Business Consulting: Issues Faced by McDonald's

This report discusses the issues faced by McDonald's in the context of business consulting, including bad food image perspective, lack of flexibility, slow inaccurate service, and price sensitivity.

Business consulting

Table of Contents
Contents
INTRODUCTION...........................................................................................................................1
Problem faced by the Company.......................................................................................................1
2. Areas of importance such as competitors, target market customer and influencing factor from
the external environment..................................................................................................................3
3. Top three issues McDonald’s facing............................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
A business consulting is a process of providing the best solutions about what course of
action should be taken into consideration while adopting any kind of business. (Sokol, 2020)
Business consulting leads to the formation of professional decision by the business consultant
who works for the client is that business person from different particular areas. Business
consultant are of different types who works on the functions of management by utilizing their
decision about the particular business is that strategy consulting, financial consulting, sale
consulting, marketing consulting, brand consulting, so basically the motive of the business
consulting is to effectively helps the company to meets their goals and in improving their
performance. This below report is based on the company McDonald’s an American fast food
company which deals in a 37,855 restaurants worldwide ,this report is based on the study in
which what are the problem facing by the McDonald's and there critical areas where they are
having importance in respect of competitors, target customer market.
Problem faced by the Company
This report is based on the company McDonald's an American fast food company,
founded in 1940 they are dealing in their products of fast foods which relates with speciality
burgers having a strong brand image in other countries as well, this company basically works on
38700 restaurants across the countries, dealing in 2,10000 employees. Its the world largest
restaurant chain by revenue . (Bencheva and Stoeva, 2018)They are dealing in both non-veg and
veg products according to the social cultural and taking care of the belief when we talk about this
restaurant they are the one who serves beefs in their local countries but due to religious and
belief factor in India they really don't deals in that products just for the sake of customers loyalty
and retention aspect .Again lots of competitor are continuously trying to set their mark in
accordance to compete with the brand like McDonald's, their competitors works on similar
principle of serving customer with both online and offline pattern, restaurants are trying to
compete internationally by making an appropriate plans for the strategic management and then
decides about the global perceptive approaches. So here are some of the problem which are
faced by the restaurant McDonald's is that :
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 Bad food image perspective:
Problem of bad food offerings in respect of this restaurant will be the present concern of this
restaurant because this will leads the reduction in the branding image of the organisation, to
defend the image of the restaurant, by analysing the sources from which they can evolve their
problems ,they launched a social media campaign with a view to gather the information as a
responses by their customers who are their consumers so to deal with that situation ,there is an
indulgent of business strategist who really works on their support role as a professional decision
maker by this campaign the intention of McDonalds’ to analysis the perception of customer
towards their food quality and services. (Lehmann, Saulich and Wohlgemuth, 2018)
 Lack of flexibility:
Consistency is one of the major aspect of this restaurants in respect of its operations because of
their very large organisation structure which deals in fast food industry having a large channel
with flowing revenue in across the countries consists of lack of flexible nature of McDonald’s
they cannot change their business aspects and change related with that of products and services
with the ease because it’s difficult for this restaurant to adopt these market changes bit easily due
to their large customer base and operations.
 Slow inaccurate service:
As this restaurant deals in a fast food channel because of their competitors they have work on
their servicing aspect, executive of MacDonald’s s said that introducing of too many food items
in respect to the varieties according to their customer taste and preferences leads to the slowed
down of the services and led to inaccurate orders. They agree on a point where they work for
simplified menu that highlight its most popular items but did not give specifies, restaurants
channels are based on the servicing quality as well but adopt these changes they have to work
according to the business professional decision making in respect of the operations. (Brennan,
Canning and McDowell, 2020)
 Price sensitivity:
McDonald’s having their prices on their servicing offerings is relatively high as
compared to that of the competitors they have to manage the pricing strategy in that way
so as to drive their customers as well for purchasing their product without any second
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option in mind due to this factor of competitors this restaurant generally works on their
food quality and menu simplification due to that prices are high in this food restaurants.
2. Areas of importance such as competitors, target market customer and
influencing factor from the external environment
McDonald’s works on the principle of providing the quality product and services in
respect to maintain their customer base and that of market goodwill by making huge profits in
the formation of revenue from different countries. (Jordan, 2020)Basically this restaurant chain
having their proper strategic team which works on the departments of operations and activities
needed in the markets to perform with a view to cater the customers by grabbing their attentions
towards the new launch offerings by the McDonald’s through utilizing their potential market
which relates with the surveys team who are continuously engage in the activity to provide
growth in the organisation by taking the crucial decisions for the advancement of the fast food
industry through making changes according to the planning structure which is based on the
trends and taste of the customer by attracting them through better offerings as compared to that
of competitors. Factor are external for these fast food industry mainly because of the working
culture and environment through which organisation will leads to adopt and can be flexible at the
same time by enhancing the processes through adaption of these forces likewise any other food
industry they are also engage in the same structure of distributing but due to its global business
scenario they are largely based on their customers experience about their performances so some
of the importance in the context of competitors, target market customers is that
 Competitors:
Due to their highly engaged activities in the global international market they deals large number
of competitors in respect to its food industry due to their inflexible nature they are also tends to
at risk because competitors will try to outclass them in the segment of marketing approach
regarding the promotion of any new offerings and discount benefits on some particular meals
from them, its important for the McDonald’s to take care in mind about their competitors
strategies by adding the quality value in the restaurant. (Barros, M. and Rüling, 2019)
 Target market customers:
In the dealing of global market there are lots of strategies formation by this fast food industry by
making changes in their product in respect of their customer from different countries is that
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while operating their service offerings McDonald’s takes acer about the forces which will impact
them in future so as to specify the different target market is that age groups and on the basis of
that they prepare their offerings by analysing the needs and demands of the markets scenario by
approaching to the particular segment. (Adesi, Owusu-Manu and Murphy, 2018)
Pest analysis plays an important role in the context of MacDonald’s due to the external
forces they have to change their strategies accordingly but due to their expand channels in
different country too, it’s quite difficult for this fast-food industry to initiate in frequent
manner as they are large in channels it’s a time consuming process for them because of
the business nature, some of the factor taken into consideration while moving towards the
objectives is that political factor which relates with the government interventions
regarding this fast food industry to its socio-cultural factors .
3. Top three issues McDonald’s facing
From the above studies its has been analysed is that McDonalds’ are facing issues in
respect of their three main factor is that pricing sensitivity, lack of flexibility and
inaccurate service decisions ,if we talk about the first perspective in which pricing of the
product is higher as compare to their competitors market as they are highly indulge in the
high revenue instead of that they are dealing in the higher pricing cause they adopt the
brand image through which they gets the outcomes in the form of profitability by making
the changes according to the customers support on their responses regarding the
particular product offerings an discount. Lack of flexibility is the main reason this
industry is facing competitions through its competitors because of the fixed working
culture and time consuming flexibility other substitute industry are making their turn
through developing the large scope for advertising and perform on the large scale by
making the changes in their industry through marketing scenario in respect of the food
industry and customer base also by adopting the models which provides them growth in
accordance to develop the skills and knowledge regarding that particular industry
market .inaccurate service decision is a most common issue that McDonald’s facing right
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now due to their changes in the fast food and lack of noticing to their customers about
that product offerings .
CONCLUSION
Its has been concluded from the above report is that while doing any global business there is a
need of the industry to look into their issues and problems through determining the external
forces and by minimizing the risk of competitors threats by adopting the strategies in the process
of decision making regarding the global market this aspect of the industry will provide
growth ,business consulting is necessary in the context of expanding the business or adopting
some new policies regarding that approach thus to achieve the important goals and objectives
which are considered under the particular market, this will leads to the proficiency in the
revenue.
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REFERENCES
Books and Journals
Adesi, M., Owusu-Manu, D.G. and Murphy, R., 2018. Strategic competences for pricing quantity
surveying consultancy services. Engineering, Construction and Architectural Management.
Barros, M. and Rüling, C.C., 2019. Business media. In The Oxford Handbook of Management
Ideas (pp. 194-215). Oxford: Oxford University Press.
Bencheva, N. and Stoeva, T., 2018. Key Skills and Competences for Social Business Advisors:
Views from Experts. International Journal of Organizational Leadership. 7. pp.413-425.
Brennan, R., Canning, L. and McDowell, R., 2020. Business-to-business marketing. SAGE
Publications Limited.
Draijer, C., 2020. Best practices of business simulation with SAP R/3. Journal of Information
Systems Education. 15(3). p.5.
Jordan, D. ed., 2020. The Business of Heritage: Global Archaeology and International
Consultancy. Cambridge Scholars Publishing.
Lehmann, T., Saulich, C. and Wohlgemuth, V., 2018, May. Transnational student consultancy–
An integrated approach to business students’ learning. In Fourth International Conference on
Higher Education Advances.
Meijer, F., Straub, A. and Mlecnik, E., 2018. Consultancy centres and pop-ups as local authority
policy instruments to stimulate adoption of energy efficiency by
homeowners. Sustainability. 10(8). p.2734.
Sokol, M.B., 2020. Mindful design of the sole-practitioner consultancy. Consulting Psychology
Journal: Practice and Research. 72(1). p.27.
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