McDonald’s and Its Critics: 1973–2009 is the most influential case study written about the McDonald which makes the readers aware of the reasons and strategies behind the success of the McDonald, even with the criticism McDonald faced throughout the history of its existence. This case study analyzes the strategic initiative taken by each CEO and assessment of these initiatives.
Ray Kroc, 1955–1973
Ray Kroc founded McDonald’s Corporation in 1955. He bought the rights from MacDonald’s brothers to open the franchises all across the country. Illinois was the first place to have McDonald. Ray Kroc adopted the ideas of simple, limited menu and easy steps of food. He gave the world with the most famous gold arch logo of the McDonald. …show more content…
He delegated the authority to employees to tackle the customers then and there. Another strategy adopted by him was the cost cutting. He was successful in reducing costs by restructuring the restaurants and by introducing the idea if Mini McDonald.
His strategic Initiative was extensive international expansion. During his tenure, McDonald expanded in all of the major countries including UK, Canada, Germany, Japan, Australia and France but with a tight control over the franchises. Quinlan mostly went for joint ventures with the big international organizations, but keeping the more control with the McDonald itself. Quinlan expanded McDonald to Russia and China during his period after a struggle of almost twenty years. In 1997, 85 percent of new restaurants of McDonald opened abroad and McDonald succeeds in replacing Coca Cola as the best known brand. The growing sales rate in foreign markets was way ahead than the sales rate in local markets.
This extensive international expansion strategy was successful, but it in the local markets, sales suffered a lot due to some wrong strategies. The first wrong step was introduction of various food items in the menu which didn’t get the success as previous items. Second loss to McDonald was due to rebel actions from franchise who were opposing openings of so many wrongly open new restaurants near the existing ones. The third worst impact of this initiative was the loss of market share to other brands. Despite of all these