History
1948 McDonald brothers open the first McDonalds and names Speedee as their company image. 1954 Ray Krock, a multimixer salesman becomes the franchising agent. 1955- Ray Kroc opens the Des Plaines restaurant. The 1st days revenues - $366.12
1957 Ray Kroc hands out free hamburgers to Salvation Army guests
1958 Sales grow 151% 1961 Ray Kroc buyout the McDonalds brothers for $2.7 million 1963 Ronald McDonald is introduced 1965 - McDonalds goes public with the companys first offering on the stock exchange for $22.50 per share. First television commercial is aired
Cont.
1966 McDonalds stocks split for the first time.
1967 - Big Mac invented McDonalds in Canada and Puerto Rico open
Problems
Customer Service McDonalds is currently ranked last amongst its top competitors in the FFHR subsector.
#1 Burger King #2 Wendys #3 McDonalds
This may not sound bad at first glance, but when you look at the fact that these three competitors hold 73% of the FFHR market, it puts it into perspective.
cont.
Health Issues
Strengths (cont)
Quality measures through supply chain management Encourage new ideas from within Big Mac Egg McMuffin Large available amounts of capital for future restaurants due to holding a limited number of corporate owned restaurants. Economies of scale
Introduction of local offerings (i.e. Tech Burger with special condiments and toppings)
Changing demographics
Fluctuation of foreign exchange rates Increasing commodity and fuel prices
Competition
Top Burger King 14% Wendys 13% Other strong competitors Sonic 6% Jack in the Box 4% Hardees 3% White Castle 1%
Marketing Techniques
Product Image Customers associate with the brand Domestic Global
cont.
Original symbol Speedee Golden Arches Building structure and colors Local advertising
Slogans
Your kind of place (1967) You deserve a break today (1971) We do it all for you (1965) Have you had your break today (1995) Im lovin it (2003)
Marketing Mix
Five Ps Marketing and Communications Responsibility McSpirit Nights Commercials Atmosphere
Management In McDonalds
Ray Kroc
The quality of a leader is reflected in the
standards they set for themselves We take the hamburger business more seriously than anyone else You're only as good as the people you hire If there is time to lean there is time to clean
Created by Fred Turner and Ray Kroc in 1961 All levels of managers in the McDonalds family go through training at this facility.
At McDonalds, our training mission is to be the best
Hamburger University
talent developer of people with the most committed individuals to Quality, Service, Cleanliness and Value (QSC&V) in the world. Our strong commitment to the training and development of our people has resulted in many firsts and honors.
Cont
Hamburger University has given emphasis to consistent restaurant operations procedures, service, quality and cleanliness. Because of its success H.U. has become the global center of excellence for McDonalds operations training and leadership development. With this training it creates unity for the CEO to the local store manager, they all have the same goals in mind which is.
Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile. And by doing this we are our
Past Strategies
Product Development
Hits: Fries, Happy Meal, Big Mac, Egg McMuffin, Salads, Apple Slices, Yogurt Parfaits, & Promotions Misses: McPizza, Fajita, Carrot Sticks, McLean, and the Arch Deluxe
cont
Market Development
Hit: International growth Miss: Over-expansion in US
Alternative locations
Forward Integration
Distribution through franchisees with control over store presentation, menu items
New Strategies
Product Development: Focus on core business
Quality and taste issues
Food delivery methods
cont
Redevelop Franchisee Relationships
Cost Reductions
Home office cost reductions Franchising corporate owned restaurants
Recommendations
Improvements in: Customer Service
Focus on team, not individuals Reward the behavior that you want
Training/Compensation
Training in customer service, speed and accuracy Increase pay to attract more qualified applicants
Technology
Improvement of order verification system
Thank you