McDonald’s is one of the leading restaurant chains in the world. It is the world’s largest fast food chain operating in 121 countries with 30,000 restaurants and a rich heritage spread across almost five decades. The Company owns 9000 restaurants and licenses out more than 22,000 franchise operations around the world. McDonald’s has been pursuing a growth strategy for the last decade. McDonald’s foreign operations amount for more than half of the company’s revenue today and all have been marked by Mr. Kroc’s basic vision of selling the maximum.
McDonald's Corporation earns revenue as an investor, a franchiser, and an operator of restaurants. Approximately 15% of McDonald's restaurants are owned and operated by McDonald's Corporation directly and the remainder operated by others through a variety of franchise agreements and joint ventures. There are slightly different between McDonald and other fast food chains. Besides to ordinary franchise fees and marketing fees, which are calculated as a percentage of sales, McDonald's may collect rent, which may also be calculated on the basis of sales.
Ray Kroc developed his empire based on the fundamental principles of Quality, Service, Cleanliness, and Value (Q.S.C.&V.) and developed tangible goals and specific operating practices to carry out his vision. Ray Kroc had communicated with his employees through videotaped messages. There are 3 strategic priorities for 1991 were integrated into McDonald’s are stated as below:
• to enhance the message that McDonald’s is value driven on behalf of its customers by emphasizing their profitable value-meal combinations
• to provide exceptional customer care by exceeding customer expectations including finding ways to add personal touches that go beyond convenient locations, quick service, clean restaurants, and quality products;
• to remain an efficient producer while maintaining quality by looking to innovations in food processing, construction, and design...