McDonald’s Corporation (Abridged) Harvard Case Solution & Analysis



McDonald’s was created in 1941 by two brothers named Mac and Dick as a drive-in restaurant. Later, self-window service was introduced. The products include hamburgers, French fries and milk shakes, at a very reasonable price of 15 cents. The preparation method of each product was standardized and the quality remained consistent. Ray Crok became much attracted to the McDonald’s brothers and introduced first restaurant franchise in 1954.
Company’s competitive advantage was its low price, consistent quality and fast service. However, the focus of the company was to make products of consistent high quality, the operating system of restaurant must be unique and the relationship of chain that includes suppliers, franchises and the corporation must be well established.
The operating system of McDonald’s have their primary focus on improving the existing products, developing better supplier relationships, improving the equipment used in the restaurant and to train and examine the franchises. Moreover,McDonald’s also focused on its supply chain. However, unlike other restaurant managers, the focus was on quality of the items needed such as potatoes and chicken, not on the prices of the products. Limited amount of items in their menus with limited suppliers helped the restaurant to create better relationships and the ideal environmentwas created to dig in everything.
McDonald’s corporation (abridged) Harvard Case Solution & Analysis
The recipe of every product cooked in the restaurant such as hamburgers, French fries and milk shakes have its special recipe and a strict amount of raw materials are required from suppliers. This perfect measurement of items helps the quality of foods to remain consistent to all national and international franchises. Moreover, the evaluation and examination of all franchises nationwide are held for few times in a year. The evaluation of restaurant includes cleanliness, the quality of food and the service provided to customers which is referred as QSC. Soon. There was addition of a letter V which represents value.
Apart from focus on suppliers’ material quality and franchises, another competitive strategy was to focus on all the methods and strategies that would help the company to improve its operations and ways to do things in a better way. As a result, the company, with the help of its faithful and trustworthy suppliers, introduced a complete breakfast menu which includes McMuffin, a special McDonald’s product. Later, this menu accounted for 15% of company’s sales.
As the people got more nutritious conscious, the sales of burgers and other things decreased. Therefore, the restaurant introduced salad, fat free burgers and other health related things that would attract health conscious people.
The company’s competitorsincreased as the restaurantwas providing greater variety of foods and it was a full service restaurant that had abetter ambiance to enjoy with family. On the other hand, Sonic and other restaurants offered drive through services and their sales were consistently increasing, therefore, the company wanted to take some operational steps to compete with the new market entrants and to grow the sales at higher level...................

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