Name & location of the company:-

McDonald's:-

Chicago, IL, United States of America

Name & location of other branches:-

https://craft.co/mcdonald-s/locations

1.Canada

Toronto :-1 McDonald'splace

2.Bulgaria

Sofia:-residential complex Druzhba 2, bul. „Prof. Tsvetan Lazarov

3.India

New Delhi:-25, Bazaar Lane, Bengali Market

4.Hong Kong

Hong Kong:-36/F, Dorset House, Taikoo Place, 979 King's Road

5.Austria

Brunn am Gebirge:-Campus 21, Liebermannstrasse A01601

6 .Indonesia

Jakarta:-REKSO Building 5th floor Jl. Bulevar Artha GAding kav. A / 1 Artha Gading Kelapa Gading
Business Center

7.Germany

München:-Drygalski-Allee 51

8.Italy

Assago:-Via del Bosco Rinnovato, 6

9.Finland

Helsinki:-Paciuksenkatu 29
10.Denmark

Frederiksberg:-Falkoner Allé 20

Brief History:-

https://www.thestreet.com/markets/history-of-mcdonalds-15128096

https://corporate.mcdonalds.com/corpmcd/our-company/who-we-are/our-history.html

Brothers Maurice and Richard McDonald started the first McDonald's (MCD) - Get McDonald's
Corporation (MCD) Report restaurant in 1948 by converting their drive-through barbecue restaurant
into a burger and milkshake joint. Located in San Bernardino, California, the restaurant was actually the
brothers' second venture into the food industry. Their first was a hot dog stand that the pair owned near
the Santa Anita track.

The original McDonald's focused on its burgers, fries and shakes, selling them for half the price and in
half the time of competing restaurants. It did this by changing the way that a hamburger shop operated.
Instead of relying on waiters and waitresses, the McDonald brothers installed a self-service counter.
Instead of cooking each meal to order, they prepared their burgers ahead of time and kept the food
warm under high-powered heat lamps.

Readers might recognize this as the basic design of the modern fast food restaurant, but at the time it
gave McDonald's an overwhelming edge against its traditional competitors.

This format eventually brought the McDonald brothers to the attention of kitchen appliance salesman
Ray Kroc who supplied the restaurant. Impressed by their business model, Kroc bought the rights to
begin franchising McDonald's restaurants nationwide, although at the time the brothers had already
licensed a small number of franchise restaurants in Arizona and California. In 1955 Kroc formed the
McDonald's Corporation and Kroc opened his first franchised restaurant in Des Plaines, Illinois.

While Maurice and Richard McDonald created the first restaurant and its food service business model,
arguably it is Kroc who founded McDonald's as the world now knows it. He took the individual
restaurant from its San Bernardino location and turned it mass-market. By 1961, Kroc had bought out
the founders entirely and ran the company himself.
In doing so, Kroc made himself the most successful traveling salesman to ever pack a suitcase.

one of the most impressive elements of McDonald's corporate history is how little modern history it has.
During its first decades, McDonald's worked to establish its business model and brand. Since that time it
has found an approach that works. The company's modern history is noteworthy specifically for its
relatively few items of note. McDonald's has continued its rapid growth for nearly 70 years and, while it
has gained and lost customers, new restaurants have opened at a steady pace.

To a degree that few other businesses can claim, the McDonald's approach can be described as "if it
ain't broke, don't fix it."

1937 -

The McDonald brothers start their hot dog stand, getting into the food service business as a team.

1940

Dick and Mac McDonald open McDonald's Bar-B-Q restaurant on Fourteenth and E streets in San
Bernardino, California. It is a typical drive-in featuring a large menu and car hop service.

1948

The McDonald brothers shut down their restaurant for three months for alterations. In December it
reopens as a self-service drive-in restaurant. The menu is reduced to nine items: hamburger,
cheeseburger, soft drinks, milk, coffee, potato chips and a slice of pie. The staple of the menu is the 15
cent hamburger.

1949

French Fries replace potato chips and debut Triple Thick Milkshakes on the McDonald's menu.

1954

Multimixer salesman Ray Kroc visits McDonald's in San Bernardino intending to sell the brothers more
Multimixers. The 52 year old Kroc is fascinated by the operation. He learns from the brothers that they
are looking for a nationwide franchising agent. He has an epiphany and is determined that his future
would be in hamburgers.

1955

Kroc opens his first McDonald's in Des Plaines, Illinois on April 15. The attention getting red and white
tiled building with the Golden Arches was designed by architect Stanley Meston in 1953. First day sales
are $366.12.

1956
Fred Turner, future McDonald's Chairman is hired to work as a counter man for the Des Plaines
McDonald's. He would soon become the head of McDonald's Operations defining the quality, service
and cleanliness that continue to this day.

1961

Hamburger University opens in the basement of the Elk Grove Village, Illinois, McDonald's restaurant.
Graduates receive Bachelor of Hamburgerology degrees.

1965

The Filet-O-Fish sandwich was the first item added to the national menu. Created by Lou Groen,
McDonald's Cincinnati franchisee to help build volume in the predominately Roman Catholic community
in which his store was located.

1968

The Big Mac, developed by Owner/Operator Jim Delligatti of Pittsburgh, is added to the national menu.

1973

The Quarter Pounder and the Quarter Pounder with Cheese are added to the menu.

1974

The first Ronald McDonald House opens in Philadelphia, Pennsylvania. In 1973, Fred Hill, a football
player with the Philadelphia Eagles, had the need for such a facility at Children's Hospital in Philadelphia,
where his child was being treated for leukemia. Hill’s dilemma led to the first Ronald McDonald House.

1975

The Egg McMuffin, created by Owner/Operator Herb Peterson of Santa Barbara, California is added to
the national menu.

1983

Chicken McNuggets are introduced into all domestic U.S. restaurants.

1984

Ray Kroc, Founder and Senior Chairman of the Board of McDonald's Corporation, dies on January 14.

1990

On January 31, the first McDonald’s restaurant in Moscow opens. Located in Pushkin Square, more than
30,000 customers were served on opening day.

1993

The world’s first McCafé opens in Melbourne, Victoria Australia.

1995
McFlurry Desserts, invented by Ron McLellan, O/O Canada are added to McDonald’s Canada menu.

2002

McDonald’s published its first ever Social Responsibility Report on April 15, 2002.

2003

McDonald’s first global ad campaign, “i’m lovin’ it” is launched in Munich, Germany on September 2.

2015

McDonald’s USA launched All Day Breakfast.

2017

Global McDelivery Day is celebrated on July 26 to support the global launch of McDelivery with
UberEATS.

2020

McDonald’s opens its first net zero-designed restaurant at Walt Disney World Resort, which creates
enough renewable energy on-site to cover 100% of its energy needs on a net annual basis.

Name of founder and promoter of McDonald's:-

Founders:-

McDonald's: Richard McDonald,

Maurice McDonald

McDonald's Corporation: Ray Kroc

Promoters:-

Two promoters of the company—Lalita Devi Jatia & Usha Devi Jatia

another promoter—Amit Jatia

 Vision statement:-

https://visionarybusinessperson.com/mcdonalds-mission-statement/

McDonald’s vision statement “to move with velocity to drive profitable growth and become an even
better McDonald’s serving more customers delicious food each day around the world.” sheds light on
the company’s most recent growth plan named “Velocity Growth Plan”. The pillars of this growth
strategy are retained, regain and convert.

prior to the introduction of the “Velocity Growth plan” in 2017, McDonald’s vision statement was as
follows “Our overall vision is for McDonald’s to become a modern, progressive burger company
delivering a contemporary customer experience.” McDonald’s changing its vision statement to align
itself with the contemporary growth plan goes to demonstrate the company’s will to adapt to the
changing circumstances.

A Comparison between the old and the new vision statement explains that McDonald’s had already
achieved its old vision and was looking forward to expanding and improving the already established
prime McDonald’s experience.

McDonald’s current vision statement emphasizes on the following components:

Driving profitable growth by moving with velocity

Becoming an even better McDonald’s

Serving more customers delicious food every day around the world

1:-The first component of the mission statement of McDonald’s talks about the company’s new growth
plan:-

The Velocity Growth Plan is aimed at making McDonald’s more profitable by retaining the customers
McDonald’s already has acquired, regaining the customers who have lessened their visits to McDonald’s
and finally converting the casual and irregular customers to regular customers. This plan will bring in
profit and ensure growth.

2:-Becoming an even better McDonald’s is the second component of the vision statement.:-

This segment implies that McDonald’s is already an amazing place and the corporation wants to
improve the tiny details to make it even more customer-friendly.

3:-The final component of McDonald’s vision statement is the company’s goal of serving more
customers:-

This component expresses the company’s goal of expanding. All three components of the vision
statement are steps of implementing the Velocity Growth Plan.

Mission statement and value statement

Mission statement:-

https://visionarybusinessperson.com/mcdonalds-mission-statement/

McDonald’s mission statement is “To be our customers’ favorite place and way to eat and drink.” The
missions statement conveys the following messages:

Becoming its customers’ favorite place

Becoming its customers’ favorite way to eat and drink

McDonald’s corporate mission statement reflects the company’s customer-centricity. The mission
statement shares the company’s goal of becoming its customers’ favorite. The use of the words “our
customers” shows that McDonald’s policies and management focuses on its target customer base,
which is consisted primarily of young children, parents with children, and early teens.

1.McDonald’s mission is to become the favorite place of its customers. The fast-food franchise wants to
create a pleasant experience for its customers, not only providing delicious food, it wants to provide a
well-rounded experience in the store. Becoming the customers’ favorite place includes having an
ambient environment, structural and design elements to elevate customer experience.

2.The second component of the McDonald’s mission statement is becoming the favorite way to eat and
drink for the customers. It shows that McDonald’s aims to be more than just another fast-food chain, its
ambition is to stand out in the crowd with its unique style. It wants to build such a connection with the
customers that eating and drinking in McDonald’s become a distinct way of consuming.

3.Becoming the customers’ favorite way to eat and drink will ensure a strong customer engagement and
better brand image for McDonald’s.

Value statement:-

https://mission-statement.com/mcdonalds/

McDonald’s core values comprise “we place the customer experience at the core of all we do, we are
committed to our people, we believe in the McDonald’s system, we operate our business ethically, we
give back to our communities, we grow our business profitably, and we strive continually to improve.”
The core values create a perfect growth culture for the company.

Acknowledging the importance of the needs and preferences of the customers is highly valued at
McDonald’s. The company also encourages respect for people, the brand of the company and a call to
always operate in a justified manner. By weaving the needs of the communities with those of the
business, McDonald’s has created an environment where all partners thrive.
 Organisational Structure /Hierarchy:-

http://panmore.com/mcdonalds-organizational-culture-
analysis#:~:text=McDonald's%20organizational%20culture%20emphasizes%20human,People%2Dcentric
ity

McDonald’s Organizational Structure Analysis McDonald’s organizational structure was reformed in July
1, 2015 to improve the company’s handling of its global operation. A firm’s organizational structure
defines the system through which organizational components coordinate to achieve business objectives.
McDonald’s organizational structure facilitates McDonald’s used performance as basis for the new
divisions in its organizational structure: (a) U.S., (b) International Lead Markets, (c) High Growth
Markets, and (d) Foundational Markets and Corporate. The U.S. accounts for more than 40% of
McDonald’s revenues, and the lead markets for 40%. The high-growth markets account for 10% of
revenues.

McDonald’s organizational culture supports the company’s industry positioning goals. As the biggest
player in the global fast food restaurant market, McDonald’s uses its organizational culture to attract
customers and qualified employees. A firm’s organizational culture defines the traditions, habits and
values that influence workers’ behaviors. To ensure business efficiency in production and service,
McDonald’s organizational culture encourages learning. In a way, the continuing evolution of the
organization reflects the firm’s effectiveness in applying its corporate culture to achieve the desired
levels of human resource capabilities. This condition highlights the significance of organizational culture
as a success factor in McDonald’s international business.

Features of McDonald’s Organizational Culture McDonald’s:-

organizational culture emphasizes human resource development and efficiency. It supports business
growth and success in the international fast food restaurant market.This organizational culture has the
following characteristics, arranged according to McDonald’s prioritization:

1. People-centricity

2. Individual learning
3. Organizational learning

4. Diversity and inclusion

People-Centricity :-

McDonald’s organizational culture prioritizes employees’ needs and development. The company’s Core
Values and Standards of Business Conduct emphasize the importance of supporting people. This is
understandable, considering that McDonald’s is a service business. To ensure support for people, the
company’s organizational culture encourages employees to engage management to help improve
processes and procedures.

Individual Learning:-

McDonald’s organizational culture highlights the importance of lifelong learning. The belief is that
individual learning promotes productivity, quality, and business effectiveness. To facilitate individual
learning, the company offers training and development opportunities through Hamburger University,
internships, global mobility, and leadership development programs. These efforts ensure that
McDonald’s maintains an organizational culture that motivates employees to keep learning.
Organizational Learning McDonald’s organizational culture also supports organizational learning. The
firm aims to use individual learning to develop organizational knowledge to push the business forward
to new heights of performance. McDonald’s applies this feature of its organizational culture through
policies, programs and meetings that encourage employee feedback and knowledge sharing.

Diversity and Inclusion :-

McDonald’s official human resource management policy states that diversity and inclusion are key
factors in the firm’s organizational culture. McDonald’s recognizes the importance of diversity and
inclusion in optimizing HR capabilities to deal with an increasingly diverse market. To ensure support for
diversity and inclusion, McDonald’s organizational culture encourages employees, suppliers, franchisees,
and customers to give their feedback and engage in meaningful conversations to improve the business.

McDonald’s Organizational Culture Advantages & Disadvantages:-

McDonald’s organizational culture has the advantage of enabling the company to improve quality of
service through people-centricity, individual learning, and organizational learning. However, excellence
and high quality are considerations not effectively covered in the corporate culture. While McDonald’s
highlights learning and support for people in the organizational culture, there is no emphasis on
excellence in individual performance. Thus, a possible improvement is for McDonald’s to emphasize
excellence and high quality output in its organizational culture.
 Controlling system:-

https://kingoffastfood.wordpress.com/2013/09/05/15/

Control is “A regulatory process of establishing standards to achieve organization goals, comparing

actual performance against the standards and taking corrective action when necessary” .

As one of the dominant chain fast-food company, McDonald’s has enormous number of employees in
the entire chain retailers. Controlling system is a key factor of its sustainable business success. In order
to control the huge chain company, a mixture of different control methods is necessary for an effective
and efficient management. In McDonald’s case, bureaucratic control as the major method, mixing with
normative control, makes the most workable and effective controlling system at McDonald’s.

Bureaucratic control is known as a top-to-bottom method of control, where managers attempt to affect
workers’ behavior through punishments and bonus regarding their working performance. Since
McDonald is a global fast food chain retailer, top-to-bottom control seems to work best for its own
good. Hierarchical system makes sure all employees are allocated to be in a specific position of the fast
food production chain, with strict company rules and procedures. According to Robert, who has a full-
time job at McDonald’s, part-time employees have been given no hours as punishment of perceived
transgressions.

In McDonald’s management system, the top management level, CEOS, stockowners, are board of
directors. And down there are various departments, which are in charge of human resource, audit and
accounting, etc. On the other end of McDonald’s management system, there are operation managers
dealing with daily tasks and are in charge of the service crew, who are the bottom employees standing
in the frontier of food production and delivery. This system allows the top managers to pass the
objectives and company values down by different levels. It also ensures employees’ behaviors are
monitored by managers in the higher level. The use of bureaucratic control in McDonald’s avoids
inefficiency and ineffectiveness throughout the entire system that consists of enormous number of
employees.

McDonald’s bureaucratic control is also shown in scientific management system. This can be easily
spotted in every single outlet of this giant chain fast food retail in any location over the world.
Sociologist George Ritzer brought out the term of ‘McDonaldization’, which referred to ‘a
reconceptualization of rationalization, or moving from traditional to rational modes of thought, and
scientific management’.
Scientific management involves the shift of major use of human labor to machinery. Technology
replaces most of the labor work. At McDonald, bottom employees are not even required to know how
to cook or bake. They only have to be trained to follow the exact procedures of how to operating all the
machines used to produce McDonald’s fast food. Hence, the major decisions, such as what kind of new
products is coming out, does not relate to the bottom employees at all. All they have to do is to follow
the instructions to behave in work. Therefore, it is clear that bureaucratic control is applied at
McDonald’s.

However, there are some drawbacks of bureaucratic control. Bureaucratic control can be very
demoralizing since employees at a lower level have no right to contribute their ideas in the organization.
All they have to do and should do is just to obey the orders. This is probably one of the reasons that
McDonald has also applied normative control in certain area. Normative control is known as the
‘regulation of workers’ behavior and decisions through widely shared organizational values and beliefs’.
All employees at McDonald’s are chosen and trained through certain programs, filling with company
mission and values. They are expected to smile whenever serving a customer despite of little
interaction.

Furthermore, McDonald even has its own university – Hamburger University. Together with some
leadership program and internships, McDonald aims to regulate the employees’ behaviors and fill them
with company’s core value regardless what level of management system they are in. This seems like the
trait of normative control that involves controlling workers through shared behaviors and values.

Normative control lets McDonald’s employees to form a good business image as an entity. Every single
employee carries McDonald’s mission and value, and they are always ready to serve the customers in
the most efficient way with automatic response under bureaucratic, where they only listen to the orders
from managers and follow steps of using a machinery to produce the freshly made fast food to the
customers with McDonald’s smile.

SWOT analysis of McDonald's:-

https://www.edrawmax.com/article/mcdonalds-swot-analysis.html

McDonald's SWOT analysis can show the strengths and weaknesses of the company. The McDonald
SWOT Analysis will also discuss how the company uses its strengths as an opportunity to retain its
position as the most prominent brand while cushioning the threats with strategic planning.

Strength:
For any company, the very first step to success is assessing their performance. Considering the vital
areas that have made their company have a good position in the market is crucial to ensure growth.
McDonald's, as one of the most popular fast food joints, has several strengths that have helped them in
becoming one of the fastest-growing food chains:

McDonald's is one of the most valuable brands in the entire world. Their brand value is very high, and
they also have one of the most recognized logos. They are also taking the help of revolutionary
technology to improve their products and service.

McDonald's is also a multi-billion real estate empire, and hence they have a strong financial backup.

Often the customers mention McDonald's French fries as one of the tastiest fries in the fast-food world.
Similarly, their other fast foods are comparatively better in taste than most other food joints. It attracts
many customers.

McDonald's acquisition of 'Dynamic Yield' has ensured their progress towards more personalized
marketing and customizations.

Weakness:

Besides its strengths, it is also crucial for a company to know its weakness. Once they identify the
reasons affecting their growth, they can take the necessary steps to negate their impact. Though
McDonald's is one of the strongest brands, it has some weaknesses that tolls upon its performance –

The Franchise business model is a significant weakness of this company. It may show a greater impact
with the passing time. The interruption in supply-chain business models can also affect the growth of
the company.

Though the company has more than 200 thousand employees, they fail to provide employee
satisfaction. It may affect their efficiency and hence end up further affecting the service of the food
chain.
McDonald's breakfast menu has lost its charm over the years. The lack of variation and innovation can
be the reason behind that.

The continuous negative publicity has also impacted their growth to some extent. Once there is negative
publicity, the company should try to come out clean after that.

Opportunities:

The company's performance assessment shows how they can use the available opportunities in their
favor. The company can concentrate on the ones that align with their strengths. As a top-rated brand,
McDonald's has several strengths which allow them to use many of the opportunities to ensure their
growth –

McDonald's has launched its "$1, $2, $3" menu and "2 for $5 Mix and match deal" as it attracts many
customers because of its affordability. The customers who continuously prefer regular meals can choose
these menus.

McDonald's is present in selective locations in Asian countries. They can look for further expansion by
having more restaurants in Asian countries by launching menus and items based on the locales'
geographic conditions and taste-preference.

McDonald's can start working to rebuild its brand image. The company needs to look for some powerful
ways that can negate the effects of negative publicity, and at the same time, they can try to offer
employee satisfaction.

McDonald's has initiated a partnership with UberEats. Many people who cannot visit the location can
order the food from home and get a good service offered by UberEats.

Threats:

The countries' economic conditions are changing with time, impacting the market scenario. If a company
wants to aim for an uninterrupted expansion, then they must look for the ways they can cushion the
threats –
McDonald's risky investments in technological initiatives may severely affect their growth in the future.

The competitive market can be a genuine threat to the company. The other reputed brands like Burger-
King can be significant threats to McDonald's.

McDonald's is often considered an old-school, and this can have a substantial impact on their business.
When competitors try to adapt to changing food habits, the company can lag because of not pushing for
changes. They are also facing cultural threats while operating in different countries.

McDonald's is facing immense pressure to improve its practice to minimize waste production. It creates
a negative impression of the company.

Other specific details of McDonald’s:-

McDonald is the world’s leading global foodservice retailer with over 38,000 locations in
over 100 countries. Approximately 93% Of McDonald’s restaurants worldwide are owned
and operated by independent local business owners. The status of franchising in the markets
where we currently do business is described on the specific pages identified by market
below.

According to the McDonald's Corporation website as of January 2020,

McDonald's has locations in over 100 countries. More than 38,000 restaurants
around the world serve 69 million people every day.