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Business Analysis of McDonald's Success

Info: 7709 words (31 pages) Dissertation
Published: 16th Dec 2019

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Tagged: Business Analysis

Business Excellence: McDonald’s

Introduction

How to succeed in business? And this is not surprising. Business is created in order to reach the top and become the best in its business. Otherwise, entrepreneurship does not make sense. Nevertheless, each person can have their own ideas about what success is in entrepreneurship. Indeed, today the image of a positive person promotes success in business and promotion through the ranks. The opinion of others about a person is determined by what kind of housing, office, car. In creating the image of a successful person, the appearance of a person, his clothes, hairstyle, accessories also have a significant influence, his manners are also important, what he says and writes, and what means of business communications he uses in the process of business communication. The success of the business and the effectiveness of interpersonal communications with partners and clients depend not so much on the knowledge, professionalism, willpower of the leader of the organization, as on the ability to produce an advantageous impression on the surrounding and external attractiveness. The appearance of a person determines how others will treat him. But that’s not all. Many more things are needed in order to be successful in business.

In order to succeed in business, many people often present only material grace in the form of an ongoing stream of money, without thinking about what it’s all about, and how much effort it really will have to make. Therefore, in order to achieve success, it is important to understand what it means for you personally to succeed in business: just profit or realization of your plans? The modern market is full of many different offers. Aspiring to join the number of entrepreneurs, and successful entrepreneurs, it should be understood that this path is far from being as simple as one would like. Therefore, many initially set themselves up for a difficult struggle. Of course, the inherent traits of character, and the ability to think reasonably will play a role. It is important to be able to analyze and calculate in advance the consequences of one’s actions – this is one of the most valuable skills of successful businessmen. But it should be understood that achieving leadership in your field of activity will require perseverance and a high level of professionalism that you need to constantly develop. Successful is the one who has become the best among competitors.

Hence quality management and business success are key factors for the success of any company. They are influenced by many factors that need to be constantly developed in order to remain a leader. The purpose of this paper is to assess the principles and practices of doing business in one of the most popular companies in the world – McDonald’s. Also, in the process of work, the techniques of the business of the company should be analyzed and recommendations that will improve its work should be developed.

Literature Review

About the Company

And you dreamed of hamburgers and a glass of cold cola? McDonald’s – a network of restaurants that swept the whole world. Ronald McDonald became one of the favorite children’s heroes on a par with Santa (Deasy, n.pag). The US population spends $ 110 billion per year in McDonald’s! Think about it! It’s more than cars, education and travel. According to statistics, every 8th US resident worked in this restaurant. And in our country ,there are no those who have not tried a hamburger and French fries. Now it is the largest network of fast-food restaurants. Its headquarter is located in Oak Brook in USA (Frost, n.pag.). McDonald’s began its work in 1940. Firstly it was just a barbeque restaurant. The founders were Dick and Mac McDonald. Businessman Ray Crock began working for the company in 1954. He was just a franchising agent (Bates, n.pag.). A year later, Crock opened his first McDonald’s in the town of Des Plaines, Illinois. Subsequently, he purchased the entire McDonald’s network from his brothers and supervised further business on his own. Restaurant McDonald’s work on a franchise system. A significant portion of the funds received by the company is from franchising. McDonald’s revenues in 2016 amounted to 24.6 billion US dollars, a percentage increase in operating income – 7.74 billion dollars. Capitalization in August 2017 amounted to 125.3 billion dollars (NASDAQ, n.pag.). As a result of the first quarter of 2016, the company’s net profit was $ 4.68 billion. Now McDonald’s shares cost $157.76 per share. McDonald’s shares are traded on the NYSE. Chairman of the Board of Directors and CEO of the company – James Skinner, President – Don Thompson. Almost all of the company’s shares are in free circulation. Currently, McDonald’s is the world’s second largest network of fast food restaurants. In 2010, the Subway restaurant network outperformed the company (Knoema, n.pag.). The first original McDonald’s mascot was a man in the chef’s cap, which stands on top of a hamburger. He was nicknamed “Speedee”. But later, Ronald McDonald replaced Speedee. McDonald’s has become one of the key factors in globalization, as it combines fast food enthusiasts around the world. Another interesting fact is that McDonald’s is so popular that The Economist has introduced a special index for comparing Big Mac prices in different countries. It helps unofficially determine the parity of purchasing power.

The mission of McDonald’s is to provide fast, high-quality customer service with a standard set of products.The McDonald’s Corporation has its vision of the goal, and it sounds: “Be the world’s best fast food restaurant.” This means that McDonald’s restaurants will be the best place where their visitors in a clean, pleasant environment can get fast, friendly service and favorite dishes that will be fresh and hot, where they will be interested – and all at an affordable price. Prices are the most expensive in Switzerland, and the cheapest in India.

Company’s Products and Types of Restaurants

Now let’s see why McDonald’s is so popular? It’s all because of its products. The main products of McDonald’s are different snacks. It’s hamburgers, cheeseburgers. Moreover, there are different drinks and desserts. Recently, the world has witnessed a tendency to popularize healthy eating. The company also tries to adjust to the current trends and partially enter the menu of healthy food. In separate regions, there is some traditional dishes. A vivid example of this is the permission to sell beer at restaurants in Germany, as the country is known for its beer festivals. In China and Japan, the menu also has a variety of soups. Moreover, the company adapts to such traditions as religion. In some countries, consumption of pork or beef is prohibited according to religion. In particular, it concerns India. Because of this, McDonald’s uses other meat consumed by the local population. McDonald’s restaurants are located in 120 countries. Restaurants serve 68,000 customers each day (Rosenberg, n.pag.). More than 34,000 McDonald`s restaurants around the world, with more than 1.7 million people, are open. Focusing on his main brand McDonald’s began in the 1990s.

McDonald`s is successful thanks to its restaurants. Most McDonald’s restaurants offer both on-site service and auto-service like McDrive. The charge and collection of orders are sometimes divided, although these two steps are merged more quickly. McDrive is located in restaurants near the motorways.

Recently, there has been an increase in the popularity of coffee as a beverage. In this regard, the company has opened a network of McCafé cafes, which are located directly in restaurants McDonald’s, and where you can order any type of coffee and sweet desserts, juice. McCafé resembles Starbucks coffee shops (Peterson, n.pag.). The results show that McCafé is helping to increase profits. McDonald`s has a great popularity and success that it has opened the restaurant and McCafé at Louvre in Paris. Also, the McDonald’s Restaurant Network offers children playgrounds, both in the outdoors and indoors.

The McDonald’s Restaurant Network is a children’s restaurant. Therefore, the design of these institutions was appropriate – bright colors, comfortable armchairs, the presence of many places, posters and posters depicting cartoon characters. McDonald’s has invested $ 1 billion to redesign nearly all of the 14,000 restaurants by 2015. The new design is very similar to the design of Starbucks coffee shops (Peterson, n.pag.). The red gamma was muted in a terracotta tone, the yellow was converted into golden shades, added olive color and the color of green sage. Now in the interior of the restaurants’ less plastic and more bricks and trees, more soft lighting. In almost all restaurants, users have free Internet access through the Wi-Fi.

Core Strategy of the Company

In 1999, McDonald’s was leading the world catering market with a strong brand and total sales of $ 35 billion. Of the more than 25,000 McDonald’s restaurants, about 80% were franchised by approximately 5,000 owners worldwide. McDonald’s is an extremely popular and profitable company, and its sales force grows every year. On average this growth is 8-10%.

The big advantage of the company is that it has developed its own standards for doing business all over the world. It concerns cooking, staff selection, product delivery and so on. In the future, the corporation sees itself as the world’s best network of fast-food restaurants and intends to outperform competitors in terms of quality, service level, sanitary condition and consumer value (Kaufman 52). In the future, the company strives to achieve sustainable development. This will be possible thanks to good customer service. For this company it is necessary to constantly increase the qualification of its employees, to conduct successful marketing policy and to introduce innovations.

Company growth strategy

The company has a goal to take a leading position in foreign markets. For this, you also need to increase the attendance of the company’s restaurants, offering new and inexpensive specialties, increasing portions at the same price, organizing children’s playgrounds at restaurants. The company is constantly exploring the possibilities of the global infrastructure of the company’s suppliers, their experience in managing complex catering establishments, choosing restaurant locations, marketing activities. The company has the goal of opening 90% of new restaurants outside the US. This will help to cover the markets that are not yet covered.

Finance and Franchising Strategy

As for franchising, the company is very strict, because it does not want to spoil its reputation. Business can be conducted only by experienced entrepreneurs. In addition, the company specifically prepares them for the active promotion of the McDonald’s trademark on the ground.

What else should you know about getting a franchise from McDonald’s? This restaurant chain has its own rather tough financial requirements. If you decide to buy a ready-made restaurant in installments, you will immediately need to pay 25% of the total amount. If you open a new restaurant, the sum of the initial payment will increase to 40%. And this amount you can not take on credit. You can make an initial payment from the personal funds of the entrepreneur, at the expense of real estate, while the real estate in which you live is not accepted, a share in business or securities. As you can see, this business is not for entrepreneurs with a small initial capital. Whichever strategy you develop, and whatever motivations you are running, without a sufficiently large capital franchise for this business you simply will not get. And if you consider that the company requires the presence on personal accounts of an amount approximately equal to 500 thousand dollars, then not every entrepreneur will be able to afford it. The very cost of the restaurant depends on such factors as location, profitability, availability of competitors, restaurant status, sales volume and many others. What else should you know about getting a franchise from McDonald’s? This restaurant chain has its own rather tough financial requirements. If you decide to buy a ready-made restaurant in installments, you will immediately need to pay 25% of the total amount. If you open a new restaurant, the sum of the initial payment will increase to 40%. And this amount you can not take on credit. You can make an initial payment from the personal funds of the entrepreneur, at the expense of real estate, while the real estate in which you live is not accepted, a share in business or securities. As you can see, this business is not for entrepreneurs with a small initial capital. Whichever strategy you develop, and whatever motivations you are running, without a sufficiently large capital franchise for this business you simply will not get. And if you consider that the company requires the presence on personal accounts of an amount approximately equal to 500 thousand dollars, then not every entrepreneur will be able to afford it (Noren 61). The very cost of the restaurant depends on such factors as location, profitability, availability of competitors, restaurant status, sales volume and many others.

Location of Restaurants and Construction Strategies

The company chooses such places to locate its restaurants, where there is always a large stream of people. In addition, McDonald’s is aimed at a place where the restaurant will be visible to a large number of people. The phenomenon that the company places its restaurants not only on the streets of the city, but also at shopping centers, airports, and railway stations is rather common because there is always a rather large crowd of people. Abroad, the US strategy of the company is as follows: first open restaurants in city centers, then organize the maintenance of motorists in McDrive establishments (when customers can eat without leaving the car) in remote areas from the center, then explore other areas. The company wants to reduce the costs of preparatory and construction work by standardizing and improving the efficiency of projects, consolidated purchases of equipment and building materials through a global supply chain. The purpose of the activity is to increase the attractiveness of McDonald’s restaurants both inside and outside, providing services in the car, creating playgrounds where possible (Thomadsen 794).

Strategy in the Range of Products and Organization of the Work of Restaurants

As for the product range, the company offers only a limited set of dishes. Its main strategy is not to create new dishes but to constantly improve the palatability of the dishes, especially sandwiches. Sometimes the company introduces new categories of fast food (chicken, Mexican salad, pizza, spicy sandwiches, etc.), adds dishes for lovers of healthy food. With regard to its products, the company has chosen a strategy that introduces new dishes in the menu only temporarily. It helps to analyze the demand for consumer products and tastes. As a result, the company creates new refined dishes that are more appealing to customers. The dish of Chicken McNuggets, for example, was tested for 7 years (Rude, n.pag.). Extremely important for McDonald’s is compliance with all applicable quality standards. This indicates that the company is taking care that consumers receive high-quality products. All restaurants have clear rules for compliance with sanitary standards. In addition, the company strictly regulates the rules of conduct of personnel and puts the customer always in first place.. Now the company is making installation of more advanced equipment, computerization and use of new methods of cooking, allowing faster and more efficiently fulfill customers’ orders.

Sales and Marketing Strategies

According to recent research, more than 70% of people visit McDonald’s spontaneously, and, as a rule, do not plan to eat in advance at this place. Given this research, the company’s management has developed a strategically important line – all establishments are located only in very crowded places, where there is a large congestion of the walking people. Very often, “poppies” can be found near major universities, at the exit from metro stations, at the crossroads of large roads, near entertainment cents. After a little observation, you will notice that wherever you went for a walk, where there was not a large crowd of people, somewhere around there is a McDonald`s.

You never noticed that all employees in McDonald`s are similar. At the cashier you are unlikely to meet a very beautiful and attractive girl. And why? The company’s policy is based on so-called “anti-casting”. Girls are chosen in such a way that they do not attract the attention of the client, more precisely, so that their appearance does not distract the potential buyer from the menu. Chose food, bought, left, went next. The client should look at Big Mac, and not a pretty cashier. All girls working in McDonald`s are prohibited from brightening, doing manicures, using perfume at work, using ornaments (including rings and earrings).

It should be noted that such a policy of the company is aimed not only at visitors. Until the 1970s, only guys worked in McDonald`s, but the feminist movement in the United States made adjustments to the working process of this world giant. The girls achieved equality, and they ordered the management of McDonald`s to allow them to work with the guys on an equal footing (Ahmed 11).

In McDonald`s have a long time to understand that not parents bring their children to them, but on the contrary, children lead to the “poppy” of their parents. Often a child can be very difficult to refuse, especially when parents spend a lot of time at work and do not give proper attention to their children.

In McDonald`s, the system aimed at working with children is thought out for every detail: special playgrounds with slides, children’s menus and toys, birthday parties at reasonable prices, small bonuses and gifts in the form of balls for those kids who are waiting in line with Their parents, an abundance of attention and incredible tolerance from the staff of fast food. All this is aimed at both the child and his mother, because the law says: “Do you want her to fall in love with you, love her child.”

And the most ingenious thing aimed at working with children is Happy Meal. In addition to the standard set of food, they also put a toy there. Typically, toys are released in batches, and if the child liked one, then there is a big chance that he will ask his parents to go to McDonald`s more than once to collect the entire collection.

The company’s standards clearly state the rule that if the customer does not name the size of the portion that he wishes to order, then the largest is put to him. First, it saves time. The order should be accepted in 60 seconds, and if the cashier starts to question, find out what and how the visitor wants, the queue will increase and there will be indignation. Secondly, a large portion and is more expensive, and therefore McDonald`s gets a big profit.

Also, the visitor will be asked to take some additional product – dessert, drink, sauce, something from food. In corporate language, this is called a “hint”. As a rule, the tip is taken not from the head, but it includes those products that have been lying in the “bin” for quite some time and the time of their implementation is coming to an end.

Prices in McDonald`s are constantly changing, but it’s done so cleverly that you do not even notice. By the way, never paid attention to the fact that hot drinks are much more expensive than refreshing drinks? Ask why? It’s simple. Scientists have proved that the use of cold drinks during meals further stimulates the appetite. Therefore, all soda is fed very cold, and even with ice.Also, the visitor drinks tea and coffee much longer, and this is an extra time, which McDonald`s also learned to appreciate and use correctly.

McDonald`s is not a cafe or a restaurant, but fast food. Visitors here should not stay long. If the visitor lingers for a long time, there will not be enough space for new customers, which means that a certain percentage of revenue will be lost. Therefore, the main goal – to create a fluid and force the visitor to leave the institution as soon as possible. For this, all the “conditions” are created. The calculation is that you simply go and leave, making room for other visitors. If you allow a person to move chairs, tables, adjusting them for them, then he can stay for a long time (considering also free Internet), and this will cause certain losses.

Already hundreds and even thousands of articles are written that McDonald`s uses artificial flavor enhancers, as well as special flavors that dispel the smell of fast food for miles.

All this makes them recognizable, and if you try with a few eyes to try a dozen burgers, then you will definitely guess the one that is with McDonald`s. And the smell of their food is very difficult to mix with anything else.

Back in the late 50’s, or rather in 1958, appeared the first instruction, later called the Bible McDonald`s. It painted everything down to the smallest detail. From the temperature and time of roasting cutlets before any employee of the company should behave. At the very beginning, the Bible had 75 pages, now there are about 800 of them. By the way, in this instruction it is not only how the employee should behave, but also there are recommendations regarding the behavior of the client, how to behave in this or that situation.

Human Resource Management (HRM)

McDonald’s considers people to be a key factor in the company’s success, so staff is carefully selected. And the best illustration of this is the fact that most top-tier leaders began their careers in the company from scratch in the very first restaurant. The growth of the company is 20% per year, geography is expanding, so new employees are needed constantly and in large numbers. McDonald’s is sure: if a company wants to grow in the market, then the talent management program is the first necessity, this is the basis for success. Talk about the growth of the employee begins with his first day of work. Properly built talent management system benefits every employee and at the same time business as a whole. Work with the talent management program is built step by step. At first, the company carefully looks for talents and potential employees with the right qualities. Later, managers evaluate their activities already in the process of work and through this can analyze each employee, identify its strengths and weaknesses (Gould 782). The company has its own recipe for success in attracting and evaluating employees. It involves evaluating not only skills and certain achievements but also character and behavior. It is important to determine if a person can take leadership positions in the future. In addition, the company offers ongoing training for employees, which will further help them improve their qualifications.The focus at McDonald’s is on the work experience – both basic job responsibilities, and long-term tasks, cross-functional projects. The company believes that each employee is unique and gifted, and therefore can show leadership skills. They are conventionally divided into 4 groups: “leadership for themselves”, “leadership for others”, “leadership for managers” and “leadership for the market as a whole.” For each type of leadership, the company identifies specific tasks and behavior.McDonald’s got acquainted with the results of this research and on their basis developed its strategy for assessing the growth potential. Initially refusing to consider the level of involvement (since it is very difficult to assess), the company decided to focus on the aspirations and abilities of employees. The desire was decided to assess in terms of the desire to be a leader, and the ability – in terms of focus on gaining knowledge.

McDonald’s restaurants live in two modes: a day (from 8 am to 12 pm) and night (12 pm to 8 am). For night shift workers, there are higher rates for hours worked. The extra charge for work at night is about 40% compared to the rate of day workers. Social benefits for day and night shift employees are the same. Girls are generally not taken to work as night watchers. Free lunch – an additional motivation to work in restaurants, so that after school, coming to work, a snack, not everywhere the firms feed their employees. Over a shift of more than 8:35 give a second dinner. There is always an excuse to stay at work a little longer if you like the company’s products.

Fundamental Laws and Principles of the Organization

The law of synergy: any complex dynamic system tends to get the maximum effect due to its integrity; Strives to make maximum use of the opportunities for cooperation to achieve effects. This law manifests itself in the chosen organization since, without interaction of the elements of the system, the organization will not be able to achieve the set goals, such as increasing profits, improving product quality and reducing costs, etc. Law of information and orderliness: the more information the organization has about the external and internal environment, the more likely it is to function. For the McDonald’s company under consideration, awareness and orderliness are essential for effective operations. For example, knowledge of the market price for manufactured products, timely recognition of the laws adopted, regarding production activities. The law of self-preservation and struggle of organizations for survival. This law is inherent in all financially sustainable organizations, including McDonald’s. In the sphere of fast food, a large number of companies are implemented, therefore, McDonald’s has a lot of competitors, which forces it to constantly develop: improve the quality of services or products, improve the skills of employees, etc.

Analysis and Main Findings

Enterprises-competitors in the mass have prospects of preservation of the reached positions whereas prospects of development are problematic, and also the variant of a tendency of extinction of activity of the bulk of competitors is possible. Having analyzed the company’s activities, one can safely assert that the main strategy is differentiation. For this, the company always focuses on local markets. it helps to produce products that are of interest to the local population in addition to the main menu. It brings significant profits to the company as they do not spend extra money on testing products that will not attract potential buyers. In addition, research shows that the company mainly uses resources of local production. that is, if the McDonald’s is located in Austria, then they do not buy products in the United States.

It is also important to study the entire organizational structure of the company. Organizational structure has a direct influence on the implementation of the strategy of the enterprise, its interaction with the external environment and effective solution of the tasks. Organizational structure of McDonald’s company is based on the linearly functional organizational structure of management, which assumes that the staff (functional) services receive the authority to manage the lower level services that perform the corresponding special functions. At the top of the hierarchy is a meeting of auctioners, because the company is joint stock company. For direct management of the company there is a general director who is responsible before the meeting of shareholders and he directly manages all departments of the company. Accordingly, each department is created on the basis of a geographical indication and has its representation in each of the countries of the region it represents. So McDonald’s company sells its products either through franchising or directly to its facilities, respectively, the structural units of some countries are different. There is also a control unit that is subordinated to the Shareholders’ Meeting, and has its own divisions to oversee the international departments and offices in each of the countries.

The system “Risk Analysis and Critical Control Points” has been introduced in institutions and supplier enterprises, which allows controlling the process of production of products from the farm to the consumer and ensure the high quality and safety of the products that visitors are offering. According to McDonald’s requirements for the quality and safety of products for suppliers, the supplier must necessarily have a person responsible for food safety, an embedded and verified food safety system, food safety training for all employees, a product tracking program and a sanitation audit program. This helps to create a favorable atmosphere in the company so as not to cause costs. An analysis of the organization’s activities shows that in the organization there has not been any recent event to improve the situation and search for incentive in-house reserves. Not perfect management methods are applied, which extinguish the interest in the full use of actually available reserves, workers have no interest in increasing production efficiency. The low effectiveness of intra-production relations is also due to the fact that in fact, the initiative and enterprise of workers are not encouraged, but often, on the contrary, suppressed. Similarly, managers do not bear economic responsibility for the efficiency of the use of production assets, labor and material resources.

More detailed analysis of the company’s activities can be done through PEST and SWOT analyses.

PEST Analysis

As for the PEST analysis, the opportunities for the environment include the ability to create more new products, develop new advertising channels. Some restaurants can be moved to more fashionable places and develop a separate price policy for them. You can place your restaurants in different areas at your own expense. The company can develop advertising in the other direction, which will attract other categories of consumers and attract managers to develop and implement innovations. As for the main threats to the company, these are currency fluctuations, as the prices for dishes are standardized. Nutrition in restaurants of the network causes certain health problems – McDonald’s has repeatedly acted as a defendant in cases of harm to health. There is a growing number of restaurants that reduce food prices – Burger King, Starbucks, KFC. By improving the quality of the ingredients, you can reduce the risk of food impact on health. Since prices are standardized, competitors can lower the price of their products, which will lead to an outflow of customers.

SWOT Analysis

As for the SWOT analysis, the following can be distinguished. The study should begin with the analysis of the strengths. They include the fact that the company has a high degree of credibility among consumers, allowing them to take leadership positions around the world.The plus is that the company always tries to improve the quality of its products because it cares about its consumers. In addition, it is remarkable that at the same time the company does not raise prices for products, and on the contrary constantly searches for methods and introduces innovations in order to reduce production costs. Moreover, every person all around a world knows how McDonald’s logo looks like. The company also tries to support many social and charitable projects and allocates considerable funds for it. A good indicator is that the company’s representatives know how to operate in different regions and countries of the world and win customers. For people on a diet, it is important that the company writes about the composition of the product and its nutritional value on each package. It, even more, attracts new buyers and suggests that the company cares about the health of its customers. Weaknesses and threats are the fact that advertising is directed mainly at children. The disadvantage is that the healthy lifestyle and consumption of healthy peasants are now gaining popularity. Companies need to partly adapt to new environmental conditions and introduce products that will be available to all consumer segments. In addition, you need to consider the prices of products. Although the prices in the company are not very high, now there are a large number of competitors that offer similar products at lower prices. It should be noted that McDonald’s is not enough innovative products. In terms of opportunities, the company is one of the leading in the world and it is necessary to introduce innovations, apply new technologies, products, update designs that will increase the flow of people and profits.

«4Ps» Analysis

To the basic elements of marketing include the price, product, location and promotion. The 4P theory received such a name because of its components: price, place, product, promotion. One of the most important components of the marketing complex is Product or assortment policy. It directly depends on the direction of cash flows, its valuation and forecast. Concerning the McDonald’s products, although the range is small but quite tasty. The restaurant offers dishes for both children and adults and people on the diet. In addition, the restaurant has a large selection of drinks. Everyone can choose anything to your liking. McDonald’s fully satisfies the tastes of its consumers, so it is successful in this regard. Price, as the most important economic tool of the marketing complex, has a direct impact on the nature of the profitability of the enterprise. After all, to determine the price of any product, the most important indicators of its feasibility are the demand for similar products, the sensitivity of purchasing power, competitiveness, and the level of costs associated with its production and sale. McDonald’s offers its products at affordable prices for all consumer categories. s for all consumer categories. Except that consumers can buy more at a lower price, the company sells products in special menus. Promotion of goods on the market is made thanks to advertising, along with which public relations (information), direct marketing and Internet marketing are. All these strategies are aimed at promoting the product by stimulating the activities of sellers, intermediaries and, of course, buyers. The company spends a lot of money on its advertising campaign. In addition, McDonald`s is often involved in a variety of sporting events, such as the Olympics. The main form of advertising is online advertising and television advertising since it attracts the most consumers. Currently, everyone knows the McDonald’s marketing campaign. The phrase “I’m loving it” was heard by almost every person on earth. Therefore, it can be argued that their marketing moves are quite successful. The choice of a sales method is crucial in determining the direction of sales policy. The place can be carried out either by the enterprise itself or by the use of trade intermediaries. McDonald’s chooses a place for his restaurant where there is always a large crowd of people. In addition, the company prefers to build restaurants at train stations, tracks, and airports, as people often want to have a quick bite before moving on. This is a big plus for the company. In addition, the company often places restaurants to be a place for people on the street. So they can relax, breathe fresh air and return to their work again.

The company McDonald’s has internal regulatory documents that regulate the activities of staff (the organization’s charter, labor code, various federal laws, consumer protection law, etc.). Control over the observance of these documents takes place through direct administrative regulation. In addition, there are penalties (including liability) in case of violation of labor laws or disciplinary offense. In this organization, economic methods of management are actively used, regulated by legal documents. For example, the most basic motive of labor activity and a monetary measure of labor costs is w / n, as in the company there is a bonus and bonus system to encourage employees, in addition, employees are provided with free meals. To encourage employees to work well, McDonald’s uses competition and competition – at the restaurant, region, country and between countries. Similarly, to consolidate the team used various corporate events under the slogan that McDonald’s is one big family and McDonald’s takes care of the lives of its employees during and out of work. In the company under consideration the following methods of social impact are applied: in order to qualify for a more promising position, employees of some companies oblige the year to work on the position necessary for the company; In employees develop the feeling that they are doing important work and valuable to the company, the fundamental aspect of the philosophy of HR management in McDonald’s is to instill in employees a sense of pride in the good performance of work and recognition of their achievements, the company’s policy regarding discipline is based on training and correction rather than punishment.

For analysis, the model of AJ Strickland also can be used, which places strategies in the coordinates “market growth – the competitive position of the organization”, for choosing the McDonald’s reference strategy. It can be concluded that the McDonald’s organization we chose is in the second square, as the rapid market is currently growing rapidly, and the company in question is in a strong competitive position in the fast food sector. The benchmark for this enterprise can serve as a strategy for integrated or diversified growth.

Conclusion and Recommendations

Thus, the company McDonald’s, as a vivid example of the application of management functions in its activities, can serve as a model of the management process for other organizations. Nevertheless, we will consider recommendations on possible improvements on the example of the motivation function. Despite the fact that the motivational policy of the management of this company is quite good, McDonald’s still has its drawbacks. The main disadvantage is that career growth in the company is rather slow. Only an employee who has at least three years of experience can apply for a higher position. This leads to the fact that the company now has a shortage of experienced workers. This period needs to be significantly reduced to 1-2 years. It will allow employees to work more actively, to acquire new knowledge. In addition, it will open up more opportunities and desires for employees to improve. The company’s big disadvantage is that it is not very prestigious in terms of employment among people. Most teenagers do not want to work at McDonald`s, as they consider it a hopeless job. But it should be noted that all that they see it is only the cashier and the waiter, who issues the order. Ordinary people do not understand that the waiter is only the lowest link. The company should pursue a new policy to attract new staff. To do this, show everyone that everyone has a prospect for development. All that is needed is just a desire to grow and reach heights.

Thus, by analyzing the motivation function in detail, it is possible to develop recommendations for improving the motivation of the enterprise in question.

The company has four main principles: quality, culture, cleanliness, goodwill. All principles are closely intertwined. Each of the items is necessarily present and developed at a high level. And it is not just words. Once a certain time in McDonald’s comes to a test. Only not in the usual sense of the word. There comes only one person under the guise of a visitor and checks at what level each point is developed. All the observations he then reflects in the control sheet of observation. The measurements in it go in percent. The best restaurant on the basis of a certain period receives a solid bonus, which is divided in certain proportions between the top management and ordinary members of the brigade. To get the title of the best restaurant you need to try very hard. The requirements are quite high. All members of the team should work as one team. If someone does not work well, then immediately it will be reflected on one of the four criteria. Here on these principles grew the corporation McDonald’s, the world’s leading catering. To achieve its goals, McDonald’s has to pursue a flexible pricing policy, expand the range of products, use market research data, make decisions on the release of goods for the unreached market area, expand its network around the world, take part in charitable actions and seek ways to reduce costs.

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