McDonald's company in the world. History and business - Research Paper Example

The intention of this study is McDonald as one among many international companies looking for great opportunities to establish and find business partners in rapidly growing countries for instance China, Asia, Central Europe and not forgetting India. McDonalds was established in 1940 in California by two brothers Dick and Mac McDonald. The restaurant became trendy hangout for teens in the post war affluence. In order to feed the teens the brothers made a menu in form of perennial much-loved hamburgers then expanded to four restaurants by 1953 using the assembly line system of food production.

In 1955 entrepreneur Ray Kroc bought the right to franchise McDonald after noting the great success of the brothers. Ray Kroc opens his first McDonald's 0n April 15 1955 in Des Plaines, lIIinois. In 1960, Kroc renamed Mcdonald’s Corporation then he focused on marketing of McDonald products especially the family meals and children, advertisements particularly though the television that promotes a child friendly smiling clown brand mascot, Ronald McDonald. To date the franchise has more than 30,000 restaurants worldwide in more than 119 countries serving more than 50million daily (Nayar).

According to Stanton et al., the introduction of the Speedee service System in the 1948, Speedee became the company logo hence introduction of the principle of the fast food modern restaurant. In 1963 Speedee was replaced with Ronald McDonald. Due to the much trust in the success of the company Kroc suggested for the franchising of the restaurant around the country. The brothers where not ready to risk it all in the franchise of the company throughout the country so Kroc took it as his responsibility and volunteer to return to his hometown outside Chicago.

With the license to open up other McDonald in the country, apart from other territories in Arizona and California licensed already by the McDonald’s brothers. As already mentioned the first restaurant was opened in Des Plaines, Illinois by Kroc then he incorporated his company as McDonald’s corporation in April 1955. Kroc encountered a number of challenges in the new ventures. The first challenge particularly was adapting the McDonald’s building that was design for the climate in the northern.

Installation of a basement was required to house a furnace, also it was difficult for the adequate ventilation, as warm air in the winter were sucked out by the exhaust fans and cool air in the summer. However, the most frustrating hurdle was the failure by Kroc to reproduce the delicious french fries initially. Kroc sought for franchisees for the McDonald’s chain once the Des Plaines was operational. The other snag came closely in 1956 he discovered that the brothers had given the license of franchisees to the Cook County, Illinois to the Frejlack Ice cream Company.

Kroc was angry because the McDonald’s brothers had not informed him of the arrangement. Consequently he purchased the right back five times higher than Frejlack originally paid for. He made a decision that it is best for the restaurant to be established first before they are franchised out, this will enable him to have control over the uniformity of the McDonald’s stores. In the early years the McDonald’s restaurants were mainly situated in the suburbs. In order to accommodate his U- shape