Case Analysis Of Mcdonald's
The McDonald 's Corporation is the world 's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries across 35,000 outlets. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth.
A McDonald 's restaurant is operated by a franchisee, an affiliate, or the corporation itself. McDonald 's Corporation revenues come from the rent, royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants. In 2012, McDonald 's Corporation had annual revenues of $27.5 billion, and profits of $5.5 billion. McDonald 's primarily sells hamburgers, cheeseburgers, chicken, French fries, breakfast items, soft drinks, milkshakes, and desserts. In response to changing consumer tastes, the company has expanded its menu to include salads, fish, wraps, smoothies, fruit, and seasoned fries.
The general restaurant industry is a very unlikely place to employ a cost leadership marketing strategy however McDonald 's has been extremely successful with this strategy by offering basic fast-food meals at low prices. They are able to keep prices low through a division of labour that allows it to hire
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