McDonalds Case Study

1.0 Background of the Company

McDonalds is one of the leading global fast food franchises in the world. McDonalds has more than 33,000 restaurants worldwide in 119 countries. The company has 1.7 million employees (McDonalds US, 2011). McDonalds has more than 80% franchisee restaurants around the world.

McDonalds’ C.E.O is Jim Skinner; he was elected to this post in November 2004 and has been with McDonalds for 39 years (Forbes, 2011). McDonalds’ has its head corporate offices at Illinois, Chicago in United States (McDonalds US, 2011).

In Malaysia, McDonalds was started in 1982, when McDonalds Corporation U.S.A gave Golden Arches restaurant SDN BHD a franchise for operating the fast food (McDonalds MY, 2011). The first McDonalds restaurant in Malaysia was opened on April 29th 1982, at Jalan Bukit Bintang, Kuala Lumpur. Currently McDonalds Malaysia has more than 200 restaurants nationwide and is expanding annually with 20-25 restaurants (McDonalds MY, 2011).

McDonalds in Malaysia employs 10,000 plus people, with 120 staff handling the day to day operations. McDonalds has the following primary products in its marketing offer: beef/chicken/fish burgers, French fries, soft drinks and desserts such as ice cream and pie (McDonalds MY, 2011).

1.1Brief History

McDonalds was started in 1940, by Dick and Mac Donald, two brothers who opened a Bar-B- Que restaurant on Fourteenth and E streets in San Diego Bernardino, California. It was a drive in, featuring a large menu and its main customers were military personnel stationed in the particular area.

In 1954, Ray Kroc a 52 year old salesman was fascinated by the brother’s operation and he learnt that they were looking for a nationwide franchising agent. Kroc was determined that his future would be in the hamburger business.

In 1955, Kroc opens his first McDonalds in Des Plaines, Illinois on April 15. The first day sales were $ 366.12 compared to its current (2011) sales of $1.51 billion (New York Times, 2011). This jump in sales is due to McDonalds’ efficiency, well trained staff and its great tasting food.

In 1965, there would be over 700 McDonald’s restaurants throughout the United States.

In 1956, Fred Turner was hired who would later become the head of operations and defined one of the company’s core values as “the quality, service and cleanliness” that continues to this day.

By 1958, the company sold its 100 millionth hamburger. In 1965, McDonalds celebrated its 10th anniversary with its I.P.O at $ 22.50 per share.

In 1974, the first Ronald McDonald House was opened in Philadelphia in order to help children suffering from leukaemia. This was because, the area did not have these facilities for sick children and this example highlights the company’s awareness of its social responsibility.