Management Theories Of Mcdonalds

It is known that most products go through a ‘product life cycle’, which sees all kinds of product will eventually go to the ‘decline’ stage. The marketing research discussed in the pervious part is vitally important to understand the changing wants and needs of customers. McDonald's constantly works to satisfy customers by developing new products to appeal them. For example, McDonald's introduced a variety of salads to appeal to the healthier conscious customers (Yahoo! Contributor Network, 2005), and recently, McDonald’s added a new product line named ‘great taste of America’ so as to attract young customers. (UK McDonald’s, 2012)

McDonald’s has been negatively publicized to be an unhealthy option. The food is perceived to be loaded with fat, sugar, salt and carb at a high rate. It has been disapproved by numerous people as being a promoter of unhealthy diet pattern especially for the young generation who are extremely obsessed with the ease of availability and cheaper rates. It has been blamed to cause weight gain among consumers. Due to these facts, the group of health conscious people avoid McDonald’s even after the healthier pickups introduction. (Kane, 2013)

Due to globalization and increased competition in the fast food industry, a very complex environment is created for McDonald’s. There are various internal and external environmental factors affecting the functions of McDonald’s corporation and demands for new innovations. The factors are as follows:

McDonald’s emphasizes cleanliness and food safety, in addition to quality and value service (QSC&V), through which it has succeeded in obtaining customer trust. The company also stresses ethical practices, dependability, and truthfulness in dealing with customers (McDonald’s, 2012, p. 1). Moreover, McDonald’s employs a coordinated marketing strategy that involves analyzing customer wants, creating products to satisfy his or her needs, setting the right prices and enhancing awareness of

The McDonalds Corporation has to be continually aware of its consumer behavior, their eating habits, as well as the situation and the trends in the market in order to understand if there is a need of any changes in their marketing strategy. Any important modifications in the marketing activities of the company have to be backed up by legitimate research. The introduction of new products, decisions on whether to invest more in certain channels of distribution, change of features of the product, advertising or pricing strategies have to be backed up by evidence based on the results of continuous marketing research. In the case of a big corporation like McDonald’s, the marketing research reports should answer lots of consumer

McDonald’s is one of the biggest companies in the world with restaurants in 119 countries and it has accomplished this extraordinary global presence through its effective management practices. McDonald’s uses a combination of Fredrik Taylor’s scientific management, Max Weber’s hierarchical structure, and Henri Fayol’s administrative principles to run its restaurants. McDonald’s has become a mechanistic organization by making its restaurant environment predictable. McDonald’s has developed set management structure and a predetermined set of procedures for running its restaurants. As a result, McDonald’s has come to resemble a machine where employees are like components of the big McDonald’s machine.

The McDonaldization theory defines the process of which the principles of the fast-food restaurant are coming to dominate more and more sectors of American society as well as the rest of the world (Ritzer 1). Within McDonaldization there are five different concepts embedded into this theory, which are efficiency, calculability, predictability, control and lastly irrationality of rationality. These concepts are not just used in fast-food restaurants, but are becoming more

The organisation I have chosen to examine from an operations management and decision making standpoint is McDonald’s, a worldwide chain of fast food restaurants, which are run either by a franchise, an affiliate or by the corporation itself. There are over 31,000 branches of McDonald’s worldwide1. It is estimated these restaurants serve a collective 47 million customers daily2. The restaurants mainly sell customers traditional fast food fare such as burgers, cheeseburgers, French fries, fizzy drinks and milkshakes, in addition to breakfast, dessert items and (in response to growing health concerns in the consumer marketplace) healthier items such as salads and

The company researched for the purpose of this paper is McDonald 's. This company 's history dates back since 1940 when Mac and Dick McDonald initially opened McDonald 's BBQ restaurant located in San Bernardino, CA. In 1948 they shut down the restaurant, just to reopen it as a self-service drive-in restaurant. According to About McDonald’s (2012), their menu included only 9 items, such as: milk, coffee, soft drinks, cheeseburger, hamburger, potato chips, and a slice of pie. Potato chips were then replaced by French fries. The history of this company is significantly market by Ray Kroc, who in 1954 at a visit to McDonald 's in San Bernardino decides to have a franchise of McDonald 's. A year later, in 1955, he opens his first restaurant in Des Plaines, Illinois. The franchising plan allowed growth and by 1965 there were more than 700 restaurants across United States. McDonald 's

McDonalds Corporation had developed to become the leading fast-food chain of restaurants since its inception to the extent that it serves more than 47 million customers across the globe on a daily basis. The corporation is the largest global food-service retailer since it has over 30,000 local restaurants that serve approximately 52 million people in over 100 countries every day. One of the critical factors attributed to the success of McDonald's global business is operations management, which focuses on the careful control of processes that are used in manufacturing and distribution of goods and/or services.

Since McDonald’s is the most well know fast food chain in the world with a market cap of 69.35 billion, brand recognition is their biggest strength. The secret of McDonald’s success is its willingness to innovate and maintain consistency in the operation of its many outlets. In recent years McDonald’s has introduced Premium Salads, Snack Wraps, fresh Apple Dippers in the United States, and Corn Cups in China. Also, McDonald 's products are priced so low that economic conditions are almost insignificant.

The main problem from McDonald's case, McDonald's Polishing the Golden Arches, is how to classify McDonald's strategy through Plan to Win into one of the five generic competitive strategies. Before we solve this main problem, we should determine the chief economic and business characteristics, the five forces analysis, and also the driving forces of the fast-food industry. After that we identify the strengths, weaknesses, opportunities, and threats by using SWOT analysis. Finally, we classify McDonald's strategy into one of the five generic competitive strategies.

The dietary changes as a result of the introduction of fast foods into new areas of the world and the subsequent health complications has put pressure on McDonalds to adopt several strategies to ensure that people conform, and buy their products in markets

What should a company do when its core product is considered “unhealthy” or even “harmful” by the public? Is it even possible for such a company survive and thrive; or will it have to shut down its business? McDonald’s fast food has for a long time been considered unhealthy by the public. In recent years, the health conscious trends have become increasingly popular. Moreover, many scientific studies and findings have surfaced and successfully confirmed that children’s increasing intake of fast food, which often contains high sodium content, sugars, saturated fats, and calories, for a long period of time would lead to childhood obesity. Moreover, obese children have a much higher risk of many health

3.1 Organization Structure of Company A3.2 Organization Structure of Company B3.3 Compare the Similarities and Differences of Organization Structure between Company A & B