Since we have studied MNEs, today we are going to present you one of the biggest. A « restaurant » (if we can call that a restaurant...) that you all know. When youhear the word « fast food » what is the first thing that you think of?
Mc Donald's of course!
The company was created in 1954 by Ray Kroc. He was inspired by a small but successful restaurant run bybrothers Dick and Mac McDonald, and was stunned by the effectiveness of their operation. They produced a limited menu, concentrating on just a few items—burgers, fries and beverage.
Starting withthis simple idea, who would imagine that 56 years later Mc Donald's will be the world's biggest chain of fast food restaurant?
I. The McDonald's empire
First, I'll give you some figures that provethat McDonald's has become a real empire
* 32000 restaurants through the world
* In 117 countries
* 75% of them are franchised restaurants
* 1.7 million worldwide employees ( forexample in the US among 8 employees at least one have worked in McDonald’s firm once in his lifetime)
* More than 58 million customers each day
* 4.5 millions of benefits in 2009
A McDonald'srestaurant is operated by a franchise, a subsidiary, or the company itself.
The firm's incomes come from the rent, royalties and fees paid by the franchisees and also from the sales in company-operatedrestaurants.
The success of the company is based on a simple concept. McDonald’s has a strategy of adaptation in countries where they were established. Indeed, this multinational adapt itself to thelocal culture.
On one side this deviation is made to respect regional food taboos (such as the religious prohibition of beef consumption in India), on the other side it made to make available foodswith which the regional market is more familiar (such as the sale of McRice in Indonesia). With its small prices, the chain is affordable for everyone and that's its strength especially in time of...