Does Mcdonald hv anytg to offer to businesses.doc

8/19/2019 Does Mcdonald hv anytg to offer to businesses.doc

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Does Mcdonald’S Ofer A Model Which Other Businesses

Should Follow?

Does McDonald’s ofer a model which other businesses should ollow? At rst, most

people must have laughed at the idea o a chain o restaurants selling identical

products all over the country, but little did they know that the genius idea that they

had mocked would go on to revolutionise the business environment o the uture

McDonald’s is now the international market leader or ast ood, and has been ever

since its pioneering rst restaurant was launched in !an "ernardino, #aliornia in

$%&' (istorical "ackground )he original ounders o McDonald’s, and the ast*ood

concept, were brothers Dick and Mac McDonald +n $%&', they modied their drive*

in restaurant, creating the standard or the contemporary ast*ood restaurant o

modern times rom the introduction o a limited menu o -ust nine items, and by

ocusing on e.cient production and service, the brothers were able to halve theprice o their hamburgers to $/ cents 0ay 1roc, who, at this time was a /2*year*old

milkshake machine salesman, heard o the brothers’ generation o around 34/5,555

in annual revenues, and instantly became convinced that its concept could work in

other cities 1roc became the rst ranchisee appointed by the McDonald brothers,

and opened his rst restaurant the ollowing year in Des 6laines, +llinois +n $%7$,

1roc bought all the rights to the McDonald’s concept rom the McDonald brothers or

328 million 1roc was somewhat o an obsessive individual, 9ated with rules,

regulations, procedures, and obedience to his strict rules o discipline 1roc was

especially concerned with maintaining McDonald:s clean image, as well as that o

lie in general, and could regularly be seen picking up litter outside o his

restaurants in order to maintain the high standard o cleanliness upon which many

o his principles were based During the $%75s, McDonald’s invested a great deal o

capital into advertising and marketing campaigns +n $%72, the golden arches were

adopted as its corporate logo, with the introduction o 0onald McDonald as its

mascot arriving the ollowing year +n $%7/, McDonald’s #orporation went public,

and by $%77 was listed on the ;ew nited !tates were opened in #anada and 6uerto 0ico

$%7' saw the introduction o the company’s agship product, the "ig Mac

)hroughout the $%85’s, McDonald’s became involved with a lot o charity work,

establishing its own charity called the 0onald McDonald (ouse, providing temporary

housing or the amilies o seriously ill children 1roc had always believed in givingsomething back to the community in order to make the world a better place +n

$%84, McDonald’s added breakast items to its menu )he @uarter 6ounder was

introduced in the subseuent year, as sales reached 3$ billion $%8& saw the

opening o the rst restaurant in the >1, in Boolwich, !outh Condon +n $%8/,

McDonald’s introduced drive*thruE window service, which allowed motorists to

order and receive ood rom their cars ;owadays, this type o business accounts or


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around hal o all McDonald’s sales in the >nited !tates +n $%'4, #hicken

Mc;uggets were added to the menu, giving customers an alternative to bee

ounder 0ay 1roc died in $%'& 0onald McDonald #hildren’s #harities was ounded

in his remembrance to raise unds in support o child welare +n $%'%, McDonald:s

became listed on the rankurt, Munich, 6aris, and )okyo stock e9changes )hroughthe $%%5s smaller outlets known as =9pressE stores were opened in hospitals,

Foos, airports, and even on erries )hese outlets served a limited menu and lacked

some o the amenities o larger stores +n $%%7, McDonalds signed a $5*year

agreement with )he Balt Disney #ompany )his agreement has led to the

introduction o restaurants at Disney theme parks, and the promotion o Disney

lms through McDonald:s 6ackaging is the primary source o advertising, along with

the addition o limited edition products added to the menu =9amples include

6ocahontas and )he Cion 1ing ranchises )he McDonald’s #orporation is the largest

worldwide ranchised ood service organisation +n the $%75’s, 0ay 1roc ranchised

restaurants or the low sum o 3%/5, demanding $%G o sales As the success o 1roc and his organisation depended on the prosperity o the ranchisees, this

mutual interest was a key actor in McDonald’s success +n the >!A, '8G o

restaurants are owned and operated by ranchisees +n the >1, this gure lies at -ust

over 25G, with $$% o the /88 restaurants being ranchised +t is McDonald’s’

intention that by the end o this year, ranchised restaurants will represent over

45G o the total >1 business McDonald’s charge ranchisees a levy on sales )his

levy consists o a service ee o &G, and a rent charge o 8G #learly, an increase in

the number o ranchised restaurants leads to the direct efect o an increase in

McDonald’s’ revenues McDonald’s can also boast that it is the largest retail

property owner in the world @uality, !ervice, #leanliness McDonald’s use the nest

available products and careully developed ormulae )hey also encourage their

employees to check products that they prepare or serve McDonald’s believe that

cleanliness is a magnet drawing customers to their restaurantsE HMcDonald:s #rew

(andbook $%%7I, and thereore aim to ensure that their restaurants are spotless at

all times, both inside and out @uality and cleanliness, however, are wasted without

ast, courteous service McDonald’s rmly believe that a smile does as much to

bring a customer back as does the best ood in the world McDonald’s always

reminds its employees that the customer is the most important single actor in their

business )hey also train their employees to treat everyone, especially the

customer, in the way that they would want to be treated themselves Mystery

Diners, employed by the company, visit each store once a month checking thatoverall customer service reuirements are met McDonald’s believe that through

delivering great levels o @!#, H@uality, !ervice, #leanlinessI, $55G customer

satisaction can be achieved, enabling them to become the >1’s avourite uick

service restaurant )reatment o Borkorce McDonald’s state that they value people

most by beingJ 0eliable K +n doing what they say they’ll do !ae K +n operating

practices which protect their customers, employees, and reputation 0esponsible K


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+n making decisions which balance short, medium, and long term aspirations

#onsistent K +n their delivery o uality, service, cleanliness, and value )rustworthy

K +n their dealings with each other, their customers and their business partners )he

Ceader K +n advancing their position by being innovative, e9ible and goal

orientated #ustomer driven K +n listening and responding to their customer needs=thical K +n their internal and e9ternal policies and practices Bell 0un K )hrough

visionary leadership and ocused management A Lood =mployer K +n recognising

that their employees are the key to customer satisaction !ourceJ McDonald:s #rew

(andbook $%%7 )raining +t is the aim o McDonald’s to create a learning

environment, which acilitates the development o the highest level o skill among

all employees )heir training programmes have been designed to enable all

employees to achieve the company’s goals o $55G customer satisaction,

increased market share, and increased protability An ongoing programme o

training evaluation enables McDonald’s to keep training procedures up to date, and

relevant to the needs o the business McDonald’s believe that training is theoundation o their success, and that it is an ongoing process that belongs to all o

their employees )he uniorm is an e9ample o standardisation, as there is little

variation throughout the world Diferent colours are used in certain countries due to

religious circumstances 0ules and 0egulations About & times each year, each

restaurant He9cluding ranchisesI is checked rigorously by Area Managers, who

make sure the crew and managers are carrying out operations correctly, as well as

other general checks nce a year, a restaurant e9periences what is known as a Null

eld’, where area managers, other restaurant managers, and trainee managers

perorm a comprehensive check on the whole operation )he results o these

inspections are put into tables, and there is always erce competition between

stores with regard to scores received =mployee 0elations +t is McDonald’s policy to

actively promote rom within 6romotion is ofered to employees who show initiative

and a desire to advance Many o McDonald’s’ nest managers and senior company

personnel have been promoted rom crew )his way, skills are kept in the rm, with

training costs minimised McDonald’s believe that people are their most important

asset Coyalty and dedication are the oundation o every successul business, and

McDonald’s eel that they are especially ortunate in having so many highly skilled

and motivated people Coyalty points are awarded to employees who reach certain

service milestones )here is a catalogue called MaritF rom which employees can

redeem their accrued points in e9change or goods )his scheme gives employees

an incentive to remain loyal to McDonald’s, reducing training costs, and alsoimproving e.ciency #rew meetings are held about once a month to discuss policy,

procedures, products, and problems in the restaurant !maller sessions are also

held a ew times each year or the purpose o discussing ideas, suggestions and

problems )hese sessions give employees the opportunity to make their views

known to the company 6rivate medical care is provided to employees who have

worked in the company or 4 continuous years Cie Assurance is provided to


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employees who have completed one year’s continuous service )o try and improve

team*working skills and reduce the 75G staf turnover, McDonald’s organise regular

nights out and activities or its employees McDonald’s supports its employees

through university, giving grants o up to O$/55 per year depending on the type o

course +t also runs its own Punior "usiness Management 6rogramme or $'*2$ yearolds, with a starting salary o O$7,/55 per year +t also ofers its employees the

opportunity to become part o the corporation through buying McDirect shares

!tandardisation A key eature o the McDonald:s model is the manner in which all o

their operations are standardised 6roduction line techniues are implemented in

restaurants to achieve the ast preparation o uniorm uality products Bith a

limited menu and patented ormulas, the corporation ensures that products remain

homogenous over distance and time )he 9tures and ttings o restaurants are

largely identical throughout the world, with minor variations to account or cultural

diferences )he McDonalds model e9erts an enormous amount o control over its

ranchisees and customers, orming the undamental basis o the business=mployees respond to customers’ reuests with scripted uestions, ensuring the

ast delivery o service, and same e9perience time and time again #ontrol over

employees has been increased over the last decade due to technological

advancements, such as =6! H=lectronic 6oint o !aleI systems, which eliminates

the need or the operator to use arithmetic, or remember prices #ustomers are

subtly controlled by the uncomortable seating and standardised menus )his

reects the uantitative aspects o the uick*service ood industry, increasing the

number o customers by reducing idle time !tandardisation within the McDonalds

model is apparent in both the restaurants and their suppliers #ontractors are

reuired to share knowledge o ood processing techniues, allowing the corporation

to retain consistency and control o all aspects o the business )he +nuence o

McDonalds McDonald:s ob-ective is to become the >1’s avourite @uick !ervice

0estaurant )o do this, the company has set the ollowing ob-ectivesJ $ )o provide

total customer satisaction 2 )o increase market share 4 )o increase protability

=very day, McDonald’s supplies ood and drink to over 2' million people worldwide,

o which $2 million are "ritons Despite the limited choice 8G o Americans choose

to eat there every day )he Lolden Arches have become the best*known logo in the

world ;owadays, ew children ail to notice the amboyant red and yellow

rontages that are located in most shopping centres and high streets throughout the

country McDonald’s have realised that most people succumb to this convenient way

o keeping children happy McDonald’s target the young As their 8/5 pageperations Manual states, #hildren are oten the key decision*makers concerning

where a amily goes to eatE And, o McDonald’s chie 60 strategy, the clown 0onald

McDonald, it said, 0onald loves McDonald’s and McDonald’s ood And so do

children, because they love 0onald #hildren e9ert a phenomenal inuence when it

comes to restaurant selectionE McDonald’s advised their marketing and advertising

department to do everything they can to appeal to children’s love or 0onald and


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McDonald’s McDonald:s have very close relationships with their suppliers, even

making sure that their diferent suppliers communicate with one another regarding

procedures, and the introduction o new technology, in order or the McDonald:s

corporation to ma9imise its prots through e.cient operations nly the largest

corporations can e9ert this amount o power over its suppliers, and thereore mostcompanies could not adopt the McDonald:s model regarding its relationship with

suppliers #ulture ne o McDonald’s ma-or achievements was breaking through the

ood culture barrier Most countries are eager to preserve their own specic culinary

culture, however through successul global advertising, McDonald’s operates 2&,'55

outlets in $$/ countries =gypt, 1uwait, 0ussia, and #hina have all been developed

with the worlds largest restaurant situated in "ei-ing, which has over 855 seats and

$255 staf McDonalds has worked e9tensively on establishing ranchises on a

multinational scale +n both Moscow and !A, drive in dentists, which deal

with minor problems, are known as McDentists )his shows that McDonald’s has a

reputation or speed, though it also gives evidence that McDonald’s is thought o as

a basic, simple service, which admittedly isn’t too ar rom the truth )his is an

e9ample o the McDonaldisation o society )he success o McDonald’s can be

attributed to e.ciency, calculability, predictability, and control McDonald’s uses

optimum methods o production, and also has an efective body o rules and

regulations, which ensure highly e.cient work McDonald’s also states it provides

the best available way to get rom hungry to ullE HL 0itFer2555 )he

McDonaldiFation o !ociety 6g 47I #alculability can be measured by McDonald’s

emphasis on the uantitative aspects o the products sold As a culture, we tend to

believe that bigger is betterE HLeorge0itFer2555 )he McDonaldiFation o !ociety6g%I #ustomers are made to eel that they are getting a bargain, are thereore can

-ustiy spending their money on a particular item 6redictability is a undamental

aspect o McDonald’s’ success +t gives the public assurance that products and

services will be the same over time and in all vicinities McDonald’s have discovered

that people have come to preer a world o no surprises, and thereore try to make

the McDonald’s e9perience as similar as possible, in terms o service and ood


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)here are numerous advantages o adopting the McDonald’s model ;owadays,

there is a wider availability o goods and services, which have a greater sphere o

inuence +t is ar more convenient or the public to obtain products and services,

due to the increased number o outlets, and uniorm uality o goods and services

)he McDonald’s model has also brought about the availability to more economicalternatives to high priced customised goods )he introduction o uantication now

enables comparison to be made between goods and services, in terms o siFe )his

society has adopted a Nbigger is better’ attitude inally, this new model has helped

the establishment o eual treatment, regardless o race, class, or gender ;aturally,

there are disadvantages to this rational system employed by McDonald’s )he rst

oversight being that this type o system constantly generates irrational

conseuences )he environment is becoming afected by chemicals, which are

essential in order or the standardisation, uniorm shape, siFe and uality o the

products desired in this modern society Developing countries are also being put at

risk by the efects o deorestation and deoliation Disasters in !udan and =thiopiacan be attributed at least partly by the uncontrolled deorestation that is taking

place +t is also uite ironic that some less developed countries, where most children

are undernourished, are actually e9porting their staple crops as animal eed )his

eed is then used to atten cattle or the production o burgers or sale in developed

countries Millions o acres o the best armland in underprivileged, developing

countries are being used or developed countries benet McDonald:s has a direct

involvement in this economic imperialism, which keeps most indigenous people

deprived and hungry, while many whites become overweight )hirty*si9 out o orty

o the world’s poorest countries e9port ood to the >!A, the most prosperous

country McDonald:s has also been condemned concerning misuse o resources

McDonald:s !outh American #attle consume $5 times the amount o grain and soy

that humans do the $&/ million tons o grain and soy that is ed to livestock,

only 2$ million tons o meat and by*products are used )he waste is thereore $2&

million tons per year, which has a monetary value o 325 billion )his amount o

money could be better used to eed, clothe, and house the entire world population

or one year #onclusion )his essay has e9plained how the McDonald:s model has

become a characteristic o the contemporary international economy, and has

helped create thousands o -obs and improve many economies (owever, each

benet has brought with it a drawback 6eople in developing countries are starving,

purely so that our developed society can be provided with e9cess ood #hemicals,

necessary or the uniormity o its products, are destroying the environment andputting lives at risk due to increased nitrate levels McDonald:s have also

brainwashed a great number o people, including vulnerable young children, into

believing that the McDonald:s e9perience is pain*ree + eel that i other businesses

decide to ollow this model, the world could become too standardised, causing

losses in national identities and cultural diferences )he nest element o the

McDonald:s model lies in its rationality, and + strongly eel that this aspect should be


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considered by businesses looking or a model to ollow (owever, as stated earlier,

rational systems tend to generate irrational conseuences, and it is the impact on

society as a whole that a business must consider beore adopting a similar code o

practice + eel that i too many businesses ollow this model, it wouldn’t make the

world a better place, but simply a bigger breeding ground or e9ploitation, pollution,and concealment

Bibliography

!hook, # R !hook, 0 H$%%4I K ranchisingJ the business strategy that changed the

worldE Condon 6rentice (all 0itFer, L H$%%7I K )he McDonaldisation o !ocietyE

#aliorniaJ 6ineorge 6ress Daniels, P C H$%%4I K McDonaldisation revisited #ritical

essays on consumer cultureE BestportJ 6raeger 6ublishers McDonald:s #orporation

H$%%7I K #rew (andbookE Condon MicrosotS =ncartaS H$%%%I Microsot

#orporation wwwmcspotlightorg

Bord #ountJ 4$88

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Does Mcdonald hv anytg to offer to businesses.doc