The paper 'MacDonald’ s Company in the UK - Overview of the Incident" is a good example of a management case study. Agency-client relationship is a key determinant in the performance of any company. This kind of relationship enables agencies to establish an active business environment with their clients. To make this relationship useful, there is a need for effective and accurate communication that meets the needs of both parties. More often than not, clients are influenced by the way that the agencies they conduct business to handle their concerns.
On the other hand, agencies are moved with the way that clients present themselves. Bad agency-client relationships are normally created by miscommunications which erode the integrity and confidentiality established in business there before. Additionally, bad agency-client relationships can be as a result of appalling economic forces such changes in technology, government policies and internal administrative decisions. In this essay, McDonald’ s Company in the UK, that is a leading restaurant chain, will be used to examine how the economic forces aforementioned led to a poor agency-client relationship and how it was able to revive. 2.0 McDonald’ s Company Incident 2.1 Overview of the incident In 2015/2016, the company experienced an acute decline in financial performance as compared to the previous years.
In the financial period 2015/2016, the number of customers reduced drastically from 1,101,878 to 5,675,210 (Cummins et al. 2016, p. 308). The net profits for the company reduced by 10 percent comparing it to the yearly increase of 2.5 percent in the previous financial periods (Cummins et al. 2016, p. 308). Cross-examination of this problem revealed that the management disregarded the need for positive agency-client relationship and thus most customer demands were not met.
One of the factors that led to customer turnoff was the issue of technology. It was established that its rivals such as Estrella Damm had met customer demands by use of technology. Due to a bureaucratic communication structure, the customers were unable to channel their concerns to the management for consideration. Additionally, government policies such as Brexit pulled away customers of which the company did not take any measures to control. As a remedy to cover the Brexit effects, the company decided to downsize its operations which further caused inconveniences among customers. 2.2 Contributing Factors 2.2.1 Technology McDonald's Company has been among the restaurants that are slow in technology, in comparison with their competitors such as Estrella Damm who have already broken the grounds.
For instance, the customers expressed the need to facilitate the payment process to avoid delays. They also demanded a platform where they would be served with digital menu boards, entertained with gestures enabled games and services facilitated by online coupons. As per their experiences from other companies that offer these services, digital menu boards would allow for quick customer service.
Reports indicated that three out of five customers who were interviewed by the marketing department revealed that their orders and services were being delayed due to complex manual signage (Thompson et al. 2014, p. 155-179). Gesture enabled games would be required for interactivity and entertainment. There was also the need to fit the restaurant chains with digital computer devices where customers would play computer games and keep themselves busy. This would ensure that customers keep visiting the restaurant. Online coupons would be used in dinner tables thus giving the customers marvellous dining experience.
This would also ensure that tables turned faster.
Cummins, S.C., McKay, L. and MacIntyre, S., 2015. McDonald's restaurants and neighborhood deprivation in Scotland and England. American journal of preventive medicine, 2016 Sep 8; 29(4), pp.308-310.
Dey, K., 2016. The fast food industry in the UK. Analysis of McDonald's with PESTEL, VRIN and Porter's Five Forces. UK. Pp. 13-14.
Dogerlioglu-Demir K, Koçaş C. Seemingly incidental anchoring: the effect of incidental environmental anchors on consumers' willingness to pay. Marketing Letters. 2015 Dec 1; 26(4):607-18.
Geppert, M., Matten, D. and Williams, K. eds., 2016. Challenges for European Management in a Global context: Experiences from Britain and Germany. Springer. UK. pp. 10.
Ghobadian, A. and O'Regan, N., 2015. A case study and interview with Jill McDonald CEO and President of McDonald's Northern Europe Division. Journal of Strategy and Management, 7(1), pp.87-100.
Han, S.H., Nguyen, B. and Lee, T.J., 2015. Consumer-based chain restaurant brand equity, brand reputation, and brand trust. International Journal of Hospitality Management, 50, pp.84-93.
Hua, N., Morosan, C. and DeFranco, A., 2015. The other side of technology adoption: examining the relationships between e-commerce expenses and hotel performance. International Journal of Hospitality Management, 45, pp.109-120.
Lang, T. and Schoen, V., 2016. Food, the UK, and the EU: Brexit or Bremen? UK. pp. 21.
McLean, S., 2002. The basics of interpersonal communication. Allyn & Bacon. Boston. pp. 10.
Ramiah, V., Pham, H.N. and Moosa, I., 2017. The sectoral effects of Brexit on the British economy: early evidence from the reaction of the stock market. Applied Economics, 49(26), pp.2508-2514.
Rolfe, H. and Hudson-Sharp, N., 2016. The impact of free movement on the labor market: case studies of hospitality, food processing, and construction. National Institute for Economic and Social Research. UK. pp. 15.
Šerić, M., Gil-Saura, I. and Ruiz-Molina, M.E., 2014. How can integrated marketing communications and advanced technology influence the creation of customer-based brand equity? Evidence from the hospitality industry. International Journal of Hospitality Management, 39, pp.144-156.
Thompson, J.L., Peace, S., Astell, A., Moynihan, P. and Macdonald, A., 2014. Food environments: From home to the hospital (pp. 155-179). Policy Press: Bristol, UK.