Critical Success Factors of McDonald's

INTRODUCTION

McDonald’s one of the prosperous fast food company in a market. McDonald’s was open in 1940 with drive-in restaurant. Richard and Maurice McDonald was the founded of McDonald’s. At that time, McDonald’s sell nine items variant product. The nine products are hamburger, cheeseburger, soft drink, milk, coffee, potato chips and a slice of pie. Surprisingly, in the middle of 1940s, McDonald’s get $200,000 for the annual sales.

Richard and his brother Maurice is the inventor of McDonald’s. However, they are lack of skills to run and manage their invention, McDonald’s. In year of 1948, Richard and Maurice found some problem. In that time, another drive-in restaurant that have similar concept with McDonald’s began to appear and be the competitors of McDonald’s. Besides that, the increasing of labor cost made them in distress. Some ideas come out, they try to increase the sales volume by improving the speed to serve the customer. Richard and Maurice come with new concept based on speed, lower prices, and volume. In 1952, this two brothers start to franchising their restaurant, but this idea make them became worst. They do not have skill and knowledge about franchising, thus the original idea and concepts of McDonald’s was stolen.

By the year of 1954, two brothers met with Ray Kroc, who sells Multimixers to them. Ray Kroc really amazed about McDonald’s. Kroc excited to manage McDonald’s and want to make McDonald’s come back again in the competitive markets. In 1955, the new concept of McDonald’s was open by Ray Kroc. Kroc’s opened it in Des Plaines, a northwest district of Chicago. On the first year, Kroc sells 18 franchises of McDonald’s. Moreover, less than a decade Kroc’s sell 100 million hamburgers an open the 700th restaurant throughout the United States. McDonald’s go public in 1965 by offering stock at $22.5C per share.

This fast food restaurant which have a mission “to be our customer’s favorite place and way to eat”, open the first international McDonald’s restaurant in Canada and Puerto Rico in 1967. Nowadays we can find McDonald’s in 119 countries around the world.

McDonald’s awarded many awards, such as:

1. The Most Innovative Food Company in 2011 from fast company

2. The Most Valuable and Inspiring Brands in 2010 from Forbes

3. Eleventh position in Most Admired Company in the World in 2012 from Fortune

4. The second position on the TOP 100 Global Franchise Award that was held by franchisedirect.com

5. The first rank for the TOP 50 Quick-Serve and Fast-Casual Brands 2011

However, McDonald’s has experienced decline in their sales. Additionally, McDonald’s shares were fallen in 1985 from