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Mc Donalds In Colombia Essay

2180 words - 9 pages

MGT 6201 International Operations Hope International University McDonald's Colombia An International Rapid Service Restaurant Robert C Peterson Team Expansion April 21, 2001 A brief history of the organization: Two brothers originally started McDonald's, they ran a single restaurant for 17 years in a single city in California. In 1954, Ray Kroc visited them to sell them a milkshake machine and saw a bigger vision. In 1955, Mr. Kroc began the new "McDonald's System Inc." and in the first year opened 18 new restaurants across the United States, and he maintained the quality, the production line and the limited menu that the McDonald brothers had started.McDonald's tried to come to Colombia in 1983, but the economy was closed to such businesses. They tried for 12 years before having success in getting the appropriate paperwork and permission to start a McDonald's in Colombia. At first, McDonald's didn't open doors to the public for consumption, like they have done before. They started working in Colombia to obtain the correct temperature at which to cook the fries to get the correct taste, and to obtain the correct menu and the same tastes as the company is accustomed to. At first they set the prices, while they are importing the supplies, at a higher level. Then later discounted the prices of the food to the customer.Today, Colombia is the fourth most important country in Latin America to McDonald's. In it's first year it surpassed all of the expectations that anyone had for the restaurant with the opening of 12 restaurants. Thanks to the high demand, they will continue opening McDonald's in the rest of the country. McDonald's is continually looking for businesses in Colombia to supply them with things they need. They continue to invest in the economy and the country. McDonald's is working for a bigger part of the pie in the Colombian market, even though this pie continues to shrink.Organizational structure: The organizational structure is based on franchises, where the owner is an involved operator and not some unconcerned corporate entity. McDonald's believes that by keeping owners, or franchisers that are involved in day-to-day operations of their store, their drive for success is much higher. The McDonald's corporation does operate some stores, but this is only to open new markets or to continue establishing good market procedures and basic store operation. It is the desire of the corporation that each McDonald's location be individually owned and operated.When an owner is found for a restaurant, McDonald's shows them the restaurant and explains why they feel it is a good location. The potential owner has the choice of purchasing the said restaurant or waiting for a new restaurant in a future location that he/she feels more comfortable with. After the owner has purchased the restaurant, he goes through a year of training so that the restaurant will continue in the way that McDonald's desires and the owner knows the...

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