McDonald Company - Research Paper Example

Research Topic One: Research paper on McDonald Company Research Topic Two: Services Sector Role in UAE Economy Title Name Professor Course Date Table of Contents RESEARCH PAPER ON MCDONALD COMPANY 3 Introduction 3 Customer Service Department 5 Employees and franchisees training 5 Market research 6 New Product deveolpment 6 Redesigning of restaurant layout 7 Competetion from other brands 7 Health issues 8 Labor relations 8 Food safety 8 Franchising 9 Conclusion 9 SERVICES SECTOR ROLE IN UAE ECONOMY 10 Introduction 10 Conclusion 13 References 14 RESEARCH PAPER ON MCDONALD COMPANY Introduction McDonald’s is a chain of fast food retaurants with its origin in California,USA. Since its establishment in 1955,it has experinced tramendous growth to include in excess of 32000 restaurants in 118 countries around the world,of these nearly 14000 are in the United States as of early 2009. the organization has more that 1.6 employees and their customer base is over 58 million daily around the world(Harris, 2009, p. 4). McDonald’s services include ,free wifi hotspots within McDonald’s restaurants,gift cards the –Arch Card,a prepaid card customers can use to pay at McDonalds,playplaces and parties . McDonalds popular products include burhers ,chicken, fish ,salads, snacks, beverages like coffee and milk ,desserts and shakes.McDonald’s mission is to “be there customers’ favourite place and way to eat and drink,with the commitment to contiously improve on their oprerations and enhacing their customers experience”,(www.aboutmcdonalds .com).McDonalds value are to place commitment to their paeople ,placing customer experience the core of their existence,operating their business ethically,giving back to the community,striving to continually improve and growing the profit of the business . Mcdonalds Structural Organisation McDonalds provide over the counter services and drivethrough services , with either indoor or outdoor seating for offering their catering services. The range of customers was initially the urban working class who had no time between lunch breaks ,however , as time went by the consumer range has expanded to target children and families in genaral. The fast food company is out there to feed the whole society. To stay on top of the food industry and remain relevant ,the company has set strategic gaols to have the extra edge amid stiff competetion , declining economy and a market where the consumers appatite is constantly changing. The company has invested heavily in these goals for the last 5 years. Advertising McDonalds has heavily conducted extensive advertising campaigns. The coomon platforms for such has been the television,radio and newspapers. The company also occupy billboards aand signage. They also make coolers with their logo on it ,these are availed to local events . mcDonalds also sponors sporting activies as an avenue to increse its presence. Playplaces for children is alsoon another strategic move,the children that come to play do drag their parents along who end up spending money at the McDonlds. The giving back to society through charities McDonald House Charities,is another form of publicity advancing the company’s presence. Customer Service Department McDonalds reprots that only 5% of customer complaint , complain to the customer complaint depertment. Anohter 45% of complain raise their concerns are raised and solved by an employee present,while the rest 50% don’t raise their concerns. McDonald’s are encouraging employees and the customer Services Department to be accessible to the customers. This will enhance customer company relations from the feedback and also tackle any future concerns. Employees and franchisees training Hamburger University,is known as the hub for the training of McDonalds staff. This corporate university has continously produced competent personnel in restaurant management. Here managers ,mid-managers and operators are groomed and equiped to manage their franchises.this investment has seen the company soar high in the catering industry. The training is also important for the company to maintain consistent product quality . For investors willing to open a franchise ,they are required to be taught on management so as to handle the franchise well . the proper handling of franchises together with qulified wmployees help boost the branding of the company. Market research To continually build a strong brand ,McDonalds has endevoured to listen to its customers. Organisations, products or services are identified by their brand. This brand image influences how consumers perceive the organisation. Marketing communication methods of advertising and promotions are vital in creating colours,designs and unique images which give a brand its distinct face. At the McDonalds,the Golden Arches is a familiar logo. In marketing McDonalds faces competetion from other similar businesses . The success of McDonalds faces challennges from the economical,legal,technological and socila factors in addition to the retail environment. Marketing seeks to identify customers needs and the possible requierements to solution that is superior to their competitors. McDonalds adopted the 4Ps method, a marketing mix that intergrates marketing and the four marketing tools ,product,price,promotion and the place. By organising detailed research finding on their consumers,the marketing department can determine the correct marketing mix. New Product deveolpment One of the important thing to remember when dealing with customers,is to have a menu which offers them a myriad of choices. In such case,the McDonalds has emphasized on devloping a menu that customers want. Marketing research has played a key role in cahieving this. However , customers’ desires are dynamic, whatever was attractive today may not have the same glomour the next day . marketing is continously monitoring customers proefences. In order to maintain the competetive edge,McDonalds keeps introducing new products and phasin g out the old ones.However ,care is taken so that the entrant doe not adversely affect the sale of another choice,which in turn will be a trade off. McWrap is such a product that is aimed at fighting negative health publicity and also remaining relevant to all customers. Redesigning of restaurant layout McDonalds has a goal of redesigning the restaurants outlook to be more like coffee shops ,this move is to accommodate for more people to gather around a table like the traditional home setting. The redesigning will include ,wooden tables,leather seats and muting the colours. The restaurant has moved to warm up its interior by incresing more wood and bricks and modern hanging lights. Most restaurants offer free Wi-Fi and entatain with flat screens . there is notable increse in the drive-thrus . In China the retsaurant is planning to meeting social needs and also privacy. This is to be met by expanding the sitting arrangement and organizing the sitting arrangement to accomadete more people and also the privacy aspect is that people enjoy eating with people they know and the current layout is limited. Such a multinational organisation though making profits has its challenges. The fast food industry as a whole, has its fair share of turmoil health issues ,competition from within ,poor products ,workers unrest and even at times political interference and cultural practices . these and others are some of the challenges facing the fast food industry. The following are some of the leading challenges McDonalds is encountering Competetion from other brands It is common knowledghe that McDonlads is not the only fast food restaurant around, and as such their exists competetion from other companies. In japan ,McDonalds is facing competetion from the native Mos Burger,in Greece local start up Goody’s also demand a share in the fast food industry in China by Pizza Hut, and Kentucky Fried Chicken(KFC). In the birthplace America,Chipotle Mexican Grill,Kentucky Fried Chicken ,Burger King,Panera Bread,Wendy’s,Red lobster are worth noticing. The market population display shifting appetite with the introduction of new brands . The operating expenses are high in such a market with little return.Such competetion cannot go unnoticed since it directly impact on the sales . in overcoming this challenge McDonalds has expanded in the semiglobal segment ,in this market consumers display a mixture of both global and local prefernce; in addition to the local,in this market consumers stick to their local prefernce. mcDonald is constantly coming with new tailor made products to meet these challenge McWrap is one such creative strategy,in Asia inclusion of local food in the menu has taken shape. Health issues McDonalds has contributed to the society by employing young people,setting up of charities like the Ronald McDonald House ,it also supports local community and society .these efforts not withstanding McDonald has negatively impacted the society as majority of the food sold in the restaurant chain promotes ungealthy lifestyle,cases of obesity have been reported in connection to consuption of the food. Super Size Me is a documentary done by Morgan Spurlock,Morgan structured his experiment by feedin g on nothing but McD onalds meals for 30 days as doctors monitered his detoriating health and becoming obesse. Schlosser (2001) that ,“Young people who are obesse face not only long term ,but also immediate threats to their heatlhseverely obesse American children ,aged six to ten ,are now dying form heart attacks caused by their weight. Labor relations Besides obessity issues,McDonalds has friction with its work force. Workers in the assembly line and factory type work receive minimum wage,Schlosser in his special report estimates that manufacturing jobs in the U.S could increase by 3.5 million in the economy,at an when such jobs are outsourced to overseas.this move creates a competetion between the U.S by oversees low cost competitors. Workers are restricted from joining workers unions,others are subjected to unethical methods to retrieve information form them regarding participation in such unoins.In 1973,amid a bitter organizing drive in San Fransiscop, a group of young McDonalds employees claimed that managers had force dthem to take lie dector tests,interrogated them about union activities and threateneed dimisal if they refused to answer ,”(Shlosser,2001,p.76). Food safety McDonalds’ beverage has faced challenges associated with spoilt milk,milk is the major ingredint to amost of the products from milk shakes to creams as such when milk goes sour temporary shortage is created . in China the safety of chicken is at stake,to sderve a large population with clean white meat that is not infected by the recurrent bird flu is a major hurdle for the McDonlds.the European in particular the UK,cases of unscruplous retailers and ranches selling infected meat have been reported putting a concern on the meat used in making the burgers,meat suspected to be contaminated by Mad Cow Disease ,also the outbreak and infetsation of vegetables by the bacteria Escherisia Coli and Salmonella raises cioncern for the ingredients useed for salads.this has impact on the consumer confidence and decrease in purchasing of their products. Franchising The owners of McDonlads only have a 15% stake,the rest 85% is franchised . as such ,maintaining the quality of products and servives becomes a great challenge. The performance each outlet contribute to the profit of the company in general and also affect the price per share on the Wall Street. On the other hand ,franchise investors are worried of the return on their capital this creates tension and unsatsfied store operators . operaters are up in arms for the high cost of operating the retaurtants – rent,cost for remodelling and fees for training . Conclusion Fast fasgt play an integral role for urbarn workers on the go, the food save stime and keeps other sectors of the economy from stalling,charities and organisation created by McDonalds have improved the social well being of such beneficiaries .yet McDonalds can improve by improving workers through put and well being ,increase the minimum wage to manufacturing jobs and increase the use of local labour to boost the economy. Healthwise ,the organisation ought to be making healthy nutritious food and use of vegetable oil in the preparation of the food,labelling and ingredeints shuold be labelled clearly. The PR shuold respond promptlty to complains and focus majorly on the people rather the product. SERVICES SECTOR ROLE IN UAE ECONOMY Introduction The United Arab Emirates (UAE) has established itself as a strategic trade hub in the Middle East. It is known for the friendly environment coupled with a rapid growing economy that has expanded exponentially and diversified over the last decade. The UAE is the 5th largest reserve deposit of proven natural gas and 10% of the world’s oil reserves. Oil production contributes largely to the economy to generate income and spending. To cut off the reliance of over-dependency on oil, the government policy is to diversify to achieve sustainable growth. The government has focused on encouraging non-oil sectors and private sectors to maintain and grow their position in the economy. The UAE was founded in the 1971, this marked the era of the diversification policy-with revenue from gas and oil exports invested into energy related and hydrocarbon industries. The UAE has since then moved forward with growth in related industries of aluminum and petrochemical, this decreased the sole dependency on gas and oil exports. The UAE diversification policy has seen it expand into other major economical sectors that have improved the Gross Domestic Product (GDP) also to manage the national debt. The reclaiming of the Red Sea has seen iconic structures erected and offer employment opportunity to the locals. With the trend in construction, which contributes 13% of the GDP, tourism is booming as travelers make the UAE a destination for holiday trips .the industry and manufacturing sector equally contribute a fair share to the economy, these industries hire professionals, and quality services are employed to thrive in these harsh environment. The UAE, is strategically positioned at the crossroad between three continents Africa, Europe and Asia as such, the amount of financial interaction and exchange of goods is on the high. The major economic sectors pushing the growth of the UAE are as follows; oil and gas 3%, tourism 18%, industry and manufacturing 20%, financial services 10%, construction 13%, other professional and government services 14%, retail 22% . The services sector- business services, community, communication, construction and real estate, entertainment, finance and insurance, hospitality including hotels, personal transit, transport, and social services employed 58% of labor force in the late 1990s, reflecting its dominance of the UAE economy. The value added by the service sector in 1998, in terms of GDP, was ranked second, after the oil sector. More than a decade later, services still make up the second largest economic sector in the UAE, eatimated at 47.6 % in 2009. Dubai has one of the largest services sector in UAE. The sector has led to the economic growth at a rate of 21% annually since 2000 ,which is about USD 27.7 billion or 74% of Dubai’s GDP in the year 2005, reducing to 43.5% by 2011. The trade sector likewise, has experienced significant increase in the GDP share while the manufacturing and gas oil sectors combined have recorded a decrease and grown on an average of 12% annually since 2000. Growth in the business –services sector s is a reflection of other businesses in the UAE. Dubai Chamber in 2006 conducted a survey and revealed the main activities behind the business-services growth; these were marketing services-19 percent, renting and leasing-17 percent, and technical- 16 percent. The rest of the percentage was shared among research, labour, personnel services, and recruitment. For a 5-year period, 2000-2006, the annual growth of this sector is comparable to other subsectors such as the hotel and real estate with an average of 18 percent and a contribution of 1 percent to the UAE GDP. As a leading trading hub in the Middle East region, Dubai offers a rich market to access for potential oversees companies. The country has a large market, a large population of about 5 million for regional import, it is a gateway to excess of $300 billion per annum coupled with an annual domestic import worth $220.3billion. Dubai‘s import have seen an increment since 1989 and the regional linearization has boosted this demand. The location of the UAE is strategically located in the world richest places. This market is diverse, demands for wide range of imports and these create opportunities for suppliers of products. This market is also accessible by notable airlines and shipping lines and such is a market rich for any wise investor. The UAE, has one of the greatest and advanced infrastructure and an already established economy and services, these offer the highest international standards for investors. For investors renting in the UAE enjoy the free enterprise system, top-notch conference and exhibition venues, quality offices, and accommodation. The power is reliable and other social amenities, and a cosmopolitan lifestyle. The policy in the UAE allows a foreigner to own and lease land, also investors are offered a 15-year guarantee exempted taxation. Foreign ownership is 100% such area are the Airport Free Zone and Jebel-Ali Free Zone, the investors are not charged any custom duty and their investment is flexible. For such a country to be on a growth streak, then great preparation and to handle development has to be in place. Technical services have played a pivotal role in the establishment and growth of the UAE, introducing state of art telecommunication services and other social amenities in this country has taken brilliant minds and advisors to make this country the preferred hub of trade in the Middle East. Growth and consistency of the economy is dependent on skilled personnel who offer great technical services. The last 48% is dedicated is dedicated to development, labor, research and recruitment of the personnel in the UAE. For such a spurring economy, the country has invested in improving medical, educational services and social amenities-these are major determinant for attracting foreign investors and tourists. Conclusion The United Arab Emirates (UAE) has shown consistent growth in the GDP since its inception about four decades ago. The huge gas and oil reservoir revenues have enabled this country to expand at an exponential rate, the diversification policy also catapulted the country into other significant economic activities. Currently, the UAE is a hub for trade and tourism in the Middle East a country of great diverse economic activities from manufacturing to service industries. With the continuous improvement in services and policies favorable to both social and economic development, then the UAE is set to see a developed population coupled with industrialization, modernization, and urbanization. Lastly, the UAE has set a rare yet unique example of a country that has successfully used her natural resource to make the country better for its citizens and investors. References Schlosser, E. (2001). Fast Food Nation: The dark side of the all-American meal. Houghton Mifflin Company: New York. Harris, P. (2009). None of US is as Good as All of Us: How McDonalds prosper by embracing inclusion and diversity. John Wiley &Sons, Inc: Hoboken, New Jersey. Services Sector Played Major Role in Economy Development by Al Mansouri. Retried from: http://www.uaeinteract.com/docs/Al_Mansouri_Services_sector_played_major_role_in_economic_development/46396.htm Read More