Global Business Plan
Global Business Plan
Description of Business
Mcdonalds is the largest restaurant chain in the world today, they have been around long enough to see the changes in society and not changed their business model as a result. You cant go one day without seeing the golden arches and its something that has become apart of American culture to the entire world. Mcdonalds single handily built a genre of restaurant chain built on speed and dependability that changed the way we eat. Mcdonalds focuses on getting you in and out of the establishment fast in order to serve the customer better, but also to get most customers into the restaurant quicker. Fast food is coined from Mcdonalds creating a dining experience where the food is orders and to you almost instantly.
Description of the Industry
Fast food is a 200 billion dollar industry, its no wonder why its the most thriving industry in the world market. Places like Taco Bell, Burger King and Wendys have taken a slice of this revenue, however they all pale in comparison to the sheer amount of both restaurants and also the locations that Mcdonalds is in. Places like hospitals, airports, school, shopping malls and many others have small locations inside them and they use contracts for those spaces to keep those locations open. The fast food industry relies on prime location next to roads and other easily accessible spots to get customers in and out as many times as it can.
As times have progressed, so has Mcdonald’s, They have added digital cash registers, self serve kiosks, partnered with companies like door dash and grub hub to allow customers to stay at home or the office and still get their Mcdonald’s fix in. It saves time for those that have the ability to order online and also creates a new revenue stream for the economy in allowing people to deliver food. Mcdonald’s also has created their own app that allows you to purchase online and pick up when you get there, no drive thru, no wait, all you do is pick up and leave. One could argue that Mcdonald’s has done more in terms of embracing other forms of business in the name of sales than any other establishment, burger king doesn’t allow grub hub and others to pick up and the sales goes for jack in the box.
The marketing plan that most restraint chains use is something that Mcdonald’s created decades ago, one could also say that Mcdonald’s has the market strategy down. Examples of this are marketing the Mcrib during the summer and also different options during ramadan or lent when religious situations prohibit people from eating meat. I have been in Arab countries with Mcdonald’s and have seen big macs with chicken patties instead of beef because those nations don’t eat beef, or burgers with falafel instead of meat. This is something Mcdonald’s does world wide to appeal to the consumers In that nation, Singapore for example have Spaghetti and other options as well to make them feel happy and special compared to others as its not offered anywhere else.
Mcdonald’s are almost all independently owned, it has created controversy in that Mcdonald’s mandates that franchisees all have many million in capital up front and that Mcdonald’s corporate has nothing to do with the locations. Other fast food restaurants have franchises, but Mcdonald’s are almost entirely sold and not owned by the company.
Mcdonald’s has slowly grown from its initial public offering every year due to the popularity that it has maintained for almost a 80 years. Since going public in 1965 when they had just 700 locations, in 2020 they have 37,240 and the stock is worth 156 compared to the 50 cents it started at. Mcdonald’s has exploded in the 2010’s where the stock was $60 on Jan1 2010, to a price of $198 on Jan 1 2020. This is due in part to Mcdonald’s ver changing strategy of involving as many ways as possible to make sales go up.
As said in the production plan most of the restaurants that McDonald’s has are independently owned and operated. Due to this, the corporate organization has begun to entirely focus on marketing and pushing new products to market. R&D has created other companies like chipotle that grew into their own company, they have also came up with many different menu options that revolve with the seasons.
Due to my research I think that Mcdonald’s needs to focus on staffing and inventory, the staff issue at Mcdonald’s is the main drawback to going into the restaurant. You never know what the food will turn out to be like and thats due to the staff being underpaid and undertrained. Many people view working at Mcdonald’s as a bad thing and in turn the people that work at the locations don’t care. For Mcdonald’s to continue to grow they need to re invent themselves and create a workforce that gets paid a little more, thats. Little more trained and a little more passionate about their job compared to the other brands. This is what can help set Mcdonald’s apart from others as they have in the past gotten bad reputations for not caring about their clients, if they change it will make Mcdonald’s unstoppable and will have cornered the market in fast food.
McDonald’s Corporation Common Stock (MCD) Financials. (n.d.). Retrieved from https://www.nasdaq.com/market-activity/stocks/mcd/financials
McDowell, E. (2020, February 10). THEN AND NOW: Photos show how McDonald’s has changed through the years, from its menu to its mascot. Retrieved from https://www.businessinsider.com/then-and-now-mcdonalds-restaurants-through-the-years
Home. (n.d.). Retrieved April 1, 2020, from https://www.franchisedirect.com/information/markettrendsfactsaboutfranchising/thesuccessofmcdonalds/8/1111/