Analysis of McDonald's Service Encounter and Managerial Implications

This report provides a detailed analysis of McDonald's service encounter, focusing on the flow of services, customer interactions, and managerial implications. It examines the service encounter from a customer-oriented perspective, highlighting the importance of emotional engagement, customer preferences, and building customer loyalty. The report also explores the role of managers in creating cost-effective products, analyzing market opportunities, and adapting to dynamic business environments. Furthermore, it discusses the impact of customer behavior, service customization, and contact personnel on the overall service experience. The analysis extends to McDonald's managerial structure, its commitment to employee satisfaction, and its strategies for maintaining brand competitiveness. References are provided to support the analysis of McDonald's marketing and service strategies, emphasizing the company's approach to customer service, product diversification, and adaptation to market demands. The report also includes a flowchart illustrating the front and back stage of McDonald's service operations.

Services Marketing &
Relationship Marketing

Table of Contents
1. Flowchart.................................................................................................................................1
2. Service encounter of McDonald's...........................................................................................1
3. Managerial implication's analysis. .........................................................................................3
References........................................................................................................................................5

1. Flowchart.
2. Service encounter of McDonald's.
Above flowchart showcases the flow of services that are offered by food industries to
their potential buyers. It mainly aids in active involvement of costumer oriented services while
undertaking production function. Organisation therefore managers time and services in such
away that it enhances its process and generates high quality satisfactory goods. Such service's
must be encountered emotionally ought to promote importance of consumers and aids in serving
them with the best possible goods (Shen, Fang and Hu, 2016). This is beneficial in eradicating
negative feelings towards McDonald's. Further, cited firm focuses on initiating effective
interactions among potential costumers to analyse their demands and preferences and likewise
take measures to fulfill them. This is useful in decreasing conflicts and generates loyalty towards
cited company.
Managers focuses in producing cost effective products which is affordable for every
consumers and enhances competition among their rivals. They tend to remain non profit
organisations which are merely consumer oriented and formulated budgeted products. Managers
has developed feedback services which is beneficial in generating perception of target buyers
towards its manufactured products (Shah and Mujtaba, 2016). Likewise, they analyze market
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Illustration 1: front stage and back stage flowchart of McDonald's
Source:Front stage and back stage flowchart of McDonald's (2017)

opportunities to create innovative designs to their manufactured products which can attract more
consumers and generates growth of the firm. Diversification is very crucial to be adopted under
every organisations because business environment is dynamic and this fluctuates demands of
buyers. To cope up with them it is necessary to customize products on a timely basis.
Understanding consumer behavior is another important characteristic that should be
adopted by managers because it reduces their stress and can provide specific information's to
encounter effective services. Further this can be done only by grouping together three parties
which is beneficial in controlling every dysfunctional activities which can enhance conflicts and
reduces reputation among buyers.
Encounter dominated by service company :- this strategy is adopted to enhance cost leadership
among their market competitors and likewise enhanced standard delivery of manufactured goods
and services to their potential buyers (Kumar, Sachan and Mukherjee, 2017). This is beneficial
for the buyers because they will be provided with high quality low price products.
Customer dominated encounter:- this enhances opportunities for the buyers to control their
services by effective customization. Under this factor McDonald's create economic products for
their buyers which fulfills their needs and provides them with complete satisfaction.
Contact personnel-dominated encounter :- this factor can be best explained by giving the
example of physician and patients. Here, consumers develop trusts among service providers and
rely completely over their manufactured items.
However, McDonald's must enhance its staffs skills and abilities by developing several
training sessions, seminars, conferences etc. to enhance their knowledge and innovativeness. By
producing effectively designed high quality products it will increase the morale and loyalty
towards its targeted buyers which will enhance its profit and growth among its competitors. Not
only this, McDonald's has even adopted a strategy of providing customer service facility in
which they can provide feedback related to any improvement or changes required under its
services. Thus, maximum usage of service encountered are fruitful for both consumers and their
targeted buyers.
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3. Managerial implication's analysis.
As mentioned above service encounters are very important to be adopted by every
business organization which is beneficial for buyers as well as managers. Managers of cited
organization must effectively interact among their target consumers to understand their needs
and preferences. However, organisational manager analyses both external and internal market to
generate information related to its substitutes and competitors strategy. They adopt the latest
technologies to enhance their production system to manufacture high quality products which can
attract more buyers towards them (Arlinghaus and et.al., 2017). Not only this, they manufacture
cost effective products which are easily affordable by every buyers to fulfill their needs and
demands.
Cited organization are known as one of the leading food sector industry in the whole
world and has located their stores at reputed locations such as- airports, malls, highways, theme
parks, tourist places and many more. This firm further aids in serving branded food products
including- Kraft cheese, Heinz ketchup, minute maid juices, nestle chocolates etc. they further
develop high quality services to enhance safety and health measures of their target consumers.
Cited firm undergo 72 safety protocols in regard to produce hygienic products. Not only this,
they adopt some training and development sessions, seminars, conferences etc. to enhance skills
and creativeness among their manufactured products.
Increase in knowledge's would encourage work efficiency among buyers and creates
innovated high quality products to attract more buyers and satisfy them completely. This
organization following effective managerial structure in such a way that it is easily commendable
and accessible (Graham, Dixon and Hazen-Swann, 2016). It departments are comprised of-
operations, finance, human resource, development, marketing etc. which performs separate
functions in order to achieve organisational goals and objectives.
Under this firm employees are treated as family members and has taken complete care
regarding their livelihood and satisfaction. On the other hand, leaders of the company guides and
motivates their subordinates at each and every level to increase their efficiency and creates
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loyalty and trust among their workplaces. They are even affiliated with timely benefits and
incentives to increase their morale. Further it gives major priority to the factors such as-
individual learning, diversity and inclusion, people- cenrtricity and organisational learning's.
There are many competitors of this company therefore, its manager adopts timely
effective technologies and creates diversified products which has still maintained its brand name
all over the globe (Heinen, Roque and Collado-Vides, 2016). Thus, effective managerial
functions are very crucial to be adopted by every business organization to enhance their
competitiveness and efficiency among their substitutes or rival firms.
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References
Shen, J. F., Fang, S. J. and Hu, Y. C., 2016. THE EFFECTS BETWEEN THE
LUXURIOUSNESS OF RESTAURANT FURNISHINGS AND RELATIONSHIP
QUALITY; MODERATED BY THE DEGREE OF INVOLVEMENT. International
Journal of Organizational Innovation (Online).9(2). p.142.
Shah, S. and Mujtaba, B. G., 2016. Contemplations for Opening the First McDonald’s
Restaurant Franchise in the IT Capital of India’s Bangalore. International Journal of
Marketing Practices.3(2). pp.33-46.
Kumar, R., Sachan, A. and Mukherjee, A., 2017. Qualitative approach to determine user
experience of e-government services. Computers in Human Behavior.71. pp.299-306.
Arlinghaus, R. and et.al., 2017. Passive gear‐induced timidity syndrome in wild fish populations
and its potential ecological and managerial implications. Fish and Fisheries.18(2).
pp.360-373.
Graham, J. A., Dixon, M. A. and Hazen-Swann, N., 2016. Coaching Dads: Understanding
Managerial Implications of Fathering Through Sport. Journal of Sport
Management.30(1). pp.40-51.
Heinen, J. T., Roque, A. and Collado-Vides, L., 2016. Managerial Implications of Perceptions,
Knowledge, Attitudes, and Awareness of Residents Regarding Puerto Morelos Reef
National Park, Mexico. Journal of Coastal Research.33(2), pp.295-303.
Online
Front stage and back stage flowchart of McDonald's. 2017. [Online]. Available through:
<http://www.smile-mag.com/?pid=artd&artid=42&magid=8>. [Accessed on 31st August
2017].
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