McDonald's Business Plan Solution Report

This report examines McDonald's business plan, analyzing its external and internal environments, marketing strategies, and customer service experience. It highlights the importance of technological advancements in a globalized world and provides recommendations for McDonald's to leverage technology for increased efficiency and customer satisfaction in Azerbaijan.

BUSINESS PLAN
SOLUTION REPORT

TABLE OF CONTENTS
1. INTRODUCTION.......................................................................................................................3
2. ANALYSIS ON ELEMENTS OF EXTERNAL BUSINESS ENVIRONMENT OF
COMPANY......................................................................................................................................4
PESTLE analysis of McDonald’s...............................................................................................4
Competition, direct and indirect competitors, strengths and weaknesses in comparison to
Woodpecker restaurant, expectation of new entrants and existing barriers................................5
Analysis of customers, their behaviour, needs and also decision making process for choosing
a restaurant, their expectations and the way they become excited in a restaurant......................6
3. EXPLANATION ON ELEMENTS OF INTERNAL BUSINESS ENVIRONMENT OF
COMPANY......................................................................................................................................7
Suggestions to improve weaknesses and the way to exploit strengths.......................................8
Business strategies:.....................................................................................................................8
Suggestion for appropriate organisational structure according to business operation of
McDonald's:..............................................................................................................................11
Comment on commitment for competence in McDonald's.......................................................13
Comment on management style................................................................................................14
4. MARKETING STRATEGY......................................................................................................15
Marketing mix...........................................................................................................................16
5. Customer service experience.................................................................................................19
6. ANALYSIS OF SUGGESTED SOLUTION AND RECOMMENDATIONS.........................20
REFERENCES..............................................................................................................................23

TOPIC
To assess the impact of technological advancements on business performance in
globalised world: A study on McDonald's restaurant
1. INTRODUCTION
In this report, discussion will be given on McDonald's restaurant which is a multinational
corporation having its franchises worldwide. The organisation is operating in fast food chain
where a variety of food products is offered to customers of business market. This company is
known for the largest fast food restaurant in global world (Duggal and Alexander, 2018). Firstly,
with the establishment of company, their main motive was just to provide effective hamburgers
in market of America. Company has millions of employees worldwide and therefore it is known
for having effective human resource management. It has many sound financial strategies for
doing effective business operations in worldwide market.
According to its financial reports, for achieving success, company is moving fast with the
innovative technologies for operating effective business operations. With the continuous
innovation, restaurant is creating new ways to serve the best possible services to customers of
business market. McDonald's also has effective customer relationship management strategies for
building potential relationship with customers.
They have effective strategies for customer relationship management such as happy
hours, combo meals, birthday treats, etc. For its point of sale, company is using NewPOS system
which helps them in managing the supply chain, staff’s productivity and speeding up customer
services in organisation. Other software by which company is able to run its large supply chain is
by NP6 Features. This is the touch screen software which mainly uses pictures of meals on
screens so that customers will recognise menu easily (Selvaraj and Harnett, 2018). Main concern
for McDonald's in doing business operation is regarding changing consumer taste and to adopt
regular new technology of market which require huge cost to invest. In Azerbaijan, main
problems which multinational companies are facing is with bureaucracy by customers in the
marketplace and also impact of technological advancement on business performance in
globalised world.
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2. ANALYSIS ON ELEMENTS OF EXTERNAL BUSINESS
ENVIRONMENT OF COMPANY
To find factors which are affecting business operations of company in marketplace are as
follows:
PESTLE analysis of McDonald’s
McDonald's is a famous leading restaurant across the world. There are some negative
effects with overall affecting its business operations. To determine its factors, pestle analysis of
company is as follows-
Political factors: Main problem which company faces is with the government policies of
particular countries. Opportunities which company has with this factor is regarding high stability
of politics, political support for globalisation. Cultural changes are the biggest threat for
company which overall influencing its business operations. But the threat which is affecting
business operations is regarding political pressure for paying higher wages to workers of
organisation. Threat is because cost goes against cost minimisation essentials of company.
Economic factors: Company has significant pressure with economic changes in countries
which overall affecting revenues of the company. Opportunities which generated with these
changes for company is by decreasing unemployment in developed counties and growth in
developing countries (Arlidge and France, 2018). Threat which is impacting its business
operations is with inflation in some countries. US firms are majorly affecting with Bureaucracy
in market of Eastern European countries.
Social factors: This is the factor influencing customers of McDonald's regarding their
perception and preferences. With healthy lifestyle change and with cultural diversity, an
opportunity has been created to achieve growth of company. But the continuous changing
demand of customers negatively affecting business operations of company.
Technological factors: To achieve success of company, McDonald's needs to address
technological trend in its business operations. Therefore, its recent changes and innovation helps
company in gaining competitive advantage in business market. Threat for company is regarding
continuous technological change in this digital world which require huge cost for its
development.
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Environmental factors: This is an important concern for organisation for achieving its
success in business market. To achieve sustainability, McDonald's has to improve its operational
efficiency so that effective contribution will be provided to environment.
Legal factors: These are the factors which usually impacts retail firms. Main threat for
McDonald's with this factor is regarding Tax law reform which leads to higher tax reforms. To
improve its quality of services, company has an opportunity to follow food safety regulation in
countries (Düking, Holmberg and Sperlich, 2018).
Competition, direct and indirect competitors, strengths and weaknesses in comparison to
Woodpecker restaurant, expectation of new entrants and existing barriers
With comparison to Woodpecker restaurant, overall business operations of McDonald's
will not affect because it has a loyal customer support across the world. This is the organisation
which is outperforming the market from last few years in international market. Its strength and
weaknesses are as follows: Strengths: Recently, developed items which overall provides a success to company are
coffees, smoothies and Angus burgers which have attracted a lot customers in
organisation. Its performance and profitability do not get affected in recession period
because of strong market strategies which helps company in maintaining its performance
in that period as well. Its major strength is that company has diversified business in all
around the world and because of that, it does not have to rely on one currency or
economy.
 Weaknesses: For achieving growth of company in developed countries, it has become a
difficult problem to find prime location which helps organisation in attracting customers.
Different cultural changes across the world majorly affect business operations which is a
major weakness for company. Another weakness of company is regarding its dividend
growth rate (Alakavuklar and Alamgir, 2018).
As the business operations of McDonald's are worldwide, because of that reason, tourists
majorly attract with woodpecker restaurants because they want to try something new in market.
Woodpecker restaurant is the one which has the best capabilities of serving food and to offer the
best quality of services to customers which affect business operations of McDonald's. Both these
organisations have different direct and indirect competitors. Direct competitors of McDonald's
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are Burger King, KFC etc. and for Woodpecker, direct competitors are the restaurants which
situated in cities of Azerbaijan.
Both companies offer different food services and facilities by which they will not be able
to attract customers of each other. Both companies have different food services and offering
because of that performance will not be affected with each other operations. But McDonald's
face some indirect competition with small local and other food restaurants which are its indirect
competitors that are not providing same valuable services as McDonald's but are fulfilling
consumer needs. It is because of the restaurant which avails same products and services to
customers with its different business operations.
If any new competitor enters into market then this will affect McDonald's business
operations because in European market, difficult business climate is regarding bureaucracy by
other firms towards customers. This bureaucracy serves as a barrier for new competitors for
entering in the marketplace of countries like Azerbaijan (Banks, 2018).
Analysis of customers, their behaviour, needs and also decision making process for choosing a
restaurant, their expectations and the way they become excited in a restaurant
To improve the relationship of customers with its clients, there are various strategies and
policies develop by McDonald's organisation. To analyse the needs and behaviour of customer,
company has an effective customer relationship model. To analyse the new potential customers,
these effective relationship of company with customers helps in increasing profitability of
company. McDonald's is known for largest advertiser across nation therefore, its target
customers are all families, children and mainly youth which mainly spend time in restaurant for
their enjoyment.
McDonald's have effective decision making process by which various effective strategies
get developed to influence customers regarding products and services of organisation. Through
customer decision-making process, McDonald's marketing managers identified and tracking
factors on which customer choose their preferences of choice. By problem recognition, managers
will able to identify exact needs of customers. By searching information which required to fulfil
needs of customer, McDonald's will able to improve its strategies for attracting customers in
organisation. This method helps customers in developing decision for purchasing products and
services of restaurant in accordance with their needs and wants.
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To know the needs and behaviour of customers, various methods are adopted by
marketing managers of organisation. Factors which influence consumer behaviour are cultural
factor, social factor, personal factor and psychological factor (Vijayalakshmi, 2018). To identify
the customer’s needs, questionnaire is a way which helps to analyse needs and wants.
Questionnaire is the process which directly analyse customer’s needs. This is the research which
directly communicates to customers where they are asked to fill the form. This will help
company to consider improvement in accordance with the customers of business market.
In the market of bureaucracy, customer relationship is the model which is established by
company to promote its products and services among customers easily. With this model,
company will be able to enhance better customer services and also, it will able to discover new
customers in organisation. To attract customers and make them excited about new products of
company, this model helps in promoting services among them effectively. Effective advertising
policies also help organisation in promoting new products and services among customers which
develops excitement among them and influence them to try goods and services.
3. EXPLANATION ON ELEMENTS OF INTERNAL BUSINESS
ENVIRONMENT OF COMPANY
Strengths Weaknesses Strong brand image: it is the most
recognizable brands across the world.
Company is consistent with its taste of
food and also providing the best
cultural diversity of food. Diversified income: with its business
operations worldwide, company has an
effective sales volumes and earning
which makes them stronger in business
market. Strong product offering: Company has
strong product offering by which its
income does not affect in a period of
 Unhealthy food products: Sometimes
with its good image in market, there are
some negative perception of company
regarding unhealthy food products.
 High rate of employee turnover: There
is a high employee turnover in
organisation. It has low skilled and low
paying employees which overall leads
to lower performance of organisation
(Li and Yang, 2018).
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recession.
With its strength, McDonald's will able to enhance its growth in business market. With
the strong brand image, company will able to increase its possible value of company. With its
good brand image, company also will able to motivate and direct employee in getting effective
business operations. Motivates employees of company will provide the best possible services to
customers which helps in satisfying needs and wants of company.
Effective brand image helps company to explore its business in areas where they want to
set up business. It also helps company in building credibility and equity among loyal customers
of organisation. With strong product offering, McDonald's will easily able to capture different
cultures of countries which helps them in increasing its overall performance and profitability in
business market.
Suggestions to improve weaknesses and the way to exploit strengths
To overcome with the weaknesses of the company, effective marketing research and
primary data of collection like interview, questionnaire and observation will majorly help to
overcome with weakness. These methods will help in solving negative perception of brand
among customers of business market.
To overcome with high employment turnover, human resource management of company
will have to develop effective strategies by which right candidate will get hired for completing
the specific projects of company (Vignjević-Đorđević and Plojović, 2016). To hire the right and
knowledgeable candidate, management has to provide effective compensation and benefits
which satisfy needs and expectation of employees so that productivity of company get increases.
Business strategies:
Mission and vision of company:
There is an effective mission and vision of company which helps them in attracting
customers in its organisation. McDonald's adjusts its mission and vision statement in accordance
with changes across the global food service industry. Mission and vision statement is developed
by proper strategic planning and tools so that growth of company will get generated in business
market.
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Mission of company sets related purpose and activities of business so that employees
work in accordance with company's strategies. To develop vision statement of company, long
term goals of the company is considered by its owners. Therefore, a corporate vision statement
of company sets to achieve long term success of company. Therefore, its mission and vision
statements are as follows- Mission- Its brand mission is to become a favourite place of customers so that a way is
provided to customer to eat and drink (Mission & Values, 2018). Their worldwide
operations are aligned around global strategy which is the centre on exceptional customer
experience. To target the customers of business market, management of company will
consider preferences of business market so that their needs and wants gets satisfied.
 Vision- Its vision is to gain the best quick service restaurant experience. McDonald's
wants to become the world’s best quick service restaurant experience. Best here means
providing outstanding quality, service, cleanliness and value by which customer’s smile
will be achieved with restaurant services (Meyer, 2018). Placing customers at core value
and committed towards their services with striving to continuous development also come
under the vision statement of McDonald's.
Aim of company is developed in accordance with improvements which needs to include
for operating functions effectively. Factors which considered for achieving effective growth is
product development, marketing, franchising and by developing effective human resource
management.
Values that guide the behaviour and action of management and personnel
In getting the effective growth of company, there must be a proper rules and code of
conduct in which company operates. This code of conduct and ethical practices in company will
also motivate employees towards their working. Therefore, proper values of work culture overall
helps in developing effective growth of company in business market. Belief considered as the
behaviour therefore, leaders of McDonald's organisation will have to shape behaviour and beliefs
of employees. Values of individuals of organisation plays huge role for developing effective
organisational working culture (Why is business ethics is important, 2018).
Values in work culture is the most important process developed by the leaders of
organisation. By developing effective values in workplace, leaders will able to know needs and
wants of individuals from organisation. Therefore, at individual level, values means concepts
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such as caring, empathy, and trust among each other and at organisational level, values includes
accountability, customer service and safety.
For conducting business operations of organisation smoothly, there must be proper
ethical practices of work in organisation. By developing valuable ethical practices, McDonald's
will be able to provide the best possible services to its customers which overall helps them in
improving business performance and profitability among its competitors.
For safeguarding assets of company, there must be a proper and effective ethical practices
in organisation. With these practices employees also work in proper ethical behaviour where they
respect each other and share their views to complete the specific projects of organisation.
Therefore, leader’s role is very important in developing effective ethical practices and to
influence employees to work with proper code of conduct. Proper values in work culture helps
manager in following ways:
Productivity and team work: To increase productivity and to develop team work, ethics at
workplace is the most important thing which needs to be developed by managers of organisation
(Cameron and Green, 2015). With the ethical practices, managers will able to align values and
will also able to encourage employees regarding for generating better productivity in business
market.
Public image: With the proper ethical values, managers will able to earn good image of
company among customers of society. McDonald's is very much concerned with proper ethical
values at workplace. Therefore, main motive of company is to reduce its wastage to operate with
proper integrity. This practices of company help them in developing good image of company in
business market.
Decision-making: When there is a proper value of doing work in organisation, this will
create a positive work culture where effective decision get develop for increasing performance of
company (Szczepańska-Woszczyna, 2015). A strong ethical culture guides managers in reducing
conflicts at workplace and to develop positive work culture where all employee work with
motivation in meeting needs and goals of organisation.
Respect: To create positive culture in organisation, leaders must have to develop effective
practises where mutual respect is provided to each and every employees. Views and shares of
employees in decision-making process of company needs to given equal importance so that they
will also feel motivated for completing specific projects of organisation.
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Diversity: by valuing diversity of stakeholders and employees, management of
McDonald's entity will able to influence their support in developing new operational strategies at
marketplace. This support will also help organisation, in developing new technological
innovation for operating business functions.
Suggestion for appropriate organisational structure according to business operation of
McDonald's:
For handling global operations, it is necessary for every organisation to develop effective
business structure. Organisation structure is a system which define overall system of company
for coordinating components towards achievement of business goals. For developing smooth
business operations at global level, there must be an effective organisational structure so that
effective strategic decisions will get developed for achieving growth of company.
Timely new products will have to be developed by McDonald's according to current market
trends and emerging market issues.
Currently company's structure is followed as:
At top level
(Chief executive officer)
It is followed by
(Chief operating officer)
(Chief people officer)
(Chief financial officer)
Again these departments are broken into corporate affairs, marketing, human resources,
national operations, national operations, regional managers, finance, information and strategic
planning. With that other functional department which currently followed by McDonald's are
legal, customer services, franchising, safety, security and licensing, property and construction,
supply chain and restaurant services. Appointment of general manager helps them in leading all
the business functions of McDonald's. Department manager will be in charge with three heads
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departments, people, guest service, and for kitchen. Therefore, all business function of store will
be in hands of DM also if it is a responsibility of general manager (Elsmore, 2017).
Shift managers are the one which supervise each and every function of department. Their
work is to ensure that business practises runs smoothly during their shift time so that
performance of company gets increases. Crew trainer of McDonald's will be accountable and
will have to respond to divisional manager of company, so that effective training program will
get conducted for employees. For smooth running of store, crew member will be responsible and
without their permission store could not function. So by analysing organisational structure of
McDonald's, it will be suggested that same structure will get continued by company and
strategies will get developed in accordance with needs.
Therefore, to operate at global level some suggestions are as follows-
Design of services: for achieving growth of business at global level, goal of McDonald's
needs to in strategic decision area. With this decision, company will able to provide range of
products which is at affordable products (Guiso, Sapienza and Zingales, 2015). This prices of
products must be developed with the expectation of customers so that effective business
operations smoothly get developed at worldwide. Services must be developed in accordance with
customer needs so that expectations will get fulfilled. Such services include fast food delivery
and in a appropriate manner.
Kitchen: operating at global level, management must have to develop appropriate
strategies where clean and hygienic food will be provided to employees. With appropriate quality
management and with process capacity design, valuable services will be provided to customers.
McDonald's have strategy where they have transparent food processing system where customer
will able to see techniques of preparing food. Explanation of such are as follows-
Quality Management: company must have to develop aim which maximise product
quality within its constraints. This will be developed by limiting cost and price of products. At
global level, company must have to follow production line method, with that product quality will
consistently be managed and best services will get offered to customers. This will help in
maintaining clean and hygienic food processing equipments.
Process and capacity design: for developing smooth business functions at global level,
operation management of company needs to focus on maintaining adequate capacity and
efficiency of process by which demand will get fulfilled. For that proper organisational strategies
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will need to develop which ensure availability of funds and resources for its production process.
Therefore, to support company's strategies, process and capacity design must be centred for cost
minimisation (Hatch, 2018).
Purchase department- for operating at global level, there must be an appropriate strategy
where customers will able to purchase products easily. Effective strategies will get developed
with the help of this department so that profit will get maximised. Goal of McDonald's
operations management is to focus on minimising inventory costs so that support will get
established for restaurant operations at global level. Investment will need to develop on tools and
equipment which provide best services and will be useful for long term objectivity of company.
Therefore, with this organisational struture McDonald's will able to continue its business
operations at global level.
Comment on commitment for competence in McDonald's
McDonald's have made a proper commitment with their employees which is in the form
of five people principles. These principles adopted to reflect values and culture of organisation.
Such commitment of principle are as follows-
Employees:
Employees of McDonald's are skilled and have gone through proper training and
development programs for learning work of organisations. They welcome every customer with a
smile in face and will listen their complaints in a very appropriate way so that customer did not
feel any hesitation for communicating their needs and wants (Zhu, Habisch and Thøgersen,
2018).
managers:
Manager of McDonald's also play their role with effective management style. They will
develop appropriate strategies among employees so that clear understanding of vision will be
developed in their minds. To handle business operations at global level management have to play
effective role where with appropriate market research strategies of company get developed.
Chiefs:
Chiefs of McDonald's are very creative. They have appropriate knowledge and skills for
doing innovation in food preparation. For restaurant business, chiefs plays an important role for
attracting customers in business market. Therefore, McDonald's chiefs are appointed in a very
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appropriate manner so that same taste will provide to customers at global level (Durkheim,
2018).
customers:
To achieve growth at global level, it is necessary that company have strong customer
loyalty. Therefore, management of company have developed effective strategies like happy
hours, combo meals for attracting customers in organisation. With this strategy company is able
to manage loyalty from customer in all over the store of McD.
leaders:
Leaders of McDonald's organisation also plays an effective role. For completing specific
projects of organisation, they applied appropriate strategies for managing needs to employees.
Timely training and development program will be conducted by leaders so that employees get
motivated and are encouraged for taking new challenges of company. To maintain quality of
work, leaders always encouraged its employees for developing best work as possible.
These are the five competence commitment developed by McDonald's organisation so that
effective work culture will get developed so that performance and profitability of company get
increases (Lioy, Del Valle and Gottlieb, 2019).
Comment on management style
For developing positive work culture, management style plays an important role in
organisation. It is completely depended upon corporate culture (6 Types of Management Styles,
2016). Managers who try to bully employees are not very effective and with that work overall
work of organisation get affected. A good management is the one who will able to think and
develop positive creativity so that clear vision of company will get developed for solving
particular problems. Managers also have to remain calm during heavy work load so that clear
decision will get developed.
There are two management style that is authoritative or democratic. Under authoritative
leadership style, power to take decision is only under control of one man. Centralization of
power exists on this style. Therefore, all the decision regarding policies and procedures are taken
by only leader himself. Democratic leadership style is the one in which there is a considerable
amount of participation by the employee in decision-making process of company (Chang, 2015).
In this style of management, opinion and suggestions of employees given a equal importance.
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Therefore, to conduct business at global level, McDonald's organisation has to follow
democratic leadership style. This is the type of style in which participation of each and every
employee will get considered. Following this management style will help management to
encourage employee for taking responsibility in decision-making process of company. If sudden
changing situation arise frequently in organisation, democratic leadership helps in offering
flexibility so that better working conditions get developed for meeting business goals. This will
help management in bringing best experience with the best professional team (LIN and CHEN,
2017).
Suggestion on management of people in restaurant to satisfy customers:
With the use of democratic style, management of McDonald's will able to develop effective and
efficient working in order to satisfy needs of customers. It actively involves employee in
decision-making process of company which motivates employees. Importance of this style for
management in McDonald's is as follows-
 Cooperation- with this style of leadership, management will able to develop effective
cooperation among employees in its production process. With this style management will
able to invite workers where discussion on factors will get influenced regarding particular
decision of company. With this involvement better understanding get developed in
employees and they will work efficiently for achievement of business needs (Wheelen
and et.al., 2017).
 Creativity- democratic leadership style helps management in developing creativity and
innovation at workplace. Involvement of workers for developing innovation helps
management in getting ideas in accordance with the customer which helps in satisfying
customer needs.
 Effective training and development- To manage people in organisation, management
must have developed effective training and development activities by which employees
get encourages for achieving business goals. With this style, management of McDonald's
will able to set workable goals with help of SMART goals that is specific, measurable,
achievable, relevant and timely. This process will help in involving open communication
between managers and employee so that best decision will get developed with each other
determination (Maylor, Blackmon and Huemann, 2016)
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Therefore, with this style of management, McDonald's managers will able to develop effective
and efficient staff who are ready for taking organisational challenges and will provide their best
efforts for sanctifying needs of customers. With this style of management, employee
participation will get higher and best work get development for the achievement of
organisational objectives.
4. MARKETING STRATEGY
Target market means to choose specific groups which are identified as result of selling
specific products of organisation. (5 lessons To Learn From McDonald's Marketing Strategy,
2018). Therefore, main target customers of McDonald's mainly includes young children and their
parents and also teenagers. McDonald's should have to target young children and their parents
because children easily get manipulated with effective and creative offering. Youth is also
considered as their target market because this is the group which mainly likes to spend their
quality time with friends. Therefore, company invests for the development of premises for
providing best fun environment to youth generation.
Generally, it is combination of demographic, psychographic and geographic variables for
segmenting in market along with consideration of altering preferences and tastes (Easterby-
Smith, Thorpe and Jackson, 2015). The consumption pattern has been changed along with
increase in income level and buying behaviour. As McDonald has initiated with differentiated
targeting strategy for catering customer with evolving needs. It has evolutionised with
application of product based positioning with application of strategy of value based positioning.
The targeting customers of McDonald's are on basis of growth with context of demographic
variables and geographic reach for purpose of leveraging potential of organization. The
organization has targeted especially the young generation so it is designed in cafe format along
with offering of counter service or drive with application of service and unique products (Urabe,
Child and Kagono, 2018). There will be introduction of innovative products with use of
technological up-gradation as in youth technology is one of the popular trend and it will help in
attaining competitive advantage in the food industry.
Marketing mix
Product: With reference to 4P, product is replicated as fundamental determinant of the
brand and corporate image of McDonald (Meyer, 2018). On the primary aspect, business unit is
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known for its burgers. Conversely, business has expanded on gradual aspect with reference to
marketing mix. The intensive growth and generic strategy will influence the product line as it is
considered in special element of marketing mix. For diversifying its product line, business unit
has satisfied market demand along with improvement in revenues and business spread risk.
While evaluating risk, very diverse product mix will reduce the dependency of company on any
single market segments. Usually, this element of marketing mix reflects about innovation of
business unit with context of new product which will attract more consumers and stability of
business is improved (Hansen, 2018).
It lays special focus for developing menu as per needs of its consumers. Generally, it is
established through market research and conversely, customer's needs changes over time. With
context of accomplishing these alterations, there is innovation of new products and phased out
with old ones along with continuation. Care is undertaken not for adverse impact on sales of
choice through introducing any new choice and cannibalise sales through trade off or existing
one. It is in knowledge of McDonald;s about items on menu which will directly vary in
popularity (Iqbal, Anwar and Haider, 2015). The product mix of McDonald has its product lines
like Chicken and fish, snacks and sides, deserts and shakes, Salads, beverages, McCafe and
breakfast. The organization will adapt its menu on global basis for suiting regional tastes and
menu has been revamped on regular basis for accomplishing alterations in needs and taste of
customer. There will be introduction of new product as French fries with Mexican salsa and
cheese dips and order will be placed through tablet so it will lead to accuracy and accountable at
same time. Furthermore, it will be also engaged in selling juices, hot chocolates and adoption of
product according to local taste preference and cultural identity.
Price: The perception value of customer is considered as very important determinant of
charged price (Cunningham, Salomone and Wielgus, 2015). The consumers draw their own
mental picture about worth of product. It is referred as more than a physical item along with
psychological connotations with consumer perspective. There is presence of danger if pricing is
cheap as marketing tool where its target customers might think that quality is compromised. So
in this context, decision of price must be appropriately aware about integrity and brand. Its target
audience of McDonald is upper and middle class according to price with their products. There
are various strategies of pricing with context of products and variants such as bundle and
optional pricing.
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Optional pricing is used through organization with attempt for raising amount which
consumers spend once they initiate to purchase. Optional extras raises overall price of its
innovative product and service. In this organization, customers could purchase main item which
are shown in menu and could opt for sides or extra such as deserts or drinks with main item they
ordered. As its outcome is that consumer ends by paying for actual item which one wanted to
purchase along with add-ons. With context of bundle pricing, it is affordable and give combo
offers to its consumers for encouraging them to purchase more products (Nawaz and Khan
2016).
Place: It is an element of marketing mix as it does not say about distribution or location
point for its products. Generally, it encompasses management with range of processes which are
engaged in upbringing products to end consumer. The outlets of McDonald are spread
throughout countries which makes them accessible. Drive through and in options create product
of McDonald with huge convenience of consumers. It uses mix of Franchise outlet system along
with company owned outlets. Consumers could visit these outlets for enjoying its hamburgers
and French fires with Mexican cheese and dips or they could also order products and delivered in
their doorstep (Hansen, McDonald and Mitchell, 2017). Further, in this digital age, it will
provide option to customers for ordering products with apps of food ordering. In this open
concept design, it will imply digital ordering and offering free mobile charging and table service.
There will be ban of smoking in restaurants and maintenance of high quality standards along
with stringent hygiene norms. The food delivery of restaurant is related to self service and
customers has to order by themselves and take away facility is also present there. In the similar
aspect, there is combination of delivering and serving with the best combination which will help
in cost reduction and in well organised manner as well (McDonald and Wilson, 2016).
Promotion: McDonald has used huge money for purpose of advertising campaign as it
will imply billboards, newspapers ads, signage sponsors with multiple sporting events such as
Olympic games, FIFA world, Little league and many others. The advertisements of television are
still in category of prime form. The TV ads reflect people who are engaged in popular activities
and most interesting part that it has hardly used any wrong or negative campaign which is against
their competitors. It has very crucial role with context of marketing mix as it uses combination of
BTL, ATL along with digital channels for creating awareness and to promote its products. It
considered as very strong product portfolio which helps in attaining competitive advantage.
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It has successfully leveraged its best and strong social presence and application to engage
or interact with its consumers and for obtaining honest feedback and suggestions with context of
services and products through its consumers or target audience. In the similar aspect, it also uses
its various outlets for maximising potential for promoting its new offering along with products.
As target audience is present and young generation and they are highly associated with the latest
technology so the most appropriate tool for promoting its brand via social networking websites
and attractive billboards. Apart from this, there is presence of different scehemes for winning
price as lucky draws and scratch cards during placing any order and meal combos.
5. Customer service experience
Customer service in any restaurant is considered simple advice and assistance to give
customers. It is replicated as mix of communicating with its consumers and to give undivided
attention. If there are any guests at restaurant, then they should be comfortable and be welcomed.
The customer must be treated with lots of respect and care while giving any delicious meal so
experience will never be vanished in their mind. They should be ensured for visiting McDonald
on repetitive aspect. Customer satisfaction could impact business on significant aspect and
customers on initial aspect must abandon a brand due to rudeness of customer service and it is
considered as great reason for leaving brand comparatively slow customer service
(McDONALD, M.A.L.C.O.L.M., 2016). The parameters for measuring customer service are
stated below:
 Reservation: This is considered as first step for mapping customer service experience
which helps to solve problem of houseful or crowded place. With reference to
McDonald, it does not have facility for reservation as it helps in saving time and ensure
about location of having any delicious meal.
 Welcoming: The quality of food always matters a lot as there are multiple restaurants
which provide the best quality of food. However, to attain competitive advantage and to
be unique, customers should be given amazing experience from the moment they enter in
outlets till they leave. They should initiate by greeting their customers as they walk in
the door and to be highly respectful in title like Sir, madam and so on. It is exactly a kind
of etiquette of restaurant but is highly dependent on type of restaurant. McDonald does
not welcome their customers when they enter but as they have facility of self service so
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while taking order, customers are welcome by warming greeting to its consumers.
Henceforth, it could be loophole but they have the best process and systems which could
be present (Harrington, Ottenbacher and Fauser, 2017). McDonald has various high level
policies with context to customer service experience such as operations excellence,
service delivery, quality and hygiene.
 Sitting: The most concerned parameter is related to sitting and space of the outlet which
helps its consumers to be highly comfortable. With context of McDonald, this factor is
highly rated as it is dependent on location and spacing of outlet is in best range. It has
also adopted strategy as birthday meal as its target audience is young generation, family
and children so this place will help for celebration as well along with the best
combination for celebration and delicious meal.
 Ordering: in McDonald's organisation, ordering food delivery is long process, where in
weekends, customer have stood and wait in queue which was most irritating factor.
Ordering food must be developed digitalised or with any other strategy where customer
did not have to wait for long and they will easily able to order.
 Delivery: In the same series, the staff service is also very qualitative and well versed
with choice for obtaining things at right at initial stage. They are having very cost
effective labour and materials on which margin is dependent. As its products move so
fast, so with choice of creating small margin per product in whole things which
transforms in substantial margin by shifting of so much product. This will ensure
effective delivery of services.
 Billing: it is just like ordering of food, where billing needs to be done at the time of
ordering food which is a long process. Through digital payment system, it creates an
easy payment system (Mathur, 2017).
 Customer feedback: this is the most important factor for every business. Organisation
must have to regularly take feedbacks from customers so that strategies will get
developed for improving areas in accordance with customer. Regular feedbacks from
customer also help in developing operations with recent trends by which competitive
gain will get achieved.
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6. ANALYSIS OF SUGGESTED SOLUTION AND RECOMMENDATIONS
In this digital era, technological advancement is an important factor for every
organisation. Therefore, to target customers new and upgraded system must have to be adopted
by McDonald's organisation so that business operations at Azerbaijan will get conducted
smoothly. For changing customer preferences and to focus on technology is the important
strategy which needs to be prefer by management of organisation for improving restaurant
efficiency in globalisation world.
Technology must be used throughout company with many ways so that it help company
to perform at higher level. With use of new technologies, from service practice to stock control,
training, research, administration and for office work, new computer technologies helps in
accomplishing work in a very speedy way.
Therefore, it must be suggested to organisation for the use of technological up-gradation to
operate business operations in Azerbaijan. Some of its importance are as follows so that
company will effectively be able to provide services with better up gradation.
Increase business efficiency: conduct business operations in globalised world, it is
necessary that company have that much of capabilities and efficiency for handling its operation
around the world. Therefore, technology will be a correct option such businesses. With the use of
technologies, McDonald's will able to digitizing files which makes easy to customise documents.
This will help in recording each and every transaction and practises of company easily and
speedily . Communication is instant with emails in which information of day to day transaction
will easily get transferred to higher authority.
With the use of software programs, McDonald's will also able to improve and make data
collection and interpretation powerful. With the use of customer relationship management
software, everything related too client information will get recorded easily. This all recorded
information lastly help sales team so that they will able to manage prospects and solidify
effective relationship with client.
Artificial intelligence: operating business operation at global level will become difficult
if there is not proper strategies for conducting smooth business operations. Therefore,
McDonald's have to use technological help where they will able to personalize and improve
customer experience, use digital menus for data, trends analytics, and will interact terminals.
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Personalized and Improved customer experience: by developing mobile application of their own
company will able to provide atomisation ordering and pay for products of the company. This
will also prove beneficial for not only customer but also to company itself. They will able to
analyse when customer using app, they will get to know customer intelligence in which when
customer go to restaurant will get analysed. By this information, management will able to
promote its deals and services among customers and will also able to influence them for
purchase.
Digital menus that use data: by rolling out digital menu, company will able to attract lot more
customers. This will help company in changing out option based menus that is based on time and
current whether. Digitalised menus also help customer in analysing effectively what they want to
eat and order.
Trend analytics: with data-driven culture, company will able develop better understanding of
performance at an individual level and it will also help in uncovering best practices which can be
shared to other restaurants in business market.
Kiosks and interactive terminals: by developing Kiosks, company will able to develop new
technology where customers will easily place their order with digital screen. With this labour
cost get reduced and happening of errors also go down.
Use of GPS: for McDonald's use of GPS system will help company in tracking location
of customers where food needs to deliver. This will help company in providing effective and
speedy services to customers. In market, there are other restaurants who are claiming for
providing fast delivery services. Therefore, to remain competitive in business market, company
must have to use GPS services. McDonald's will also able to analyse data which shows number
of customer which have viewed their websites. This will help organisation in promoting services
and offering among such customers so that they will get attracted. With use of negotiation,
McDonald's service boys will able to reach customers easily and will provide faster delivery of
food products.
Therefore, these are some recommendation by which McDonald's will able to develop
technological advancement for its business operations so that functions effectively get handled in
globalised world.
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