McDonald's is a restaurant that we all know. It would not be surprising if your childhood memories of the golden arches. As a child or as an adult one may not question: where did it all began, what did this company have to go through to get where it is now, and many others that could be asked about this global success. This magnificent company is much deeper than a hamburger, it defines success at its highest altitude. One thing to keep in mind throughout this paper is that twenty five percent of currency passes through the McDonald's corporation.
McDonald was created by Dick and Mac McDonald. The Brothers started out with opening a hotdog ...view middle of the document...
In 1961 The McDonald sold the business to a man name Ray Kroc.(Ray Kroc). Ray was born in Oak Park, Illinois. He was an entrepreneur who at the time of discovering McDonalds, was a milkshake machine salesman. He saw the potential, and the brothers were willing to give him a shot. Ray worked for the brothers about six years, helping the franchise expand. So it was a smart move by to give their business to him. McDonald really branch out in the 60's. In 1967 McDonald open there first restaurant outside America(McDonald's). They open one in Richmond, British Columbia. In 1970 McDonald opens in Costa Rica which is the third country that has a McDonalds(McDonald's). It was the first restaurant in Latin America. In 1971 McDonalds open in Tokyo, Japan. The business was really spreading across the world. By 1974 McDonald had 3000 plus McDonald across the world(Gilbert, Sara).
Today, McDonald's franchise network is the world’s leading food service retailer with more than 30,000 franchise restaurants serving 52 million people in more than 100 countries. they introduced many items that were affordable for the general middle to low class of the people, because McDonald's makes good money by doing volume business they use products that keep initial food margins low. Of the 30,000 stores, more than 70% are owned by independent operator franchisees (Franchise Direct).
The McDonald’s Corporation is a “Centralized, International company”, they compete in the fast food industry supplying a wide variety of products that consist of 26 items. Breakfast items include biscuit sandwiches, Egg McMuffin, hotcakes and sausage, sausage McMuffin with egg, and scrambled eggs. Sandwiches include the Big Mac, cheeseburger, Filet-O-Fish, grilled chicken salad, hamburger, Quarter Pounder, and the Quarter Pounder with cheese. Dessert items include baked apple pies, chocolate chip cookie, hot fudge sundae, ice cream cone, McFlurry, and milkshakes. Other items on the menu include the Chicken McNuggets, french-fries, garden salad, Happy Meals, soft drinks, and McCafé beverages(Full Menu Explorer). They are able to do this by using standardization, heavy expansion, and branding as the driving force (Vitez, Osmond).
McDonald’s markets an intense, rapid expansion into foreign countries through franchising, joint ventures, and company owned restaurants. Most of the international restaurants are franchise agreements, the minimal risk and maximum gains makes franchising a international McDonald’s success. McDonalds controls its overseas operations by using a combination of two approaches. The majority of control would fall under the "rules" approach, meaning that control lies with headquarters creating procedures and policies for the subsidiaries to follow. However, there is also a little of the "cultural approach" that has surfaced and is being used judging by the adaptation that has occurred in some of the overseas restaurants.
A person franchising a company needs...