Service Management: McDonald's Corporation - Essay Example

In addition to this, one cannot own or resell the service. A service cannot be transported or stocked for future use. Furthermore, a service consumer cannot return a service to a service provider or a service provider turn the service to the service consumer. The second characteristic of a service is that it is imperishable. This is in two regards: first, service processes, systems and resources are designated for a specific period of time. For instance, upon the departure of an airplane, an empty seat cannot be utilized.

Secondly, a service is irreversible upon being rendered. Apart from intangibility and imperishability, inseparability is another characteristic of service. The service provider is involved from the moment they show willingness and the capability to offer a particular service. The consumer too is involved automatically upon requesting a service. Simultaneity of a service means that a service is rendered and consumed at the same time. Service variability means that each service is exclusive. A service cannot be repeated nor done exactly the same way it was done before.

Variations come about as a result of difference in circumstances, conditions or resources available. Service operations involve the conversion of inputs into the desired output that meets the customer requirements. This is done through appropriate application of resources available. . The company is mainly based in the United States of America with over 33,000 local stores (Funding Universe, 2006: pp.1). McDonald’s carries out its operations in 119 countries worldwide. The food store serves more than 68 million people daily.

The company’s mission is to improve its social and environmental performance. Company History Mc Donald’s began in 1940 as a restaurant owned by two brothers, Richard and Maurice McDonald. In 1954, a seller of Multimixer milkshake machines discovered that the brothers were using some of his Multimixer in San Francisco. Out of curiosity, he decided to pay a visit to the restaurant. The menu included hamburgers, cheeseburgers, soft drinks, shakes and French fries. McDonald’s was designed as a self-serve operation with no table, jukebox or telephone.

This made McDonald’s a favorite hangout joint for families rather than teens. Mac and Dick ensured that the workers upheld high standards of efficiency. Kroc’s analysis of McDonald’s restaurant concluded that the restaurant was headed for great history. His suggestion was that the brothers should franchise their restaurant. He volunteered to set up the restaurants on their behalf. They gave him exclusive rights to set up restaurants. He set up the first restaurant in Des Plaines, Illinois in 1955.

The restaurant was incorporated as McDonald’s Corporation. Thereafter, Kroc and the McDonald brothers had a disagreement after the brothers franchised the company with Cook County, Illinois. Kroc established the restaurants in suburbs. The presence of gas stations and shops offered a greater demand. Kroc had preference for lots that offered U-shaped parking. The company experienced slow growth in the initial three years. The company