Wednesday, May 11, 2011
What is McDonald’s Line of Business?
Starting his career as a Red Cross ambulance driver, how did Ray Korc became the owner of McDonald’s Restaurant chain? Ray had a vision:
“Serve burgers, buns, fries and beverages that tasted just the same in Alaska as they did in Alabama”
This could only be done through creating flaw less processes and effective supply chain, and today, McDonald’s restaurant system is known for consistency in taste due to uniform methods of preparation.
I read an interesting quote from him:
“If I had a brick for every time I’ve repeated the phrase Quality, Service, Cleanliness and Value, I think I’d probably be able to bridge the Atlantic Ocean with them.”
Today McDonald's is one of the largest restaurant chains in the world.
But if I ask you “What is McDonald’s Actual line of business? I am sure almost 100% will respond: “RESTAURANT BUSINESS or Selling Hamburgers”.
McDonald’s line of business is “REAL ESTATE”. Surprised!
McDonald’s is known for acquiring properties for its restaurants at the most attractive intersections. Not only in the US, but around the globe, all McDonald’s restaurants are either located at busy intersections or in malls full of customers. These properties have made this company the single largest owner of real estate in the world.
Interestingly, the company is now entered in China in a big way. Let’s see how this fast emerging market takes its business to new heights. That's what we call a futuristic strategy for business development.