McDonald Restaurant Research Paper 2022

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MCDONALD’S RESTAURANT
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Executive Summary
McDonald's company is the largest international fast food restaurant with more than
30,000 restaurants in 121 countries globally. Affiliates, twenty-eight operate Fourteen percent
of the stores by the company, and franchisees operate fifty-eight percent. The company was
founded in 1955, and it serves over 70 million customers in a day (Ang, 2017). The company
has expanded into foreign markets through franchising and joint ventures. It uses a
centralized international structure in its operations to ensure top quality services are offered.
Its operating strategy relies on high consistency, relationship building with its franchises and
vendors innovatively to enhance the operating system and, the introduction of new goods.

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Table of Contents
Executive Summary.................................................................................................................2
Consumer value propositions..................................................................................................4
Website Establishment.........................................................................................................4
Pricing of commodities.........................................................................................................5
Location.................................................................................................................................5
Product Diversification........................................................................................................5
Outsourcing...........................................................................................................................5
Process Map for McDonald.....................................................................................................6
Impact of Blockchain in Supply Chain Performance...........................................................6
Relationship Between Service Quality and Profitability......................................................8
Challenges Faced by McDonald’s Restaurant.......................................................................9
Gaining Industry Adoption.................................................................................................9
Lack of Transparency..........................................................................................................9
Slow and Inaccurate Services............................................................................................10
Increased Competition.......................................................................................................10
Recommendations..................................................................................................................10
Conclusion................................................................................................................................12

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Consumer value propositions
Delivering and creating a value proposition is a vital issue that McDonald has
considered in its planning strategies. Izquierdo-Yusta, et al. (2019), stated that currently,
there is a high level of competition and profound changes in the market and technology,
making it hard for a company to deliver quality products hence the need to focus on
delivering value that customers require. The difference in the environment and customer
experience also changes the value proposition that the customers need. McDonald's restaurant
has invested in marketing research to gain deep customer insights to shape their development
plans. Value can be created from different elements such as price, location, and quality.
Besides, companies are responsible for maintaining value based on their shareholders and
strategies.
Website Establishment
McDonald’s company has recently developed a website that links management and
consumers. The restaurant has been able to post all its information on its official website to
assist consumers. When consumers order goods, they are tracked using the website hence
ensuring the secure delivery of goods they requested for. Windler, et al., (2017, pgs. 173-
186), argued that all shipping and the cost of products is posted on the website making it easy
for customers to pay and order goods of their desire. Also, through the website, consumers
can enquire about a product and also given immediate feedback when they need clarification
about an item. This move has helped the management to efficiently communicate with their
customers hence facilitating business to grow and expand. The website has enabled the
company to reach a broader market hence outdoing its close competitors.

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Pricing of commodities
For the company to be able to reach a large number of customers, they have decided
to cut down on the prices of their products. Many of their competitors used to offer affordable
foods; hence they attracted a large number of consumers. This has also made McDonald's
company lower its prices as its competitors to attract more customers. Many people globally
are middle and low class; therefore, they can afford only well-priced products hence the need
for the company to price its commodities well (Shamar, et al., 2018, pgs. 446-456).
Location
McDonald’s company is strategically located close to its customers to offer
commodities to them. (Priem, et al., 2018, pgs. 22-31). Many of its stores are centrally
located in cites that have a well-developed transport system to enhance the faster delivery of
commodities. Furthermore, in large cities, there are a high number of populations that provide
a ready market for the foods offered by the restaurant.
Product Diversification
McDonald's offers a wide range of products such as hamburgers, cheeseburgers,
French fries, among other products (Namin, 2017). The variety of products provided provides
a wide range of commodities for customers to choose from. For example, in India, they don't
eat beef; therefore, the firm introduced the maharaja burger, which was liked by many
Indians hence capturing a wider market. They have also introduced kids’ dresses, toys, and
captivating things for kids so as diversify the chances of risks occurring. Many kids visit the
restaurants and enjoy the services offered hence providing revenue to the firm.
Outsourcing
The organization has opened over 100 stores in many different countries and
employed many workers to reach a large number of consumers. The workers are paid well to

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ensure they provide quality goods to their customers. Many people are attracted to high-
quality products. Customers are served fresh, affordable foods and of good quality, making
them remain loyal to the restaurant (Meredith and Shafer, 2019).
Process Map for McDonald
Impact of Blockchain in Supply Chain Performance
Blockchain technology is regarded as a tool for sustainable growth in the supply
chain. The strategic partnership between the buyer and supplier is vital to facilitate the
success factors in supply chain management. Rapid joint decision making and sharing of
information are essential elements in the supply chain (Karamchandani, et al., 2019).
Recently, there is increased use of money, such as bitcoin, which has increased the usage of
money both in online and offline markets. This money is based on blockchain technology.

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Blockchain has assisted in information transparency and immutability to support reliability
and sustainability, which are needed for supply chain collaboration. McDonald's restaurant
ensures all participants see relevant information, including transaction history. The
information immutability prevents data and information collected and stored by the firm from
being modified or deleted. This information may contain essential files that are vital to the
operations of the company. Competitive advantage cannot be easily achieved without the use
of technology in the production, distribution, and marketing of commodities.
Blockchain is a database system that distributes and records transactional data and is
secured by cryptography. The restaurant serves 69 million customers daily in over 36000
restaurants across many countries (Kshetri, 2018, pgs. 80-89). This is achieved through
maintaining a sustainable supply chain management. The company's long-term supply chain
strategy created by Ray Kroc has played a significant role in its success. Many of its suppliers
have worked with the company for a more extended period. This has assisted the restaurant
with nature trust and has supported the firm in working closely with suppliers and create
innovations and inventions. The company tracks its products and shares data with its
franchise owners and partners. Tracking ensures the safety of goods while on transit hence
meeting consumer's needs and wants.
Blockchain enables trustless networks allowing firms to transact without physical
contact. Blockchain can validate the identities of individuals by using digitally signed
documents to help monitor the transaction process. Francisco and Swanson (2018, pg. 2),
stated that business is done online and the goods transported to the premises of the company
without physically seeing each other. This process assists in boosting the growth and
efficiency of the supply chain since the manual way is tiresome and time-consuming.
Furthermore, it ensures consumers receive a steady flow of goods from the restaurant, which

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meets their requirements. Therefore, nanotechnology has impacted positively in supply chain
performance and should be embraced by several companies.
Relationship Between Service Quality and Profitability
With the use of blockchain in supply chain management, the restaurant's service
efficiency has improved the productivity therein. The Company and its franchisees
purchase from various individual vendors produce, materials, supplies and other products.
High quality requirements and product specifications have been developed and applied by
the organization (Heifa, 2019, pgs. 83-90). The Organization has quality centers across the
world built to help they follow the high expectations. The method of quality control
includes not just regular sample assessments but also on-site visits to suppliers. A quality
control council, consisting of technological, protection and supply chain experts from the
organization, offers regional strategic guidance on all facets of food quality and health.
The Business is now collaborating closely with manufacturers to promote creativity,
maintain quality practices and accelerate continuous growth. The Business frequently
partners with manufacturers to optimize size, supply chain technology, and risk reduction
approaches against a long-term objective of maintaining sustainable, stable food and paper
prices. Distribute goods and services to McDonald's stores, individually owned and run
fulfillment centers, licensed by the Board. Additionally, restaurant workers are educated in
appropriate packaging, handling and food preparation

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Challenges Faced by McDonald’s Restaurant
McDonald's management is faced with problems since the replacement of the CEO
of the restaurant. Blockchain can deliver huge savings by improving the operational
efficiency of a company. Besides, challenges arise with emerging technology.
Gaining Industry Adoption
This is one of the most critical challenges that determine the success of blockchain
technology. In the supply chain, a strong network impact is caused as stakeholder
acceptance exceeds a critical mass. When more and more players invest in the supply
chain, blockchain becomes increasingly essential and grows as a business-standard.
However, at first, having stakeholder participation would be challenging due to varying
degrees of digital preparation and the initial need to understand the shared advantages of
blockchain-based cooperation. This can be particularly difficult as there are existing
procedures, rules, and legislation regulating various facets of the sector because customers
would experience costs of transitioning from existing structures to merging with modern
systems to practices.
Lack of Transparency
McDonald's company has been faced with reputational challenges that arise from a
lack of transparency. Some few years back, an ill-judged illegal case saw the restaurant acting
against a small environmental group. The movies of super-size me said that the company
was promoting bad health, poor ecological practice, and food that was disgusting. There are
many operations in the restaurant, which may be harmful to people's health, yet they do not
disclose such information (Dixit, 2017, pgs. 870-875).

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Slow and Inaccurate Services
The fast-food restaurant, through its CEO, said it introduced many items last year,
such as Wraps. They slowed down the services offered by the restaurant and inaccurate
orders. The menu of the restaurant was a bit complicated, and it did not serve a large number
of people due to the lack of variety of products. Its rivals continued offering high-quality,
affordable services hence attracting more customers in their company compared to
McDonald's.
Increased Competition
The restaurant is faced with stiff competition from other fast-food restaurants such as
Wendy's Burger King and Taco Bell. According to Chen, et al., (2020, pgs. 1-27), the
restaurants have invested more in customer service and menu variety. They provide a variety
of goods at affordable prices hence attracting more customers to the company. Furthermore,
they provide high-quality customers as compared to their closest rival, the McDonald's
company. Good marketing strategies have assisted the company in reaching a wider market
and outdoing its close competitors. Therefore, for the company to become successful, it
should consider reorganizing its plan and also offering a higher wage rate to employees to
provide high-quality services to customers.
Recommendations
To improve customer service, McDonald’s should train its employees. Training is
essential. Being ignorant of the employees’ occasional training is cutting off a necessary
element in the organizational working formula to achieve greatness. McDonald’s should
train its employees to inform them of the importance of quality and customer service.
Customer services cannot be improved through advertising; it is enhanced through daily
improvements to ensure employees are keen and up-to-date in the company's activities.

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Products should have higher quality and be enhanced with new and fresh additives.
McDonald's should aim at standardization and customization of its menu to attract and
connect with more customers in different markets.
To be competitive, McDonald's should improve the viability of its business
through continued global expansion, particularly in potential markets (Ceil, 2017).
Likewise, the corporation can decrease risks through the development of new products and
exploring new industries associated with fast-food restaurants. McDonald's should have
international strategies giving attention to large cities of the world to attract more
customers. McDonald's restaurants are very few in Asian potential markets. For instance,
Japan is the only country that has its restaurant in the whole of Asia. Compared to China,
which is known as the big world market due to the high population, China is the ninth
country that has many McDonald's restaurants with about 900 in total. In contrast, the U.S
has approximately 1500 restaurants. Thus, the company should develop more restaurants
in Asia to improve its competitive advantage.
To empower franchisees, Mcdonald’s should embrace Self-service tools for local
marketing. Since franchisors are not enabled to deliver direct individual help, there is a need
to allow franchisees to through online marketing solutions as a self-service local marketing
tool. Franchisees will be able to do online marketing, both locally and globally, through
reliable brand identifications. The company should also have a sound marketing system to
enable franchisees to do marketing anytime, such as through emails, customer events, or
menu items. They should ensure that brand sections are limited to ensure the provision of
franchisees with customized information that serves their interests (Banerjee, 2018pgs. 69-
98). To provide timely information to the franchisee, McDonald's should incorporate social

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media in its operation. This will make communication easy and faster. The sharing of
information by franchisees will be less costly and convenient.
Conclusion
The McDonald’s restaurant has been successful in the maximization of profits while
minimizing cost. The company values its customers much and aims at satisfying their needs.
Furthermore, the introduction of blockchain technology in the industry has played a major
role in its success. Examples include establishment of Websites by the restaurant which
connects both customers and the management hence steady operation and also the tracking of
products to ensure they reach the customer’s location securely. Despite the challenges faced
by the management, the company has been able to thrive and offer quality services hence
achieving competitive advantage.

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