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Mcdonalds Fast Food Chain Malaysia

In: Business and Management

Submitted By missysushee
Words 4509
Pages 19
Unit 1

McDonald’s is the world’s largest fast food chain that is originated in California, USA. Ray Kroc became a franchisee of the McDonald brothers (Dick and Mac) and began opening new restaurants, buying all the rights to the McDonald's concept in 1961 for $2.7 million. McDonald’s Corporation give the franchise to Golden Arches Restaurant Sdn Bhd to operate McDonald’s restaurants in Malaysia and the first outlet was opened in April 1982 at Jalan Bukit Bintang, Kuala Lumpur.

McDonalds mission is “To be our customers' favourite place and way to eat” and their vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile.

The operations in McDonald’s Malaysia are affected with the government regulation on the regulation of fast food operation. As a certified fast food operator, there are many regulations and procedures that McDonalds should follow. For example is the Halal certification that becomes a concern to Muslim consumers. McDonalds protect its integrity and consumer confidence by ensuring all materials and process are as claimed or must followed.

The economic condition and growth of the country also is an important indicator to the demand of products that McDonalds offered. As the food priced slightly above normal foods, not many people will have the income range to consume the products. McDonalds faced government regulations on tax of profit where it gains from the operation and other tax such as entertainment and restaurant service tax.

McDonalds’ has a strong global presence and is considered as a market leader in both the domestic as well as the international markets therefore the threats of new entrant are very low. However the threat of substitute product is high for McDonald’s in Malaysia

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