Mc Donald`s Corporation

McDonald's Corporation is the world's leading food service organization. The
corporation started out as a small drive-through in 1948 by two brothers, Dick
and Mac McDonald. Raymond Albert Kroc, a salesman, saw a great opportunity in
this market and advised Dick and Mac to expand their operation and open new
restaurants. In 1961 Kroc bought out the McDonald brothers. By 1967 McDonalds
expanded its operations to countries outside the U.S.A. This unyielding
expansion led the Corporation to open 23,000 McDonald's restaurants in 110
countries in 1994, producing $3.4 bn in annual revenues. In addition, McDonald's
opens a new restaurant every three hours. Also, McDonald's has twice the market
share of its closest U.S. competitor, Burger King, representing 7% of total U.S.
eating-out sales. Similarly, McDonald's serves about 1% of the world's
population on any given day through its 23,000 restaurants internationally.
"Big Mac", the world's most sold hamburger was developed by Jim

Delligutti in 1967 to feed construction workers. 'Big Mac' is the biggest
attraction and backbone of the corporation. Moreover, McDonald's maintains its
competitive advantage by constantly creating new items to add onto its menu.

This shows us that McDonald's practices an analyzer type of strategy,
introducing new items and defending its existing ones. McDONALD'S MISSION AND

VISION: "We serve people with good quality food, fast and at low
cost." McDonald's vision is to dominate the global food-service industry.

Global dominance means setting the performance standard for customer
satisfaction and increases market share and profitability through successfully
implementing our convenience, value and execution strategies. THESIS STATEMENT:

To have a clear picture of McDonald's corporation we need to look at its Task

Environment, which includes its: .Customers .Competitors .Strategic Allies
.Suppliers .Regulators We shall also explore McDonald's Workforce Diversity and
its Total Quality Management. CUSTOMERS: Customers are those who pay money to
acquire an organization's goods or services. For many years McDonald's mostly
targeted the young people, however this has changed in this decade; McDonald's
has turned towards a more general market. By doing this McDonald's concentrates
on the family, targeting a diverse market which includes consumers ranging from
children to elderly people, using products such as the "happy Meal"
for children and "Egg McMuffin" for the elderly. McDonald's also
realized the changing world we live in and the need for healthier food, since
there is an ever changing demographic group, who demand fast, top quality food
that is low in calories. McDonald's responded to this opportunity and introduced
a new and innovative product. This new product was a regular hamburger that
tasted like the real thing but was made of plant material like Soya beans. This
same product also targets another demographic group, vegetarians. McDonald's
mostly uses psychographic segmentation targeting the working and middle classes.

These are the people that are more susceptible to enter a fast food restaurant,
since these are the people that lead a fast moving life and thus require a fast
meal. In brief McDonald's customers are of all classes, but largely working and
middle classes, and people of all ages. COMPETITORS: A competitor is an
organization that competes with other organizations for resources. In our
findings, McDonald's has two types of competitors in the Lebanese market:
..Indirect ..Direct Indirect Competitors: Indirect refers to firms producing one
or two products that compete with McDonald's products and therefore be a threat
to the company. We have identified four indirect competitors: Henry J. Beans,

T.G.I. Friday, K. F. C. and Popeye's. Henry J. Beans offers hamburgers and fries
on its menu, therefore competing with McDonalds for customers of these products.

However, Henry J. Beans also known as Hank's is a more of a bar restaurant and
therefore a hang out place, as a result charging more money for its products.

Hank's targets middle to upper class customers, so where most of these customers
overlap are in the middle class. T.G.I Friday is another indirect competitor
reflecting the same characteristics as Henry J. Beans. Other indirect
competitors are K. F. C. and Popeye's, both competing for the chicken nuggets
and fries customers. In brief, Hank's and T.G.I. Friday's competes with

McDonald's by offering hamburgers and fries, whereas K. F. C. and Popeye's
compete with McDonald's by offering chicken nuggets and fries. Direct

Competitors: Direct competitors refers to firms producing the same products or
services as McDonald's does. Here we found that McDonald's has three direct
competitors: Burger King, Wendy's and Hardee's. McDonald's closest rival is

Burger King, which operates a total of 9644 restaurants in 110 countries.

Wendy's is McDonald's second largest rival, which is also in the fast food
business, where Wendy's operates 6776 restaurants in 32 countries. Hardee's,

McDonald's third largest rival is also