Wednesday, September 7, 2016

Case analysis On MacDonald’s Case 2 / MBA Capstone



History of McDonald’s
They have amazing story of their own organization relative with the organizational learning they have really gained insight from their history which later on made a lot of contribution for what now is MacDonald’s I would like to elaborate their story with two divisions and one of them Is early history and another after 90’s history.
Early History
When the MacDonald’s family back in 1930s around 90 years back they moved from Manchester to Hollywood where two brothers one is Richard and another is Maurice McDonalds started working .their fathers had a “Air drome” McDonalds brothers realized that the most of their selling was for hamburgers, they closed down with a careful investigation so that they can open with a new starting and in a bigger way they started with the simple menu of hamburgers, cheeseburgers, French fries, shakes and more So they renamed their restaurant to the new name with McDonalds.
            After some time they realized one new thing that there was the time they need a new building for their restaurant so that they could improve more and make their goals achieve. The main two goals for them were efficiency and more catching appearance. Architects were chosen for the new ambience and new improvements. So being very careful new improvements were made for the appearance and for the betterment of the McDonalds.
 Mid History of McDonalds
Company actual history was started from 1940 as two brothers Richard and Maurice opened up in the big phase of McDonalds as a restaurant with 20 menus. But the name was McDonald’s hamburger as hamburgers were the most famous on their restaurant. As their revenue started increasing and they almost reached to $3500000 till mid 50’s. by then Raymond Kroc shows his interest on developing franchise of McDonalds and shows keen interest on making a chain restaurant so he registered  McDonalds as a  incorporation. so, in 1955 he became founder of McDonalds and changed the name so the new name and he current name of McDonalds came from that long way..McDonalds Corporation. So, Kroc was the pioneer for the chain American restaurant for the fast food. Today McDonalds has become world’s largest fast food industry only in California they serve 47 million customers daily. It has managed to become one of the most prestigious values in all over the country. It got VRIO that is value, Ratio, and opportunities.
Recent history
So very recently from 2010, McDonalds has resigned its website and everything to a sleeker along with the certain changes made to the organization they also have introduced new way of approaching customers that is new advertising material to its website, they have unveil new pictures for restaurant ads, TV commercials, print advertising and online they all consists of real and 3d pictures of their products and services, by looking at that that looks so yummy and mouth watering. They also have make an announcement that the new the world biggest McDonalds restaurant will be built in London Olympics site.
Changes made to turn the company
As from their staring to till the current phase they have made so much of decisions that has taken the McDonalds to this new phase and I would like to show with the bullet points that how it the changes made to the company.
·         Firstly at their starting period it was more restaurants in a bus with different menus and lists of products.
·         When they did a analysis they found out that the hamburgers were the most sold items so, the brothers decided to change the restaurant plans according to the need of the customers that they have introduced hamburgers, cheese burgers, apple pie, French fries with their core competencies product.
·         When the restaurant was a big hit and widely accepted by customers now Raymond Kroc entered with new vision of changing that into the fast food chain and he owned with making McDonalds incorporation and making franchise and food chain were developed all over the America. As a change of this it has now become world’s largest fast food chain with employee of 18000 and more.
·         Not changing the main product competencies of the McDonalds they have made other changed in marketing advertising and the environment care.
·         With the change in market when they entered into the Indian markets they introduced maharaja burger which made them a big hit in India and they could captivate that market with their good brand name.
McDonald’s customer centric plan and principals to win for the future are:
The idea of customer centric has been credited to Peter ducker as he was the one to see the customer centric view and need to adopt those for the organization.” since the customer is central management understands that the organization must have a complete understanding of the customer needs and wants they must continuously develop various ways of tracking changes to the need of the customer. So, in overall I understood that the product must always satisfy customers needs and wants through their offerings.
The seven principals of customer plan are as follows:
Drive sustained momentum
So diversifying the products is the main theme of this, for example including kids dress, toys and other interactive video for the kids as they are doing it to diversify certain portion of risk and hence to minimize loss in order to successfully run the business.
Generating broad based growth business
Broad based growth simply for the McDonalds means going global, as they have been reached to 115 countries that is the best example we could have in different countries in different places but with the same name standardization and quality. McDonalds have expanded themselves to all over the world; this was their one of the strategy in order to prosper their organization. It had created huge impact on the profitability. Going  beyond the borders as their strategy.
Emphasis on 5P’s
The five P’s that are people, place, product, price and promotion and making it all together so that the right mix would form for the McDonalds this I view as a focus strategy to the target customers. they have been creating products for the customers and as per customers needs and wants understanding customers which is also depth of customer centric plan. we can take an example of Indian market where beef is not allowed and McDonalds for the first time in their history they have introduced Maharaja burger which is a big success in Indian markets so, taking care of the customers through this 5 P’s.
Stay sharply focused on here and now
As we see the market is so dynamic and volatile the change is so fast and irrestable there are many organizations which were swept away by the market structure and the change in technology so being focused and try knowing how and now are the points to be focused for the organization.
Run day to day operations with maximum efficiency and productivity
Operational excellence is the final key term for this, excel on what you do so that there will be no room for the competitors and take away your pie. As to captivate the market share organization needs to operate with their maximum efficiency it includes utilizing all their pr, marketing, advertising human skills, experience and even expert solutions to maximize the growth.
The right people and process are intent on prospect
Right people means human skills ensuing that the right candidate for the right jobs are handled down in order to have good labor relations and maximum efficiency so that the future would be secured. Skilled human will give organization certain outputs that are not even used for today even for the future the result is always positive if the human skills are competent enough to fight with the situation.
Develop new innovations
Organization In order to be competent and excel the market they must always be innovative and show the new approaches to meet the customer’s requirement. They must be innovative and creativity in order to exploit the opportunities that is in the market. Organizations must took innovations as the first tool to reach the customers and if threat is seen they must back out as soon as possible in order to minimize loss. Adding new product lines and certain changes in the product would be the example for the McDonalds to develop new innovations.
As for McDonalds as they have always viewed their customer as a treasure and no matter what they have always pays value to the customers knowing customers current needs
Current product needs
Looking to the problems of the customers through holistic approach I mean what actually the customer is wanting and what do they want is the organization question for example one customer wanting mobile phone with wireless charger could be his need and how the mobile company will address his problems is the secondary question. So what are current product needs for the customer and what actually does the customer wants.
Future needs
What are their future needs and wants what could be the expectations of the customers if he she buys a mobile phone then what could be the future expectation are the future needs of the customer. So it’s all about forecasting the future needs and wants of the customers it is gained through market research.
Where the main aim of the customer centric is the organization where the learning and improvement are in the continuous format. They actually learn from their customers and respond in those manner resources, products and services are well utilized in order to gain the competitive advantage from them. It is well managed according to the strategies and goals of the organization and meeting them with the customers’ needs. So customer centric is the view from the customers need and the need is only the driving force for all the organization decision making. The main aim is to create the value of customer the value driven strategy. So until and unless any company gives value to their customers there won’t be any progress made to the organization and there won’t be profitable return.












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