Mcdonald'S Corporation: A Brief History
Mcdonald'S Corporation: A Brief History
A Brief History
Started in the US in 1940, the company began as a barbecue restaurant
operated by Richard and Maurice McDonald at 1398 North E Street at West
14th Street in San Bernardino, California. It was a typical drive-in of its era,
where drivers parked their cars and carhops came to take their orders.
Although many drive-in restaurants were established before, McDonalds
became a success. Many Californians were delighted the way McDonalds
serves their customers getting the full menu and servers without leaving
their respective cars.
After World War II, many people, especially Americans, demanded a good
life which involves speed in all things. That is the very reason why
McDonald brothers had to temporarily close their successful drive-in
restaurants for alterations. They remodelled their kitchen based on Henry
Fords assembly line to speed things up. They speed up servers by designing
new equipment such as bigger grills and condiment dispensers to make the
hamburgers the very same way. Also, the car hop service was replaced with
self-service drive-in restaurant. As a result of this revolution, McDonalds cut
their serving time from twenty minutes to just thirty seconds. The menu is
also reduced to nine items: hamburger, cheeseburger, three soft drink
flavors in one 12-ounce size, milk, coffee, potato chips, and a slice of pie. By
1949, McDonalds replaced the potato chips with French fries.
The original mascot of McDonald's was a man with a chef's hat on top of a
hamburger-shaped head whose name was "Speedee". By 1967, Speedee was
eventually replaced with Ronald McDonald when the company first filed a
U.S. trademark on a clown-shaped man having puffed-out costume legs.
The McDonalds sold their first franchise license to Neil Fox in 1952 for a onetime fee of $1,000. Once the "Speedy Service System" restaurant design was
completed, the brothers anticipated no further connection with the
operation, receiving no revenues from the store, and exercising no control.
They expected Fox to call his store "Fox's". But the brothers were surprised
when Fox informed them that he wants to call his restaurant McDonalds.
On April 15, 1955, Ray Kroc opened his first McDonalds restaurant in Illinois
not knowing that it is already the ninth franchise of McDonalds. Before Kroc
to start business he had to buy the competing franchise in Chicago for
$25,000 which left him almost broke out.
He kept his restaurant
meticulously clean and efficient. Kroc used his first restaurant as a showcase
for selling more McDonalds franchises across the country.
In 1961, Ray Kroc purchased the shares of the McDonald brothers for
$2,700,000 making him the sole owner of the McDonalds System Inc.
By April of 1965, McDonalds became the first ever fast food company to go
public. Stocks were initially issued at $22 per share. Stock price rose to $49
per share just weeks later after McDonalds went into public. By the end of
1960s, McDonalds became the largest food supplier across the country.
The first international franchise was opened in 1967 in Canada, and was
followed by another in Puerto Rico later that year.
Vision Statement
Our overall vision is for McDonalds to become a modern, progressive
burger company delivering a contemporary customer experience. Modern is
about getting the brand to where we need to be today and progressive is
about doing what it takes to be the McDonalds our customers will expect
tomorrow. To realize this commitment, we are focused on delivering great
tasting, high-quality food to our customers and providing a world-class
experience that makes them feel welcome and valued.
Mission Statement
Our mission is to be our customers favorite place and way to eat & drink.
Were dedicated to being a great place for our people to work; to being a
strong, positive presence in your community; and to delivering the quality,
service, cleanliness and value our customers have come to expect from the
Golden Arches a symbol thats trusted around the world.
George, eager to learn the system from top to bottom, worked the whole
circuit for much longer hours, mopping floors, wiping kitchen counters,
flipping burgers, and ringing up the cash registers.
News of Georges stint in Hong Kong reached Oakbrook, where McDonalds
executives wondered what he was up to.
In late 1980 six years after he first made contact with McDonalds
headquarters, four years after he first met with the American executives in
Manila, and just months after voluntary immersion in one of the fast-food
giants Hong Kong outlets the Americans returned to Manila and met with
him again, this time to deliver the good news: he was being awarded the
franchise.
The first-ever McDonalds restaurant in the Philippines opened in 1981 and
still stands on its original location in Morayta, Manila.
McDonalds brings its food and convenience closer to every Filipino as it
opens its first stores in Visayas and Mindanao. It was in 1992 when
McDonalds restaurants were put-up in the cities of Cebu and Cagayan De
Oro.
In order to achieve its vision of Una Sa Pamilyang Pinoy, McDonalds
Philippines knew it had to become a 100% Filipino-owned company. Since
2005, McDonalds Philippines remains all-Filipino.
Today, McDonalds has grown to become one of the countrys leading fast
food chains with more than 500 restaurants nationwide.
MISSION:
To serve the Filipino community by providing great-tasting food and the most
relevant customer delight experience
In addition, there was an internal shock resulting from the previous periods
external finance boom and the financial crisis which arose from the excessive
financial leverage of public and private firms in 198 1. The governments
attempt to selectively bail out favored and distressed firms led to a severe
loss of private investment and massive private capital outflows.
In 1980, the Philippine economy began to experience the main symptoms of
an economic crisis, namely:
-
In particular, the economy slowed down during the period 1980-l 982 to an
average growth of 3.57 percent. Real GNP growth rate dropped from 4.62
percent in 1980 to 2.84 percent in 1982. There was also a decline in net
factor income from abroad as real GDP growth fell from 5.15 percent in 1980
to 3.62 percent in 1982.
During that year, a stand-by arrangement with the International Monetary
Fund (IMF) and the first Structural Adjustment Loan (SAL I) amounting to
$200 million were obtained by the Philippine government. As a result, several
measures were adopted to move the Philippine economy towards a more
market-oriented one. These included:
-
Launched in 1981, the restructuring of the trade sector started with the
implementation of the tariff reform program. This was to be completed with
the lifting of quantitative restrictions (QRs) on imports and the abolition of all
export taxes except on logs. It also called for the reduction of tariff rates
from a maximum of 100 percent to only a peak of 50 percent and a floor rate
of 10 percent by 1985.
The period 1980-1982 was crucial to the financial sector as well. Together
with the implementation of trade reforms was the adoption of the financial
liberalization policy. One particular feature was an offshoot of a joint IMFWorld Bank Report on the financial sector of the economy that introduced a
new type of banking called universal banking or unibanks for short. The
unibanks were allowed to perform both investment and banking functions.
Interest rate 10 liberalization which began in 1981 was completed in 1983
with the lifting of the ceilings on interest rates on short-term loans.
In 1981, the financial system was shaken by the fleeing of a rich financial
tycoon leaving millions of dollars in debt in various Philippine banks. This
generated panic among money market investors and depositors and led to
massive withdrawals. The financial panic eventually brought many
investment houses, off-shore banking units and commercial banks into
trouble.
From the point of view of the World Bank, however, this early period of
structural adjustment was characterized mainly by a gradual removal of
major controls and distortions affecting factor and commodity prices. While
progress was not always smooth, nor without some temporary back-tracking,
the incentive structure was laid as the basis for a better pattern of growth.
The Crisis Period (1983-1985)
The Philippine economy reached a crisis situation in 1983. Although GNP and
exports were rapidly expanding during the 197Os, the underlying structural
weaknesses in the economy persisted, such as:
-
affected the production costs as the inflation rate accelerated from about 10
percent in 1982 to 50.35 percent and 23.1 percent in 1984 and 1985,
respectively.
The recession was especially hard on the poor. A World Bank study showed
that 59 percent of Filipino families lived below poverty levels in 1985. This,
as the World Bank Country Economic Memorandum indicates, was due to
increasing underemployment, inflation and overvaluation of the exchange
rate. If the adjustment had been undertaken before, and if the stabilization
had been done through a greater reliance on the exchange rate and supply
enhancing 12 policies, the income of the poor could have been sheltered
from this drop in production activity. The impact of such adjustment on the
poor could have been minimized if there was an accompanying set of social
safety net measures to mitigate the impact, and if the drop in government
expenditures had been accompanied by a drastic change in the composition
of public expenditures. The latter were largely benefitting higher income
groups because of the type of social services and investment projects in
which the government was involved.
In sum, the negative macroeconomic developments for 1983-85 were as
follows:
-
Segmentation
Geographic
Segmentation
criteria
Region
Domestic/international
Density
Urban/rural
Age
8 45
Gender
Demographic
Life-cycle stage
Behavioral
Income
Occupation
Degree of loyalty
Benefits sought
Personality
User status
Social class
Lifestyle
Psychographic
Target Market
McDonald's marketing targets everyone and does not have a selected
audience. The company claims that their restaurants offer meals for children,
a place to relax with free Wi-Fi for adults, and a quick breakfast for those in a
hurry in the morning.
The company employs different marketing strategies during different
seasons of the year. They are constantly investigating what their customers
enjoy, how their lives are changing and what they can offer them as a result,
in order to better maintain their business.
Customers are not all the same. Market research identifies different types of
customers. For example:
Products
After World War II, many people, especially Americans, demanded a good
life which involves speed in all things. That is the very reason why
McDonald brothers had to temporarily close their successful drive-in
restaurants for alterations. Their menu was reduced to nine items:
hamburger, cheeseburger, soft drinks, milk, coffee, potato chips, and a slice
of pie. By 1949, McDonalds replaced the potato chips with French fries.
McDonalds regularly develop new products. It started to diversify its menu
during 1960s. Franchisees became their first menu innovators. A franchisee
in a Catholic community, for example, came up with the idea of a meatless
sandwich during Friday. Thus, he created the fillet-o-fish sandwich. Also, the
famous Big Mac was developed by a franchisee in Pittsburgh, who was trying
to compete with Burger Kings Big Whopper. Big Mac made it to McDonalds
menu in 1968. The apple pie was developed by a franchisee in Knoxville.
It was in 1970, when Jim Delligatti, a franchisee from Pittsburgh who also
created the Big Mac, started experimenting on breakfast items. He was
looking for a way to bring more business to his restaurant during the morning
hours. Opening at 7:00 A.M. (instead of the usual 11:00 A.M.), Delligatti
started selling coffee, doughnuts and sweet rolls - adding pancakes and
sausage to the menu a year later. Even with limited selections by 1971,
Delligatti was already doing 5 percent of his business during breakfast.
In the late 1971, Jim Peterson decided to franchise a McDonalds restaurant.
He also saw the breakfast opportunity that Delligatti have seen. Peterson
started to develop a new breakfast item which could have be eaten by hand.
He, then, combined a slice of cheese with a hot egg. Since poaching eggs
didnt fit into the McDonalds assembly line process, he started to develop a
new creative cooking utensil a cluster of six rings that was placed on the
grill to form the eggs in the shape of an English muffin. When he combined
egg, muffin, and a bacon, he created a new breakfast product which was the
Egg McMuffin. By 1976, McDonald's had perfected the breakfast menu,
elevating its brand above the competitors, which didn't introduce commercial
breakfast items until the mid-1980s.
McDonalds still considers local tastes and preferences in developing its
menu. In Indonesia, McDonalds offers McRice because their market
demands that some of their staple food be present at every meal. Take also
for instance the McBeer. It is sold in parts of Europe and Asia as beer is both
culturally accepted and a part of their restaurant experience. USA has even
Services
More than great tasting food, McDonalds Philippines offers world-class
services that cater to the changing lifestyles of its customers. With 24-hour
restaurants and delivery services, via McDelivery, Drive-Thru and Dessert
Centers, McDonalds Philippines ensures convenience for its customers,
anytime, anywhere.
It was in 2005 when McDonalds first introduced its 24-hour restaurants and
all-day McDelivery service to the industry. At any time, customers can dial
86-2-36 or log-on to mcdelivery.com.ph to get their McDonalds favorites.
And then in 2014, McDonald's expanded its McDelivery service to mobile
through the McDo PH App, downloadable FREE at the App Store and Google
Play Store.