The Power Of The Mcdonalds Brand

The Power Of The Mcdonalds BrandMcDonald is one of the most popular fast fodder brands in the world. It started stock in fifties and now it is fortune worldwide chain of 30,000 restaurants. McDonald restaurants undoubtedly present a very useful example of sociological artifact. several(prenominal) artifacts of modern world has been very well organized as Macdonalds popular brands, promotional strategies with the famous toys and films, its involvement in the charities and its saturation advertisement.More than 75% of McDonald is own and operated by local men and women. Its serves to a greater extent than 40million commonwealth per day. It drives 80% of its revenue from 8 countries like Canada, Brazil, Germany, France, Japan, UK, Australia and USA. The greatest achievement it got was creating a image in the minds of people and introducing them to the fast feed culture. Delivery speed, node c ar and hygiene cautions be the main driving advantage it has which friends the Macdonal d to attract many customers. They have created a incorporate symbol and saturated advertisement has helped the Macdonald to draw and quarter a brand image and logo in the minds of millions of people.Overall McDonald strategic object is called forge to win. in that respect concentrate on is not to be the biggest fast food chain in the world but the best fast food chain. McDonald strategic thinking behind this plan is creating better experience through the execution of multiple initiatives surrounding the five factor of exceptional customer experience. (McDonald, 2009)A key element of the MacDonald schema since the descent has been to own all the property on which the MacDonald was built doesnt matter the property is franchised or company owned. Rental money differs from property to property but it has been estimated that McDonald fork up more money from its rents of the property than the franchise fees it charges.The success of the MacDonald since its beginning toilette be attributed to the customers service it provides. As the restaurant wants to be known for its consistent blue eccentric food and uniform method of preparations. Macdonald has revolutionized the restaurant industry by inventing the limited menu fast food restaurant. Some inventions it has made are the demonstration of the indoor seating and drive through windows. other invention was the introduction of the play area. MacDonald is continuing new inventions to facilitate the mass customization process. In 2001 McDonalds began standardizing its applied science its animated stratum of sale system with the office system in more than 11,000 stores in the United States. The company is investing in a common point of sale which exit be available to use all over the world in its branches. (typepad, 2009)McDonalds facilitates the exchange of value by matching the money salaried by customers with quality and variety of products and services resulting to the customer feeling of having re ceived their moneys worth and even more than what they paid for. McDonald tar circumvents the customer satisfaction by supply the preferences to make the customers feel satisfied ab place the value exchange. McDonald is recommend for the family or friends gathering as well.MCDONALDS VISIONTo be the best and leading fast food provider around the globeMISSION STATEMENTMcDonalds vision is to be the worlds best quick service restaurant experience. Being the best means providing bang-up quality, service, value, and cleanliness so that we make every customer in every restaurant smileOPERATIONS AND BUSINESS STRATEGYThe definition of business schema is a long term plan of action functioned to achieve a particular goal or set of goals or objectives. Strategy is managements game plan for strengthening the performance of the enterprise. It states how business should be conduct to achieve the desired goals. Without a strategy management has no roadmap to guide them.In McDonald the business strategy for the company is to make food fast available to its customers at a very low competitive price but to get profit as well by reducing the salute of the product and expanding the business world wide.operations strategies play a very important character reference in achieving organizational goals. By using these strategies an organization controls and maintains all of its operations. So these should make after a comprehensive marketing analysis jibe to capabilities and resources of an organization.Operation management strategies in McDonald are being made by made by top management. These strategies are implemented in all the branches of the McDonald and these strategies are distributed to all its franchise branches in the written form. So there are operational managers in all the branches that control all operational activities.McDonalds has aimed three strategies for its future scenarios. These customers values, customer gimmick and optimal operations. Together with th e digital strategies, it helps to create new ideas for the company. The stores are characterized by the operations team as miniature manufacturing facilities. With its goal to improve the manufacturing process (inventory control, work planning, financial control and point of sale order entry) that help the store. (bized, 2009)REDUCING COST WITH MORE EFFICIENT EQUIPMENTThe challenge facing the global equipment suppliers when they anatomy the fryers for our restaurants is to develop such kind of equipment that are more energy efficient and gives better taste while improving the crew efficiency and using less planning inunct.The low oil Volume Fryer is our next generation fryer. LOV improves cooking efficiency, simplifies filtering and cleaning, and provide enhanced environmental benefits.The LOVs innovative design allows restaurants to cook the same tot up of product with approximately 40% less oil. It also uses approximately 4 % less energy than standard fryers. (Gallagher, 2003 )In McDonald lighting represent an important intention in reducing the cost of its operations. McDonald uses fluorescent low consumption lighting in the kitchen. Tests revealed that each restaurant saves 11,000kWh of electricity each year.Packaging plays an important role of McDonald brand not only for quality, integrity and safety but also in its visibility to our customers. McDonald also use its cooking oil in its conduct operation which has significantly reduces the cost of operation as well.The manuals of the McDonalds employees not only emphasize the organizations motto and QSCV, it also spells out everything they need to know to perform their tasks efficiently. It includes diminutive rules on cleaning, food preparation and employees grooming and hygiene. They help en legitimate efficiency, predictability, and control in the occupation and customer service.In order to achieve its business strategy goals, McDonald is emphasizing more and more on reducing its cost of operatio nal activities. In order to reduce the cost McDonalds purchases its potatoes from corporate farmers in farming states not the commodities market. Consequently it limits its contact with price fluctuations that might have occurred by using the commodity exchange to get those goods. (typepad, 2009)Aside from offering hamburgers and invigorated fries, McDonald has start serving the family treat and as a community centre for the senior citizen. It has also start giving indoor playgrounds and promotional toys to its kids as well. As this trend keep open there is an extension of more service-oriented technologies is needed. They can conduct studies and surveys to better know which among the different alternatives serves the companys objectives the best. These might include robots taking orders instead of humans, automated processes of food production (typepad, 2009)McDonald has a policy to be in the market as a market leader. In order to keep its leadership it keeps low cost and gets mo re income by selling food at cheap price. Food made with the help of machine is considered more hygienic however the continuous development in the technology McDonald and especially its employees as they have to serve quick services. Computers and smart cashiers are used by the employees so that they would not get confused and they are provided with customized database management system.These all operational activities are conducted in all the branches of McDonald worldwide in order to successfully implement the business strategy of the McDonald.MCDONALD LAYOUT, PROCESS font AND USE OF TECHNOLOGIESMCDONALD KITCHEN LAYOUTThe strategy refers to the overall working and general environment offered by the McDonald.It includes the personalised level, service and product layout, interior and exterior.McDonald has a policy to serve the fresh food to it customers in a minimal time and at the same time they want to get as many as possible customers to get the more income. The most importan t thing on which McDonald operational department concentrate is the customers satisfaction. Customers satisfaction can only be achieved if it serves the customers with a good quality food in a quickly with minimum price. In order to perform this whole process McDonald has a very specific type of layout. This layout gives an docile access to the staff to serves the customers in a quick way. At the till when a staff serves the customer, staff has a everything in its reach required by the customer. (Gallagher, 2003)McDonald keep maximum number of tills opens to serves the customers and each staff takes average one minute to serves the customer. The chairs are arranged in such a way that it gives a minimum disruption to the people who are standing in the queue.In the kitchen department McDonald has selected high efficiency fryers which take minimum time to fry the chips. Operations manager has assigned the task to different staff members according to their ability.McDonald get most of the things in ready to serve form from its main headquarter which decrease the cost of producing the food and it also help the McDonald to keep the quality same all over its stores. Staff in McDonald only has to put the food in oil and it gets ready to serve. It also helps the McDonald to save lot of storage cost.In order to keep the system runs smoothly McDonald always keeps good relation with the suppliers. Their supplier makes sure that they deliver the goods to McDonald in the minimum possible time. (Swearingen, 2003)STRATEGIC IMPORTANCE OF LAYOUTProper layout enablesHigher utilization of space, equipment and people alter flow of information, materials or peopleImproved employee morale and safer working conditionsImproved customer/client interactionFlexibilityLayout design mean the overall working and general environment offered by the McDonald. It includes the personal level, service and product layout, interior and exterior etc.STRATEGIESExteriorMcDonald sets its premises in p roper manner to handle any number of customers easily. The building design is standard world wide but it may be have some difference in size or in exterior according to the localisation principle. It enables them to save time, satisfy their customers, comfortable environment for both employees and customers. Ray Kroc opened the first McDonalds franchise in 1955 and today there are over 30,000 restaurants worldwide. McDonalds objectives were to overhaul older McDonalds buildings with a fresh new look, while still maintaining the primary iconic sign design and exterior facade elements. The restaurant sign design had to carry the restaurants into the next decade and follow their unique Forever Young branding.InteriorInteriors are set to be depoliticized. In addition to new restaurant lighting, menu boards, artwork and graphics, new materials will offer choice when it comes to decor selection. engineering perks include Wi-Fi, programmed music, and video. (typepad, 2009)MCDONALDS USE O F TECHNOLOGIESMcDonalds U.S. created a Store Technology Board to help deliver on the Plan to Win. The board is comprised of corporate and franchisee representatives and is responsible for guiding the development of technology in McDonalds U.S. restaurants. It is also responsible for ensuring timely, cost- useful delivery of high-quality technology solutions providing effective and timely communication with McDonalds stakeholders and leveraging technology talent and resources where they exist.In 2001 McDonalds began standardizing its technology by integrating its existing point-of-sale and back-office systems in more than 11,000 restaurants in the United States. The company now is investing in a common POS system for use around the world. New-POS, a product developed by Savista, will help McDonalds improve restaurant productivity and enhance the customer experience. In addition, moving to New-POS will create a common platform across the globea go bad that will better allow McDonalds to leverage future technology in the restaurants.McDonalds implemented an integrated electronic payment system that could be adapted to get hold of future technology needs as well. He says a significant amount of time also was invested in finding a solution that would permit debit, credit and gift card transactions to be processed through the standard POS system in less than four seconds.(swearingen, 2003)McDonald uses the best equipment to carry out the day to day operation in its outlet.MCDONALD EXPLOTATION OF VALUE CHAIN AND QUALITYPORTERS tail fin FORCES ANALYSISCompetitionRestaurant industry is highly competitive industry. There are many small fast food businesses in the industry that fight each other to improve their customer base. McDonald is not exception to this. Since it composition in 1940, MCD has excelled in this sector. Nevertheless to stay in the competition, it started with MCafe. This helped the company to stay in the business as a major fast food business. Anot her major step came out when McDonald started breakfast to compete with the existing businesses serving breakfast. Hence this industry is extremely competitive and the MDC should be up to date with customer taste and preferences. Quality is very important for McDonald in order to stay in the market but at the same time it has to keep the prices minimum to maintain the cost leadership.Ease of entryAlthough it is sullen to enter in the restaurant business as it demand a lot of investment and it is hard to establish a distinct brand name as well. There is a cost of entry in the market and there is high look and development cost. Large established companies like McDonald do make it more difficult to enter and succeed within the marketplace, new entrant find that they are faced with price competition from existing chain restaurants. At the same McDonald working hard to maintain the quality same throughout the time. It is aware that if it via media on its quality then it will make very much easier for the new entrant to attract the customers with better quality of its food products.Figure 1.1SubstitutesMcDonald keeps a very close watch on its quality because it is aware that customers have many others substitutes of its food products. e.g MDC burgers, Beverages and dairy products.Strength of SuppliersThe suppliers power in the fast food industry is relatively small unless the main ingredient of the product is not readily available.Strength of BuyersRelatively strength of buyers in this industry is relatively low.(Ifm, 2009)PORTERS FIVE FORCES ANALYSIS OF VALUE CHAINThe goals of these activities are to offer the customer a level of value that exceeds the cost of activities, thereby resulting in a profit gross profit for McDonalds.Figure 1.2The primary value chain activities areInbound LogisticsThe receiving and warehousing of raw materials and their diffusion to manufacturing as they are required. McDonald has an efficient warehousing and transporting goods to i ts branches. All the products are made in the warehousing and goods are distributed as per the requirement of each branch.OperationsThe processes of transforming inputs into finished products and services. McDonald has a very good operation system as it has trained staff for each task in the kitchen. Most of its product is already in the ready to serve form. All they have to put them in the ovens or in the oil and the product get ready to serve in the minimum possible time which normally takes from 1-5 minutes.Outbound LogisticsThe warehousing and scattering of finished goods. McDonald has a very well established transporting system. As all of its products are prepared at the warehouse, so in order to improve the distribution process it has applied the IT technology which inform the warehouse body that which branch is running out of the products, so before the products get finished it immediately make available the product to the branch. This process is very cost effective as branc hes do not need to have the stock room for the goods.Marketing bargainThe identification of customer needs and the generation of sales.ServiceThe support of customers after the products and services are sold to them.The primary activities are supported by Technology developmentTechnologies to support value creating activities. The value chain model is a useful analysis tool for defining a firms core competencies and the activities in which it can pursue a competitive advantage as followsCost advantageBy better understanding costs and squeezing them out of the value adding activities.As per the porters five forces analysis McDonald deals with factors outside a industry that influence the nature of competition within it, the forces inside the McDonald influences the way in which the firms compete, and so the industrys likely positiveness is conducted in the Porters five forces mode.(Ifm, 2009)Figure 1.3Further there are Secondary support activities which directly supporting the ope rational activities of the business. HRM department make it possible for the business to get the energetic people to perform the operations. They always keep motivating the staff to work hard. The Management makes possible to select the technology which is cost effective together with the efficiency.CONCLUSIONMcDonald is a very well established organization. The success of the McDonald is completely based on the extensive research of the market internal and out-of-door forces. It has done research on the people behavior of specific country, on their culture, buying power and social issue. McDonald has paid special attention on the location of the business, its interior and exterior outlook and types of technologies it going to use to get the maximum production at short time. The most important thing which it focused on was the quality and the market forces which directly affect the business.