McDonald’s is an American fast food restaurant chain established in1940 by brothers Maurice and Richard McDonald. In 1948, the duoreorganized their hamburger stand business by adopting productionline principles. In 1955, businessman Ray Kroc joined McDonald’s asa franchise agent before subsequently buying the business from theMcDonald brothers (Kroc, 2016). The company, whose headquarters is inIllinois, is one of the world’s biggest restaurant chain, operatingapproximately 36,899 outlets in 120 countries, and serving an averageof 68 million customers daily. The company’s core business is tosell hamburgers, French fries, cheeseburgers, breakfast items,desserts, soft drinks, wraps, and milkshakes. To respond to shiftingconsumer demands, McDonald’s introduced fish, fruit, salads, andsmoothies to its menu (Kroc, 2016). The company is the world’ssecond biggest private employer, with its restaurants operated byeither affiliates, franchisees, or the company itself.
McDonald’s Plan to Win strategy encompasses five factors namelyprice, place, promotion, people, and products. The company focuses onboth its employees and customers, including fostering a nurturingatmosphere for it employees to guarantee continuity of organizationalcustomer service strategies. To ensure smooth running, McDonald’sbalances the needs of its suppliers, franchise owners, and employees(Hill & Hill, 2012). The organization aims at offering itscustomers with high standard food, value for money and quick service.McDonald’s growth centers on a combination of its Plan to Win,financial strength and competitive advantages. Because it is publiclytraded, maintaining consistently high shareholder profits is a majorobjective of McDonald’s.
McDonald’s marketing and sales activities include advertisement,and promotion product mix. Marketing is critical to helpingMcDonald’s to ascertain the competitiveness of its value addingundertakings. McDonald’s sales and marketing competencies includeusing a competent sales forces, suitable distribution channels,innovative strategies to advertising and promotion, properlyidentifying customer needs and segments, and using effective pricingstrategies (Mattern, 2015).
McDonald’s Human Resource department oversees the recruitment,training, and compensation of employees. The department is alsoresponsible for employee development, benefits administration, andensuring company compliance with national and federal occupationaland health standards. McDonald’s adopts a holistic approach inrecognizing employees and providing them with comprehensiveremuneration, benefits and development packages (Kroc, 2016). Withthe constant evolution of market dynamics, McDonald’s continuallyassesses its benefits programs to ensure that its workforce receivesbenefits that demonstrate the value the company places on them.
McDonald’s operations management encompasses sustainable productionand product and service delivery. The company maintains a transparentproduction process that allows customers to dictate ingredientsincorporated into their food. McDonald’s production strategyencompasses systematic arrangement of all raw materials used inmaking fast food, for instance, different sauces, salads, chips, andcheese, to make the production process efficient. Additionally,McDonald’s operations management encompasses the management offacilities for preparing food, as well as providing servicingactivities (Hill & Hill, 2012). These facilities includeequipment and buildings that facilitate food production and delivery.
The company also upholds high ethical standards and engages in socialresponsibility under its Ronald McDonald house charities thatsupports vulnerable populations. Additionally, McDonald’s socialresponsibility encompasses a sustainability framework aimed atpositioning the organization for the future. The socialresponsibility and sustainability framework aims at enhancingin-restaurant recycling and undermining waste within its top markets,as well as serving more healthy food, including vegetables, fruits,whole grains, and low-fat dairy (McDonald’s, 2017). Additionally,McDonald’s maintains sustainable beef production by committing tobuy some of its beef from certified sustainable sources.
Hill, A., & Hill, T. (2012). Operations management (3rded.). New York: Palgrave Macmillan.
Kroc, R. (2016). Grinding it out: The making of McDonald’s. NewYork: St. Martin`s Press.
Mattern, J. (2015). Ray Kroc: McDonald`s restaurants builder:McDonald`s restaurants builder.
Minnesota: ABDO Publishing.
McDonald’s. (2017). McDonalds sustainability reports.Retrieved from