Huge McDonalds Corporation - Essay Example

Management Report Table of Contents Introduction 3 Brief overview of Macdonald’s 3 Discussion 4 Competitive priorities of the organization and the operating strategies followed to reveal such priorities 4 Map out the key processes for taking an order, preparing food and delivering the order to the customer, by drawing both a flowchart and an emotion map 5 Map out the key processes for taking an order, preparing food and delivering the order to the customer, by drawing both a flowchart and an emotion map 6 What does quality mean for the organisation? How does it monitor and control for quality? 8 What is the supply chain for the organisation? What choices does it make about how to manage inventory? 10 Analysis 12 Findings 13 Conclusion 15 References 16 Introduction In this age, brand name and reputation acts as the cornerstone of an organization that helps to retain its competitive position and sustainability in the market. This is because; now a day; maximum extent of the individual is extremely conscious about their health and well-being and so they desire to consume eatables mainly from a branded outlet or organization. Due to which, the demand and consistency of the brand of Macdonald is enhancing at a rapid pace in this age, in spite of numerous other rival players such as Subway, KFC, Dominos Burger King and many others. Brief overview of Macdonald’s Macdonald’s corporation is recognised as one of the most popular fast food organization, operating successfully in more than 111countires and 24000 restaurants in the entire globe. It offers varied types of dishes with ingredients such as chicken, fish, eggs, sausage, French fries, salads and many others1. Due to which, it is highly preferred by the individual of all castes, culture, race and creed thereby making it leading brand in the segment of fast foods. As a result it comprises of almost 50 percent of the market share in this segment among other competitors. Keeping this fact in mind, numerous individual owners are trying to open the franchise of McDonald’s that proved effective for the organization in enhancing its number of outlets and stores. Due to which, its ranking and revenue has increased to $ 350, 000. Discussion Competitive priorities of the organization and the operating strategies followed to reveal such priorities In order to retain the sustainable competitive position of the organization or brand within the minds of the customers, the employees or owners of Macdonald’s desired to offer high-quality of food products at a lowest possible time. This is because; the aim of the brand of Macdonald’s is to offer fast, friendly and perfect services to its target customers in the entire globe. This might help the organization in enhancement of the brand image and reliability of the brand thereby amplifying the rate of satisfaction of the customers as well. Not only this, such a strategy is used by the organization in order to increase its range of customers and reduce its business threats to a significant extent2. However, in order to fulfil such a dream, all the franchise owners in the entire globe desired to offer more concentration over three basic factors namely speed, affordability and standardization. Among them, speed is recognised as the vital factor of the operational strategy of Macdonald’s in order to offer the ordered dish to the customer in lowest possible time. However, in order to do so, the management desires to offer standardized training processes to its employees in order to offer the products at actual time period so as to increase the satisfaction rate of the customers. Furthermore, due to the implementation of the above mentioned operational strategy, the organization of Macdonald’s increased its market share and stakeholders value among other competitors. It also enhanced its ranking and popularity as presented below: Source: 3 Therefore, it might be stated that the operating strategy of Macdonald’s proved extremely effective for the organization thereby amplifying its total sale and total profit margin as well. Map out the key processes for taking an order, preparing food and delivering the order to the customer, by drawing both a flowchart and an emotion map The organization of Macdonald’s always tried to offer the products to its customers at the lowest time period so as to increase the satisfaction rate of the customers. In addition to this, such type of strategy might also help the organization to retain its portfolio and market share in the market among many others as presented in the below figure. Source:4 Map out the key processes for taking an order, preparing food and delivering the order to the customer, by drawing both a flowchart and an emotion map However, in order to do so, the employees of the organization always tries to follow the below mentioned strategies presented in a flow chart. At the time of taking an order and preparing or delivering the order, the above mentioned factors are offered high concentration. After the customer reaches the outlet, the employees place the menu cards and try to analyse his or her preference of food by properly communicating with the customer. By doing so, the customers also attains the facility to know the current rebates or discounts offered by the organization over the food products. As a result of which, the customer might change his or her preference of food after hearing the discount or rebate rates. In this way, the order of the customers gets finalised and then the order is passed to the production department for preparation. Then the employees handling the preparation of the products utilises the advanced machines and utensils to complete the food in shortest possible time period5. So that the customer does not have to wait for a long time for the preparation of the order, then the order is presented to the customer. At the same time, payment is offered by the customers. In this entire process, speed and quality is offered highest concentration in order to retain customer reliability and dependency over the brand. Emotion Map From the above mentioned emotion map, it might be clearly revealed that the employees of the organization of Macdonald’s tries to offer high-ended services to its customers so as to improve the performance and reliability of the organization. However, due to the presentation of such type of services, the level of demand and profit margin of the organization might also get increased. This is extremely beneficial for the brand in this age of competitiveness as compared to other rival brands. Not only this by presenting such type of services, the employees try to maintain a good relationship with its customers so as to enhance the reputation and productivity of the organization in the market. This is because; it is through relationship marketing that the organization tries to attract a wide range of customers towards it thereby amplifying its position in the market among others. By doing so, not only the brand value but also the equity of the organization enhances as presented below: Source:6 Thus, it might be revealed that such type of emotional bonding is developed with the customer in order to reduce the switchover costs and business threats. What does quality mean for the organisation? How does it monitor and control for quality? In this age, sustainability is the most essential requirement of any organization. However, in order to attain it, maximum extent of the organization desire to offer highest quality of products to its customers at a competitive price. Similarly strategy is followed by the organization of Macdonald’s in order to increase its market share and reliability in the market among other contenders such as KFC, Dominos, Burger King and many others. However, Quality plays a vital role in the operational strategy of Macdonald’s as it helps to retain the existing customers and to attract a wide array of new customers towards it7. In order to make this desire successful, the organization of Macdonald’s, tried to maintain certain policies mentioned below: 100 percent pure ingredients- the dishes prepared with meat are prepared with 100 percent pure meat pieces. Similarly, in case of beef sandwiches, it offers 100 percent pure halal meat so as to reduce any sort of impurity. This is done, in order to offer the customers a safe and healthy diet, free from all sorts of impurities or diseases. Highest quality of baked buns- the organization of Macdonald’s also tries to offer the best quality of baked buns to its customers in order to retain their satisfaction over the brand. Crunch and fresh vegetables- the vegetables used within the dishes of Macdonald’s are also extremely crunchy and fresh. So that they offer the best taste and deliciousness to the customers. By doing so, the customers become extremely pleased and delighted. Crispy and fried potatoes- the potatoes of the Macdonald’s are fried in such a way that it offers an extra-ordinary taste. However, in order to do so, the organization tries to select the best and trusted suppliers for that. Thus, from the above mentioned points, it might be clearly evaluated that, the organization also tries to offer best quality of food products to its customers. By doing so, the level of calories might also get reduced thereby declining the intensity of numerous health disorders such as obesity, stomach upset, loos motion and many others to a significant extent. In addition to this, in order to control and monitor the level of quality, the organization of Macdonald’s tries to use homogeneous products or ingredients. By doing so, a consistent quality of products is used in all the franchises of the organization of Macdonald’s in the entire globe so as to maintain uniformity. However, in order to do so, the organization tries to implement highly trained and skilled staffs within the franchises so as to maintain such uniqueness. Not only this, the organization of Macdonald’s also tries to select the best quality of suppliers in each and every part of the globe so as to attain the best quality of products. The prime idea behind such process is to offer the best quality of food products at the lowest possible price. So that the brand image and dependency of the organization might be maintained within the minds of the customers and the inner trust also gets enhanced as compared to other brands. Apart from this, the organization of Macdonald’s also utilises the similar type of machines for preparing the dishes in order to offer the same taste and flavour to its customers in different states and regions. Thus, from the above mentioned points, it might be clearly depicted that quality is controlled and maintained with the food products by utilising appropriate ingredients, suppliers and machines. What is the supply chain for the organisation? What choices does it make about how to manage inventory? The supply chain of the organization of Macdonald’s is extremely complex as it recruits all the direct and indirect suppliers through extreme concentration. So that, they might offer accurate type of ingredients in order to retain the quality of the dishes. Other than this as the organization of Macdonald’s offer higher attention over ethics, environment and sustainability, so it presents clear standards within their suppliers in an effective way. By maintaining proper ethics, the organization of Macdonald’s tries to certify proper health and safety of the employees as well as the customers consuming the products. This helps in enhancing the brand image and reputation of the organization of Macdonald’s in the market among others8. Along with this, the organization of Macdonald’s also offers high attention over the design of the products, distribution and production processes so that it presents lowest impact over the environment. By doing so, it tries to improve the sustainability and competitive advantage of the organization among many other rival players. Similarly, the organization of Macdonald’s also tries to offer affordable and healthy products to its customers so as to reduce the chances of numerous disorders that may hinder the growth of the consumers. Therefore, it might be clearly stated that the organization of Macdonald’s maintains a holistic approach so as to improve its reputation and image in the market among others. In addition, by presenting such types of strategy, it tries to retain its steady development in this age. This might help the organization of Macdonald’s to enhance its market share and demand among others. Source:9 However, in order to manage the inventory in an effective way, the organization of Macdonald’s utilises varied types of advanced technologies in their warehouses. It is done, in order to retain the ingredients in a fresh condition so as to offer qualitative products to its customers. Along with this, in order to maintain the stocks of the warehouses in an effective way, a specialised management system named Manhattan warehouse management system. So that, the stocks might be offered in an accurate way to the various outlets and franchises of the Macdonald’s and in order to reduce the routes of the vehicles, another noteworthy system named paragon is used. Thus, from the above mentioned points, it might be clearly evaluated that Macdonald’s manages its inventory and warehouses, very effectively so as to retain its portfolio in the market. Analysis After analysing and evaluating all the above mentioned information and facts in an effective way, it might be stated that an ethical and economic system is followed by Macdonald’s to enhance its level of sustainability. In addition, the organization of Macdonald’s also tries to offer highly qualitative products at an effective price in order to increase its range of customers and demand. In addition, by offering fresh ingredients within the dishes, the organization tries to enhance customer’s health and safety. As a result of which, the rate of numerous health disorders such as obesity might get reduced due to the presence of lower level of calories and fats as presented below. Products Calories/fats Beef Burger 254/13 Cheese Burger 299/13 Due to which, the products of the organization of Macdonald’s is highly preferred by the customers of varying caste, creed and culture. As a result of which, the profitability and brand image of the organization is enhancing at a rapid rate thereby amplifying its distinctiveness and uniqueness among others10. Therefore, due to these above mentioned reasons, it is recognised as one of the most reputed brands in the market. Other than this, as the organization of Macdonald’s also tries to implement the strategy of Manhattan warehouse management system in order to maintain it effectively. In addition, the organization of Macdonald’s also tries to offer higher concentration over speed, so as to offer the products to the customers in shortest possible time. This is done; in order to satisfy the inner morale and desires of the customers thereby amplifying their reliability and trust over the brand as compared to many other rival players. Moreover, due to the implementation of this operational strategy, it helps to attract a wide range of customers that amplifies its profitability and dependency. Furthermore, in order to retain the customers for a longer period of time, the organization of Macdonald’s tries to offer fresh ingredients in the dishes. By doing so, it might enhance its range of customer bases so as to increase its competitive position and sustainability to a significant extent as compared to many other rival players such as KFC, Burger King Etc. Findings In order to improve the popularity and dominance of the brand, the most important requirement is customer base. However, in order to do, it’s extremely essential to offer them high quality of products at an affordable price. So that it might be accessed by the customers of all income groups and life styles. The similar strategy is followed by the organization of Macdonald’s as mentioned above. By doing so, the organization of Macdonald’s attained a wide range of customers that enhanced its brand image and supremacy by almost 65 percent as compared to many other rival players, operating in the similar segment. Therefore, it might be stated that, the prime reason for the popularity of the organization of Macdonald’s is mainly due to the presentation of fresh products at a competitive price to its customers. Conclusion Conclusively, it might be stated that in order to improve the level of dominance and brand value in the market, retention of the customers is extremely essential. However, in order to do so, it’s extremely essential to offer high-quality products at an effective price. The similar strategy is used by the organization of Macdonald’s that amplified its market share and profit margin as compared to other rival players. Along with this, it also tried to offer high concentration over the calorie impact of the ingredients, so as to maintain the health of the customers in an effective way. It might also help the customers to reduce varied types of harmful disorders thereby amplifying their trust over the brand of Macdonald’s. In addition to this, the organization of Macdonald’s also tries to offer the products at the lowest possible time in order to satisfy the demands of the customers. This also proved extremely effective for the organization of Macdonald’s in this age of competitiveness as compared to many other rival brands. Thus, it might be revealed that the operational strategy of the organization of Macdonald’s proved extremely advantages for it that retained its image and position in this extreme economic downturn. References Forbes, “McDonalds Looks to Address its Millennial Problem, 2013. http://www.forbes.com/sites/brandindex/2013/04/03/mcdonalds-looks-to-address-its-millennial-problem/ (Accessed on 27th February, 2014). Macdonald’s, Quality assurance, 2014. http://www.mcdonalds.com.pk/page/quality-assurance (Accessed on 27th February, 2014). Macdonald’s, Our food, 2014. http://www.mcdonalds.com.pk/page/our-food (Accessed on 27th February, 2014). Macdonald’s, Nutriton, 2014. http://www.mcdonalds.com.pk/page/nutrition (Accessed on 27th February, 2014). SocialMediainfluence, “Topmost brands”, 2013. http://socialmediainfluence.com/2010/04/29/top-10-valued-brands-by-social-media-presence/ (Accessed on 27th February, 2014). Read More