McDonalds Future Policies and Strategies

McDonalds upcoming(a) Policies and StrategiesIntroductionIn this assignment we go away discuss the railway domain, its purlieu, factors modify the environment, menstruation grocery conditions and the affect of the latest commercialise on the the handicraft. Identify the interestholders of the comp both, strategy, policies employ by the caper that helps them to gain militant edge all over its guests. strategical ReviewStrategic review helps to analyse and review the strategies utilise by the business for survival and sustainability. It helps us to to a lower placestand the decisions taken by the counsel to append the gross r even offue, market appoint and hence maximising profit.The friendship I surrender chosen for this assignment is McDonalds which market leader in unbendable provender effort is. In this assignment we will discuss McDonalds stakeholder and their current market status of McDonalds. We will to a fault discuss the environment, effectualnes ss and the weaknesses along with the strategies apply by McDonalds which affected the position of McDonalds either to increase market sh atomic frame 18 or maximising profit. job 1.1Identify the importance of environmental factors affecting the organization or s push throughhwardtor.We will discuss the factors affecting McDonalds. I defecate chosen Mcdonalds as a company having carryed for McDonalds for about Four old age make me understand the culture, structure and the environmental factors that affect the organisation at a time and in this instant.Mcdonlads at slant the plan to Win and being the Market Leader in the devalued pabulum industry with having eating house in more than than 119 countries with more than 31,000 restaurants in operation. The factors that affect the organisation ar the political, social, economic, technological and healthy .Apart from those Factors the like Globalisation, Diversity and morals affect the organisation.Globalisation Globalis ation helps in evolution a closer contact between different parts of the valet de chambre, and consider increased the possibility of personal exchange, mutual understanding and friendship among domain citizens. Corporations are expanding their businesses to world market. Corporations go global for the Survival and sustainabilty.Mcdonalds are in operation(p) in more than 119 countries with over 31,000 restaurants in operation.Diversity McDonalds s follow mutation by employing local anesthetic raft and having local suppliers for the restaurants. It also have the different identity card for different countries and follow the culture of the countries. Like non fate beef outputs in India and having different Entries for ladies in Arab Countries respecting the cultural and apparitional beliefs of people.Global marketing decisions are no different than those made domestically moreover the decisions are unique to each rude (Sister Sister, 2005). McDonalds realises diversity as an asset that provokes in the profitability of organisation. Diversity directly reflects the interpersonal relationships.Ethics McDonalds Promote the RMHC(Ronald McDonald House Charity ) which provide room and board, nutrient and blood relation support at a cost of only $10 a day for families with children needing extensive hospital attention. McDonalds sponsor Olympic athletes. Ronald McDonalds Houses are laid in more than 259 communities worldwide and support Mobile care programs which suggest cost rough-and-ready medical,dental and educational answers to children.In addition to their partnership involvement, McDonalds has a long-standing commitment to environmental protection. Restaurants roughly the world have innovative programs for recycling, imaging conservation, and waste reduction. Mcdonalds also help the African farmers by buying fairtrade hot chocolate beans and also the Rainforest Alliances.trade union movement 1.2 Analyze the needs and expectations of a ll stakeholders involved.McDonalds is a people business-Ray KrocPerson, group, or organization that has direct or indirect stake in an organization because it can affect or be affected by the organizations actions, objectives, and policies. ( pipelinedictionary, 2010) nodes McDonalds provide its customer with the nutritionary value of the provender and tend to innovate rising food for its customers and have loyalty options of drink to entertain its customers .It also provide wellnessy food options like salads, urine,delli roll and fruits . licence holders (franchisees) Franchisees are crucial to McDonalds achievement they bed its brand promise smashing to the customer. Nationwide, approximately 85percent of their restaurants are franchised. The sites for the restaurants and either own or leases the land and buildings. The franchisee then, in turn, leases the building from McDonalds by paying a percentage of sales. The franchisee also purchases the homework equipment, furnit ure, play land and signage to complete the fit out of the restaurant. Shared enthronement and shared risk helps to achieve sustainable ontogeny.Employees Employees are the internal stakeholders and directly affect the running(a) of organisation. McDonalds provide bailiwick qualification to its employees and helps to gain work experience. Mcdonalds follow equal opportunities for its employees.Suppliers McDonalds supply concatenation benefits the countries economy. As Mcdonalds lay punctuate on the local suppliers. But the suppliers have to confine the promise of graphic symbol for the customer, the ation, including rigorous feeling control in all areas of operations-including animal welfare, health and safety, handling procedures and cleanliness. By providing local supplies Mcdonalds generate employment in the countries and living economies of thes to be company. This also enhances the growth perspectives of the countries as New Zealand exports beef to fall in States for b eef patties.Community groups RMHC(Ronald McDonald House Charity ) which provide room and board, food and sibling support at a cost of only $10 a day for families with children needing extensive hospital care. McDonalds sponsor Olympic athletes. Ronald McDonald Houses are located in more than 259 communities worldwide and support Mobile care programs which offer cost effective medical, dental and educational services to children. In addition to their community involvement, McDonalds has a long-standing commitment to environmental protection. Restaurants or so the world have innovative programs for recycling, resource conservation, and waste reduction. Mcdonalds also help the African farmers by buying fair-trade coffee beans and also the rainforest alliances. It also is promoting the national Olympics in 2012 .Shareholders According to the Annual report 2010 Mcdonalds have increased it growth 3.8% and the earning per share of the shareholders have increased by 9% and also the follow dividend distributed to shareholders between 2007 -2009 amounted to 16.6 million dollars.Task 1.3Conclude the major changes taking order in the environment that will affect the strategy.Economy is going through the downturn .It is very tough for companies to survive and sustain in the market. each organisation follow the internal and external environment to plan any strategy .Profit Maximisation is the main aim of the organisation apart from organisations do plan for the environmental and the social factors that help in achieving the objectives and goals of the organisation.PESTLE abstractPolitical factors Company is controlled by the policies and regulation of operations .Specific market counsel on different areas of concern such as health, worker protection, and environment .McDonalds while operating in India will follow the rules and regulations of India relating to the tax, trade laws and the rights. For fount selling of the meat is said to be offensive relating to Hindu community particularly that of beef.Economic factors- Economic factors are those factors where in the economy of the business is affected it has a major violation on the business these factors such as interest rate , exchange rates could have a devastating effect on the business special when it a multinational business. McDonalds will have to charge customer in the local up-to-dateness than the standard currency and the worth should be within the purchasing forefinger of individual.Social Factors Social factors are factors originated generally due to the internal stakeholders in the organization, their health and safety. The culture in the organization can have varied effects on the output of the business and the cost of the company is ring more affected due social factors.Technological factors McDonalds use television receiver advert for the for the marketing purpose. Celebrities and animated depictions are used as an mug for I m sweet it campaign. McDonalds use inventor y system and the counseling of the value chain allow the easy payment foe their suppliers and separate vendor which an individual stores in respective markets deal with. Legal Factors McDonalds is proving nutritional information of the food on the publicity and the website of McDonalds. McDonalds is using fruits, oatmeal, salad, water and chromatic juice to go on healthy food habits and fight the obesity. In the Islamic countries McDonalds is using the concept of Halal Food for the buns Customers.Other legal concepts like tax obligations, employment standards, and fiber requirements are only a few of important elements on which the company has to take into amity. Otherwise, smooth operations shall be grave to achieve.Environment McDonalds is using the bin it logo to promote clean federation so that the rubbish packaging should not be dumped by the roadside. It is also promoting going green to take over energy and reducing wastage to save the environment and showing their responsibilities towards society.Through careful planning and working with The coulomb rust we ensure that we use the most efficient equipment for our restaurants fit to the technology available(Katie Saunders ,Environmental Manager, McDonalds UK)Mcdonalds is also using contributing in the environmental impact by reducing the energy consumption in restaurants, miniming the use of water in restaurants like using desiccate(prenominal) urinals in the restaurants.Mcdonalds is stressful to save the environment by reducing waste and reducing the sizing of the trayliners by 10cm which results in 84 tonnes of paper saving. It is also recycling the used readying oil for the bio diesel. (McDonalds, 2010)Balance Scorecard Approach The Balance Scorecard mode was given by Kaplan and Norton .It is a strategic approach and the performance circumspection system that enables organisations to translate companys vision and strategy into implementation and take into consideration four perspect ivesFinancial Perspectives From the Financial Perspectives Mcdonalds like to focus on the positiveness and sales. For Increasing the sales employees are trained to sell large meals. For the profitability emphases is laid on the waste reduction and drive thru which is having trained rung to do the job properly. Hand held are used to less the queues on the drive thru as it lessen customer order processing times.Customer Perspectives Mcdonalds relate to Quality ,Service and value to customers. It tar waste ones time to serve front yield customer in 90 secs and the drive thru customers in 180 sec.Speed and quality is of utmost important to customers. Therefore, customers, like to friendly, unbendable and quality service every time.New reaping like snack wrap, tasty and Great Taste of America is been brought to transportation after sometime to retain the customers.Business Process Perspective From the Business processes Mcdonalds is getting to expand its business by getting global. Also Mcdonalds is adding new product line to its business by opening McCaffes to expand its business. skill and Growth Perspective Employee Commitment is very important in the fast food industry. Employee turnover affect the business as retaining the employees is cost effective as recruiting and cooking is costly. McDonalds provide qualification to its managers from the hamburger university.(maxipedia,2010)Value chain AnalysisFirm Infrastructure Brand Recognition Mcdonalds is globally recognised brand.No.1 in Retail food industry. McDonalds is the market leader and exists at number no. 1 in fast food industry.Franchising About 85% of the restaurants are franchised.Company Image Company hold a muscular image in the community because of the fresh and universal reek.Financial strength Inspite of the economic downturn Mcdonalds annual sales increased by 3.8 % in 2009.Human ResourcesJob Applications Mcdonalds follow the online application system for recruitment.2nd largest U.S employ er engineering science Just in time orderDelivery Mcdonalds use the preserve motortrucks for delivery as the temperature of the frozen meat patties should not be less than -18 to -22 degrees to be served when cooking.Procurement Sustainable packaging Mcdonalds have falld the size of tray liner and also use the packaging that can be recycled in their concern to protect environment.Renewable resources 82% of the packing material is from renewable resources.Oil recycling for the bio diesel.Quality Control For delivery freight truck inspections are inspected and random audits take place for quality control.Inbound Logistics commerce operations Corp. Guidelines for franchisees.Outbound Logistics Distributor agreementMarketing and Sales Productwellness and wellness campaign and product offeringPrice Providing value to customer e.g. Pound menu, party pack for kids.Promotion Coca cola second baseSponsor of Olympics and feeding the athletes .Mcdonalds is sponsoring Olympics 2012 along w ith coca cola and Cadbury.Service hail-fellow customer service.Clean Environment for customers.Fast food service target to serve front counter customer in 90 sec and drive thru customer in 180 seconds. Adopted from Harbott.com,2010Task 2.2 reiterate the position of the organization in its current market.According to The Times In spite of the economy downturn McDonalds is still pushing ahead with the discounting menu. Figures shown by The Times state that McDonald position in the current market is unmoved by the economy downturn .It is following the strategy of the discounting or $ 1 menu making it to increase its profit. It has reported the increased sale as 4.2% of the global rise McDonalds share rose from.38 % in early trading of 1950 to 70.61 in 2010.Mcdonalds is following a low prices strategies on fries,burgers.drinks and the sale of McCafe drinks.(Frean,2010)Mcdonalds is attribute strong position in market as it holds more than 32,000 restaurant in operation in more than 117 countries and it has also added to the new product line McCaffes in 2008 providing cappuccinos and frappacinos. And other drinks. Working towards the environments and Children welfare and the organic food and also feeding the Olympics allows them to fulfil their responibilty towards society.Mcdonalds have planned to open around 1,000 more store in 2010 and invest in $2.4 billion to enhance the brand. Mcdonalds have planned to Reimage the exterior and interior of the existing stores to improve seating, light up and dcor and by doubling drive thru stations to improve renovate and convenience.(Yousuf,2009)Task 2.3Evaluate the competitive strengths and weaknesses of the organizations current strategies.StrengthsWeaknessesOpportunityThreats1) Glo Globalization 32,000 restaurants serving in more than 117 countr117 countries.1) Advertisement techniques that target children1) Innovation Continued alteration such as adding on new menu such as snack wrap and great taste of Amaerica to retain the existing customers.1) true world economic standing the companys revenue streams are diversified, but depending on the the length of this recession, they will inevitably be negatively impacted by the trickle down effect.2) Active Childrens Charity The Ronald McDonald House helping families with children in hospital.2) Consumers use disposable income to purchase fast food meals so when the cipher it treatened, consumers redirect these funds2) Conservation Researching green energies and green packaging solutions cycle of the waste oil to form Biodiesel.. Using Water less urinals in store to save water consumption.2) More Casual Dining Restaurants change magnitude their burger offering and decreasing the price.3) Adjusted Ingredients and product offerings to comply with upgraded health standards deemed undeniable by the USDAMcdonalds provide the universal taste in its menu.3) mankind perception McDonalds has been impacted by negative press like the docudrama Supersize Me by Morgan Spurlock in which he contributed our societies obesity to McDonalds and other fast food chains.3) Exploration Create new product offerings. Continue to use technology to influence revenue strategy possibly use text messages to deliver specials offers to individuals who sign up for such services.3) Public Health Crisis. people are more foccussed on the dietry needs.4) Earns revenue not merely by fast food sales, but also as a property investor, a franchiser of restaurants. More than 85% of the restaurants are franchised throughout the world.Mcdonalds using low price strategy Or the 1 menu which led t increase in sales by 4.2 % globally in 2010.Task 3.1 intention a range of tools and feignings to develop strategic options. turn awayaround Strategy Turn around Strategy is used by underperforming companies to normal in equipment casualty of acceptance levels of profitability, solvency, liquidity and cash flow. Therefore turnround strategy is used to manage, stabilise, fu nd and fix the underperforming and distressed companies.The components of the Turnaround strategies areManaging the turnaround Managing in terms of leadership, stakeholder management.Stabilising by ensuring the short term future of the business through cash management.Funding and Recaptilising the company.Fixing the company in strategic, functional and organisational term.Mcdonalds adopted the turnaround strategy in 2003 when the sales declined, ,Measures for the service and quality of the chain continued to fall behind its rivals.To fight back the Company started to follow a turnaround from the corporate level by obstetrical delivery back the James R Cantalupo former vice president under who the company bloomed from 1990 to 2000 and gained 32,000 franchisees.With the coming back of Cantalupo he started the redesigning by emphasizing more on the quality , friendliness and speedy service of staff and laid emphasis on the increased sales and expanding the more on business. The Mexic an Grill and The Boston which was acquired by the Mcdonalds were let out .McDonalds set out new Product line to its Menu By opening McCaffes around the world as expansion in 2003. Breakfast new menu was added as pancakes with the combination of bacon, sausage and egg which was a great success along with the eat coffee drinks. It also added healthy food as salads, drinks. Company also added new logo I m loving it in the TV Adverts using Justin Timberlake to target teenagers instead of the kids to endorse Mcdonalds which turnaround a great success for the company and company started to increase its sales following the strategy.(scribd,2010)The changes in the external environment of the business can also be determined by the Porter five force model which exactly shows the real picture of the competition in the market.The model of the fiver free-enterprise(a) Forces was developed by Michael E. Porter in his book Competitive Strategy Techniques for Analyzing Industries and Competitor s in 1980. Since that time it has become an important tool for analyzing an organizations industry structure in strategic processes. Porters model is based on the taste that a corporate strategy should meet the opportunities and threats in the organizations external environment. Especially, competitive strategy should base on and understanding of industry structures and the way they change.contention Since the time Mcdonalds started in 1940 it is providing excellence service to its customer. Market is tough and affluentfor fast food industry. Opening up of cafe to the product line and serving breakfast has provided tight competition with Starbuck and other breakfast serving restaurant. Burger king and KFC are the two great competitors for Mcdonalds.Ease of entry it is hard for new entrants to enter the market because of the high cost of entry and enquiry and development cost. Established brand names like Mcdonalds make it even harder and new entrants have to face price competition .Substitutes there are umteen products available in the market for substites.People can go to Burger King And KFC and Starbucks expression for substitutes.Power of suppliers products are not readily available from suppliers so the cater of suppliers is relatively low.Power of Buyers Power of buyer is low.Adopted from marketing teacher,2010Task 3.2Develop a comparative understanding of activity from organizations in the market.Mcdonalds is the market leader in the fast food industry .Fast food business fluctuates with the economy rise and doom, customer taste, cultural differences, climatic conditions and the buying demeanour of customers. Mcdonalds is a customer oriented business focuses on the service, quality, processes and the accuracy of the service delivered to customer. McDonalds tends to provide universal taste of food to customers despite of their regional differences. It promotes diversity among its employees and believes in equal opportunities to its employees. Regular Training and development of the staff at the operational and management level gives it a stand out position in the market. Innovation and the TV Endorsement and its target market and guide word I m Loving it makes it a standalone brand among the customers. To retain Customers Mcdonalds is regularly adding new menu its list and to adapt to cultural differences it follows the culture of the country Like having separate entrances for ladies in the Muslim Countries., to respect religious beliefs of the people it is adapting religious beliefs of the community as serving Halal food in the Arab Countries and Not serving Beef in India. To reduce Carbon dismissal promoting Recycling, to save water use recycled water in toilets, to save trees reduce the packaging paper and tray liners and also recycle paper for packaging. For survival and sustainability it follows the local wage rate, local suppliers, local legal and taxation system, and local ethics.Task 3.3.Create a range of feasible options as the basis of future organizational strategy.Mcdonalds strategy is about the fresh and quality food to customer with friendly service. Mcdonalds plan to win and target customer with the universal taste respecting the religious and cultural beliefs. With the environmental issues Mcdonalds is helping to promote cleaner streets by sponsoring bins in conjunction with the council and also initiating people to get the Rubbish in Bin By Using Bin it motto. McDonalds is also getting in recycling revolution by using the waste oil to get bio diesel .In its motive to Save energy and water it is getting waterless urinals in the washrooms to save water and are trying to use the recycled water. For the packaging of the food it is using more than 82% of the recyclable material and trying to cut the 10 cm of the trayliners used to serve customer which last is saving about 84 tonnes of paper every year. McDonalds is also working for the animal welfare so that that animals are given the f ree field to roam around and is using free range egg for its breakfast menu. ,it is also using the organic food to promote healthy food and also using fair trade coffee beans to help the farmers of Africa.Last but not the least Mcdonalds is sponsoring the london 2010 along with the coca cola and cadb ury.Mcdonalds will still follow the strategy of plan to win and keep on improving its quality, service , speed and accuracy .along with the training and development of employees . finish In the above assignment discussion has been made over Mcdonalds and its policies and strategies over the future which will them to sustain in the future. Though it is a market leader but by showing its concern over the carbon emissions and the work ethics it is showing the great deal of responsibility towards to society . The moral duty is fulfilled by employing diversity and proper training and development. It believes in the equal oppurtunities to everybody And require great commitment from its people to maintain the standards of service ,quality and friendliness so that people can say I m loving it