Business Environmental Analysis Of McDonalds

Published Date: 23 Mar 2015

McDonald's is one of the largest food chain all over the world is serving remarkable number of customers worldwide daily. McDonald's has made a high profile brand image because its quality food, quick service, cleanliness, everyday value and so on. Experienced management, advanced operational system, customer-friendly policy, modern infrastructure, information system etc. have given McDonald's unique position to compete the highly competitive market. In 1948 McDonald's begins its activities in U.S.A and it experienced the taste of success from the beginning. In 1955 it was introduced as 'McDonald's Corporation' founded by Ray Kroc. In 1967, the company started to extend its business worldwide. Now McDonald's is one of the biggest and reputed global food service retailers in the world. According to the annual report, McDonald's operates 32000 restaurants across 117 countries (Annual Report, McDonald's Corporation 2008). In 1974 McDonald's first opened its restaurant in UK at Woolwich, London and it launched about 1200 stores all over the country. Not only in food service retailing but also in job market it provides huge range of opportunities for a remarkable number of people worldwide. Moreover, as McDonald's has high brand image, it gives huge returns for its shareholders. However, sometimes McDonald's is criticised for its high turnover rates and junk food.

2.1: Business Environment

The business environment means the overall (internal and external) circumstances of organization. Every organisation including McDonald's is more or less influenced by environmental factors. In business discussion, internal factors of an organisation are discussed as a part of Micro Environment and external factors are treated as Macro Environment.

2.2: Macro environmental analysis

Macro analysis is also known as PESTEL analysis which stands for-

Political factors

Economical factors

Social factors

Technological factors

Environmental factors

Legal factors

Political factors

The business operation of an organisation is always influenced by the policies of state and its government. McDonald's business is also under the control of government's rules and regulations. The main issue of controlling food business is health and other issues are license, employee laws, tax issues etc. McDonald's follows the local government's policies as well as foreign investment policies on its franchise business strategy. Political instability of local state is also affects McDonald's business.

Economical factors

Economical factors always come as vital issue to business organisations. For example, more or less all companies are affected by ongoing global economic slowdown. Due to international business operation, McDonald's faces different scale of tax and revenue measurement in different country. McDonald's also faces difficulties because of international currency fluctuations especially in its global food distribution. Local economical condition is also responsible for affecting McDonald's operation. If the local economy is critical, people are usually discouraged to spend more money for their food. As a result, company is affected.

Social Factors

The life style of people is being changed and the demand of this change affects McDonald's. The people of this modern urban society expect the highest level of service and all the latest facilities from a hospitality organisation. In addition, this changing demand is different in society to society and country to country. For example, in India, Hindu people prefer vegetable, Muslim people avoid pork. To fulfil the customers' expectation, McDonald's needs to research the market and also needs to provide effective food menu.

Technological factors

The impact of technological innovation is also considerable to meet the customers' expectation. As all existing food chains for instance, KFC, Pizza Hut etc, compete each other, McDonald's has to ensure the all technological access to influence the customers. Modern and speedy distribution channels, easy and quick payment facility, customer entertaining equipment in store, wireless internet facility in all stores etc. can help McDonald's to keep on its success.

Environmental Factors

McDonald's is criticised for using some harmful elements for example, non-biodegradable substances for its drinks glasses. Styrofoam containers are also being used in McDonald's for meals and it is seriously discouraged to use. Environmentalists criticize McDonald's because of food packaging based on polystyrene. For the greater interest of environment issue, franchisees are called by environmentalists to be aware about this issue.

Legal Factors

It is mandatory to follow some rules and procedures to run its operations. For example, registrations, taxes, stuff laws, safety rules etc. In Muslim countries, it is important to have Halal food authorisation and McDonald's should care the customers' belief on it. If every company maintains the legal process, not only the company itself but also every part of our society will be benefited. McDonald's, as a giant food chain, has to be seriously responsible regarding legal issues.

2.3: Micro Environmental Analysis

Micro environment covers the internal factors which influence the operations of organisation. McDonald's is influenced by its internal factors .The internal factors are-

Suppliers

Competitors

Customers

Publics

Intermediaries

Suppliers

McDonald's has its own suppliers and it practices very close relationship with suppliers. McDonald's divides its suppliers into two divisions who are called direct suppliers and indirect suppliers. The indirect suppliers deliver the ingredients to the direct suppliers and the direct suppliers produce the food for McDonald's. McDonald's understands the importance of its suppliers and always co-operates with professional manners. (aboutmcdonalds.com)

Competitors

As the global market of 21st century is highly competitive, McDonald's has some strong competitors, for example, KFC, Burger King, Pizza Hut etc. all competitors have good brand image, remarkable market share, long business history and so on. On this competitive situation, McDonald's needs to consider its competitors power to ensure its dominating position.

Customers

McDonald's is serving millions of customers daily. In last three months, McDonald's served about 329 million people in UK (News Mirror, 22 Oct, 2010). In first world's countries, all people are targeted as customers by McDonald's. It serves foods for almost every kind of people. McDonald's takes the customers as their first priority and tries to ensure maximum satisfaction.

The Public

The public includes the external groups who are interested and related with the company. McDonald's works with considering the power and importance of different groups for instance, Media, central and local government, financial community, consumer group, pressure group and so on.

Intermediaries

As the business operation of fast food chain is different from other hospitality organisation like hotel or air lines or tour operators, the intermediaries are not required in this case. To promote the business, promotional activities are normally done by the company and every restaurant works as its distribution centre.

2.4: Analysis of Competitive Forces on McDonald's

Michael Porter's analysis regarding five important forces of business environment can be utilized on business operation of McDonald's. Basically, another for making their own position stronger in the market. By analysing these forces, company can realize its present position in the competitive market

Porter's five forces are-

Threats of new entrants

Power of suppliers

Power of buyers

Threats of substitutes

Competitive rivalry

Treats of new entrants

The new entrants in the market can make some considerable treats for existing companies. If the new entrants really carry high brand value, the existing companies' profit, market share and overall value will be affected. For example, if KFC opens a new store in a certain area where McDonald's already exists, it will make some barrier for McDonalds. On the other hand, it is also difficult to find a suitable location to open a store in a new area.

Power of suppliers

Suppliers' power is another threat for business organisation. The company who is going to produce the product, it needs some necessary raw materials. As raw materials are normally delivered by suppliers, producing company depends on suppliers in this case. So, the nature of the relationship between company and suppliers affects the business. McDonald's realizes this truth and practices friendly relationship with its suppliers.

Buyers' power

In restaurant business, customers are playing the role of buyers. In this case, buyers are powerful because, they have thousands of ways to spend their money. They choose the quality food with cheap price and standard service. McDonald's tries to have the maximum numbers of customers from the same competitive market by providing outstanding service.

Threats of substitutes

If the company's product is easy to substitute, it may affect the company. For example- if other restaurant can produce the 'Big Mac' with same taste like McDonald's, it will lose its customers. So, company needs to make something effective and sustainable to ensure its speciality.

Threats of rivalries

The competitive position of a company is depends on its numbers of competitors and the power of its competitors. It is needless to say that in present global market, competitors are the main barrier of a company. McDonald's takes this challenge as their mission to achieve its destination.

Chapter three

SWOT Analysis of McDonald's

The term SWOT is used for evaluating the actual position of organisation. It is very effective technique for measuring the positive and negative sides of an organisation. SWOT stands for-

Strengths

Weaknesses

Opportunities

Threats

a) Strengths of McDonald's

McDonald's has been operating its business for about 60 years and it has achieved lots of experience on fast food retailing. Most of its employees who are working in managerial position promoted from assistant level. This experienced management can face any critical situation of the company.

McDonald's has got the most attractive, expensive and busy locations for example, in almost all airports, shopping mall, High street etc. worldwide for its restaurants.

McDonald's ash huge market share in current global market. In 2009, McDonald's returned cash about $58 billion to its shareholders (Annual Report, McDonald's, 2009). That means, this fast food giant is able to dominate the global share market.

McDonald's has a unique business policy known as 'Franchises Policy'. More than 80% restaurants of McDonald's are owned and run by the franchises and this franchises community provides a extreme power for this company to capitalize the market.

One of the most popular and recognised logos of the world is 'Golden Arches' introduced by McDonald's. This logo has been made as a sign of loyal and trustable company.

Effective supply chain and communication mix, serious supervision of food quality, service and safety rules, are the strong parts of the company.

Modern and attractive infrastructures, easy payment and information access, Packaging with nutritional information, varieties of foods etc. are another considerable parts of this food chain.

b) Weaknesses of McDonald's

High turnover of employees shows its weak stuff pattern.

Fluctuation of company's profits for instance, in 2006, the net profits were $3,544 million where the net profits of 2007 were $2,395 million (marketingteacher.com).

It advertises to target the children

Level of new product innovation is low.

McDonald's is criticised sometimes for its junk food.

c) Opportunities of McDonald's

By inventing new food McDonald's can attracts more customers and successful innovation can boost up its sales.

During economic slowdown, people can avoid spending money for their dress and other household's things but they cannot avoid the foods. So, McDonald's can take this opportunity at any situation setting affordable price.

By taking the technological benefit it can attracts more customers. For example, more entertaining elements can be included in each store.

By sponsoring for community support, it can work for humanity and also can promote the business.

Treats of McDonald's

More competitors are working such as KFC, Burger King, Subway, Pizza Hut etc. for the same number of customers.

In health issue, fast food companies are generally criticised.

Fluctuations of foreign currency affect its operation.

Competitors' food offerings are being increased with low price.

Business planners can utilise SWOT analysis technique to find out the company's barriers and they can take the necessary steps to resolve the problems. McDonald's is clearly understood the importance of this analysis and that is why; it always keeps eyes on its operational activities. (www.realswotanalysis.blogspot/2010)

Chapter Four

McDonald's Current and future objectives

4.1: MacDonald's Vision

McDonald's believe in global dominance in food service by providing highly standard customer service to satisfy the customers and by increasing market share to ensure its shareholders' satisfaction. Normally, McDonald's tries to add new food menu with affordable price plans to attracts the customers. In June, 2000 former CEO Jack Greenberg declared company's annual shareholders' meeting focusing on three key strategies-

Be the best employer

Deliver operational excellence to customers through quality, service, cleanliness and value.

Create enduring profitable growth by growing its hamburger business and by leveraging its competencies to capture more eating-out occasions. ( Food & Amp; Drink Wjovbeek, June,19, 2000)

The acting management of McDonald's stated on website regarding their target that to open 30 new stores in each year which can create about 1800 new job opportunity annually. The present CEO of McDonald's Mr. Jim Skinner is also wish to dominate the global fast-food industry and to capitalize the global share market by providing outstanding services to achieve the sustainable outcomes. It is viewed that no company can challenge its success. It wants to work with international community to contribute more in every sector through its own way (Figure 4.1).

Figure 4.1: McDonald's priorities to achieve success (McDonald's Corporation 2008)

McDonald's intention is to keep the ongoing progress forever for the interest of its valuable customers, shareholders and franchises. To tackle the critical situation, for instance- economic slowdown, it always more or less prepared. As McDonald's has got about 60 year business experience and it has made a strong financial base and huge market share, it wishes to continue its success.

Chapter Five

McDonald's Business Strategies: Marketing and Communication

5.1: Business Model of McDonald's

As a fast-growing food chain, McDonald's Corporation giving the maximum efforts to apply all modern and effectives strategies to enhance its business. McDonald's business model is known as 'Franchises Model'. Because, about 80% of the total number of restaurants are owned by the franchises and rest of the restaurants are owned by the company. It monitors its franchises' activities and trains them to ensure the maximum performance to achieve the company's target.

The unique part of this company is its sophisticated supply network operation and distribution system. The proper utilization of the supply operation activities has made the company sustainable and trustable in the fast food industry.

5.2: Segmentation, Targeting and Positioning

To segment the market McDonald's use the demographic segmentation strategy. Normally, they make food for all kinds of customers but the main target segments are children, youth and the young urban family. McDonald's also follows the geographic factors. It targets the urban and populated area to open new restaurant.

As this company operates their business worldwide, it encourages providing the food and service on the basis of the local culture, economic condition and so on. As a result, almost in every country McDonald's expands its business day by day.

5.3: Marketing Mix of McDonalds

Marketing mix is a term describes the four main marketing tools known as 4ps are -

Product

Place

Price

Promotion

1. Product

Product has some specific aspects and characteristics such as out looking, quality, packaging etc. McDonald's has various foods and meal deal for its customers and most of them are really popular, for example, Hamburger, Cheeseburger, Big Mac, Chicken Wrap, Chicken Nuggets and so on. McDonald's provides breakfast menu as well as Extra-value meal such as Family Meal and Kids Meal. Soft drinks, fries, salad etc are the regular items of McDonald's. It knows that customers' demands change over time. Keeping this truth in mind, McDonald's offers their food menu to the customers (mcdonalds.co.uk).

2. Price

Pricing is very important part of marketing mix. In many cases, price determines the level of competition among the existing companies in the market. By giving priority on effective pricing, McDonald's uses its own pricing strategies.

a. Product Line pricing

Product Line Pricing is a unique pricing strategy established by McDonald's. In this case, different kinds of products which are related in use are come together in a product line. For example, if any one orders one cheeseburger value meal it comes with drink and fries for around £3 (Price can vary).

b. Promotional Pricing

McDonald's also offer promotional price that is seen on its store banner or poster or it advertise via different media. For example, Two Sausage Rolls for £1 or buy one get one free.

c. Penetration Pricing

When the company starts to sell a new product, it provides a penetration price to promote the new product. Sometimes they offer the new product to customers for free to promote and to get the feedback about the product.

d. Value pricing

Value price normally offered when the company is affected by some external factors like recession or high competition. To retain the sales company offers special price. Value price works as an effective strategy to face some critical situation.

3. Place

In marketing mix, place is used as distribution channels. Organisation must have a particular location to reach its customers or clients. Business location is very important part of business organisation. Before selecting the business location, company has to ensure that it will be affordable for company and convenient for customers and suppliers.

Just like other company, McDonald's prefers busy area to selects its location and it also consider some basic things such as communication, population density, life style of local people and so on.

4. Promotion

In business, promotion includes the marketing communication mix to promote the products or services. McDonald's is using various promotion channels for effective communication (Figure 5.2).

Figure: 5.1: The elements of the Marketing Communication Mix

For having maximum result of marketing communication, different promotional methods are being used in McDonald's marketing campaign. To utilize the promotional mix properly, it is important to consider the relative strengths and weaknesses of each component. Because, if one component is suitable for a certain market, may be another will not go through. For example- T.V advertising makes the people aware of food items and press advertising provides more details.

McDonald's famous marketing campaigns are-

"You deserve a break today, so get up and get away- to McDonald's"

"I'm loving it

"Food, Folks and Fun"

5.4 McDonald's Long Term Business Objectives

Organisation's long term objectives mean the performance goals that can be gained within five years period or more. Long term objectives normally require improvements in certain sides of an organisation which are-

Competitive position of the organisation

Profitability

Technology leadership

Market share

Employee relationship and productivity

Corporate image(Source: www.businessdictioonary.com)

Setting successful long term objectives requires a strong basement of an organisation and skilful management can achieve the expected goals. McDonald's has already ensured a sustainable basement in global market. On the basis of previous business performance, its profitability is really in a secure position.

As McDonald's believes in market dominance, it wants to utilize the modern technological advantages by using all technological access. To meet the requirements of ongoing market competition, it tries to dominate the share market and it also conscious about employee productivity. As a result, MacDonald's has already made a loyal corporate image.

Chapter Six

Suggestions to improve Income generation and brand loyalty

6.1: Income generation of McDonald's

In every organisation, finance department plays the key roles to maintain its income generation. McDonald's is focusing on the functions of its accounting and finance department. By evaluating the previous performance and researching the future opportunities, its intents to maximise its profitability.

Profit calculation of restaurant sales-

Sales ........................ 100 %

Food and Paper......... (30) %

Labour...................... (30) %

Advertising................ (5) %

Maintenance............. (3) %

Utility....................... (3) %

Others...................... (2) %

Profit 30%

(Source- macdonalds.co.uk/statics/pd)

6.2: Suggestion to improve income generation

McDonald's needs to do its cots benefit analysis effectively to ensure the proper cost management.

It needs to practice the friendly relationship with its suppliers for having the maximum supports from them.

Stuff pattern should be flexible that the employees can feel valued and it is important to eradicate the turnover.

The level of new food innovation should be high to attract customers.

Effective HR practice is required to staff motivation to ensure the maximum productivity.

Utilization of technological benefit for example, making customer profile in database to know the customers' preference.

Analysis of customers' feedback and taking actions regarding the complaints or suggestions.

Central supervision on franchises to encourage them for maintaining the company's standard.

Evaluation of stakeholders' (franchise, supplier) and employees' contribution for the interest of better outcomes.

6.3: Brand loyalty

Brand loyalty indicates the position the brand image in the market. If the product carries the brand value, customers can re-purchase it and trust it. Customers recognise it, prefer if and return to it. McDonald's has made a high profile brand image in the current global market.

6.4: Suggestions to develop brand loyalty

Suitable price setting- by evaluating the competitor price, suitable price setting is required. Sometimes, higher price can be considered as standard quality and lower price can be treated as low quality.

Promotional campaign- worldwide promotional campaign should be continued with company standard.

Loyalty price- it is saying that McDonald's loyalty price is high amounting 12.5% where other company's price not more than 7%. McDonald's think about its loyalty price.

Customer commitment- customers should be valued to McDonald's that they can return again and again.

Company image- it takes time to make a good image but it can be affected within a moment. So, needs to care about its image at all times.

Out looking- infrastructure, packaging, uniform, premises all should be organised.

Market share- if shareholders get their desirable returns from share market, company will be treated as loyal. In addition, huge market share shows the loyal position of company.

The main intention of an organisation is to increase its sales for making more profit which is closely related the price of its products. On the other hand, customers always look for loyal branded product with affordable price. That means it is a matter of big challenge for company how it generates its income and how it improves its brand loyalty. In the question of loyal brand and value price, the achievement of McDonald's is really remarkable.

Chapter seven

Customer service analysis and suggestions

7.1: Current customer service

Good customer service makes an invisible relationship between customers and service provider. For making the company's image better, providing excellent service to customers is essential. It meets the customers' needs and expectation and it intends to customers' return to the company.

McDonald's says-

McDonald's exists in the market because of its customers. This relationship has made it responsible more responsible to its customers. McDonald's is really committed to its customers for providing superior service in a welcoming environment (ourvalue.macdonalds.com).

It is a key part of McDonald's policy to serve quality food with friendly manner, in a modern environment with great-value and quick service. (aboutmcdonalds.com).

Special services-

Free Wi-Fi service for customers in about 98% of total stores of McDonald's with unlimited access that customers can experience the different service.

It has ensured about 99% accessibility including paper Braille and photo menu for the disable customers in its restaurants and more facilities are being included day by day.

Membership card and discount facilities for regular customers for example; if actual price is £3.99, regular customers can have it for £2.99.

McDonald's gives 30% discount for student as well.

One cup of coffee is free for every six cup of coffee.

Almost in every store has playing facilities for children. It provides toys and some other entertaining equipment.

7.2: Suggestions for improvement

Stuff training is required to make them aware about their roles. They need to pay maximum attention on customer satisfaction.

Whatever the reaction comes from customers, it should take seriously that customers can think themselves valued.

100% orders should be reached to the customers on time. If customers can get their food on time, they will feel something positive.

Product with zero defects can make the customers satisfied. So order should be served without any defect.

Price is very important issue. It can be reduced as much as company can to attract more customers.

Return and replacement service should be friendly and flexible. If customers find anything wrong with the foods and give it back and ask for another food or money back, management should care about that.

Top management of the company should take care of the customer service activities to ensure the effectiveness.

Proper supervision, monitoring and auditing should be utilized in regular basis.

As McDonald's is facing high competition in local and international market, it needs to perform with exceptional and impressing customer care. All food providers aim to attract more customers and every organisation take their customers as first priority. So, their success is depends on how they perform.

Chapter Eight

Cost Benefit Analysis of McDonald's

8.1: Cost benefit analysis

Cost benefit analysis includes how strongly or weakly the action will be taken for organisation. 'Negative' and 'positive' are the two terms of this analysis in which negative factors indicate the costs and positive factors indicate the benefits. Normally, for having more outcomes, company invest more money and efforts. For example, company buys new machine or recruits experienced people by spending more money for making more profit.

Cost benefit analysis includes the costs and benefits of setting new technology, HR practices, employee (salary, training, rewards) and so on. (management.about.com)

8.2 McDonald's cost benefit analysis

New technology- McDonald's has about all kinds of technological facilities to ensure the easy access for its customers such as, modern machineries (cooker, fryer) to increase production, easy payment system, online information facilities (web site), free Wi-Fi access for customers and so on. That means, McDonald's spent huge money for this arrangement and as a result, more customers are being attracted by this facilities.

Return on Investment (ROI) Calculation- If McDonald's spends £15,000 for buying a Shake Machine and sells about 20,000 milkshakes and it can make profit about 10p per shake, the ROI will be-

Annual Profit

ROI = ----------------------------------

Investment

10P X 20,000

= ----------------------------------- = 13.3% (mcdonalds.co.uk)

15,000

HR practices- Human resource department is normally responsible for some essential activities within the organisation. One of the important duties of HR is to motivate the employees for making them more productive. Motivated employees can contribute more for the company to achieve its destination. McDonald's spends money to motivates its employees and the facilities are-

Employee discount card- employees can buy food for up to half price.

Free break meal- stuff can have free food during their break at their duty period.

Free life insurance up to three years.

Free car facility for the store managers.

Stuff training and they get paid during the period of training.

Employee rewards and benefits such as salary increasing, promotion, bonus and so on.

Employees are treated as valuable asset of organisation and they have to be motivated. McDonald's spending money (cost) and by proper utilisation it making profit (benefit).

Promotional activities- McDonald's involves with varieties of promotional activities to promote the business, for example, it sponsors sports events, TV program and so on. The huge amount of money is spent for sponsoring and it is done by McDonald's because of greater benefit of the organisation.

8.3: Remarkable achievement (benefits) of McDonald's

The world's most recognisable logo (The Golden Arches)

High profile brand in fast food market

Sustainable brand loyalty

Huge market share

Remarkable number of customers

Profitable business operation.

In business operation, costs are normally used for making benefit. In this case, McDonald's is doing cost benefit analysis through its own way and it is being gained its desires successfully.

Chapter nine

Current and future practices in improving quality

9.1: Quality Management of McDonald's

As customers' demand is changing, McDonald's intents to continuous improvement of products and services. It works with efficiency and effectiveness for its sustainable position. It gives priority to enhance its overall productivity and performance.

Quality products and services

Quality product is the product which contains quality ingredients and nutrition that can meet the demand of customers. For making quality product McDonald's tries to collect the fresh and nutritious elements and to ensure the quality delivery it keeps friendly and professional relationship with the suppliers. It also applies the health and safe rules to make the food.

Customer satisfaction is the main target of industry that is involves with any service. Effective service is one of the main strength of a hospitality organisation. As a part of continuous improvement, McDonald's provides stuff training and several motivational programs for its employees.

Location and supply chain

It covers almost all busy and luxurious location across the world to reach the huge segment of customers. The expansion of McDonald's business is being increased continuously worldwide. It has also made the strong supply chain globally. It practices the distribution activities effectively and sincerely.

Market share and social responsibilities

McDonald's already got huge market share and it is very responsible for giving the satisfactory returns to its shareholders. As it wants to get the dominating position, it is eager to hold its position. McDonald's considers the social responsibilities and it works for community. Its child care charity is well known throughout the world.

9.2: Future practice

The world is changing. The hospitality industry like McDonald's has to be up to date to meet the requirements of 21st century. As it thinks professionally, it is working to meet the future demands.

Changing demand and new innovations

Buyer behaviour and demand are changing day by day. This changing demand has to be met by hospitality organisations. McDonald's trying to realise the upcoming competition and giving attention to its new jobs. The management of McDonalds is concentrating to invent new food menu and new technological facilities with their business operation.

As the changing demand requires the changes in all sections for instance, quick and standard service, modern technology, attractive infrastructures, competitive price and so on, McDonald's is being prepared to face this challenge by adding all facilities for its customers.

In every annual meeting, McDonald's management declares their next actions to meet the upcoming challenge. To utilise the declared actions it takes some necessary steps for example, employee training, franchise meeting, introducing new technology and so on.

Global responsibility of McDonald's

As a multinational company, McDonald's considers the social responsibility and they work globally. In encourage the healthy life style and green environment for all. It would like to represent its sustainability by contributing globally and its highlights it activities for example, partnership with non-government organisation, children welfare, animal welfare, healthy life style activities etc.

McDonald's says, there is no end of their social activities, it is ongoing efforts and it will go on forever. That means it would like to sustain forever with business professionalism and social commitment.

(Mcdonalds.co.uk/environmental booklet)

Chapter Ten

Conclusion

Hospitality organisation is directly and closely related with customers. There are lots of things it needs to do. Customers demand requires the complete satisfaction from all section such as, quality product, standard service, friendly dealings, and affordable price and so on. In addition, company has to face strong competition in local and international market. That means it has to be strong as a whole.

In this project, it has been discussed regarding overall activities of McDonald's. Its environmental analysis shows some common restrictions which are needed to overcome as much as it can. McDonald's can utilises its opportunities to make its position such stronger than others and it has to take effective steps to face the threats. Current communication and marketing strategies are good but it can be much better than that. Its future objectives are quite relevant to meet the 21st century's challenging position in competitive market.

McDonald's customer service line needs to be more effective and efficient. As customer dealing is the final act of its business operation, it needs to do in an influencing way that can meet customer satisfaction. But their current policy regarding customer care is not bad. Another crucial part of the hospitality organisation is affordable and competitive pricing. Product price is seriously considered by customers. So, the cost benefit analysis should be done in effective way at all times.

As a multinational company, McDonald's environmental policy and social responsibilities which include community support are really encouraging.