Mcdonalds
McDonald's: Polishing the Golden Arches
Generic & Functional Strategies
Overall, McDonald's tries to operate on a cost leadership basis by offering low-priced goods with higher profit margins. Most of the functional strategies adopted by McDonald's correlate with this strategy of low cost.
McDonald's management strategy involves a primarily decentralized delegation of authority. The CEO is responsible for making all the large company decisions and designing the processes involved in the business. But since the company allows entrepreneurs to open their own franchise locations, it also allows these franchisees to manage their own stores as they see fit, so long as they follow the stated values and procedures. This management strategy fits in with McDonald's generic strategy of cost leadership because the simple standardized policies are monitored at each location which cuts down costs of executives traveling to check on each store.
McDonald's recognizes the value of their employees and thus their personnel strategies work to attract, develop, and retain a highly competitive workforce. Employees are offered a plethora of benefits and opportunities for both financial rewards and recognition. See Appendix A for a complete listing of benefits and awards offered to McDonald's employees. Promotion usually occurs from inside the organization where employees increase their training and responsibilities as they move up the corporate ladder to store manager and beyond. To help educate new managers and franchise owners, the Hamburger University training program has been established. While some of these personnel programs are pricey and appear to disregard the low-cost strategy, they actually work to attract and retain a competitive workforce which is much more cost-effective than having to retrain new employees due to high turnover.
Displaying their highly automated processes, McDonald's utilizes an assembly line production system
Generic & Functional Strategies
Overall, McDonald's tries to operate on a cost leadership basis by offering low-priced goods with higher profit margins. Most of the functional strategies adopted by McDonald's correlate with this strategy of low cost.
McDonald's management strategy involves a primarily decentralized delegation of authority. The CEO is responsible for making all the large company decisions and designing the processes involved in the business. But since the company allows entrepreneurs to open their own franchise locations, it also allows these franchisees to manage their own stores as they see fit, so long as they follow the stated values and procedures. This management strategy fits in with McDonald's generic strategy of cost leadership because the simple standardized policies are monitored at each location which cuts down costs of executives traveling to check on each store.
McDonald's recognizes the value of their employees and thus their personnel strategies work to attract, develop, and retain a highly competitive workforce. Employees are offered a plethora of benefits and opportunities for both financial rewards and recognition. See Appendix A for a complete listing of benefits and awards offered to McDonald's employees. Promotion usually occurs from inside the organization where employees increase their training and responsibilities as they move up the corporate ladder to store manager and beyond. To help educate new managers and franchise owners, the Hamburger University training program has been established. While some of these personnel programs are pricey and appear to disregard the low-cost strategy, they actually work to attract and retain a competitive workforce which is much more cost-effective than having to retrain new employees due to high turnover.
Displaying their highly automated processes, McDonald's utilizes an assembly line production system