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The Founder Case Study by Ronnel Tienda

Dick and Mac McDonald opened a hot dog stand in California in the 1950s that became very popular for its burgers and milkshakes. They opened the first franchised McDonald's restaurant in 1955. While the brothers faced obstacles like limited resources and lack of industry knowledge, they created strategies to decrease costs and wait times that helped McDonald's grow exponentially into a globally recognized brand. Some of the early challenges they overcame included difficulties monitoring quality across locations, high operating costs, and properly training staff. They developed an efficient kitchen system using an assembly line approach to quickly prepare and serve food that addressed these issues and attracted many customers. McDonald's success demonstrates the value of quality management and customer-centered practices.

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0% found this document useful (0 votes)
170 views5 pages

The Founder Case Study by Ronnel Tienda

Dick and Mac McDonald opened a hot dog stand in California in the 1950s that became very popular for its burgers and milkshakes. They opened the first franchised McDonald's restaurant in 1955. While the brothers faced obstacles like limited resources and lack of industry knowledge, they created strategies to decrease costs and wait times that helped McDonald's grow exponentially into a globally recognized brand. Some of the early challenges they overcame included difficulties monitoring quality across locations, high operating costs, and properly training staff. They developed an efficient kitchen system using an assembly line approach to quickly prepare and serve food that addressed these issues and attracted many customers. McDonald's success demonstrates the value of quality management and customer-centered practices.

Uploaded by

Lennor Adniet
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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THE FOUNDER, THE CASE STUDY OF MCDONALD’S

BY: RONNEL TIENDA


BSBA 2ND YEAR 2ND TERM

HISTORY
Since 1954, McDonald's has been an iconic and beloved fast-food brand that is now

recognized worldwide. The history of this brand can be traced back to when two brothers, Dick

and Mac McDonald, opened a hotdog stand in California. Their popular burger and milkshake

menu quickly grew in popularity, leading to the launch of the first franchised restaurant in

1955. The company has since grown exponentially through strategic marketing campaigns and

providing customers with affordable yet tasty food options. Over the decades, it has become

one of the most recognizable brands known for its reliable service and delicious products,

making it one of the most popular.

OVERVIEW OF THE CASE

Dick and Mac McDonald were two ambitious brothers from New Hampshire who

dreamed of starting their own business. Despite facing many obstacles in their journey, they

persevered and eventually established an iconic fast-food chain that has become world-

renowned. They encountered struggles such as limited financial resources, difficulty in finding

suppliers for ingredients, and a lack of industry knowledge. However, with sheer determination

and hard work, they eventually created a successful business that continues to thrive today.
The brothers Dick and Mac McDonald’s run business experienced difficulties. They only

actually came up with a strategy that decreased both the workforce and waiting times after

they began to think outside the box. Normally, individuals would have to wait in lengthy lines to

order food from eateries. Because they had to be washed, much alone shattered, the

traditional plates used to serve food resulted in additional costs for the owners. Richard and

Dick McDonald remodeled both their restaurant's kitchen and interior. The waiting time was

decreased from hours to just 30 seconds as a result; hence, the "speeded" system.

McDonald’s poor competitive position can be seen through its declining sales and profit

revenues in the past. This paper is going to discuss the main marketing issues that McDonald’s

faces in its operations and how they can be improved to help the firm regain its competitive

position in the industry.

KEY ISSUES

A. Low innovation

Low innovation in the firm has made it difficult for the firm to attract new consumers

who are willing to try out the product it sells in the market.

B. Failed effective product development strategy

The firm has also failed to come up with an effective product development strategy to

help it sell new high-quality products that satisfy consumers’ expectations. As a result, this has

affected the company’s competitive position in the market because it has failed to keep up with

modern market trends that are crucial for its long-term performance.
C. Improving franchise relationship

The firm also needs to improve the relationships it has with its franchisees. They feel

that the firm’s marketing strategies are not effective and fresh ideas are needed to help the

firm regain its footing in the industry. In addition, they insist that more needs to be done to

improve the quality of the firm’s operations in the industry.

DEFINITION OF THE PROBLEM

CHALLENGES IN THE EARLY YEARS OF OPERATION.


A. Difficulties in monitoring the quality
Indeed, the brothers tried to expand the market into other cities. But they failed

because it was so difficult for them to keep track of and ensure that the goods were of high

quality when they were sold. As a result, they closed more than three of their newly opened

branches.

B. High operating cost


In making fast and fresh hamburgers and milkshakes the operation to make them is

high. To make it fast it needs many crews and many appliances.

C. Teaching proper training to the staff


I observed how the workforce was truly trained in the human resources field. How to

move around in the kitchen to get the best results. The brothers' true concern for quality

management was evident by the fact that they had to wear the proper uniform precisely.
SOLUTIONS

Because they could not independently verify that the quality was attained in this other

place, the brothers temporarily closed the branches they had established. They eventually

established a new technique and withdrew to the tennis court behind their house. They

arranged a line of food preparation and delivery so employees could most effectively grill the

meats 40 patties in 110 seconds, fry the fries 900 servings an hour, and deliver a full meal to a

hungry consumer in only 30 seconds using big chunks of red chalk to plot the action. Dick and

Mac were able to address the pricey staff issue thanks to this hamburger dance. Consumers

would have to get out of their cars, gasp, and walk to the window to place an order instead of

the enticing carhops. Furthermore, visitors could marvel at the careful, well-organized kitchen

where their meal was being made while inside the "fishbowl," which was open to the public.

The new workforce, who would be all male, would wear messy, conservative paper hats and

white uniforms to give off the impression that they were surgically clean and precise. The

brothers thought that female employees were a needless distraction. After a while, patrons

flocked to the restaurant in droves to try it for themselves. They were absolutely ready to give

up choice in favor of efficiency and cost. The big attraction wasn't the caliber of the meal.

CONCLUSION
The company McDonald’s understood the value of its customers-centered beliefs,

emphasizing how to use quality management techniques to assist in company management. An

efficient strategy has been examined, and the variations in consumer wants, needs,
expectations, and perceptions have been fully supported by an example. These substantial

quality issues with external customer services might be expanded to close other significant

gaps, and as a result, it could be urbanized to work for internal customers as well as for staff

members and service providers. In addition to maintaining a very pleasant environment

throughout each of its locations, McDonald's has kept the quality of its items up to par with the

standards set by the international community McDonald's offers.

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