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.