Principles of Marketing: McDonald's Organizational Structure and Target Market Analysis

Running head: PRINCIPLES OF MARKETING
Principles of marketing
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PRINCIPLES OF MARKETING
Contents
Introduction.................................................................................................................................................2
Specification of key assumptions.................................................................................................................2
Synthesis of information..............................................................................................................................6
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9
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PRINCIPLES OF MARKETING
Introduction
In this report two different sections have been discussed. At first history of McDonald’s, their
organisational structure, features of organisational structure and culture have been identified as
four kind of key assumption followed by a synthesis on the manner the information for deciding
their potential target market for new product was combined for decision has been elaborated.
Specification of key assumptions
a. History of McDonald
According to Business Premium Collection (2016) McDonald’s is a US fast food chain that was
established in the year 1940 as restaurant that was being managed by Richard and Maurice
McDonald. Initially the fast food company started operations in California, USA. Earlier the
business owners rechristened McDonald’s as Hamburger stand and later it was transformed into
a franchise operating business with Golden Arches logo that was launched in year 1953 at
Arizona. McDonald’s has their original head office at Illinois and later the fast food chain moved
their global head quarter to Chicago during 2018. McDonald’s is the biggest operating fast food
chain restaurant across the world in terms of revenue and as of year 2016 McDonald’s served
around 69 million customers every day across more than 100 locations in the world with over
36,900 fast food outlets. Though they are popular for their hamburgers but McDonald’s also
offer cheeseburgers, chicken menu, French fries, breakfast menu, soft beverage drinks,
milkshakes, wraps and deserts. McDonald’s after being heavily criticised across the world by
media and nutritionist groups for offering fast food items to customers which are unhealthy due
to health concerns related to obesity had responded to new customer preferences for health
conscious food products and tastes with food menus that were healthy to deal with negative
criticism. They launched several range of healthy menus like salads, fish, smoothies, fruits
items etc in response of being serving unhealthy food with fast food items.
McDonald’s revenues stream are mostly made from rent, loyalties and fee paid by franchisors
along with sales that are made in their company run restaurants. As of 2012, McDonald’s had
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