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Mcdonald’s Corporation Essay

1796 words - 8 pages

ORGANIZATIONAL BEHAVIOR
Dr. Supra Wimbarti, M.Sc.

Case 1
McDonald’s Corporation

ADITYA DERILYAWAN –10/323133/PEK/15683
FITRI DWI ASTUTI – 10/314156/PEK/15695
PRISCA OCTAVIA INDRAWATI- 10/314167/PEK/15706
YANUAR HERU PRAKOSA – 10/324176/PEK/15717

MASTER OF MANAGEMENT
UNIVERSITAS GADJAHMADA
2011
Introduction :
McDonalds is the world’s largest restaurant chain. Its innovative marketing, superior products impeccable operations, and devoted franchisees have set the standard for the fast food industry. The company philosophy of Q,S,C,&V (quality, food; fast, friendly services, restaurant cleanliness, and a menu that provides value0 and its family oriented image are the ...view middle of the document...

McDonalds has pioneered food quality specification, equipment technology, marketing and training programs, and operational and supply systems, all of which are considered the standards of the industry throughout the world. Q.S.C&.V quality, services, cleanliness, and value are the standard upon which McDonalds was built and the resins McDonalds continues to operate so successfully today.

Agency cost : one relevant market parameter that make the agency cost is high is the physical dispersion of operations. Franchising avoids the monitoring cost, because the local manager is now as the investor whose wealth is depend on the performance of their local units. Monitoring costs will rise with an increasing labor/output ratio.

Turnover : McDonald’s finds a strong link between the quality of its labor force at the store level and the sales of a given restaurant. The key priority is the level of employee-turnover. According to Feldman, current turnover was about 130-135 percent five years ago, and down from peak of 170 percent about ten years ago.

Corporate strategy :
McDonald’s is the largest food service organization in the world, eith over 30,000 store. Its strategies is to provide 100 percents of customer satisfaction, increase market share, and optimize profitability by reducing costs. The three worldwide strategies are : (1) to be the best employer for its people in each community around the world. (2) to deliver operational excellence to its customers in each of its restaurants. (3) to achieve enduring profitable growth by expanding the brand and leveraging the streghts of the McDonald’s system through innovation and technology.

Customer satisfaction : customers are now demanding more than consistency. In response to the changing market, McDonald’s has taken a “do whatever it takes to make a customer happy”.
* healthier food : the hamburgers are made with lean ground beef and enriched sandwich buns; French fries and hash browns are fried in 100 percent vegetable oil’ milkshakes are made with 1 percent low fat milk’ and the amount sodium is decreases. Add menu such as : low fat apple bran muffins, fresh fruit and vegetables, and low fat frozen yogurt.
* -food quality and nutrition : the quality is maintained by : stringent product standards , strict enforcement of operating procedures and close working relationships with suppliers. Food preparation closely monitored, as well as cooking and equipment maintenance and procedures.
* Larger menus : in addition to healthy foods, customer wants more choices, they make the break fast menu, and additional menu such as chicken sandwiches, chicken McNuggets and salads.
* Restaurant diversity : at 1990 mcdonalds management allowed the individual stores to experiment with their formats, such as self services stores , drive through, café and customizes outlets

Kids : US population in the 5-13 years old age group is expected to grow. McDonalds has targeted them with...

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