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McDonalds: 4 principles of managements

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Leonard Alron

on 29 January 2015

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Transcript of McDonalds: 4 principles of managements

McDonald's: Management Functions
Organization
- Organizational structure:
Centralized, international structure
Power allocated to McDonald's headquarters
Ethnocentric management strategy
A transfer and implementation of values, principles and ideas from domestic USA market

Leadership
Controlling
- Feedback Forward Control
Ray Kroc's approach
- "Strict" style of control
-bureaucratic control mixed with normative control
Hierarchical system
efficient allocation of workers
No hours as received as punishment
"McDonalization " a re conceptualization of rationalization, or moving from traditional to rational modes of thought and scientific management"
employees of lower rank have no right to contribute ideas
drawback could be demoralizing
Normative
controlling workers through shared values.
Training employees
giving the employees to ability to modify their performance according to the companies norms
every employee is taught to carry McDonald's mission and values

Planning: From top to bottom
McDonalds Strategic planning
"The strength of the alignment among the Company, its franchisees and suppliers (collectively referred to as the "System") has been key to McDonald's success.
By leveraging our System, we are able to identify, implement and scale ideas that meet customers' changing needs and preferences.
In addition, our business model enables McDonald's to consistently deliver locally-relevant restaurant experiences to customers and be an integral part of the communities we serve."
McDonald's customer-focused Plan to Win ("Plan") provides a common framework that aligns our global business and allows for local adaptation.
We continue to focus on our three global growth priorities of optimizing our menu, modernizing the customer experience, and broadening accessibility to Brand McDonald's within the framework of our Plan.
Our initiatives support these priorities, and are executed with a focus on the Plan's five pillars - People, Products, Place, Price and Promotion -
We believe these priorities align with our customers' evolving needs, and - combined with our competitive advantages of convenience, menu variety, geographic diversification and System alignment - will drive long-term sustainable growth."
Planning: Ethical code & Values
Any Questions?

Jim Skinner CEO (2004-2012) Leadership style
Focus on efficiency and performance
Charismatic and transformational leader
creative and intuitive
" introducing the "plan to win" initiative
kept employees motivated
customer satisfaction is key to success
carrot and stick : employee rewarded with more responsibility
" I always like to say that my goal is to surround myself with people smarter than i am. I am not afraid of it"
emotional intelligence
High self awareness, self regulation. motivation, empathy and social skill
democratic
he created a "9 month leadership program bringing together top performing executives to work on addressing big issues for McDonalds" (funded by Skinner himself)
adding healthier choices to the menu

McDonald's History and Growth
- Created in 1940 by Richard and Maurice McDonald
- 1948 introduction of the "Speedee Service System" (taken from white castle)
- 1954 - 1955 Ray Kroc acquired exclusive rights of McDonalds (I.E. ownership)
Innovative approach
* oversaw its worldwide growth
* Implementing his vision "Working not for McDonalds, but for themselves, together with Mcdonalds"
* Insisting franchisees follow the core McDonald's principles of quality, service, cleanliness and value

Leonard Alron
Susana Comaescu

Planning: From top to bottom
Top & middle managers:
McDonalds brand vision:
"To be the best quick service restaurant experience"
McDonalds Mission Statement:
"to be our customers favorite place and way to eat and drink. Our worldwide operations are aligned around a global strategy called the plan to win, which center on an exceptional customer experience - people, products, place, price and promotion.
Planning: SWOT Analysis
McDonald's History and Growth

* 1951 Introduction of "Hamburger University
* 1984 - Death of ray Kroc shaping the integral and inspirational body of McDonald's today
Currently McDonalds has over 34,000 restaurants allocated in more than 119 countries and supplying 68 million customers aday.


"We place the customer experience at the core of all we do"
"We are committed to our people"
"We believe in McDonald's system"
"We operate our business ethically"
"We give back to our communities"
"We grow our business profitably"
"We strive continually to improve"

Implementation of leadership principles
1. Keep the base happy
2. Attract new customers
3. Execute well to satisfy customers
4. Support your staff publicly
5. Your strengths must be your foundation
6. New products can widen your reach
7. Don't be fooled by false success
8. Have a leadership pipeline

Leadership
Improvements
Planning
more efficiency
give franchisees more freedom
Organizing
Need to figure out a way to remember your roots, what made you special. Even as you grow
Controlling
less bureaucracy
increase in normative system
Leadership
Speed does not equal quality
Like the Disney case, give more opportunities for franchisees to express opinions.
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