McDonald's represents a turnover of 22 billion Euros, and employs more than 450,000 people worldwide. Founded in 1940, this company has become the symbol of fast food. The brand has over 31 000 restaurants and franchises in 121 countries
For years, McDonald's has chosen a business model based on the standardization of its production. The term fast food perfectly matched this channel, whose strategy was focused primarily on the cost of its products and its production line. McDonald's had the sole objective of serving customers who visit the chain, had have them spend the remaining few minutes to eat a burger at their corner table. McDonald's had no ambition to be a place that gives the experience of a traditional restaurant, but rather a place of passage where one can eat fast and cheap.
This business model was that of minimizing production cost, and it was a success as long as customers did not desire anything else. However, in the mid-2000s, McDonald's was in crisis. In 1999 in the anti-globalization leader of France Jose Bove dismantled the Millau McDonald's branch in an act of protest which was widely publicized. At the same time, the best-selling book 'Fast Food Nation' and the documentary 'Super Size Me' pointed at the leading fast food brands, making them responsible for problems of youth obesity, and denouncing the standardization of tastes.
Overwhelmed by all the evils, McDonald's had to react to check this growth which had so far been unchecked for 30 years. This reaction led to an overhaul of the business model, and by taking better account of the expectations of local customers while preserving margins and diversifying its revenue sources. Faced with criticism and challenges encountered in 2000, McDonald's had to respond by changing its basic business model. What were these changes and what were the consequences for the company?
The adoption of a new business model of McDonald's has also resulted in the desire to display an orientation to the social and environmental responsibility, in particular through the choice of a new color more appropriate and symbolic: green.
The change of logo marks a transition and must serve customers with awareness, on the evolution of McDonald's. For this, the company had launched national communication plans, eliminated the former mascot (Ronald the clown) and played the card of Health justified the origins and quality of its products in advertisements:salads, fruit salads, more vegetables into burgers.
The goal was to improve the image of Macdonald's business model by adapting to changing consumer preferences. As part of this new customer focus, McDonald's decided torevolutionize its business model. To get closer to its consumers, it now emphasizes on franchises rather than the direct management of its restaurants.
McDonald's has chosen to act at national level to better adapt to local conditions in countries where it operates. Indeed, the claims and issues related to image McDonald's restaurants are not the same from one country to another.
With this business model McDonald's opted for a strategy that requires in particular to act prominently on its operation by switching to a new design and layout of new restaurants. McDonald's is therefore preferred to focus on increasing sales in its existing restaurants that open new outlets.
Tags: McDonalds, evolution of brand and company, analysis of business model
[...] "Ouraaa McDonald's does not know us more, "said Cyril Jost journalist at Swiss business magazine Bilan. On the other hand, the brand decided to renew by giving a more dynamic, greener, healthier and more diverse food. This change of image is an important milestone in the redeployment of the strategy of the king of burgers, far from the initial concept where the goal was to sell as much as possible, as quickly as possible and as cheaply as possible. The interest is no longer focused solely on cutting costs but rather on customer satisfaction and increased revenues. [...]
[...] McDonald's has launched a major rearrangement plan of its restaurants. It certainly depends a redevelopment in the kitchen to fit the new way of producing local burgers but especially by a rearrangement of restaurants to make them more attractive to customers. Thus, facades and internal structures are being "green" with such aquariums, explanatory inscriptions on oil recycling and the quality and origin of the food served. The furniture is wooden and metal, the lights and all modern glass give an atmosphere that is healthy and odor free. [...]
[...] -Diversifying offer at McDonald's generates a decrease (relative) in bargaining power of suppliers but also increased costs of raw materials. -The McDonald's adaptation to local tastes has led to the cost of developing new burgers (Chicken Maharala Mac in India, BigMac in China for shrimp, salmon in Norway). This adaptation to local consumption habits required market research for each country. - Standardization for the manufacture of these new products has become more difficult (more difficult to prepare products, requesting more hygienic . [...]
[...] For years, McDonald's has chosen a business model based on the standardization of its production. The name fast food perfectly matched this channel, whose strategy was primarily directed towards the cost of its products and its production line. McDonald's was solely intended to serve customers to the chain remaining few minutes to devour a corner table on their burger and / or menu. McDonald's had no ambition to be a place of life it can be like a traditional restaurant but rather a crossing where you can eat fast and cheap. [...]
[...] The company had opened 1,000 restaurants in 2008 and continues to develop with a growing number of restaurants by annually. In France, the amount of investment is 130 million euros that will allow inter alia the development of McDonald's in transit zones. For if McDonald's France has squared the city centers and peripheries, the brand remains discreet in these less frequented areas. However, new settlements are only possible on sites with high traffic: freeways are the places chosen to strengthen the brand presence. [...]
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