The Aims and Objectives of Mc Donald’s
The aims and objectives for a worldwide know popular fast food restaurant like McDonald’s are there so that the business can set a goal in order to succeed or stay in the business.
In 2004 one of McDonald’s main aim and objective was to open a further 100 outlets in Britain, they also had objectives such as:
- To provide more goods or services than in the previous year
- To produce a new products
- To produce a new service
- To improve an existing product or service
- To use only recycled paper
- To increase sales in all charity shops.
McDonalds have also quoted that: “the three- way partnership between the McDonalds team, the suppliers and the franchisees is the foundation of the company’s success.
McDonalds also follow a guiding policy which is: “stick to what you are best at doing – and simply do it better than anyone else”.
McDonalds also have a well designed philosophy stated below:
THE MCDONALD’S PHILOSOPHY
RELIABLE
In what we say we’ll do.
SAFE
In operating practices which protect our customers, employees and reputation.
RESPONSIBLE
In making decisions which balance short, medium and long – term aspirations.
CONSISTENT
In our delivery of quality, service, cleanliness and our business partners.
TRUSTWORTHY
In our dealings with each other, our customers and our business partners.
THE LEADER
In advancing out position by being innovative, flexible and goal-orientated.
CUSTOMER-DRIVEN
In listening and responding to our customer needs.
ETHICAL
In our internal and external policies and practices.
WELL RUN
Through visionary leadership and focused management.
A GOOD EMPLOYER
In recognising that our employees are the key to customer satisfaction.
It is very important for business to have aims and objectives because it gives the business a set goal to focus on, meaning they will do their best to achieve this goal. McDonalds are very successful in meeting their aims and objectives an example of this is:
In 2005, parents were complaining that there weren’t enough happy meal choices. In reply to this, McDonalds introduced the happy meal choice chart and a number of new happy meal choices in March.
However, the business may need to change some of its aims and objectives to respond to a business change. An example of this is:
Lately, the cost of wheat has increased and so for McDonalds it means that they will have to pay more for their bread, which could also mean a slight rise in the cost of burgers. In this case McDonalds may set an aim to find a better and cheaper supplier of wheat.
The mission statement of NIKE
"To bring inspiration and innovation to every athlete in the world."
Nike also has a mission statement for their customer services which is stated in task 1B.
The mission statement of Mc Donald’s
McDonald's aim to be the UK's best fast service restaurant experience.
"McDonald's also have a vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness and value, so that we make every customer in every restaurant smile. To achieve our vision, we are focused on three worldwide strategies:
- Be the best employer for our people in each community around the world,
- Deliver operational excellence to our customers in each of our restaurants, and
- Achieve enduring profitable growth by expanding the brand and leveraging the strengths of the McDonald's system through innovation and technology."
McDonalds also have a vision statement which is:
“McDonalds Vision statement is to be the best restaurant experience… by far! To be people focused and customer driven… passionately! And to inspire people with our can-do attitude… always!
Operations (McDonalds)
Restaurants
- By the end of 2005, 1250 restaurants were trading in the UK.
- 465 of these are run by franchisees and 783 are company owned.
Recruitment and Employment
- By the end of 2005, McDonalds employed 42,963 people: 40,092 restaurants staff, 2,344 restaurant based management and 527 office staff.
- McDonald’s is an equal opportunity employer. The ratio between male and female staff is 56:44.
- 52.87% of hourly paid staff are aged between 16 and 20 years old.
Food Consumption
- Food and beverage is provided for around 2.5 million people per day in the UK.
- The 2005 UK’s supply chain expenditure was 425 million.
- McDonalds’s menu concentrates on five main ingredients: beef, chicken, bread, potatoes and milk.
Health and Safety
All McDonald’s restaurants work to standards which meet or exceed those required by legislation. The company always aims for highest best practice standards given in guidelines for building and health and safety regulations.
An organization chart is also included which can be found in the appendix.
Task 1B – How the business is organised, the functional areas, their purposes and activities.
Introduction
- As part of my applied business GCSE, I have been asked to compare two different companies. The two companies I am going to compare are Nike and McDonald’s. Nike is an LTD, while McDonald’s is a franchise. At the end of this course I aim to get a better understanding of how businesses run.
Different functional areas include:
The functional areas (Nike)
The business of NIKE contains of the following functional areas:
- Customer services Retail
- Human resources Operations
- I.T. Marketing
Marketing and sales use the SWOT analysis to analyse the existing position. This presents the:
Strengths
Weaknesses
Market Opportunities
External Threats
The functional areas (McDonald’s)
The business of McDonald’s contains of the following functional areas:
- Marketing
- Production
- Human resources
- Administration
- Finance
What these areas are for (Nike)
Customer services – Nike believe that there built department attracts, develops, excites and retains people. With help from their Support Team, the Internet and their classroom-based teaching everyone enjoys continual learning opportunities.
Nike believes that Building an honest, high-performance relationship is what their business is all about. Everyone in their Nikes centre has a passion for sport and Nike beliefs.
Human resources - Nike believe that their HR helps them achieve a competitive edge through people. Nike believes that their HR is like an investment centre which uses two primary technologies: PeopleSoft and the Web.
Nike also has a mission statement for their customer services which is:
“Our mission statement is to represent the highest service standard within and beyond our industry, building loyal consumer relationships around the world.”
Nike uses specific marketing strategy which is to attract people by centering on their brand image, which is attained by the distinctive logo and the advertising slogan: "Just do it". Nike also advertises their business by promoting their products with celebrity athletes such as Wayne Rooney and Gattuso. This is a very effective way of marketing because it attracts members of the public to want to buy such products. Nike has a marketing mix which is basically contains of other fundamentals besides promotion of the business. These are stated below:
Product
Nike have a very wide range of different merchandise, including shoes and for sports activities like , , , , , , and for men, women, and children. Nike also sells shoes for outdoor activities such as tennis, golf, skateboarding, soccer, baseball, football, bicycling, volleyball, wrestling, cheer leading, aquatic activities, auto racing and other athletic and recreational uses.
Place
Nike has sold its commodities to more than 20,000 in the U.S. and in 140 countries in the world.
What these areas are for (McDonald’s)
Human resources - The health, strength, talents, education and skills that humans can use to produce goods and services: also called human capital.
Finance – The commercial activity of providing funds and capital, or the branch of economics that studies the management of money and other assets.
Administration – Provides important support services to other departments in the same business, but not all administration departments are the same.
McDonald’s follow a simple company structure which leads their functional areas:
- Operations (equipment and franchising)
- Development (property and construction)
- Finance (supply chain and new product development)
- Marketing (sales marketing)
- Human Resources (customer services, personnel, hygiene and safety)
Operation
McDonald's have been the leading food service company in the world, for quiet a while. McDonald’s regard themselves as a very important global food service seller. With more than 30,000 restaurants serving more than 47 million people each day in 121 countries, it makes McDonald’s very hard to compete with. In 1974 McDonald's opened its first restaurant in the UK, as of 31 December 2001, McDonald's and its franchisees operated over 1,184 restaurants in the UK.
Finance
In the last five years, McDonald’s have made an increasing amount of profit in different retail outlets.
McDonald’s have 5 main food ingredients:
This accounts for £255million of food expenditure.
- Beef
- Chicken
- Bread
- Potatoes
- Milk
Marketing
In September 2003, McDonald's agreed a deal containing the pop star Justin Timberlake. He appears in five advertisements throughout the world, promoting the company's products. McDonald’s also sponsor Justin’s world tour, but haven’t mentioned the amount he is being paid, although there is rumor of it being in the region of $6 million (£3.6 million). The marketing movement will be entitled 'I'm Lovin' It' and the linked tour of 35 European cities is entitled the "McDonald's Presents Justin Timberlake 'Justified' World Tour 'lovin' it' live".
Human resources
McDonald's places importance on the training and development of its employees. They aim to provide lots of career opportunities for people to reach their full potential. The firm offers both full and part-time career opportunities, which helps staff to join work with family or learning commitments.
Job development is used to support employees who got their first job in the company to progress to higher positions. These promotions are based on the performance of a team member. Over 40% of McDonald's managers started as hourly-paid staff members in the restaurants. Over half of the company's middle and senior managers have moved up from restaurant-based positions.
This chart shows the type of people that work for the firm.
McDonald's Employment Levels 2001
- Total employees (not including franchisees' staff) = 47,500
- 57% of staff are male
- 43% of staff are female
- Two-thirds of hourly paid staff are aged between 16 and 20 years of age
- 90% of staff work for 35 hours per week or less
I.C.T. in the business (Nike)
One of the ways Nike use ICT is with CAD (computer aided design), a type of software that aids in the design of a product. Since Nike produce goods from shirts to trainers, they may use this technology to assist in their creations and productions.
Nike may also use ICT in the functional areas, such as online support for order tracking, or even data sharing for their databases.
ICT is used within the functional areas for different types of reasoning and communication. For example, the Sales department may want to contact the I.T. department and a way they could do is through a video conference. Also, this type of communication could be used throughout the functional areas, and the benefits of this type of communication is that it is fast and effective as everyone working under these areas will be well informed.
I.C.T. in the business (McDonalds)
One of the ways McDonalds use ICT is the electronic tills. The electronic tills are connected to a computer somewhere else in the business for every order made on the till, the information is sent straight to the computer which keeps records of what has been sold daily.
McDonalds may also use ICT in the functional areas such as the finance department. They use this advantage for keeping financial documents safe and available if needed to look back on.
The benefits of this are that the business will be able keep track of how many products they sell a day. Allowing the business to see what type of product sells best or what sells best at certain times of day.
Task 1C – How the business communicates internally and externally.
Introduction
- As part of my applied business GCSE, I have been asked to compare two different companies. The two companies I am going to compare are Nike and McDonalds. Nike is an ltd, while McDonalds is a Franchise. At the end of this course I aim to get a better understanding of how businesses run.
Methods of communication
In businesses there are many methods of communication, these include:
Oral communication:
- Telephone
- Face to face meetings
- Telephone concerning
By video:
- Video conferencing the internet video link
Written:
- Letter
- Memo
- Financial documents
- Advertisements
- Emails and attachments
Graphical:
- Production drawings
- Computer graphics
Basic Communications in business
Basic communications in businesses should at least be of a standard of the following:
- Should occur consistently
- Should be formal and informal
- Should be written and spoken
- Should be internal (stay within the business) and external (stays outside the business)
- Should be essential for business success
Internal communication
For such businesses to attain their set aims and objectives their functional areas must be supportive with each other and create a positive working environment, this can be achieved with the assistance of internal communication. The following are types of internal communication that needs to be acted upon:
- Operations and sales in the business must agree delivery rates
- The finance department must have a record of what has been sold
- Sales staff must credit limits
- Customer service must know about problems and delays
- Human resources must know about training requirements
Another example of internal communication is that the manager of McDonalds may have an internal communication aim or objective and so may then create consistent internal memos within the business to help towards this accomplishment.
Another example of internal communication is if Nike may want to produce and put on sale some new designer trainers, before this happens, both the sales and operations departments must agree on terms.
External Communication
External influences are factors that affect the business, which the business cannot control.
- Customer enquires must be handed promptly
- Product/service information must be accurate /attractive
- Customer invoices must be correct
- Customer and supplier problems must be resolved quickly
Such external factors are beyond a businesses control:
The activates of its competitors
Changes in the business environment
New laws controlling in business
An example of external communication is that Nike may have realised that they have new competitors, (a new sports store built next door) and that these competitors may be doing better than Nike because they are doing half price sales. Therefore Nike may have to offer their customers special deals to try and compete with them. This is classified as an external influence because it is not a factor that the business can control.
The Ways of McDonalds
- McDonalds use a variety of ways to communicate so that everyone in the business knows what is going on. These include:
- Food for thought – this is a letter from the Chief Executive Officer Steve Easterbrook, it will be posted every week informing people of what’s happening in the business from the perspective of their CEO.
- Quarterly meetings – these meetings bring together the key suppliers, employees and their franchise community to review their strategic priorities for the upcoming quarter.
- Intranet – the main function of the intranet is to assist the restaurant management teams in their day to day running of the business, by providing relevant tools and information.
- Also, the McDonalds restaurants have their ways of communicating, these include:
- Crew communication kits – these follow after the quarterly meetings.
- MUDK – their magazine crew
- Operations update – sent weekly to all of their restaurants
- Franchisees – NLG (National Leadership Group)
Task 1D – The external influences, including reference to location, competitors and conventional constraints.
Introduction
- As part of my applied business GCSE, I have been asked to compare two different companies. The two companies I am going to compare are Nike and McDonald’s. Nike is an LTD, while McDonald’s is a franchise. At the end of this course I aim to get a better understanding of how businesses run.
The business location (McDonalds)
Most of McDonald’s earliest restaurants were opened in the UK during the 1970s, many customers were willing to travel miles to visit them. This specific McDoands is located in archway (N19)
McDonald’s believe that their customer convience & research are the things that drive force behind McDonald’s restaurants and locations. Such development has led to new McDonald's in sites as varied as cross-channel ferries, a bowling alley and London's former County Hall. The Company is committed to responsible growth, and works closely with local planning officers and community groups when developing a new restaurant.
When McDonalds decide to open a new restaurant, it is considered as a long-term proposition. For McDonalds, local knowledge is a key factor to choosing new locations. McDonald's relies on discussions with local managers who are involved at the grass roots level with their local communities.
Key customers & competitors. (McDonalds)
McDonald's are one of the leading providers of quick service food globally. In the UK, the company has 1,250 restaurants - around 500 of which are franchised operations. Seen as how McDonalds are a very big and successful franchise, they are bound to have competitors such as:
- Red rose tandori
- KFC
- Andrews restaurants
- Nid ting
- St. johns bar & dining room
- Bengal brasserie
- Del parc
- The balti king
- The parsee
McDonald's are one of the only franchises to have a goal of no more than two complaints per restaurant per month. Using Business Objects to spot problems early, such as staffing levels, some 500 stores have achieved zero complaints for more than two months.
In McDonalds, customer service is improved by information from the three "Mystery Shopper" visits to each restaurant monthly. This information includes, amongst other criteria, whether or not there was a friendly greeting, whether the server was wearing a name badge, as well as the overall cleanliness of the restaurant.
Some of McDonald’s external influences may affect the way that the business is managed and run. For example, if there were complaints being made about the level of pay for its workers then McDonald's might have to respond to this. Even though it could be argued that the workers demands are not an external influence the company would still face pressure to make judgments about the nature of its decision-making.
The business location (Nike)
Nike are known worldwide and have many stores throughout different countries, these include of:
Austria, Belgium, Croatia, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Israel, Italy, Netherlands, Norway, Poland, Portugal, Russian federation, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland, Turkey, UK and Ireland.
In Nike’s case, it is very important that all of their locations suit to their liking because Nike aims to get out of their store locations including, profit and popularity. Before building a new store, Nike may need to take into account the following factors:
Is the area appropriate?
What are the possible benefits?
Where are their competitors based?
What are the costs?
What are the alternatives?
What would be the costs/benefits of trading?
Key customers & competitors (Nike)
Nike has many competitors such as:
- Wigamre sports ltd
- Melissa odabash
- The highlands
- Savage london
- King of trainers
- Adidas sports perforamce london
- J.D. sports
- Henri-Lloyd ltd
- Sports world
- Foot locker UK
Dealing with the enviromental problems
McDonald’s restaurants and business impact on the environment by:
- Sourcing agricultural products and other materials to serve and build their restaurants.
They aim to address these impacts by:
Restaurant operations – focusing on restaurant processes to:
- Improve energy efficiency
- Minimize impacts related with odour, noise, and emissions to the atmosphere.
- Reduce the amount of solid waste
- Increase the value recovered from solid waste before its responsible disposal
Purchasing – focusing on procurement to:
- Work in relationship with environmentally responsible suppliers to minimize the resources used.
New restaurants – focusing on the development of new restaurants to:
- Minimize the impact on the environment of local communities
- Minimize the environmental impact of construction itself
Our employees – focusing on training, and communicating with our employees to:
- Increase the environmental awareness and relevant skills of all who work for McDonald’s
Communications – focusing on communicating out environmental policy and procedures to:
Increase the environmental awareness of our suppliers and our customers
Improve liaison with local communities and their representatives.
McDonalds have made it clear that they do not, have not and will not purchase beef from rain forest or recently deforested rain forest land.
Economic constraints
Such economic constraints such as price changes can affect Nike because this then means that if the prices of petrol where to increase, then Nike would have to up the prices for the customers and for the business itself.
Another example of economic constraints affecting a business is with the finance department of McDonalds. If the exchange rates of the money changes, then as a result McDonalds would then have to pay more for their raw materials or up the selling prices.
Environmental constraints
Environmental constraints can also affect a business such as McDonalds; this is because their may be a law in the particular area of which McDonalds is located. The law may be that litter and waste on the streets are to be reduced by a certain amount. Therefore McDonalds may have to change their bags to reusable bags. This is an example of environmental constraints with McDonalds.
Another real life example of environmental constraints is that Nike’s delivery vans and Lorries may run on such petrol that causes pollution towards the environment. As a result, Nike may have to buy new delivery transportations which will be run on different petrol that do not cause as much harm to the environment.
