McDonald's today in terms of marketing, business expansion and line extension, human resources management practices, operational practices, and responsible business practices.
Describe McDonald's today in terms of marketing,
business expansion and line extension, human resources management practices,
operational practices, and responsible business practices.
Introductions
of the Case
This is a case study about McDonald
that was established in 1995 and it started to enter into the public market
since 1965. This company is one of the
leading foods servicing company in the world especially in restaurants sectors.
There are 30,000 restaurants are operating under the control of McDonald over
100 countries. Parents, business customer, teen agrees, and young children are
the most targeted customers of McDonald. The menu of this company has updated
periodically with introducing latest and new innovated products whereas
hamburgers, salad, drinks, salads, sandwiches, pancakes, French toasts are
major. Offering different product to the different customers at different price
based on customer’s capacity is the most important marketing strategy of McDonalds.
Radio, televisions, newspapers, and personal mailings are the major marketing
tools of McDonalds. Facing competitions from well-established restaurants such
as KFC, burger kings, and taco bell are major threats/challenges for the
company. Thus, providing quality and hygienic products to its customers based
on their needs and desires at their places according to their capacity at
different price level is the most important objectives of McDonald.
Marketing
of McDonald
Marketing is one of the most important
tools for each and every organization to reach at their destination points in
competitive environments. The company McDonald has uses radio, televisions,
newspapers, personal mailings, and sales promotion activities as for marketing
its products. Sponsoring different community programs, making good relationship
with business houses, schools and customers, making extensive marketing,
national campaign, and focusing target customers based on product varieties are
the major marketing strategy of McDonald.
Business
expansion and line extension
Both business expansion and line
extensions are consider as the major functions of every business organizations.
Unless and until doing activities of business expansion and line extensions the
business organizations cannot increase their market share appropriately. The
business expansion is that in which the business house are expanding their
business houses into the different places of the world by making several
outlets of their business. According to this case, we can say that the McDonald
has operating more than 30,000 outlets over 100 countries of the world. Having so many outlets to serve service to
the customers is the functions of business expansion. Similarly, line extension
is that in which, the business firms are trying to produce different variety of
same product to meet the demands of each and every customers equally. The
McDonald has offered so many varieties of products such as drink, salad,
sandwiches, and burgers and so on.
Human
resource management practice
Human resources are the key assets
for every organization to get their success. No one organization can run
smoothly without hiring human resources. MacDonald hires skilled staffs through
interview after advertising from different media. Hiring skilled employees
through interviews, allocation of job based on employees skills, capacities,
attitudes, sex, gender, experiences, ability and willingness are the major
criteria of human resources recruitment process. Similarly, providing training
and development programs, retaining skilled employees within the company,
promoting employees based on capacity and skills, providing detailed
information about the company especially to new hiring employees, teaching
about company’s rules, regulations, and disciplines are other functions of
McDonalds that teaches to its human resources to produce synergy form the
effective combination of human resources into the different departments of the
company.
Operational
practice
Operational practice is one of the
most important functions of business organizations. Unless and until having
good operational practices within the organization in term of its product,
service, and quality, the organization cannot achieve their success easily.
Producing hygienic product through technology systems, reducing time of
operations, providing training and developments programs to the employees are
major operational practice of McDonalds. Similarly, making standards of
products, allowing different operational department to the related persons
based on their skills, knowledge, and capacity. Delivery customer’s goods at
their home and offices, operating its branches for 24/7, commitment for
environmental protections, recycling resources as much as possible, continue
improvements of products, and creating breakfast time at each and every time of
the day are major operational practices of McDonalds.
Responsible
business practice
Responsible business practice is the most important
part of business organizations whereas environments, marketplace, peoples and
communities are the major responsible areas of McDonalds. Focus on the
development of local places, support to school program, youth clubs are major
responsible at communities. Protecting environments and allowing funds to
protect environments are major responsible at environments. Providing
customer’s services from the different places of the world and doing deliver
work of its product based on customers’ orders are other responsible functions
at marketplace. And providing health care services, hygienic foods, crating
family environments within the organizations are other responsible business
practice of McDonalds. Fund helping to the society by giving some portions of
profits to develop social activities is responsible business practices.
Summary/Recommendations
McDonalds is one of the leading
restaurants company in the world that provides its services from the 119
countries of the world to 68 million customers. Providing better services to
its customers based on customer’s needs, capacity, and desires is the major
strategy of that company. According to this case we can say that, hiring people
based on their skills, capacity, and knowledge and providing them suitable task
is the other human resource management strategy of McDonalds. Promoting
employees, training and development programs, and retaining employees are other
strategy of McDonalds. To remain as a market leader in the food servicing
sectors, the company should adopt following recommendations;
- Ø The company should continue its training and development program to promote its employees or to sharp its employee’s skills, knowledge and capacities. That will helps it to increase is productions level through economies of scales.
- Ø The company should adopt product differentiations strategies to meet the demands and desires of each and every customer.
- Ø It should retain its old and experienced employees within the organization that will help it to produce quality product at low price.
- Ø It should maintain good public relationship by providing quality product at their convenience place at reasonable price.
- Ø It should increase its outlets into the several city area of the world as much as it can to expand.
- Ø It must be able to provide 24 hours services to its customers as much as it can.
- In this way we can recommend to the company McDonalds to improve products and services to increase its market shares as well as profits too.
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