Comprehensive Analysis of McDonald's Service Management and Strategy

This report provides a detailed analysis of McDonald's service management practices. It begins with an introduction to services and their characteristics, followed by a deep dive into McDonald's service blueprint, examining its components and potential failure points. The report then explores the role of technology in McDonald's operations, including the EPOS system and Google Maps, while also addressing the ethical implications of technology use, such as tracking and privacy. Performance and service capacity management are evaluated through the lens of a balance scorecard, assessing financial, customer, internal processes, and learning/growth aspects. The report concludes with recommendations for improvement, such as multi-route drop planning and enhanced employee communication, and a discussion of service capacity planning. The report emphasizes the importance of trained staff and efficient service delivery to enhance customer satisfaction and overall business performance.

Service Management
and Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
SERVICE BLUEPRINT..................................................................................................................3
McDonald’s service blueprint................................................................................................3
Fall Points...............................................................................................................................3
TECHNOLOGY..............................................................................................................................4
Role of technology.................................................................................................................4
Technology used at McDonald’s............................................................................................4
Ethical implications................................................................................................................4
PERFORMANCE AND SERVICE CAPACITY MANAGEMENT..............................................6
Balance Score Card................................................................................................................6
Service capacity......................................................................................................................8
RECOMMENDATIONS.................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
APPENDIX....................................................................................................................................11
Service Blueprint..................................................................................................................11

INTRODUCTION
Services are considered as an activity in which one party tends to offer suitable intangible
factor that does not impact the ownership and its result. For this, every service is quite different
and also has various degrees and features like intangibility and degree of heterogeneity. It is
considered as the customer focused approach that leads to deliver suitable information and
technology by focusing over the offerings of valuable products to their customers and effective
relationship (Grönroos, 2019). To carry forward this report, McDonald’s is considered which is
an American fast food company and also founded in 1940 as the restaurant chain. They establish
their business as the hamburger stand and also turned the company into a franchise. It is the
largest restaurant chain and had its previous headquarter in Oak Brook, but also moved its global
headquarter in Chicago in June 2018. The report leads to focus over the service blueprint by
analysing the fall points, role of technology with its ethical considerations, service capacity and
performance management with suitable recommendations for development.
SERVICE BLUEPRINT
McDonald’s service blueprint
Service blueprint depict as the map or picture that show the service system by which
different people are involved in delivering suitable system and also understand and deal with the
objectively (Al-Hazmi, 2020). For this, the organisation and customers also go through various
actions in order to complete the service process. For this, the service blueprint depicts the
suitable journey of customers. In this context, there will be the differences in the services which
are offered like queries of customers or missing of food from the customer orders and so on.
Fall Points
There are various failures in the service process that can be from the side of service provider
or from the perspective of customers. Hence, the suitable fall points in the service blueprint that
cannot be controlled are discussed as:
Fall points Solutions
Lack of management: In regard of having
proper answers, customers need to wait for the
contact with the customer representative of
McDonald’s as they might be dissatisfied
For this, McDonald’s tends to use online
applications and updates special column for
queries by which customers can order online
rather than placing an order on the phone.

regarding their services. Moreover, at the busy time staff members are
assigned in order to take phone orders.
Confused customers: It will be the job of
employees to properly explain what is
available for them. For this, employees need to
offer suitable information to their customers
but sometimes it would be the form of stress
among employees to provide accurate
information.
If there are too many orders for delivery, then
McDonald’s need to stop taking the orders or
explain it to their customers as it will take time
for the preparation of food. Moreover, at the
busy times they also lead to bring extra drivers
in regard of delivering food.
TECHNOLOGY
Role of technology
Technology is considered as the disrupted practice as it leads to bring various benefits for
McDonalds in an effective manner regarding the employee control and branding as it will come
with ethical considerations.
Technology used at McDonald’s
In this context, McDonald’s tends to use EPOS system (Electric point of sale) in order to
record data undertaking the contact number, address, name, amount and past orders. It also leads
to maintain record for the phone number of customer in terms of recognising suitable address
from the past orders. It also tends to develop speed for the time which is taken on the phone call
by not address it constantly (Wali, 2018). Moreover, Google maps is also being used by the
drivers in order to ensure that they are effectively heading proper address. In the takeaway
sector, most of the restaurants tends to use this service in order to delivery extreme service to
their customers quickly. In terms of decreasing the time for the service, the owners tend to offer
those drivers who can deliver food quickly.
Ethical implications
Working in an ethical manner tends to undertake difference among the wrong doing and
right factor in order to make right and effective choice. In terms of McDonald’s there are various
discussion that leads to take place undertaking the suitable ethics in order to introduce new and
effective technology in order to speed up their service procedure.

Consideration Explanation
Tracking/Privacy In order to enhance the overall productivity of
company, they can opt tracking of employees
and UPS in order to have suitable information.
For this, GPS system lead to transmit the
proper location of employees and also develop
their knowledge regarding the rights of privacy
(Fisk and et. al., 2018). Hence, McDonald’s
need to have suitable review of the laws and
legislations before undertaking the tracking
practice by which they lead to deliver services
on time.
Fraud In this context, customers need to pay for their
food online with the help of suitable
applications like Uber Eats or through their
website. Moreover, the data of customers
should be protected regarding the fraud land
activities that does not need to take place
within an organisation (Heinonen and
Strandvik, 2018). Presently, McDonalds also
have the system in which they tend to store and
keep the details of their customers regarding
the major security system in terms of having
need to protect data and information.
Development of skills Decrement in skills occur when the traditional
skills are being replaced by the machines and
that can complete the jobs of an individual. In
this context, development of skills occurs when
the employees need to be retained in terms of
developing new skills for the different job. In
terms of McDonalds, they need to use online

applications in which customers do not need to
contact the takeaway in direct manner, for this,
they also do not need counter staff. They need
to have proper development of skills in order
to complete various task like preparing food.
PERFORMANCE AND SERVICE CAPACITY MANAGEMENT
There are various ways in order to measure the performance and overall services of an
organisation including sales, cost, speed and satisfaction of customers which are discussed in the
below discussion.
Balance Score Card
It is the performance management tool which is used by various organisation in order to
manage their overall performance with the help of balance score card. For this, the overall
objective is to make or develop an effective visual for the strategy and vision for the growth and
development of company. In this context, the suitable question which has been asked regarding
balance score care to McDonald’s are:
 Finance: How much profit we are earning?
 Customer: How our customers see us?
 Knowledge and growth: How can we create suitable value and improvement?
 Internal processes: How to enhance the services?
Financial: In this, the managers and supervisors are quite motivated towards the earing
factor in order to make more profit. By considering the previous time, bosses tend to effectively
eliminate the quantity of food in order to eliminate cost and enhance profitability (Laksamana,
2020). Furthermore, it tends to develop the result for the loss of customers so this system need to
be changed in order to have proper growth and development.
Customer: In this, customers need to know that the delivery services which are being offered
by the McDonald’s tends to take more time for the waiting of customers. In terms of respective
company, they need to work more in order to enhance the customer satisfaction.

Internal processes: In this factor, technology is not useful in the respective company as the
technology which they use need to boost which is useful to enhance the services which are being
offered by the company (Putra and Putri, 2019).
Learning and growth: In this moment, there is not the one leader of company that leads to
develop shortage of communication that tends to slow down the services of company.
Hence, all the above discussed four factors of the balance score card is useful that leads
to develop link with each other. In this context, technology also tends to boost with the help of
multi-drop routes as it leads to increase the overall speed of the services as the delivery drivers in
order to deliver food to their customers more quickly. It represents the suitable goals to
customers regarding their overall satisfaction which has being enhanced for the development of
company (Behzad and Mirmahmood, 2019). Moreover, the another instance is “growth and
learning” that leads to look on the development of leadership of respective company as by doing
this, they lead to develop their communication in order to make things quite better and also
induces employees to perform their task with full potential quickly. It leads to mean that service
delivery is quite faster that leads to develop customer satisfaction.
For this, balance score card is quite simple and also has effective benefits like:
 It leads to enable the holistic view for the key performance to be considered.

 It also tends to enable proper alignment with strategic goals.
For this, the model also has some limitations including:
 Intensive time leads to redirect the resources from the profitable activities to enhance the
satisfaction of customer that leads to cause issues like the delivery drivers that cannot
deliver food to customers on time and after that employees tends to make food that can be
delivered effectively (Dixit, 2020).
 This model is clearly depicting the suitable goals which are required to be achieved for
the better service delivery and also does not need to explain the measures. In regard of
this, the organisation also need to think their own measures in order to achieve suitable
goals and objectives.
Hence, it depicts other performance models that can be used for EFQM which is
Excellence model and SERVQUAL in order to try and enhance the overall performance which is
the most common and effective method.
Service capacity
It depicts the overall ability in order to store, receive, hold and accommodate the suitable
volume. For this, the service capacity is quite difficult in order to depict their factors because of
every service in different manner (Balta, 2018). In terms of McDonald’s the service capacity
depicts the suitable number of food deliveries that leads to takeaway and also complete delivery
process within the hour. For this, the respective company, will never have the fixed amount of
customer orders as they cannot control things when the customer order food online by
considering the overall capacity which is defined as the variable.
Services depict the suitable experience and demand for the fluctuations, as there will be the
suitable occurrence at the respective company which is poorly managed (Desfitrina, and et. al.,
2019). In terms of McDonald’s human resources are the most important factor as company need
properly trained and skilled staff members in order to deliver their services on time with full
potential and efficiency. Hence, by using 4 drivers, orders can be delivered in an hour and also
give all the drivers for the chance to enhance productivity.
RECOMMENDATIONS
From the above discussion, few points are suggested to company which are:

 Provide “Multi route drop planner” for the drivers as it leads to decrease the time in order
to take time for the drivers to deliver their food.
 For this, the service capacity planning, McDonald’s need to plan for the nights like sports
or event nights which are quite busier than usual. For this, most of the employees need to
effectively use things for the couple of hours in order to enhance their service capacity
and keep things with the demand.
 Along with this, they need to appoint a leader in order to enhance employee
communication to prepare food, pack and delivery it quickly.
CONCLUSION
By considering the above discussion, it has been analysed that service management and
effective marketing is important in order to deliver their food and offerings on time by making
sure the delivery method and quality. In this context, with the help of service blueprint, suitable
fall points are identified and also get proper solution to overcome from them. moreover, effective
technology is used by the company in order to deliver their food to customers and also solve
various queries. In this context, service capacity is the important variable which is being used in
order to enhance the capacity which is being depend on the demand. In this context, suitable
recommendations are also given to company for having proper growth and development.

REFERENCES
Books and Journals
Al-Hazmi, N., 2020. The effect of total quality management on marketing educational services in
Saudi universities. Management Science Letters, 10(10), pp.2329-2336.
Balta, S., 2018. The influence of internal marketing on employee satisfaction in the service
industry. Business Management Dynamics, 8(1), p.12.
Behzad, H. and Mirmahmood, S., 2019. Investigating the Impact of Supply Chain Management
and Marketing Strategies on Organizational Performance. Journal of Economics,
Management and Trade, pp.1-11.
Desfitrina, and et. al., 2019. Good Service Strategies Affect Competitive
Advantage. International Review of Management and Marketing, 9(6), p.135.
Dixit, S.K., 2020. Marketing Gastronomic Tourism Experiences. The Routledge Handbook of
Tourism Experience Management and Marketing, pp.322-335.
Fisk, R.P and et. al., 2018. Design for service inclusion: creating inclusive service systems by
2050. Journal of Service Management.
Grönroos, C., 2019. Reforming public services: does service logic have anything to
offer?. Public Management Review, 21(5), pp.775-788.
Heinonen, K. and Strandvik, T., 2018. Reflections on customers’ primary role in
markets. European Management Journal, 36(1), pp.1-11.
Laksamana, P., 2020. I will always follow you: Exploring the role of customer relationship in
social media marketing. International Review of Management and Marketing, 10(3),
pp.22-28.
Putra, I.W.J.A. and Putri, D.P., 2019. The mediating role of relationship marketing between
service quality and customer loyalty. Journal of Relationship Marketing, 18(3), pp.233-
245.
Wali, A.F., 2018. Customer Relationship Management and Marketing Effectiveness: A
Comparative Consumer Study. Paradigm, 22(2), pp.101-124.

APPENDIX
Service Blueprint