Introduction
The McDonald chain started with Dick and Mac McDonald, the McDonald brothers, in San Bernardino, California. They had a limited menu, and focused on just a few items, burgers, fries and beverages. The process was very effective, and the limited menu allowed them to provide quick service with quality. Later, Ray Kroc came by and founded the McDonald’s System Inc, then few years gone by, he bought the exclusive rights to the McDonald’s name. After years of development, McDonald have grown to become the largest fast-food chain across the globe. This is a widely known company and have been providing service for over decades to customers in many countries, partly because they use TV, radio, print media and online media for its advertisements.
We’re dedicated to being a great place for our people to work; to being a strong, positive presence in your community; and to delivering the quality, service, cleanliness and value our customers have come to expect from the Golden Arches – a symbol that’s trusted around the world.” From there mission statement we can see that their purpose is to serve the broader community, to provide a place for the masses to dine and enjoy their time. Therefor, their target market is the lower to middle class people, and they focus on making their product affordable for all
McDonald currently rank number one in the industry, has the highest market share, and its worldwide revenue was about 24.62 billion dollars in 2017, with a brand value of about 97.7 billion dollars. There are many opportunities associated with this industry, but there are also many challenges they face industry wide. The fast food is the one of the largest food market, with advertising budgets up to billions, and more than 80% are owned by individual franchise. However, the challenges this industry faces include their negative publicity, because many people think fast food are unhealthy. The products provided tends to have low differentiation, McDonald similar to many others, mainly consist of burgers, fries, and beverages. Moreover, this industry faces a similar problem of high employee turnover, and constantly need to hire and train new employees. Despite, the challenges, McDonald still maintains the largest market share in the fast food