Management Essays McDonalds Restaurants and Management Strategic Management and Operations

Management Essays McDonalds Restaurants and Management Strategic Management and operationsMcDonalds Restaurants ManagementIntroductionStrategies atomic itemise 18 distinguished for all businesses, irregardless of the intersection points or renovations that they volunteer. through and through strategic management and operations, companies atomic number 18 subject to conflate crude and useful promoter of running their respective businesses. In turn, these strategies results to increase profit or sales, st fit martplace position and greater levels of guest loyalty. In the fast aliment application, certain business strategies argon as well as universe create and applied so as to achieve confusable effects. In this report, the electrical shock of some business strategies in actual businesses get proscribed be analyzed.The case study provided was slightly McDonalds and how the beau monde has evolved to be undefeated in the British market. In addition, the c ase discussed the problems that McDonalds have been encountered throughout the years, specifically in terms of being considered as a companion which offers inflamed food for thoughts. Primarily, the main goal of this paper is to determine the business outline of McDonald to digest their competitive advantage in the global market.Overview of the CompanyMcDonalds has a rich history that started out in 1954. The corporation was put to the blot by Ray Kroc. Throughout the years, market ideas have poured through and financial aided the ships society become unrivalled of the most renowned fast food shuffles globally. The label design for the fast food was carefully studied and it came with a ingenious clown character known as Ronald MacDonald (McDonald, 2008).The coarse Mac and the testicle Muffin have been some of McDonalds most innovative products. In terms of trade, the happy meal approach was as well a inventive as it entices children to eat at MacDonalds beca ec onomic consumption of the toys they can get. Today, McDonalds is excessively on the Inter earnings bandwagon, providing teaching to race all over the knowledge domain with a click of a mouse (McDonalds Corporation, 2008).McDonalds restaurants offer a substantially uniform placard, common in the usual fast foods. This acknowledges hamburgers, cheeseburgers, icteric sandwiches, French fries, salads, milk shakes, desserts, and ice cream sundaes. The companys clear sellers, and can also be considered as innovative adept(a)s, include the Big Mac, Quarter Pounder with Cheese, the Filet-O-Fish and Chicken McNuggets.Recently, the company has added a number of refreshing nutritional products. This includes the Salads Plus products i.e. Garden Side Salad and the Grilled Chicken Flatbreads (McDonalds Corp. UK, 2008). Uniformity continues in McDonalds restaurants operating in the US, UK and certain international markets that are open during breakfast hours and offer a full or expr ess breakfast visiting card. Breakfast passs include the Egg McMuffin and Sausage McMuffin with Egg sandwiches, hotcakes, biscuit and bagel sandwiches and muffins. Also, McDonalds tests brand- late products on an ongoing basis and sell a variety of some other products during limited-time promotions.In the fiscal 2003, McDonalds generated revenues of $17.1 billion, an increase of 11% on the previous year. Operated Restaurant business solid posted revenues of $12.8 billion in fiscal 2003, compared with $11.5 billion in 2002 and $11 billion in 2000 and represents close to 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 nigh 25% of the companys net sales. The geographic are of Europe accounts for 37%, southward to the 39% total revenue in the US.The customer target of McDonalds is usually children or young commonwealth. In fact, McDonalds already entered the childrens wear market. The new McKids products include footwear, videos, toys and casual clothes. Soon to be released worldwide, it is an exploit to redefine McDonalds image partly due to heightened concerns about the raise levels of obesity amongst consumers, finically in the US and the UK.Strategies of McDonaldMcDonalds is one of the famous food chain all throughout the world known by twain the child and adult a exchangeable. It has increased it sales disdain some issues being raised against the company. To further increase sales on the business and advance its performance, business strategies are make by person in- energize. It is in this constitute wherein the company would improve what they lack thus making prospective customers to have on coming back and ask for much(prenominal). It is said that McDonald has been able to use various strategies to uplift and raise their competitive advantage in the market. business office of its business dodging is its plan to phase out its Super sizing French fries and soft drinks as it tries to create a fitter image for itself. The Super Size option is to be phased out in an attempt to slim down its menu amid increase 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 eye breakfast offering, while bagels would become an facultative item. The company also has to stop selling its 14 ounce McDonalds Fruit n Yogurt Parfait and replaced it with a grimer-sized version of the product (Crouch, 2004). each 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 modify core menu would be rolled out to its entire restaurant.Furthermore, use the national rollout of its made for you platform as the opportunity to re-evaluate its core chump attr ibutes, the company has quietly formed a global leaf blade strategy task force that is looking for long and hard at the meaning of the Golden Arches (Howard, 1999). The group which will be led by new vp-brand strategy has been brush 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 expect learning curve for the new cooking system and avert major miscues as it attempts to deliver on the promise of hotter, fresher foods made to topical anaestheticise (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 well-informed 5% level, the said company is re retrieveing how to sustain outgrowth in the formula of both national and regional rivals.In the past, the companys marketing strategy has been criticized for being short-term focuse 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-wheeled vehicle that is used to collect discarded cups and burger wrappings from the neighbourhood around the restaurant and the provision of skillful go to customer which naturally begins and commences with hiring the right kind of people (Livesey, 1999).Staffs are encouraged 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 bathroom is not spared. Issues are raised on the concerns about the said restaurant to be dirty and un wholesome. Customers want a beak area especially the bathroom to make they feel comfortable. Strategies like this should also be applied (Livesey, 1999).McDonalds has gained three strategies for sustaining the competitive advantage. These are customer convenience, customer value, and scoop operations. Together with the digital strategies, it will help create new and bold ideas for the company. The stores are characterized by the operations squad as miniature manufacturing facilities.With its goal in amend the suite of its manufacturing systems (inventory control, product planning, financial control, and point-of-sale mark entry) that supports the store, the team has developed ways of improving its overall operations.Aside from offering hamburgers and French fries, the current trend in McDonalds extends in serving as a family retreat, and as a community center for senior citizens. The bureau 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 shoot studies and surveys to break down know which among the different alternati ves serves the companys objectives the best. These might include robots taking smart sets instead of humans, automated processes of food production, and the like.To achieve customer convenience, one of their key initiatives is on the improvement in the speed of new stores opening. To assist this, the day in the life scenario was developed for site developers that described the optimal toolset and the collaborative environment they would have with them as they scouted for locations. sort of than choosing individual tools, they should think about the tools on the horizon-geographical randomness systems, global positioning satellites, new media such as teleconferencing, and the expanding flow of information through public networks like the Internet. The trammel of the company to put WIFI technology in their stores for instance has also become one of the appealive forces for customers.For the achievement of customer value, focus should preserve on real-time information flow that a llows instant corrections of the menu and prices in response to customers preferences, competitive environment, and even the ingredients global commodities market.Specific locating StrategyMcDonalds has been recognized as a highly plastic corporation. This company feature has been attest by its vast product note. This is one of the companys major strategies in entering foreign markets. Teriyaki burgers in Japan, McPork Burgers and McTempeh in In dosia, McSpaghetti in the Philippines and McLox Salmon sandwiches in Norway are some of the cover 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 indispensable 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 ma rketing mix in order to fit global resources to local market conditions. In order to do this, international companies can transfer their developed global brands into a new market by means 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 international companies at par with the local companies. Another possible localization 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 se rved 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 advertising were also compound into the companys international strategy. peerless 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 General 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 quality meals, McDonalds intends to appeal to the market by building a fast food image where families can get together, en joy 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 role to a business success or failure. Being an important business element, meeting the needs and preferences of the consumers is the utmost priority of almost all businesses. McDonalds has clear 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. in spite of the success of McDonalds in Britain, it is important to consider that the cultural solid ground and preferences of its market continues to change. New markets in the country will eventually emerge. Considering the stiff competition within the food service industry, McDonalds should then see new strategies so as to reach out to the new markets. Perhaps, one of the most significant initial step s 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 market 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 address emerging markets in Britain is through enhanced advertising and promotions. This can be done through the implementation of the incorporated 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 optimize 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 multiple communication voices. Its aim is to optimize the impact of persuasive communication on both consumer and non-consumer such as handicraft 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 integra ted approach is the resulting effect of a more enhanced means of brand building. In the case of mesh marketing, integrated marketing communication will allow food service companies to maximise 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 recyclable and appropriate methods in communicating and establishing good customer relations, including good relationships with s give birthholders like the employees, investors, suppliers interest groups and the public in general.During the 1990s, the introduction of the integrated marketing communication theory 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 mark eting 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 subject medium 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, per sonal selling, public relations as direct marketing more efficiently and effectively.The official website of McDonalds Britain is truly well-made and attractive. It offers complete product details along 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 carry. 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 established 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. increase the companies market coverage is yet another 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 consumer s. 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 customer satisfaction 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 freshly 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 cu stomer 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 enforced effective promotions and offers were done.These are some of the strategies involved 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. unvarying 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 organizat ion, one that is free to learn and open to change.ReferenceArnold, David (2003). Strategies for Entering and Developing International Markets. In Mirage of Global Markets, The How Globalizing Companies Can Succeed as Markets Localize. Financial Time learner Hall, 2003.Crouch, A. (2004). Fast-Food Business Strategy. The Raw Prawn BlogHoward, T. (1999). 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