Analysis Of Elements of McDonald’s Business
Background Information
Company History
McDonald’s was founded in 1940 as a fast food restaurant by two brothers, Richard and Maurice McDonald, in San Bernardino, California. McDonald’s started their business as a hamburger stand. In 1948 McDonald’s shut down and reopened with a downsized menu of just nine items. In 1955, Ray Kroc, a businessman who sold milkshake mixers received a large order of eight milkshake mixers from the brothers and caught his attention. Mr. Kroc was surprised to see how successful the business was, he persuaded the brothers to give him the franchise rights to their business, which he obtained and started the first McDonald’s franchise in 1955 in Des Plaines, Illinois. Macdonald open their first restaurant in Singapore in 1979 and the world’s highest volume of hamburgers was served that day in October at Liat Towers, and today Singapore has over 120 restaurants island-wide serve 1. 2 million customers each week. and there is approximately 9, 000 employees keep Singapore favourite restaurant running ship-shape. Mcdonald’s Corporation has grown to more than 34, 000 restaurants in over 118 countries.
Company’s Mission & Vision
Mission: To be our customers' favorite place and way to eat and drink. There are about more than 100 branches of outlets in Singapore with over 40 operating 24 Hours. There are about 24 types of food served in McDonalds and their beverage has 2 types of beverage served. The food McDonald’s serve are categorised in Beef, Fish, Chicken or Salad you can choose. The categorised food served also includes children happy meals. The beverage McDonald’s served are either the standard given in the meals or you can choose their McCafe. Their McCafe serves 8 different types of coffee, both hot and cold.
Vision: "To be the best quick service restaurant experience" By being the best quick service restaurant, McDonald’s offer the drive-in system. Where drivers can simply stop by at the drive-in and order their take-away. Even in stores, McDonald’s try their best to provide their service as fast as possible. Usually after a customer has purchased their food, they will usually will have to wait 3-6 mins for the food to be ready to be served to them.
Set Up Structure
McDonald’s is a large business with more than 36, 000 restaurants in over 100 countries. McDonald’s is the world’s largest chain in the fast food industry, serving around 69 million customers per day. McDonald’s are operated by a franchisee, an affiliate, or the corporation itself. McDonald’s is also a public limited company. As at 17 August 2018 Mcdonald’s stock price is 161. 15USD per stock as a public listed company. McDonald is listed in NYSE stock exchange.
The corporation‘s revenue comes from the rent, royalties and fees paid by the franchisees as well as their company-operated restaurants, there is approximately 15% of Mcdonald’s restaurant operated by McDonald’s Corporation directly.
Industry
Mcdonald’s is in the Food & Beverages Industry and McDonald’s production department and service crew are responsible for maintaining the high quality of food and services, food costing, managing restaurants and cafe. McDonald’s are the leading Global Food selling retailer in Singapore.
Business Sector
McDonald’s is in both the secondary and tertiary industry because some of their products are produced by McDonalds itself and some are supplied by other businesses. McDonald’s combined the supplier’s goods and their manufactured goods together to make their products.
Secondary Sector
McDonald’s get their ingredients from the suppliers located in Oklahoma, United States. Suppliers supply ingredients such as:
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Tertiary Sector
McDonald’s hire employees from different age group to work in their restaurant to serve customer as their cashiers, cook and to help to cook the meat and putting the burger together in order to serve to the customers. McDonald’s also send their staff to customer service courses.
Target Market
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McDonald’s target children with their happy meals which comes with a toy for them. Children loves fried food and toys so McDonald’s provide it as a set for them. McDonald’s also have different themes of toys to attract children. The happy meals also has different alternatives of both sides and mains. McDonald’s has prepared 2 different sets of happy meals, the first set of happy meal is the standard McDonald’s happy meal which includes 4 pieces of nuggets, 1 carton of milk, buttered corn and a toy. Alternatively, if the children does not like nuggets they can choose the other set of meal which has cheese burger, french fries.
Youth and Adults prefer eating in a fast food restaurants as it is fast and time-saving. Most are working or studying, they do not have time to sit down in a normal restaurant. Adults also have limited lunch break time during working hours so McDonald’s target to serve them with a fast service. It is also more convenient for youth or adults that are either studying or working to grab a quick bite before heading out to work or school.
McDonald’s target elderly with their healthier choice burgers and meals. Elderly can enjoy burgers while worrying less about their high cholesterol and other health related issues. McDonald’s also has a salad meal for a healthier choice and those elderly who does not want to have a heavy meal they can choose the salad meal alternatively.
Business Objectives
McDonald's business objective is to serve high quality food and superior service to consumers in a clean and welcoming environment at a great value. McDonald’s also aims to provide a friendly and fun workplace for their staff. In addition, also being a socially capable organization that gives great come back to their investors.
Ethics, CSR, Business Practices
All McDonald’s employees have to comply with the Foreign Corruption Practices Act (FCPA) and Prevention of Corruption Ace (PCA). The FCPA and PCA makes bribing a government official or a person with power illegal.
Example: McDonald’s would never bribe a government official to get out of a legal situation.
Records and Communication
McDonald’s provides honest and accurate information and to make responsible business decisions based on reliable records. Their financial books and records must be accurately reflected on real transactions and events. Example: McDonald’s employees would never alter receipts on expense reports.
Corporate Social Responsibility Program (CSR)
McDonald’s started their Corporate Social Responsibility Program for the two associations:
- Movement for the Intellectually Disabled of Singapore (MINDS)
- Spastic Children’s Association of Singapore (SCAS)McDonald’s Corporate Social Responsibility is known as ‘McDonald’s Cares’.
The McDonald’s Cares is a long-term programme that has 200 employees volunteering to bring fun and happiness to Movement for the Intellectually Disabled of Singapore (MINDS) schools and Spastic Children’s Association of Singapore (SCAS) through a series of visits and activities in October. This programme have around 3000 volunteers that are McDonald’s employees.
With the ‘McDonald’s Cares’ programme, they hope to encourage even more of their employees to be actively involved in volunteering, and to make a meaningful impact on children with special needs by teaching them valuable life skills through play. ”
Examples To Support:
Valuable Life Skills
To kick off the launch, over 500 children from MINDS schools and SCAS under the Children’s Charities Association (CCA) learnt valuable life skills through fun games designed by McDonald’s employees. McDonald’s setup booths that promote cognitive learning, such as counting money to buy food and memory game – and capturing of happy moments with Ronald McDonald in photos.
McHappy Wall
The other example of Mcdonald Care is the Mchappy Wall. This activity allows the children to engage with the employees. The Mchappy Wall allows children to paint on the wall happily with the help of the McDonald’s employees.
Business Practices
Employee experience McDonald Singapore has been practicing a vision “Every Crew that is working can be a manager, ” this helps to empower crews that wished to make McDonald’s as their long term career and they provide a lot of job benefits for the employees like they provide vouchers for employees who have been working very hard and they will be awarded as the best crew of the month. As the only age requirement to be a manager is to be 16 years old and above, employees who are diligent and hardworking can be recommended to be a crew leader and continuously to a shift manager. Example: Someone who just finished their “N” or “O” Levels can become a manager if they have experience working in McDonald’s and is hardworking.
Sustainable Supply Chain (3E’S: Ethics, Environment and Economics)
McDonald's store network is a complex snare of immediate and roundabout providers. They deal with this unpredictable framework by working with coordinated providers who share their qualities and vision for economical supply. McDonald's hold them to clear guidelines for quality, well-being, effectiveness and maintainability. McDonald's likewise joined forces with them to distinguish, comprehend and address all inclusive maintainability challenges and accomplish consistent change.
Example: To manage the creation and oversight of issues identified with sustainability, an extra worldwide administration structure was made in 2007 called the Sustainable Supply steering Committee (SSSC). The SSSC is in charge of directing McDonald's toward our vision for practical supply by recognizing worldwide needs. In addition, each of our global product leaders (which we have in place for major purchases like beef and potatoes) takes the lead to include product-specific sustainability initiatives in their strategies.
Recommendations
McDonald’s should add more healthier options into their menu, the trend of eating healthily is becoming bigger and bigger each year so McDonald’s should adapt to the trend. McDonald’s should make more local delicacies into their burgers and make them permanent on the menu. So when tourist comes to Singapore they would go to McDonald’s just to try the local delicacies burger.
