The Power Of The Mcdonalds Brand

The Power Of The Mcdonalds Brand McDonald is one of the most popular fast food brands in the world. It started business in fifties and now it is serving worldwide chain of 30,000 restaurants. McDonald restaurants undoubtedly present a very useful example of sociological artifact. Several artifacts of modern world has been very well organized as Macdonalds popular brands, promotional strategies with the famous toys and films, its involvement in the charities and its saturation advertisement. More than 75% of McDonald is owned and operated by local men and women. Its serves more than 40million people per day. It drives 80% of its revenue from 8 countries like Canada, Brazil, Germany, France, Japan, UK, Australia and USA. The greatest achievement it got was creating a image in the minds of people and introducing them to the fast food culture. Delivery speed, customer care and hygiene cautions are the main driving advantage it has which helps the Macdonald to attract many customers. They have created a corporate symbol and saturated advertisement has helped the Macdonald to make a brand image and logo in the minds of millions of people. Overall McDonald strategic plan is called plan to win. There focus is not to be the biggest fast food chain in the world but the best fast food chain. McDonald strategic thinking behind this plan is creating better experience through the execution of multiple initiatives surrounding the five factor of exceptional customer experience. (McDonald, 2009) A key element of the MacDonald strategy since the beginning has been to own all the property on which the MacDonald was built doesnt matter the property is franchised or company owned. Rental money differs from property to property but it has been estimated that McDonald generate more money from its rents of the property than the franchise fees it charges. The success of the MacDonald since its beginning can be attributed to the customers service it provides. As the restaurant wants to be known for its consistent high quality food and uniform method of preparations. Macdonald has revolutionized the restaurant industry by inventing the limited menu fast food restaurant. Some inventions it has made are the introduction of the indoor seating and drive through windows. Another invention was the introduction of the play area. MacDonald is continuing new inventions to facilitate the mass customization process. In 2001 McDonalds began standardizing its technology its existing point of sale system with the office system in more than 11,000 stores in the United States. The company is investing in a common point of sale which will be available to use all over the world in its branches. (typepad, 2009) McDonalds facilitates the exchange of value by matching the money paid by customers with quality and variety of products and services resulting to the customer feeling of having received their moneys worth and even more than what they paid for. McDonald targets the customer satisfaction by catering the preferences to make the customers feel satisfied about the value exchange. McDonald is recommend for the family or friends gathering as well. MCDONALDS VISION To be the best and leading fast food provider around the globe MISSION STATEMENT McDonalds vision is to be the worlds best quick service restaurant experience. Being the best means providing outstanding quality, service, value, and cleanliness so that we make every customer in every restaurant smile OPERATIONS AND BUSINESS STRATEGY The definition of business strategy is a long term plan of action designed to achieve a particular goal or set of goals or objectives. Strategy is managements game plan for strengthening the performance of the enterprise. It states how business should be conduct to achieve the desired goals. Without a strategy management has no roadmap to guide them. In McDonald the business strategy for the company is to make food fast available to its customers at a very low competitive price but to get profit as well by reducing the cost of the product and expanding the business world wide. Operations strategies play a very important role in achieving organizational goals. By using these strategies an organization controls and maintains all of its operations. So these should make after a comprehensive marketing analysis according to capabilities and resources of an organization. Operation management strategies in McDonald are being made by made by top management. These strategies are implemented in all the branches of the McDonald and these strategies are distributed to all its franchise branches in the written form. So there are operational managers in all the branches that control all operational activities. McDonalds has developed three strategies for its future scenarios. These customers values, customer convenience and optimal operations. Together with the digital strategies, it helps to create new ideas for the company. The stores are characterized by the operations team as miniature manufacturing facilities. With its goal to improve the manufacturing process (inventory control, production planning, financial control and point of sale order entry) that help the store. (bized, 2009) REDUCING COST WITH MORE EFFICIENT EQUIPMENT The challenge facing the global equipment suppliers when they design the fryers for our restaurants is to develop such kind of equipment that are more energy efficient and gives better taste while improving the crew efficiency and using less cooking oil. The low oil Volume Fryer is our next generation fryer. LOV improves cooking efficiency, simplifies filtering and cleaning, and provide enhanced environmental benefits. The LOVs innovative design allows restaurants to cook the same amount of product with approximately 40% less oil. It also uses approximately 4 % less energy than standard fryers. (Gallagher, 2003) In McDonald lighting represent an important role in reducing the cost of its operations. McDonald uses fluorescent low consumption lighting in the kitchen. Tests revealed that each restaurant saves 11,000kWh of electricity each year. Packaging plays an important role of McDonald brand not only for quality, integrity and safety but also in its visibility to our customers. McDonald also use its cooking oil in its transport operation which has significantly reduces the cost of operation as well. The manuals of the McDonalds employees not only emphasize the organizations motto and QSCV, it also spells out everything they need to know to perform their tasks efficiently. It includes detailed rules on cleaning, food preparation and employees grooming and hygiene. They help ensure efficiency, predictability, and control in the production and customer service. In order to achieve its business strategy goals, McDonald is emphasizing more and more on reducing its cost of operational activities. In order to reduce the cost McDonalds purchases its potatoes from corporate farmers in farming states not the commodities market. Consequently it limits its contact with price fluctuations that might have occurred by using the commodity exchange to get those goods. (typepad, 2009) Aside from offering hamburgers and fresh fries, McDonald has start serving the family treat and as a community centre for the senior citizen. It has also start giving indoor playgrounds and promotional toys to its kids as well. As this trend continue there is an extension of more service-oriented technologies is needed. They can conduct studies and surveys to better know which among the different alternatives serves the companys objectives the best. These might include robots taking orders instead of humans, automated processes of food production (typepad, 2009) McDonald has a policy to be in the market as a market leader. In order to keep its leadership it keeps low cost and gets more income by selling food at cheap price. Food made with the help of machine is considered more hygienic; however the continuous development in the technology McDonald and especially its employees as they have to serve quick services. Computers and smart cashiers are used by the employees so that they would not get confused and they are provided with customized database management system. These all operational activities are conducted in all the branches of McDonald worldwide in order to successfully implement the business strategy of the McDonald. MCDONALD LAYOUT, PROCESS TYPE AND USE OF TECHNOLOGIES MCDONALD KITCHEN LAYOUT The strategy refers to the overall working and general environment offered by the McDonald. It includes the personal level, service and product layout, interior and exterior. McDonald has a policy to serve the fresh food to it customers in a minimum time and at the same time they want to get as many as possible customers to get the more income. The most important thing on which McDonald operational department concentrate is the customers satisfaction. Customers satisfaction can only be achieved if it serves the customers with a good quality food in a quickly with minimum price. In order to perform this whole process McDonald has a very specific type of layout. This layout gives an easy access to the staff to serves the customers in a quick way. At the till when a staff serves the customer, staff has a everything in its reach required by the customer. (Gallagher, 2003) McDonald keep maximum number of tills opens to serves the customers and each staff takes average one minute to serves the customer. The chairs are arranged in such a way that it gives a minimum disruption to the people who are standing in the queue. In the kitchen department McDonald has selected high efficiency fryers which take minimum time to fry the chips. Operations manager has assigned the task to different staff members according to their ability. McDonald get most of the things in ready to serve form from its main headquarter which decrease the cost of producing the food and it also help the McDonald to keep the quality same all over its stores. Staff in McDonald only has to put the food in oil and it gets ready to serve. It also helps the McDonald to save lot of storage cost. In order to keep the system runs smoothly McDonald always keeps good relation with the suppliers. Their supplier makes sure that they deliver the goods to McDonald in the minimum possible time. (Swearingen, 2003) STRATEGIC IMPORTANCE OF LAYOUT Proper layout enables: Higher utilization of space, equipment and people Improved flow of information, materials or people Improved employee morale and safer working conditions Improved customer/client interaction Flexibility Layout design mean the overall working and general environment offered by the McDonald. It includes the personal level, service and product layout, interior and exterior etc. STRATEGIES: Exterior McDonald sets its premises in proper manner to handle any number of customers easily. The building design is standard world wide but it may be have some difference in size or in exterior according to the location. It enables them to save time, satisfy their customers, comfortable environment for both employees and customers. Ray Kroc opened the first McDonalds franchise in 1955 and today there are over 30,000 restaurants worldwide. McDonalds objectives were to modernize older McDonalds buildings with a fresh new look, while still maintaining the primary iconic sign design and exterior facade elements. The restaurant sign design had to carry the restaurants into the next decade and follow their unique Forever Young branding. Interior: Interiors are set to be depoliticized. In addition to new restaurant lighting, menu boards, artwork and graphics, new materials will offer choice when it comes to decor selection. Technology perks include Wi-Fi, programmed music, and video. (typepad, 2009) MCDONALDS USE OF TECHNOLOGIES McDonalds U.S. created a Store Technology Board to help deliver on the Plan to Win. The board is comprised of corporate and franchisee representatives and is responsible for guiding the development of technology in McDonalds U.S. restaurants. It is also responsible for ensuring timely, cost-effective delivery of high-quality technology solutions; providing effective and timely communication with McDonalds stakeholders and leveraging technology talent and resources where they exist. In 2001 McDonalds began standardizing its technology by integrating its existing point-of-sale and back-office systems in more than 11,000 restaurants in the United States. The company now is investing in a common POS system for use around the world. New-POS, a product developed by Savista, will help McDonalds improve restaurant productivity and enhance the customer experience. In addition, moving to New-POS will create a common platform across the globea move that will better allow McDonalds to leverage future technology in the restaurants. McDonalds implemented an integrated electronic payment system that could be adapted to meet future technology needs as well. He says a significant amount of time also was invested in finding a solution that would permit debit, credit and gift card transactions to be processed through the standard POS system in less than four seconds.(swearingen, 2003) McDonald uses the best equipment to carry out the day to day operation in its outlet. MCDONALD EXPLOTATION OF VALUE CHAIN AND QUALITY PORTERS FIVE FORCES ANALYSIS Competition Restaurant industry is highly competitive industry. There are many small fast food businesses in the industry that fight each other to improve their customer base. McDonald is not exception to this. Since it establishment in 1940, MCD has excelled in this sector. Nevertheless to stay in the competition, it started with MCafe. This helped the company to stay in the business as a major fast food business. Another major step came out when McDonald started breakfast to compete with the existing businesses serving breakfast. Hence this industry is extremely competitive and the MDC should be up to date with customer taste and preferences. Quality is very important for McDonald in order to stay in the market but at the same time it has to keep the prices minimum to maintain the cost leadership. Ease of entry Although it is hard to enter in the restaurant business as it demand a lot of investment and it is hard to establish a distinct brand name as well. There is a cost of entry in the market and there is high research and development cost. Large established companies like McDonald do make it more difficult to enter and succeed within the marketplace, new entrant find that they are faced with price competition from existing chain restaurants. At the same McDonald working hard to maintain the quality same throughout the time. It is aware that if it compromise on its quality then it will make very much easier for the new entrant to attract the customers with better quality of its food products. Figure 1.1 Substitutes McDonald keeps a very close watch on its quality because it is aware that customers have many others substitutes of its food products. e.g MDC burgers, Beverages and dairy products. Strength of Suppliers The suppliers power in the fast food industry is relatively small unless the main ingredient of the product is not readily available. Strength of Buyers Relatively strength of buyers in this industry is relatively low.(Ifm, 2009) PORTERS FIVE FORCES ANALYSIS OF VALUE CHAIN The goals of these activities are to offer the customer a level of value that exceeds the cost of activities, thereby resulting in a profit margin for McDonalds. Figure 1.2 The primary value chain activities are: Inbound Logistics The receiving and warehousing of raw materials and their distribution to manufacturing as they are required. McDonald has an efficient warehousing and transporting goods to its branches. All the products are made in the warehousing and goods are distributed as per the requirement of each branch. Operations The processes of transforming inputs into finished products and services. McDonald has a very good operation system as it has trained staff for each task in the kitchen. Most of its product is already in the ready to serve form. All they have to put them in the ovens or in the oil and the product get ready to serve in the minimum possible time which normally takes from 1-5 minutes. Outbound Logistics The warehousing and distribution of finished goods. McDonald has a very well established transporting system. As all of its products are prepared at the warehouse, so in order to improve the distribution process it has applied the IT technology which inform the warehouse body that which branch is running out of the products, so before the products get finished it immediately make available the product to the branch. This process is very cost effective as branches do not need to have the stock room for the goods. Marketing Sale The identification of customer needs and the generation of sales. Service The support of customers after the products and services are sold to them. The primary activities are supported by : Technology development Technologies to support value creating activities. The value chain model is a useful analysis tool for defining a firms core competencies and the activities in which it can pursue a competitive advantage as follows: Cost advantage By better understanding costs and squeezing them out of the value adding activities. As per the porters five forces analysis McDonald deals with factors outside a industry that influence the nature of competition within it, the forces inside the McDonald influences the way in which the firms compete, and so the industrys likely profitability is conducted in the Porters five forces mode.(Ifm, 2009) Figure 1.3 Further there are Secondary support activities which directly supporting the operational activities of the business. HRM department make it possible for the business to get the energetic people to perform the operations. They always keep motivating the staff to work hard. The Management makes possible to select the technology which is cost effective together with the efficiency. CONCLUSION McDonald is a very well established organization. The success of the McDonald is completely based on the extensive research of the market internal and external forces. It has done research on the people behavior of specific country, on their culture, buying power and social issue. McDonald has paid special attention on the location of the business, its interior and exterior outlook and types of technologies it going to use to get the maximum production at short time. The most important thing which it focused on was the quality and the market forces which directly affect the business.

Basic Manufacturing Cost Categories Essay

The term direct labor is reserved for those labor costs that can be essentially traced to individual units of products. Direct labor is sometime called touch labor, since direct labor workers typically touch the product while it is being made. Manufacturing Overhead Cost: Manufacturing overhead, the third element of manufacturing cost, includes all costs of manufacturing except direct material and direct labor. Enumerate and define the different classifications of costs On the basis of Nature or Elements: One of the important classification cost is on the basis of nature or elements. Based on elements, it is classified into Material Cost, Labour Cost and Other Expenses. They can be further subdivided into Direct and Indirect Material Cost, Direct and Indirect Labour Cost and Direct and Indirect Other Expenses. 2) On the basis of Function: The classification of costs on the basis of the various functions of a concern is known as function-wise classification. Here, there are four important functional divisions in the business organization. Viz. (a) Production Cost (b) Administration Cost (c) Selling Cost and (d) Distribution Cost. 3) On the basis of Variability: On the basis of variability with the volume of production cost is classified into Fixed Cost, Variable Cost and Semi Variable Cost. Fixed Costs are those costs which remain constant with the volume of production. Rent and rates of office and factory building are some example of fixed cost. Variable costs are those costs incurred directly with the volume of output. For example, cost of materials and wages to workers are the expenses chargeable with direct proportion to the volume of production. Semi-Variable Costs are those costs incurred partly fixed and partly variable, with the volume of production. Accordingly, it has both fixed and variable features. For example, depreciations and maintenance cost of plant and machinery. 4) On the basis of Normality: Costs are classified into normal costs and abnormal costs on the basis of normality features. Normal costs are those incurred normally within the target output or fixed plan. 5) On the basis of Controllability and Decision Making: Based on the managerial decision making and controllability the classifications are as follows: (a) Controllable Cost, (b) Uncontrollable Cost, (c) Sunk Cost, (d) Opportunity Cost, (e) Replacement Cost, (f) Conversion Cost. a) Controllable Costs: Controllable Costs are the costs which can be influenced by the action of a specified number of an undertaking. Controllable Costs incurred in a particular responsibility centre which is influenced by the action of the executive heading. For example, direct materials and indirect materials. b) Uncontrollable Costs: Uncontrollable Costs are those costs which cannot be influenced by the action of a specified number of an undertaking. In fact, no cost is controllable; it is only in relation to a particular individual that may specify a particular cost to either controllable or non-controllable. For example, rent and rates. c) Sunk cost: These are historical costs which were incurred in the past and are not relevant to the particular decision making problem being considered. While considering the replacement of a plant, the depreciated book-value of the old asset is irrelevant as the amount is a sunk cost which is to be written-off at the time of replacement. Unlike incremental or decremental costs, sunk costs are not affected by increase or decrease of volume. Examples of sunk cost include dedicated fixed assets, development cost already incurred. d) Opportunity Cost: Opportunity cost means the cost of forgoing or giving up an opportunity. It is the notional value of going without the next best use of time, effort and money. These indicate the income or potential benefits sacrificed because a certain course of action has been taken. An example of opportunity costs is the market value forgone or sacrificed when an old machine is being used. e) Replacement Cost: Such expenses may be incurred due to factors like change in method of production, an addition or alteration in the factory building, change in flow of production etc. All such expenses are treated as production overheads; when amount of such expenses is large, it may be spread over a period of time. f) Conversion Cost: Conversion costs are those costs which are incurred while converting materials into semi-finished or finished goods. It is the aggregate of direct wages, direct expenses and overhead costs of converting raw materials into finished products. Differentiate variable and fixed cost Fixed costs are costs which remain constant within a certain level of output or sales. This certain limit where fixed costs remain constant regardless of the level of activity is called relevant range. Variable costs are costs which change with a change in the level of activity. Examples include direct materials, direct labor, etc.

One-Dimensional Man

The introduction of Herbert Marcuse’s book, â€Å"One-dimensional Man,† shows us the problem that a democratic society creates. Though this book was written back in 1964, many can agree that what he says is true in today’s society. Different scenarios are also brought up to show us how things will be affected due to the advancements of technology. Marcuse wants us to see what will happen and what has happened to society through a series of changes. Marcuse talked a lot about the necessities and luxuries of life. He called these the â€Å"true needs† and the â€Å"repressive needs. He makes it a point to show us that the changes in society cause us to think differently. Most people are beginning to mistaken the â€Å"true needs† with the â€Å"repressive needs. † Instead of actually spending their money on things they need for themselves or their families, they splurge. Marcuse believes this to be due to the advancement of technology. Marcuse also believes that the media, in all its forms, influence what the individual believes to be â€Å"true needs. † Through social media, we are convinced that we must have something, therefore we go out and get what we want.All of the advertisements that you see are purposely developed so that you would want the product. With this the individual is blinded by what is truly needed and what is wanted. Marcuse compares this kind of behavior to a disease. He states that the individual indulges on these products so that they may satisfy their happiness within. But Marcuse says that this happiness is not a condition which has to be maintained (5). Instead, it is temporary and will go away once this person has satisfied their need. Then what is left is euphoria in unhappiness (5).Marcuse believes that an individual indulges in these â€Å"repressive needs† because they want equality. Buying these products give them a sense of equality to others in society. Marcuse believes tha t they are blinded by these products so much that they don’t even care about â€Å"true needs† anymore. They would rather have a big screen TV like their boss has rather than having health insurance. Marcuse says â€Å"Mass production and mass distribution claim the entire individual, and industrial psychology has long since ceased to be confined to the factory† (10).Anything that can be found within a household is mass produced. Most of which are machines that are used to help make everyday life easier. Society has become so accustom to having certain gadgets around that some people don’t even know how to perform simple tasks. Being able to mass produce an item is good in itself, but being able to distribute that product to an entire nation or even several nations is something else. This creates the potential of having the entire world depending on one company for a particular product. Technology has become just another part of everyone’s life.Tec hnology is constantly advancing and new products are always invented to help the daily routine of life, easier. Some examples of how certain inventions make life easier are the car, computer and internet. Being able to travel twice the distance in half the time makes the task of going to work and tending to your family much easier. Being able to send someone a document with a click of the mouse or even keeping in touch with family or friends that live far away. Since the workforce mainly consists of machines creating everything, people have begun to find things to do with their free time.Having actual free time to do things with the family or friends or even oneself is starting to become common according to Marcuse. Marcuse clearly states that technology has taken over the entire work force. Marcuse states â€Å"The very structure of human existence would be altered; the individual would be liberated from the work world’s†¦. † (2). By this he wants us to realize t hat humans will soon be replaced by technology. There would be no need for people to be around factories anymore because everything can be done much faster and much more efficient with machines.This is the type of society that we are heading into. This is all due to the people that own these factories. The uses of machines have proven to be much more efficient and much more productive. Humans just can’t perform certain tasks that are needed to mass produce products. They just may be able to but the quality of the work wouldn’t compare to that of a machine’s work. â€Å"Today political power asserts itself through its power over machine process and over the technical organization†¦. † (3). We can all agree that this statement still holds true today.The executive decisions, which are made in today’s society, are all made by those who own major companies or corporations. They have the most power because they have the most money. Their factories a re mainly machines that create their product. Though they still require some manpower to run their system, they mainly rely on their machines, These select few people utilize the full potential use of technical, scientific and mechanical productivity (3). Marcuse makes a good point in saying â€Å"†¦ economic freedom would mean freedom from the economy†¦Ã¢â‚¬â„¢ (4).Those who have utilized the full potential of machines have already found their freedom from the economy. Everyone else is struggling to earn freedom from the economy, making just enough money to support their families. We know these people as the middle class or the working class. Their jobs give them a decent amount of money to live comfortable lives. In this passage, Marcuse talks about how liberty can become something that is used for controlling the masses. The ability to be able to elect ones leader doesn’t necessarily mean that the government isn’t in control.The government is always going to have some type of influence on everything that is put on the media. For example, if the government isn’t influencing the media, why is there censorship? The truth is that the government controls most aspects of our life. Marcuse argues that the right of freedom of speech is good yet it also creates the right for censorship. Marcuse believes that the purpose of technology is to help us live easier lives. Assisting us with jobs that humans just don’t have the strength for should be the true intention of a machine. A machine is supposed to take the job of several humans.It is there to perform tasks that a normal human does not have the strength or ability to do. Instead, the capitalist government is using machines to increase their power and wealth. Instead of using technology advances as something to help the people, they instead use it to oppress the people with weapons and propaganda. Being able to determine one’s leader may sound like an ideal but Marcuse m ay disagree. He states that this system is not perfect. The idea of having a free trade system allows the government to publish people with trade sanctions.Going between countries would require one to meet all of these rules in order to proceed with the transaction. Sanctions for one country may be completely different from a neighboring country. These sanctions would not have existed before but must still be enforced. Even though this was written back in the mid 1960s, we can see that some of what Marcuse says is true in today’s society. Though the change process was gradual, there were still significant changes that we can see. The advancement in technology is one key factor in the gradual changes that we see.Everything has technology integrated into it in one way or another. Because of this people began to lose sight of what was truly needed in life to survive and live. Instead, people have been blinded by things that they want and work until they have actually gotten what they wanted. They have fed their hunger for materialistic things for the time being but will soon realize that this hunger will eventually fade away. The government also influences the society through media. Censorship is a method in which the government influences the media.

The Impact of Advertising on Perceived Gender Roles

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The present branding culture is apparent and it is close to impossible to not have an opinion regarding this matter, which incidentally causes discussion and debate, which in turn furthers the word of mouth usage of brands. The impact of advertising on perceived gender roles is quite evident, and with plenty of consequences, some of which we might not yet have experienced the full effect of. It is important to remember that with a socialized consumer identity, the choices we make are not individual ones, but is initiated by the manipulative skills of â€Å"others†. The high extent of advertisement we are put through on a daily basis makes it very difficult to reflect upon the idea of choices and individualShow MoreRelatedImpact Of Media On Gender And The Media1303 Words   |  6 PagesImpact of Media on Gender Annie Hernandez Keiser University August 13, 2014 Abstract Boys and girls have for long spans of time considered themselves to be different. 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