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Analysis of Mcdonald’s Ceos Strategic Initiatives

In: Business and Management

Submitted By basitkhakwani
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Pages 6
McDonald’s and Its Critics: 1973–2009 is the most influential case study written about the McDonald which makes the readers aware of the reasons and strategies behind the success of the McDonald, even with the criticism McDonald faced throughout the history of its existence. This case study analyzes the strategic initiative taken by each CEO and assessment of these initiatives.
Ray Kroc, 1955–1973
Ray Kroc founded McDonald’s Corporation in 1955. He bought the rights from MacDonald’s brothers to open the franchises all across the country. Illinois was the first place to have McDonald. Ray Kroc adopted the ideas of simple, limited menu and easy steps of food. He gave the world with the most famous gold arch logo of the McDonald.
Centralization, uniformity and provision of the standard operating procedures for the company operations were the key initiatives taken by the Ray Kroc for the success of franchising system. Centralization is defined as the process in which all the major decisions take place at the top management.
Ray developed standard operating procedure and start monitoring franchises to make sure standards are being met. Uniformity was the key element of his strategy. Kroc gave the idea of centralized strategy for the corporate business. Under this strategy, Kroc gave the idea of QSC (quality, service and cleanliness). Under his tenure, top management took all kinds of decisions adopting the idea of centralization.
The centralization and uniformity initiative was successful, but it was a hindrance in the way of innovation. As one of the McDonald franchise introduced the idea of Big MAC against the centralization rules, which later on accounted for 20 percent of all McDonald sales.

Fred Turner, 1973–1987

Fred Turner next CEO of the McDonald laid the basis for a very successful franchise system for the business. He emphasized on detailing of…...

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