“Welcome to McDonalds, what can I get for you today?” Is the first question we get as soon as we pull up our car to the drive thru menu. McDonalds entire process is so tedious that the entire process of ordering, transaction processing and the food delivery will be ready in less than 5 minutes. Behind over 1.7 Million Mc’d crews happy face, there are numerous innovations, marketing strategy, capacity growth as well as strategic survival planning. McDonalds has always been a go-to meal to any age, sex and demographic groups. The franchise became so popular that it has been able to open its store in 117 countries with an approximation of 1.7 Million Mc’d Crews. The word “crew” in McDonald emphasizes on delivering together by systematically prioritizing the task with highest level of customer satisfaction along with the friendly smile you can barely find in other restaurant chains.
Competition to McDonald’s changed over its existence
McDonalds was pretty much the most established sole fast food provider in the world. The term “Franchise” almost represented McDonalds in some way. Because of the evolvement of the other fast food companies, McDonalds got hit by the decreasing number of customers and lesser interest on its menu. In this fast paced and highly automated world, a chicken only serving restaurant is taking the crowd by its storm. In the recent article published by Kelso, “Chick-Fil-A hugely outperforms all of the major fast food chain in American Customer Satisfaction index as well as Chick-Fil-A drive thru test score of 93.4% based on speed, accuracy and customer service”. In-order to compete to other flourishing restaurants, McDonald has revamped their organizational process, establishment of Universities to study on cooking, storing and serving process as well as field service consultants to know more about the product taste and satisfaction.
The main operation performance objectives for McDonalds
Profit and operation performance play a major role in navigating the company’s future in today’s world. A company cannot sustain without any strategic planning and ensure everyone is working on core company goals. The first thing I’d notice that never changed for McDonalds is its world renowned French frys. Neither the quality nor the price of the frys has ever been compromised. There are tons of research McDonalds does on its university to ensure that the food taste never changes. The University also focuses and praise the innovative ideas that was very loved by the customers. The list of ideas includes but not limited to egg McMuffin, Fillet-O-Fish, Nuggets. McDonalds lets its franchise owners to voice their own opinion and honors the suggestive ideas based on the locations.
McDonald’s activities, in terms of its design, delivery and development, influences its operations performance objectives
The big Golden Arches logo we see while driving around the city is appealing. The golden Arches “M” logo is close to the most recognized logo in the world. McDonald’s strategic activities has always put them to be the top notch in the market. From Kids-Menu, kids-zone, McCafé, Wi-Fi to its clowned mascot, McDonalds has covered all age and ethnic groups. Recently McDonalds has done everything possible from its side to avoid the news headline. Even with raise in its crew salary and better management opportunities, McDonalds has failed to meet its standardized expectations. The news article presented by Parkinson in BBC news states that the protest took place in South Korea in February 2015 against a culture of exploitation, kitchen safety and how management is failing to raise its employee salary. But again, like 2 side of the coin, McDonalds is doing everything in its control to keep its employee satisfaction at the optimum level. According to Paul King, the franchise is spending as much as 24 billion on research and upgrades to stay on competitive edge on this market. For employee eager towards their career advancement, McDonalds has a Hamburger University in Illinois opened since 1961. The university provides a good platform for its employee to train them on communication, problem solving and management skills to advance thru their career. You can receive a degree in Hamburgerology while you are working in McDonalds from Hamburger University.
Smaller menu selection has always been in favor of McDonalds. In addition to that, McDonalds has been highly successful to keep the taste similar amongst its popular product. Let us take an example of French Frys into consideration. The preparation process requires some extensive automation, coordination amongst suppliers as well as preparation and handling expertise.
According to the article published by Jonathan Maze, “Chick-fil-A is the closest rival of McDonalds. The company is testing made-to-order chicken and last year signaled strongly that it would be a bigger player in the business”. The research is not only limited to the futuristic design of the restaurant and taste but also deep dives in getting itself into digital innovation such as kiosk ordering, mobile order and delivery.
It just seems like a few year ago when Nokia was one of the top selling phone company. Sky was the limit for the company as sales, performance and growth of the company was invincible. Now we all know that Nokia remained as a sad but bitter truth of the past. Nokia settled faster than the dust and now nowhere close to the market. Nokia simply resisted to change and failed completely. McDonalds learned the lesson from Nokia and is doing its best to adapt to the changes. The company is doing its best to improve its customer service, considering innovative ideas as wall as focusing on healthier alternatives. According to King P, McDonalds has been in Cleveland clinic and Tampa General Hospital for more than 20 years dedicated to offer healthy options for patients and visitors. To remain as undisputed leader, McDonalds is proving a healthy alternative such as a meal with a side of fruit servings, whole grain oatmeal’s, grilled option as well as low calorie dairy products. Global investment in technology, excellent customer service, planning and implementation of strategic method has been a key to success for McDonalds.
- Kelso, A.(2018, December 20). Chick-fil-A is not McDonald’s Biggest Threat. Forbes.
- Retrieved May 15,2019, from Chick-fil-A is not McDonald’s Biggest Threat
- King, P. (2013). Much Ado about Nothing? FoodService Director, 26(6), 47. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&AuthType=shib&db=f5h&AN=87951917&site=eds-live
- MAZE, J. (2019). CHICK-FIL-A IS MCDONALD’S BIGGEST COMPETITOR: The chain, which will soon be the country’s third largest, caters to the same customers. Restaurant Business, 118(2), 61. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&AuthType=shib&db=f5h&AN=134761136&site=eds-live
- Parkinson, Justin. “What’s It Really like to Work at McDonald’s?” BBC News, BBC, 15 Apr. 2015, www.bbc.com/news/magazine-32283560.