Mcdonald's Polishing the Golden Arches Case Study
- Length: 10 pages
- Subject: Business
- Type: Case Study
- Paper: #86350483
Excerpt from Case Study :
Effective missions are inspiring, long-term in nature and easily understood and communicated. While a mission statement does need to be very based in nature so that the management interpretation can come into play it has to provide some guidance about how the vision will be reached through the use of specific plans.
The mission statement of any company speaks directly to the products and services that the company will provide to its consumers. A mission statement does not review the vision of the company but when held against it the mission statement must be clearly in agreement with the vision statement. A Mission statement may define the purpose or broader goal for being in existence or in the business. It serves as an ongoing guide without time frame.
The mission statement should be a clear and succinct representation of the enterprise's purpose for existence. It should incorporate socially meaningful and measurable criteria addressing concepts such as the moral/ethical position of the enterprise, public image, the target market, products/services, the geographic domain and expectations of growth and profitability (Mission (http://www.businessplans.org/Mission.html)."
The intent of the mission statement should be the driving force behind any company strategic decision making process.
The mission statement should say it all in a nutshell while incorporating the desired company values into its general area of meaning. The following are examples of some mission statements by well-known companies that define the meaning of mission statement.
Mary Kay Cosmetics
To give unlimited opportunity to women."
To give ordinary folk the chance to buy the same thing as rich people."
To make people happy."
Although it is commonly perceived that these are slogans rather than mission statements, the reality is that the simple nature of these statements make them ideal mission statements. This is evidenced by several factors, each of these statements provides an implicit goal for these companies that goes beyond profits, growth or any other nebulas factor, but rather focuses at a core level what these companies define themselves by. These mission statements are long-term in nature and targets what employees themselves feel captures the essence of their business.
The Disney mission statement is a classic example of what a mission statement can set the stage for within a company. The mission statement incorporates the vision of the company and adds the method by which it plans to fulfill that vision.
Disney's mission statement is simply "to make people happy!." This vision statement, although very short goes into the heart of what the company prides itself on. As a roadmap to the future of the organization, it simply means that anything Disney does will move it closer towards giving people happiness and joy. Also at its core, this mission statement explains precisely what differentiates Disney from all other companies in the world. it's only focus in all of its acquisitions, adventure parks, television shows, etc. is to make people happy. In effect this simply statement is the justification for why Disney as an organization continues to exist.
The employer dedication of the mission statement provides the world with the understanding that the company plans to value its workforce and treat its employees with respect. This is an important factor to consider when making a mission statement in light of the many critical groups that are currently working to attack large corporations like Wal-Mart.
Overall, the mission statement of Disney is an excellent example of how mission statements should be constructed. While it does not have a substantial amount of detail, it cuts to the very core of what Disney plans to do with every decision. It also reduces the value addition of the company into one easy statement that anyone can understand and appreciate. More than anything else, it provides a triumphant summary of an entire organization's philosophy in five words.
The mission statement is a statement that provides a hint of how the vision statement will be attained. It allows the company to place actual values and priorities on the methods the company plans to use to bring the vision statement and image to completion.
It is flexible in the sense that it can be changed however, it is better to provide a mission statement that can change with climate changes through managerial interpretation and decisions rather than changing the actual mission statement itself. Disney's mission statement is an example of an overarching principle that has the cumulative effect of defining its overall value addition to society and its customers.
It discusses not only the way it is going to go about providing the vision it has set up but it also addresses the way it plans to treat its employees, which in the current political climate it is a positive step to provide this information to the public.
What I Learned
What I learned is that the mission statement is not for the general public as much as a roadmap for the individuals who are working for the company. It provides the simple but powerful statement of intent that shows this company or organization is completely different but also valuable. In a sense, it captures what the company does, at a core philosophical level rather than its pure deliverables. This is a very important tool for large corporations to help their employees understand at a principle level what they are doing and how they can improve their customer experience. Both are key to understanding and defining the scope of their project.
Many elements go into the development of products and services. One of the first steps to good business planning is the analyzing of many factors that will have an impact on that product or service. Whether the impact will be direct or indirect that factor needs to be addressed so that proactive steps can be taken to incorporate it into the final plan. A key factor in the planning of business is the study of the Macro environment. The macro environment is a catch all phrase for the external factors that affect the company with regards to planning and performance. The factors that are involved in macro environments are elements that are beyond the company's control but must be examined, understood and analyzed so that their impact on the company does not come as a surprise or create negative reactions. Some of the external factors that make up a typical macro environment include socio-economic, legal and technological changes. These elements are outside of the control of the company but do have an impact on the industry and the market. In the instance of the Solar Feeder there are several macro environmental factors that need to be assessed.
The macro environment of the fast food restaurant industry pertain to the national economy, areas of service, employment rates and government policies including issues that the FDA raises when it comes to the food industry.
It is important to understand that the base value of the macro environment in the case of McDonald's is directly tied to many financial issues on a worldwide basis. If the economy is doing well then families are able to eat out more often, though they still enjoy finding good food at quality prices. If the economy is doing poorly eating out is a less often event however, when it does happen the economy comes into play with the type of place that the family will eat in which leads back to the vision and mission statement of McDonald's.
Macroenvironmental factors greatly impact the success of McDonald's as a corporation. One of the most important elements is public perception of the quality and value of McDonald's products. In the 1970s to 1990s, McDonald's was a national icon and emblem of what good quality food and American innovation could produce as a result it was one of the most successful companies in the country. However, in the late 1990s, and early 2000s, a backlash to the fast industry occurred on a national level. McDonald's was perceived by the public to be endemic of a trend towards unhealthy food and obesity. As a result, its sales decreased and overall volume of users also decreased. This external factor could not be controlled by McDonald's, it is purely individuals making the decision that they did not want to eat fast food in general and the entire industry suffered.
Another important macroenvironmental factor is the overall