Organization
The following essay illustrates how value is provided to customers within the organization. By utilizing stakeholders, organizational policies, and specific strategies, McDonald’s works towards constantly innovating its service and product.
A. Stakeholders
The first and most important stakeholders for McDonald’s are its customers. The importance placed on consumers is demonstrated by the company’s mission statement “To be our customers’ favorite place and way to eat and drink” (McDonald’s, 2013). The organization allows the consumer’s experience to be the center of all its business practices. The key to their customer service policy is providing excellent food at a great value in a clean and friendly setting (McDonald’s, 2013).
The fast food giant provides its customers with fast and convenient service by utilizing drive through windows. The “Dollar Menu and More” is a value menu that offers consumers lower priced food items with prices ranging from $1.00 to $5.00 (Wong, 2013). McDonald’s popularity among consumers is due in part to its conveniently located stores and strong brand name (Spenner, 2013).
Additionally, McDonald’s provides value to consumers by consistently bringing new items to its menu such as specialty coffee drinks (McDonald’s Corporation, 2012). The implementation of new healthy salads, fruits and carrot sticks into the McDonald’s menu has been brought on by the increase in health conscious consumers. The company also strives to adapt its food offerings to local flavors in order to customize menu options for consumers (Mourdoukoutas, 2012). In recent years, several locations have begun remodeling their store with leather seats, wooden tables, and by offering free Wi-Fi (Forbes, 2011). ...
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Spenner, P. (2013). Brand Growth Lessons from McDonald’s. Forbes. Retrieved from
http://www.forbes.com/sites/patrickspenner/2013/06/21/lessons-from-mcdonalds/
Taylor, M. (2012). Burger King Test-Drives Delivery Service. NBC News. Retrieved from
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Trefis Team, (2011). Billion-Dollar Wood-And-Pleather Makeover Coming To A McDonald’s
Near You. Forbes. Retrieved from http://www.forbes.com/sites/greatspeculations/2011/05/12/billion-dollar-wood-and-pleather-makeover-coming-to-a-mcdonalds-near-you/
Wong, V. (2013). McDonald’s New ‘Dollar Menu’ Goes Up to $5. Bloomberg Business Week:
Companies & Industries. Retrieved from http://www.businessweek.com/articles/2013-10-23/mcdonald-s-new-dollar-menu-goes-up-to-5
Wendy’s is one of the world’s third largest hamburger companies that is quick service. There are over 6,500 company and franchise restaurants worldwide. Wendy’s mission is to stand for honest food, higher quality, fresh wholesome food, prepared when you order it, prepared by Wendy’s kind of people, do it Dave’s Way, we don’t cut corners. This company believes in fresh and non-frozen products so the customers are satisfied and now they bought from an honest restaurant. The foundation believes in long term success that include there core values in every production. The core values are “Quality is our Recipe” “Do the Right Thing” and “Give Back”. Wendy’s focuses on the responsibility that the stakeholders are also the key to success.
With strength ultimately comes weakness and McDonald's has its fair share, especially in the last few years. Many weaknesses are due to the external environment which includes market saturation, increased price competition, and food and labor costs. These weaknesses affect many firms in the fast food industry so McDonald's is trying to effectively combat these forces using a differentiation strategy. Developing new products such
McDonald’s workforce consist of 73 percent women and people of color making, 43 percent of them are franchise staff and 55 percent are suppliers; additionally, the company has two stores opening everyday in China (Singh, 2010). Furthermore, Lee and Kye-Sung (2000) states 49 percent of McDonald’s total revenue comes from the international market. Gibison (2008) states in order for McDonald’s to reach and increase consumers from diverse backgrounds and different cultures the company tailor its menu by added specialty food for different countries and cultures. An example is the company...
The menu at McDonald's typically consists of hamburgers, chicken sandwiches, salads, drinks, shakes, and a recent influx of healthier alternatives. McDonald's also is widely known for their breakfast menu, which consists of sandwiches, pancakes, French toast, hash browns, and breakfast drinks. Since McDonald's appeals to such a wide audience, it must constantly re-evaluate its menu depending on feedback and market research. McDonald's expends considerable resources to update its menu and introduce new products in order to be more in tune with its target audience (The Times 100).
A franchisee, an affiliate, or the corporation operates a McDonald’s restaurant. Thus, McDonald's Corporation revenues come from the rent, royalties, and fees paid by the franchisees or sales in company-operated restaurants. According to Yahoo Finance report, McDonald's Corporation had annual revenues of $27.5 billion, and profits of $5.5 billion (McDonald’s 2014). McDonald’s primarily sells hamburgers, cheeseburgers, chicken snacks, french fries, breakfast items, soft drinks, milkshakes, and desserts. In response to changing consumer tastes, the company has expanded its menu to include salads, fish, wraps, smoothies, and fruit. Their food caters to all age groups, and they have a special menu known as “happy meal” that is targeting children.
The McDonald’s Corporation case study take a comprehensive look into the competitive market of the fast food industry. Particularly, McDonald’s and some of it greatest fast food competitors. In this analysis I will be revealing the marketing strategies of McDonald’s and other fast food companies. Identifying the trending tastes of consumers in this market, tactics used by McDonald’s competitors such as Wendy’s and Burger King to one up the marketing strategies of McDonald’s. I’ll also be assessing the strength, weaknesses, opportunities and threats of McDonald’s in this market segment. Evaluating the consumer purchase decision process and purchase type in the food industry. Lastly, I’ll explore which growth strategies I believe would make the
To sum up all information above, it is understandable that McDonalds has positioned itself as fastest and cheapest fast-food retailer. According to this statement, the main competitive priority for the company is low-cost and dependability of their product. Nevertheless, McDonalds takes into account other competitive priority like high design-performance, credible consistent quality and cultural flexibility.
...mendations for managers of fast food restaurants for the increase of brand loyalty and customer satisfaction’. It is a requirement for organisation to change their business strategies to follow the current trends, customer needs and requirement (Kim et al., 2001). When a management follows the service quality model from Parasuraman et al. (1985) to modifying their products according to the customer requirements, they will be more likely to be successful in the era of intense competition (Cater and Cater, 2009). This is one of the reasons that the companies are more interested in identifying the requirements of their target customers so that they can ensure that the organisation’s products are developed exactly according the client needs and requirements (Howard, 2006). This section can clearly shows the consumer expectation in fast food industry in Manchester.
McDonalds also uses diversification in its global marketing. McDonalds recognizes that different countries have different values, customs, and tastes. Therefore, McDonalds satisfies these diverse global tastes by diversifying the menu according to each country’s unique preferences. This added diversification tactic, allows McDonalds to stay competitive in a global market. Examples of McDonalds globally diversified menu would be that McDonalds offers an exclusive beefless menu to its customers who live in India. This is because eating beef in India is sacrilegious. To meet the tastes of customers in India, McDonalds created new offerings such as the “Pizza McPuff” and the “McVeggie.” McDonalds considers the cultural tastes in every country it opens its doors
McDonalds provide high quality products, such as burgers, fries, drinks, muffins, etc, which are safe and reliable that it does what it is supposed to do, but not only does the quality of the products matter, the good value for money affects the business. E.g. buy one extra value meal and get one free with a food voucher that represents the offer only. They ensure that a high standard of the product is carried out at all times and they try to compete very competitively with other fast food businesses with their good value for money. Also a customer would know if the product is good value for money by checking in another food outlet like KFC for their services and products.
In today’s market, McDonalds faces numerous challenges such as fierce competition, a more health conscious customer, and the continual need for improved customer satisfaction and menu. McDonalds needs to go through some changes in order to remain ahead in the fast-food industry.
McDonald’s vision statement can be said that it wants to be the world’s best quick service restaurant experience. Being the best for McDonald’s means that it needs to provide the best of the quality of food products, services, and cleanliness and value so that it can make everyone of its customer smile (Schmitt and et.al, 2011). A vision statement of the company is an idea for how business can be eventually perceived and what actions it will be taking for coming 5, 10 or 15 years for i...
These are opportunities because they are all options McDonalds can take advantage of in order to expand their company. By doing these, McDonalds will bring in more customers as these changes will attract consumers that are looking for a fast food restaurant that possess these
They campaigned with celebrities, children to promote themselves to be the best. McDonalds are offering a greater number of healthy options to their menu as people are looking for healthy food whilst they are looking at advertising. But they also want fresh and high quality than the low-fat and the low calorie; they still want the food that tastes good. Regardless of how McDonalds brands their healthy alternatives they will still be increasing demand from consumers and they will always be new demands that customers will be wanting every year.
Customer Value is important to my company. My Company knows who purchase their goods and services and why these consumers view our offerings as having the highest value to them.