Integrated Business Policy and Strategy
McDonald’s is undoubtedly one of the most successful companies in the world. Even with its impressive growth and successes, McDonald’s has still failed to avoid a few issues on its road to success. Even with the incorporation of healthier food options to McDonald’s new menu, this fastfood restaurant is still perceived as being a location for unhealthy living which is contributing to worldwide obesity. McDonald’s is getting a massive amount of bad press from critics circling on this issue which is steering away franchisees and customers.
The company is renowned for its fast preparation of meals for customers, and since the start of the business by the McDonald brothers, Richard and Maurice, themselves, the company underwent issues pertaining to health – campaigns against the overall fastfood industry occurred, launched by public interests groups, environmentalists, and consumer advocates. Apart from that, McDonald’s as a company suffered when franchisees demanded rights for such things as less control over store operations. Earlier, union rights were setup in different McDonald’s locations, and John Cooke, a labor management consultant, aided Fred Turner is getting rid of any suspect who could initiate a union.
One of McDonald’s biggest success factors was the introduction of its corporate mascot “Ronald McDonald”. The introduction of Ronald gave McDonald’s a big competitive advantage over other companies in the industry because it strongly appealed to the children, the market segment of kids ranging from ages four to 12. The Ronald McDonald mascot proved to be successful and by the mid1960s. Most of McDonald’s advertising budget was spent on promoting Ronald McDonald through all marketing channels. Ronald McDonald became a household name and McDonald’s expanded its recognition through television advertisements revolving around its new mascot. The creation of the clown mascot allowed the corporation to hire “greeting” and “performing” clowns to provide a real life experience for customers when visiting any McDonald’s restaurant. Ronald McDonald proved to be very popular even beyond McDonald’s advertising as the mascot became one of the most recognizable figures aside from Santa Claus. The mascot provided advertising that gave McDonald’s a competitive advantage other companies in the industry could not keep up with. The
creation of Ronald McDonald as the company mascot really helped with its appeal to children with this strategy continuing through the 1990’s. There was such a large presence in the children’s market which was attributed to the creation of Ronald McDonald, children under the age of seven accounted for almost half of the company’s total fast food sales. Another factor that has lead McDonald’s to great success is its large focus on customer service. McDonald’s launched a Service Enhancement Program early on to get their employees on a path to do “whatever it takes” to satisfy its customer. This strategy was implemented into every McDonald’s restaurant at all levels of employment. The Service Enhancement Program conducted orientations to encourage employees to be at the full service of the consumer. McDonald’s used consumer focus groups, employee “rap” sessions, and complaint tracking systems to keep its customer service ahead of its competition.
One of the other leading causes of the company’s success is its quick response to any problems arising. For instance, under the management of Fred Turner, franchisees voiced out their opposing feelings on the tight control on operations that almost feels like the employees are being scrutinized. In ...
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