Mcdonald\'s Can it Regain Its Effectiveness

McDonalds is one of the strongest brand names famous all over the world. Any part of the globe u trot and u will find some McDonalds outlet in some nook and cranny.

Ray Kroc is the person behind what McDonalds stands for today. The success story of McDonalds starts with his story when he sold milk shake mixer that could shake five milk shakes simultaneously to a restaurant in California that was more of a hamburger stand. McDonald brothers ran this stand with idea of quality, service, cleanliness and value or affordable prices. The same Q, S, C & V later became McDonalds mantra when Ray Kroc opened first franchise in 1955. By the year 160 around two hundred restaurants started functioning all over United States. Ray Kroc as a visionary made note of social and demographic trends in United States. With increase in disposable income and women workforce also swelling, the concept of a fast food restaurant that offered quality food at an affordable price caught on with the American people. Kroc emphasized on the casual family atmosphere where people can enjoy their meals in a clean environment coupled with fast and good service. With these social factors and strategies in mind McDonalds success became phenomenal. Macdonald not just became a phenomenon in the United States but its franchise operations spread all over. By 1984 alone, McDonalds had 8304 restaurants and as years passed by McDonalds restaurant increased in number. Franchising was the driving force behind Macdonald's growth along with the concept of Q, S, C & V. McDonalds' strict measures to monitor training and development of the franchisees. At times McDonalds even canceled the licenses of its franchisees if they were unable to follow strict guidelines regarding operations. They also allowed some experimentation and adaptation according to the norms and culture of the country in which the franchise was set up. That's how McDonalds became a widely known brand name in the fast food industry.

Even in year 2002 and in years to come McDonalds presence is there in a number of countries all over the world. However, the scenario has much more changed. With the passage of time McDonalds has standardized and streamlined its operations resulting in many advantages. Their service and operations standards are their assets on the basis of which McDonalds has grown but the demographic factor which was the main motivating force behind McDonalds success and Ray Kroc's strategy formulation is conspicuous by its absence. Many other fast food chains have cropped up over the years offering salads and sandwiches for the increasingly health conscious fast food market. Some of the chain for example Subway with their sandwiches and Wendy's white meats, salads and tastier and juicier broiled food captured market's attention. The taste of the market changed with time and McDonald's taste remained stuck with the same concept of fast food. So taste is definitely one of the factors that McDonalds failed to monitor.

McDonald became a name to reckon with because it also came up with unique idea and expanded all over the world with the help of franchising that was again another first from McDonalds. It blazed the trail rather then being the follower. Many other fast food organizations followed McDonalds and its approach. The strategies and services became benchmark at McDonalds that others adopted. With the passage of time tastes and preference of people have changed. McDonalds stopped blazing the trail and could not keep pace with the changes in consumers' tastes with its standardization and worldwide franchising. Critics have argued that McDonalds after looking at its revenues dropping in the western target market have moved their concentration in the developing nation to cash in on people's proclivity towards fast food chains and western outlets. "Stilted growth, poor quarterly earning reports and surveys show that McDonald's is no longer the staple of American culture that it used to be" (Johns, 2003). But with geo-political changes and globalization and proliferation of media and health awareness this approach seems short-term. If McDonalds wants to keep its brand name alive and happening in the long-term then it has to realign its strategy according to the changes in the market segment at least. Ideally, McDonalds must assume the position of torchbearer and trailblazer again to retain market leadership position with a proactive approach.