Current value chain
Mc Donald’s establishment has a strong financial base which has helped the organization strive even under stiff competition. Although the revenue has been declining in the recent past due to poor management the organizations financial is still considerably high. The organization has been able to invest in technology advancement giving it a competitive edge over its competitors. Due to technological advancement, the organization has invested in mobile marketing through its increased presence in social media.
The organization marketing initiatives have been highly promoted by technological advancement, through this the organization has been able to develop a mobile application which has been used in brand promotion. The organization has also engaged in mobile payment system which has facilitated its billing process. Through the advancement, the organization has been able to invest in advanced equipment which has increased production capacity. Due to its strong financial base, the organization has been able to finance several franchisees within the US. In the recent past, the organization has enjoyed massive growth and expansion which has led to the establishment of many international restaurants under the brand.
The organization has also acquired several local chains within the U.S in the recent past as a marketing strategy; this has enabled the firm to increase its market base. The organization has introduced a new product portfolio for serving the current market, through the introduction of fresh salads in their menu the organization seeks to achieve market diversification. Through these products, the organization serves more market which makes the organization have a competitive edge over its competition. The new product offers to enhance brand differentiation within the market thus enabling the organization to reach a large target market.
Justification
Human resource is a valuable asset for every organization. Therefore any organization which seeks to achieve its strategic objectives must effectively utilize this valuable resource. Mc Donald establishment, however, has failed to use this valuable resource effectively. The organization employee rudeness during service delivery doesn’t only affect meal experience for the customer but also affects the brand image. Incompetency in the part of the management has led to the organization to suffer a decline in its returns within the recent past. The organization, therefore, has to ensure that its human resource is effectively to reach the set goals. The firm can achieve this through proper recruitment practices, under this the organization will ensure the placing of the right people to the right job. The organization, therefore, will have a competent manager who will lead the firm towards the realization of their set strategic goals.
The organization must also work towards achieving service recovery and improve service performance. Service delivery process leads to either customer satisfaction or dissatisfaction which affects the future organization’s business. The service encounter experience depends on the service personnel offering the service. Poor service delivery leads to service failure and therefore customer dissatisfaction. The employees should be trained on customer relation management mechanism to ensure that they offer quality services to their customers. Through this, the organization will boost the service encounter and improve the sales volume.
Training of the service staff on quality service standards will enable the organization to improve customer satisfaction and boost customer loyalty. Training will also boost employee’s efficiency in service delivery, through this the time taken when waiting for an order will be reduced which boosts the meal experience. The equipment used such as microwaves are highly advanced and improved productivity. However, this doesn’t reflect on operations of the organization. The employees, therefore, should be trained on the use of this equipment to ensure that the equipment meets its operational capacity.
Finding facts on Firms management.
Organization management is concerned with planning, organizing, controlling, leading and staffing to enhance the achievement of organizational goals. The management ought to ensure proper planning organizing and controlling of the organizational resources in line with the strategic goals. Mc Donald’s establishments seem to suffer from poor management.
Justification and recommendation
The organization suffers from poor control, especially on financial resources. Due to this, the organization has recorded declining rate of return on the investment. The revenues of the organization have gradually reduced over time; the organization, therefore, must identify the causes of decline on the revenue and ensure that the issue is rectified to promote financial income of the organization. The firm has an incompetent leader; this is because the organization manager lacks the proper skills to carry out his tasks. Due to this, the management fails to plan and organize their human resource properly. The staff recruited, therefore, don’t fit their task, this can be proven since the employees are noted to be rude which is not professional misconduct during service delivery.
Although the organization has invested in advanced equipment, there has been no improvement in process efficiency. The time is taken during order processing remains a concern to many customers, this can be attributed to poor training of the employee on the use of the equipment. Training of the employees is a management function; this, therefore, indicates that the organization management is incompetent to undertake the required functions. The job cuts undertaken by the organization leads to job insecurity on the part of the employee. Due to this, the employee’s performance morale is reduced which leads to poor performance. The organization has to ensure that proper human resource management practices are undertaken which promotes employees job satisfaction and motivates employees. Through this, the employees’ performance will be improved. The organization should also ensure that there is change on the organization leadership.
Through effective leadership, the organization will be in place to undertake ethical business practices. The firm will, therefore, adhere to the law and indicate the calories content on their products, through this the organization will avoid unnecessary loss through compensation of unsatisfied customers. Adherence to the law will facilitate the brand repositioning and change the customer’s brand perception.
Marketing
The organization has undertaken various marketing initiatives to enable it to survive the stiff competition within the industry. However, the organization seems to have failed to undertake market development initiatives to promote the newly introduced menu items. The firm, in this case, has failed to ensure that the promotional tools are effective.
Justification and recommendation
The organization has introduced new offering to the market such as; fresh salads and chicken Nuggets among other new products. These products are new offers in the fast food market and, therefore, if well managed will give the organization a competitive advantage. These new offerings need to be made known to the target customers and thus the organization ought to undertake educational promotion initiatives. Through this, the target market will be informed about these new products and therefore will tend to purchase more of the new menu items. The organization marketing approaches should be strategically designed to develop a market for these new products. Another marketing approach that the organization can undertake is proper utilization of the marketing tools. A menu is a marketing tool for any establishment; these menus, therefore, ought to be well designed to promote the organization and enhance more sales. However, the firm’s menu has been noted to be confusing to the client visiting the establishment. The organization ought to ensure that their promotional tools serve the intended purpose instead of confusing the client. Failure to adequately address this issue will make the organization not only lose on their current guest but also their potential customers. Satisfied customers are a walking advertisement since they spread a positive word of mouth to their friends and associates. Confused customers, however, will spread a negative word of mouth and thus leading to the loss of these potential customers. Through simplification of the menu, the current guest will be more informed of what is in the menu and therefore will tend to purchase even more. The organization must ensure that its products are produced based on the laid down government policies not only to avoid penalties but as a marketing approach.
Finance and accounting
Every business organizations exist to make profits, maximization of these profits, therefore, should be the main goal of the organization’s finance manager. The firm’s financial performance, however, seems to fall sort of these expectations. Over the recent past, the organization revenue base has gradually declined despite their large market share. The firms are currently suffering from poor financial planning.
Justification and recommendation
Effective control of the firm’s financial resources is essential to ensure that profit maximization goal is realized. The organization has undertaken the mobile payment platform as a means of payment. Through this, the organization will enjoy strict control of the finances by ensuring the is reduced number of the personnel handling the cash. The program, however, is at the testing phase the finance department, therefore, has to ensure that the project receives the required financial support to operate effectively.
The organization must seek to improve the sales volume to extend the profit margins. The finance department must invest heavily in service delivery development which will later lead to improved sales volume. The department seems to have failed to invest in human resource development of the organization properly. Due to this, the organization is losing on revenues; this can be attributed to high customer dissatisfaction registered and thus losing on repeat businesses. The department has to finance employees training programs to ensure that the employees are skillfully equipped for their current job.
Another task necessary for the department is to ensure that the marketing department has the necessary financial resource to enable them to undertake market development initiatives. The newly developed market will automatically lead to improved sales volume for the organization. The finance department, therefore, needs to undertake marketing initiatives budgeting. Under this, the department will ensure that the marketing department is allocated enough resources to undertake promotion effectively. The newly developed app requires constant updating and therefore the finance department ought to ensure that the operating capital for the marketing department is readily available when needed.
Management of information system
Information about an organization is a valuable asset which has to manage well and protected from unauthorized access. Information about the core competencies of the organization gives the organization a competitive edge over its competitors. Such information, therefore, must be highly protected if the organization has to remain competitively relevant in the marketplace. However, the information about the ingredients used in the firm’s products is readily available which makes it easy for competitors to imitate.
Justification
The firm currently has introduced a new menu in the fast food industry; these products recipes should remain the property of the organization for it to retain its competitive advantage. The number of people who have access to the organization’s information must be controlled; this will help control and protect the information. Highly sensitive information about the organization operations must remain with the top organization management to reduce instances of it getting into the wrong hands. The information access has to be controlled through monitoring who has got access to the information. Under this, the organizations should create a platform through which employees who are accessing the information, will be required to provide logins details. Through this, the organization management can be in a place to monitor the people who access the information in case of information bleach. Technological advancement offers a threat of information hacking over the internet. The organization thus must ensure that their data is properly protected through the use of strong antiviruses. A dashboard platform can also be used to monitor the activities within the social media. Through this, the organization can be in a place to shut down their social media accounts in case of an attack and thus control the impacts. Employees should also be trained of the importance of loyalty to the organization to avoid instances where an employee sells the information to the competition. Through effective management of the firm’s information system, the organization will be able to lock out competitors from accessing information about their strength in the business. The organization can also engage in regular information access authentication to avert any planned attacks on the organization’s information.