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Case Study of MC Donald

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CASE STUDY: MC DONALD’s

SUMMARY:

Established in 1940 by brothers Richard and Maurice McDonald, McDonald's


Corporation has grown to become one of the leading fast-food franchises globally.
The company's success was the 1948 launch of the "Speedee Service System," a
ground-breaking idea that prioritized cheap, speedy service, and a reduced menu.
The company was joined in 1954 by the visionary entrepreneur Ray Kroc, who later
obtained the franchise rights for McDonald's restaurants. The first franchised
McDonald's opened its doors in 1955, sparking the company's global rise and
turning it into a recognized icon of fast food.

McDonald's dedication to efficiency, flexibility, and consistency is the key to its


success. Its reputation was cemented with the 1961 adoption of the Golden Arches
logo and the introduction of famous menu items like the Big Mac and Egg McMuffin
in the years that followed. Overcoming obstacles pertaining to health issues, the
business consistently modified its menu to suit shifting customer inclinations. With
thousands of locations worldwide, McDonald's is a vital component of the fast-food
industry today, providing a varied menu and upholding its status as a phenomenon
in both culture and food.

INTRODUCTION:

Richard and Maurice McDonald launched the world's largest fast-food chain and
cultural icon McDonald's in 1940. With its "Speedee Service System," which
prioritizes affordable prices, speedy service, and a simpler menu, the company
completely changed the market. The 1954 engagement of Ray Kroc and the following
acquisition of franchises made McDonald's a global sensation. Known for its
recognizable Golden Arches emblem, the corporation brought in well-liked menu
items including the Big Mac and Egg McMuffin, which helped it become extremely
successful. With thousands of locations worldwide, McDonald's has maintained its
position as the industry leader in fast food by consistently adapting to changing
consumer demands and health concerns.

BACKGROUND:

The world-famous fast-food giant McDonald's Corporation got its start in 1940 when
brothers Richard and Maurice McDonald launched their first eatery in San
Bernardino, California. In 1948, the brothers unveiled a revolutionary "Speedee
Service System" that prioritized expedient service and a streamlined menu.
Entrepreneur Ray Kroc joined the business in 1954 and eventually became the
owner of the franchise rights for McDonald's restaurants. The fast-paced global
expansion of McDonald's began in 1955 with the launch of the first franchised
location. McDonald's became a cultural and culinary phenomenon with the
introduction of the Big Mac and Egg McMuffin, along with the distinctive Golden
Arches logo and menu changes. In spite of obstacles, the business has consistently
adjusted to shifting consumer tastes, preserving its position as the industry leader
in fast food.
HERE ARE SOME QUESTION OF THE CASE:

1. HOW THEY CONVINCE A BUYERS?

McDonald's uses a combination of affordability, consistency, and smart marketing to


persuade customers. The brand establishes credibility and familiarity by providing a
consistent and dependable experience throughout its extensive worldwide network of
restaurants. McDonald's is accessible to a wide range of customers by providing an
inexpensive menu that includes value meals and specials. The company's enduring
advertising campaigns and iconic logo, which includes the Golden Arches, add to its
popularity and broad awareness. Furthermore, McDonald's adjusts to changing
customer tastes by adding new menu items and addressing trends related to health
consciousness. Convenience is prioritized, and elements like technological
integration and drive-thru choices improve the overall consumer experience. By
using these techniques, McDonald's develops a strong value proposition that
persuades customers to select its products over those of other fast-food restaurants.

2. WHAT ARE THE STRATEGY THEY USED?

McDonald's uses a variety of tactics to stay ahead of the competition in the fast-food
sector. The organization prioritizes uniformity, providing a standardized experience
across all markets to foster familiarity and confidence. Value meals and promotions
ensure accessible for a wide range of customers, making affordability a crucial
factor. Brand exposure and appeal are enhanced by strategic marketing, which
includes the use of memorable campaigns and the iconic Golden Arches.
McDonald's uses local adaptations and menu improvements to adjust to shifting
consumer tastes. The drive-thru alternatives and technological integration along
with the convenience focus improve the entire consumer experience. With an all-
encompassing approach that includes marketing, consistency, affordability,
adaptability, and convenience, McDonald's is able to maintain its competitiveness
and appeal to a wide spectrum of customers.

3. WHAT ARE THE PROBLEM ENCOUNTERED?

Over the years, McDonald's has encountered a number of difficulties, including


criticism regarding the nutritional value of its menu items and health-related issues.
The business has come under fire from the public for its role in problems including
obesity and bad eating habits. McDonald's has also struggled with unfavorable
opinions about the quality of its meals and its influence on the environment. It has
proven to be a constant challenge for the corporation to adapt its menu to reflect
changing consumer preferences and demands for healthier options. Despite these
difficulties, McDonald's has demonstrated resiliency by changing its tactics and
menu selections to meet changing demands from the fast-food sector.

4. WHAT IS THE MODE OF PAYMENT?

McDonald's usually takes a variety of payment methods to give its patrons easy and
flexible choices. Cash, debit cards, credit cards, and contactless payments are the
accepted forms of payment in McDonald's restaurants. Customers can utilize digital
wallets and mobile payment methods such as Apple Pay, Google Pay, and other
specialized mobile applications at many locations. With a wide variety of payment
choices, McDonald's hopes to satisfy customers' tastes and convenience while
improving their overall eating experience by offering quick and easy point-of-sale
transactions.
5. WHAT TYPE OF SALESMAN?

Since McDonald's is a fast-food establishment, counter service is frequently used


instead of traditional sales techniques. The ordering procedure is intended to be
simple and user-friendly. Customers can use self-service kiosks in certain locations
or put their orders at the counter with a cashier. Orders are taken in the drive-thru
by employees using an intercom system. When processing customer orders,
efficiency, speed, and accuracy are prioritized with an eye toward delivering a
convenient and speedy dining experience. Although they interact with customers
during the ordering process, McDonald's employees have a more service-oriented
function than a typical sales position, which is in line with the fast-food industry's
operational paradigm.

6. WHAT ARE THE SOLUTIONS DID THEY USED TO SURVIVE THE PROBLEM?

McDonald's has put in place a number of calculated measures to deal with problems
and guarantee survival in the face of shifting circumstances. The corporation has
included nutritional information in its marketing and added healthier menu items,
such salads, in response to health concerns. In addition, McDonald's places a strong
emphasis on environmental responsibility and sustainability, pledging to source
sustainable foods and cut down on packaging waste. Additionally, the business
customizes its menu to suit regional preferences, exhibiting adaptability and
cultural awareness in a variety of areas. McDonald's has embraced technology by
including self-service kiosks, delivery options, and mobile ordering to satisfy
changing customer demands for convenience. Through constant menu innovation, a
focus on sustainability, and effective use of technology, McDonald's exhibits a
proactive attitude to surmounting obstacles and upholding its position as a
worldwide leader in the fast-food sector.

REMARKS:

McDonald's famed brand, quick service, and well-known menu items have helped to
shape the fast-food sector all over the world. The company's resiliency and
dedication to remaining relevant are demonstrated by its ability to adjust to shifting
consumer demands, embrace technology for ease, and offer innovations like the
enduring Big Mac. McDonald's has shown initiative in the face of criticism over
environmental and health issues by integrating sustainable objectives and healthier
products into their business plan. Due to its enormous success and awareness,
McDonald's has become a significant player in the fast-food industry and has a
lasting cultural impact.

RECOMMENDATIONS:

I recommend McDonald's to keep pushing for environmental sustainability, growing


its efforts in this area, encouraging eco-friendly practices throughout its supply
chain, and reducing packaging waste. In order to accommodate changing customer
tastes, the business should also continue to place a high priority on menu
innovation, with a particular emphasis on providing a variety of healthy options. It is
essential to improve and utilize technology for a smooth and effective consumer
experience across digital and in-store channels. McDonald's favorable reputation
can be enhanced and customer relationships can be strengthened by investing in
corporate social responsibility and community engagement programs. These
suggestions will guarantee that McDonald's continues to be a leader in the dynamic
fast-food sector by meeting consumer expectations for healthier options,
sustainability, and improved digital experiences.
CONCLUSIONS:

In conclusion, McDonald's has established itself as a dependable worldwide icon in


the fast-food sector by creating cutting-edge methods of affordability, consistency,
and efficiency. The company's resilience and dedication to remaining relevant are
demonstrated by its capacity to adjust to shifting consumer preferences, embrace
technology, and address societal issues. McDonald's is still evolving, despite some
difficulties, adding healthier menu alternatives, putting sustainability first, and
keeping a strong brand presence. McDonald's holds a prominent position in the fast-
food industry, with its extensive recognition and cultural influence, as well as its
proactive approach towards tackling current concerns, positioning it for sustained
success in a dynamic and competitive market.

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