Mc donalds

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Information about Mc donalds

Published on February 1, 2014

Author: ismejiaxin0905



management principle that McDonalds using.
Planning, Organizing, Leading, Controlling,
what is their challenge.

BACKGROUND  McDonalds is begun in 1940s. Named McDonalds Bar-B-Q restaurant.  In Dec of 1948s, they had reopened as a selfservice-drive-in restaurant.  In 1954s, Ray Kroc started McDonalds Franchise Business  Over 119 countries in the world.

MCDONALD’S MISSION & OBJECTIVE  Is to become our customers' favorite place and way to eat  With inspired people who delight each customer with unmatched quality, service, cleanliness and value  Is to satisfy the internal customers

 McDonalds successful thrives on adapting to consumer demands.  Many of the new product added into McDonald’s standard menu over the years were developed by franchisees  In 2005, a new adaption to the consumer demand was the provision of the free WiFi with Nintendo in select location  Starting their first delivery service in Singapore

Competitive Strategy  Cost Leadership Strategy  Differentiation Strategy  Focus Strategy  Cost Focus Strategy  Product Variety Strategy  Focus on customer type Strategy  Geographical Location  Advertisement

Cost Leadership Strategy  Offering the basic fast food meals at low prices.  They hire and give training to their employees  Make the process of serving in the simple ways for their employees

Differentiation Strategy  Offer high quality food by low price, creating different taste of food, extraordinary service and innovative design for attract the customer.  Always maintain the high standard of food and quality  Enjoy the food more comfortable with the clean environment  The basic service of the McDonald’s is to provide a convenience, good times, friendly service, cleanliness and delicious food.

Cost Focus Strategy  Good at adjusting its marketing to keep customers coming.  Promoting value meals for lunch and dinner

Product Variety Strategy  McDonalds chain sells a variety of product in its product Focus on customer type Strategy  Provide happy meal which contains free toys to attract the children attention.  Provide some healthy menu like salads some light ingredient food for elderly customers

Advertisement  United State’s McDonalds emphasize in advertising, become the fourth largest advertiser in the country  McDonalds also make significant in sponsorship to increase its positive image  Childhood imprinting  Markets the Happy Meal aggressively so that this kids meal will implant a mindset to children.

Geographical Location  Different country or place will have different culture.  For Islamic country, pork burger could not sell because the Muslim can only consume halal food which is pork-free.

Element In Organizational Design Work Specialization ♪ Departmentalization ♪ Authority and Responsibility ♪ Span of Control ♪ Centralization vs. Decentralization ♪ Formalization ♪

Work Specialization Separate job in to many part ♪ Division of labor ♪ McDonald’s used the work specialization in an integral part of their business. ♪  computerize to take customer order  automatic timer to assist in cooking

Departmentalization ♪ Basis by which job are grouped together ♪ Five traditional departmental structures ♪ Matrix Departmentalization  hybrid form that combines two or more forms of departmentalization

Authority & Responsibility ♪ Region sales, forwarding problem to concerned authorities ♪ to keep command over the business activities ♪ customer cares, branch maintenance, maintain the healthy environment

Span Of Control ♪ span in a small group ♪ can in order to maintain close control ♪ is aim a target of high productivity and quality there is a high span of control for the employees

Centralization VS. Decentralization ♪ Centralization-decision making takes place at upper levels of the organization ♪ Decentralization- lower level manager provide input or make decision

Formalization ♪ Standardized an organization’s works ♪ Extent to which employees behavior is guided by rules and procedures ♪ McDonalds is less formalization and dedicated toward the quality and production

The Important Of Leading Motivate Employees  Carry out business  Motivation is a process person’s effort are energized, directed, & sustained toward attaining the goal.

The Importance of Controlling Control is the management function:  Monitoring Activities

Three Categories Control management  Feedforward Control • Prevent Problem Occur  Concurrent Control • Concurrently monitor the employee’s action • Provide solutions if any problem occurs  Feedback Control Respectively • Give manager useful meaningful information on how effective their planning efforts were. • Enhance motivation

Suppliers Problems o Due on the company expansion, hard to find a suitable supplier. Achieve the environmental and animal welfare standards o The world's largest user of beef and the second largest user of chicken o Control the overuse of the natural resources

↓ in Population rate, Increase ↑ in Vegetarian rate. Decrease o Their happy o Provide and meal selling rate will decrease. develop new ingredient to attract new groups of customers.

Growing and spreading internationally √ Convenient √ Cheap √ Clean They have bring a lot of negative impact to society!

Negative Impacts 1. Wide variety of health risks 2. Exploiting workers 3. Damage the environment

1. Wide variety of health risks promote their food as the ‘nutritious’ food but contain high: • fat • Sugar and salt  easily threatening illnesses such as obesity and heart disease  2. Exploiting workers   Did not pay their workers the overtime rate Employees only few job options and this causes the workers to accept the exploitation

Damage The Environment 3. Damage the Environment  To increase the usage of the farmland  Take advantage that cause: • damaging forest • air pollution

McDonald’s is a successful organization within the food service industry. What leading them to be a successful organization? • Strategies • Quality • Management Process • Planning, P • Organizing, O • Leading, L • Controlling, C Stable their global market position in this few decades.

McDonald’s has been successful because of the value the company gives for its customers, and they know to adapt in the culture needs in different country.

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