Food Service Management: Approaches, Principles, and Practices

This report discusses food service management of McDonalds, including food supply chain approaches, principles of procurement, management practices & strategies, ethical practices, and more.

FOOD SERVICE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
LO1..................................................................................................................................................3
P1 Food supply chain approaches................................................................................................3
P2 Principles of effective procurement and sourcing processes..................................................5
LO2..................................................................................................................................................6
P3 Application of different analytical tools.................................................................................6
P4 Different practices of management........................................................................................9
LO3................................................................................................................................................10
P5 Impact of ethical practices organisational success...............................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Food service management is the most important task to an organisation which works in
the food industry. Currently food industry has widely expanded in across the world, and
businesses which works inside this industry are trying to properly manage their food services.
The main objective of an organisation behind managing food service is to provide the best
experience to different people and customers when they visit in own restaurants. Day to day
competition within food industry is increasing, in which each food service providing
organisation have to make its services very effective as well as productive. This is the only way
to various companies for gaining excellent competitive advantage in market place.
This report discusses food service management of McDonalds. There are McDonalds is a
popular fast food company, headquartered in Chicago, United States. Currently this food
organisation provides in its different food products and services in many countries, like; US,
United Kingdom, Paris, Netherlands, Japan, Australia, Mexico, Canada etc. with its huge chain
of 38,700 restaurants (Abdelgawwad, 2017). This report discusses food supply chain approaches,
principles of procurement, management practices & strategies, ethical practices etc. This report
includes business development or improvement plan also which will positively affect to
McDonalds.
MAIN BODY
LO1
P1 Food supply chain approaches
Top-level management within most food organisations is completely aware about the
impact of food supply chain approaches. Basically, these are very important for gaining better
outcomes in market place, and this is the main reason that McDonalds fully considers these all
approaches in workplace. Currently many approaches have used by this company for making its
food supply chain very effective. Some major supply chain approaches have been discussed
below with key stakeholders of the supply chain process.

Predicting launch and early stage demand: This is the first approach of food supply chain that
has followed by existing management of McDonalds. This approach enables to company for
systematically launching its various new and previous products in market place. The company
uses this approach for predicting early stage demand as well. Prediction is very necessary for
knowing products will simply sold in market (Huang, 2016). Through this approach, company
can predict that how customers will react when they know about its products.
Multi-stand manufacturing: This is another important approach of food supply chain, and this
approach completely applicable on McDonalds. Basically, this approach helps to food producing
companies for opening their multi stand manufacturing and producing platforms to deliver food
items to different customers on time. Currently by using this approach of food supply chain,
McDonalds produces different products and services in its authorised restaurants. For example;
when any customer visits in company’s restaurant, then existing employees or staff takes orders
from customers, and prepare food accordingly. In this process, top-level management, logistics,
suppliers and restaurant manager are main stakeholders who works together for providing food
items to customers on time. They generally include in the process of supplying raw-materials to
McDonald’s restaurants.
Optimize positions: Optimization of appropriate positions is another major approach of food
supply chain which is also used by existing food producing company. Basically, this approach
helps to company for setting the perfect positions of its various products in selected market
place. While considering this approach in workplace, the company is required to use STP model
also for knowing proper positions for products in market (Legendre and Baker, 2019). Currently,
McDonalds has wide range of food products, so that it uses its different products for selling them
in different market places. The management has always required to properly analyse the actual
demand of customers in different marker places, and then it can simply set proper position of its
products in market place. At the end, this approach of supply chain will be enables to company
for supply its various food products according to demands of different market segments.
The venture always needs to deal with many stakeholders while running its various
supply chain processes in business environment. In these processes, employees, suppliers,
customers, top-level management, production department and local government are main
stakeholders of McDonalds. For example; top-level management contact suppliers for fulfilling

the need of raw-material, suppliers provides raw-material to company, employees produces new
products by using raw-materials, customers buys newly developed products from company, and
then government ensures that the food organisation is properly fulfilling all obligations of
business law or not. That’s why these all stakeholder plays an excellent role McDonalds to
supply its different products and services to customers on time. Some major approaches of food
supply chain have been discussed above which supports to existing food producing company for
enhancing its organisational effectiveness in market place.
P2 Principles of effective procurement and sourcing processes
Many principles of effective procurement and sourcing processes simply available in
market which the management of company can adopt and use for gaining great profit margins in
market place (Jankauskaite, 2016). Some major effective procurement and sourcing processes
principles has been discussed below;
Openness: This is the first principle of procurement and sourcing that top-level management of
McDonalds can adopt and use its workplace. Basically, this principle has enabled to different
companies and businesses for making selling their products and services, by providing proper
information about the products. This principle can support to company for maintaining effective
relationship with different customers. Basically, when company openly share all information
about its food products with customers, then they become loyal withy customers. These all
factors are enough to show the effectiveness of openness principle.
Rigour: Rigour is another major principle that can support to company for taking actions
towards such things in its organisation which can affect its daily operations in negative way. For
example; sometimes, many employees have negative motivation in workplace, and they not
believe in working in the welfare of organisation. So that, the management can simply deal with
such employees by implementing rigour principle in daily operations. However, exiting principle
helps in strictly dealing many other negative factors and elements as well.
Alignment: Proper alignment of different organisational operations is very necessary for
achieving the final targets and objectives of venture in decided time period. Day to day many
new productive technologies comes in market place, in which upper management of venture
have to adopt these all technologies for the perfect alignment of own daily practices and

operations (Berholt and Bohman, 2017). By considering alignment principle of effective
procurement and sourcing processes, the McDonalds will be achieved very excellent outcomes
through its operations.
These all are major principles of sourcing processes and effective procurement, in which
upper management of company have to adopt these all principles to make it’s all organisation
practices very effective.
LO2
P3 Application of different analytical tools
In this dynamic and modern world, there are lots of analytical tools available in market
place which top-level management of McDonalds can be adopted and applied in its business
operations. For example; PESTLE analysis tool, SWOT analysis tool etc. are major and most
productive analytical tools which currently used by many companies and businesses in market
place. So that, existing management in McDonalds also have to adopt and apply these tools in its
workplace in order to support effective management strategies. Both analytical tools have been
applied on McDonalds below, and by applying these tools in workplace, the company can simply
make some more innovative business strategies as well.
PESTLE Analysis
This is very useful and productive analytical tool to company which will definitely
support to company for managing its various strategies in workplace. Basically, businesses use
this tool for identifying and analysing different factors of their external business environment
(Aleem, 2019). PESTLE term generally indicates six major factors of external business
environment, like; political, economic, social, legal, environment, and technological.
Political factors: Political factors always highly affects to McDonalds in market place, because
the management of company has always required to fulfil different obligations of governments
where it operates its business operations. For example; currently this food company is
successfully running its business operations in the UK’s business environment, in which the
management has affected by political factors for fulfilling the taxation obligation or formality.

Basically, the UK government has imposed taxation of various companies and organisations
which comes under its command and authorisation area. These factors affect to existing food
venture for developing such types of food products which never harm the health aspect of their
citizens.
Economic factors: Economic factors also affects to company in both ways, positively and
negatively. Basically, when any country has well-developed economic conditions, then
McDonald gains effective outcomes in that country’s market place. On the other side, if country
has un-developed and poor economic conditions, then this food company can’t achieve
appropriate outcomes in market place. In this situation, existing economic conditions of UK is
not favourable for the company, because this country’s economic conditions have badly affected
by coronavirus pandemic (Analytics: What You Should Know and Why It Matters, 2020). In this
situation, McDonalds is not able to easily sale its various food products and items in current
economic situations of UK, so that its profit aspect has been decreased due to these factors.
Social factors: Most people in market place like to buy food items from those companies and
businesses which provides quality and healthy food items to customers. So that, this social factor
affects to company for day to day improving its quality of food items, in which this is positive
influence of these factors on McDonalds. On the other side, people like give higher to those
ventures also which fulfils their obligation of CSR (Corporate Social Responsibility) on time, in
which this social factor influence to company for making strategies in order to improve own
brand value by fulfilling CSR in market place.
Technological factors: Technological factors currently positively affects to existing food
organisation, because currently those all technological gadgets and tools simply available in
market place which can help to venture in enhancing its productivity and performance in market.
These factors contribute in company for effectively improving quality of its products and
services as well.
Legal factors: Legal factors of each company affects to the management of McDonalds for
always following different legal and ethical considerations in workplace. The company have to
adhere food standard regulation also for producing healthy and quality food products for

customers. These factors affect to organisation for considering employment also in daily
operations.
Environmental factors: Environmental factors are highly affecting to company’s upper
management for always avoiding those all activities and operations in its workplace which can
negatively impact to the natural environment. On the other side, lack of natural resources factor
is badly affecting to McDonald, because now company has required to pay huge amount to its
suppliers for purchasing various natural resources and raw-materials.
These all are major factors of PESTLE analytical tool which can highly affects to present
food company (Pandjaitan, 2016). By considering the impact of these all factors, the venture can
simply manage its various business strategies.
SWOT Analysis
This is another important analytical tool that can also support to effective management
strategies of company. Currently this tool uses by most organisations for knowing their internal
business environment factors. This tool generally indicates four main internal business
environment factors which has been discussed below;
Strengths: McDonalds is a highly reputed fast food brand that currently successfully operating
its business operations in over 188 countries, it means existing business expansion process of
company is very excellent. On the other side, company has the wide range of fast food products
which highly attracts many customers in market place.
Weaknesses: The management of company not has proper problem and challenges solving
capabilities, because when company suffers from any problem or challenge, then management
takes huge time to resolve that problem or challenge. For example; currently coronavirus
pandemic is a big problem to its growth, in which it is not able to systematically deal with this
existing challenge or problem.
Opportunities: The company has opportunity to attract many new customers in market place by
using digital marketing strategy. Of course, company is already using this strategy, but not in
effective manner, so that company have to use this strategy properly because currently digital
marketing aspect provides excellent outcomes to organisations.

Threats: Many new entrants are day to day coming in the international fast food industry, so that
the market competition become very higher due to this reason (Syverson and et.al., 2020). In this
situation, huge market competition factor is the main threat to McDonalds.
These all are major factors of SWOT tool which affects to company in both manners,
positively and negatively. There are PESTLE And SWOT, both analytical tools will be defiantly
supported to company’s effective management strategies.
P4 Different practices of management
There are various management practice conducts by top-level management of food
organisation for gaining huge success in market place. Some major management practices of
company have been discussed below;
Planning: This is one of major practice of the management present fast food company. In this
dynamic and modern world, each company should have proper business plan for systematically
executing its various business operations in market place. At the end, planning contributes in
company for managing all organisational functions in proper way. So that, when any company
manages its operations systematically, then it will gain very positive outcomes in market place,
and this the main reason that planning practice of management is very essential to present
venture.
Hires skilled and talented people: The management of venture has conducted the practice of
hiring skilled and talented employees in workplace, and this practice is very beneficial to
company for gaining an effective workforce in own workplace. Basically, when any company
has an effective workforce, then it can simply take very productive work from its employees. In
this situation, productive work of various helps to organisation for enhancing its productivity and
performance in international fast food industry (Nti, 2017). That’s why management practice of
hiring skilled and talented employees is very helpful to McDonalds.
Measuring and controlling: Measure and control different aspects of organisation practice of
existing management is also very beneficial in order to gain huge success in market place. Top-
level management of company mostly measures performance its business operations in market
place for knowing that, its various functions are providing effective return to company or not. On
the other side, the management conducts the practice of controlling, in which it controls quality

of its various food items, it controls strengths and weaknesses of its employees, and at the end its
control its great brand image in market place. That’s why the management practice of measuring
and controlling is very beneficial to food organisation.
Recommendations
Top-level management conducts different practices in its business environment which
very positively affects to the company, in which it should continue to conduct these all practices
in workplace, because this is the only way to company for enhancing its business operations in
market place (Hassell, 2020). The management have to develop its different managerial
competences as well for systematically conducting these all practices in workplace. These all
management practices are enough to McDonalds to gain high success in market place.
LO3
P5 Impact of ethical practices organisational success
The management of company have to consider different ethical practices also in the
workplace to be ethical formed in market place. There are some major ethical practices has been
discussed below;
Provide healthy and quality food items: This is one of the main ethical practices to a food
organisation which motivates to its to top-level management for producing and providing only
healthy and quality products and services. In this situation, existing management of McDonalds
also have to follow this ethical practice to gain effective results in market place. This ethical
practice can enable to venture for gaining huge success as well, because when company provide
quality and healthy food to people, then more and more people make plan to buy food products
only through McDonalds. That’s why the impact of existing ethical practice is very favourable
for the company in market place.
Respect consumer rights: Basically, customers have lost of rights in market place, like; right to
choose, right to know, right to be safe etc. so that company have to systematically respect all
rights of customers. For example; if any customer wants to know that what raw-materials and
ingredient includes in food products, then staff or employees of company are responsible to give

this information to customers (Lewis and et.al., 2020). This ethical practice of company
generally presents its good values in marker place, so that its brand image in market will be
positively impacted due to practice of respect consumer rights. On the basis of these all factors,
food organisation has enabled to attract maximum customers in market place as well.
Adhere employment law: Top-level management at McDonalds have to conduct the practice of
adhering employment law as well. This is very necessary in order to provide basic rights and
freedom to different people or workers in workplace. This practice will be enabled to
organisation for gaining an effective workforce as well, and this is the main reason that this
practice indirectly provides very higher success in market place. Generally, when venture adhere
employment law, then existing employees of workplace will work with full efficiency. That’s
why practice of adhere ethical practice is very beneficial to company.
These all are major ethical practices which top-level management of company have to
consider and conduct in its workplace, because these practices will enable to venture for gaining
positive outcomes in market (Carranza, Díaz and Martín-Consuegra, 2018).
CONCLUSION
On the basis of above findings, it can be concluded that, top-level management of
McDonalds have to adopt and implement different approaches of food supply chain. This is
really a necessary task to company for providing it wide range of food products to customers on
time. Some major principles of procurement and sourcing processes also has been mentioned
above in this report. On the other side, two major analytical tools, named; PESTEL and SWOT
has been used here for making appropriate business strategies. The management have to
implement different ethical practices in workplace for gaining great outcomes in market place.

REFERENCES
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and customer loyalty with an importance-performance map analysis. Journal of
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Hassell, D. 2020. These 5 Management Practices Create Uncommonly Successful Workplaces.
[Online]. Available Through: < https://www.15five.com/blog/management-practices/ >