McDonald’s Franchising Corporation

McDonald’s Franchising Corporation

This research paper is a review of the McDonald’s franchise corporation management. This specifically focuses on its brief history, why it has been selected and what attracted to its selection. This also includes an extensive description and assessment of why it remains as a leading and very successful business enterprise. Lastly, an opinion of why the management style is effective and efficient is presented as well as the willingness to work for a corporation that has a similar management style as McDonald’s.

McDonald’s Corporation is the world’s leading of fast-food chain, predominantly marketing burgers, chicken, french fries, soft drinks and meals. More lately, it additionally sells snacks such as salads, fruit, and carrot sticks. The industry commenced in 1940 by siblings Dick and Mac McDonald in San Bernardino, California and their launch of the “Speedee Service System” in 1948 instituted the values of the contemporary fast-food eating place (McDonald’s Corporation). The current firm sees its beginning to the lucky break of a franchised eatery by Ray Kroc, in Des Plaines, Illinois on April 15, 1955. Kroc afterward bought the McDonald brothers’ capital and assets in the corporation and headed its global extension.

McDonald’s franchise corporation has been selected since it has turned out to be a figure of globalization and the expansion of the American lifestyle, hence a company study of this is indeed worthwhile to pursue. What attracted me to select this corporation is its eminence in making it a recurrent subject matter of community discussions or deliberations concerning obesity,  business ethics and customer accountability.

Its restaurants are established in 120 nations all over the world serving approximately half a million clienteles every day. The corporation also manages a number of eatery labels, and holds a majority stake in Chipotle Mexican Grill and an alternative stake in Pret a Manger, wherein its management diversification can be observed.

Most individual McDonald’s franchises offer both counter service which includes the dine-in and take-out services as well as drive-through service. The new-fangled restaurants will also highlight corners or spots with the “linger” zone which will offer couches, Plasma TVs, and Wi-Fi connections. Various types of music will also be played to each zone.

The McDonald’s franchise corporation’s  commerce model is to some extent distinctive from that of most other fast-food restaurants. Its company trains its franchisees and other workers at a prestigious Hamburger University in Oak Brook, Illinois. As indicated by Eric Schlosser in his book “Fast Food Nation”, almost one in eight employees in the United States have at for a while been working in McDonald’s. This denotes that the corporation provides a great help in the employment of workers. It is as well affirmed that McDonald’s is the sole prevalent procurer of beef, pork, potatoes, and apples. The assortment and preference of meats which the company makes use of adapts with the customs of the host state.

McDonald’s has grown to be symbolic of globalization, which is now and again termed as the “McDonaldization” of the general public (Ritzer). The Economist periodical utilizes the “Big Mac Index” which is the evaluation of a Big Mac’s rate in a range of national legal tenders wherein it can be applied to casually ascertain these exchanges’ procurement power equivalence. A number of spectators have recommended that the corporation should be granted recognition for enhancing the benchmark of service in markets that it goes through. An assemblage of anthropologists in a report entitled Golden Arches East (Stanford University Press, edited by James L. Watson) examined the influence that the McDonald’s franchises had on Asia. In addition to its outcome on commerce principles, the company has also been involved in varying native civilizations. By promoting the scheme of a speedy restaurant serving of food, McDonald’s directed to the reduction or removal of a variety of restrictions, like eating at the same time as walking in Japan.

In the first half of 2003, McDonald’s publicized that it was of their own accord dropping the trans fat substance of its cooking oil. In reaction to communal pressure, the corporation has required to take account of more healthful selection in its menu. Enthusiasts of McDonald’s identifies that the business is booming for the reason that it adjusts to its consumers’ needs and meets the desires of consumers.

McDonald’s has for a long time sustained a wide-ranging marketing campaign. In addition to the customary media such as the television, radio, newspaper, and other publications, the corporation builds considerable utilization of billboards and signage and sponsors various occasions.

In employer-employee relationships, leaders in businesses like McDonald’s is good to recognize and execute new and inventive means to get rid of the leadership disparity between the recent actualities and the leadership required to accomplish the emergent vision. Closing that disparity will entail leaders in the workplace to uphold the commitment, vigor, and guts and cultivate the knowledge expertise and aptitudes necessary to tackle the complications in the recent time. Another is to stimulate the professional side concerning the constant learning and enhancing the essential knowledge to handle successfully and to set up managerial principles and new functional configurations with dedication of energy and resources to build up productive, synergistic relations with the members of the company or enterprise. Ascertaining opportunities are as well significant to engage the members in program and service plan, appraisal and progression and the McDonald’s company assures that they implement these things well.

Managers time and again discover themselves so lost in thought with the difficult task of administering promotion courses, taking charge of human resources or personnel and transaction strength, and being present at to the habitual chore that they lose vision of the bigger scene. On the other hand, it is necessary from time to time to move back, obtain a slight point of view, and carry out certain critical performance of strategy. The wide-ranging range of tactical arrangement takes in each and every item for consumption or service that a venture of business enterprise, company, or corporation presents, every single market they serve, both interior and external variables, and manufacturing, research, pecuniary elements, and other managerial fundamentals required for success.

Inside appraisal of the business may be incorporated with the use of strategic planning here turning to a across-the-board examination of inner progression, together with information schemes, creation connections, competition, allocation means and organization arrangement.

From the point of view of Whitely (2000), commerce managers must appear to be engaged in sociopolitical discussion not only for the reason that their businesses have much to adjoin but also because they have a considered attention in performing so which McDonald’s consistently attends to. Societal and political pressures, in any case, can modify a business planned landscape basically; they can tear the repute of industries that have been observed as oblivious and are viewed as being responsible; and they can produce worthy market prospects by drawing attention to unattended communal requirements and fresh buyer inclinations. The challenge is to discover a technique for companies to fit in a consciousness of sociopolitical issues more scientifically into their interior tactical decision-making processes. Businesses must catch sight of the public and political proportions not just as threats or parts for harm restriction, but as well as prospects. They must examine the possibility for rising patterns in business and put together their reactions across the association, so that the consequential schemes are logical.

As a conclusion, the management style of McDonald’s franchises is effective and efficient as depicted on the abovementioned management approaches of the company. At this instant with the corporation’s strategic planning tools at hand, McDonald’s business enterprises can now set up, design, and prepare long term aspects for multi-trained communication and dealings core and project back-office settings or situations; building up most favorable conscription procedures that reduce outlay while coming to get certain objectives and offering supervisors with the facts they must have to go through and hastily consent financial plans, labor force personnel running, optimization, and quality monitoring, primarily. Secondly, the firms can now measure or gauge the outfitted and pecuniary paybacks and effects of diverse circumstances ahead of constructing resolutions. Third is that they can already enhance forecasting precision with advanced scrutiny of historical information. They can eventually plan their wherewithal ahead to replicate anticipated client demands and plan their allocation of resources in venturing for other projects in the future.

I am definitely willing to work for a corporation that has a similar management style as McDonald’s since it is an honor for me to work in a prominent corporation which includes effective and efficient policies and implementation schemes not merely for the benefit of the corporation itself but also for the benefit of its employees.

Works Cited

McDonald’s Corporation. “McDonald’s Success Stories.”

http://www.mcdonalds.com/usa/work/successstories.html. 2006.

Ritzer, George.  The McDonaldization of Society. ISBN 0-7619-8812-2. 1995.

Schlosser, Eric. Fast Food Nation. ISBN 0-395-97789-4. 2001.

Stanford University Press, ed. Watson, James L. Golden Arches East: McDonald’s in East Asia.

1998.

Whiteley, R.C. (2000) The Customer Driven Company: Moving From Talk to Action.

Pfeiffer & Company, p.34.