BUSINESS KNOWLEDGE GAINED FROM MOVIES

I watched the movie “The founder” a few days ago, I want to share something I get from this movie. This is not only a biographical film but also an excellent business case. If you want to know more about the process of a successful brand, I really recommend this movie!!

(Spoiler alert!)

McDonald’s brothers have their own burger business, it uses the drive-in business model. They found three problems that caused restaurant sales to decline.

  1. The target customer group is wrong.
    Because there are some reasons will affect the dining environment. Such as cigarette vending machines and jukeboxes, which will attract some bad teenagers and gangsters.
  2. The quality of service is not good.
    First, consumers need to wait a long time can get food. Second, attendants too busy that they often send the wrong meals.
  3. Operating expenses are too high.
    Such as a large number of employees lead to high wage costs and the loss of tableware.

Christensen et al. (2016) believe innovation has been the first arrangement for leaders. They rethought the business model and optimized it. Created “Speedy System”.

  • Focus on best selling products

They “simplify” (Eric et al., 2016, p49) and keep the best selling products on the menu: Hamburgers、French fries、Soft-drinks.
This proves successful. They choose to make only one or two products to drive the brand. No one will expect that the brand influence of this brand would make people think of Hamburg when they mentioned McDonald’s. Just like another brand Coca-Cola.

Menu (before)
https://www.amazon.co.uk/gp/video/detail/B01MUHWG3P/ref=atv_dp_sign_suc
Menu (after)
https://www.amazon.co.uk/gp/video/detail/B01MUHWG3P/ref=atv_dp_sign_suc
  • Minimize costs

The cancellation of the delivery service has become a consumer self-service, saving a lot of staff costs; The tableware was changed to one-time packaging, no wastage of tableware; Eliminate cigarette vending machines and jukeboxes so that they will not attract problem teenagers and create an environment for the family consumer.

  • Only wait 30 seconds

The McDonald’s brothers spent six hours on the tennis court to finalize the best kitchen design. Then created a 30-second McDonald’s meal delivery process.

Kitchen design
https://www.amazon.co.uk/gp/video/detail/B01MUHWG3P/ref=atv_dp_sign_suc

The McDonald’s brothers also designed McDonald’s iconic logo: the golden arches. Every town in the United States has two things-churches and courts. The church is topped with a cross, the court is topped with a national flag, and McDonald’s arch is the third thing. It represents the United States, a family lifestyle in the United States. It is the “New American Church.”
Brand culture is an important part of brand marketing. McDonald’s is the epitome of American food culture. No matter where in the world, as long as you enter McDonald’s restaurant, you can return to American style in one second.
McDonald’s brothers are not the only ones who made McDonald’s successful. Ray Kroc, who sells milkshakes, invested in McDonald’s and convinced the McDonald’s brothers to give him a franchising effort. However, he quickly expanded the brand, which led to the tension of the capital chain. How to reduce the cost while guaranteeing the speed of expansion has become the most important problem.
he rethinks the business model: Buy the land and sublet the land to the dealer. Plus, replacing milk with the milkshake. It greatly reduces the cost of the process.

This is a win-win business model. First, the company will have a stable up-front income before the hamburger was sold. Second, It will have the greater capital expansion, and then the company can buy land. After the land purchase, the capital expands again. This is why McDonald’s is now one of the successful companies in the world.

Bibliography:

Christensen, C, Hall, T, Dillon, K, & Duncan, D (2016), ‘Know Your Customers’ “Jobs to Be Done”. (cover story)’, Harvard Business Review, 94, 9, pp. 54-60.

Eric Almquist, John Senior and Nicolas Bloch (2016), “The Elements of Value”, Harvard Business Review, September, pp.46–53.

John Lee Hancock (2017), The Founder. Available at https://www.amazon.co.uk/Founder-Michael-Keaton/dp/B01MUHWG3P/ref=sr_1_1?keywords=the+founder&qid=1569241148&s=instant-video&sr=1-1 (Accessed: 20 November 2019).

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