Essay Example on McFranchising How McDonald's became a Global Phenomenon









McFranchising How McDonald's became a Global Phenomenon Abstract McDonald's land of the McFoods and McDrinks How did a small local restaurant run by two brothers turn into one of the most successful companies and restaurants in the world All it took was a little McFranchising Since the mid 1950 s McDonald s has been expanding throughout the United States and across the world With the use of franchising they ensured that they could have quality control across all of their locations yet still have the ability to toggle with needs that were specific to the location of the market Franchising turned McDonald s into a household name and gave people a chance at owning something that they could pass on through generations to come McFranchising How McDonald's became a Global Phenomenon When someone thinks of McDonald's there are many things that could come to their mind Some people might think of the McDouble McNuggets or the McFlurry or even Ronald McDonald the clown Others might think of heart disease Either way McDonald's has been a household name since the 50 s But how did one of the largest restaurant franchises in the world come to be All it took was a goal a vision and a little McFranchising A McHistory Many people might not know that McDonald's actually started out as a small independent restaurant in Sanbernardino California It was owned by 2 brothers Dick and Mac McDonald 

They operated uniquely compared to most restaurants of their day by focusing on a minimal amount of food and drink items to ensure that everything would be prepared quickly and with equal quality A Man named Roy Kroc saw a huge business opportunity and ran with it in the mid 50 s By the time 1958 had rolled around McDonald's had sold their 100 millionth burger That's A lot of cows Kros vision for the future of McDonald's was to create a business plan and restaurant model where a burger would look and taste the same no matter what McDonald s you purchased it from In order to make this vision a reality Ray Kroc decided to go the franchising route for his business plan He persuaded future franchisees and suppliers by using the slogan In business for yourself but not by yourself He wanted to emphasize that all aspects of the business had to work together in order for it to succeed franchisees suppliers and McDonald s employees This created a unique business model that would end up being extremely successful Our History and Timeline McDonald's Franchising Abroad McDoubles across the World So what exactly is a franchise let alone an international franchise According to entrepreneur com it is defined as the following A continuing relationship in which a franchisor provides a licensed privilege to the franchisee to do business and offers assistance in organizing training merchandising marketing and managing in return for a monetary consideration Franchising is a form of business by which the owner franchisor of a product service or method obtains distribution through affiliated dealers franchisees So in simpler terms someone pays to open one store of a corporation and the corporation receives a certain percentage or some other monetary compensation for allowing them to operate that business In the US it is fairly common to walk into a franchised restaurant and see a pamphlet advertising that even 

YOU could own a such and such restaurant To some it is extremely appealing because what says living the American dream like owning your very own McDonald's Don't get me wrong I'm definitely not hating on owning a McDonald's or two My boyfriend s great aunt actually owns at least 8 McDonald s in Alabama and she is in no shortage of money So what does it take to franchise a McDonald s and what are the benefits to the corporation itself for using the franchising international market entering strategy Well in my research it's as simple as going to their website and filling out an application If you make enough money you re a shoe in I believe that is to the McDonald s corporations benefit to take the franchising route when it comes to international business Not only does this allow the individual franchisees to monitor their own restaurant but it also ensures that all the locations will be held to the same company wide standards In international markets it is an advantage to franchise because the franchisees overseas can relay information back to the corporation about what works best in their individual country or market Many franchised McDonald's have completely separate menus based on their country with the exception of the standard items such as the McDouble and McNuggets because each market has a different portfolio of what items will succeed Clearly this strategy has worked well for McDonald s considering they have over 20 000 restaurants in countries outside of the US Daszkowski Conclusion For McDonald's franchising was an extremely successful route to take when expanding internationally and in the US It ensured for them that all of their locations would have the same quality values and quickness but also that they could be unique to the market they were located in Franchising is one of the most common international market entry strategies but it might not be the best route to take for all businesses It is up to the corporation to decide which strategy best fits their needs and management styles References Daszkowski D n d McDonald s Here There and Everywhere Retrieved January 21 2018 from https www thebalance com how american fast food franchises expanded abroad 1350955 Our History and Timeline McDonald s n d Retrieved January 21 2018 from https www mcdonalds com us en us about us our history html

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