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0 INTRODUCTION OF THE COMPANY1.1 HistoryTheMcDonald family moved from Manchester, New Hampshire to Hollywood in the late1930s, where brothers Richard and Maurice McDonald began working as set moversand handymen at Motion-Picture studios. In 1937, their father Patrick McDonaldopened “The Airdrome”, a food stand, on Huntington Drive (Route 66)near the Monrovia Airport in Monrovia, California with hot dogs being one ofthe first items sold. Hamburgers were later added to the menu at a cost of tencents with all-you-can-drink orange juice at five cents. In 1940, Maurice andRichard (“Mac” and “Dick”) moved the entire building 40miles (64 km) east, to West 14th and 1398 North E Streets in San Bernardino,California. The restaurant was renamed “McDonald’s Bar-B-Que” and had25 menu items, mostly barbecue.InOctober 1948, after the McDonald brothers realized that most of their profitscame from selling hamburgers, they closed down their successful carhop drive-into establish a streamlined system with a simple menu which consisted of onlyhamburgers, cheeseburgers, potato chips, coffee, soft drinks, and apple pie.After the first year, potato chips and pie were swapped out for french friesand milkshakes.
The carhops were eliminated, making the new restaurant aself-service operation. Richard and Maurice took great care in setting up theirkitchen like an assembly line to ensure maximum efficiency. The restaurant’sname was changed again, this time to simply “McDonald’s,” and reopenedon December 12, 1948.1.2 Logo Inthe 60’s, McDonald’s wanted to change the logo but their design consultant andpsychologist Louis Cheskin insisted that they left the golden arches. Accordingto BBC he said customers will unconsciously recognize the logo as “symbolism ofa pair of nourishing breasts”1.3 BackgroundMcDonald was founded by two brothers, Richard andMaurice McDonald in 1937 in California.
This largest global fast food chainarrived in Malaysia 43 years later in December 1980. McDonald Corp gave theirlicense to Golden Arches Sdn Bhd to open McDonalds Restaurant in Malaysia.After 26 years, they now have 185 franchise outlet nationwide.
McDonald havecreated over 7000 job opportunity ever since they arrive in Malaysia over theyears. McDonald’s name in Malaysia, it built its name in Malaysia for the firsttime in December 1980, when the United States McDonald Corporation award GoldenArches Restaurant Sdn Bhd, a licence to operate McDonald restaurant. JalanBukit Bintang, Kuala Lumpur was chosen as the most strategic location, thefirst McDonald restaurant in Malaysia has been opened. With the opening of thisrestaurant, McDonald Malaysia was crowned as the first restaurant in thecountry which operate a majority Muslim population. Now, McDonald Malaysia hashad a total of 204 restaurant nationwide network and make new restaurant with aprojected growth rate of between 15-20 restaurants annually. With the openingof this new restaurant, of course employment opportunities for local residentalso increase.
Estimate of 1500 new jobs will be created through the opening ofnew restaurant, the edition of staff and remodeling restaurant available.1.4 VisionMcDonald’s vision statement is as follows: “Ouroverall vision is for McDonald’s to become a modern, progressive burger companydelivering a contemporary customer experience.
Modern is about getting thebrand to where we need to be today and progressive is about doing what it takesto be the McDonald’s our customers will expect tomorrow. To realize thiscommitment, we are focused on delivering great tasting, high-quality food toour customers and providing a world-class experience that makes them feelwelcome and valued.”1.
5 Mission “McDonald’s brand mission is to beour customers’ favorite place and way to eat and drink. Our worldwideoperations are aligned around a global strategy called the Plan to Win, whichcenter on an exceptional customer experience – People, Products, Place, Priceand Promotion. We are committed to continuously improving our operations andenhancing our customers’ experience.
” 1.6 Product and Service Provided McDonald’s provides mainly food andbeverage products. This element of the marketing mix covers the variousorganizational outputs (goods and services) that a company provides to itstarget customers. McDonald’s product mix has the following main product lines:1. Hamburgers and sandwiches2. Chicken and fish3. Salads4. Snacks and sides5.
Beverages6. Desserts and shakes7. Breakfast/All-day breakfast8. McCaféMcDonald’sis primarily known for its burgers. However, the company expands its productmix through time.
At present, customers can purchase other popular productslike chicken and fish, desserts, and breakfast meals. This element ofMcDonald’s marketing mix indicates that the firm innovates new products toattract more customers.1.7 Tagline”IM LOVIN IT”The advertising blitz marked, surprisingly, thefirst time the venerable fast food company had ever used a single message andset of commercials worldwide at the same time. 2.0LEADERSHIP High demand fromcustomer make McDonald become a success company like today. The effective ofstrategies that McDonald used very efficiently by follow the culture of eachcountry.
Such as, in India there is no Beefbecause most people in India is adherent of Buddha and in US they sell a baconthat made from pig that cannot be sell in Malaysia because most of people inMalaysia is Muslim. Furthermore, based on strategy of business level forintegrated Cost Leadership differentiation McDonald of competition by providingcustomer with more option of healthier meals, cheaper prices, and fast service.Product innovation and existing as property upgrade (McCafe, smoothies, andfree Wi-Fi internet.) Hence, the environment inside the McDonald is morecomfortable that makes customer likes to spend time chilling and dine. Next, isfrom delivery, this is for customers that makes an order from home. This can bebenefit for customers that they do not have to waste time energy and fuel. Moreover,McDonald provide Drive Thru service that easier for customer to buy their foodso that the customer did not have to line up the long queue.
So in that case,that’s why people prefer McDonald than other fast-food. 3.0 SWOT ANALYSIS3.1 StrengthensMcDonald’s hassuccessfully rolled out new items like coffees, smoothies, and burger, expandingthe range of menu choices. With a strong product offering, the company hasgrown income throughout the recession, notching strong increases in same-storesales. Operations are spread around the world, meaning the company is notexposed to just once currency or economy.
Even trading near its highs,McDonald’s serves up sizzling dividend yields that top the 10-year Treasury.The yield comes with a side order of annual dividend hikes dating back to 1976.The annual dividend payment has gone from 55 cents per share in 2005 to $2.20this year. 3.2 WeaknessesIt will be harder andharder to find prime locations to build a set of golden arches. The U.
S. issaturated with its restaurants, so growth will have to occur internationally,posing potential cultural challenges. While the annual dividend hikes arelikely to continue, the dividend growth rate has been slowing and will probablycontinue to slow or level off.
3.3 Opportunities Thereare opportunities for new restaurants outside the United States, and McDonald’shas been taking advantage of them. China is a great opportunity for thecompany, as is much of Asia. Menu innovations are limited only by imagination. Lowinterest rates provide cheap capital for growth.
3.4 ThreatsGovernments areconsidering regulations targeting fast food. McDonald’s faces competition fromstrong peers. New product rollouts often have to go head-to-head with establishedplayers like Starbucks. Commodity price increases could increase costs while aweak economy limits the ability to pass the price hikes through to consumers.
4.0 RECOMMENDATION McDonald is a one ofworld-famous restaurant in global level but every advantage have there are owndisadvantage. Majority perception public of the restaurant is selling anunhealthy foods. Most of the foods that McDonald offers is hamburger that makepeople assume it is less health. This is why my group wants to suggest a way toMcDonald provide their foods by add healthier menu.
It will changes people’sperceptions to McDonald’s and it’s also can maximizes profit. In this way, towhom that cares about their health will buy it with open heart. Next, we recommend thatMcDonald should train their employees so that they work effectively andeffiency. This can improve the performance of each worker as well as preventcustomers from getting the wrong order and waiting for a long time. In thisway, it will helps the worker to work well. Additionally, McDonald’s whoprovide drive-thru services can reduce their problems with long-awaitedcustomers as they work well.In addition, werecommend that McDonald should create an application where customers can placeorders at home and take their orders at the restaurant.
Therefore the customerno longer needs to queue at the restaurant and can also avoid mistakes whentaking orders. Customers also do not have to wait to take their order in therestaurant. This application will simplify and save the busy working hours ofcustomers and have no long breaks in the office.
