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Case study for mcdonalds
Mcdonalds company case study
Case study for mcdonalds
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Introduction In the year 1993 a sociologist named George Ritzer wrote a book called The McDonaldization of Society, which wasn’t about how the deliciousness of McNuggets has revolutionized the world, but instead focused on how the methodology and rational structuring used at the McDonalds franchise functions. The concept is that traditional ways of thinking are replaced by ends/means focused goals, sense of social control and prioritization of efficiency. In the words of Ritzer McDonaldization is “the process by which the principles of the fast-food restaurant are coming to dominate more and more sectors of American society as well as the rest of the world”. The following essay discusses the origins of Ritzers’ theory of McDonaldization, elaborates on the four components proposed by him and talks about the critique ‘irrationality of rationality’.
Appealing to the norms of society has always been a part of people 's lives. Children are taught, at a young age, about the societal importance of education and money. Since this is important in demonstrating a person’s place in society, many people feel the need to express wealth and sophistication to conform to a higher status. Recently however, the diachronics of societal norms has become more casual and has encouraged people to buy items at establishments that are considered to be of lower status. It is this desire for casualness that McDonald 's targets in their ad.
As people have issues about Mcdonalds’ low food quality toward people’s health. However, there is another important area that we have to consider seriously about is how its system, so-called “Mcdonaldization”has influenced and continuously effecting our society. From the article “McJobs: Mcdonaldization and the Workplace” by George Ritzer, he distributes the idea of how Mcdonaldized system has changed our society into scripted and “programmized” places (Ritzer 1998:140). He has specifically analyzed the McJobs’( job that has been Mcdonaldized) into four elements,which is its efficiency, calculation, prediction and control. As the nature of the world is made of a full of colors, diverse opinions of people naturally exist toward the term
They get the food ingredients from one supplier and the drinks are from another supplier. McDonald’s has nothing to sell selling if they didn’t have a supplier. The company must make sure the suppliers are cooperation and trustable.
For example, McDonald’s owns facilities that produce standardized mixtures of ingredients. Also, cost minimization is a financial objective based on the cost leadership strategy. In addition, product innovation is related to McDonald’s broad differentiation generic strategy. Product Development. McDonald’s uses product development as a supporting strategy for growth.
The diagram above shown the CPM of McDonald’s and its competitor, KFC and Burger King; indicates McDonald’s is in a strong strategic position than its competitor. Some of the reasons McDonald’s is successful and has high market is due to it strong brand name recognition, a strong customer loyalty, and its global expansion. Furthermore, McDonald’s is also invested a large sum of money in advertising and very well known toward it charity program through Ronald McDonald’s House. Nevertheless, there are areas in which the organization can improve.
ANSWER: INTRODUCTION Mc Donald’s is the largest hamburger fast food restaurant chain in the whole world. Mc Donald’s has more than 35000 outlets and serves around 68 million people daily. Primary selling items of Mc Donald’s include hamburgers, cheese burgers, French fries, chicken, breakfast items, milkshakes, soft drinks and desserts.
The social forces that have an influence on the company’s products include by ethical and social orientations relating to the safety of their products, together with changes in meal intake behaviors and increasing nutrition and health awareness. In terms of technology, McDonald’s Australia Holdings’ food and beverage products are influenced by the levels of technology advancement in their quality and quantity per unit time of production. Through partnerships, the company is able to gain adopt technology that leads to flexibility, opportunities to gain new expertise and prowess, and novel technological knowhow and simplified consolidation and divestiture processes. The Primary and Secondary Target Markets for Mcdonald’s Australia Holdings The primary market for McDonald’s Australia Holdings comprises of direct consumers of the food and beverage products within the Australian public, while the secondary market for the company comprises of the Australian stock exchange market.
According to TrackMaven, market segmentation is the process of dividing the market of potential customers into groups, or segments, based on different features. The created segment consists of consumers who will respond to the same marketing strategy and who share the nature of the same interests, needs, or locations. McDonald uses demographic segmentation as their main types of market segmentation. According to Sakshi Natani (2016), McDonald in Malaysia used mainly demographic segmentation, which divided in age, income, family-life cycle and social class.
McDonald’s is the world’s largest restaurant chain, serving a total of 69 million people a day at 34,000 restaurants worldwide. While facing a tough competition, McDonald’s has chosen to launch a new product to sustain competitive advantage as well as to attract customers in the ’18 to 32 years old’ range, which they have struggled with up to today. They launched the McWrap on April 1, invented by the 47 years old vice president and executive chef Dan Coudreaut. The McWrap is meant to be a healthier choice than the products McDonald’s are in general known for, as well as to compete with competitors such as Five Guys, Subway and Chipotle. However, people assimilate McDonald’s to junk food unlike the ”Subway buster”.
The planning involves the mission and vision statement. McDonalds mission statement is ‘to be our customers favorite place and way to eat’ (Referenceweb).McDonalds vision statement which is also their aim is ‘serving quality food that our customers can trust(reference). From this we know that McDonalds aims to be trusted for delivering quality food. Organizing, the formal structure at McDonalds divides the organization in the departments and every individual knows his/her task well at which he/she needs to be specialized. The organization structure chosen supports performance and is aligned with the strategy of the restaurant of providing consistent quality and great service experience.
They refer to Fielder’s contingency theory, path-goal theory, Hersey and Blanchard’s Situational Leadership theory, and Vroom and Yetton’s normative decision model. Each theory is distinctive and different from each other. In the case of McDonald’s, it practices each theory to a certain degree. Fieldler’s contingency theory states that in order to maximize work group performance, leaders must be matched to the right leadership situation (Williams, 2007).
During this case study, we were asked to answer three (3) questions. First, we were to describe McDonald’s
( Elena utaru , 2014) b. Sub-supporting point: Besides, the packaging of fast foods make it easy to take away or bring it wherever you go. 2. Supporting point: Secondly, the services that provided is convenient with very quick response a.Sub-supporting point: Mc Donald has 24 hours services of home delivery whenever you order the food.
It is also easy to shift from McDonald’s to these substitutes (low switching costs). • High performance-to-cost ratio (strong force) These substitutes are competitive in terms of quality and consumer satisfaction. In order to face this threat McDonalds should do product quality improvement.