McDonalds Management Case Study
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I am the new General Manager Of McDonald Corporation my proposal is as follow.
Introduction:
McDonald was found in 1955 by Ray Kroc, it have now 33,000 restaurant all over the world, despite so many competitor completing one another, MacDonald is still reminding as one of the market player in F&B industry.
McDonalds, the world leader in restaurant sales, posted steady earnings growth throughout the recession (see chart).
(See ref 8)
McDonald controls 18.3 percent of the 72 billion fast food market in the united states which is more than the next three chain combined, it also the largest purchaser of beef in united states. The chain serve up to many French fries that each year it purchases 5 percent of the entire U.S potato crop and 2 percent of all the chicken. McDonald is also account for 5 percent of all coca cola sold in United States in bottles and cans. McDonald has become public company in 1965. They have the most powerful manpower in the market with more then 500,000 people on the pay roll at any one time. The fundamental secret for McDonald success is the way it achieves uniformity and allegiance to an operating regimen without sacrificing the strength of individuals. To ensure great quality of food, McDonald treat their supplies as a part if their family and also to ensure employee in McDonald serve customer with great customer service and great food, they have implement a system which all employee have to go through a test before they can serve if any of the employee have failed any of the test, they are not allow to service the area where they have failed.
When we talk about what is McDonald strategy? Everyone knows that our strategy is through mass media and toy for kids. We know that the key for attracting adults is by appealing to kids. Advertising of family eating McDonald and promotion featured giveaways to children is our marketing strategy. McDonald always plan ahead than any other restaurant for us to keep competitive in the market, we have adopted the “Plan to Win” strategy in 2003. The main purpose of the strategy was to bring about improvement in the companys performance by building it around the five key drivers of customer experience – People, Product, Price, Place and Promotion (See ref 1) we call it the 5s P which is today many manager in McDonald is practicing it, we also identifying opportunities on basis of the four basic aspects of its mission statement -Quality, Service, Cleanliness and Value. The strategy was also based on what McDonalds considered as three essential components of success – Operational Excellence, Leadership Marketing and Innovation. (See ref 1) all employee member have to know all of the above 5 P, mission statement and the three essential components once they started working and manager have to also always reminding them.
But we cannot just rely on all this, the most importance strategy dont lies on the company, but the people, the strategy of bringing more sales is all about the people working in McDonald, we should implement more recognition to people who did well, if we observe enough in every restaurant, some manager just simply dont care. We should carefully select manager who is motivated and have leadership; we should give manager training on how importance is giving recognition to their people. By giving recognition people they will to be motivated and they will be more eager to serve customer with excitement. Other than that we can arrange a trip for manager to go other country and learn the different culture as a form of motivation. We need someone who can lead other people to the other stage, not manager that have only self-interest. The one who influence other to lead is a leader without limitation. (See ref 5) Michael E. Potter suggests that: Strategy is making a trade-off meaning we have to sacrifice to gain something (See ref 2), sacrifice a bad manager with bad leadership and find a great leader with a great leader ship. Below are the 5 different level of leadership. What we want is a manager who has level 5 leadership, we can train them.
(See ref 9)
In order to speed up the system and let our mamager to have more time to concentrade in their own stuff, Mcdonald have many differnent level in position, such as crew leader, 1st assistant manager, 2nd assistant manager and many more, is organize this way to let them to have more time to concentrate their stuff and it will create efficient. Below are the different level of management.
Business Manager
Business Consultant
Restaurateur
1st Assistant Manager
2nd Assistant Manager
Floor Manager
Crew Leader
Normal Staff
McDonald main concern is on controlling in their cost and quality in food. We should have a random check on our restaurant and also send maintenance to check restaurant regularly in order to make sure that we provide the best quality food, best service and best hygiene.
McDonald has now faces different challenges in the environment change such as global consumer preferences, globalized production, and management across cultures and changing demographics.
Global Environment Changes:
We are now facing such issues because we have to understand that customer changes their taste due to mass media, exposure to various type of fast food as now there is more and more competitor catching up with us.
We got to understand that fact that nowadays customer they are health conscious, unlike the past. Not only health conscious, but also choices that they can choose from various food just like what subway have. In order to catch up with our competitor, we have to open to our employee feedback and change. Because they are the only person who keep in contact with our customers. We can have a meeting in every quarter month and gather all restaurants manager and listen to their voice. Michael E. Potter suggests that we must nurture a few core competencies in race to stay ahead of river. (See ref 4.)
Globalized Production:
Supplies are getting more and more costly due to inflation, competitors are selling lower and lower and more promotion. How?
Although we treat our supplier like part of our family, that doesnt guarantee us that