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McDonald's Case Analysis Essay

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McDonald's Case Analysis


I.     Objectives
McDonald's mission was to provide customers with quality food at a low price with a focus on the speed, service and cleanliness they received while patroning one of their restaurants. The case focuses on a specific segment of the McDonalds restaurant chain that was opened in 1996, McDonald?s India. This segment of the restaurant giant had a more specific mission/philosophy to fulfill and had developed a special menu for these Indian customers to take into account their culture and religion. When it was realized that beef extracts were found being used in producing McDonald?s fries, outraged vegetarians and Hindus across the United States and Canda filed a class action lawsuit. Along with this, riots and demonstrations at restaurants in India took place, with mobs calling for the closure of all McDonald?s in India.

II.     Customer Scenario
     By 2001, McDonald?s had expanded its operations to 116 countries with a total of over 30,000 restaurants. McDonald?s sold to over 15 billion people every year! The company?s target market encompassed everyone as they tried to offer menus that accommodated fast food lovers, vegetarians, the health-conscious as well as different religious sects.

III.     Nucleus of Control
     McDonald?s restaurant chain is comprised of company owned restaurants as well as franchised restaurants, which make up over 65% of the operating McDonalds outlets; because of this many of the restaurants are controlled and run separate from one another. The whole segment of McDonald?s India has a board of managing directors that oversee McDonald?s operations in India. From a management standpoint, McDonalds can be seen to have different varying stances. The company can be viewed as a mature company that was introduced over 65 years ago and now encompasses virtually the entire globe with its operations. However, it seems that McDonald?s, large in size already, keeps expanding internationally as well as in the United States. While many of these newly opened restaurants are separately run franchises, it seems that while the McDonald?s name and idea may be mature, the company as whole seems to still have a growing, entrepreneurial stance.

IV.     Functional Analysis
A.     Top Management
The company was started by two brothers, Richard and Maurice McDonald and was later purchased by a curr...


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... marketing department. This would help to combat major catastrophes from happening and leading to more allegations and lawsuits.

3. Create a separate department within the company to keep consistency among the many McDonald?s franchises. While this would be a great tool in the overall operation of the company, there are probably too many franchises to be able to carry it out in a cost effective manner.

VII.     Recommendations
Both alternatives one and two should be combined for the overall success of improving McDonald?s corporation. Marketing has done a terrible job in many areas and could use a fresh start, but must rely on top management for the ultimate say.

VIII.     Implementation
These alternatives can be put into place effective immediately. They should not bear large costs, with any costs relying soley on the hire of new employees and/or top management to compensate for the extra workload. The most important benchmark to judge our decisions will be customer satisfaction. This can be done simply by surveys, online or focus groups. In the long term the benefits may be seen on a larger scale by viewing the perception of the company in the US as well as globally.


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