McDonalds Management Case Study

Published: 2021-09-13 10:55:10
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I am the new General Manager Of McDonald Corporation my proposal is as follow.
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.
McDonald's, 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 company's 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 5's 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 don't 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 don't 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.

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