Mcdonald`S Recipe for Success Case Study
According to wikipidea, McDonald’s Corporation is the world’s largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries - Mcdonald`S Recipe for Success Case Study introduction. McDonald’s primarily sells hamburgers, cheeseburgers, chicken, french, breakfast items, soft drinks, milkshakes and desserts. In response to changing consumer tastes, the company has expanded its menu to include salads, wraps, smoothies and fruit. Jim Delligati is the owner/manager of forty-seven Mcdonald`s outlets.
And he is not contended in opening forty-seven of the famous hamburger outlets over the past twenty-six years and has become a millionaire in the process. Delligati`s hates to see anyone leave one of his ‘store” unhappy. Their lunchtime whirl all comes together to meet one. It is to serve the customer within sixty seconds of the order`s being placed. Their production in making burgers has designated stations in order for them to serve customers as fast as they can.
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McDonald’s empire really is built around individual stores, each striving to conform to the company motto of “quality, service, cleanliness, and value. ” McDonald’s outlets could use a classical approach, motion studies, organizational efficiency, behavioral approach, management science approach, scientific method, contingency approach, and system approach to management so that there will be an achievement in their organizational goals that refers to effectiveness. II. Statement of the Problem * To serve the customer within sixty seconds * To increase productivity To motivate the staff to do better * To improve the fast food restaurant’s overall performance * To adapt with the dynamic and external factors that could affect the sales of McDonald’s stores * To ensure that the customers who walk in would not leave the stores unhappy * To eliminate unnecessary or wasted motions by his employees * To ensured that there is no favoritism in the job III. Alternative Courses of Action (ACAS) The stated problems has an alternative courses of action, a manager can try to do the following in order to deal with them:
In order to serve the customer within sixty seconds, managers find out that the best way to do is to make it in scientific management wherein workers are designated at different stations with different works processes must do so that they will beat the time as fast as they could. In order to live out the company motto “quality, service, cleanliness and value”, managers find out what is the “one best way” to perform the jobs at McDonald’s. This would include checking the materials and equipments if they are appropriate in size or if they perform the functions they are supposed to do.
Example of this is the dispenser used to apply mustard and ketchup. These dispensers must be checked if they are appropriate in size to require only one spurt to adequately cover the hamburger bun. Ensuring that the customers who walk inside the store would not leave unhappy means that their need satisfaction. This means that, at most, the customers are served within one minute after their orders are placed. This would be possible if unnecessary or wasted motions of the employees are eliminated. Their products such as hamburgers, french fries and drinks should be in the proper location for easy insertion into customer bags.
Customer bags should also be placed within reach. By doing this, employees would not take unnecessary steps that would consume time. Increasing productivity also increases potential income. When there is more production, there are more products to sell and therefore, there would be more satisfied customers. One way to increase productivity is to assign specific people to particular tasks which are in their areas of specialization and to schedule specific people to work at specific times. McDonald’s store managers must give their employees tasks where they are best at.
They must also ensure that there is sufficient number of people with adequate skills scheduled to work during rush hours and fewer numbers during the off-peak hours. This would help owners to minimize costs due to labor. For customers to patronize the fast food chain, McDonald’s stores should not only produce quality products but they must also provide quality service. To attain quality service, employees and staffs should be motivated to do their tasks better. One way of motivating them is through cash incentives or bonuses.
McDonald’s managers could award the employee or employees with the best performance as “employee/s of the month” and reward them with cash incentives added to their monthly salary or give them simple bonuses such as lunch treats. This would encourage the employees since they know that their efforts and hard work are being acknowledged and rewarded. Improving McDonald’s fast food restaurant’s over-all performance would require an evaluation of the entire range of the manager’s performance, usually taking into account organizational efficiency and management action.
The store manager should ensure that his/her employees are receiving orders from one superior only. It would cause disorder and confusion if employees are instructed by a head to do something and then later on instructed by an assistant head to do another. Another very important problem to address is adapting to the dynamic and external factors that affect the sales of McDonald’s stores. Since McDonald’s is not the only fast food chain restaurant in the food industry, the store manager must be aware of the influences that the environment is having on the stores.
The stores must be taken as an open system, with the customers, suppliers, competitors and the government as the major factors in their environment. McDonald’s must adjust to the changes in its environment and must modify different parts of its system to ensure that its customers would not patronize its competitors. IV. Analysis The stated problems above have concepts that are being practiced in the case study. Some of the concepts that are being applied are:
The Classical Approach to Management. Under this approach is the so-called scientific management theory which uses scientific methods to define the “one best way” for a job to be done. This theory is applied when the managers try figure out what is the best way to live out the company’s motto “quality, service, cleanliness and value. ” Another scientific method used is the application of motion studies which helps in eliminating the unnecessary motions of the employees for a faster and more efficient service. Another theory under the classical approach to management is the general administrative theory.
In this theory, Henry Fayol developed the fourteen (14) principles of management. Out of those fourteen principles, three (3) were applied and used. Those principles are: division of labor, remuneration of personnel and unity of command. The principle of division of labor is applied when the McDonald’s store managers assign employees tasks where they are best at. The principle or remuneration of personnel is applied when the managers give cash incentives or bonuses to their best-performing employees.
On the other hand, the principle of unity of command is applied when managers make sure that their subordinates receive orders from one superior only. The Behavioral Approach Under this approach is Herzberg’s Dual Factor Theory which states that recognition serves as a motivator for employees to work harder. This theory is applied when managers acknowledge their best-performing employee/s through awarding them as employee/s of the month. The Contemporary Approach Under this approach is the systems theory which states that organizations must be described as open systems which are influenced by and which interact with their environment.
This theory is applied when managers start to view their stores as interdependent systems that are affected by factors such as customer, suppliers, competitors and the government. V. Conclusion McDonald’s fast food restaurants work hardly for them to get the success they aim for. Their work will gonna be better and more efficiently if it has a manager who knows how to handle properly the company as well as the employees wherein a manager must know how to lead, monitor, build trust, work with the team and motivate.
A manager in this restaurant must know how to apply the different approaches to management in order to be an effective in his job. Wherein in this case study , there are different approaches that are been used and applied and the applications are resulted to the improved quality service, the satisfaction of customers meets the service wherein they come back and patronize McDonald’s , faster and more efficient service, increased productivity, flexible and motivated employees, improved overall performance of the service, and flexible management system that adapts with the changes in the environment.
It doesn`t mean that they have been put all of those things , they must still continue searching an effective ways or approaches so that it will always meet the demands of the customers and the better quality service that would brought them into the recipe of success.