CONTENTS

1. McDonalds History 2. McDonalds SWOT Analysis 3. McDonalds Product and Target Market 4. Market Positioning

McDonalds History

The first McDonalds was built in 1940 by the McDonalds brothers (Dick and Mac)

Ray Kroc became the first franchisee appointed by Mac and Dick McDonald in San Bernardino , California.

In 1955 , Ray Kroc opened his first restaurant in Des Plaines , Illinois (near Chicago) , and the McDonald's Corporation was created . It is now a museum containing McDonald's memorabilia and artifacts .

Ronald McDonald
The first Ronald McDonald maskot The new Ronald McDonald maskot

McDonalds in Malaysia
McDonalds first made its way to our shores in December 1980 when McDonalds Corporation, USA gave GOLDEN ARCHES RESTAURANTS SDN BHD the license to operate McDonalds restaurants in Malaysia. We in Malaysia got our first taste of McDonalds when McDonalds Malaysia opened its first restaurant at Jalan Bukit Bintang, Kuala Lumpur on 29 April 1982. To date, McDonalds Malaysia has more than 200 restaurants located nationwide and is currently expanding at about 20-25 restaurants annually. McDonalds has created many jobs opportunities in Malaysia.McDonalds Malaysia employs almost 10,000 local people with 120 support staff at its headquarters managing the day-to-day operations of the McDonalds business.There is also a regional office in Penang and Johor Bahru.

In 1961 , Hamburger University opened in Elk Grove , near Chicago .

In 1967 , the first restaurants outside of the USA opened in Canada and Puerto Rico . In 1972 , a new McDonald's restaurant opening every day . In 1974 , the company decided to target children with TV ads . In 1980 , 1000th international restaurant opened . In 1983 , the McDonald's Corporation became sole owners of McDonald's in the UK . The Company is named McDonald's Hamburgers Limited . In 1986 , the first World Day of Action Against McDonald's was held on 16th October (UN 'World Food Day') . In 1989 , the UK Manchester regional training centre was opened .

In 1992 , McDonald's opened in a railway station at Liverpool Street , London . The first restaurant in European hospital opened at Guy's Hospital , London . In 1994 , the total of restaurants opened over 15000 in 79 countries on 6 continents . The company threatens legal action against a topless restaurant in Australia called "McTits . In 1996 , McDonald's opened the world's first fast-food ski-through in the Lindvallen resort (Sweden) . In 1996 , McDonald's opened stores in India and Belarus , its 100th country .

SWOT ANALYSIS MCDONALDS

STRENGTHS
Ranks very high on the Fortune Magazines food service companies that are most admired list. One of the brand recognition in the world, the golden arches and Ronald McDonald. Global operation all over the world. Cultural diversity in the foods that are provided based on location of the restaurant. Excellent locations in theme parks, airports, Wal-Mart stores, and along most well traveled roads. Efficient operating guidelines in the assembly line fashion. Food safety guidelines are strictly adhered to.

WEAKNESSES
Failing pizza market thus limiting their ability to complete with fast food pizza providers. Training costs concentration on providing organic foods. Very minimal concentration on operating profits making impacts on the investors. Not much variation in seasonal products that are offered. Quality concerns due to franchised operations. Focus on burgers and grease fried foods and not on healthier options for their customers.

OPPURTUNITIES
Opening more joint ventures with several different retailers. Being more responsive to the social changes to healthier options. Advertising the cap abilities of Wifi internet services in the environment. Expansions of business into newly developed parts in the world. Open product up to allergen free options such are peanut free and gluten free foods. Continue to venture into more enticing beverage choices.

THREATS
Their marketing strategies entice people from small children all the way to adults and the criticism that they take because of it. Lawsuits for offering unhealthy foods that have alleged additives. Contamination risks that include the threat of e-coli containments. The vast amount of eat in fast food restaurant are open are competition. Social changes to a more balanced meal including fruits and vegetables in servings of five per day. focus on healthier dieting by consumers. Down turn in economy affecting the ability to eat out as much.

In order to satisfy the palate of the local population of a country, McDonalds offers regionalized products in its menu. The result is McDonalds products which is not available in other countries is only exclusive to a particular country.For example, in this slide show, we will discuss products in three different countries in Asia, that is Malaysia, India and China.

McDonalds At Malaysia
All McDonalds products at Malaysia are certified Halal. McDonalds products at Malaysia are free from pork items since majority of the population here consists of Muslims. McDonalds Malaysia introduces special products during a particular season.For example, 1. Prosperity burger during Chinese New Year 2. GCB burger 3. Nasi Ayam McD and many more Even, McDonalds Malaysia has special offers during the Ramadhan month for sahur and breaking fast. Besides that, menus at Malaysia are also tailored following the culture of the society here.For instance, Malaysian has a culture of having rice as their main source of food, therefore, McDonalds Malaysia introduces Bubur Ayam McD in their menus list. On top of that, McDonalds Malaysia has a very catchy and easy to remember McDelivery service number, that is 1300-13-1300.

McDonalds At China
In China, the Chicken McNuggets come with the traditional BBQ, Sweet & Sour, and Honey Mustard sauces, but there is also a chili garlic sauce which is very popular in China. They also include crispy chicken wings called McWings on their menu, which comes in 2, 4, and 6 pieces. There is also a seasonal Chinese New Year meal available, including Grilled Chicken Burger, curly fries, with a horoscope of the twelve zodiac animals of Chinese astrology and traditional "red" packets, or gift bags, for monetary gift giving as good luck. What is also interesting to note is that in china, McDonald's offers a delivery service in most major cities- the delivery number within China is 4008 517 517, as the Chinese pronunciation of 517 is wu yao qi which sounds similar to wo yao chi which means "I want to eat". Deliveries are taken 24 hours a day via a call centre to anywhere that is within 5 km of a restaurant (3 km in several cities). Deliveries are usually made by electrically powered scooters, although in several cities where motorcycle bans are in place, a conventional courier bicycle is used. Food is normally carried in a large insulated backpack.

McDonalds At India
1. 2. 3. 4. India is the only country that offers vegetarian menu. It dropped ham, beef and mutton burgers from the menu. Even the sauces and cheese used in India are100% vegetarian. Some of McDonalds menus offered at India includes : Vegetable McCurry Pan Chicken McCurry Pan Maharaja Mac which is the Indian version of Big Mac McVeggie which is a vegetable burger and many more Pork and Ham meats were against the religious beliefs of the Hindus and Muslims in India,who made up most of the Indian culture fabric.As a result, McDonalds for the first time in their history, decided to remove away with the pork and beef items from their menu. In 2006, McDonalds even dropped mutton items from their menu.McDonalds also re-engineered their operations to ensure that the cheese and cold sauces used are absolutely 100% vegetarian. Also, In India, meat and vegetarian meals are prepared in separate areas of the restaurant because of religious laws about preparation of food for vegetarians and meat-eaters.

 McDonalds has successfully used a differentiated market segmentation strategy by targeting the family unit and particularly children with their Family Breakfast Box, Happy Meals and many more.McDonalds offers lower prices compared to some fast food restaurants, thus gaining the patronage of larger-size families. Next, the location of most McDonalds restaurants is located in one of the most busiet cities in Malaysia.For example, the first McDonald outlet in Malaysia is opened at Jalan Bukit Bintang, Kuala Lumpur.Most of the people at Kuala Lumpur are profesionals who are very commited and busy with their daily routine who are always looking for a faster alternative in making decisions to suit their fast living life style.This includes in making decision of what food are they going to eat.People living in busy cities prefer to buy food that are fast and efficient.Therefore, McDonalds also target busy working communities to buy their product by offering McDelivery service, 1300-13-1300. In short, McDonalds target all consumers of demography particularly families and children.

 The best way to describe McDonalds market position is to illustrate all of the market positions they could have gone after, but decided not to : 1. McDonalds could have been a fast food restaurant with better quality food than all of their competitors, but at slightly higher prices and that would take slightly longer to prepare 2. They also could have been the fast food restaurant with the widest menu offering the most choise to their customers 3. Or, they could have targeted the adult market instead of focusing their marketing efforts on children and families But they did none of those things.They looked at the market and decided that the best opportunity for their business was in attracting the business of families with children, and so they took up that position in the market. Bear in mind that McDonalds did a lot of research on the market and identified the most profitable market for their products, then refined their marketing and operations to deliver on what their chosen market would want. Clearly, McDonalds decision was a success for them.However, even though McDonalds dominates the fast food category, there are plenty of alternative market positions available to other businesses in that market.