Introduction and Background

The case of McDonald’s actually we are doing it today but in actual KFC, MC Donald’s ,PepsiCo, Coca-Cola, Wal-Mart, Tata, Reliance, Unlived NY stock exchange are some of the companies we have been through while undergoing our MBA. I personally feel closer with these companies may be because of them we have learnt a lot as our facilitator and our course books and our syllabus mentions many examples and all of them are mostly related to all those great companies. So, I am excited to write about one of the top companies that is McDonalds as my first case paper. I have learnt a lot from this company and I truly hope I could express most of my learning’s in this paper today.

McDonalds Corporation which is a billion worth company today was established with the long vision of growth and prosperity all around the globe as the leading fast food industry as they have today. It has its headquarter in Oak Brookville, U.S. going back to the history it has a interesting story which is even known as coffee case of their starting around 16 years back a n old lady ordered 49 cent cup of coffee from her window of car at a local McDonalds restaurant situated at Gibson boulevard south east. With her grandson where she accidently spills coffee which makes the third degree burns and the company was taken to the court which made them compensate 20 thousand dollars to lady. But at last the settlement was made secret with the party so until now nobody knows about the last hearing of the case. This is one of the example of their hurdles the more came with the death of the two more experienced CEO of McDonalds which led them face the poor strategic decisions and poorly marketing techniques.

As passing down the complications and hurdles on their lives the company moved themselves as the leader brand for the fast food brand with the current CEO don Thompson where till the year 2013 they already had 180000 employees all around the world. At the starting from bad strategy to improving and good strategy they have marketed themselves to be the best among many of the same services provider some of the competitors of them are Burger king, Subway, Wendy’s. The company improvised themselves with the new entrants of the very good CEO for the company James Thompson who not only change the plan and strategies but improvised the vision and mission of the organization they were good regarding operational excellence during that period of time. After the entrance of the new CEO Mr. Thompson their profit ratios were even changed and the strategy of operational excellence includes all the cleanliness, value creation of the customers. The commitment and the dedication of the motivated employees with skill man power has taken McDonalds to the new phase and the ethical business operation with CSR and continuous improvement system model led them be the best among the customers which led to the prosperity for the organization and growth was also tremendous.

After the mid 50 they have planned for the franc sing and they got their franchise to the India and they started their operation to India.

McDonalds past present and future marketing

Marketing for any organization is done to add and create value for the McDonalds they have use all 4Ps of marketing to be what they actually are today.

Product

It shows how the product is designed which satisfies the need of the customer. In the case of McDonalds how it will enhance the customer experience is also the point. McDonalds includes the design, packaging, looks and desirability of their product. It includes services which are intangible and tangible products are the scene for example the burger. It has its product depth and width, while operating to any place hey have first tried understanding their feelings, culture their norms and their beliefs which led them to choose what products with what looks and desirability to offer to the customers. For example they exclude beef burgers to India and pork burgers to Muslim continents. And India is the only country where they offer Vegetarian burgers.

Place

It includes distribution channels and outlets of the organization. As this is a very careful aspect because if the product is serves t the right place at the right time it will give the right result to the organization and if goes wrong the result will probably be bad to the organization.

For example McDonalds in U.S. their more than 50 % of outlets normally have 3 minutes distance. They have also added certain fun and enjoyment to the customers. children games like air hockey are the examples for it. They have a good ambience with good location and best value to the customers.

Pricing

This is also important mix of marketing as for the McDonalds it is the part which decides revenue and money for the organization. As for this the demand and supply should be match and also there should be clear understanding of customer’s income level and their target income level.”aap ke zamaane mey Baap key zammana ka daam” is the famous tag line of the McDonalds relating to the Indian market. They obviously have some of the value creation and bundling strategies like happy meal, family meal, combo which has a positive impact with the sales of the product.

Promotion

This level communicates too effectively with the customers. How they reach to the customers what they make them see to the customers and how they add value and how they create their position in the customer’s minds.

Some of the promotional campaigns are:

· Food, fun and folks.

· I’m loving it.

So for the promotion they have used all the advertising selling, promotion, public relations and marketing straggles to develop their brand and goodwill. And they even tied up with the coca cola which added their value creation.

McDonalds in business expansion and line extension

As we already knew that they were limited with the limited operation of the California U.S. after the late mid 50’s where the first franchising of McDonalds were offered they took it and they over board it. In 1955 they changed its name to the McDonalds Corporation and establish franchising company Kroc were the pioneer for the franchise model and he was the one credited for the business expansion. Now they have more than 1000 outlets all around the world with maximum numbers of outlets in U.S.A,

Business expansion means growth to the organization, MacDonald’s has used some of the strategies to the business expansion which are listed below

· Forward integration

· Backward integration’

· Upstream

· Downstream

· Source.

Systems, costs and the efficiency are the three magical points for the MacDonald’s which they have used for the business expansion and line extension.

Human resources Practices of McDonalds

When the organization has the skilled man power they are going to exceed the way same happens to the McDonalds as for the employees they have given the very good terms and conditions.

Training and development policy

The goal is to develop the skill human resources so to maintain the trained employee they managed to give the common trading to all the employees they hire and to develop the skill of the employee.

They have set of the Training and development center which looks after the training of the employees with the actual need of the training and the HOD of training are responsible for the implementation of the training to the employees.

Crew Members

· They receive on the job trainings they entered to the MacDonald’s family

· Every area of restaurant is well organized with the best training possible

· Full time staffs are trained with 5 months of time and part time with 10 months of time.

· They have accredited basic food hygiene certificate validate by environmental offices

Operational Practices of MacDonald’s

As for the operational practices they have gone for the franchising and not only franchising they are continuously experimenting with new product lines and strategy. For example chicken nuggets which was the result of their experimentation. The main operational practices they have is the quality and consistency to the product. some of them which the company are following are listed below:

· Quality

· JIT

· Outsourcing

· ISO standards

· customization

Except then that he global practices the products they are offering to all the nations’ globally same product everywhere is their operational practices. They have the speed, affordability and standardization of the product which excels their operations, they also offers product with very low pricing so that everyone could afford. They also give fast service friendly service

Responsible business practices

The organization is always responsible with the social issues they have continuously operating with the corporate social responsibility incorporated with their vision and mission some of the issues they have addressed are:

· Environmental issues

· Quality and consistency

· CSR

· Ethical business

· Thinking about people

· Thinking about the planet

· Responsible with products

· rewarding workplace

· reducing environmental impact

· caring natural resources

They have proved themselves by giving their view and their effort to improve environmental issues and they have been continuously improving their quality and consistency is measureable. They are working with the people and they also have been thinking about the general public not only profits and revenue are done to the McDonalds they are worrying about the global warming issues and they are upgrading environmental issues. in as a whole the organization is making positive contributions to the society with different perspective and dimensions. So they are showing their responsibility while doing their business towards customers, environment and employees their suppliers, communities and investors.

Conclusion
Marketing strategies growth strategies have clearly identified the the MacDonald’s have reached the height they always have added features like research and development,innovation customer ideas, consumer desire and other which led them to be the leader in the market and let them to be the example in the fast moving industry. Strategies they used shows the competencies for the business unit.

Bibliography

adhikari, D. r. (2009). Strategic Implementation. kathmandu: Buddha Publication.

Agrawal, G. R. (2008). Dynamics of Human Resource Managemnt in Nepal. Kathmandu: M.K. Publishers.

Gautam, D. R. (2010). Business Law. kathmandu: M.p. Publishers.

MBA Case Studies and Reports

Wednesday, September 7, 2016

Case Analysis on Mcdonalds/ MBA Capstone Case 1

Bibliography

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