mecdonyrfyfalds assignment

8/10/2019 Mecdonyrfyfalds Assignment

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VisionMcDonald Steel will be universally regarded as the highest-quality hot-rolled steel component provider in the industry. As a company, we

strive to set the standard for ethics, professionalism, competence, and innovation.

MissionMcDonald Steel is dedicated to providing the Shareholders of the corporation a long term financial return, and to retaining the company's

position as a premier global supplier of innovative products and services, always responsive to existing and future markets.

Core ValuesWe commit to these values to guide our decisions and our behaviors:

TeamworkWe promote and support a diverse, yet unified, team. We hire experienced, qualified people who work together to meet our common

goals.

RespectWe honor the rights and belie fs of our fellow associates, our customers, our shareowners, our manufacturers and our community. We t reat

others with the highest degree of dignity, equality and trust.

AccountabilityWe accept our individual and team responsibilities and we meet our commitments. We take responsibility for our performance in all of our

decisions and actions.

IntegrityWe employ the highest ethical standards, demonstrating honesty and fairness in every action that we take.

InnovationWe are creative in delivering value to our fellow associates, customers, and community. We anticipate change and capitalize on the many

opportunities that arise.

DiversityWe value diversity in our stakeholders.

EmployeesThe Welfare and Quality of Life of all employees is extremely important, as are their opportunities for Growth, Security, Empowerment, and

Teamwork. Safe Behaviors and Attitudes are crucial.

StockholdersOur Board of Directors is committed to the long-term prosperity of the company and its stockholders.

CommunityWe are a good neighbor and citizen. We dont pollute. We pay our taxes. We do business locally, and we are philanthropic.

Stakeholder analysis :

Stakeholder are the groups or individuals who have direct or indirect impact upon the organisation. Each stake holder has different interest upon the organisation depending uponhis status in that particular organisation one of the McDonald stakeholders is the employees because any change occur in the organisation it directly effect the employeesbecause they want to be the business success full. Other stakeholders are the government ,suppliers, social societies ,NGOs , man agers , shareholders , distributer and thelocal community. Any occurring change in the McDonald corporation leaves the direct effect upon the stakeholders. Change is necessary for the development of the organisationas it is playing in a competitive environment and business as well treat each stakeholder in different way because the business want to do anything they can do in order t o wintheir arguments. Overall we can say most important stakeholder of the McDonald is its valuable customers any change in the corporation in term of menu in term of product ,price ,place and promotion will directly affect them. Customers are the key elements of the business they bring the money to the company and without them the business will beunsuccessful and the company will lose their reputation and soon will have to close down. Effective communication is also plays a valuable role between the stakeholders. Toimplent the valuable in the organisation effective communication is necessary to understand the proposed changes and to implement it efficiently and effectively. And thereshould be the feedback and feed forward system. To bring a change there should be alternative course of action for a valid proposed change in the organisation and they shoulduse appropriate control mechanism and the established budget system for the organisation and its stakeholders to implement efficient and effective change in the organisation.


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Corporate Objective and GoalsIt is to the mutual well being of the Corporation, the employees and the community that McDonald Steel be dedicated to profitability and

viability. To this end, the following has been set forth as corporate objectives:

ProfitabilityThere must be sufficient profit for the Corporation to exist. Profit remaining after operating costs must be fairly divided among (1) return

on Shareholder investment, (2) Profit sharing distribution to employees, and (3) reserve to re-invest in new and replacement equipment. A

profitable company is also able to attract developmental capital when necessary.

Customer acceptance and satisfactionis the first key to profitability. High-quality products must be provided at a competitive pricewith on-time deliveries.

Employeesare the Corporations most important resource. Safety is paramount. Positive attitudes, shared information and on-the-jobtraining are necessary so that all employees can understand cost-price relationships within the Corporation and how that relates to the

market place.

Productivityimprovements must be developed via individual and group encouragement and must be interpreted as contributing towardjob security and company well being.

Pricingof the products is a matter of fine tuning the cost-price relationship along with the blending of market conditions. Customers musthave faith that pricing is fair.

Marketingefforts must be directed at soliciting new customers and new products to replace obsolete products and increase volume. Thisincludes assisting customers in engineering new products.

A lean efficient organization must be continually maintained and fine-tuned.

Long Range ViabilityConstant attention to the many facets that contribute to profitability is necessary to ensure that the company will survive into the next

century. Short- and long-term planning is essential for corporate viability.

Market shiftsmust be studied, anticipated and appropriate action taken

Employee trainingand cross-training including management functions must be implemented so that the business does not suffer due toattrition.


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State-of-the-art equipmentwhich can be integrated with the older, established mill equipment must be implemented in order toimprove quality and improve productivity.

Facility improvementsare essential. These include changes to facilities which improve productivity and changes which could permit a

different form of raw material purchase, etc.

Marketing Objectives

A marketing strategy must be created in order to determine the means by which a set of clear

objectives may be met. Objectives communicate what marketers want to achieve, guide

marketing actions and are used to measure how well a plan is working. They can be related to

market share, sales, reaching the target audience and creating awareness in the marketplace.

Long-term objectives are broken down into shorter-term measurable targets, which McDonald s

uses as milestones along the way. Results can be analysed regularly to see whether objectives

are being met. This type of feedback allows the company to change plans and allows flexibility.

Once marketing objectives have been established, the next stage is to define how they will be

achieved. The marketing strategy is the statement of how objectives will be delivered. It

explains what marketing actions and resources will be used and how they will work together.

Strategy

McDonalds is a centralized, International Division company composed of franchisees and joint venture

partners. McDonalds utilizes a broad approach and initially grew overseas by relying on transferring new

products, processes, and strategies from the United States to less developed markets1. The idea has

always been to transfer the American tradition of fast food to other counties using the same real estate

principles, cost advantages, and new technologies that were so successful in the U.S. McDonalds has

always exploited the corporate company knowledge and transported and diffused it to foreign markets.

Starting with the concrete supplier chain, all the way down to the store design and implementation,

differentiation is not encouraged nor is it allowed.

With an Ethnocentric mentality, McDonalds has constantly based the companies international operations

on home-grown ideas and concepts. Corporate first places the focus the domestic market, and then

filters the functions to the overseas operations. Information flows from corporate to the franchiseesbased on what is working in the United States markets, with the expectation that it will be implemented in

the foreign markets. When analyzing McDonalds corporate structure (Appendix C), it is evident that the

top down approach is not only used it is enforced. All information starts with corporate and is disbursed

to the foreign markets.


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Company Control and Coordination

In order to control the thousands of franchises in the system, McDonalds corporate utilizes a

combination of methods. Both the Rules Approach and the Cultural Approach are applied by

management in order to ensure that the international outlets maximize their potential without disrupting

the overall corporate plan. The reason for the combination of control approaches stems from the nature

of how the McDonalds system was built. By relying and building around franchising, a fine line has to be

drawn between keeping the franchises motivated and accomplishing the company objectives.

The elements of the Rules approach are very evident when magnifying the requirements of the

franchisees. Management requires continuous lines of reports and paperwork to follow every move of

the franchises. The extent of the requirements can be seen in the following example. The McDonalds

operation-and-training manual is a roughly seven hundred and fifty-page document that weighs about

four pounds. It is known throughout the company as the Bible and contains precise instructions on how

various appliances should be used, how each item on the menu should look, and how employees should

greet the customers. An example of the extent of detail that is contained in the manual are hamburgers

are always to be placed on the grill in six neat rows; french fries have to be exactly 0.28 inches thick. Theregimentation and standardization of McDonalds restaurants determines exactly how every task is done

and imposes rules about pace, quality and technique. The McDonalds Corporation insists that its

operators follow directives on food preparation, purchasing, store design and countless other minute

details. Operators who disobey these rules can lose their franchises and this has occurred in the past.

The control from corporate can be extensive at times and franchises are constantly threatened. We

have found outthat we cannot trust some people, who are nonconformists, declared Ray Kroc, one of

the founders of McDonalds, angered by some of his franchisees. We will make conformists out of them

in a hurryThe organization cannot trust the individual; the individual must trust the

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From the beginning of time, McDonalds management has created and pushed an

operating system of unusual thoroughness and attention to detail. In order to enforce this style of

management, McDonalds has strategically placed local and regional offices throughout the world

(Appendix D).

As mentioned before, the nature of franchising has led to this pattern of control and further discussion on

the topic is warranted to clarify it. The franchising relationship has its built-in tensions. The franchiser

gives up some control by not wholly owning each operation and the franchisee sacrifices a great deal of

independence by obeying the company rules. Everyone is happy when the company is succeeding and

profits are rolling in, but when revenues fall, the arrangement often degenerates into a mismatched battle

for power. The franchiser almost always wins. In the global world of McDonalds, that exact scenario is

currently taking place. The last three years, McDonalds has seen lagging sales in the domestic market

and booming sales in the international markets. As a result, corporate is trying to tighten the reigns on

foreign operations even tighter than they have in the past10

. The key to a successful franchise, according

to many texts on the subject, can be expressed in a single word: uniformity. Franchises must reliably

offer the same product or service at numerous locations. This is the case with McDonalds. They must

continue to provide a high quality core product line at the lowest possible cost available. Customers are

drawn to familiar brands by an instinct to avoid the unknown. A brand offers a feeling of reassurance

when its products are always and everywhere the same. At the same time, a little control must be


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sacrificed to keep motivation and creativity among the franchises blossoming. This concept is why

McDonalds management also utilizes some of the Cultural Approach to control the international markets.

Through the years, McDonalds management has realized that in the fast food industry, more freedom is

needed in order to prosper in foreign countries. There are two major business functions that are dictated

by the countrys local influence and symbolize the Cultural Approach freedom; product development and

marketing. These functions are not only locally developed they are operational away from headquarters

and are represented in McDonalds structure chart accordingly (Appendix C). By allowing the foreign

markets the autonomy to develop and market geographical specific menu items, management is not

compromising or deviating from internalized company norms or standards. Instead, they are allowing for

local adaptation that will not only benefit the franchise, but the corporation as well. Both product

development and marketing will be discussed in detail below.

Short,Medium and long term strategies employed:

Strategy is a planning that is used by an organisationto achieve its goal and objectives.short term strategystarts from a minute to 6 moths,medium account from6 month to a year and long term mean 5 years ormore strategy.In short term Mcdonalds is trying tobring in innovation and make customer satisfy.day today issues are planned to satisfy customers.Newproducts are introduced each month.in medium termthey are trying to maximise its profit and sales.In longrun Mcdonalds is planning to open new branchesacross india and indian Mcdonalds sale whichaccounts only 0.37 % of overall sale of Mcdonald tobe taken to 0.50 percent and more in the comingyears.


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CONCLUSION:Mcdonaldsis considered to be the King of the fast

food.To achieve this greatness Mcdonalds has triedhard for ages to prove itself in the competitiveenvironment of Fast food.The key factors in successof Mcdonalds in my view isinnovation,customisation,good management andabove all best Marketing strategies adopted byMcdonalds.Mcdonalds in India has a very brightfuture because of the customers bank,customised

approach from Mcdonalds towards its customers andabove all the strong brand Image.

mecdonyrfyfalds assignment

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