McDonalds

Introduction

BACKGROUND

McDonalds is begun in 1940s. Named McDonalds Bar-B-Q restaurant.

In Dec of 1948s, they had reopened as a self-service-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

Why McDonalds

so successful?

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

Planning

Cost Leadership Strategy Differentiation Strategy Focus Strategy

Cost Focus Strategy Product Variety Strategy Focus on customer type StrategyGeographical LocationAdvertisement

Competitive 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

Cost Leadership 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.

Differentiation Strategy

Good at adjusting its marketing to keep customers coming.

Promoting value meals for lunch and dinner

Cost Focus Strategy

McDonalds sells a variety of product in its product chain

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

Product Variety Strategy

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 imprintingMarkets the Happy Meal aggressively so

that this kids meal will implant a mindset to children.

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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.

Geographical Location

Organizing

♪ Work Specialization♪ Departmentalization♪ Authority and Responsibility♪ Span of Control♪ Centralization vs. Decentralization

♪ Formalization

Element In Organizational Design

♪ 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

Work Specialization

♪ Basis by which job are grouped together

♪ Five traditional departmental structures

♪ Matrix Departmentalizationhybrid form that combines two or

more forms of departmentalization

Departmentalization

♪ Region sales, forwarding problem to concerned authorities

♪ to keep command over the business activities

♪ customer cares, branch maintenance, maintain the healthy environment

Authority & Responsibility

♪ 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

Span Of Control

♪ Centralization-decision making takes place at upper levels of the organization

♪ Decentralization- lower level manager provide input or make decision

Centralization VS. Decentralization

♪ 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

Formalization

Leading

Motivate Employees Carry out business Motivation is a

process - person’s effort are energized, directed, & sustained toward attaining the goal.

The Important Of Leading

Controlling

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

Major challenges

face by McDonalds

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

Decrease ↓ in Population rate, Increase ↑ in Vegetarian rate.

o Their happy meal selling rate will decrease.

o Provide and develop new ingredient to attract new groups of customers.

Critique

Growing and spreading internationally

√ Convenient√ Cheap √ Clean

BUT, They have bring a lot of negative impact to society!

1. Wide variety of health risks

2. Exploiting workers

3. Damage the environment

Negative Impacts

promote their food as the ‘nutritious’ food but contain high:• fat• Sugar and salt

easily threatening illnesses such as obesity and heart disease

1. Wide variety of health risks

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 Environment3. Damage the Environment

To increase the usage of the farmland

Take advantage that cause:• damaging forest• air pollution

Conclusion

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.

Q&A Sectio

n

The EndPrepared By,

Goh Chun HongWoo Chia YuenWong Joon Ann

Yap Wei Sin