Service Organization Concepts McDonalds

Document Type:Thesis

Subject Area:Business

Document 1

Besides, appendices have been included to illustrate a series of tables and figures that support the report. Table of Contents Introduction 4 Service Concept of McDonald's 5 Service Operations 7 Product 7 Place 8 Price 8 Promotion 9 People 9 Assessment of Operations Implemented 9 Conclusion 11 Recommendations 11 References 12 Appendix 1: Evaluation of internal factors 14 Appendix 2: McDonalds Data flow diagram 15 Appendix 3: Cause and Effect Diagram 16 Appendix 4: Process Flow Chart of McDonalds 17 Introduction McDonald's is the world's leading chain of hamburger fast food restaurant and the prominent global foodservice retailer. Headquartered in the United States, the company was founded in 1954 by businessman Ray Kroc. McDonald's serves more than 65 million customers daily with over 35,000 local restaurants in 119 countries (Mcdonalds, 2017). The corporation employs more than 2 million employees worldwide. Besides, the report will discuss how both the concept and the delivery system might be improved.

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Service Concept of McDonald's The service concept is the insight and expectations of the service itself in the thoughts of the employers, investors, stakeholders, employer and customers (Hill and Jones, 2012). As indicated in the figure below, the concept involves an open transformation process of transforming inputs to anticipated outputs through the suitable application resources. More precisely, services are cost-effective activities that lead to the place, time, psychological or form utility. A meal in a fast food restaurant not only saves time but also it offers a psychological help (Lee and Sozen, 2016). For the food service, the company offers appropriate and effective food delivery service. In terms of quality, McDonald's has made a series of limited menu to keep the brilliance and unique taste of the product.

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The company embraces strict sanitary principles to keep a clean kitchen and dining environment. McDonald's aims to offer distinctive service quality and high value to its customers as it is broadly recognized that the service quality is a major aspect in defining the accomplishment of a company (Schaarschmidt, 2016). The company has a belief that it is more convincing in marketing the brand by using the service concept along with the service operation. It is worth mentioning that McDonald's has made a series of the strict menu to maintain the distinctive freshness and taste of its product. During manufacturing, the product undergoes many quality checks to make sure it achieves the high-quality aspect (Appendix 2). For example, the hamburgers have to go through multiple examination catalogues, and the stock life of certain foods should not exceed 40 days (Singla, 2012).

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In addition, there are strict standards that must be adhered while the products are being created. The products that do not meet the appropriate criteria are eliminated before being delivered to customers. McDonald's aims to generate appropriate revenue by keeping the prices of products reasonable and affordable. This has been the critical concentration since the company was established in the early 1950s. McDonald's has specific value pricing and strategies for creating the products to increase overall revenue. In particular, the company has its complete supply chain system and production bases of raw materials, which enable it to maintain low prices. For now, the company also considers the prices of its competitors and the possible means to attract more customers. All these aspects are recognised and controlled in the UK through licensing of restaurants.

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Fast food has been widely regarded as the unhealthy food that may lead to serious complications for adults and children (Appendix 1). This challenge may provide the opportunity for other food chains that offer a healthier menu to take advantage of the market share (Figure 2). Besides, the companies in the fast food industry are not exempted from problems and disputes. In particular, McDonald's has experienced difficulty in cases where the economy is affected by inflation and changes in exchange rates (Fowler and Bridges, 2012). References Brown, S. , Blackmon, K. , Cousins, P. and Maylor, H.  Operations Management: Policy, Practice and Performance Improvement. Hill, C. W. L. , & Jones, G. R. Food allergy knowledge and training among restaurant employees.  International Journal of Hospitality Management, 57, pp. Mcdonalds, UK (2017).

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