The McDonalds Company Management - Case Study Example

KEY BUSINESS MANAGEMENT AREAS INTRODUCTION The management of any business is a very important aspect of the growth and development of the firm. This is due to the major functions that are vested on the management body of the business. Through the analysis of a leading international venture, The McDonalds, a better understanding on the management is built and developed. The first functionis planning. It is crucial for the management to well plan the undertakings of the business so as to ensure the presence of a flow in the systems and a streamline (Ananthan and Reddy, 2010). Another function is organizing the affairs of the business so as to ensure that there is order in the business setup. Order is very crucial as to the undertaking of the processes in a well-coordinated manner free of any delays or backlogs in the operations. Another important function of management is leading the business. By acting as a leader, he is able to set an example for the others to follow in the business. In this, he has an important part to play in the decision making process of the business. The leader of a place is a figurehead of a business and the management should well undertake their activities to create a figurehead that motivates the personnel to even better performance (Narayana and Sathyaprasad, 2010). The final function of the management is the control of the business administration process. In this, the management sets the standards that are important for the fellow business colleagues to abide and stick to them. Control is also essential in the creation of order in the business. FINANCIAL MANAGEMENT The aim and mission of every business organization is to make maximum profits. Financial management ensures that the daily undertakings of the business raises enough funds to cater for all the bills pay the workers and increase the capital of the business organization. It is mainly involved in the planning, controlling, organizing and directing all the financial activities in every business organization. Financial management ensures the right capital estimations in any contemporary organization. The financial manager achieves this by estimating the expected costs, profits and future organizational programs and policies that has been set by the organization (Smith, 2007). Immediately after the estimations have been made, the financial manager determines the capital composition. Capital composition entails the analysis of both short term and long-term debt equity in an organization. The source of funds is yet another determinant of an effective business organization. Funds in an organization can either be procured from shares, debentures, loans and bonds. The financial manager is obligated to choose the source of funds depending on the advantage and disadvantage of each source. Once the source of funds have been determined, it is now time to decide on the profitable business venture that will ensure investment safety and steady returns in terms of profit emanating from the venture. The McDonalds Company has a large number of operations. With this, the levels of sales, incomes, revenues and expenditures. Through this, the financial statements and records are more broad and expansive. The complexities in this case are also more (Dessler, 2000). Because of this, the need for an efficient financial management system. Any errors in the system would be very costly to rectify. An effective financial manager in an organization must also come up with an effective plan that will cater for the surplus funds either in the form of profits retained or the declaration of dividends from the business organization. He/she must also be keen in the management of cash that has been set apart for the payment of wages and salaries, organizational bills including water, internet, electricity and telephone bills, paying of the creditors, attending to liabilities, steady maintenance of stock and the continual purchase of the required raw materials that are used by the organization (Mondy and Gowan, 2005). Therefore, for an effective business organization, the financial management system that is run by the financial manager has to control all the finances in the business. HUMAN RESOURCE MANAGEMENT The McDonalds by the year 2013 had a staff number of 440,000. Such a high number calls for effective plans and strategies to be formulated in order to best control and manage them. With good policies, their welfare will be well addressed. Effective management of staff results to motivating to them and this is replicated in the quality of work that they undertake. Human resource management refers to the management of the personnel of a business. The human resource makes one of the most important parts of the organization (Jared, 2011). They are the people who provide the labor that is required for the running of the business. The main aim of the human resource management process is usually to improve the performance of the employees. This is mostly through putting in place of beneficial and motivating factors that will encourage even better results from them. The main roles of human resource management includes the hiring and recruitment of staff, training of staff, motivation of the staff, promotion and performance appraisal and other rewards and benefits which they are entitled to. A business that well caters for the needs and the issues that affect the employees through a well-defined human resource management process is more prone to better performance. It is through the human resource management that the image of the business is portrayed to the outside world. This hence understates the essence of well managing the human resource so as to have a better image in the outside world (Winner, 2004). The human resource is also a tool that can be used to sell the agenda of the business to the outside world. It is therefore important to give fair remunerations to the employees so as to give them enough motivation to work best. MARKETING MANAGEMENT Marketing refers to the process of seeking, finding, attracting and telling customers about the business. It is process of the development of new markets for the business. The new markets will be used for the business to expand its operations. Marketingis hence the process of passing information and knowledge about the business to the new customers (David,2005). It also involves the announcing of changes that occur to the business to the already existing customers of the business. Marketing involves the use of the different advertising techniques so as to attract the customers to the business. Increase in the number of customers for the business means that the revenues that will be received will increase. Increase in revenues and sales levels will on the other hand denote increased profitability for the business. The McDonalds company has put in place marketing practices that are aimed at increasing the levels of returns that are expected. This has been through the use of marketing strategies thatinclude among others social media marketing among other techniques. Some of the marketing techniques that can be used by the business include personal selling. This involves the use of sales people to market the business to the outside world. They are effective due to the fact that they can answer the questions that are posed by the potential customers. Another means that can be used in the use of leaflets and brochures. These can be pinned in the notice boards or given by hand to the customers. Another marketing means is the use of social media pages to advertise the content of the business to the target market in the social media networks. Marketing and its benefits are well evident. It is therefore essential to put in place effective efforts to see to it that the process is best managed so as to get the most returns possible from it (Finch, 2010). The management should hence strive to its level best to ensure that the marketing process has been well managed. A properly managed marketing system is characterized by increase in sales. There is also a trait of convenient and conclusive market niche identification and application. In this, new markets that are well dependable and that can be sources of revenue for the business are well established. This is the main reason why utmost closeness and professionalism should be ensured in the marketing management process due to the delicate nature that it has. PROJECT MANAGEMENT Project management is the process of the development of plans that are used in the operations of the business. Business plans are important in that the help give order and flow to the work that is being done and the projects that are being initiated by the business. Many projects that the business involves itself into, such as the marketing campaigns, achieve the best results if they are run on a well thought out and established project plan. The McDonalds Company has embarked on the establishment of a project management plan. Projects are present in the company due to the expansions that characterize it (Josphine, 2013). On its bid to being international, it undertakes massive projects that make it crucial for it to have a well-formulated project plan. Project management helps in ensuring that the delays in projects are eliminated. It also results to the reduction of the overall costs involved in the projects. Timeliness is essential projects due to the fact that delays are very costly to the business. It is hence the obligation of the management to see to it that a well-defined project management process has been put in place. The benefits it has as has been highlighted are many to the business and the returns are massive. CONCLUSION In conclusion, the management should strive to its level best and stick to the attributes that are vested on them. It should also try its best to see to it that the functions of management are fully addressed. They as were listed include, planning, organizing, leading and controlling. Though this, the goal attainment process will be an easy process. The management should also pay focus on the main areas of management. They are project management, human resource management, financial management and marketing process management. Through the ensuring of the quality of the business standards and paying of key attention to the main areas of management, business growth, development and expansion will be a possible undertaking. References Ananthan, B&, Reddy, N2010, Business management, Mumbai, Himalaya Publishing House. Narayana, R&, Sathyaprasad, M2010, Introduction to business management, Mumbai, Himalaya Publishing House. Smith, I2007, Principles of business management, London, Pearson. Dessler, G2000, Human resource management, Upper Saddle River, NJ, Prentice Hall. Mondy, R&, Gowan, M 2005, Human resource management, Upper Saddle River,NJ, Prentice Hall. Jared, M2011, Principles of business management, London, Rutledge. Winner, R2004, Marketing management, UpperSaddle River, NJ, Prentice Hall. David, R2005, Strategic management: concepts and cases, Upper Saddle River, NJ, Prentice Hall. Finch, B2010, Effective financial management, London, Kogan Page. Josphine, B2013, Business management, London, Rutledge. Read More