel accepted and respected. Recognizing individual perspectives helps to foster a harmonious environment where every person can contribute to the company’s success. Additionally, the firm makes every effort to ensure that career advancement is based on merit and achievement, not prejudice or bias. McDonald’s recognizes that the company’s success is closely tied to its employees, and therefore, creating a diverse and inclusive work environment for them is morally justified and strategically necessary.
References
Crisanti, G. (2023). Europeans are lovin’ it? Coca-Cola, McDonald’s and responses to American global businesses in Italy and France, 1886–2015. Brill.
Competitor analysis through the eyes of McDonald’s. (2023). Toucan Insights. Web.
Mozammel, S. (2019). An analysis of McDonald’s corporation from modernist and postmodernist perspectives. Humanities & Social Sciences Reviews, 7(2), 572-580. Web.
McDonald’s history. (n.d.). McDonald’s. Web.
Nuque-Joo, A., Kim, D., & Choi, S. (2019). McDonald’s in Germany: Germans, still lovin’ it?Academy of Strategic Management Journal, 18(2). Web.
Opait, G. (2019). The McDonald’s Corporation, a „Star” in the „Galaxy of the Businesses”. Annals of “Dunarea de Jos” University of Galati Fascicle I. Economics and Applied Informatics, 3, 181-193. Web.
Our mission and values. (n.d.). McDonald’s. Web.
Rani, J. (2023). Exploring McDonald’s adaptation to changing consumer preferences and trends [Thesis, Seinäjoki University of Applied Sciences]. Theseus. Web.
Schramade, W. (2019). McDonald’s: A sustainable finance case study. Rotterdam School of Management, Erasmus University. Web.
Tien, N. H., Dana, L. P., Jose, R. J. S., Van Dat, N., & Duc, P. M. (2020). Analysis of McDonalds’ entry strategy into Vietnam market. International Journal of Advanced Research and Development, 5(3), 23-29. Web.