McDonald's ability and customer requirements

This report analyzes customer requirements and McDonald's ability to meet them. It discusses the 5 dimensions of customer value, including quality, cost, time, customization, and respect for the environment. The report also emphasizes the importance of service quality in satisfying customer needs.

McDonald's ability and
customer requirements

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1 CUSTOMER VALUE.......................................................................................................1
5 Dimension Customer Value.....................................................................................................1
Conclusion...................................................................................................................................6
PART 2A (SERVICE QUALITY)..................................................................................................6
5 Dimensions of Service quality.................................................................................................6
Conclusion...................................................................................................................................9
PART 2B (GAPS IN SERVICE SERVQUAL)............................................................................10
Gaps in service SERVQUAL....................................................................................................10
Conclusion.................................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
.......................................................................................................................................................15

INTRODUCTION
In a competitive market place, analysing customers requirements is one of the crucial
activity as it help company in maximizing their profitability level. Considering customers
importance at every stage of marketing support company in ensuring greater satisfaction of
customers and at the same time also increase long term goal within the market place. If
customers are satisfied with company products then organization easily improve their
performance and also established their competitive image (Yi and Gong, 2013). Current report is
based on McDonald's, is American fast food company operate their business in over the world
with the aim of generating larger profitability. It was established in 1940 by Richard and Maurice
McDonald's in US. This company is the world's largest restaurant chain and serving around 69
million customers in approx 100 countries. It is known for its cheeseburgers, hamburgers, French
fries and many more products. The main purpose of this company is to meet customers
requirements by providing them quality products and services. This is possible by analysing their
needs and wants. This will aid in improving the chances of attaining competitive edge at market
from its competitors. Report is going to discussed about 5 dimension customers value, service
quality that help in evaluating the actual requirements of customer towards the company and its
services.
PART 1 CUSTOMER VALUE
5 Dimension Customer Value
Customer value is considered to the perception towards what type of products is effective
or worth to a customers vs the possible alternatives. In this, worth is refer to customer feeling
whether they are feel that they received benefits and services towards what was they paid for the
same. Mainly, value of customers is directly based on three factors like quality, services and
price. Thus, it is crucial for company to focus on customer value while providing them products.
This may aid in generating larger profitability and also make them more satisfied. This will
contributes in creating strong customers based thorough which firm easily attain competitive
success. (McColl-Kennedy and et. al., 2012) In context of McDonald's, company always tries to
ensure that customers are satisfied with company products. As product value is increase with its
services and quality that support in increasing benefits as well. This is the reason that
McDonald's provide quality services to customer in order to make them satisfied. In addition of
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this, there are 5 Dimension customers value which support in determining their requirements
towards its products. These can be understood by below mentioned points:
Quality- It is explained as standard of something that measured against the other things
of same kind. This confirms the product or process that conforms to needs. The customers is only
Mainly the customers focus on better quality of services and products which can give the proper
satisfaction to them effectively. Effects of the quality are to be experienced through consumer.
The perception of product quality comes from design specifications and attain manufacture
standards. The quality can be related to goods and standard of the delivery. In context to food,
quality is characterised that acceptable to customers (Heinonen, Strandvik and Voima, 2013). It
consists factors like colour, size, consistency, flavour, texture etc. It is necessary for company to
keep the quality of products better so that customers can be attracted and to be loyal for
company. McDonald has established its three quality centres in Europe, Asia and North America
assure that it is famous for Big Macs, French Fries and Chicken McNuggets and they taste great
and also meet with rigorous standards. It has robust process of product governance in order to
assure quality of favourite menu items around world. McDonald maintain high food standard and
its main aim is to provide quality in all service areas. In context to food items, McDonald uses
pure muscle cuts rom, chicken and deboned in a careful manner. They use pure beef cuts with no
additives or preservations. On the other hand, McDonald use only vegetables that monitored
continuously for high nutritions and freshness, keeping to high quality standards in all products
of McDonald. There is only the fresh milk used and from safety standard local and regional
suppliers. Other than this, McDonald used quality control system i.e. HACCP (Hazard Analysis
& Critical Control Point). It is applied for keeping the food safety and standards at absolute
highest. As comparison to its competitors like Burger King, McDonald states about quality and
use the fresh items. McDonald assures the quality in its all stores. On the basis of this factor, 9
out of 10 ratings will given to McDonald.
Cost- It is value of money that used to develop something and is not available for using
any more. This has to paid to get the something. The cost of product is cost that incurred to
develop goods. These consists direct material, factory overhead, direct labour and consumable
production supplies. This can be considered cost of labour that needed to deliver service to
consumer. Cost is a main determinant in the customer value because if the cost of product is high
according to quality an quantity then customers will not take any interest in purchasing and they
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can change the mindset. So, it is necessary for the company to keep its products and services at
reasonable cost so that more number of customers can be attracted and also focus on purchasing
the goods at large. The cost factor impact operators of all restaurant consisting McDonald. They
buy food items like fish, dairy goods, beef, poultry and some of the other items from suppliers.
Aside from taxes that mentioned already, stores have various costs due to corporately owned
then the other franchises. Biggest cost differences are of nuggets as some of the locations provide
really cheap while other sell at higher cost. On the other hand, McDonald pricing strategy
includes cost building that combined with the psychological costing (Vega-Vazquez, Revilla-
Camacho and Cossío-Silva, 2013). Under this, firm provides the meal and some other product
bundle for discount. It provides its food items at reasonable cost so that every one can eat and
enjoy. It is helpful for consumers to encourage customers to purchase products of firm on the
basis of perceived affordability. In relation to this, restaurant understand that perception value of
consumer is necessary determinant of cost charged. With the help of using low cost as marketing
tool that promise consumers product of the compromised quality. The rivals can be respond in
cost war that resulting profit margins minimized without enhancing sales volume. The main
objective of McDonald costing is to enhance market share. In relation to this, arriving at costing
decision is result of examining cost, demand and competitor pricing. On the basis of its cost and
pricing strategy that is affordable for both, ratings will be 8.5 out of 10.
Time- It is a system that includes everything that requires to plan and also make
improvement in organisational skill. Time is concerned with It assist in finish work within
specific period of time and also stay free. It is act of planning amount of the time spend on
activities. In this, order cycle is main component of time dimension related to customer service.
It is mainly the order time from seller perspective that looking at the customer service. Customer
concerned with time dimensions as lead time. In this present time, consumers want the minimum
delivery time of products and services. As McDonald does not provide the table services to
consumers as they have to wait in a line (Hsiao, Chang and Tang, 2016). At some of the
locations, McDonald is trying to out limited time period of 60 second guarantee on the weekday
lunch orders. The Drive- thru consumers are handed timers after they paid for orders. If in case
food is not ready in 60 seconds or less then customer will receive free lunch items on future visit
in McDonald. On the other hand, it started McDelivery services and look to serving consumers to
the great taste food in confront of offices and homes. This restaurant deliver orders within
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maximum 40 minutes. It takes more time to deliver the fast food items to customers. In context to
this, McDonald committed to delivery core commitments of service, value, cleanliness and
quality while exceeding the expectations of consumers. To reduce or manage the service time,
McDonald added tools and technology to provide the managers ability for identify where they
can reduce its service time. They can decompose different components of drive- thru visit for
consumers in constituent seconds. Under this, acquisition has been provided to technology access
to organisation that is able to reconfigure menu boards in drive- thru on the basis of some factors
like day, ordering items and outside weather. This can speed the orders through suggesting the
simpler items. As McDonald takes more time of delivery its goods or food items so 6 out of 10
ratings will be given to it.
Customization- It is an action of changing something on the basis of requirements. This
is process of creation of bespoke design. In this, mass customisation is concept that provides at
minimum cost, goods are tailored to needs to specific consumers. This has more necessary as the
markets are fragmented and consumers are fastidious. In context to this, many goods can be
similar and customization is only thing that assists in stand apart. People wants the goods that try
to be connect with them on each level. Taste of customer changes and form respond to changes
through providing the healthy food items. Customization of menu remains critical business
strategy in order to competing fast food sector. Enhanced the mass customization is endemic to
modern culture. To move perceived unhealthiness of main offerings of menu, McDonald services
smoothies, salads, fruits and fish items (Tynan, McKechnie and Hartley, 2014). The
customization help in making the goods and services on the needs and wants of people. It helps
in develop the positive impact on mindset of people effectively. In McDonald much- hyped
“Create Taste” menu that permit diners yo customize the burger orders. Customization platform
of McDonald is create taste. This idea helps in provide the better experience to consumers. In
burger, company gives many bun options, unique toppings and speciality sauces to customers.
The consumers can Customize size of burger and type of drinks and sides. On the other hand, in
area of the menu, personalisation and customization are initial efforts to focus on providing best
experience of burger to customers. Warm deli sandwiches and customised hamburgers have
paved way for customised the hot dog. The quick serves are quick to be observe that customers
are willing to be pay for variety and quality. The McDonald can customise from kind of the fresh
bread to choice of meats and cheeses, extra spreads and ingredients. The request of customers for
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sweet or heat that enable customization process. In relation to this dimensions, 6.5 out of 10 will
be given.
Respect for environment- It is appreciate cultural the landscape structure. To protect
communities, it is necessary not to harm environment. Respecting the environment assures that
the communities have necessary resources in order to meet with wants and needs. McDonald
know its responsibilities to protect as well as preserve environment for the future generations. Its
all activities ate centred around minimizing impact on environment. The main goal of this
restaurant us to reduce energy and water consumption to maximise the recycling rates in local
communities to have positive impact on environment. The main initiatives launched through this
company is Planet Champaign programmes. It chosen single individual from each restaurant that
has been trained in some a manner to minimize impact on restaurant environment. McDonald
operate as part of local community and also take the pride in appearance of local environment. Its
restaurants are includes in littler patrols, close links of stores and litter bins on all the sites with
the Tidy Towns committees and local community groups. As the McDonald make efforts in
minimizing carbon emission and deforestation impact. In order to make improvement in carbon
footprint, McDonald's make improvement in carbon efficiency with the help of using energy
efficiency equipments as well as low energy lights in restaurants. This restaurant redesigning the
packaging with the help of recycling programs ( Martelo Landroguez, Barroso Castro and
Cepeda-Carrión, 2013). It is working with Environmental Defence Fund that aids McDonald
search the ways to recycling and refuse packaging. In order to this, minimizing wastage is a
better solution to remove negative impact from environment. There is a need to sorted wastages,
processes and gathered as it consumers energy. Recycling may be helpful in ease wastage of
pollution but the mass consumption related to unnecessary packaging is main issue to the
packaging waste. The main focus on this restaurant is to minimizing amount of wastage and
make environment better. On the other hand, McDonald restaurant is using bin it logo for
promoting the clean society so that rubbish packaging should not be thrown though roadside.
This is promoting going green for save energy as well as minimizing wastage for saving
environment and also showing responsibility towards community. Ratings that will provide to
this restaurant 9 of 10 because it conduct many activities for environment.
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Conclusion
It has been concluded from above mention report that customer value includes sum total
of the benefits that vendor promises a consumer will receive in return for associated payment of
consumers. It has been stated that consumer value is satisfaction that customers feel after making
purchase for services or products. Different dimensions related to customer value like quality,
cost, time, customization and respect for environment has been discussed in detailed manner.
These all the dimensions are related to the organisation and ratings has been also given on the
basis of analysis each dimensions that can provide better value to customers.
PART 2A (SERVICE QUALITY)
In service industry, service quality play a significant role as it focus on meeting customers
needs and wants. It also evaluate that how well the services was delivered to meets their
expectations. Thus, company is responsible for determining what is that constituted quality to
those whom it serves. This can be effective for delivering and maintaining service quality. In this
regards, delivering quality is one of the major issue that faced by company so that it is crucial for
company to analyse customers requirements in order to attain their higher satisfaction (DFearne,
Garcia Martinez and Dent, 2012). It puts positive impact on establishing competitive brand
image and at the same time also invite more and more people towards its offerings. In context of
this, there are 5 service quality dimension that help in ensuring about quality services that
provide by McDonald's to its customers in order to increase their satisfaction level.
5 Dimensions of Service quality
Tangibility: This dimension of service quality is refers to the company aesthetics.
Mainly, it is related with appearance of physical facilities, equipment, personnel and
communication material. All these are crucial for McDonald's to maintain while providing
services to its customers. As it help in improving their experience and make them satisfied with
company products and services (Theodorakis and et. al., 2013). Along with this, all the tangible
aspects may aid in maintaining service quality of McDonald's through which they can easily
invite larger number of customers towards its offerings and satisfy their requirements as well. In
context of physical facilities, it plays a critical role in McDonald's as it help them to attract wide
rage of people towards the brand because it includes interior design, ambiance and many more.
Thus, McDonald's needs to develop or make their store more attractive and eye-catching so that
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customers can easily influenced and encouraged to consume its services. This may aid in
improving customer base and profitability level as well. Along with this, equipment is related
with new technologies and ways to offer quality services to customers that help in providing
positive and satisfied experience. One of the main advantage of this dimension render to
McDonald's is that it help them to make customers loyal. For attaining the same, McDonald's
make their employees to treat its guest with humble nature, well uniforms, equipment and also
ensure that working areas like closets, services office and many more look good.
Reliability: It is related with organizational ability to perform the services accurately. By
this dimension company can easily achieve customers trust and loyalty towards the brand. In
context of McDonald's, they are responsible for fulfilling all the promises that they do with
customers so that they can provide positive experience and make them loyal. This can be
beneficial for company in generating larger profitability from its competitors. Along with this,
McDonald's is also make sure that the served food are same with its advertisement that given by
company to its customer for influencing. It may aid in making customers happy and satisfied
with its services. Furthermore, company should make sure that employees have record the right
menu from customers in order to fulfilling their actual requirements (Theodorakis, Kaplanidou
and Karabaxoglou, 2015). For providing better service quality to their guest, McDonald's needs
to increase speed of preparing food so that they provide quick services to their customers. It help
in saving customers time and they get fast delivery of their food items. This is the reason that
company easily build positive relation with their customers and also encourage them to visit
restaurant again and again. If firm serve their products accurately and dependably then company
can easily improve their customers base and profitability as well.
Responsiveness: It is based on the ability of business organisation to response their
customers needs and also emphasis on a willingness to respond promptly. In this, McDonald's is
responsible for treating customers well that support in developing as well as creating positive
relationship. This will contributes in making service quality more effective through which
customers get satisfied with its services. In this regards, McDonald's needs to tell the customers
towards the time what they actually required to offer products. It may aid in making them humble
with employees and also improve their positive experience (Wu, 2013). For improving their
service quality, it is important for company to increase the speed of delivering services in which
they reduce the time that consume in preparing the food. By this, customer doesn't wait for their
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food items. On the other hand, management of McDonald's is also train their staff members and
employees to make them able to effectively handle customers. With the assistance of this,
company can improve the chances of achieving satisfaction of guest and at the same time also
established its competitive image as well. In context of responsiveness, McDonald's is
responsible for giving their best so that they can easily enhance customer expectations and make
them satisfied with its offerings. This is the reason that company may improve their customers
base and also capture larger market share from its competitors present in market place.
Assurance: This dimension of service quality is refers to the knowledge and courtesy of
workers and their ability to treat customers. Along with this, it is also responsible to convey trust
and confidence with customers that support in maintaining or keeping better service quality. In
this, employees of McDonald's is responsible for communicate with customer politely and nicely
in order to build trust in customers. This can be beneficial for company in improving the
customers base their expectation towards the company and its services. Along with this, the
cashier worker needs to tell the customers to check the amount in order to make sure that cashier
has give the right amount. It may aid in making customers trust and loyalty towards the company
and its services that may encourage them to consume McDonald's products again and again
(Mok, Sparks and Kadampully, 2013). With the assistance of this, McDonald's can improve their
brand image by which large number of people get easily attracted and influenced. Apart from
this, company is also responsible for giving knowledge to employees about the menu and
facilities that provided by McDonald's to its customers. If they has proper knowledge then they
easily provide service quality products as per customers requirements. This may support in
establishing the competitive image of company at market place.
Empathy: This dimension is based on employees ability to provide attention and concern
to customers in order to make them loyal and satisfied. It may support in inviting more and more
guest towards the company and its offerings as well. For satisfying customers, it is crucial for
employees to give more attention to the customers so that they can feel their importance within
the company and improve their positive experience. Furthermore, company also communicate
with customers in order to understand their actual requirements and request towards the
McDonald's products and services. This will contributes in developing customers base more
strong and competitive that assist in capturing people attention. In this regards, if organisation
understand customers requirements and their demand then they easily satisfy them and also retain
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for longer period of time. For attaining the same, firm take feedback from customers after
consuming products to analysis their views about McDonald's products. In case company
required some change then they do the same while offering their services. Furthermore,
McDonald's needs to train workers to willing to help the customers and resolve their quires about
company products and services. It may assist in developing positive relation with customers and
make them loyal towards the company which may aid in establishing its competitive image a
wider market place (Wu and Ko, 2013).
Conclusion
As per discussed dimension of service quality it can be evaluated that, it is important for
McDonald's to maintain service quality as it help in improving the customers demand towards
the same. This can be beneficial for company in generating larger profitability level at market
place and at the same time also create competitive image. In this regards, company always focus
on customers needs and demand while giving them products. In which they also ensure that
company fulfil their promises with their guest and also make them trustable toward the its
offerings. With the assistance of this, McDonald's invite more and more customers over its
services and also develop strong customers base. Furthermore, company also responsible for
including all the dimension of service quality while producing their food items in order to serve
quality products to its customers as per customers requirements and attain their higher
satisfaction. This will directly contributes in establishing its competitive and famous brand image
that encourage or influence large number of customers.
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PART 2B (GAPS IN SERVICE SERVQUAL)
The Gap Model of Service Quality is a framework that is used by organisations across the
globe with a view to identify, examine and manage the gaps found prevailing within the confines
of a corporation in relation to quality of services provided. This model provides assistance to the
company in gaining extensive comprehensibility of customer contentment. In this regard, it is
seen that this framework illustrates 5 major types of satisfaction gaps that are necessary for an
organisation to address while intending to fulfil the needs as well as expectations of clientele.
The model portrays customer satisfaction to be essentially a function of perception. This implies
that in an instance whereby the client perceives the quality to be fulfilling their expectation, they
will gain satisfaction (Raju, Singh and Tariyal, 2015). In case of the contrary case, they will
derive dissatisfaction. Such dissatisfaction is a result of any of the 5 customer gaps which are
outlined within The Gap Model of Service Quality.
Gaps in service SERVQUAL
The Knowledge Gap: The gap between Consumer Expectation and Management Perception
This is regarded to be the difference underlying between the expectations of customers
associated with facilities rendered and the actual provision of services by the organisation.
Hereby, it is analysed that managers do not have knowledge of or incorrectly interpret the
expectations of people linked with organisational offerings. In case such gap prevails, this
reflects that corporations are trying to fulfil wrong or non existent needs of clientele. In a world
where businesses have largely become customer centred, it is of immense significance that
comprehensibility is gained regarding the requirement of customers in relation to service
entailment (Widjoyo, 2013). In order to fulfil the gap existing between the perceptions of
administration of firm regarding service delivery and expectations of clientele related to same,
company should execute extensive researching of market.
In relation to McDonald's, it can be examined that this gap may exist as the customers are
concerned about their health and thus need healthy food and beverage offerings which can be
consumed on a frequent basis. The company can close this gap by conducting market research
and customer surveys along with provision of healthy food offerings.
The Policy Gap: The Gap between Management Perception and Service Quality Specification
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This is considered as the difference underlying between management's comprehensibility
of needs of clientele and the translation of such comprehension to policies as well as standards of
service delivery. Certain organisation find difficulty in translation of consumer expectations to
delivery of specified service quality. This tends to comprise of ineffective service designing, non
achievement to keep and constantly upgrade organisation providence of effective client services
or basically the absence of standardisation. This gap witnesses clientele to be seeking an
identical offering with better services somewhere else (Razaka, Iliasb and Razakc, 2016).
Within regards to McDonald's, this gap may exist as a result of absence of commitment
on the part of management team together with ill-defined service design. The key to address this
gap for McDonald's can be task standardisation whereby all the tasks and rules would be
standardized.
The Delivery Gap: The Gap between Service Quality Specification and Service Delivery
This gap illustrates the weakness underlying within the performance of staff members.
Corporations having a Delivery Gap might stipulate the services needed for assisting consumers,
however they have failed at giving required training to employees, putting effective procedures
into action. As a consequence of this, staff is acknowledged to be ineffective in management of
needs of clients.
In relation to McDonald's, this gap may exist in case the staff is not helpful and there is
excessive labour turnover in the company. To address this gap, management of this fast food
company can offer incentives, bonuses or hike in salary. This would make the employees work
for the organisation for a long period of time (Yunus and et. al., 2013).
The Communication Gap: The Gap between Service Delivery and External Communications
The promises made by organisations at the time of marketing communication tend to give
rise to client expectations. In this regard, whereby the entity is not able to keep the promises at
the time of service delivery, communication gap is created. This tends to cause disappointment
within the customers.
In relation to McDonald's, this gap may exist if consumers feel that Happy Meals are
expensive and not worth the value it charges from people. To deal with this, entity can gain
knowledge of the latest market trends and apply the same within the premises (Guo, CKumar,
Sujit and Charles, 2018).
The Customer Gap: The gap between Customer Expectations and Customer Perceptions
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This is regarded to be the difference underlying between the expectations and perceptions
of customers. This tends to result in dissatisfaction as well as disappointment within the
customers. In addition to this, customer gap may even cause the clients to bad mouth within
public about the organisation.
With respect to McDonald's, it has been identified that the respective fast food
organisation is doing exceptionally well within the confines of Asian nations but not within the
periphery of other countries such as United States and United Kingdom.
Conclusion
On the basis of above report, it is acknowledged that customer value and quality of
service are regarded to be 2 crucial aspects for an organisation. In this regard, it is analysed that
there are 5 dimensions of customer value which are important to be recognised by a firm. Apart
from this, it is identified that service quality has 5 dimensions, the careful application of which is
key to facilitation of effective business practices. Besides this, it has been determined on the
basis of The Gap Model of Service Quality that there are generally 5 types of gaps that should
be ascertained, examined and managed by a company in an effective manner. This is important
as it provides assistance to the corporation in maintenance of high quality within the premises of
organisation. Furthermore, it is assessed that by providing high quality offerings to customers at
market place, an enterprise aims to gain satisfaction from people. Knowledge Gap, Policy Gap,
Delivery Gap, Communication Gap and Customer Gap has been discussed in detailed way.
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CONCLUSION
It has been concluded from given report that customer value is one of the necessary
aspect and related to satisfying the needs and wants of consumers in an effective manner. In this
report, different dimensions concerned with the customer value has been discussed along with
the ratings. The ratings has been given as per the effectiveness of dimensions in significant
manner. Service quality is comparison of the expectations of service with the perceived
performance level. It is necessary that quality of service needs to be better for attracting the lathe
number of consumers and also gaining the competitive benefits effectively. The different of
service quality has been studied like Tangibility, Reliability, Responsiveness, Assurance,
Empathy. These all dimensions plays necessary role in service quality. The gaps in service
quality SERVQUAL has been studied with through using different gaps in services.
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