question archive Please help me to make an essay about How McDonald's Became at the Top in the Fast Food Industry, mainly about their competitiveness and their strategies   Case: Search for McDonald-case-competitiveness-strategies-analysis for the case basis Ps

Please help me to make an essay about How McDonald's Became at the Top in the Fast Food Industry, mainly about their competitiveness and their strategies   Case: Search for McDonald-case-competitiveness-strategies-analysis for the case basis Ps

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Please help me to make an essay about How McDonald's Became at the Top in the Fast Food Industry, mainly about their competitiveness and their strategies

 

Case: Search for McDonald-case-competitiveness-strategies-analysis for the case basis

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            McDonald's became the leader in the fast-food industry with its strong focus on customer service, response to competition, and use of marketing techniques early on in their development. Please note that we are not proposing that the tactics used by McDonald's are the right or wrong way to strategically or ethically achieve growth. This essay outlines the strategies and tactics employed by the company that has grown significantly since its inception. We see McDonald's as an interesting case study to examine their strategies and tactics, and failures.

           In 1967, McDonald's spent $2.3 million, or about 1 percent of its sales, on its first national advertising campaign, which was an unheard amount for a fast-food chain. Ray Kroc joined McDonald's in 1955, eventually taking it over, and is the one attributed for its rapid growth and success. He started to franchise and eventually bought McDonald's from the McDonald's brothers in 1961.  Ray valued advertising and marketing. McDonald's spends approximately 2 billion dollars in advertising - targeting different groups including children. 

            There are three objectives McDonald's has for advertising: make people aware of the item, feel positive about the item, and remember the item.  McDonald's invested in advertising earlier in their establishment. McDonald's Happy Meals included toys like popular Teenie Beanie Baby Promotion in 1996 and 1997 and established a Global Marketing Alliance with Disney/Pixar in 1998 (Promoted their movies). They advertised towards children targeting popular toys that children would be drawn towards.

             Another strategy used is Advertising Towards Children & The FamilyMcDonald's marketed towards families and children it's presented as a fun place to go with your family and it created the recognizable icon of the golden arches. In 1952, the McDonald brothers decided they needed a new building, so they closed down their store to create a more eye-catching appearance that included the two yellow-golden arches we know today. 

                      In 1967, Ronald McDonald was introduced by a franchise owner. Franchise owners realized the importance of advertising and utilizing the icon as a clown to appeal to children. It is noted that by 1973, Ronald McDonald was more familiar to 96% of American children than the name of their president.

                     The keys to MacDonalds success is its focus on customer satisfaction. staff are encouraged to be friendly and provide "service with a smile". They focus on customer satisfaction (short wait times, hot food, etc). Ray Kroc was known to offer refunds to customers waiting longer than 5 minutes and say comments to workers like "if you've got time to lean, you've got time to clean" McDonald's Operations Competitive Strategy focuses on cost, speed, and nutrition. They prioritize making the customer "happy." 

           Mcdonald's finds ways to make customers more satisfied with fast service. The McDonald brothers applied a Factory-line assembly design to a commercial kitchen, to make a faster and more precise product. They cut the serving time down from 20 minutes to 30 seconds.  Ray Kroc who later took over McDonald's implemented having two separate windows for drive-thru (one to pay, one to get food). This created a faster flow through the drive-thru which decreased wait times. (46)

            Mcdonald's finds ways to make customers more satisfied by creating a clean environment. McDonald's has a focus on cleanliness - specifically a focus on clean bathrooms. McDonald's acknowledges that people will want to dine in clean and orderly environments and they recognize the negative impacts of having an unclean restaurant and/or bathroom. 

            Mcdonald's finds ways to make customers more satisfied with higher quality products. It has a strict regiment for safety and food quality standards. (45) There have been questions about chicken McNuggets, which McDonald's debunks through their video.

             Mcdonald's finds ways to make customer more satisfied with affordable prices. McDonald's found new ways to streamline the foodservice workplace and employ cheap labor. For example, McDonald's utilizes self-service kiosks, potatoes, beef, and chicken their higher buying power also reduces the price they charge customers. It has found different ways of cutting back costs by encouraging more independence from the consumer such as people serving themselves pop and throwing out their own trash.

                   An additional item that has driven McDonald's success is their relationship with suppliers. McDonald's Promises Loyalty in Business in Exchange for Innovation. They encourage their suppliers to develop and create new and innovative products and processes. They encourage the development of technology from their suppliers in exchange for loyalty in business. This was a way of how McDonald's reduced their costs. (23)

                    furthermore, Ray Kroc envisioned and implemented a successful franchise model for McDonald's. This franchise model was the first to develop a franchise at a large scale with consistent experiences whatever location they attended. (Attention to detail - Same set-up, process, and taste. It is said that "attention to detail was one reason for the company's extraordinary success." McDonald's is the largest Worldwide Franchised Food Service Organization.