McDonaldization of the Service Industry

This assignment delves into the concept of McDonaldization and its application to the service industry. It explores how principles like efficiency, predictability, calculability, and control, often associated with fast-food chains like McDonald's, influence service delivery, customer satisfaction, and overall quality in various sectors such as hospitality and retail. Students are expected to analyze scholarly articles and real-world examples to understand this phenomenon and its implications.

Improvement of Quality in service
industry through the
understanding of Mcdonaldization
and physical

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................2
Background of the restaurant.......................................................................................................2
Organizational structure...............................................................................................................2
Organizational culture and climate..............................................................................................2
Importance of service quality......................................................................................................3
Aim..............................................................................................................................................3
LITERATURE REVIEW................................................................................................................4
Servuction Model.........................................................................................................................4
Servcvicape- Bitner’s comprehensive stimulus response model.................................................4
Four potential quality gaps..........................................................................................................5
Physical setting............................................................................................................................6
Mcdonaldization..........................................................................................................................7
RECOMMENDATIONS AND CONCLUSION............................................................................8
REFERENCES................................................................................................................................9

EXECUTIVE SUMMARY
In a business organization, management and employees have to adopt the changes that are
taken place at the work environment. Sometimes, it become difficult for industries to implement
the changes in an efficient manner so they have to form some strategies that will help all the
workers in order to maintain their performance. Quality management system is the most common
change which is going to implemented by service industries. In this, a structured approach is
followed by the managers so that overall developments and improvements can be ensured
effectively. By using this kind of strategy, an industry will be able to achieve their goals and
fulfil all the requirements of their customers. This type of quality service plays an important role
in retaining their consumers and through this loyalty among people can be enhanced. The present
report is based on Tsui Wah Restaurant which is a tea restaurant in Hong Kong. They provide
24hours services to their end users and along with this they are focusing on their service quality
management so that their overall brand image can be improved. In this, servuction and
servcvicape-Bitner’s stimulus model has been used by manager so that consumer’s experiences
can be evaluated and high revenues can be generated. Along with this, efficiency model is also
used by food chain in order to identify the ratio between inputs and outputs.
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INTRODUCTION
Background of the restaurant
Tsui Wah Restaurant is a food chain industry which perform their operations in Hong-
Kong as they have approx. 26 branches in respective place and they provide their services 24
hours which is varying from branch to branch (Mitra, 2016). This is a tea restaurant which is
owned by Tsui Wah Holdings Limited. It attracts many tourists and celebrities so their brand
image is good at domestic market. In 2012, it became listed on Hong Kong Exchanges and
Clearing Limited. The food which is offered by industry fulfil the needs and demands of people
as they charge less price as compare to other competitors. They are focused on their target
audience such as middle class people, travellers in Hong Kong and so on. Through this, they can
make their unique image at marketplace as compare to their rivals.
Organizational structure
The food industry followed an appropriate organizational structure so that roles and
responsibilities of different people can be accomplished. By following this, tasks can be
allocated and resources can be utilised in more effective manner so that their specified goals can
be achieved. Here, functional structure has been followed by Tsui Wah Restaurant in which they
form a group of employees according to their specialised area (Talib, Rahman and Qureshi,
2013). There are some functions which are included like sales, marketing, production, human
resources and finance. The communication plays an important role in this type of structure as if
communication is get established among different departments then specified objectives can be
accomplished. Human resource area manage all the employees of firm, marketing area perform
some promotional and advertising strategies so that their brand awareness can be improved.
Along with this, production department manufacture the goods and services so that they will be
able to fulfil the needs and demands of the consumers. So, by following functional structure the
tea restaurant can perform well at their workplace.
Organizational culture and climate
Organization culture is related to the values, beliefs, attitude and assumptions of people
who are working in the environment. These all values can affect the workers in an enterprise. For
this, each and every firm adopt a unique culture which set some boundaries for the staff members
so that they can meet the organizational needs (Chen, 2012). Here, Tsui Wah restaurant emphasis
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on the people and competitiveness. Organizational climate is related to some properties which
can influence the behaviour of all workers and due to which they will not be able to perform
well. Here, people oriented and goal oriented climate has been followed by food chain. Through
this, the firm will be able to achieve competitiveness at the marketplace.
Importance of service quality
The service quality plays a vital role in the success of an organization as through this they
can sustain their competitive advantage. There are some factors which can help an enterprise in
improving the quality of their services (Wu and Ko, 2013). Some of these are like
innovativeness, technological advancements and so on. Here, for the Tsui Wah restaurant this is
very important as through this customer’s satisfaction can be increased, brand image can be
enhanced, brand loyal people can have retained. For this, it is necessary to identify the needs and
demands of their consumers then only quality of the services should be improved.
Aim
The present aim of this report is “To identify the improvement of quality in service industry
through the understanding of Mcdonaldization and physical”. The overall study is conducted on
Tsui Wah Restaurant which is based in Hong Kong.
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LITERATURE REVIEW
Servuction Model
According to the views of Wang, Chen and Chen (2012) this model has been used by the
manager of food industry so that all factors can be identified which affects the customer’s
experiences There are some visible and invisible factors which are the main components of this
Servuction model. Invisible are related to the rules, regulations, procedures on which an industry
is based and they perform their operations. These are not visible to the service users but they can
affect their behaviour. On the other hand, there are some factors which can directly affect their
experience like serviscape, service providers and other customers. Serviscape is related to the
physical evidence that are used by an enterprise in order to design such kind of environment.
These physical evidences help the firm in accomplishing their goals effectively. Service provider
is the one who provide core products of company to their customers so that their expectations
can be fulfilled. Some other consumers are there like first is the one get benefits through the
experiences and second is the one who are the sub part of the first customers.
It has been analysed by Tsiotsou and Wirtz (2015) that customers are an important part of
the overall service process. So, it is the responsibility of manager to focus on the requirements
and expectations of people. These all components create a good experience for the consumers
who are adopting the services of food chain restaurant.
Servcvicape- Bitner’s comprehensive stimulus response model
As per the views of Dabholkar (2015) this model is focused on the factors of physical
environment which may influence the service process that take place by the manager. The main
purpose of this stimulus model is to evaluate the behaviour of people so that organizational
objectives can be achieved in the terms of changing behaviour. On the other hand, it has been
analysed by Zhao and et. al. (2012) that servcvicape is a kind of environment where both buyer
and seller are get interact with each other. On the basis of this, Tsui Wah restaurant can add
value in the atmosphere so that consumer’s experiences can be enhanced to some extent.
Stimulus response model explain the response of all employees and consumers towards the work
environment. The physical evidence should be managed effectively by packaging the products,
flow of services and a firm can be distinguished from their competitors effectively.
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Ryu, Lee and Gon Kim (2012) Stated that ambient conditions can directly related to the
senses like sound, light and music. Due to this, their buying behaviour is get affected and they
will not be able to fulfil their specified goals. Layout design like exterior and interior can also
play a vital role in influencing the choices of people. After these, the post purchase behaviour of
an individual should also be analysed so that their requirements can be fulfilled. On the other
hand, it can also be analysed that some physical evidence is not influence the customer’s
behaviour as some social and humanistic stimuli can affect the choices of people. So, these
things should be take care by the manager of food industry so that they will be able to achieve
their goals.
Source 1: Servcvicape model, 2017
Four potential quality gaps
According to the views of Lane and Kinser (2012) business organization has to identify the
customer’s perceptions regarding to the particular services of respective firm. The gap can be
evaluated in an effective way so that manager will be able to know about the perceptions of an
individual. Their perceptions and expectations should be met then only their satisfaction level is
get increased otherwise the gap is being created. Some potential quality gaps are there like first
gap has been created between the perceptions of customers and expectations of manager. In
order to exceed the consumer’s expectations, manager of Tsui Wah restaurant should know about
the perceptions of people regarding to the services. If such kind of gap is being created, then
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service quality will not be ensured. The second one is the perceptions of manager and actual
specification, if manager will be able to identify the needs of people but if planning gap has been
created then due to this customer’s dissatisfaction can be increased.
On the other hand, it has been analysed by Symon, (2013) that gap can be created between
the quality specification and delivery services. When quality services have been ensured but due
to incompetent workforce and poor working conditions the satisfaction among people will not
get enhanced. The fourth gap is related to the delivery of services and external communication.
Due to some external factors company will not be able to fulfil the needs and demands of the
people effectively. Along with this, it has been stated by Zaman, Selim and Joarder (2013) that
company can use different marketing mix elements in order to fulfil the requirements of people
and due to this their satisfaction level can be increased.
Physical setting
As per the viewpoints of Montgomery (2016) physical environment of a restaurant is a key
factor which can help an enterprise in creating an effective perception in the minds of people.
For example, an individual came to such place in order to get some peaceful life so in this
physical environment play an important role as through this they will feel better. This is more
influential in the terms of the purchasing behaviour rather than services. On the other hand,
manager of Tsui Wah restaurant has to focus on their interior designs so that they will be able to
enhance the satisfaction among people and due to which competitiveness can be achieved. There
are some factors which are necessary in order to maintain the physical setting of the food
industry. Some of these are like layout, lighting, service staff members, price, value, food
quality, table setting and so on. By using these, an effective atmosphere can be created so that
people will be happy and then their purchasing decision can get affected in positive manner.
Wu and Ko (2013) stated that when people get happy with the current physical
environment of Tsui Wah restaurant then through this regular consumer can be converted into
loyal one which will help them in enhancing their brand image. In this, marketing department
also play their important role in order to bring out customers into their restaurants. Along with
this, customer services should be easily available to the people such place so that their
satisfaction level can be improved to some extent as this will help the firm in generating high
revenues and profits. So, it has been analysed that physical setting can help an enterprise in
attracting more people towards their services so that they can achieve high profits.
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Mcdonaldization
According to the views of Chen (2012) Mcdonaldization is a term that is used on the place
of rationalization. Rationalization is related to the replacement of values, beliefs, traditions as
motivators for behaving in the current society. This kind of replacement is occurred due to the
globalization process. As now a days, many restaurants like Tsui Wah starting to perform their
operations at international level so it become easy for them to perform their activities effectively.
Apart from this, Mcdonaldization is the way through which the principles of fast food restaurant
are going to start dominating the society. By following this the understanding related to different
aspects such as culture and climate can be increased. So, many more organizations adopted this
concept due to globalization as through this their brand image can be improved at local as well as
global market.
Talib, Rahman and Qureshi (2013) Confronted that in the process of Mcdonaldization each
task is divided into small tasks and it is broken down till its most appropriate level. Tsui Wah
restaurant can use this approach in order to perform good as compare to other competitors as the
characteristics of Mcdonaldization help the industry in order to increase the experience of
people. Along with this, there is no requirements of the skilled workers as through this labour
cost is also get reduced to some extent. When resulting task has been achieved then through an
effective method the overall tasks can be completed in an appropriate way. So, by using this a
logical and effective outcome can be achieved and they will be able to enhance their brand
image. Apart from this, it has been analysed that Mitra (2016) there are four main dimensions of
Mcdonaldization like efficiency, calculability, predictability and control. Efficiency is an
appropriate method which is used by an organization so that tasks can be completed easily. The
outcome can be assessed on the basis of quantifiable so that overall goals can be achieved
effectively. The production process should be organized effectively in order to achieve
standardisation result. Furthermore, the overall process should be controlled in an efficient way
so that desired outcome can be achieved.
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RECOMMENDATIONS AND CONCLUSION
From the above carried out analysis it can be summarized that service quality is an essential
factor which can help the firm in achieving the success at the market area. By using different
approaches like physical setting, Mcdonaldization, Servuction Model, stimulus response model
the firm will be able to gain the attention of their consumers. Through this, they will be able to
identify the current experience of the people so that satisfaction level can be evaluated and
services can be offered to them as per their choice. There are some recommendations which
should be followed by Tsui Wah Restaurant so that they can enhance their services. Some of
these are like:
Handle the emotional employee: The manager of Tsui Wah Restaurant has to handle the
emotional employees who get emotional if they will not be able to perform task effectively. It is
the responsibility of manager to conduct training and development programs at the workplace so
that their skills and knowledge can be improved. It is important as if workers will not get too
much emotional then they can have focused on their work and they will provide quality services
to their consumers.
Relationship marketing benefits: It is a type of marketing strategy through which
customer’s relationship, brand loyalty can be increased. When the relationship with the clients
are get stronger then firm will be able to know about their needs and demands. So, this will be
beneficial for an enterprise as they can get the brand loyal people which can help them in getting
success.
Efficiency model: The Tsui Wah restaurant should follow efficiency model in order to
reduce the waste material, money, time, energy so that desired outcome can be achieved. It is a
measurable concept that is used to calculate the ratio between inputs and outputs. This will be
beneficial for them as through this high revenues and profits can be achieved which can help
them in achieving success.
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REFERENCES
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attributes in the Kano model: an empirical test in the food and beverage industry.
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Dabholkar, P. A., 2015. How to improve perceived service quality by increasing customer
participation. In Proceedings of the 1990 academy of marketing science (AMS)
annual conference (pp. 483-487). Springer, Cham.
Lane, J. and Kinser, K., 2012. MOOCs and the McDonaldization of global higher education.
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Mitra, A., 2016. Fundamentals of quality control and improvement. John Wiley & Sons.
Montgomery, M. R., 2016. The McDonaldization of Psychotherapy?. Existential Analysis:
Journal of the Society for Existential Analysis. 27(2).
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environment, food, and service on restaurant image, customer perceived value,
customer satisfaction, and behavioral intentions. International Journal of
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Symons, M., 2013. The rise of the restaurant and the fate of hospitality. International Journal of
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International Journal of Hospitality Management. 31(1). pp.119-129.
Wu, H. C. and Ko, Y. J., 2013. Assessment of service quality in the hotel industry. Journal of
Quality Assurance in Hospitality & Tourism. 14(3). pp.218-244.
Zaman, S., Selim, N. and Joarder, T., 2013. McDonaldization without a McDonald's:
globalization and food culture as social determinants of health in urban Bangladesh.
Food, Culture & Society. 16(4). pp.551-568.
Zhao, L. and et. al., 2012. Assessing the effects of service quality and justice on customer
satisfaction and the continuance intention of mobile value-added services: An
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