Strengths: McDonald’s is the largest fast food restaurant chain, its sales are 8% higher than any other fast food restaurants. It serves around 68 million customers per day in over 119 countries across 35 000 stores. For this reason it has been given the name of the largest fast food market share in the world, which means the brand is well known this gives the company edge over other similar company’s like Burger King. The brand is valued at 40 million dollars which is huge compared to Burger King which are only valued at 28 million dollars. The brand has become so popular because McDonald’s clever use of Ronald McDonald Clown to promote their products which became such a hit with young children and young adults.
STRATEGIC MANAGEMENT CASE STUDY: MCDONALD’S CORPORATION 1. INTRODUCTION McDonald’s Corporation is the world’s leading fast food restaurant chain with more than 34,000 local restaurants serving approximately 69 million people in 119 countries each day. More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local franchisees. Its revenues come from the rent, royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants (McDonald’s, n.d.). The organization view themselves primarily as a franchisor and believe franchising is important to delivering great customer experiences and driving profitability.
The McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries. McDonald's India opened its first restaurant in 1996. Locally owned by Hard castle Restaurants Pvt Ltd (HPRL) and Connaught Plaza Restaurants Pvt Ltd (CPRL), there are over 310 McDonald's restaurants across the country, today. For McDonald’s every customer’s smile and happiness is of utmost importance. Its mission is to be the best company for all of its employees and deliver services with superior operational system for all customers.
McDonald’s corporation, which is a global fast food company will be the case studied in this essay. It has opened more than 200 restaurants in Hong Kong, which is a well-known fast food chain in Hong Kong. As a global fast food chain, it is inevitable that McDonald’s will encounter different conflicts of interest between shareholders and stakeholders, including philanthropy and food safety. It is vitally important for McDonald’s to cope with these problems as a global company, since a number of stakeholders and shareholders are involved in these issues. According to the official website of McDonald’s , philanthropic programs such as environmental protection, volunteer works and Ronald McDonald House Charities are launched to give back to
In the beginning, McDonalds was run by two brothers named Richard and Maurice McDonald who not only owned but ran a hamburger restaurant in San Bernardino ,California in the 1950’s. Ray Kroc saw the potential in McDonalds and had ideas to expand it globally so he founded the McDonalds Corporation in 1955. Today, there are more than 33,000 McDonald’s restaurants globally in 119 countries (REFERENCE/web). McDonald’s applies Scientific Management by Frederick Taylor in their management. Frederick Taylor proposed four principles in scientific management that is ‘‘ the replacement of rule of thumb methods for determining each element of a worker’s job with scientific determination, the scientific selection and training of workers, the cooperation
Marketing and Strategy McDonald’s adopts different marketing strategies for different marketing environment. In United States, McDonald’s emphasizes convenience and efficiency because the rhythm of life in America is fast. McDonald’s regards white-collar workers as main target customers. On the contrary, in China, McDonald’s makes emphasis on comfort and romantic. And its target customers are young people because young people in China occupy the main part of fast food consumption.
FW Taylor hoped to develop idea that would not let any more ‘Systematic Soldiering’ ,this was when workers deliberately decreasing the amount of output produced. FW Taylor’s Scientific management theory offered solution to these problems.Scientific management is theory that separates a specific job in tasks, which includes short repetitive work and knowledge about work is collected by management(Andrzej A.Huczynski , David A.Buchanan (2007 pg 411-437). It is Management process based on scientific way in order to maximise output or production Colin Combe(2014, pg
The scientific management theory is being considered as a continuous improvement even in the 21st century. The scientific management theory is used by managers to improve efficiency and productivity. Managers analyze the basic tasks that must be done, use time and motion studies to eliminate wasted motions, hire the best qualified workers for the job, train them in a proper manner and also paying wage incentives for the increased output. Scientific management encouraged managers to seek the “one best way” to complete a task. (Stoner, Yetton ,Craig, & Johnston, 1994).
2. Unhealthy food menu Although McDonald’s tries to introduce healthier choices in its menu, the menu is largely formed of unhealthy meals and drinks. Such menu offering prompts protests by organization that fight obesity and hence, decrease McDonald’s poularity. 3. Mac Job and high employee turnover Mac Job is a low paid and a low skilled job, which is often seen negatively by its employees.
In 2007, McDonald has updated to their suppliers with Supplier Quality Management System that including food safety. Defect: McDonald will do its best to deliver the desired food products to the customers` homes if it receives any complaints from them who fail to get what they want as management would also like to keep the companies from contaminated. Process Capability: McDonald has developed the drive-thru system to facilitate its customers without having come down from vehicle when they are purchasing. It also provides a home delivery service. Variation: McDonald has designed its menu as a variety of choices for their customers and McDonald will introduce specific menu to customers in each month.