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management principle that McDonalds using. Planning, Organizing, Leading, Controlling, what is their challenge.
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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.
Advertisement
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
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