Does McdonaldS Offer A Model Which Other Businesses Should Follow? Essay Example

1968. During the 1970s, McDonald's actively engaged in charitable work and established the Ronald McDonald House, offering temporary housing for families with seriously ill children. This philanthropic effort reflected founder Ray Kroc's belief in giving back to the community. In 1973, breakfast items were added to their menu, followed by Quarter Pounder sales reaching $1 billion a year later. The first UK restaurant opened its doors in Woolwich, South London during 1974. In 1975, McDonald's introduced drive-thru window service which now accounts for half of all US sales today. Chicken McNuggets were included as an alternative to beef products on their menu options starting from1983.Founder Ray Kroc passed away a year later leading to the establishment of Ronald McDonald Children's Charities dedicated to raising funds for child welfare as a tribute.In1989,McDonald's was listed onthe Frankfurt,Munich ,Paris,and Tokyo stock exchanges.As we entered into the1990s,the company further expanded with smaller outlets called Express stores opening at locations such as hospitals,zooes ,airports,and ferries.These stores offered a limited menu and lacked some amenities found in larger storesMcDonald's and The Walt Disney Company signed a 10-year agreement in 1996, resulting in the opening of McDonald's restaurants at Disney theme parks and the promotion of Disney films by McDonald's. Packaging and limited edition products, such as those featuring Pocahontas and The Lion King, were utilized as effective advertising techniques. Currently, McDonald's Corporation is the largest franchised food service organization globally.

In the 1960s, Ray Kroc introduced low-cost franchising for his restaurants at $950, requiring only 1.9% of sales. The success of both McDonald's and its founder relied heavily on franchisees' prosperity, making mutual interest crucial for their success. In the United States,

franchisees own and operate 87% of restaurants while in the UK over 20% (119 out of 577) are franchised. McDonald aims to increase this percentage to over 30% by year-end. Franchisees are charged a levy on sales including a 4% service fee and a 7% rent charge.

The expansion of franchised restaurants directly contributes to McDonald’s revenue growth. As the largest retail property owner worldwide, McDonald's prioritizes quality, service, and cleanliness. They use top-notch products with carefully developed formulas to ensure an exceptional customer experience. Cleanliness holds great importance for attracting customers and maintaining impeccable restaurants both inside and out.McDonald's values fast and courteous service, considering a smile as important as offering the best food. The company trains its employees to treat customers with utmost respect, recognizing them as the most critical aspect of their business. To ensure customer service requirements are met, Mystery Diners visit each store once a month. McDonald's aims to achieve 100% customer satisfaction by delivering high levels of QSC (Quality, Service, Cleanliness), aspiring to become the UK's favorite quick-service restaurant.

McDonald's also values its people and strives to be a good employer by being reliable, safe, responsible, consistent, trustworthy, and customer-driven. They maintain ethical practices through visionary leadership and focused management. Recognizing that employees play a key role in customer satisfaction, McDonald's aims to establish an educational environment where they can develop their skills at the highest level.

The company designs training programs that help employees achieve goals like customer satisfaction, market share growth, and profitability. Continuous evaluation ensures that McDonald's keeps its procedures up to date and relevant to business needs. Training is seen as crucial for success and involves all employees.

The

standardized worldwide uniform used at McDonald's has minimal variation but may have different colors in certain countries for religious reasons.McDonald's enforces rules and regulations, with area managers conducting thorough inspections of each restaurant (excluding franchises) around four times a year. These inspections ensure that operations are carried out correctly and include general checks. Additionally, once a year, a comprehensive inspection called a full field assessment is conducted by area managers, other restaurant managers, and trainee managers to evaluate the entire operation. The results of these inspections are recorded in tables, creating intense competition among stores striving for high scores.

To retain skills internally and minimize training costs, McDonald's actively promotes employees from within the company. This approach has been successful as many top managers and senior personnel at McDonald's have risen through the ranks from crew positions. The company values loyalty and dedication, recognizing that people are its most valuable asset.

To encourage employee loyalty, McDonald's awards loyalty points for reaching service milestones which can be redeemed for goods through the Maritz catalogue. Regular crew meetings and smaller sessions provide opportunities for employees to discuss policies, procedures, products, and problems as well as voice their opinions within the company.

After three continuous years of employment at McDonald's, private medical care is provided to employees while life assurance is offered after one year of continuous service. Furthermore, regular team-building activities and outings are organized by McDonald's to enhance teamwork skills and reduce staff turnover.McDonald's supports employees in their pursuit of higher education by granting up to $1500 per year based on their chosen courses. The company also offers a starting salary of $16,500 per year through its Junior Business

Management Program for individuals aged 18-21. Employees have the opportunity to purchase McDirect shares and become part of the corporation. Standardization plays a crucial role in McDonald's model as it utilizes production line techniques for fast and consistent preparation of high-quality products with a limited menu and patented formulas across different locations over time. McDonald's restaurants worldwide follow standardized approaches for fixtures and fittings, making minor adjustments for cultural differences. This enables McDonald's to maintain control over franchisees and customers, forming the foundation of its business model. To ensure efficient service delivery and consistency, employees respond to customer requests using scripted questions. Technological advancements such as EPOS systems further enhance employee control by eliminating manual calculations and price memorization. On the customer side, standardized menus and uncomfortable seating subtly influence them to increase efficiency in the quick-service food industry by reducing waiting time. Suppliers are also expected to adhere to consistent food processing techniques as part of McDonald's standardization effortsMcDonald's maintains control and consistency in all aspects of its business to achieve objectives like customer satisfaction, market share growth, and improved profitability. Despite limited choices, over 28 million people worldwide, including 1.2 million Britons, choose McDonald's daily as their popular quick-service restaurant. The recognizable Golden Arches logo with its vibrant red and yellow frontages found in shopping centers and high streets attract children. McDonald's recognizes the importance of catering to children as they influence family dining decisions. Ronald McDonald, the beloved clown mascot, portrays affection for the brand and its food which resonates with influential children. In order to leverage this connection, McDonald's advises its marketing department to appeal to both children's love for the

brand and the clown. Alongside targeting children, effective communication between McDonald's and suppliers is prioritized to ensure efficient operations and maximize profits. However, such supplier control is only possible for large corporations like McDonald's; other companies struggle to replicate this model in their own supplier relationships.McDonald's stands out by its ability to overcome cultural barriers related to food and has effectively marketed itself as a global presence. As a result, it now operates an impressive 24,800 outlets across 115 countries. Among these countries, Beijing, Egypt, Kuwait, Russia, and China have all established the world's largest restaurant which boasts over 700 seats and employs 1200 staff members. McDonald's has made significant efforts to establish franchises on an international scale and had to collaborate closely with governments in Moscow and Yugoslavia to create infrastructure that meets consistent worldwide standards for their restaurants. To maintain its position as a global leader, McDonald's covers the costs of processing plants required for supplying these outlets. Additionally, McDonald's works closely with franchisees worldwide so they can customize outlets based on specific cultural needs. This includes offering varying menus such as serving beer in much of Europe while yogurt, salads, and pizza are available in America. With a diverse range of stores from small express outlets in Tokyo to larger restaurants like the 700-seat outlet in Moscow, McDonald's continues to attract large numbers of customers globally.McDonald's has had a significant impact on society, leading to the adoption of McDonalds-style nicknames by various businesses and services. In the United States, for instance, drive-in dentists who treat minor issues are referred to as McDentists.

The success of McDonald's can be attributed to its efficiency, calculability,

predictability, and control. The company employs optimal production methods and enforces effective rules and regulations to ensure efficient work. It emphasizes the quantitative aspects of its products, appealing to the belief that larger portions are preferable. By creating a perception of receiving a good deal, McDonald's justifies customers' spending.

Predictability plays a vital role in McDonald's success as it guarantees customers consistent products and services across different locations and time periods. Recognizing that people prefer a world without surprises, McDonald's strives to create similar experiences in terms of service and food quality. Adopting the McDonald's model offers numerous advantages such as wider availability and convenience for obtaining goods and services. This is made possible by an increased number of outlets maintaining uniform standards.

Additionally, this model presents economic alternatives to expensive customized goods while allowing for quantification-based comparisons based on size. Society values the notion that bigger is better promotes equal treatment irrespective of race, class or genderHowever, there are drawbacks to McDonald's rational system. One concern is the constant generation of irrational consequences. The environment suffers from the chemicals required for standardization and uniformity in desired products' shape, size, and quality. Developing countries face risks such as deforestation and defoliation due to these practices, which contribute to disasters in Sudan and Ethiopia. Interestingly, despite many children being undernourished in less developed nations, they export staple crops as animal feed. This benefits developed countries by using feed to fatten cattle for burger production. The text highlights the negative effects of McDonald's practices on valuable farmland and indigenous communities while criticizing their resource misuse. It specifically mentions poorer countries exporting food to the USA and points out that

McDonald's South American Cattle consume a significant amount of grain and soy compared to humans. The essay emphasizes the wastefulness of 124 million tons per year worth $20 billion that could be used to address global poverty. Despite acknowledging positive impacts on job creation and economic improvement, it underscores how this comes at the expense of people in developing countries going hungry while excess food is provided for developed societies.
The text highlights concerns regarding the environmental impact caused by McDonald's use of chemicals to maintain product consistency. These chemicals contribute to increased nitrate levels and pose a threat to human lives. Additionally, it points out how McDonald's effectively influences many individuals, particularly young children, to view their experience as painless – a type of brainwashing that could result in a standardized world lacking national identities and cultural distinctions. While acknowledging the rationality of McDonald's business model, it cautions other companies contemplating similar approaches to recognize the irrational consequences they may generate. Prior to adopting these practices, careful consideration must be given to their overall societal impact. Widespread adoption of this model would not lead to global improvement; instead, it would create an even larger platform for exploitation, pollution, and concealment.