McDonalds Management Issues Report (2004)- Free Solution

McDonalds

McDonalds

TABLE OF CONTENTS

I      Executive Summary……………………………………1

II    Introduction………………………………………………2

  • McDonalds

III    Identification of key facts……………………………….2

  • Competition
  • Main aim of the McDonalds
  • Current Situation

IV   Central Problems and Issues……………………………….3

V    Cause of Problems…………………………………………3

VI    Recommendations………………………………………..5

VII  Implementation.

VIII   Prediction of Impact

Executive Summary

The purpose of this learning group project is to examine the human resource subjects and to develop the extent that it can be demonstrated to design a desirable future. The primary motive was to understand in detail the recruitment process of all organization and how they deal with the problems coming in the way while employing new people from different backgrounds.

This group project looks at the McDonalds as its target organization

Identification of key facts

Introduction

McDonald the world largest chain of fast-food company serving approximately 70 customers with about 35000 restaurants in more than 110 countries. The company began in 1940 in California and operated by Richard and Maurice McDonald. After that, Ray Kroc joined the company as a franchise in 1955 and built McDonald into the most successful fast food operation. McDonald has distinct offering that embrace the local taste. Therefore, they have diverse product range all over the world. Their primary sells are french fries, chicken, hamburgers and breakfast items, soft drink, milkshake. In 2013, approximately 19% of are operating and owned by them self. They earn revenue as an investor in properties. The rest of them are operated by franchise 57% which are franchiser and nearly 24% are licensed to foreign affiliates or developmental licensees. Most of McDonald’s revenue comes from rent and fees paid by form sales in company and franchisers.

  •         Mission- “To be our customers’ favourite place and way to eat and drink.”
  •         Vision- “To be the world’s best quick service restaurant experience.”

Competition

McDonald competes with international, national and local retailers of food products based on service convenience and price. Competitors including Wendy’s, KFC, Subway, Burger King.In order to compete with others, McDonald’s aim to maximize the profit by keeping the cost low.

The main Aims of McDonald

The Main Aims of McDonald

Survival as McDonald started out, they would aim to stay in the business by earning enough profit from customers.  When the person or manager opening a new McDonald restaurant, they would aim for making enough money to cover its cost. Profit maximization-Profit maximization may have been using by McDonald since its business has grown successfully. For instance, McDonald has done selling two burgers with price of one. Therefore, customer assumes they are getting value for their money.  The other focus for McDonald is growth, even though it have succeed in McDonald, they still have to fulfill their new targets. The company owners and managers would set themselves objectives. These objects can be short term but the aim of targets will be long term.

Current Situation

In order to meet McDonald’s goal, choosing the right people is very important for McDonald. McDonald exams the number of available to work. They look into

  1. How long they can work for
  2. Productivity
  3. Employees ability due to required job

They also concern about getting the right people,

Even though McDonald has over 300,000 of applicants each year, it is still experiencing high turnover rate. According to the report from National Restaurant Association, it has average annual turnover rate of 60%. The reason could be career change, return to education and other reasons. Recruiting employee is expensive and McDonald would try to minimum the turnover rate as possible as they could. Mostly McDonald employs young people which are mainly students and they work as part time. Students will probably leave the job at anytime while they are having school. In other words, recruiting method and job incentive could also be a huge concern. In order to solve the issue, we first came up with the cause of problems. Then discuss what are the best solutions to fit into the current situation.

Central Problems and Issues

Cause of Problems and Issues

  1.      High Employee Turnover: – Recruiting wrong employees at first place is the foremost reason of high employee turnover. The second reason most employees leave jobs is due to low job wage rate affecting their motivation levels. At organizations like McDonalds where most of the employees are part-time and hours are not guaranteed also leads to employee turnover. The younger workforce has an innate positive outlook. When they are forced to stock those shelves, price that merchandise, etc., it gives them plenty of time to say how much their job sucks. This is the reason that  many employees leave their jobs for greener pastures only a few months after starting.
  2. 2. Hiring Manager Issues: – Sometimes, recruiting teams hiring method is not sufficient enough to attract new talent. Manager does not want to keep outstanding team in order to keep his/her current position Human resources managers and executives from the departments involved in the recruitment process need to carefully select the right candidate to be sure he or she will turn out to be an asset for the organization. Often, the person in charge of designing job descriptions or making the final decision about who is hired puts in insufficient effort to find the most qualified candidate, picks a candidate based upon personal characteristics rather than professional competence or fails to use effective interview tactics. For this reason, some HR departments opt to play a more direct role in recruitment or use a full-time hiring manager within the department.

3.Quality of Candidates: – Good and efficient candidates are easily snapped up by big companies and it can be difficult to lure them to a new job, particularly if the job doesn’t have a top notch benefits package. When the hiring process itself takes a long time, the best candidates are sometimes opt to take a job from another firm. Further, many businesses do not have a hiring and recruitment strategy and instead simply seek a new employee when there’s a vacancy. This can decrease their access to the job pool and make it more difficult to recruit a quality employee when there’s a vacancy.

  1. Job incentive: – Compensation, benefits and working environment are all significant factors in employee recruitment. In a tough economy, many businesses cut back benefits, which makes it much more difficult to attract the best candidates. HR departments often have to find creative strategies to make a job or job listing more appealing by giving certain rewards and bonuses in order to attract more and efficient employees to work for the organization. No one wants to work harder so someone else gets a reward. Find a way to include everyone somehow – not just on a sales goal but in keeping the “Atta boy” attitude, so everyone feels good about the job they do for you.

 

Recommendations and Implementations

Solutions:

  1. High employee turnover

 

Hire more selectively by having a  more professional interviewer system. Pick the right employees and qualify their working motivation and behavior to ensure how long they are able to work for the company.Provide some questions when having interview is also needed. After work, managers will be willing to meet with employees and ask for feedback regularly. Communication with them and know what they like and dislike about their job. If employee can see their suggestion are being taken to heart, they will be more happy about the work. You hire the wrong people. Just because you’re tired of interviewing, you can’t just take anyone because they say what you want to believe. You need to see if they are able to talk to people, not just say they can.

  • Recommendations
    • hire the right person at the start
    • guarantee work hours
    • build trust
  • Implementations
    • have multi interviews
      • interview by at least 2 managers
    • ask how many hours the candidate is willing to have per week, and the minimal hours he can accept
    • managers should offers to help the subordinates, build trust when working together

when recruiting, have pre-set questions, evaluate and compare each candidate’s response and choose the best suit candidates

have 2 handlers to make sure everyone is being treated fairly Human resources managers and executives from the departments involved in the recruitment process need to carefully select the right candidate to be sure he or she will generate a high return on the investment that the company is about to make.

 

  1. manager issues

You keep promoting employees who are good at tasks to supervisors. Employees quit managers, not brands. Promoting someone because they get things done isn’t the only criteria. Those managers with poor interpersonal skills will be tolerated by a certain type of employee, but the best employees will move on quickly. A manager’s main job is to develop a crew who feels it is their store, and not leave them feeling like they are a cog in a wheel.Your training is minimal. Just because an employee has previous experience does not mean they will understand what makes your store different. You have to tell them explicitly what you are trying to do with your customers and how it is different from every other retailer on your block. You make every day the same. When everyday’s the same, employees get bored. Yes, customers can keep them interested, but we’re talking about the job itself. Many times we look at some employees as too valuable where they are. Mix it up for employees who have been with you for a while; give them new duties, training, responsibilities, etc.

  • Recommendations
    • subordinates will be under different manager for every 6 months
    • subordinates will rate their managers
    • A manager just gives orders to employees and doesn’t put requests into context or explain the goals or desired outcomes of requests. He or she is seen as a dictator. – explain details of the work, make sure all the staff are aware of it
  • Implementations
    • set up 2 teams. each lead by different managers, and they rotate to lead each team every 6 months
    • managers receive feedbacks from subordinates (anonymous)
    • send email to all staff, publish a memo on the Announcement board

 

  1. Job incentives

Every company needs a strategic rewarding system to motivate their employee. This includes compensation, benefits, recognition and appreciation. Establish a reward system according to employee’s behavior and reward them every certain amount of period. Rewarding system motivate employees more creative and productive, therefore,  more profitable to the company.

There are no incentives, except at the manager level. No one wants to work harder so someone else gets a reward. Find a way to include everyone somehow – not just on a sales goal but in keeping the “Atta boy” attitude, so everyone feels good about the job they do for you. Your employees are thrown into the job and not even introduced to the crew. Millennial employees don’t have the skill set to pro-actively meet other employees. You have to make an ongoing effort to bring people together, not keep them apart. You don’t encourage employees to think, only to do. The younger workforce has an innate positive outlook. When they are forced to stock those shelves, price that merchandise, etc., it gives them plenty of time to say how much their job sucks.

  • Recommendations
    • rewards employees
    • flexible work schedule
    • work with your team, don’t  tell them what to do and take a initiative to help them at every step
    • raise wage
    • set up social event / “don’t leave your family behind”
  • Implementations
    • rewards – cards (apple, amazon) / trip
    • outline the challenges, set goals
    • employees that had consecutively won the best employee of the month 3 times deserves a raise every half year (how much do you guys think is appropriate?)
    • staff dinner every half year, so everyone can relax and get to know each other (store base). a huge event (regionally) should be held annually, at this event, staff and their family members are welcome, location of the event can be like PNE etc

 

in order to attract high quality employees, the organization can provide exclusive benefit package/ tailor made benefit package base on the candidates’ needs

reward employee for hard work such as  movie tickets, gift certificate to a store or even ticket  for concert or sports game. Employees will be motivated as they are excited with these prizes.

or create social event such as having people go out to lunch or  create a team sports league to have them get to know more about each others.

 

Prediction of Impact

high employee turnover

Because most of the employee in McDonald are students, they also have school to focus, so most of them might not have guarantee work hours, that is the main reason cause high employee turnover. The other reason is that the manager did not hire the “right people” at the first time. Some people might just want to get a job to gain more experience or waiting for the better job for them, so once they get the chance for the better job, they will leave their position right away. And sometimes the employees and employers may not have enough trust, at this point the employee might feel disrespected,  so they might quit the job.

To hire the “right person” at the start, the company has to have multi interviews, and occur more managers, it would cost more money, but if the company would like to spend the advance money, then it would definitely help the company to save more money for the high turnover in the future. For the student employee turnover, the company can make them guarantee the work hours, even they are part-time workers, they can still make sure that how many hours they can work every week, and make a schedule, so that every part-time worker can stagger their work time. So the company doesn’t have to have more full time employee to replace the part time employee, the employee’s work hour can be flexible, and it can also help the company save money because usually the company won’t apply the same benefit to the part time employee as the full time.  Also, the employer should treat every employee equally, and give them respect, so the employee can feel be trust, and feel happy to work.

 

manager issues

Everyone have different personality and different skills, so different manager would have different training to the subordinates. But if the subordinates only follow one manager, he or she can only learn things for one person, it could be one-sided, and sometimes the manager could told them wrong or get bored in working. So if the subordinates can be under different manager for every 6 months, them they will have the opportunities to contact different managers and learn multi things from different people, it can help the subordinates broaden their vision and do the job well.

However, they can make the subordinates to rate their managers anonymous, so that the supervisor can know how the manager working without knowing who provides the information. This would protect the subordinates. And also encourage the manager to do better in their job.

 

job incentives

Job incentives is important for a company, because it is the motivation for the employees. Every company wants their employee work harder, but they need to give their employee as much payback as what they do for the company, otherwise no one would like to work. Some companies give the high level employee good job incentives, but not low level employee, this is why so many big companies’ employee strike.

To provide employee better work environment, the company will reward employees, such as give bonus every month to reward those who work really hard. This would make the employees motivated at working, even the job is bored or tired, they will still willing to do it because they have well payback after this.

Also give employees flexible work schedule, when they are sick or have family emergency, they can take a day off, although it might give some more unconvince for the company about the workers’ schedule, but it would make them feel more respected and treat well in the company. Everyone doesn’t like others to tell them what to do, even it is the work, people need to be respect, so the manager needs to treat the employee like a friend, don’t be bossy, help the employees when they need a hand. It would make the work environment relaxer. Last but not least, everybody who work is for the salary, so raise the wage is the most important things for both employee and employers. Appropriate raise the wage if the employee done well, could increase the passion of the employees, and make the good employee stay in the company and work for them. Otherwise the good worker might chose the other company who can pay well for them and leave.

Bibliography

reduce high turnover :

http://guides.wsj.com/management/recruiting-hiring-and-firing/how-to-reduce-employee-turnover/

http://www.leadergrow.com/articles/27-10-keys-for-reducing-turnover

interview questions;

http://jobsearch.about.com/od/interviewquestionsanswers/a/interviewquest.htm

cause of problems

http://www.retaildoc.com/blog/8-reasons-why-your-retail-employee-turnover-is-so-high

http://smallbusiness.chron.com/hr-recruitment-issues-59561.html

Solution

Management Issues with McDonalds

Table of Contents

Executive summary……………………………………………………………………………………………………….. 2

Introduction and Key facts…………………………………………………………………………………………….. 3

Introduction………………………………………………………………………………………………………………… 3

Marketing…………………………………………………………………………………………………………………… 4

Current situation………………………………………………………………………………………………………….. 4

Central problems and issues………………………………………………………………………………………….. 5

Causes of the problems and issues…………………………………………………………………………………. 5

Job incentive………………………………………………………………………………………………………….. 7

Recommendations and Implementations………………………………………………………………………… 8

  1. Quality of candidiates……………………………………………………………………………………. 9
  2. Hiring manager issues…………………………………………………………………………………… 9

Predictions of Impact…………………………………………………………………………………………………… 11

References……………………………………………………………………………………………………………………. 12

 

 

 

Management Issues with McDonalds

Executive summary

This learning group project aimed at evaluating how management problems are handled by organizations, and later how they make rational decisions to save their organizations from collapsing. The main objective of this research is an overview of marketing, its processes, and how to deal with problems arising from wrong marketing strategies. The group chose McDonalds as the organization for the study. This essay reflects on the major management problems that have been facing McDonalds since its establishment. Some of the issues have been solved while others exist up-to-date. For the already solved problems, the essay helps determine how they were solved, the strategies used, and what can be added so that these problems do not occur again.  This essay helps ascertain some of the solutions that can be used in neutralizing the problems and their impacts on the firm.

Introduction and Key facts

Introduction

McDonald was named as the largest fast food chain company in the world with its restaurants all over the world in more than 112 countries. The management McDonalds has been striving to reach its vision, which is to give the best experience to fast food customers in any part of the world. However, this achievement has not been achieved in a day. The whole idea was introduced in 1930 by brothers, Richard, and Maurice, when they planned to try their fortune through the opening of the first barbecue (Mieth, 2007).

Although this came to surface seven years later, the brothers had made several milestones in coming up with a restaurant that would be different from the existing ones in town. The restaurant received good market as well as good response from the customers. Consequently, the brothers decided to increase the variety of foods for sale. After 14 years, they limited the menu again to nine foods, so that they would increase the quality of the food. Currently, the McDonalds restaurants are seen as the quintessential for the American culture, which is characterized by people’s love for fast foods (Mieth, 2007).

Marketing

McDonalds is recognized to be among the best-known brands in the whole world. For this brand to be established over years, the management has engaged some of the best marketing strategies that any organization can deploy. One of the main practices that McDonalds holds is listening to its customers. Marketing aims at improving and maintaining a positive reputation of the brand among its customers. In order to achieve this, the organization makes use of promotion, advertising, use of colors and designs. For instance, any person would be able to identify the logo of McDonalds, which is the Golden Arches. Through proper identification of the needs of their customers, McDonalds has been striving to meet these demands in a unique way compared to their competitors. As a result, it has been able to establish a positive relationship, which enhances customer loyalty in the long run.

Current situation

The marketing department for McDonalds has already done enough market research to help in making marketing decisions. In the marketing mix, there are four components, which are price, product, promotion, and place. The organization has made sure that its research has a full identification of different types of customers. For this reason, it can identify its strengths, weaknesses, opportunities and threats. One of the strengths of the business is that it has a detailed market research that covers an all that is required for the right marketing mix. It has a weakness of failing to innovate enough because of its lengthy existence in the market today. One of the opportunities is an increased number of customers that may arise from solving some of the problems like delays. Lastly, it has the threat of the changing lifestyles of customers and new competitors in the market today.

Years of development of the fast food chain have seen changes in the management. For instance, the McDonalds brothers gave Ray Kroc franchising rights in 1955. This agreement is attributed to the success that the company has achieved so far. It earned much reputation in most parts of the world. Other franchising agreements have been made progressively, and this has led to the growth of the company to a great extent. The owners of the company earn from the franchising fees, and this increases the revenue of McDonalds. Conversely, as the company continues to expand, the problems of management become more complex to solve. They require a lot of expertise, skills, consultations and knowledge to solve. The management of McDonalds has found itself in some management crises, which it has had to involve the use of problem-solving tools in order to find an amicable solution (Mieth, 2007).

Central problems and issues

Causes of the problems and issues

  1. High Employee Turnover

There has always been a high rate of replacement of employees in McDonalds. This is a signal that the organization engages in wrongful employment of workers, and, therefore, their preferences in employment do not match the standards present in the organization. Also, it is an indication that the organization does not offer comfortable wage rates that employees would be proud to stay in their jobs. When an organization has a low wage rate, employees will tend to move out of the business and find other better employment positions that match their desired wage rates. In McDonalds, most the workers work on a part-time basis, and, therefore, this can be termed as a source of the high employee turnover. This is because workers are always more comfortable when they work on a full time. Also, the hours are not guaranteed, and this means that the salaries may fluctuate depending on the available hours of work. For these reasons, employees are not able to stay in their current jobs for long before deciding to look for greener pastures.

  1. Hiring manager issues

The organization decides to hire managers whose only work is to recruit new candidates to the workforce. The efficiency of these recruiting teams is highly doubted to produce enough talents that can be used in the organization. However, managers are not willing to maintain a good team for recruiting best employees in fear that his or her managerial position may be toppled. For selfish reasons, the managers may fail to select the most qualifying candidates in fear that they may be promoted to replace their positions. The managers ought to change this mentality and choose employees who will be regarded as assets for the organization. This problem has gone to the extent that the team mandated with the role of choosing good employees make their decisions based on the personal outlook instead of their competence in the recruitment police.

  1. Quality of candidates

It is difficult to introduce efficient candidates to performing their tasks since bigger companies offer better perks. Good employees believe that they have had enough experience, and therefore they prefer companies that will offer good jobs with better employment benefits packages. During the hiring process, the best candidates chosen may even be directed to work with other firms since the company may not be able to offer such packages. Most of the firms do not have a hiring and recruitment strategy that can help the firm to establish a good workforce. As a result, the company ends up picking candidates who are not fully qualified. Limited knowledge and experience may deny the access of these candidates to the available jobs. The company has also been experiencing issues regarding employees working in different environmental contexts. For instance, when an American is employed to serve in a Chinese environment, he or she may not understand some of the cultural aspects that are requisite in the treatment of the Chinese clients. This cultural misunderstanding may cause serious problems in customer retention practices of the organization.

  1. Job incentive

There are several factors to consider for a family during employment. The best candidates are found in such environment where they are working so hard that other employees. This makes everyone proud of the employee because of his or her professional standards all through. Over the last one decade, the management of McDonalds has been contemplating a lot on how to deal with the rising cases of competition among restaurants, especially in the United States. Also, this competition has been spread to other countries, where restaurants feel they need to outdo a foreign country. For this reason, the company has experienced a decline in sales of its products. This can only be solved through re-strategizing in order to ensure that it remains at the top in terms of sale of fast foods. This includes through offering good job incentives on the current employees. Some of the visible competitors in the U.S include Burger King (BKW) (Peterson, 2014). The new firm has been selling barbecue sandwich at a more affordable price than the same quality of a McDonald’s barbecue sandwich. As a result, the brand of McDonalds has been declining every day, which has resulted in a decrease in market for McDonalds. Another competitor is WEN, which sells chicken sandwiches for a similar price. The company has been instrumental in trying to find ways of defeating the competitors. WEN has increased its quality of products, and this has come to be a real problem for McDonalds (Peterson, 2014).

In the case of competition, the main cause of competition in the United States for McDonalds is ineffective management of the food chain stores because of the large scale production of food. For this reason, several films are taking advantage of the situation and trying to capture some of the markets through offering better quality food products at a lower price (Peterson, 2014). Also, there are usually long queues in McDonalds. It would be functional if the competitors establish food outlets that will become alternatives in case some people wanting to buy food products are not able to wait for the long queues at McDonalds. The main reason people consume fast food is that the foods provide fast satisfaction, and people can continue with their business. Therefore, long queues may discourage people and opt for other firms that can produce ready foods (Smit, 2007). All these can only be managed by hiring employees and exposing them to competitive advantages that will help them stay in their jobs. The organization can offer to help the workers by training them in order to motivate them, and make them more competent and committed towards their jobs.

Recommendations and Implementations

A company faces problems when it fails to meet goals that had been set by the management. At this point, it is important to engage managers from all managerial levels in establishing the difference between what happened and what the managers had planned would happen. This process is known as problem-solving where managers try to find corrective action that will help in problem-solving that can realign the company with its objectives again. After a successful problem-solving process, the managers will need to make decisions that will outline the steps to take in order to realize the pathway of realizing these organizational objectives. Managers have been entrusted with the mandate of achieving the organizational goals, and this makes them responsible for their actions and decisions. It is, therefore, important for them to make rational decisions after careful research and an overview of how to solve these problems (Smit, 2007).

  1. Quality of candidates

MacDonald’s will have to change its strategies if it has to revive its glory and continue earning the supernormal from the numerous chains inside and outside the United States. The organization should hiring more women because they can work on part time jobs, which is the main basis of employment by McDonalds. It should stop assuming that women are in the group of minority consumers, and place them as worthy to influence decisions on sales, more than any other group of consumers. It is worth to note that women are the conduit of the children’s market since they are their closest guardians. Women determine what their children eat, and, therefore, by ignoring women, McDonald’s will also be ignoring the children. The company, therefore, ought to shift its strategies towards women since they are the major drivers of the economy through controlling consumptions (Ahlstrom & Bruton, 2010).

Hiring manager issues

McDonalds can come up with strategies that will help control the rate at which competitors are taking up the customer base. Increasing the efficiency of managers whose only work is hiring will not only increase the quality of candiates, but also help solve some of the conflicts that affect the quality of products. Efficiency can be increased through having an insight body that will oversee the recruiting practices of the managers and their teams. It is essential for the managers to increase the number of supervisors in order to increase the efficiency of the existing employees in the company. At times, the problem of long queues may be caused by the inefficiencies by employees who work under immediate supervision (Smit, 2007). In the event that employees are overwhelmed by the service of the customers, the managers should consider increasing the number of employees in these companies for better, quality and prompt service to customers. Also, it is the high time that McDonalds decreases the variety of foods, it offers depending on the population preference of a location. The management will, therefore, be able to maintain the quality of the food in a way that it will be in line with what the competitors provide, or still, way above them. This will help in customer retention, which has been the most difficult case for already established corporations today (Smit, 2007).

Another strategy is through recognizing the significance of standard recruitment and selection processes. It should engage in comprehensive recruitment and selection processes. One of the ways to ensure that the quality of candidates is maintained at high level is through standardizing recruitment and selection processes. This should be done through incorporation of important elements such as qualifications and experience in various job positions posted (Ahlstrom & Bruton, 2010).

The company should be ready to implement these recommendations if it has to sustain its profitability and perpetuity in the market today. There are several ways of implementing the plans as indicated in the recommendation, depending on the type of problem the company is facing.

High employee turnover

It has been discovered that women tend to remain in their jobs because they gain higher satisfaction more than men. For this reason, organizations should look out to hire more women than men in their workforce. In the first case, the company should increase the number of women working for the company. In this way, it will help influence the women into believing that it considers them in influencing the market of the company. Also, the company should consider designing the products to fit women’s needs. This will help attract a more female market, as well as, children, whose purchasing power, in most cases, is determined by women. Finally, the company can also incorporate women in marketing tools such as advertising. Images of women can be used in billboards and TV advertisements to encourage other women on the use of fast foods from McDonalds. This will help increase the involvement of women in consumption of fast foods from McDonalds (Smit, 2007).

Quality of candidates

The organization needs to have the right qualities of candidates in all its branches in the world. It would be better to employ candidates who are more inclined towards a certain community. For instance, it can only be fair to employ a Chinese employee in the Chinese environment so that the customers can relate to the people who serve them. In addition, the Chinese employees may feel better when working an a related environment than engage other workers in such an environment. It would be easier to involve the use of Chinese employees to allow entry of the organization in China. There were several policies that would deny entry, but use of wise strategies allowed entry and later, thriving of business in the country. Regarding the Chinese market, the company’s strategies worked in a big way that allowed the entry of hamburger. This proved to be difficult in the country, owing to the cultural and legal policies of the country. Another way that can increase the company’s involvement is adopting some of the foods that the Chinese use. This will help in increasing the involvement of the Chinese. They will feel proud that their country’s culture of food is used by a multi-national corporation (Smit, 2007). Consequently, they would love to be associated with the company. As a result, increase sales and customer base for McDonalds. Competition can only be outdone when McDonalds increases the quality of the products and gives the customers what they want. Market research, at this stage, is extremely useful. This is because it helps the company come up with the best strategies that will orchestrate an increase in customer involvement, as well as retention (Ahlstrom & Bruton, 2010).

Owing to the high competition in food industry today, McDonalds ought to increase job opportunities in the company, and hire more people who will ensure that the company has smooth operations. When there is a higher number of employees, the company will gain a competitive advantage since there will be fewer cases of delays, inefficient management practices and poor customer service.

Predictions of Impact

After the company has implemented all these strategies, it is certain that it will be restoring its reputation and glory. McDonalds has been serving very many customers in a day from the 350000 restaurants all over the world. Ensuring continuity will work a long way in ensuring that the fast foods maintain their quality, workers retain their employment positions, and other benefits accrued from the existence of the company are still achieved. By utilizing the competition strategies, the company will be able to maintain its customer base (Smit, 2007). Advertisements will help a lot in the creation of new awareness, as well as reminding the current customers of the existence of the restaurants. Also, through market research the management will be able to note any new gaps that need to be filled in the food industry. All these strategies are aimed at helping the managers achieve their role of meeting the organizational objectives.

References

Ahlstrom, D., & Bruton, G. D. (2010). International management: Strategy and culture in the emerging world. Australia: South-Western Cengage Learning.

Mieth, H. (2007). The history of McDonald’s. München: GRIN Verlag.

Peterson, K. (2014). 3 problems dragging down McDonald’s. CBS. Retrieved from: http://www.cbsnews.com/news/3-problems-dragging-down-mcdonalds-business/

Smit, P. J. (2007). Management Principles: A contemporary edition for Africa. Cape Town, South Africa: Juta.