The seven principles of McDonald's customer-centric Plan to Win for the future. How can these principles help an aspiring entrepreneur?

The seven principles of McDonald's customer-centric Plan to Win for the future. How can these principles help an aspiring entrepreneur?

The history of McDonald's is very old. In the late 1930s McDonald's family moved to United states and the year 1937 when the head of the family Mr. Patrick McDonald started the food court named " The Airdrome", which is special for Hot dogs. Slowly when the business rises they add Hamburgers and drink items. Later on they decide to enhance their business so they shifted to a big building with better resources and food items. This was the year 1940's when they renamed their food court named "McDonald's Bar B Que" with more items in menu and achieve the targeted customers.

It was the year 1948 when they did market research and identify the people's taste on their products and also their product profit analysis and found that the hamburger is the most acceptable and profitable food menu in the item. So they eliminate other food from menus and more focus on hamburger items. Beside this they also renamed their restaurant named from McDonald's Bar B Que to only McDonald's. So this way McDonald's has a very rich past history and now becomes one of the largest food court in the world. They having chain of restaurant all over the world and is one of the restaurant who has establish the culture of franchising. In California only they have 47 million customers. This shows their popularity level among the peoples. Thus by providing quality of services they are creating value, ratio and opportunity.

Changes for the company

Now when we look after the McDonald's I found they change their approach, strategies and marketing concepts as per the demand of the market. It is because now there is more competition in the market and to be a top ranked food court and their own goodwill they never sacrifice in their quality product and services but establish a new ideal way to attract more customers. Now a day's their more focus is on marketing tools through print media, television and social sites. They have a very creative and innovative teams who has produces such advertise which attracts the customers and helps to increase the profit for the company. They are also expanding their business all over the world to target the global audience.

Along with these changes they had also taken tough decisions in different phase of journey to build the company in top rated position till the date. These changes has been summarized in following ways which might be their strength and opportunity,

·         Initially they start their business to attracts air bus customers and their menu also common.

·         When the business ratio is growing then they realized and more focused on Hamburger only.

·         Similarly they start their business in their own building and change the name in McDonald's along with expansion of business. This was the period when they start the concept of franchise all over the USA and becomes one of the largest food chain company.

·         They did more focus on customer satisfaction without changing in quality of product and services rather they play impact change in marketing campaign to enhance their followers.

·         Later on after capturing the US market they franchise their court all other countries to attract the global customers and serve their service in unified manner.

7 principal of McDonald’s customer centric plan

The concept of customer centric plan has been derived by Peter ducker. He has clearly mentioned the seven principal how to change the organization in customer centric way. As per him organization should be customer oriented and they should able to understand the needs of customers and develop their organization accordingly.

Let's analyze the seven principals of customer plan which are as following,

1. Develop customer service strategy:-

To drive sustained momentum organization need to grow their capabilities and diversified their business. They need to understand the momentum of change is commodity and that's why they need to change it carefully. McDonald's continuously know their customers demand and accordingly change their food menu. This result has been seen in their sales growth which is rising year by year. Thus this way they relate to customers and retain them.

2. Business Expansion:-

McDonald's after successfully operating their business all over the US market they soon realize that their customers are rising all over. So they open franchise concept in other countries and now they have reached up to 115 countries all over the world. This shows their broad based business growth.

3. 5P’s:-

McDonald's properly analyze the market condition and based on this they found their target audience, demand, upcoming strategies to develop the business. For this they use %P's marketing strategy,

·         Product  : Company design the quality product to enhance the customers experience. As in India they setup Vegetarian menu.

·         Place : They have setup their outlets which is easily accessible for customers. They are mainly focus in city areas.

·         Price : They set a price minimum to attracts the customers. For this they implement different strategy in food menu like meal, dinner and other attracting food menu in minimum price.

·         Promotion : The endorsement of McDonald's is attractive. They are more focused on advertising and also common in social medias with creative themes to showcase their position in the market.

·         People : They know the norms of both employees and customers so able to make them happy. They understand happy employee becomes happy customers.

4. Sharp focused framework:-

Since now a day's the market structure is changing as per the demand of the customers and other factors. So McDonald's need to stay sharply and focused on the market strategy to get continue growth.

5. Efficiency and productivity:-

Better operation practice leads to efficient market operation and this generates better productivity. McDonald's need to utilize their resources, human capital to capture the market and become a core competence among others through their SWOT analysis.

6. Recruit quality human capital:-

Skilled manpower leads to effective efficiency in work performance. This also helps in organizational output. Competitive capital helps to establish the company in top position so need to hire and trained skilled manpower.

7. Innovation:-

In order the excel the opportunity and to have a competitive advantages organization need to innovate their products and services in different ways. McDonald's innovate the proper menu, advertising creativity and store layout in innovative manner which is totally different than others. This helps them to grow their business.

McDonald's is utilizing the approach of Peter and continually attracting the customers through analyzing their needs and this continuous change is their success mantra. Full filling customers wants is success factor of any business which is doing by McDonald's. In this way McDonald's did proper research and forecasting the future approach of the business. As per the analysis of the customer centric approach is the continuous learning and improvement with time. They are focusing more on strategies, tactics and create learning environment to achieve the goal and also create the value. In this way customer centric plan helps to win in future.

For any aspiring entrepreneur the seven source of principle is the main theme to be a success. It is the basic criteria to adopt in the environment. The best example is McDonald's and their approach of using customer centric approach. Thus any new entrepreneurs should first know the need of customers and accordingly sustain, growth, sharpening, productive, innovative and utilizing 5P's to be a role model in the market. As we know customer centric is related to customers' needs and it is to create values for the loyal customers so aspiring entrepreneurs should know this norms and utilize the effectiveness of the Peter Drucker principal and learn from McDonald's practice.