McDonald's represents a turnover of 22 billion Euros, and employs more than 450,000 people worldwide. Founded in 1940, this company has become the symbol of fast food. The brand has over 31 000 restaurants and franchises in 121 countries
For years, McDonald's has chosen a business model based on the standardization of its production. The term fast food perfectly matched this channel, whose strategy was focused primarily on the cost of its products and its production line. McDonald's had the sole objective of serving customers who visit the chain, had have them spend the remaining few minutes to eat a burger at their corner table. McDonald's had no ambition to be a place that gives the experience of a traditional restaurant, but rather a place of passage where one can eat fast and cheap.
This business model was that of minimizing production cost, and it was a success as long as customers did not desire anything else. However, in the mid-2000s, McDonald's was in crisis. In 1999 in the anti-globalization leader of France Jose Bove dismantled the Millau McDonald's branch in an act of protest which was widely publicized. At the same time, the best-selling book 'Fast Food Nation' and the documentary 'Super Size Me' pointed at the leading fast food brands, making them responsible for problems of youth obesity, and denouncing the standardization of tastes.
Overwhelmed by all the evils, McDonald's had to react to check this growth which had so far been unchecked for 30 years. This reaction led to an overhaul of the business model, and by taking better account of the expectations of local customers while preserving margins and diversifying its revenue sources. Faced with criticism and challenges encountered in 2000, McDonald's had to respond by changing its basic business model. What were these changes and what were the consequences for the company?
The adoption of a new business model of McDonald's has also resulted in the desire to display an orientation to the social and environmental responsibility, in particular through the choice of a new color more appropriate and symbolic: green.
The change of logo marks a transition and must serve customers with awareness, on the evolution of McDonald's. For this, the company had launched national communication plans, eliminated the former mascot (Ronald the clown) and played the card of Health justified the origins and quality of its products in advertisements:salads, fruit salads, more vegetables into burgers.
The goal was to improve the image of Macdonald's business model by adapting to changing consumer preferences. As part of this new customer focus, McDonald's decided torevolutionize its business model. To get closer to its consumers, it now emphasizes on franchises rather than the direct management of its restaurants.
McDonald's has chosen to act at national level to better adapt to local conditions in countries where it operates. Indeed, the claims and issues related to image McDonald's restaurants are not the same from one country to another.
With this business model McDonald's opted for a strategy that requires in particular to act prominently on its operation by switching to a new design and layout of new restaurants. McDonald's is therefore preferred to focus on increasing sales in its existing restaurants that open new outlets.
Tags: McDonalds, evolution of brand and company, analysis of business model
[...] Ronald McDonald's 2. The strengths of McDonald's: Speed: What attracts lots of customers at McDonald's is the fact that the preparation of the menus is quick and the food is standardized: so the customer knows what to expect when ordering, and also knows that he will not wait for long. Businessmen for example, are fans of such restaurants, because they must eat fast and get back to work. Moderate prices: We can see a lot of students eating at McDonald's because of the moderate prices it has to offer: they are indeed much of the clients. [...]
[...] He said, felt like a kind of Newton, who received a potato on your head " He became the exclusive agent of the McDonald brothers. The McDonald brothers Ray Kroc with his Multimixers in1951 In 1955 Ray Kroc opened his first own restaurant in Des Plaines, a suburb of Chicago in Illinois, he was then 53 years. It contained the recipe for McDonald, the inventors of fast food, pushing even further rationalization and was calibrated in grams of the ingredients. It was fast, clean and prices could be bargained: the formula was spreading fast. [...]
[...] McDonald's constitute multitude of brands. With respect to desserts, the chain offers a wide range of products: • Blueberry Muffin • Crumble • Chocolate Mousse • Mandise • Chocoglacé • McCrispy • Fruit and yogurt The famous McFlurry, Milk-Shake and Sundae are of course a great demand by customers. We note that McDonald's is building on its diversity of products and menus to satisfy customers who are more demanding. In addition, the company must provide for their needs to reclaim those who tend to judge the company for its greasy food and unbalanced meals. [...]
[...] McDonald's had a strategy to establish a fast food restaurant for 25,000 inhabitants, which is not less than 240,000 restaurants for 6 billion potential customers around the world. Currently, the company can boast of having over 30,000 restaurants located in 121 countries (including 880 in France) and offer more than 50 million meals for its customers throughout. The objective of this report is to understand: How could this small company become an empire in no less time? How McDonald's is located globally? [...]
[...] However, to obtain 1 kg of beef with McDonald's is the largest consumer in the world; we need 10 kg of vegetable protein. Thus, to survive the developing countries engage in these export crops at the expense of indigenous food crops. Result, according to the FAO (Food and Agriculture Organization, is "United Nations Food and Agriculture"), over three quarters of global agricultural land devoted to livestock, one third world grain harvest is for livestock, while 1 in 6 men suffer from hunger worldwide. [...]
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