Strategic Analysis Mcdonalds Coporation

McDonald's

Choose (McDonalds) mission and vision statement and understand the strategic goals along with the culture of the company

The mission and vision statements of McDonald's Corporation are actually guidelines for the management of the company involved in the global fast food industry. Started in 1940 and established as McDonald's Corporation in 1955, the company adheres to its mission statement to come up with the goods and services it offers. McDonald's adheres to its vision statement to always maintain the first rank in the fast food restaurant market. Having more than 36,000 locations globally, McDonald's has displayed toughness and success via aggressive marketing together with novelty. McDonald's accomplishments are indicators of business efficiency in meeting the objectives in its vision and mission statement.

McDonald's mission statement guides the company's strategies and strategic objectives for developing business operations. McDonald's vision statement guides the company's overall strategic direction toward its current leadership position in the global fast food restaurant market (McDonald's Vision Statement & Mission Statement Analysis).

McDonald's Vision Statement

McDonald's vision statement stated officially is as follows: "Our overall vision is for McDonald's to become a modern, progressive burger company delivering a contemporary customer experience. Modern is about getting the brand to where we need to be today and progressive is about doing what it takes to be the McDonald's our customers will expect tomorrow. To realize this commitment, we are focused on delivering great tasting, high-quality food to our customers and providing a world-class experience that makes them feel welcome and valued (McDonald's Vision Statement & Mission Statement Analysis)."

McDonald's vision statement covers numerous features of the enterprise. The company suggests innovation to meet the present market requirements and describes what it produces, as mentioned in the "contemporary customer experience" and "great tasting, high-quality food" portions of the vision statement respectively. In mentioning "modern progressive" McDonald's illustrates that its vision statement describes the type of business strategy it utilizes for the development of the company. A strategic statement connected to this vision statement is the innovation of McDonald's services and goods to meet the client anticipations as well as preferences.

McDonald's Mission Statement

McDonald's mission statement is as follows: "Our mission is to be our customers' favorite place and way to eat & drink. We're dedicated to being a great place for our people to work; to being a strong, positive presence in your community; and to delivering the quality, service, cleanliness and value our customers have come to expect from the Golden Arches -- a symbol that's trusted around the world (McDonald's Vision Statement & Mission Statement Analysis)."

McDonald's entails details regarding its market position in its mission statement as displayed in the "favorite place to eat and drink" part of the vision station. In addition, the human resource strategy is emphasized in the "great people for our people to work" part of the statement. The statement also covers its commercial social responsibility position in the "positive presence in your community" component of the statement. The other segments of the mission statement reveal the brand image and product character of McDonald's. A strategic goal founded on this mission statement is worldwide brand development so as reinforce the organization's capability of luring clients and investors. A financial goal founded on McDonald's mission statement is the reduction of cost to optimize value.

McDonald's Mission & Vision Statements -- Recommendations

The vision statement of McDonald's shows the general strategic direction of the organization. The vision statement covers and describes the various features of the enterprise. Therefore, McDonald's widely mentions what it intends to attain, rendering the vision statement satisfactory. A satisfactory vision statement assists in the unification of the objectives in the differing regions of the company.

The mission statement of McDonald's is also comprehensive. For example, the various features of human resource management together with corporate social responsibility are entailed in the statement. A point of concern, however, is the innovation aspect. For instance, the manner through which McDonald's guarantees that it handles anticipations of the customers. Hence, it is much better to entail innovation in the mission statement. The mission statement of McDonald's is capable of specifying research-founded or technology-founded product as a general strategy to guarantee client satisfaction. Via this extra detail, the mission statement could actually be more significant to the business state of McDonald's that entails product innovation ("McDonald's Vision Statement & Mission Statement Analysis - Panmore Institute," 2015).

McDonald's Strategic Goals

So as to achieve its vision, McDonald's concentrates on three global strategies:

To treat each worker and employees irrespective of background in the best possible manner an employer can: McDonalds follows an organizational culture where all employees and workers are stakeholders and an important asset of the company. It offers adequate training to enhance their efficiency and make efforts to fulfill their basic needs and expectations they have from the company. In addition, they can discuss their issues with manager whenever they want.

To offer operational brilliance to its clients in all of its restaurants: McDonalds makes sure that it does not compromise on operational excellence in all its subsidiaries all over the globe. For this, it offers simple menu, constancy in taste, consistent and identical decor in all restaurants, high quality food that is clean as well as safe and excellent marketing and branding strategy. In addition, it could be stated that the company comprises of efficient systems that help provide a competitive edge over others (Joy, 2014).

To attain permanent growth through expansion of the brand and leveraging the strong points of the McDonald's system via technology and innovation (Pebbles, 2010): McDonald's goal is to have permanent growth by leveraging the concept of brand expansion or extension. This is done by focusing on tech savvy consumers who prefer interactive technology. Therefore, the brand extension is planned through breakfast, kiosks, delivery, 3D printing, tablets, as well as extended hours. Three brand extensions in all restaurants is the main goal of the company to provide better service (Pal, 2013).

Decide if this is a competitive strategy or a corporate strategy and develop an HR flowchart as shown in the class accordingly.

McDonald's fast food restaurants are in competition with international, national, regional, and even local traders of food products. McDonalds actually competes based on cost, convenience, and service, through the provision of quality food products.

McDonalds makes efforts to remain cost leaders; therefore, it offers food at a price which cannot be matched by its opponents. For this, cost related to routine operations is kept low. Besides this, the food is delivered at high pace, for which the company has adopted simple methods and techniques to cook food. Further, it provides quality and cleanliness that ensure the food is safe to be eaten. Providing value for money is the main reason that McDonalds enjoys a competitive advantage over other companies (Google Sites, 2015).

HR Flow Chart

Hiring Standards

TQM

Hiring Standards

Testing and Training Practices

Merit Pay

TQM

McDonalds ensures there is proper employee empowerment and focus on consumers and persistent improvement. Primarily, as per TQM, it makes sure that employees arrive for job on time and are tidy as well as clean when it comes to dressing. They have an obligation that the food received by consumers is safe, for which they should often wash their hands. In addition, they are required to be aligned with Standard Operational Procedures like wearing gloves, etc. to cater quality in service. By focusing on consumers, McDonalds caters high quality to customers. Therefore, the employees should make sure that the services are provided in hygienic, enjoyable as well as amicable environment to satisfy consumers with high value. Besides this, the food offered should be safe, have high quality and hygienic. This helps the company to remain competitive for the long-term and improve on a regular basis (Edublogs, 2012).

Hiring Standards

McDonald's recruitment department makes efforts to entice and employ best employees for working in the organization by using online and offline modes. For hiring the right individuals who have potential to deliver adequate service, the company has identified behavior, attitude and skills which applicants must be able to exhibit (WethriveIndia, 2015). All job vacancies are provided with a job description that throws light on duties and obligations as well as individual specification delineating individual skills as well as competencies.

Testing and training practices

McDonald's training department makes sure that employees, especially new hires, are provided with adequate training in order to maintain quality and best service. This, in turn, helps in accomplishing competitive goals as consumers get what they want, fulfilling the mission of the company (WethriveIndia, 2015).

Merit pay

McDonalds offers merit pay on the basis of effective performance to its employees, under which bonuses or rewards are paid to the same for providing best services in the company. This system motivates other employees, which acts an aid to achieve competitive goals, as the overall performance also enhances.

Decide how you will execute the functional strategy of the "front-end" department.

Promapp is simply a special web-based procedure for management solution that provides easy drill down system incorporating procedures, work guidelines, as well as significant documents such as proforma letters and forms. In addition, it provides a central storeroom for all procedure-associated data that is simple to search and navigate.

For the human resource partners, it offers the capability of vividly laying out procedures for employee management- from employing personnel to handling bad behavior or violation of behavior, with the capability of attributing the needed documents for every stage.

Promapp provides an opportunity for all procedures to be modified live, on the system itself- an essential advantage for positions such as legislation change whereby implementing an old version of a procedure might be a breach of the law. In Promapp, when procedures are modified, the online procedure is immediately live, eliminating the probability of outdated documents or reference material being utilized. Every old version of the procedure is automatically stored in the modification log together with the author's name, cause of change, and date.

Even though McDonald's at first planned to utilize Promapp purely as a recruitment relations device, it is probably now going to be extended across other HR tasks (Promapp Solutions limited, 2010).

Explain how this is a strategic fit for the company

This is a strategic fit for the McDonalds because it simplifies the work of the HR department and provides a clear and easy way to navigate and search information rested to staff management. This helps the organization to coordinate all its franchises in an adequate manner by saving a lot of time and energy. The swift online management, by converting complex maps related to processes as well as documents and Visio charts into simple procedure maps through Promapp, has helped McDonalds to remain competitive and take immediate actions when required. The company in this manner remains organized and fully updated globally, wherever it has subsidiaries. The organizational structure which is profuse in nature follows this strategy on a daily basis in order to maintain consistency in performance. The strategy is completely in sync with the performance, duties, obligations, goals and objectives of the company. Without this, it would be difficult for McDonalds and HR department to meet daily needs of all individuals operating in franchises and managers who seek help and guidance and support of HR in emergency cases in distinct restaurants providing services at distinct places; as Promapp provides all data online in a simple manner. This further reduces the stress and load of HR and it has time to focus on other operations in the company to achieve satisfactory performance in the end. All the operations in the company support this strategy because of its simple nature. Everyone can leverage it whenever they feel a need for the same.

What are the basic courses of action HR will pursue to ensure that the recruiting, selecting, training, appraising, and compensation systems support the company's strategic plan?

HR plays a pivotal role in carrying out operations to choose the right candidate, training, motivating, setting policies and procedures which in turn, helps in accomplishing strategy of the McDonalds (Sabir, 2010).

Choosing right candidate

For this, HR recognizes the vacancy in McDonalds and lays out job description as well as a specification for the same. Then, job advertisement is given through offline and online sources like company's website, newspaper, etc. After the applicants apply for the job, HR conducts further process for few chosen candidates, which includes interview, aptitude or skill test etc. In the end, the candidate is chosen after comparing the total of all HR recruiters and doing related reference/background checks. HR chooses a right candidate as these procedures are highly expensive for McDonalds and it cannot afford to repeat the procedure (Sabir, 2010).

Training

HR plays an integral role in the process of training current as well as new employees. These are the individuals who have responsibility to schedule the hours of training, arrange professional trainers and experts as well as keep a note and close eye that the sessions of training are having a positive impact on the employees. Further, it helps the staff to develop extra skills that would help McDonalds to enhance performance and have a competitive edge over opponents (Sabir, 2010).

Motivating

There is an important role of HR in motivating employees in McDonalds. They set the structure and administer tools for motivation and managers execute the same. For this purpose, HR as well as top management establishes perimeters and managers have to provide bonuses in that limit through compensation policy in McDonalds. These help in maintaining costs and improve employees' performance at the same time, which in turn helps in accomplishing strategy (Sabir, 2010).