Main Products and Services
McDonalds produces products that can be separated in several groups. These products are French fries, Desserts, salads, soft drinks, pork products, chicken and hamburger. Other products include salads, which are new in the business. These salads were included in the menu in 1985. McDonalds puts a lot of effort in achievement and not losing its clients. Desserts are the last groups of products in McDonalds. These include such products like freshly baked cookies, McDonald cookies, ice cream, yoghurt, Cinnamon melts and Pies. The supply of these products depends on the different regions across the globe.
Main Customers
Since the global crises, the company has been recovering quite fast and the growth of sales has increased. The company surprised most people when it had a 6 percent growth globally while some stores had growths of 3.8 percent. Europe holds approximately 40 percent of the totals sales of the company. The company also has a growing rate of consumers in Asian countries like China. McDonalds plans to launch approximately 2000 restaurants across the globe in 2013. The only competitors for McDonalds will be Yum Brands, which has 3700 restaurants across the globe. In the United States, McDonalds was successful in introducing new breakfast menus. The growth of products prices also influenced the company. This is evident in the coffee sector. Starbuck is a significant competitor to McDonalds. The company found it impossible to resist Starbucks’ price increase for coffee. The company selects Europe because the market is wide and there are potential clients who can afford its products.
Order Qualifiers and Order Winners
Since 2003, the strategy that McDonald’s has applied is the “plan to win” strategy. This plans stills exists, and the company had to have 32 months of positive sales for a period of 25 years. The company has had a development that is more than the average development of the industry. To understand the strategy of McDonalds there has to be an understanding of the “plan to win”. This plan includes the company’s 5P; Promotion, Price, Product, Place and People. The five P’s are the company’s methods of improving everything that it can do from maintenance of clients, refurbishing old shops, creating the right mood for clients and designing the right menus for its clients.
The main efforts of McDonald are to maintain a unique power and development of the costs through experience to maintain its shares in the market. It established a new line called the MacAfee . This line has of business caters for clients who prefer things other than soft drinks or coffee. By developing this strategy, the company tries to capture the market share in the industries of coffee that is mainly supplied by Starbucks. McDonalds’ marketing focuses on two things: Coping with obesity effects and production of healthier products and increasing awareness of its brand to develop market shares.
McDonalds’ Problems
Advertising Problems
The company spends more than $2 billion each year on advertisements. The company uses television adverts, collectible toys, and schemes for promotion in schools to target their markets, which are children. A number of parents have objected the strategy that is used on their children. McDonalds’s argues that their advertisement is just like that of any other company because they follow all the advertisement systems. However, some people still say that is their adverts are meant to exploit children.
Animals Welfare Groups
Animal welfare campaigners and vegetarians do not always concentrate on McDonald’s. This company is the world’s largest beef consumer because it slaughters thousands of cows annually. In Europe, the company slaughters more than 500, 000 chickens per week. All these animals suffer severely because of the company’s interest in making profits. However, the company still defends itself saying that its business is within the law and in case of a problem; it is the government’s responsibility. The company also argues that it is concerned with the welfare of animals.
Capitalism
No one mentions that the high-profile burger chain or the entire food chain causes the enormous and the developing social and environmental crisis. This company is arrogant and selfish company that values only its profits while it destroys the environment. Even if the company were to shut down, another company would emerge to do the same damage as McDonalds Company.
Employment
The company has been successful on a global standard by supplying fast foods with the intent of making profits. The company employs more than one million people who are mostly the youth. Some people argue that it is an excellent employer because without it there would be one million unemployed people, mostly being the youth . Other people argue that it pays its employees low wages and this makes it destroys jobs. Employees often complain that the company does not give them any rights and make them work for long hours under poor safety situations and low payment.
Literature Review on Lean Management
, through their article explain how fierce competition and increased consumer demand for quality has changed McDonald’s organization. The article analyses how recent recession has increased the need to reduce costs of production. The corporation has decided to counter the effects of recession by adopting a lean management. The company does so in a bid to remain relevant in the restaurant industry. The authors note that the company faced financial challenges at the onset of the recession and had to offset it by reducing its costs on management.
, note a management problem in the lean management adopted by the company. McDonald employs people of three categories that include franchise owners, corporate staff and restaurant workers. Before the company employs these people, the people must pass through interviews, training and education for legibility. The company has a training program that trains the new recruits. Training starts by orientation to the company. The new recruits must know the stations of the restaurants. They are trained on the dress code, how to conduct themselves, skills for performing the job, standards of operating and how to work as a team. The Human resource department also educates the new recruits, who are mostly the youth.
On the other hand, , narrate the social responsibilities that McDonalds Company has towards its clients, staff and the society. In the face of recession, the article explains the adverse effects its decision to take on lean management would have on its stakeholders. Whereas the company stands a chance to reduce its production costs and maintain product costs to its consumers, there are adverse effects on staff and management who may be victims of lean management. The article illustrates the effects of lean management on staff morale at McDonalds. It shows the possible effects of the same efforts on the consumers in the end.
Likewise, explain the mission of McDonalds Company in relation to its lean management strategy. The mission of the company is to be the customer’s favourite place for eating. It has aligned its global operations across the world to cater for the basics of customer experiences, which are price, promotion, place, products and people. The company is committed to improving its operations and enhancing the experience of the customers. It also strives to become the best employer for all the communities across the globe. It also strives to offer the best services to all its customers. Its vision is to be the best restaurant in the world that offers quick service to its clients. It strives to offer outstanding cleanliness, quality service and high food value for all its clients. The values of the company are its corporate responsibility. They indicate values in various activities. The company collaborates with independent franchises and suppliers to attain a sustainable future for both the company and the communities that they operate. The company’s strong values helped it become what it is today and how it functions. One of the company’s values is to satisfy the customers. The company exists because of its customers. The company serves quality food because it appreciates its customers. It strives to attain an environment that is welcoming for all its customers. The company believes that the core of its success is working with an experienced team.
, point out he service-drive for McDonalds Company to counter the effects of lean management. Since the global crises, the company has been recovering quite fast and the growth of sales has increased. The company surprised most people when it had a 6 percent growth globally while some stores had growths of 3.8 percent. Europe holds approximately 40 percent of the totals sales of the company. The company also has a growing rate of consumers in Asian countries like China. McDonalds plans to launch approximately 2000 restaurants across the globe in 2013. The only competitors for McDonalds will be Yum Brands, which has 3700 restaurants across the globe. In the United States, McDonalds was successful in introducing new breakfast menus. The growth of products prices also influenced the company. This is evident in the coffee sector. Starbuck is a significant competitor to McDonalds. The company found it impossible to resist Starbucks’ price increase for coffee. Additionally, the company selects Europe because the market is wide and there are potential clients who can afford its products.
, reiterates McDonald’s strategy on its lean management system. He notes that since 2003, the strategy that McDonald’s has applied is the “plan to win” strategy. This plans stills exists, and the company had to have 32 months of positive sales for a period of 25 years. The company has had a development that is more than the average development of the industry. To understand the strategy of McDonalds there has to be an understanding of the “plan to win”. This plan includes the 5Ps the company builds upon. These include are Promotion, Price, Product, Place and People. The five P’s are the company’s methods of improving everything that it can do from maintenance of clients, refurbishing old shops, creating the right mood for clients and designing the right menus for its clients. Additionally, notes that the company has several logistical approaches in its lean management strategy. McDonald focuses on the end user who is the customer. The company ensures that it puts the interests of its customers first because the customer is the main reason for the existence of the company. The company also recognizes that the delivery of satisfaction to the clients will be as comparable to its weakest link. It also ensures that each link or department recognizes. This means that McDonalds has standards that very department must follow to the latter. It has highly skilled management that ensures this takes place within all the departments. The management monitors the company’s operations keenly all the times. The managerial team also allows for flexibility in the system to enhance growth.
, analyses how the company has successfully managed to penetrate new markets with its lean management strategy. McDonalds adapts to international markets by remodelling their retail spaces and changing its products to satisfy the needs of its clients depending on the region of location. McDonalds must adapt to every country that they launch their products. This means that consumers in other countries will have a variety of products that they can select. McDonalds has to cater for the foreign and local tastes while it concentrates on competency for fast foods. For instance, in Europe, McDonalds has developed a strategy of avoiding fast foods. Since the company competes with Starbucks, it turns its restaurant more comfortable while it supplies healthier foods . The company also offers rental iPods and Wi-Fi. This means that Europe does not expect any American food from the company.
, explains at how McDonald has applied lean management to deepen its roots in the world. He reiterates the main efforts of the company to capture global markets. In addition, the article tells of how lean management of the company has affected several of its branches globally. The main efforts of McDonald are to maintain a unique power and development of the costs through experience to maintain its shares in the market. It established a new line called the McCafe. This line has of business caters for clients who prefer things other than soft drinks or coffee. By developing this strategy, the company tries to capture the market share in the industries of coffee that is mainly supplied by Starbucks. McDonalds’ marketing focuses on two things: Coping with obesity effects and production of healthier products and increasing awareness of its brand to develop market shares.
While McDonald’s has a massive market, and a strong strategy, with a well-known brand, it also has some weaknesses. According to , McDonald has some challenges or threats just like any other company. However, these challenges are not visible by an individual, but only by an economist. McDonald’s faces a threatening saturation of the market that can bring challenges in advertising new products. There is also a competitive market that is growing fast. This makes the company to have income difficulties. Immense competition and income difficulties act as barriers to the increase in production. McDonald is a not an aggressively innovative company. The company mainly has weaknesses because of the immense competition from other fast food companies. This industry is also not respected by several consumers because of the increasing diseases that are caused by consumption of fast foods. Additionally, McDonald’s foods also seem fattier than tasty.
, explain the general overview of McDonald’s management system. , explains the history of the company since its inception to the current day with a view of understanding the changes in its management structures. Patrick McDonald founded McDonalds Company in 1937. During this period, the prices of products were quite cheap. In 1940, McDonalds sons, Richard and Maurice changed its location to California. McDonald’s Company produces chicken, pork, hamburgers, French fries, desserts and salads and is one of the world’s leading fast food suppliers. It has over 32,000 restaurants across the globe. The company has franchises in 119 countries worldwide. It develops by franchising to serve products of international standards and quality products for all its customers. The restaurants operate independently and are controlled by businesspersons. It has a vision of being the best independent supplier of fast foods in the world. The company has a strategy of “plan to win”. This strategy incorporates the five “P’s” that include promotion, price, product, place and people. The company has strengths and weaknesses. The company ought to eliminate some weaknesses and focus on its strengths to follow its strategies. If this company sets operation in my country, it would enhance competition in my region because there are few restaurants in my region that offer quality services. The company would also introduce new foods to my region.
Project Plan for Changes in McDonalds
Purpose, Objectives and Scope of the project
This project seeks to provide solutions to McDonalds’ problems associated with its lean management strategy. From the literature review, it is evident that the company has logistical and managerial constraints. In addition, parents have complained of advertisements that exploit their children. McDonald’s faces a threatening saturation of the market that can bring challenges in advertising new products. There is also a competitive market that is growing fast. This makes the company to have income difficulties. Immense competition and income difficulties act as barriers to the increase in production. McDonald is a not an aggressively innovative company
Franchising has been the key to the success of McDonalds Company. It is located in over 119 countries across the globe, and it succeeds by franchising. The company has highly qualified managers. The company employs people who have experience in business or those who have lead business departments in their past work. The top executives in McDonalds work as managers who manage the staff of the restaurant. The managers use different levels of supervisors to direct the workers. Workers have to be familiar with their duties.
The company develops incomes that are above market development, and this means that it increases its shares in the market. The company’s plan of winning has augmented edge by more than forty percent. This means that the company still has the right strategies and forces to outdo any challenges of obesity.
Assumptions
Application of this project management plan assumes that all prevailing factors of the company and its competitors remain constant. There should be no change in advertising modes, management systems or human resource management of its competitors. This is the only way the company stands to benefit from the project plan. There will be positive changes in the event even in the event of its competitors upgrading their systems. However, the change may not be as much as it would be without the competitors’ advancement.
Deliverables
In addition to this project management plan, the planning committee will hand in evidences to the claims of logistical problems, advertising quandary and competition threats. The following are the problems that the plan will seek to solve in 6 months: advertising issues, solving the strife between the company and animal right activists, solving employment rows with trade unions and government agencies, creating an understanding on the claims of capitalism, and resolving logistical issues in its lean management approach
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