Management Essays McDonalds Restaurants and Management Strategic Management and Operations

Management Essays McDonalds Restaurants and Management Strategic Management and OperationsMcDonalds Restaurants ManagementIntroductionStrategies atomic quash 18 authorised for all caperes, irregardless of the growths or services that they offer. Through strategic management and operations, companies atomic number 18 able to integrate saucy and active means of running their respective businesses. In turn, these strategies results to fake upd earnings or sales, stable market position and greater levels of customer loyalty. In the fast nutrition industry, certain business strategies are also being substantial and applied so as to achieve similar effects. In this report, the impact of near business strategies in actual businesses will be analyzed.The case turn over grantd was about McDonalds and how the company has evolved to be self-made in the British market. In addition, the case discussed the problems that McDonalds bemuse been encountered byout the years, spe cifically in legal injury of being considered as a company which offers unhealthy foods. Primarily, the main goal of this paper is to determine the business system of McDonald to sustain their competitive advantage in the global market.Overview of the troupeMcDonalds has a rich history that started out in 1954. The company was put to the spotlight by Ray Kroc. Throughout the years, marketing ideas aim poured through with(predicate) and befriended the company become sensation of the most renowned fast food cross outs globally. The trademark design for the fast food was carefully studied and it came with a keen clown character known as Ronald MacDonald (McDonald, 2008).The Big Mac and the Egg Muffin have been some of McDonalds most innovative ingatherings. In terms of marketing, the happy meal approach was also a creative as it entices children to eat at MacDonalds because of the toys they rouse get. Today, McDonalds is also on the profits bandwagon, providing instruction to people all over the world with a click of a mouse (McDonalds Corporation, 2008).McDonalds restaurants offer a substantially uniform menu, super acid in the usual fast foods. This includes hamburgers, cheeseburgers, chicken sandwiches, French french fries, salads, milk shakes, desserts, and ice cream sundaes. The companys top sellers, and can also be considered as innovative wizs, include the Big Mac, Quarter Pounder with Cheese, the Filet-O-Fish and Chicken McNuggets.Recently, the company has added a number of new nutritional products. This includes the Salads Plus products i.e. Garden Side Salad and the grill Chicken Flatbreads (McDonalds Corp. UK, 2008). Uniformity continues in McDonalds restaurants operating in the US, UK and certain outside(a) markets that are open during breakfast hours and offer a full or limited breakfast menu. Breakfast offerings include the Egg McMuffin and Sausage McMuffin with Egg sandwiches, hotcakes, biscuit and bagel sandwiches and muffins. Al so, McDonalds tests new products on an ongoing basis and sell a variety of other products during limited-time promotions.In the pecuniary 2003, McDonalds generated taxations of $17.1 one thousand million, an increase of 11% on the previous year. Operated Restaurant business unit posted revenues of $12.8 billion in fiscal 2003, compared with $11.5 billion in 2002 and $11 billion in 2000 and represents approximately 75% of the companys net sales. On the other hand, the Franchised and Affiliated Restaurants business unit posted revenues of $4.3 billion in fiscal 2003, compared with $3.9 billion in 2002 and represents approximately 25% of the companys net sales. The geographic are of Europe accounts for 37%, second to the 39% total revenue in the US.The customer target of McDonalds is usually children or young people. In fact, McDonalds already entered the childrens wear market. The new McKids products include footwear, videos, toys and routine clothes. Soon to be released worldwid e, it is an attempt to redefine McDonalds image partly due to heightened concerns about the rising levels of obesity amongst consumers, particularly in the US and the UK.Strategies of McDonaldMcDonalds is one of the famous food chain all throughout the world known by both the child and adult alike. It has increased it sales disdain some issues being raised against the company. To further increase sales on the business and improve its performance, business strategies are done by person in-charge. It is in this detail wherein the company would improve what they lack thus making prospective customers to keep on coming back and ask for more. It is said that McDonald has been able to use conglomerate strategies to uplift and sustain their competitive advantage in the market.Part of its business strategy is its plan to phase out its Super Size French fries and soft drinks as it tries to create a healthier image for itself. The Super Size option is to be phased out in an attempt to slim master its menu amid increasing concerns and issues being raised about obesity (Crouch, 2004). The company is also planning other menu changes, such(prenominal) as switching to a cinnamon roll and a sausage burrito as its core breakfast offering, while bagels would become an optional item. The company also has to stop selling its 14 ounce McDonalds Fruit n Yogurt Parfait and replaced it with a smaller-sized version of the product (Crouch, 2004). All these changes in the menu are part of its strategy to provide a range of choices that support a balanced lifestyle. The company has also added that the simplified core menu would be rolled out to its entire restaurant.Furthermore, victimization the national rollout of its made for you platform as the opportunity to re-evaluate its core shuffle attributes, the company has quietly formed a global brand strategy line of work force that is looking for long and hard at the essence of the Golden Arches (Howard, 1999). The group which will be led by new vp-brand strategy has been confluence for several months and is anticipated to put forward its findings in fresh consumer messages by mid-2000.The slow-build will allow stores to work through an expected corresponding curve for the new cooking system and avert major miscues as it attempts to deliver on the promise of hotter, fresher foods made to order (Howard, 1999). The group also is evaluating all elements of the brand from menu, service, and restaurant dcor to brand icons Ronald McDonald.Even though domestic sales have turned to healthy 5% level, the said company is rethinking how to sustain outgrowth in the face of both national and regional rivals.In the past, the companys marketing strategy has been criticized for being short-term foc utilize and there has been no over-arching umbrella strategy. With that, the charge is to bring continuity and consistency to the brand strategy piece.Strategies in other areas of the organization is also made like the three-whee led vehicle that is used to collect discarded cups and burger wrappings from the neighbourhood around the restaurant and the provision of good services to customer which naturally begins and commences with hiring the right kind of people (Livesey, 1999).Staffs are further to smile, be optimistic and treat customers particularly with respect, tell them what a person wants and follow up on the performance and reward their behavior. The restaurants washbasin is not spared. Issues are raised on the concerns about the said restaurant to be dirty and unhygienic. Customers want a clean area especially the privy to make they feel comfortable. Strategies like this should also be applied (Livesey, 1999).McDonalds has developed three strategies for sustaining the competitive advantage. These are customer convenience, customer value, and optimal operations. in concert with the digital strategies, it will help create new and bold ideas for the company. The stores are characterized by the oper ations team as miniature manufacturing facilities.With its goal in improving the suite of its manufacturing systems (inventory control, production planning, financial control, and point-of-sale order accounting entry) that supports the store, the team has developed musical modes of improving its overall operations.Aside from offering hamburgers and French fries, the current burn in McDonalds extends in serving as a family retreat, and as a community center for senior citizens. The means for the former one are its extensive indoor playgrounds and promotional toys, while the invitational plays of bingo are for the latter one. As this trend continues, an extension of more service-oriented technologies is needed. They can conduct studies and surveys to come apart know which among the various alternatives serves the companys objectives the best. These might include robots taking orders instead of humans, automated processes of food production, and the like.To achieve customer conve nience, one of their key initiatives is on the improvement in the speed of new stores opening. To answer this, the day in the life scenario was developed for site developers that draw the optimal toolset and the collaborative environment they would have with them as they scouted for locations.Rather than choosing individual tools, they should think about the tools on the horizon-geographical information systems, global positioning satellites, new media such as teleconferencing, and the expanding flow of information through public networks like the Internet. The adherence of the company to put WIFI technology in their stores for instance has also become one of the attractive forces for customers.For the achievement of customer value, focus should remain on real-time information flow that allows instant corrections of the menu and prices in response to customers preferences, competitive environment, and even the ingredients global commodities market. particular Situation StrategyMcDo nalds has been recognized as a highly flexible corporation. This company feature has been evidenced by its vast product differentiation. This is one of the companys major strategies in entering foreign markets. Teriyaki burgers in Japan, McPork Burgers and McTempeh in Indonesia, McSpaghetti in the Philippines and McLox Salmon sandwiches in Norway are some of the concrete examples of McDonalds ability to modify its products based on international tastes and preferences which they also done with their British market. While minor product changes are required for these countries, vast changes would have to be done for Britains case.Modifying the product or service is one example on how foreign firms are able to distribute their goods effectively in diverse markets. Another is by modifying the businesses marketing mix in order to fit global resources to local market conditions. In order to do this, multinational companies can transfer their developed global brands into a new market by m eans of changing their products formulation, prices or packaging. This in turn will increase the products appeal to both consumers and retailers.Doing this globalization strategy however, naturally requires considerable investment. Still, this will make multinational companies at par with the local companies. Another possible reparation strategy is by developing new resources that are market-specific. This strategy is done when the multinational company acquired some local brands, marketing them along with their global product brands (Arnold, 2003).As McDonalds typically serve beef burgers and non-spicy food items, the company would have to drastically change its menu for the Britain market to provide healthier menus for British people. For instance vegetable salads and chicken kebabs were also served to cater to the health conscious population. These are some of the many changes that McDonalds did in order to gain entry to the Britain market. In addition to product differentiation , regulation of the products prices is also a top priority.Effective promotions and ad were also incorporated into the companys international strategy. one of these tactics include the companys promotional offers of various items like Internet cards, concert tickets, CDs, T-shirts, caps and international trips . This promo had been done as the company collaborated with other organizations including Coca-cola, Sony, MTV, and widely distributed Motors. Painting contests for children were also conducted by McDonalds.Furthermore, the advertising strategies of McDonalds had been focused on building an image of family comfort. Rather than just being an ordinary fast food that serves tint meals, McDonalds intends to appeal to the market by building a fast food image where families can get together, enjoy and relax.Overall, the international strategy of McDonalds for Britain has been effective. In general, the focus of these strategies was the customers. Customers play a significant rol e to a business success or failure. Being an important business element, concourse the needs and preferences of the consumers is the utmost priority of almost all businesses. McDonalds has clearly shown the importance of this concept by adapting to the Britain culture, its people and their tastes. By reaching out to the British market, McDonalds was able to successfully establish itself in Britain.Despite the success of McDonalds in Britain, it is important to consider that the cultural background and preferences of its market continues to change. bare-ass markets in the country will eventually emerge. Considering the strict competition within the food service industry, McDonalds should then implement new strategies so as to reach out to the new markets. Perhaps, one of the most significant initial steps for the company is constant conduction of consumer studies.Strategic recommendationThrough this strategy, McDonalds can be updated with the latest market trends and identify new m arket segments. Changes in food preferences can be obtained through consumer research. Furthermore, this strategy can significantly help in increasing the companys market scope in the country.Another important strategy that McDonalds should do so as to prognosticate emerging markets in Britain is through enhanced advertising and promotions. This can be done through the implementation of the integrated marketing (IMC) approach. McDonalds employs a number of ways on how to promote its products in Britain.Aside from television commercials and printed advertisements, the company also uses the Internet and various promotional offers for advertising purposes. In order to hone the functions of each promotional media, McDonalds can use the IMC Strategy.IMC enables interactivity, which in turn allows the counter flow of information. Through IMC, companies in the food service industry, such as McDonalds, will be able to combine core strategies with other forms of communication to gain more marketing advantages and generate better business effects.IMC is the strategic coordination of sixfold communication voices. Its aim is to optimize the impact of persuasive communication on both consumer and non-consumer such as trade and professional audiences by coordinating such elements of the marketing mix as advertising, public relations, promotions, direct marketing, and package design (Moore and Thorson, 1996).While traditional means of marketing like advertising is one way in nature, the integrated marketing communication approach permits users to do several functions, including receiving and altering information or images, forward inquiries, respond to these questions, and the most important of all, make purchases (Moore and Thorson, 1996 Moore, 1993).One important aspect of this integrated approach is the resulting effect of a more enhanced means of brand building. In the case of internet marketing, integrated marketing communication will allow food service companies to maximize the use of the internet in building bands by incorporating other marketing means. The effect of which will lead to enhance product promotions and better net sales.The IMC approach has been beneficial to several companies as it helps in identifying the most useful and appropriate methods in communicating and establishing good customer relations, including good relationships with stakeholders like the employees, investors, suppliers interest groups and the public in general.During the 1990s, the introduction of the integrated marketing communications has been one of the most important developments in marketing, which continued on up to the present. From here on, the IMC approach is being applied by large and small companies alike, and has been well-known among companies marketing consumer goods and services, including business to business marketers. Using this strategy, McDonalds may maximize the use of mass media, direct and online marketing.In order to maximize the purpose of the IMC strategy, the official website of McDonalds may be enhanced and integrated as well. The internet have changed the ways companies create, design and implement their whole business and marketing plans as well as their programs for marketing communications.In order to promote their product lines, companies, from large multinational enterprises to small local companies, are developing certain web sites, complete with vital information that will help enhance customer relations or attract potential consumers.In terms of the promotional mix, the internet is a capable modal(a) of doing more than just advertise. Through this medium, McDonalds may offer other means of sales promotion through coupon, sweepstakes or contests online. Moreover, the internet may be used to perform, personal selling, public relations as direct marketing more efficiently and effectively.The official website of McDonalds Britain is actually well-made and attractive. It offers complete product details alon g with product pictures, which serves as an effective marketing tool. As Britains are very particular about the ingredients used for their food, the website also discusses the different ingredients included for the products it produces.Other services offered by the food company like parties are also included. In this website, the food items offered by the company are described as delicious, healthy, hygienic and refreshing. In addition, these food items are always served with a smile, implying the companys quality service (McDonalds Britain Official Website, 2005).With these major advertising elements, McDonalds could use the same elements for its commercials, print ads and other promotion channels. By doing so, the company can create a more distinct and definite brand that the Britain market can easily remember. In this case, this is where the IMC approach comes in. The coordination of different media channels can then help in making a more accomplished McDonald brand in Britain, resulting to higher market support, market growth and sales.In addition, McDonald also considered the use of cost leadership and product differentiation strategy which also allows the companies to enhance their products as well as develop new ones based on market demands and needs. By means of new product development, generation of ideas that are different and unique among competitors becomes possible.Thus, by means of new product development, industries are able to overcome cutthroat competition. Increasing the companies market coverage is yet another(prenominal) effect of developing new products for the customers like what McDonalds have done with their British branches.Creating something that is unique to the market place increases the possibility of catching the interest of other potential consumers. This in turn increases the market coverage or diversifies the target market of the company.For McDonalds, people are its most important asset (McDonald, 2008). This is because custo mer propitiation begins with the attitudes and abilities of employees and committed, effective workers are the best route to success.For these reasons, McDonalds strives to attract and hire the best, and to provide the best place to work. In fact, McDonalds is so active and successful in fresh emerging markets that other companies will sometimes use the golden arches as a valuable indicator of future growth markets.ConclusionMcDonalds has been successful in operating within the food service industry through efficient strategies and quality standards which enables them to gain competitive advantage. As evidenced by its international market growth, McDonalds has already been efficient in gaining entry even in the most challenging markets like Britain. Through its strong sense of quality service and customer satisfaction, McDonalds was able to offer its products to the Britain market. Products were modified to suit the British taste and preferences affordable prices were implemented effective promotions and offers were done.These are some of the strategies tough in the companys business strategy which allowed McDonalds to gain the Britain support. Despite these successes, the company should take into consideration the growing level of competitiveness in the food service industry.In Britain, several foreign fast food chains offering similar products are also being supported by the Britain consumers. Constant strategic change is then necessary to ensure that the company would sustain their competitive advantage.In conclusion, McDonalds has been successful because of the value the company gives for its customers. Hence, despite the controversial beginning of McDonalds in Britain, the company managed to adapt to its peoples cultural needs. Indeed, McDonalds is a learning organization, one that is willing to learn and open to change.ReferenceArnold, David (2003). Strategies for Entering and Developing International Markets. In Mirage of Global Markets, The How Glob alizing Companies Can Succeed as Markets Localize. Financial Time Prentice Hall, 2003.Crouch, A. (2004). Fast-Food Business Strategy. The naked Prawn BlogHoward, T. (1999). The Over-Arching Strategy-McDonalds Global Brand Strategy Task Force. Brandweek, November 8, 1999Livesey, S. (1999). McDonalds and the Environmental Defense Fund ACase Study of a Green Alliance. The Journal of Business Communication, Vol. 36McDonalds Corporation (2008). About McDonalds/McDonalds History (online). Available at http//www.mcdonalds.com/corp/about.html. Retrieve April 28, 2008McDonalds Corporation UK (2008). Eat Smart/Whats On/Good News (online). Available at http//www.mcdonalds.co.uk/ Retrieve April 28, 2008Moore, Jeri Esther Thorson (1996). Integrated Communication Synergy of Persuasive. Mahwah, NJ Lawrence Erlbaum Associates.Moore, Jeri (1993).. build brands across markets Cultural differences in brand relationships within the European Community. In D. Aaker A. Biel (Eds.), Brand equity and ad vertising. Hillsdale, NJ Lawrence Erlbaum Associates.