Financial Management And Cost Control Practices: A Case Study Of McDonald’s Restaurant

Front of House Operations

Discuss About The Financial Management Cost Control Practices.

Financial management and cost control practices refer to the measures and precautions that are undertaken to safeguard the economical use of money in a business entity. McDonald’s Restaurant is a corporation in the food industry that has established its roots in several places globally (Kulikova, and Safarova, 2016). The junk business is a huge mockery without the involvement of McDonald. This is a fast-growing business entity that has a customer satisfaction of 100%. This is due to the type of service offered in the conglomerate as top notched and qualitative foods are sold here with its diverse roots in various nations, The food Corporation provides different types of foods according to the locality of the geographical space. Fast foods such as sirloin sandwiches and chicken tenders are the common menu affiliates in this food corporation. With more than 1.5 million folks working here, the service delivery is usually at its best for the betterment of customer satisfaction(Kulikova, and Safarova, 2016).

Involves all attempts and procedures in ensuring that the eatery business is economical in its budgeting whereby it minimizes the costs indulged and maximizes profit earned (Lawal, 2017). McDonald front house operations involve the locations in the business corporation that are accessible by the customers In ensuring high-quality service delivery the organization manager provides proficient productivity to clients in the restrooms, the restaurant bar, and the dining room. In order to accomplish this, the rooms are skillfully and effectively planned and organized. More experienced and qualified staff are hired into the cleaning and customer services (Karmanovaet al, 2016)

The staffs employed at McDonald are ever friendly and shrewd critical thinkers. Not only does experience matter but also the attitude one has towards the customers who come to seek services from the posh restaurant (Chatterjee, and Lygeros, 2015). The front house of the restaurant is usually stocked accordingly with the best expertise in that particular field. The first outlook of an eatery business can either make it or break it. The wait station of McDonald is well stocked to the best to achieve 100% customer satisfaction rate (Abadie, Diamond, and Hainmueller, 2015).

Front of the house promotions is very key in the conglomerate operations as they attract more customers This being a successful restaurant McDonald offers dinner specials in after every three weeks. This act is usually done in an attempt to show appreciation to the customer for their loyalty. However, Macdonald uses such events to bring more business opportunities in the business entity. Hence the promotions tend to make the business corporation busier

Back of House Operations

McDonald restaurant has an effective cost control technique. The point of sale systems is highly integrated. The POS are majorly used in this business corporation in order to ensure that the charges involved in the selling of drinks and foods are easily traceable. Hence this technique is efficient for accountability in the sales of the restaurant. This is useful in budgeting and auditing in the restaurant (Karmanova et al, 2016).

The guest services are automatically updated and enhanced in a digital way such that guests harmonize a relationship with the restaurateur, this is accomplished through the applications used. In addition to this, the application has a delivery management with an ID personality interface that is interfaced (Yazdanian, and Mehrizi-Sani, 2014).

Back of House operations in McDonald restaurant meet the health and safety regulations and measures at a high level. This is done to ensure guests have a splendid time in the hotel (Chatterjee, and Lygeros, 2015). Thebacks of the house of operations are usually under the executive chef who is the key player in the management and delegating roles to house staff. The executive chef is solely responsive to an update in the hiring process, menuupdate, inventory management and the stations’ management. Here at MacDonald the executive chef designs and updates the menu if the need to do arises. Housekeeping in McDonald is key in attracting the guests for another days visit at the entity. The room attendants are usually equipped with effective skills to work with the general managers in enhancing efficient productivity(Abadie, Diamond, and Hainmueller, 2015).

The restaurant has technically installed wireless point of sales systems. This is efficient in cost control as the handheld assistant is a swift digital helper that enables quick sending of orders to the kitchen. This is effective as it enables easier auditing of the sales volume of the restaurant and the budgeting is also catered for. The costs of employing more staff are reduced due to the wireless POS (Li et al, 2016).

The back of operations and labor management, this cost control technique is efficient in ensuring that the process of hiring staff is traceable, the individual details of staff and all the pertinent details to the organization manager in McDonald restaurant.

Financial reporting, McDonald restaurant has a primary server into which all the data regarding the business transactions occur are posted into the database(Matthews, Harel, and Aseltine, 2017). These data are useful in enabling the restaurant to make financial reports effectively, wise financial decisions that may affect the hotel and be making the profit and loss analysis. The personal digital assistants also enable the restaurant to be time conscious thus saving time for other operations in the restaurant. This is key in ensuring that time management is prioritized at its best (Lawal, 2017).

Cost Control Technique: Point of Sale Systems

These are the setup policies and regulations used in managing the finance in McDonald restaurant. These methods are put in place to ensure that the firm meets its standards (Matthews, Harel, and Aseltine, 2017). McDonald restaurant has applied several financial control methods: The segregation of duties. The employed staffs duties are clearly allocated in that it brings out a difference between the sales department and revenue department. Information security, the database of the restaurant I constitute in such a way that I limited access to them (Zietlow et al, 2018). Only authorized staffs usually access the finance and document details of the eatery business. Hereit’s only the executive chef who has the permission to do that. This financial method is key in ensuring that leakages do not occur at any point in the business endeavors of the restaurant. Thus, the financial documentation is well protected against possible threats such as hackers and in office theft.

Audittrials. McDonald has internal auditors who report to the business entity semi-annually.The professional auditors provide clearly set up records that have all the details pertaining all the events that occur in the business at any particular time. These records involve all the documentation that might affect the business in one way or the other. These records are kept for events as the updating of the restaurant’s documents, budgeting approvals in the business and for financial transactions (Li et al, 2016).

McDonald restaurant has employed several executive staff whose main role is to be accountable for the service delivery by maintaining that the services are accurate as per the customers’expectations. The executive staffs also have to ensure profits are highly achieved. Thus the employment of the sales manager, chief operating officer, and general manager to act as executive staffs in charge of ensuring accurate operating metrics (Lawal, 2017).

Financial control methods and cost control techniques are superb when applied appropriately in a business entry such as the hospitality enterprise used above i.e. McDonald restaurant. The application of such techniques sees the business entity being successful in its operations. The laid out policies enhance a business operation scale and productivity.

References

Abadie, A., Diamond, A., and Hainmueller, J., 2015. Comparative politics and the synthetic control method. American Journal of Political Science, 59(2), pp.495-510.

Chatterjee, D. and Lygeros, J., 2015. On stability and performance of stochastic predictive control techniques. IEEE Transactions on Automatic Control, 60(2), pp.509-514.

KARMANOVA, T.E., PODSEVALOVA, E.N., MITYURNIKOVA, L.A., SILAEVA, A.A. and ATAMANOVA, M.A., 2016. Peculiarities of improving internal financial control in the Russian corporations. Editorial Board, 11(1), p.39.

Kulikova, L.I. and Safarova, D.R., 2016. Internal control and compliance-control as effective methods of management, detection, and prevention of financial statement fraud. Academy of Strategic Management Journal, 15, p.92.

Lawal, B.A., 2017. Effect of Cost Control and Cost Reduction Techniques in Organizational Performance. World Academy of Science, Engineering, and Technology, International Journal of Economics and Management Engineering, 4(3).

Li, S., Yang, J., Chen, W.H. and Chen, X., 2016. Disturbance observer-based control: methods and applications. CRC press.

Matthews, G.J., Harel, O. and Aseltine Jr, R.H., 2017. A review of statistical disclosure control techniques employed by web-based data query systems. Journal of Public Health Management and Practice, 23(4), pp.e1-e4.

Osadchy, E.A., and Akhmetshin, E.M., 2015. Development of the financial control system in the company in crisis. Mediterranean Journal of Social Sciences, 6(5), p.390.

Yazdanian, M. and Mehrizi-Sani, A., 2014. Distributed control techniques in microgrids. IEEE Transactions on Smart Grid, 5(6), pp.2901-2909.

Zietlow, J., Hankin, J.A., Seidner, A. and O’Brien, T., 2018. Financial management for nonprofit organizations: Policies and practices. John Wiley & Sons.