The Mcdonalds Vision And Mission

Published Date: 02 Nov 2017

INDIVIDUAL ASSIGNMENT

Business Management

BM 401 (09)

Name : LAAVYNIA A/P ANANTHAN

IC : 931002-07-5352

Index No. : PP102686

CAMPUS

:

PENANG

WORD COUNT

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5012

TABLE OF CONTENT

Introduction

Pg. 3 â€" 5

Answer to Task 1

Pg. 6 â€" 10

Answer to Task 2

Pg. 11 â€" 14

Answer to Task 3

Pg. 15 â€" 17

Answer to Task 4 & 5

Pg. 18 - 22

Conclusions and recommendations

Pg. 23

References

Pg. 24

Appendices

Pg. 25

Introduction

McDonald’s Vision

McDonald’s vision is to be the world’s best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that they make every customer in every restaurant smile.

McDonald’s Mission

McDonald’s brand mission is to be their customer’s favourite place and way to eat. Their worldwide operations are aligned around a global strategy called the Plan to Win, which centre on an exceptional customer experience â€" People, Products, Place, Price and Promotion. They are committed to continuously improving their operations and enhancing their customer’s experience. The mission statement of McDonald's fast food restaurants is a common mission for every restaurant, but the McDonald's Values reflect the McDonald's experience. The mission statement of McDonald's fast food restaurants around the world is not much different from any restaurant chain. That broad and common mission statement is more clearly defined by the McDonald's Values, which reflects the experience that customers can expect when walking into a McDonald's fast food restaurant no matter where it is located.

They place the customer experience at the core of all they do.

They are committed to their people.

They believe in the McDonald's System.

They operate their business ethically.

They give back to their communities.

They grow their business profitably.

They strive continually to improve.

McDonald’s Future Goals we aim to advance our balanced, active lifestyle efforts by: 

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Continuing to develop new menu offerings that provide their customers with a range of choices that correspond to their needs and preferences and can fit into a balanced diet.

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Develop more Happy Meal choices, including new entry offerings and non-carbonated beverages without added sugar.

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Sticking to their timetable for phasing in their new nutrition information initiative for core packaging items.

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Continuing to assess, listen, learn and evolve the policies and marketing and communication practices so that they can continue their special regard for young people.

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Expanding their engagement with experts to ensure that they are guided by the best scientific information and insight.

Objectives of McDonald’s

Most people can find a McDonald in any metropolitan city anywhere in the world. McDonald's global success can be attributed to company objectives.

When consumers are aware of McDonald's objectives, they better understood the value of such a large, global franchise in helping people find employment and in offering a cheap, sustainable product to their consumers.

McDonald’s Statement

McDonald's expects all of their suppliers to meet their stringent requirements for delivering high quality food prepared in a humane and responsible manner.

Based upon recent research, they have informed their direct supplier, Cargill, that they will no longer accept eggs from its supplier, Sparboe. This decision is based on McDonald's and Cargill's concern regarding the management of Sparboe's facilities.

This is not a food safety issue for their menu items. They can assure their customers that eggs in their entire supply chain meet McDonald's high standards for quality and safety.

Their primary commitment is to their customers, and they will continue serving safe, high-quality food without disruption said by Bob Langert, McDonald's Vice President.

Answer to Task 1

McDonald

KFC

The story

By the late-1990s fast-food chain McDonald’s had enjoyed 40 years of exceptional performance. In 1997, for example, the company had registered 10 years of 2 per cent per annum growth.

KFC began with Colonel Harland Sanders. He discovered his penchant for cooking when he was only 9 years old. Through the years he grew up to become a personage the world knows as Colonel Sanders, founder of KFC.

The challenge

That year, Jack Greenberg became the company’s fourth chief executive. His main concern was how to lead the business in less favourable market conditions. McDonald’s was facing concerns about fatty foods and about beef; competition was squeezing margins; and growth from international markets was slowing.

KFC in the US has been accused by Greenpeace of a large destruction of the Amazon Rainforest, because the supply of soy used for chicken food that KFC receives from Cargill has been traced back to the European KFC. Cargill has reportedly been exporting soy illegally for several years.

The strategy

Mr Greenberg did what the textbooks suggest. First, he focused on improving the core business, announcing it as his top priority. Then, he also set a second priority: to find a new platform for growth. With this audacious goal in mind, he supported five acquisitions of related restaurant businesses-including Chipotle, a Mexican food restaurant, and 50 percent of Pret A Manger, the UK sandwich chain â€" and he set up the Partner Brands Division, to be responsible for these new businesses. Mr Greenberg also opened the door to a number of other, more organic initiatives led by his head of strategy, Mats Lederhausen.

KFC’s competes on several bases, including products, nutrition, cost and franchising. They’re adapting their consumer offerings by targeting the large and growing market for family meals, broadening their menu and offering attractive meal bundles at compelling value. Their objective is to become the UK and Ireland’s favourite quick service restaurant brand:

Winning food (i.e. the best quality food in the industry). KFC business experience and success over the decades provides opportunity for entrepreneurs, business owners and managers to learn valuable strategies and ideas to run their businesses to success.

What happened

Mr Greenberg found it difficult to dedicate enough attention to both priorities. The core business continued to deteriorate and in 2001 McDonald’s announced its first quarterly loss and the resignation of Mr Greenberg. Jim Cantalupo, a retired McDonald’s executive, was asked to return as CEO. His first announcement was that McDonald’s had been trying to do too many things. He shut down many of the organic initiatives and housed all the new businesses into a structure called McDonald’s Ventures. Mr Cantalupo instructed Mr Lederhausen to identify those businesses that could become significant for McDonald’s without distracting management from its core business and to sell or close the rest. The result was that over the course of the next few years, almost all of them were either sold or closed.

In 1971, Sanders sued Heublein Inc., KFC's parent company at the time, over the alleged misuse of his image in promoting products he had not helped develop. In 1975, Heublein Inc. unsuccessfully sued Sanders for libel after he publicly referred to their gravy as "sludge" with a "wallpaper taste".

In May 2007, KFC (Great Britain) requested that Tan Hill Inn, in the Yorkshire Dales, North Yorkshire, UK refrain from using the term 'Family Feast' to describe its Christmas menu, although this problem was quickly resolved with the pub being allowed to continue use of the term.

As we learned from our class, compare the two restaurants, which one more people prefer to choose depending on the services that they have. So, I was thinking of two fast food restaurants to compare, McDonald’s and KFC.

McDonald’s and KFC are everybody’s favourite food trip destinations. When you like hamburgers, McDonald’s is always the top option. When you like fried chicken, KFC is always the first thing that comes to everyone’s mind. The reason for this is these companies claim of particular products that have become their trademark until now. The difference between McDonald’s and KFC is mainly the cuisine.

McDonalds sells food, or at least a food-like substance. They target families with kids, to get the whole family to come eat. They offer Happy Meals and playgrounds. Their locations are chosen for convenience. They distinguish themselves based on consistency of menu and food. You can walk into any McDonalds anywhere and know the Big Mac tastes pretty much the same.

KFC stands for Kentucky Fried Chicken, so it's basically a fried chicken place, with different side dishes. McDonald's has hamburgers and French fries, with a few other food items. McDonalds is mostly sandwich oriented meals. KFC has southern fried chicken, mashed potatoes, biscuits, and etc. Neither one of them is good for you because they're high in fat, but they're great. Also, KFC lets you get full meals that are a bit more satisfying than McDonalds.

KFC and McDonald’s have different variation of dishes. They both are having chickens in their menus. McDonald’s main offer is hamburgers while KFC’s main offer is fried chicken. McDonald’s other offers include breakfast menu, desserts, chicken sandwiches and French fries. KFC’s other offers include chicken wraps, sandwiches, and salads, roasted and grilled chicken cuisines and desserts. KFC is 10 year older than McDonald’s. McDonald’s logo is a smiling clown while KFC’s is their original creator’s cartooned image.

To conclude, I want to say KFC and McDonald’s are both popular fast food chains in the US and in the whole world. KFC and McDonald’s are both questioned for animal rights if whether or not they consider better animal welfare standards.

Answer to Task 2

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.

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, and 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.

Employment

The Corporation has pioneered a global, highly standardized and fast production-line system, geared to maximum turnover of products and profits. McDonald's now employ more than a million mostly young people around the world: some say a million people who might otherwise be out of work, others however consider that they are in fact a net destroyer of jobs by using low wages and the huge size of their business to undercut local food outlets and thereby force them out of business. Is McDonald's a great job opportunity or are they taking advantage of high unemployment to exploit the most vulnerable people in society, working them very hard for very little money? Complaints from employees range from discrimination and lack of rights, to understaffing, few breaks and illegal hours, to poor safety conditions and kitchens flooded with sewage, and the sale of food that has been dropped on the floor. This type of low-paid work has even been termed.

Stakeholder

In a business sense, stakeholder is anyone who has an interest in, and can affect a business' process or outcomes. So the owners (shareholders) are stakeholders. They could invest elsewhere, driving down the value of the stock. But so are customers, who bring their money in and buy food. They could buy elsewhere. Without customers, McDonald's goes under.

These are the most obvious. But there are others. McDonald's management and work force are two others. Both groups have a stake in the processes and outcomes but they are not necessarily the same interests. Management wants to deliver a sellable product at the lowest possible price. Employees will want to get paid as much as possible for their work, and maybe advance in the company.

There are more. Lately, a lot of cities have banned the use of trans-fats in foods prepared within their city limits. This affects McDonald’s processes and outcomes. They must decide whether they want to stay and operate within those cities, or move out and abandon the market to their competitors. Health care professionals, especially nutritionists, could be said to be stakeholders because their analysis of fast food content affects public perceptions of whether McDonald's sells wholesome food, and could easily affect their sales.

There are dozens more that you can figure out. If I had to say which is the most powerful, I would argue that it is the customers. Without customers, there is no business.

Distributor

Radhakrishna Foodland (P) Ltd. [“Foodland”] is a part of the Radhakrishna Group, which is engaged in food and related service businesses.

From July 1993, much before McDonald’s started its operation in India; sincere efforts were made by Foodland to carefully understand McDonald’s operations and requirements for the Indian market. Better facilities and infrastructures were created and new systems were adopted to satisfy McDonald’s demands. Finally, all those efforts put in by Foodland culminated into a handshake agreement with McDonald’s India, to serve as Distribution Centres for their restaurants in Mumbai.

The division has focused all its resources to meet McDonald’s expectation of ‘Cold, Clean and On-time delivery’. This in turn, evolved their mission statement, “To ensure that all McDonald’s restaurants are supplied without interruption, products conforming to acceptable standards at lowest local costs to the system.”

The Distribution Centre (DC) is responsible for procurement, quality inspection programme, storage, inventory management, deliveries to the restaurant, data collection, recording and reporting. Value added services like repacking of promotional items are also carried out at the DC. The DC plays a very vital role in maintaining the integrity of the products throughout the entire ‘cold chain’ â€" the distribution system that ensures the products, which arrive at McDonald’s restaurants from suppliers all over India, are absolutely fresh and as per McDonald’s Quality Standards. All these operations need to be managed in the most cost â€" effective manner. The operations and accountings are totally transparent and are subject to regular audit.

Strategies of McDonald’s

McDonald’s have become one of the world’s leading food service retailers, with more than 32,000 restaurants employing more than 1.5 million people and serving more than 60 million people in more than 100 countries every day. In most markets, McDonald’s offers salads and vegetarian items, wraps and other localized fare, strengths of McDonald’s is Strong brand value draws customers to McDonald’s restaurants opportunity to gain from economic buoyancy in emerging markets.

Answer to Task 3

Macro environmental analysis

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

Political factors

Economic factors

Social factors

Technological factors

Environmental factors

Legal factors

Political factors

The business operation of an organization 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.

Economic factors

Economic factors always come as vital issue to business organizations. For example, more or less all companies are affected by on-going 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 economic 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 organization. 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 customer’s 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 customer’s expectation. As all existing food chains for instance, KFC, Pizza Hut and 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 criticized 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 and etc. In Muslim countries, it is important to have Halal food authorization and McDonald’s should care the customer’s 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.

Answer to Task 4

European Union Policies

Economy

The analysis shows that McDonald’s continued to grow throughout the recession of 2007-09 and its growth has consistently exceeded EU GDP growth as well as the growth of the European hotels and restaurants sector as a whole. McDonald’s made an estimated contribution of € 9.5 billion to EU GDP in 2010. The salaries and wages paid by McDonald’s are partly reinvested in the regional/local economy and have an estimated total indirect impact of € 7.6 billion in the EU in 2010.

Economic factors always come as vital issue to business organizations. For example, more or less all companies are affected by on-going 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 economic 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.

Agricultural / fisheries and food

A detailed analysis of McDonald’s supply chain shows that the company sources 97% of its agricultural raw materials from Europe and that it supports it suppliers through long-term commitments. For example, its largest suppliers have been supplying the company for 31 years on average.

Employment and Social Rights

The report shows that McDonald’s employs approximately 294,000 people in the EU, accounting for 0.14% of total employment in the EU and 3.2% of employment in the accommodation and food service sector. Approximately 60,000 new jobs were created by the company between 2007 and 2010.

The Corporation has pioneered a global, highly standardized and fast production-line system, geared to maximum turnover of products and profits. McDonald's now employ more than a million, mostly young people around the world: some say a million people who might otherwise be out of work, others however consider that they are in fact a net destroyer of jobs by using low wages and the huge size of their business to undercut local food outlets and thereby force them out of business. Is McDonald's a great job opportunity or are they taking advantage of high unemployment to exploit the most vulnerable people in society, working them very hard for very little money? Complaints from employees range from discrimination and lack of rights, to understaffing, few breaks and illegal hours, to poor safety conditions and kitchens flooded with sewage, and the sale of food that has been dropped on the floor. This type of low-paid work has even been termed.

Health

Negative health impact a person experiences from eating McDonalds food (if you can call it that) and consuming soft drinks with practically every meal. In the new documentary "Super-Size Me," filmmaker Morgan Spurlock eats only McDonald's food for 30 days and documents his rapidly deteriorating health. The 90-minute movie caused more people to bring obesity lawsuits against McDonald's Corp.

Transport

Transport is one of the main important to McDonald’s because the employee can deliver the order to customers using the motorbike. By that, customer will get good service and by that McDonald’s can get name. McDonalds also can earn profit by that. “McDonald’s facility remains the only licensed bio refinery in the Middle East. Choosing state-of-the-art technology and equipment was a big decision for a new business when they started out, but it was of course the right thing to do and they take pride in maintaining the very high standard they've set for biodiesel manufacture here. Being able to provide high-quality biodiesel from a high-quality facility is a key to their success.”

Their overall objective is to provide mass transport that is comprehensive, safe but also environmentally sustainable. They aim to do so by learning from professional and experienced industry leaders such as McDonald's UAE and Neutral Fuels, and they are excited about the possibilities which biodiesel can offer.”

Answer to Task 5

The purpose of this task is to discuss global factors affecting upon McDonald's management functions and current strategy the company currently using to tackle this global impact. This will be achieved by exploring how McDonald's tackle with all of the external and internal global factors. There are mainly three factors that were selected to outline the achievement of McDonald's corporation.

As, McDonalds is an international worldwide restaurant company that's why, globalization is effecting McDonalds corporate strategy. McDonalds is trying to expand its business in global market i.e. like China. That's why before moving into global market McDonalds need to consider about the region, culture and religion of customers. More over McDonalds need to think food habit and chose of customer of new regions. And the same time regions government rules, law, economy, politics economy, everything is impacting McDonalds to build their business.

In general, people normally associate or relate the words ‘fast-food like the brand of McDonald's as ‘junk food'. It is because beside obesity, the health problems that closely related to fast-food like McDonald's include diabetes, high cholesterol and blood pressure as well as heart problems. It is due to the ingredients that they use to produce the food in their restaurant which consists of high level of fat and sugar.

In the case of Mc Libel, which is the longest trial in UK history, the two protesters also provided bunches of evidences to discharge themselves from guilty of making one of their statements in the leaflet about the unhealthy of McDonald’s food.

Beside the case, the year between 2002 to 2003, a number of teenagers who had their meal more than three times every week at McDonald's brought legal actions against McDonald's over the food provided in their restaurants which caused them to have obesity problem or overweight. They claimed that the advertisements made by McDonald's are misleading which they thought that the meals provided by the restaurants are healthy (Guardian News & Media 2002). In addition, McDonald's also failed to disclose the nutrition facts of their food. However, the court held that the McDonald's will not be liable since the claimants failed to show enough evidences regarding the danger of McDonald's food. Even though McDonald's had won the case, the lawsuit had caused the bad publicity of the company which lead to the twenty two per cent dropped in their company market share price in that particular year (Guardian News & Media 2002). The people around the world also increase their concern and protest against the unhealthy food due to the lawsuit (Guardian News & Media 2002).

The lawsuit had inspired a man named Morgan Spurlock who decided to make a documentary film in 2004 about him taking an experiment by eating only McDonald's for thirty days. As the result, he had gained 24 pounds of his weight and got addicted to the fast food. He had successfully proved that obesity and food are closely related. He also put pressure from his film on McDonald's in order to abolish the “Super Size” option in their menu and disclose the information facts of their food. There are also other versions of this film designed especially for the kids in school.

Conclusion

As a conclusion, everyone prefers to eat McDonalds. The last half of the twentieth century witnessed the development of many fast food chains. None were as successful as McDonalds at maximizing profit.