McDonald's Business Analysis
Management
Since 2004. McDonalds CEO has been a man named Jim Skinner. He has
a real passion for the job. He believes in training and preparing McDonalds
workers. In fact he created a 9 month leadership institute (Kowitt, 2011). He also requires all his
executives train two people. One who can immediately replace them and one who
would be prepared to replace them in the future. He is a strong believe in
having qualified staff. Some may look at it as overly controlling while others
perceive this to be well thought out planning.
Production:
McDonalds utilizes mass
production, mass production of food in a quick and efficient manner. The
mass-production process requires each restaurant chain to have a distribution
network to carry the food to every restaurant .Warehouses store enormous amounts
of everything a restaurant needs, including food, paper products, utensils and
cleaning supplies. The warehouses then ship supplies to each restaurant by
truck. Warehousing and distribution, just like the management of the chain, is
centralized rather than handled by each restaurant (Standards, 2011).
Human Resources:
McDonalds has a man who is the
overseer of all human resources for McDonalds’ over 400,000 employees. His name
is Richard Floersch. Of course, when an employee from Red Creek, NY needs a day
off or has an issue with their insurance, they can’t call up Richard for help.
Each restaurant is run by a store manager who is in charge of all types of
human resource problems. Most of McDonalds restaurants are individually owned
and operated, but all are still supposed to follow the general rules and
regulations of the entity of McDonalds. Therefore, there are bound to be
problems which an employee feels are not solved at their restaurant level and
would feel the need to call out to higher management. In that case, employees
are given contact information for alternate sources to report their problem or concern
(Standards, 2011).
Financial:
McDonald’s financial focus
includes the evaluation of past performance and appraisal of future
opportunities, helping to ensure the company maximizes its strategic
capabilities. McDonald’s financial functions extend from each individual
restaurant up to the Board of Directors. Each individual McDonald’s restaurant
is structured as an independent business, with restaurant management
responsible for its financial performance.(Finance at McDonalds, 2008).
McDonald’s Finance Department has two key areas of responsibility: financial
reporting and management accounting. Although each of these functions has
different priorities, working together ensures the best financial position for
the company now and for the future. McDonalds utilizes what they call KPI ( key
performance indicators) as a means to measure and evaluate their performance. They
earn a profit from both the sales of the product and from the rent and royalty
income from the franchised restaurants.
Marketing:
According to McDonald's Global Chief Brand Officer Kevin
Newell , McDonalds marketing strategy
will be “Focusing on making more engaging ads, aggressively developing menu
items and fostering what he calls children's well-being”(York, 2012). The
restaurant is trying to hone in on the fact that people are more and more aware
of the foods they are feeding themselves and their children and are demanding
healthier options. McDonald’s isn’t only focusing on healthy options but also
food education and exercise. In 2012, McDonald’s was a sponsor of the Olympics
and utilized this position as a means of marketing toward the healthier
consumer. Marketing included national TV
spots, print, radio and digital ads.
References:
Kowitt,
Beth. (2011). Why McDonald's wins in
any economy. Fortune.
Standards of Business Conduct. ( 2011). Retrieved
November 26, 2012 from http://www.aboutmcdonalds.com/content/dam/AboutMcDonalds/Investors/9497_SBC_International_ENG-NZ%20v3%20final%20w%20letter%20061411.pdf
Finance at McDonalds. ( 2008). Retrieved December 4,
2012 from http://www.mcdonalds.co.uk/content/dam/McDonaldsUK/People/Schools-and-students/mcd_finance.pdf
York, Emily. ( 2012). McDonald's tying Summer
Olympics to new effort to promote children's well-being. Chicago Tribune.
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