Manguiran, Vangelyn CASE-STUDY

Name:Vangelyn A. Manguiran Course&Yr.
: BSBA MARKETING MANAGEMENT 4A

Subject&Schedule: PRICING STRATEGY Date:
MCDONALD’S CORPORATION CASE
Brothers Richard and Maurice McDonald’s opened up the first McDonald’s restaurant 75
years ago, in 1940. It is a BBQ joint in San Bernardino, California. 8 years later, they
switched to burgers, shakes, potato chips, and pie. They purchased several multi-
mixers for use in their establishment, when multi-mixer salesman Roy Kroc visited, he
was impressed by their success and efficiency. In 1955, Kroc joined the company as a
franchise agent and proceeded to purchase the chain from the McDonald’s brothers.
McDonald’s had its original headquarters in Oak Brook, Illinois, but moved its global
headquarters to Chicago in early 2018. It is the world’s largest restaurant chain by
revenue, serving over 69 million customers daily in over 100 countries across
approximately 36,900 outlets as of 2016. Although it is known for hamburgers, they
also sell cheeseburgers, chicken products, French fries, breakfast items, soft drinks,
milkshakes, wraps, and desserts. McDonald’s first drive-thru opened in 1975 in Sierra
Vista, Arizona. McDonald has been a well-known and valuable brand for over half a
century. The company’s mission and vision are striving to be the world’s best quick
service restaurant and formalizing their beliefs into “People Vision and People Promise.”
“Quality, Service, Cleanliness and Value (Q.S.C. and V) also became the company’s
motto. McDonald’s continued to have enormous growth during the 1960’s. In 1963
alone, McDonald’s sold their one billionth hamburgers, opened their 500th restaurant,
“Ronald McDonald” made his big debut, and McDonald’s net income exceeded $1
million. In 1966 McDonald’s was first listed on the New York Stock Exchange, and
in 1967 McDonald’s went global. The company kept expanding with the introduction of
the “Big Mac” and the opening of its 1,000th restaurant, which was where it all started-
in Des Plaines, Illinois.
McDonald's Corporation is the world's largest chain of fast-food restaurants, serving
nearly 47 million customers daily through more than 31,000 restaurants in 119
countries worldwide. McDonald’s sells various fast-food items and soft drinks including,
burgers, chicken, salads, fries, and ice cream. Many McDonald's restaurants have
included a playground for children and advertising geared toward children, and some
have been redesigned in a more 'natural' style, with a particular emphasis on comfort:
introducing lounge areas and fireplaces, and eliminating hard plastic chairs and tables.
Each McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation
itself. The corporations' revenues come from the rent, royalties and fees paid by the
franchisees, as well as sales in company-operated restaurants. McDonald's revenues
grew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth in
operating income to $3.9 billion. For McDonald’s, this includes all other fast-food
businesses. “McDonald’s” recognizes that it is up against not only other larger burger
and chicken chains but also independent owned fish and chips shops and eat-in or take-
out establishments.” Some of McDonald’s competitors include: Burger King, Wendy’s, In
and Out, Taco Bell, and Jack in the Box. As mentioned above, the fast-food industry is a
very dynamic and competitive industry, so it is important for the McDonald’s corporation
to develop strategies which will keep them ahead.
FACTS
McDonald's was originally a BBQ joint opened by Richard and Maurice

McDonald in 1940. In 1948, McDonald's switched its focus to burgers, shakes,
potato chips, and pie. Ray Kroc, a multi-mixer salesman, joined McDonald's as a
franchise agent in 1955 and eventually purchased the chain from the McDonald's
brothers. McDonald's is the world's largest restaurant chain by revenue, serving over
69 million customers daily in over 100 countries with approximately 36,900 outlets
(as of 2016). McDonald's first drive-thru opened in 1975 in Sierra Vista, Arizona.
McDonald's mission is to be the world's best quick-service restaurant, with a focus
on "People Vision and People Promise." The company's motto is "Quality, Service,
Cleanliness, and Value (Q.S.C. and V)." McDonald's saw significant growth in the
1960s, reaching milestones such as selling their one billionth hamburger and
opening their 500th restaurant. In 1966, McDonald's was listed on the New York
Stock Exchange, and in 1967, it expanded globally. McDonald's revenue comes from
rent, royalties, and fees paid by franchisees, as well as sales in company-operated
restaurants.
STATEMENT OF THE PROBLEM
Within the fast-paced and highly competitive fast-food market, McDonald's has
obstacles. The business must deal with concerns pertaining to shifting consumer
tastes, rivalry from different fast-food chains, and the requirement for ongoing
innovation in order to maintain its lead in the industry.
OBJECTIVES
The primary objective is to uphold and reinforce McDonald's position as the

leading quick-service restaurant worldwide. This entails staying up to date of current
market trends and introducing imaginative menu options that cater to the ever-
changing preferences of customers. Additionally, it is crucial to effectively compete with
rival fast-food chains such as Taco Bell, Wendy's, In-N-Out, Burger King, and Jack in
the Box. To ensure customer satisfaction, it is imperative that all goods and services
provided by McDonald's meet the established standards of quality, service, cleanliness,
and value, which are the pillars of the business.
ALTERNATIVE COURSES OF ACTION
1. To cater to changing preferences of customers, introduce a diverse range of menu

options, including healthier choices and flavors inspired by different cuisines.
2. To enhance the overall satisfaction of customers, utilize technology for efficient order
processing, delivery services, and engaging customer interactions.
3. To enhance the brand's image and differentiate itself from competitors, invest in
effective marketing strategies.
4. 4. To tackle the increasing environmental issues, integrate sustainable practices into

sourcing ingredients, packaging, and day-to-day operations.
RECOMMENDATIONS
Increase the selection to accommodate customers' shifting dietary needs,

including plant-based and healthier options. To improve convenience, embrace
digital technologies for ordering, delivery, and customer interaction. Adopt
environmentally friendly programs to address environmental issues and win over
customers who care about the environment. Create and implement global training
initiatives to guarantee uniformity in quality and service throughout all McDonald's
locations.
CONCLUSION
In conclusion, McDonald's, as a global leader in fast food, must adapt to changing

consumer needs, technology, and sustainability concerns. By focusing on innovation,
digital transformation, marketing, and sustainability, McDonald's can succeed in the
competitive market. They should prioritize improving the customer experience through
personalized and convenient services like mobile ordering and loyalty programs.
McDonald's should also be environmentally responsible by sourcing ingredients
responsibly, reducing packaging waste, and using energy-efficient practices. They
should also offer plant-based and healthier menu options to cater to different dietary
preferences. By embracing these strategies, McDonald's can maintain its position as a
leader in the fast-food industry and attract a wide range of customers.

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Name:Vangelyn A. Manguiran Course&Yr.

: BSBA MARKETING MANAGEMENT 4A

MCDONALD’S CORPORATION CASE

McDonald's was originally a BBQ joint opened by Richard and Maurice

STATEMENT OF THE PROBLEM

The primary objective is to uphold and reinforce McDonald's position as the

ALTERNATIVE COURSES OF ACTION

1. To cater to changing preferences of customers, introduce a diverse range of menu

4. 4. To tackle the increasing environmental issues, integrate sustainable practices into

Increase the selection to accommodate customers' shifting dietary needs,

In conclusion, McDonald's, as a global leader in fast food, must adapt to changing

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