When McDonalds opened its doors for business, a fresh trend of junk food emerged in California, back 1954. Ray Kroc laid the building blocks of what's now one of the world's leading food retailers. McDonalds has more than 32, 000 restaurants in more than 100 countries serving more than 60 million people every day. Catering to such a large customer base and extending its roots far away was not a fairly easy task, strong values and effective management were the prerequisites necessary to make the business where it stands today.
Since its inception, McDonalds has been actively engaged in innovating and building strong customer relations. From a chain of few restaurants to franchisees and drive thru restaurants, McDonalds has lived up to its promise of maintain convenience for its customers. Highlighting the main element success areas, McDonalds label the 'experience' as the major determinant (Long, 2006). The core part of the business is QSC & V. QSC & V stand for quality, service, cleanliness and values. Focus on these factors with effective implementation through four management functions is exactly what constitutes the major ingredients for McDonald's success.
Functions of Management
Management is creative problem solving with the desired result of using organizational resources in a manner that accomplishes its mission and objectives. These email address details are obtained by four management functions to which we turn next in context with the McDonalds.
Planning is the ongoing process of developing the business' mission and objectives and identifying how they'll be accomplished. McDonalds shares its ideas through its well toned vision. This vision statement serves as the binding glue between your employees worldwide. They all try to serve their customers by giving them the best quality products at their convenience. This vision statement plainly indicates the future of the business. At McDonalds every employee knows where they are simply heading towards and what their individual contribution. The vision acts as the binding force gives the employees a feeling of purpose and commitment. The second aspect of planning is to truly have a clear defined mission. McDonald's mission statement is 'to be our customer's favorite place and way to eat (Dentch, 2009)'. This mission defines their business and their put in place the life span of its customers.
Planning at McDonalds identify the goals and objectives and develop their strategies and tasks to perform these goals. Planning at McDonalds is aligned with the changes in the external environment; it also faced many challenges like local taste of people, cultural values, and traditions of specific area where they would like to enter. The look process maintained the core values in any way franchisees, nevertheless the local demands were taken into account to enjoy their culture completely. Strategies were modified to match the needs of the region in which they entered. This is reflected in the businesses as well as the resource utilization.
One aspect that highlights McDonalds effective planning is how they manage their supply chains. Timely delivery and quality recycleables were the result of establishing good relations with the supply chain partners.
As due to this strategic planning, McDonalds went in to the business of any 24/7 restaurants. This was to match the demands of the all types of customers and also to boost the profits by extending the store hours. This is accompanied with introducing breakfast at McDonalds which further added to the menu. McDonalds was now offering all three meals of the day along and was thinking such as adding snacks to the menu. With evidently defined purpose of the business, embedded values that dictate the vision and focus on the role of planning, McDonalds can achieve sustainable profits.
Organizing is establishing the internal organizational structure of the organization. The focus is on division, coordination, and control of tasks and the flow of information within the business. It is in this function that managers distribute authority to job holders. in today's society it is important that management considers the employees and customers as the most crucial asset of the business. Creating a rigid structure undermines the imagination of the employees, thus the culture of empowerment and delegation is exactly what currently prevails in the competitive environment. McDonalds uses the collaborative management approach which connects all the global franchisees worldwide under the umbrella of single company name (Long, 2006). Management encourages the practice of working and assisting with each other's franchisees to provide the best to their customers by coping up with external challenges and representing a collaborative responsible culture. To be able to ensure constant quality, the standards are uniform for all those franchises.
Thus a centralized structure prevails in terms of training programs, supplies and operations. The formal structure at McDonalds divides the business in the departments and every individual knows his tasks well of which he must be specialized. However, these standard procedures do not bring about bureaucratic rigidity in the business; each employee is focused on achieve their goals. The organizational structure chosen supports the performance and is also aligned with the strategy of the restaurant of providing regular quality and great service experience.
Leadership at McDonalds, the CEO sometimes appears as the focal point from which the leadership emerges. Jim skinner, the existing CEO of McDonalds has been entertained with this title for days gone by thirty five years (Dentch, 2009). Skinner is reported to be a great leader with charismatic and transformational leader. He has said to revitalize the organization and introduced a fresh junk food business with his new vision.
The turnaround at McDonalds can be fully attributed to his creative and innovative leadership. He was one particular who introduced 'plan to win' initiative that emphasized the importance of store operations. Having a diverse background and expertise, he adapted ways of keep his employees motivated and committed. Under his leadership, he places great importance on customer satisfaction; customers come before his employees and restaurants. He promotes imagination but does not let his employees focus the principal motive of his organization. He believes to find the talent therefore he assigns different tasks to his employees and the best one is awarded and granted with more responsibility. Skinner places importance on values and ethics.
When McDonalds was blamed for obesity, he didn't hide behind passing on the blame; instead he took actions to positively handle the situation. Thus he is seen as a moral leader who makes McDonalds a much better place for both employees and customers.
Controlling at McDonalds is the amalgam of motivated employees and the clear policies which keep them right on the track. The line manager is in charge of keeping the employees working according to the standards. At a broader perspective, every franchise must follow quality standards and abide by the strict supplier policies (Long, 2006). That is to ensure that the brands name is not in peril by irresponsible activities at individual franchise level. McDonalds Corporation believes in training its employees at Hamburger University. This is to ensure that employees are obvious about the benchmark and exactly how they modify any shortcomings in their performance to meet these standards.
Flexible work schedule, entertaining culture, training and a healthy work life balance is what keeps the employees motivated. Though McDonalds is known for its tight control and bureaucratic structure, it in no way inhibits employee productivity or commitment to the business.
McDonalds is a worldwide junk food chain known because of its quality food and great customer experience. Through strict and clear policies and under the charismatic leadership of Skinner, McDonalds have had the opportunity to create a reputable image in the minds of its consumers. Actively giving an answer to the changing needs of its customers, it has been able to maintain steadily its brand essence along with rising profits. A perfect mixture of the four management functions namely, planning, organizing, leading and controlling has been the key driver behind McDonald's success.
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