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Challenges Faced By Mcdonald's Restaurant

   

Added on  2022-07-28

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Challenges Faced by McDonald’s Restaurant and How to Address Such Challenges 1
CHALLENGES FACED BY MCDONALD’S RESTAURANT AND HOW TO ADDRESS
SUCH CHALLENGES
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Challenges Faced by McDonald’s Restaurant and How to Address Such Challenges 2
Introduction
McDonald’s restaurant is recognized to be massive eatery chain that operates by
producing food and retailing fast food. The restaurant serves up nearly forty-seven million
customers in its day-to-day services within the international community. Rather than being a
fast-food restaurant, McDonald’s restaurants operated by different kinds of ventures of
businesses like the affiliate, franchisee, or the company itself (Gorham, Gibson, and Irlbeck
2016, p.4). Through operations of continual technology survey alongside innovation and
promotion, McDonald’s have altered its functions from the insignificant restaurant to fast chain
restaurant dealing with quick food. Different challenges face the advancement of activities of
McDonald’s that managers, human resource (HR) practitioners are required to perform to
manage such problems. Additionally, operations of McDonald’s Restaurant have for an extended
duration considered as one of the most successful businesses in dealing with fast food globally
(Gayle and Luo 2015, p.142). The process of McDonald's operations does not pose the date of
expiry as it satisfies the most significant desires as well as the needs of customers, workers, and
other stakeholders. The actions of McDonald’s is filled with the vision alongside prospect to
continue being competitive in various marketplaces. The actions of McDonald’s could improve
and be successful if its managers concentrated on administering along with controlling their
operations appropriately (Astuti 2018, p.96). Therefore, this research paper examines challenges
countered by McDonald’s restaurant and what managers and human resource (HR) practitioners
need to do to deal with such challenges.
Challenges faced by McDonald’s Restaurant
The operations of McDonald’s restaurant face several challenges in competing within the
industry that deals with fast food. Cases of marketing segmentation, targeting alongside brand
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Challenges Faced by McDonald’s Restaurant and How to Address Such Challenges 3
positioning, and the use of advanced technology are some of the challenges that affect operations
of the restaurant (Velikova, Canziani, and Williams 2019, p.7). McDonald’s has particular
strengths in those sectors of marketing segmentation, targeting, and brand positioning. Therefore,
some of the notable key challenges that affect operations of McDonald’s restaurant consist of
ever-changing and use of technology increase change in expectations of customers and foreign
government laws as well as regulations. All these challenges have made the restaurant to reduce
profits that they earn in the ever contested market in dealing with fast food provision and
retailing. The challenges have made it tough for McDonald’s to introduce different types of meal
categories to different categories of ages. Additionally, the challenges faced by the restaurant
have negatively affected its psychographic segmentation, segmentation of behaviors, and brand
positioning (Letsa 2017, p.113). The challenge of the appropriate use of technology results in a
lack of flexibility in operations, giving the company’s fast food bad image, leading to slow and
inaccurate services, and leading to price sensitivity.
Ever-Changing Technological Usage
The presence of advancement in technology has both positive and negative impacts on
almost every department within McDonald’s Restaurant. Although, operations of this restaurant
rely directly as well as indirectly on convenience and speed of technology used during services
(Zavadynska 2018, p.97). For example, technological usage has altered the considerable section
of the dining experience of fast food not just for the targeted alongside esteemed clients, but it
has impacted workers. Such technological changes have been noticed to have continuous been
capable of turning large food business operations in diverse ways. Therefore, with ever-
increasing advancement in technology, different online blogs, as well as the fashion of online
reviews have changed to be famous in the operations of McDonald’s. As soon as customers
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Challenges Faced by McDonald’s Restaurant and How to Address Such Challenges 4
depart from the restaurant after seeking services and fast foods, they are always capable of
having a way of expressing their range of views concerning the experience gained from the
restaurant (Sigala 2013, p.65). However, the single case of negative reviews by the customers
often harms the image of McDonald’s business negatively. Hence, ever-changing technology has
had a vital impact on the actions of McDonald's in varied ways
It is always apparent that ever-changing alongside use of technology is continually
altering operations of McDonald’s by leading to innovations in operations. It has to turn out to be
essential for the McDonald’s management to upgrade the use of technology for the restaurant to
be capable to effectively compete with their business rivals such as Starbucks within
international marketplaces (Hanaysha 2016, p.310). The use of technology has negatively
affected the services of the restaurant. For instance, McDonald’s was struck when the undercover
investigation on TV accused its operations of using the mainland supplier that relabeled expired
meat. Several targeted and esteemed customers were able to watch the investigative programs
making them avoid the products of this restaurant (Eneberg and Holm 2015, p.18). Therefore,
with ever-increasing and changes in technological usage, McDonald’s has to focus on improving
its ideas of communicating with clients on different social media sites as a way of promoting its
online operations to remain competitive in the markets.
Increase Changes in Expectations of Customers
The increase in expectations of clients has lead to cases of psychographic segmentation
within the operations of McDonald’s. The segmentation that relies on customers’ lifestyle, their
activities, and opinions in defining markets, making it difficult for the company to focus on
producing different fast foods to suit the requirements of everyone’s culture. The restaurant often
finds it tough to deal with varying cases of consumer buying behavior into accounts (Borisova
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