1.1       History

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                        The McDonald family
moved from Manchester, New Hampshire to Hollywood in the late 1930s, where
brothers Richard and Maurice McDonald began working as set movers and handymen
at Motion-Picture studios.1 In 1937, their father Patrick McDonald opened
“The Airdrome”, a food stand, on Huntington Drive (Route 66) near the
Monrovia Airport in Monrovia, California2 with hot dogs being one of the
first items sold. Hamburgers were later added to the menu at a cost of ten
cents with all-you-can-drink orange juice at five cents. In 1940, Maurice and
Richard (“Mac” and “Dick”) moved the entire building 40
miles (64 km) east, to West 14th and 1398 North E Streets in San Bernardino,
California. The restaurant was renamed “McDonald’s Bar-B-Que” and had
25 menu items, mostly barbecue.

In October 1948, after
the McDonald brothers realized that most of their profits came from selling
hamburgers, they closed down their successful carhop drive-in to establish a
streamlined system with a simple menu which consisted of only hamburgers,
cheeseburgers, potato chips, coffee, soft drinks, and apple pie.3 After the
first year, potato chips and pie were swapped out for french fries and
milkshakes. The carhops were eliminated, making the new restaurant a
self-service operation. Richard and Maurice took great care in setting up their
kitchen like an assembly line to ensure maximum efficiency. The restaurant’s
name was changed again, this time to simply “McDonald’s,” and reopened
on December 12, 1948.

            1.2       Logo

            In the 60’s, Mcdonald’s wanted to
change the logo but their design consultant and psychologist Louis Cheskin
insisted that they left the golden arches. According to BBC he said customers
will unconsiciously recognize the logo as “symbolism of a pair of nourishing

            1.3       Background

was founded by two brothers, Richard and Maurice Mcdonald in 1937 in
California. This largest global fast food chain arrived in Malaysia 43 years
later in December 1980. Mcdonald Corp gave their license to Golden Arches Sdn
Bhd to open Mcdonalds Restaurant in Malaysia. After 26 years, they now have 185
franchise outlet nationwide. Mcdonald have created over 7000 job opportunity
ever since they arrive in Malaysia over the years. Mcdonald’s name in Malaysia,
it built its name in Malaysia for the first time in December 1980, when the
United States Mcdonald Corporation award Golden Arches Restaurant Sdn Bhd, a
licence to operate Mcdonald restaurant. Jalan Bukit Bintang, Kuala Lumpur was
chosen as the most strategic location, the first Mcdonald restaurant in
Malaysia has been opened.

With the opening of this restaurant, Mcdonald
Malaysia was crowned as the first restaurant in the country which operate a
majority Muslim population. Now, Mcdonald Malaysia has had a total of 204 restaurant
nationwide network and make new restaurant with a projected growth rate of
between 15-20 restaurant annually. With the opening of this new restaurant, of
course employment opportunities for local resident also increase. Estimate of
1500 new jobs will be created through the opening of new restaurant, the
edition of staff and remodeling restaurant available.

            1.4       Vision

                        McDonald’s vision
statement is as follows: “Our overall vision is for McDonald’s to become a
modern, progressive burger company delivering a contemporary customer
experience. Modern is about getting the brand to where we need to be today and
progressive is about doing what it takes to be the McDonald’s our customers
will expect tomorrow. To realize this commitment, we are focused on delivering
great tasting, high-quality food to our customers and providing a world-class
experience that makes them feel welcome and valued.”






1.5        Mission

                        “McDonald’s brand
mission is to be our customers’ favorite place and way to eat and drink. Our
worldwide operations are aligned around a global strategy called the Plan to
Win, which center on an exceptional customer experience – People, Products,
Place, Price and Promotion. We are committed to continuously improving our
operations and enhancing our customers’ experience.”

            1.6       Product
and Service Provided

                        McDonald’s provides
mainly food and beverage products. This element of the marketing mix covers the
various organizational outputs (goods and services) that a company provides to
its target customers. McDonald’s product mix has the following main product

1.         Hamburgers and sandwiches

2.         Chicken and fish

3.         Salads

4.         Snacks and sides

5.         Beverages

6.         Desserts and shakes

7.         Breakfast/All-day breakfast

8.         McCafé

is primarily known for its burgers. However, the company expands its product
mix through time. At present, customers can purchase other popular products
like chicken and fish, desserts, and breakfast meals. This element of
McDonald’s marketing mix indicates that the firm innovates new products to
attract more customers.




1.7       Tagline

                        ‘IM LOVIN IT’

advertising blitz marked, surprisingly, the first time the venerable fast food
company had ever used a single message and set of commercials worldwide at the
same time.




High demand from customer make McDonald
become a success company like today. The effective of strategies that McDonald
used very efficiently by follow the culture of each country.

Such as, in India there is no Beef
because most people in India is adherent of Buddha and in US they sell a bacon
that made from pig that cannot be sell in Malaysia because most of people in
Malaysia is Muslim. Furthermore, based on strategy of business level for
integrated Cost Leadership differentiation McDonald stay ahead of competition
by providing customer with more option of healthier meals, cheaper prices, and
fast service. Product innovation and existing as property upgrade (McCafe,
smoothies, and free Wi-Fi internet.) Hence, the environment inside the McDonald
is more comfortable that makes customer likes to spend time chilling and dine.
Moreover, Mcdonald’s provide Drive Thru service that easier for customer to buy
their food so that the customer did not have to line up the long queue. So in
that case, that’s why people prefer Mcdonald than other fastfood.














            3.1       Strenghtens


has successfully rolled out new items like coffees, smoothies, and Angus burgers,
expanding the range of menu choices. With a strong product offering, the
company has grown income throughout the recession, notching strong increases in
same-store sales. Operations are spread around the world, meaning the company
is not exposed to just once currency or economy. Even trading near its highs,
McDonald’s serves up sizzling dividend yields that top the 10-year Treasury.
The yield comes with a side order of annual dividend hikes dating back to 1976.
The annual dividend payment has gone from 55 cents per share in 2005 to $2.20
this year.






will be harder and harder to find prime locations to build a set of golden
arches. The U.S. is saturated with its restaurants, so growth will have to
occur internationally, posing potential cultural challenges. While the annual
dividend hikes are likely to continue, the dividend growth rate has been
slowing and will probably continue to slow or level off.


3.3       Opportunities


are opportunities for new restaurants outside the United States, and McDonald’s
has been taking advantage of them. China is a great opportunity for the
company, as is much of Asia. Menu innovations are limited only by imagination. Low
interest rates provide cheap capital for growth. In addition to
dollar-denominated debt, McDonald’s recently became the first foreign company
to issue yuan-denominated bonds in Hong Kong.



3.4       Threats


Governments are considering regulations targeting
fast food. McDonald’s faces competition from strong peers. New product rollouts
often have to go head-to-head with established players like Starbucks. Commodity
price increases could increase costs while a weak economy limits the ability to
pass the price hikes through to consumers.








McDonald is a one of
world-famous restaurant in global level but every advantage have there are own
disadvantage. Majority perception public of the restaurant is selling an
unhealthy foods. Most of the foods that McDonald offers is hamburger that make
people assume it is less health. This is why my group wants to suggest a way to
McDonald provide their foods by add healthier menu. It will changes people’s
perceptions to McDonald’s and it’s also can maximizes profit. In this way, to
whom that cares about their health will buy it with open heart.

Next, we recommend that
McDonald should train their employees so that they work effectively and
effiency. This can improve the performance of each worker as well as prevent
customers from getting the wrong order and waiting for a long time. In this
way, it will helps the worker to work well. Additionally, McDonald’s who
provide drive-thru services can reduce their problems with long-awaited
customers as they work well.

In addition, we
recommend that McDonald should create an application where customers can place
orders at home and take their orders at the restaurant. Therefore the customer
no longer needs to queue at the restaurant and can also avoid mistakes when
taking orders. Customers also do not have to wait to take their order in the
restaurant. This application will simplify and save the busy working hours of
customers and have no long breaks in the office.