Mcdonald’s History

 McDonald's was started as a drive-in

restaurant by two brothers, Richard
and Maurice McDonald in California,
US in the year 1937. The business,
which was generating $200,000 per
annum in the 1940s, got a further boost
with the emergence of a revolutionary
concept called 'self-service.'
 The brothers used assembly line
procedures in their kitchen for mass
production. Prices were kept low. Speed,
service and cleanliness became the
critical success factors of the business. By
mid-1950s, the restaurant's revenues had
.
reached $350,000.
 As word of their success spread, franchisees started showing
interest. However, the franchising system failed because the
 McDonald’s History
• At this point, Ray Kroc (Kroc), distributor for
milkshake machines.Expressed interest in the
business, and he finalized a deal with the
McDonald brothers in 1954.

•He established a franchising company, the

McDonald System Inc. and appointed
franchisees.

•In 1961, he bought out the McDonald brothers'

share for $2.7 million and changed the name of
the company to McDonald's Corporation. In
1965, McDonald's went public...

Currently McDonald's operates in 121 countries &

having more than 30000 restarunt and serving 53 Mn
customers everyday
 McDonald’s SWOT Analysis
 Strong global presence
 Aggressive marketing planning
 Strong real estate portfolio
 Strong brand recognition
 benefits from cost reduction
 Balance sheet position
 Declining market share
 Weak product development
 Quality and taste of products
Next
 International expansion
 Only serving 1% of the world’s
population
 Growing dining-out market
 Mature/overstored industry
 Strength of competition
 More health-conscious
consumers
 Fluctuation of foreign exchange
rates; Economies
 Mc -Strategies

 International Growth
 Forward Integration
-Distribution through Franchisees
 Backward Integration
-Local Sourcing, Cold Chain, Suppliers

 Market penetration & Development

- McDelivery
 New Product Development
- Aloo Tikki, Salad
 Past Mc Product Strategies

• Product Development
– Successes: Fries, Happy Meal, Big Mac, Egg
McMuffin, Promotions
– Failures: McPizza, Fajita, Carrot Sticks,
McLean, and the Arch Deluxe
 Contribution to Economic Growth

• McDonald's India has already

contributed directly & indirectly
Rs. 95 crore (approx. 16 per cent
of total turnover) as revenue to
the Center and the State towards
Sales Tax, House tax and Income
Tax in the last seven years. By
2005 this amount shall see an
increase of more than 30 per cent
per annum.
BYE BYE SEE U AT McDonald’S