( Word to PDF Convert - Unregistered )
http://www.word-to-pdf-convert.com
McDonald's Organisation.
McDonald's Organisation is the world's largest chain of hamburger fast food restaurants, serving
around 68 million customers daily in 119 countries. It is a Multinational Organization that
operates globally and its Headquarters is in the United States, the company began in 1940 as a
barbecue restaurant operated by the eponymous Richard and Maurice McDonald; in 1948 they
reorganized their business as a hamburger stand using production line principles. Businessman
Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain
from the McDonald brothers and oversaw its worldwide growth.[5]
A McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself. The
corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as
sales in company-operated restaurants. McDonald's revenues grew 27 percent over the three years
ending in 2007 to $22.8 billion, and 9 percent growth in operating income to $3.9 billion.
McDonald's primarily sells hamburgers, cheeseburgers, chicken, French fries, breakfast items, soft
drinks, shakes and desserts. In response to changing consumer tastes, the company has expanded
its menu to include salads, wraps, smoothies and fruit.
History.
The business began in 1940, with a restaurant opened by brothers Richard and Maurice
McDonald in San Bernardino, California. Their introduction of the Speedee Service System in
1948 furthered the principles of the modern fast-food restaurant that the White Castle hamburger
chain had already put into practice more than two decades earlier. The original mascot of
McDonald's was a man with a chef's hat on top of a hamburger shaped head whose name was
Speedee. Speedee was eventually replaced with Ronald McDonald by 1967 when the company
first filed a U.S. trademark on a clown shaped man having puffed out costume legs.
McDonald's first filed for a U.S. trademark on the name McDonald's on May 4, 1961, with the
description Drive-In Restaurant Services, which continues to be renewed through the end of
December 2009. In the same year, on September 13, 1961, the company filed a logo trademark on
an overlapping, double arched "M" symbol. The overlapping double arched "M" symbol logo was
temporarily disfavored by September 6, 1962, when a trademark was filed for a single arch,
shaped over many of the early McDonald's restaurants in the early years. Although the Golden
Arches appeared in various forms, the present form as a letter "M" did not appear until November
18, 1968, when the company applied for a U.S. trademark.
The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc,
in Des Plaines, Illinois, on April 15, 1955, the ninth McDonald's restaurant overall. Kroc later
purchased the McDonald brothers' equity in the company and led its worldwide expansion, and
the company became listed on the public stock markets in 1965.Kroc was also noted for
aggressive business practices, compelling the McDonald brothers to leave the fast food industry.
The McDonald brothers and Kroc feuded over control of the business, as documented in both
Kroc's autobiography and in the McDonald brothers' autobiography. The site of the McDonald
( Word to PDF Convert - Unregistered )
http://www.word-to-pdf-convert.com
brothers' original restaurant is now a monument. With the expansion of McDonald's into many
international markets, the company has become a symbol of globalization and the spread of the
American way of life. Its prominence has also made it a frequent topic of public debates about
obesity, corporate ethics and consumer responsibility.
McDonalds Business Structure.
McDonalds is one of the largest food chain companies in the world and has much strength in its
company that allows it to build a functional structure. McDonalds has around 40 million
customers visiting the store each day. It has over 30.000 branches in 120 countries including
Canada, Brazil, Germany, France, Japan, UK, Australia, and the U.S. It derives 80% of its
revenues from these countries. One of their greatest strengths and missions is to create an image
in the minds of the people and introduce them to the fast food culture. The company functions
with great delivery speed, customer care and cleanliness.
McDonalds has a very recognizable corporate symbol and have been highly successful with their
advertisements and establishing the brand image and logo in the minds of millions of people.
Another strength McDonalds has is its product value. According to the article, customers know
what to expect when they walk into the store, great emphasis goes to human resources by
satisfying both the customer and the employees. McDonalds is very innovative with new product
lines, new trends and new tastes. Its diversity into their new business ventures is also considered
strength of McDonalds. Unfortunately, McDonalds faces issues that many companies face and
that help build a stronger business structure. The two main competitors of McDonalds are the
other food chains, Burger King and KFC. McDonalds marketing strategy is concerned with the
internal resources, external environment, and its basic competencies along with its share holders.
McDonalds faces competition as well as customers changing their trends and choices and this
impacts the company’s business structure. People get tired of the same brand especially ones they
are used to and ones that see everywhere. McDonalds is very over exposed. Another thing
McDonalds has to be careful with as a large chain is making sure they maintain their standards and
make sure they don’t lack in quality service or else it will affect the whole brand.
McDonalds has to be very careful with its competitors and other negative situations that will tear
the company down. They have to have a strong business structure and have to implement business
strategies to keep the company going. The article mentions sustainable competitive advantage
(SCA) and relates it to McDonalds and its difficulties the company comes upon. The article
defines SCA as the advantage a company has which is difficult or impossible for other companies
to possess or break through. It can either be the brand, dynamic customer care, cost structure or
its patent. The article lists three different aspects that help in SCA and they are:
1. The managerial and organizational process should share a good integration and coordination.
The organization should learn and bring about changes according to the need of the hour and
should always be flexible to changes in the environment such a customer trends, legal or
government restriction and developments in the technology. McDonalds is presently concentrating
( Word to PDF Convert - Unregistered )
http://www.word-to-pdf-convert.com
on this.
2. Technological, structural and financial assets of a company are an excellent market position
which helps in the SCA.
3. The vision or the dream with which the company was started. McDonalds was started out to
help people who has very little time to cook or was too busy to get into a proper restaurant. The
vision was to provide quick service, cheap products and quality satisfaction.
McDonalds started off as a success story but as like any company they have faced risks,
competitors and major setbacks. Its core competences and the SCA both internal and external
make the company strong and ranked among the top businesses.
Personally, I think McDonalds is a strong company that has faced many risks and setbacks but has
learned and grown to be even stronger. They live by their vision and always strive towards being
the best fast food chain. They use many of the marketing strategies to fix and help their issues.
McDonalds is going for a new marketing concept focusing on the firms existing potential
customers and seeks to earn profit through customer satisfaction with an integrated marketing
program.
Mission & Values.
McDonald's brand mission is to be our customers' favorite place and way to eat. Our worldwide
operations are aligned around a global strategy called the Plan to Win, which center on an
exceptional customer experience – People, Products, Place, Price and Promotion. We are
committed to continuously improving our operations and enhancing our customers' experience.
McDonald’s Values.
We place the customer experience at the core of all we do. Our customers are the reason for
our existence. We demonstrate our appreciation by providing them with high quality food and
superior service in a clean, welcoming environment, at a great value. Our goal is quality, service,
cleanliness and value for each and every customer, each and every time.
We are committed to our people. We provide opportunity, nurture talent, develop leaders and
reward achievement. We believe that a team of well-trained individuals with diverse backgrounds
and experiences, working together in an environment that fosters respect and drives high levels of
engagement, is essential to our continued success.
We believe in the McDonald’s System. McDonald’s business model, depicted by our
“three-legged stool” of owner/operators, suppliers, and company employees, is our foundation,
and balancing the interests of all three groups is key.
We operate our business ethically. Sound ethics is good business. At McDonald’s, we hold
ourselves and conduct our business to high standards of fairness, honesty, and integrity. We are
individually accountable and collectively responsible.
We give back to our communities. We take seriously the responsibilities that come with being a
( Word to PDF Convert - Unregistered )
http://www.word-to-pdf-convert.com
leader. We help our customers build better communities, support Ronald McDonald House
Charities, and leverage our size, scope and resources to help make the world a better place.
We grow our business profitably. McDonald’s is a publicly traded company. As such, we work
to provide sustained profitable growth for our shareholders. This requires a continuous focus on
our customers and the health of our system.
We strive continually to improve. We are a learning organization that aims to anticipate and
respond to changing customer, employee and system needs through constant evolution and
innovation.
McDonalds’ has a Matrix Organization in its senior top management and the restaurant level.
Senior Top Management Level.
Jim Skinner - Vice Chairman and Chief Executive Officer
Don Thompson-President and Chief Operating Officer
Mike Andres-Central Division President, McDonald's USA
Jose Armario-Corporate Executive Vice President Worldwide Supply Chain, Development, &
Franchising
Peter J. Bensen-Executive Vice President and Chief Financial Officer
Tim Fenton-President of Asia, Pacific, Middle East and Africa
Jan Fields-President, McDonald's USA, LLC
Richard Floersch-Executive Vice President, Chief Human Resources Officer
Doug Goare-President, McDonald's Europe
Jim Johannesen-Executive Vice President, Chief Operations Officer, McDonald's USA
Karen King-East Division President - McDonald's USA
Kevin Newell-Chief Brand Officer
Steve Plotkin-West Division President - McDonald’s USA
Gloria Santona-Executive Vice President, General Counsel and Secretary
Restuarant Level
-General Manager
-Restaurant Manager
-1st Assistant Manager
-2nd Assistant Manager
( Word to PDF Convert - Unregistered )
http://www.word-to-pdf-convert.com
-Shift Running Manager
-Floor Manager
-Staff Training Crew
-Crew Members.
Organization Policies.
• To recruit people who have a positive attitude towards customers, themselves and other
employees and who are capable of delivering the highest standards of quality, service and
cleanliness to our customers.
• To employ local people wherever possible.
•To ensure that employees and job applicants are selected, trained, promoted and treated on the
basis of their relevant skills, talents and performance and without reference to gender, marital
status, disability, race, colour, nationality, ethnic origin, religion or belief or sexual orientation.
• To provide a clean, safe, healthy and enjoyable working environment.
• To provide training and development for all employees to enable them to achieve the highest
level of skills possible.
• To provide career opportunities which allow employees to develop to their full potential.
• To provide challenging and rewarding work.
• To pay for performance.
• To communicate effectively with all employees via crew meetings, one-to-one discussions,
publications and regular employee opinion surveys.
McDonalds’ Marketing Mix Strategies.
People: Our well-trained people will proudly provide friendly, accurate and fast service that
delights our customers. We have a responsibility to maintain an inclusive work environment where
everyone feels valued and accepted, to provide training and other opportunities for personal and
professional growth, and to promote job satisfaction.
Product: We will serve food and beverages people prefer to enjoy regularly. We have a
responsibility to give our customers quality product choices and to partner with suppliers that
operate ethically and meet our high standards of social responsibility.
Place: Our restaurants and drive-thrust will be clean, relevant, and inviting to the customers of
today and tomorrow. We have a responsibility to manage our business in an environmentally
friendly way and to constantly seek ways to make a difference in the community.
Price: We will be the most efficient provider so that we can be the best value to the most people.
We have a responsibility to maintain our values and high standards as we provide food that is
affordable to a wide range of customers.
Promotion: All of our marketing and communications will be relevant to our customers and build
our brand. We have a responsibility to maintain and build trust with all our stakeholders by
ensuring that our marketing and communications efforts are truthful and appropriate.
The right people were put in place to execute this plan. Everyone at McDonald’s was aligned and
focused on quality, service, value and experience. It was about flawless execution while keeping
( Word to PDF Convert - Unregistered )
http://www.word-to-pdf-convert.com
true to McDonald’s core values and in step with changing lifestyles.
Reference List
"Big Mac's Makeover: McDonald's Turned Around". The Economist. 2004-10-14.
en.wikipedia.org/wiki/McDonald's.
rocwiki.org/McDonald's.
www.mcdonalds.com.
www.mcdonaldsindia.com.
( Word to PDF Convert - Unregistered )
http://www.word-to-pdf-convert.com