3.1.2 Economical Factors Economic factors are important matter to business organisations. Though McDonald’s is a stable organization which survived in the U.S. economic crisis, internationally, it is affected by bad economic condition and currency fluctuations. For example, China’s slow economic growth this year affected McDonald’s earnings. This threatens McDonald’s growth in Asia because if the economy is bad, people normally are discouraged to spend more money for food as they will rather cook at home than eat outside. Thus, this will affect McDonald’s sales.
The diagram above shown the CPM of McDonald’s and its competitor, KFC and Burger King; indicates McDonald’s is in a strong strategic position than its competitor. Some of the reasons McDonald’s is successful and has high market is due to it strong brand name recognition, a strong customer loyalty, and its global expansion. Furthermore, McDonald’s is also invested a large sum of money in advertising and very well known toward it charity program through Ronald McDonald’s House. Nevertheless, there are areas in which the organization can improve. One of those areas is their public image.
McDonalds Operation Strategy McDonald‟s make use of an excellent operation strategy in order to gain a larger market share and increases value to the shareholders. The company specially focuses on the speed, standardization, quality, and affordability. McDonalds has moved ahead from the other fast food restaurants by focusing on these factors. McDonald‟s competes on three main bases, such as speed, affordability, and standardization, mainly because they want to make their customers happier. Through the huge market research and surveys, the organization discovered that their customers enjoy the speed as one of the restaurants‟ top priorities.
This is eye catching and allows the consumer to identify a McDonalds from far away. One of the positives about McDonalds is the quick service, friendly service, customer satisfaction and overall good food. McDonalds is also very transparent and will allow you to ask them any questions about the process used to make their meal. The physical presence of McDonalds is also attractive. This includes the Happy Meal’s toys, the ketchup packets and the packaging involved in the making of the whole
The diagram above shown the CPM of McDonald’s and its competitor, KFC and Burger King; indicates McDonald’s is in a strong strategic position than its competitor. Major reasons on why McDonald’s is successful and has high market relate to it strong brand name recognition, a strong customer loyalty, and its global expansion. Furthermore, McDonald’s is also invested a large amount of money in advertising and very well known toward it charity program through Ronald McDonald’s House. Nevertheless, there are areas in which the organization can improve. One of those areas is their public image.
So it is clear that McDonald's as a food supplier is a great deal more influenced by these political, lawful and clients security issues. Then again, life style specialists and consumers legal experts censure McDonald's for adding to wellbeing issues of heart attacks, diabetes, elevated cholesterol levels and weight. Nations with adaptable customer wellbeing laws are a wellspring of additional procurement for McDonald's. Contrasts in individual nation's administration approaches to a great degree impact McDonald's worldwide operation. Ideal and stable political circumstance, legislation, legal system and managed utilization of logo are only a basic piece of the business achievement.
McDonald’s has aligned its strategies in business, human resources, and staffing by putting people first, and making all people their most important asset. They offer competitive pay and benefits, in addition to rewards and recognition, to their employees. McDonald’s offers quality products and value to their customers from the workers they offer benefits to. Employees tend to reflect how they feel about their job to their services of the consumers. Thus, happy employees tend to lead to happy consumers.
As a company, we strive to set the standard for ethics, professionalism, competence, and innovation. c) Strategies; McDonald’s strategy is cost leadership. This strategy involves minimizing costs to offer products at low prices. As a low-cost provider, McDonald’s offers products that are cheaper compared to competitors. However, the company also uses broad differentiation as secondary strategy.
It is recognized as the world most recongnized logos. Their weakness includes the competition with the competitors in the fast food section and a high level of employee turnover at the stores. The opportunities they have, for examples, It can research ways to include healthy products in their menus across the world.It can upscale some of its restaurants locations to attract more customers. GLOBALIZATION OF MCDONALD(NEGATIVE AND POSITIVE) As a largest fast food organization with more than 31 thousands restaurants which ownes by company and some of it operated as franchise and affiliates, McDonald expands their business to international market. The spread of American way of life had influenced McDonald to enter the international market.
The business of McDonald is widely spread all over US, Europe, Asia / pacific, Middle East and Africa. The company believes that franchising is essential in supplying countless customer familiarity and it leads the company to profitability. The franchise continuous of over 57% of conventional franchisees, with approximate 24% foreign affiliates and over 18% are directly owned by the company. According to (Bodnick, 2009), McDonald’s most popular products all over the world includes; French Fries, Big Mac, Double Cheeseburger, McGriddles Breakfast Sandwich and Egg McMuffin etc. Basically this project aims to discuss the overview of McDonald’s human resource management system which includes unlike functions of HR, different employee safety rights, the job analysis, the hiring process of new employees, recruitment and employee testing, selection of the employee, performance appraisal and so on.