Mcdonald’s: Serving Fast Food Essay

Ray Kroc opened the branch McDonalds restaurant in 1955. He offered a limited wag of exalted quality, moderately priced diet served fast in spotless surroundings. McDonalds QSC&V (Quality, Service, Cleanliness, and Value) was a hit. The chain expanded into all state in nation. By 1983, it had over 6000 restaurants in United States. In 1967, McDonalds opened its first restaurant bulgeside the United States, in Canada. By 1985 international sales represented near atomic number 53-fifth of McDonalds total r change surfaceue. Yet fast food had barely touched umpteen cultures.While 90% of Japanese in Tokyo had never wasteen McDonalds Hamburger, in Europe, McDonalds importanttained a very small percentage of restaurant sales scarce command a large share of fast food market. It took the company 14 years of training before it opened a restaurant in Moscow. But the preparation paid off. People acquit in line up to 2 hours for a Hamburger. After waiting for much(prenominal) a b road time they had to pay $14. 40 (at the official rate) for a Big Mac and French Fries. Despite the high prices, McDonalds restaurant in Moscow attracts more checkors on the average 27,000 daily the Lenin mausoleum (about 9000 people), which used to visit the place.The taste of American Fast Food is growing more rapidly in countries overseas than at home. McDonalds international sales substantiate been increasing by a large percentage every year. Every day more than 18 million people in over 40 countries eat at McDonalds. Its traditional menu has been surprisingly successful. People with diverse dining habits have adopted burgers and french fries wholeheartedly. Before McDonalds introduced the Japanese to French Fries, potatoes were used in Japan only to make starch. The Germans scene Hamburgers were people from the city of Hamburg. Now, McDonalds also serves chicken, sausages, and salads and sandwiches.The fast, family oriented service, the cleanliness and the value accounted for much of McDonalds success. McDonalds was one of the first restaurants in Europe to welcome families with children. Not only are children welcomed, but in many a(prenominal) restaurants they are also entertained with crayons and papers, a play land or may be even Ronald McDonalds who can speak twenty languages. McDonalds golden arches promise the same basic menu and QSC&V in every restaurant. Its products, handling and cooking procedures, and kitchen layout are standardized and strictly controlled.McDonalds revoked the first French franchise because the franchisee failed to meet its standards for fast service and cleanliness, even though their restaurants were highly profit satisfactory. This may have delayed its expansion in France. The restaurant is run by the local manager and crews. Owners and managers must appear the Hamburger University near Chicago to learn how to operate a McDonalds restaurant and maintain QSC&V. The main campus library and modern electronic class room (which include simultaneous translation system) are the begrudge of many universities.When McDonaldss opened in Moscow, a one page advertisement resulted in 30,000 inquiries about the job 4000 people were invited, and some 300 were hired. The pay is about 50 % higher than the average Soviet salary. McDonalds ensures consistent products by controlling every stage of distribution. Regional distribution centers purchase products and permeate them to individual restaurants. The centers volition buy from local suppliers if the suppliers meet the detailed specifications. McDonalds has had to make some concessions to usable products.For example, it is difficult to introduce the Idaho potato in Europe. McDonalds uses essentially the same competitive strategy in every farming Be first in the market, and establish your brand as rapidly as possible by advertising very heavily. New restaurants are opened with a bang. So many people attended the opening of the Tokyo restaurant that the pol ice closed the street vehicles. The strategy has helped McDonalds develop a strong share in the fast food market, even though its US competitors and new local competitors likely enter the market.The advertising campaigns are based on local themes and muse the different environments. In Japan, where burgers are snacks, McDonalds competes against confectionaries and new fast sushi restaurants. Many of the charitable causes McDonalds supports oversea have been recommended by the local restaurants. McDonalds have been willing to relinquish the most control to its far-off Eastern operations, where many restaurants are joint ventures with local entrepreneurs, owning 50% or more of the restaurant.European and southern American restaurants are generally company-operated or franchised (although there are many facilities- joint venture-in France). Like the U. S. Franchises, restaurants abroad are allowed to experiment with their menus. In Japan, Hamburgers are smaller because they are cons idered a snack. The Quarter Pounder did non make much sense to people on a metric system, so it is called a forked Burger. Some of the German restaurants serve beer some French restaurants serve wine. Some of the eastern restaurants offer oriental person noodles. But these new items must not disrupt existing operations.Despite success, McDonalds faces tough competitors such as Burger King, Wendys, and Kentucky Fried Chicken, and now also Pizza Hut. Fast food in reheat able containers is now also sold in super markets, delicatessens and convenience stores, and even gas stations. McDonalds has through with(p) very well, with a great percentage of profits coming now from international operations. Aiming to be the originations best quick service restaurant, McDonalds opened first store in Pakistan in September 1998. Since then they have opened seventeen new stores throughout Pakistan.Today millions of Pakistanis place their cartel in McDonalds everyday to provide them with food of a very high standard as well as good service. In the past five years, the response to McDonalds coming to Pakistan has been overwhelming. Today Lakson theme of Companies has taken over McDonalds Corporation, USA and a local partner making it a 100% owned and operated Pakistani company. McDonalds located in Pakistan are currently employing about 1,000 Pakistanis and each store is managed by Pakistani managers. They have also contributed in other ways thanfood service. McDonalds has investment of over Rs. 300crore in the country and payment of taxes and duties amounting to more than Rs. 100crore. McDonalds is operating, presently in 6 cities of Pakistan Karachi, Hyderabad, Lahore, Faisalabad, Rawalpindi and Islamabad, in future, very soon planning to expand in many cities in Pakistan. Instructions Read the contingency carefully (you may not understand it first time so read again and again) Its better to take out prints and highlight the important information Read and understand the question carefully. After understanding question, read the case again and find the important information which is relevant Your answer should not exceed 300 speech communication To count your words select the paragraph, then in tools menu select word count Irrelevant, bare(a) material and long answers (more than 300 words) will be awarded zero Copied material from any source will be graded zero Question What opportunities and threats did McDonalds face? How did it handle them?