Management by Objectives - McDonald's Case Study

Case
Study

Table of Contents
Introduction........................................................................................................................................1
Capacity management to reconcile capacity and demand?............................................................2
Implementation of the four Ds by the McDonald’s restaurants?..................................................3
Performance objectives mean for the operation in McDonald’s?.................................................4
Quality..................................................................................................................................................4
Speed....................................................................................................................................................4
Dependability.......................................................................................................................................4
Flexibility.............................................................................................................................................4
Cost.......................................................................................................................................................5
Averagenumber of customers arriving at the till and the average time they must wait before
exiting McDonald’s Drive-Thru........................................................................................................5
Queue Management System.................................................................................................................6
References...........................................................................................................................................7

Introduction
McDonald's is an American-based Fast-food Service Restaurant (FSR). It was originated in
California in 1940. Finally, the system of an assembly line was transformed, rolling burgers in a fast
manner. This was the start of a phrase from George Ritzer, a sociologist, who called for
effectiveness, calculability, predictability, standardizations, and power. This was a prelude to the
"McDonaldization" business. This form of the framework is currently used not only by many QSRs
but also by numerous other agencies and organizations. Ultimately, the golden arches of
McDonald’s were made a popular display in cities and towns around the world. In 2019, worldwide
restaurants numbered 38.7 thousand, a statistic that has risen over the past 10 years. (Topic:
McDonald's, 2020). The income of McDonald declines by 30% with lockdowns on operations of
Covid-19. During the pandemic, worldwide restaurants were shut down and only drive and order
activities were limited. It registered a rise in global revenue in the same store than expected as
restaurants throughout the world had been closed due to the epidemic, reducing operations to drive
and produce. Over the second quarter, worldwide sales of same-store businesses declined 23.9
percent, pushed down by sizeable foreign shops such as the UK, France, and Latin America.
Revenue declined by 30.5% to $3.76 billion. McDonald's company strategy is considered 'the
winning plan.' McDonald's is not the major fast-food chain; it is the finest fast-food chain.
McDonald's is trying to do this by using the 5 P's, which include people, products, place, price, and
promotion. Furthermore, our company has strategic regional strategies. (Strategic Goals and
Direction of McDonald, 2014). McDonald's track products and services regularly to ensure that they
only deliver consumers the latest and the most popular products. You continue to maintain as
industry leaders, so you carry out several separate market analysis studies regularly to continuously
analyse the company's best potential marketing plan. Each employee undertakes training to his
highly respected McDonald's employees and will obtain sufficient training during his or her career,
as well as excellent career development. (FAQS | McDonald's UK, 2021).
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