Basing on the challenges identified in Mc Donald’s environment in the previous assignment, the management system of the organization has a very poor organization culture. This can be described to be the reason for most of the issues faced by the company i.e. lack of productivity and poor customer satisfaction (Koh, Lee, & Choi, 2013). The report will, therefore, reflect on solving these issues through the application of CATWOE analysis and how the identified elements could be used to redefine the challenges. To maximize on the improvement sustainable competitive advantages of Mc Donald’s the report will focus on analyzing on the integration of managerial and organizational process.
Fig 1: Rich Picture: Solution for the Poor Organization Structure/Customer Service
Customer/Clients
Mc Donald can be considered as one of the largest company in the fast food industries where it has managed to develop a very large market base almost all around the world. The fast-food industry has also over the years increased in the competition which has resulted to also the increase in service quality (Manning, 2015). Despite its long-term service quality, Mc Donald poor customer service has largely been caused by the poor organizational culture. Due to this, the continuous improvement strategies in the company have been largely ignored and/or dismissed creating a very poor customer experience in service delivery and product development (Payne & Frow, 2013). The scope of the customer segmentation of the company is also one factor that should be highly integrated into improving customer service program.
Actors
The long stretch of Mc Donald food chain is majorly controlled by the use of franchises where currently the company has established its operation in over 100 countries today. The franchises are considered to have a very huge impact on the outcome development of the company operation performance i.e. in the growth of product portfolio and customer satisfaction (Peppers & Rogers, 2016). The lack of productivity or inventories can be largely reflected as the incapability of the company to integrate continuous quality improvement strategies. Also, due to the focus of increasing profitability in most franchises, customer service quality has similarly continued to “wear out” in line with the growth in competition. To change the current issues at hand, franchises must be willing to rebrand the image of the company completely by investing in the quality of customer service and product (Wang, Touboulic, & O’Neill, 2018).
Through the market share of the company, the transformation process can be easily achieved by developing an innovative organizational culture which should be largely based on creating sustainable products and service delivery. For example, most of the Mc Donald’s franchises are known for providing the same type of products and services standards which significantly hinders the growth of the company (Payne & Frow, 2013). To achieve the above transformational processes, the setup of Mc Donald operation processes must be efficiently structured. The company should develop a skill improvement strategy which will be focused on enhancing customer service experience and nurturing innovation as an important part of organizational culture. On the same note, the transformation process can only be highly effective through the enhancement of both the employee and customer engagement (Jones & Jones, 2013).
Weltanschauung
Manning (2015) argues that at the current worldview in the fast-food industry, Mc Donald has a lot of challenges to overcome especially in the issue concerning customer health concerns. The issue of ‘junk’ has continued to raise a lot of different opinions which have also changed the entire market perception and competitive advantages of various companies. The change in customer preference and taste has led to a significant downfall of various fast-food brands especially most of which that have been to issues of chronic diseases and the increase in obesity rate (Wang et al., 2018).
The issue has also led to the development of various government and health policies which aim in restricting either the consumption or production of most of the products believed to impact negatively on consumers. However, the fast-food industry has also continued to be embraced in the society as part of modern food culture especially in most of the urban centers in the world (Christopher, 2016). Therefore, in the approach of maximizing available opportunities, Mc Donald should also base itself as one of the most healthier and reliable fast-food company in the world.
Owners
Due to the complex structure of Mc Donald management, coordination and engagement are one of the most effective attributes which must widely present in the entire organization system. The required impact of the management is to promote the core consolidating benefits unlike in the current situation where more focus has been subjected to the expansion of the franchise chain. Through the participation of the entire management system, organizational cultural growth should be effectively cultivated by focusing on the improvement of customer experience (Jones & Jones, 2013).
If we redefine customer experience in accordance to this context, the main focus should be the improvement of customer-employee relation. In order to achieve this, the first objective should be dedicated to regaining the customer trust and loyalty by improvising healthier menus and new ‘adventurous’ ideas such as new entertainment technologies and fun ideas even for the old population (Doloi, 2011). The other main idea in attaining the best customer experience is through the improvement of customer demands and any other related issues, especially in franchises.
Like in most of the multinational corporations today, Mc Donald has been subjected to contracting to outside services in running most of its day-to-day activities. A good example is the company franchise chain which largely shows some of the challenges that continue to arise in the company (Cadle, Paul, & Turner, 2010). some of the issues like employee experience and job satisfaction can be directly related to this issue where most of the franchises have shown very poor management strategies. The lack of proper control of franchises has also caused the entire system to be further weakened in terms of service and product quality. Another environmental consideration is the increase in social changes and lifestyle i.e. the aspect of health awareness in the fast-food industry. This has been largely caused by the affiliation of Mc Donald in the increase of obesity in countries such as U.S and UK (Koh et al., 2013). Therefore, in order for Mc Donald to enhance its competitive advantages, its main issue should be focused on improving the core competencies of the franchises.
The main two main recommendations that I would like to see implemented in the approach of dealing with the inventory management issue and poor customer satisfaction include the introduction of much effective organizational culture and the rebranding of the entire company. The organization culture should be largely based on introducing inventory approaches the company daily activities such as the production of healthier brands (Lovelock & Patterson, 2015). Mc Donald management should make sure that the strategies are efficiently integrated into all the franchises and the aspect of customer-employee relation should be a key priority in the company structure. The rebranding of the company’s image is majorly focused on recapturing customer trust and other competitive advantages in the market such as the quality of product and service standards (Laudon & Laudon, 2016).
Fig 2: Market-Oriented Strategy
Conclusion
In summary, being one of the largest companies in the fast-food industry, Mc Donald company has significantly failed in the aspect of integrating quality services and product as it also continues to grow in the franchise chain. The company challenges have been contributed to a number of reasons which largely comprise of the company dependence on outside services and the increase in competition that has also caused the rise of quality demand in both the services and products (Lovelock & Patterson, 2015). Through the implementation of the above recommendation, I believe the company will be able to eliminate most of its currents challenges in product and service delivery quality.
References
Cadle, J., Paul, D., & Turner, P. (2010). Business analysis techniques: 72 essential tools for success. BCS, The Chartered Institute.
Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
Doloi, H. K. (2011). Understanding stakeholders’ perspective of cost estimation in project management. International journal of project management, 29(5), 622-636.
Jones, G. R., & Jones, G. R. (2013). Organizational theory, design, and change. Upper Saddle River, NJ: Pearson.
Koh, Y., Lee, S., & Choi, C. (2013). The income elasticity of demand and firm performance of US restaurant companies by restaurant type during recessions. Tourism Economics, 19(4), 855-881.
Laudon, K. C., & Laudon, J. P. (2016). Management information system. Pearson Education India.
Lovelock, C., & Patterson, P. (2015). Services marketing. Pearson Australia.
Manning, L. (2015). Determining value in the food supply chain. British Food Journal, 117(11), 2649-2663.
Payne, A., & Frow, P. (2013). Strategic customer management: Integrating relationship marketing and CRM. Cambridge University Press.
Peppers, D., & Rogers, M. (2016). Managing customer experience and relationships: A strategic framework. John Wiley & Sons.
Wang, Y., Touboulic, A., & O’Neill, M. (2018). An exploration of solutions for improving access to affordable fresh food with disadvantaged Welsh communities. European Journal of Operational Research, 268(3), 1021-1039.
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