•How Mc Donald works ??
•Terms of its corporate management
•Ray Kroc as a crucial figure and a brilliant manager and
•Contribution of people towards the growth and success of
McDonald's in important way.
About the Book
• Richard and Maurice McDonalds.
•Ray Kroc - Individual promoted the Multimixer and through its
promotion, met the McDonalds brothers.
•Fred Turner - Second Chairman and CEO of McDonald corporation
•Jim Schindler- Head of McDonalds Engineering and Design
corporation (Key person in real estate bussiness)
Recipe behind the Success
Big Idea.. Franchising
• On March 2nd, 1955 McDonald's come up with franchising.
• It was all Kroc's innovations in franchising. He knows that the
business will become cutthroat...
• McDonald's looks for the best locations within the marketplace to
provide our customers with convenience. We build quality
restaurants in neighborhoods as well as airports, malls, tollways,
and colleges at a value to our customers.
• You'll find that our restaurants reflect our commitment of giving
back to the communities in which we do business. When you walk
into any one of our restaurants, you walk into a brand that extends
into the community. Whether our restaurants are built with a
playplace in your local neighborhood or a business center in your
local airport, we aim for every customer in every restaurant to have
the best quick-service restaurant experience, every time.
Franchising.. Small idea gives enormous output.
Mr. Ray Kroc
and his idea
Expand by Marketing .
• McDonald's is an essential piece of Americana and one of
the most iconic brands in the world. The famed golden
arches are recognized by more people than the cross and
even the Queen of England owns a franchise.
• From early on, founder Ray Kroc focused on the
restaurant's marketing orientation, or what the customer
wants in a product, rather than selling the product itself.
McDonald’s has since "become a mastermind of
marketing toward specific markets by pioneering ideas
such as breakfast menus, healthier choices and
alternatives, and 'adult' foods.“
- Print Media
On what they worked later:
Learning factor etc..
What they has:
Business idea, Strong
products and customers
centric services etc..
Possession and Improvement.
1 • We place the customer experience at the core of all we do
• We are committed to our people.
2 • We believe in the McDonald’s System.
• We operate our business ethically.
3 • We give back to our communities
• We grow our business profitably & We strive continually to improve.
Vision and Mission..
Strategies applied ..
Strategies applied ..
Contribution in success.
Bitter lessons of
2 Western World
Products on menu
boards from Germany
Secret behind the “Arches” is making money”
Mr. Ray Kroc
Never seen business
by profit & loss
fees 1.9% on food
sales out of that
0.5% royalty fees
paid to McDonald
Brothers no motive
to make reserve or
which require for
The rent due to
McDonald's could be
even more if the
restaurant was doing
well. The franchisee
had to pay either the
markup or 5 percent
of the sales --
Kroc and Sonneborn
also requested up-
deposits from the
capital would fund
the opening of more
As a result company
owns 69% of its U.S
units & 35 % of tis
International Units by
end of 1991 net book
and 90% of profit
comes from real
Final facts about their success
Operating Cost less as compare with revenue
• Dedicated suppliers
• Restaurant property
Liabilities are Less
• Long term debt
• capital management
• Property & Equipment