McDonald's Service Concept and HRM: A Comprehensive Analysis Report

This report provides a detailed analysis of McDonald's service concept, examining its operational strategies, including pricing, placement, and promotion. It explores the company's service design, innovation, and encounter aspects, highlighting how these elements contribute to customer satisfaction. The report also investigates McDonald's human resource management practices, addressing issues such as employee turnover, job involvement, and conflicts, along with their impact on service quality. It further identifies key areas for improvement, such as focusing on service encounters, setting benchmarks for service operations, enhancing employee involvement, and continuous service improvement. The analysis draws on relevant literature and provides strategic recommendations to optimize McDonald's service delivery and overall business performance.

McDonald’s and Its
Service Concept

 World’s leading food service retailer that
operates its business in more than 120
countries through more than 35000
restaurant.
 Founded on 15th May, 1940 in California
(USA).
 More than 210,000 employees
 Net Profit of the Company US$5.924 billion
(2018).
 Revenue of the company is US$21.025
billion (2018).
About McDonald’s

Products of McDonalds
1. Hamburger
2. McDonald Quarter
pounder
3. Filet-O-Fish
4. Chicken Sandwiches
5. Snack Wraps
6. French Fries
7. Shakes
8. Sundaes
9. Pies
10.Soft drinks
11.Coffee

Price
 McDonald’s is known for its reasonable pricing strategy
which is competitive in the market.
 Price has been set by McDonald’s in such a manner that
gives value of money to the customers (Raju, Singh, &
Tariyal, 2015).
Place
 Target urban and semi urban areas.
 Malls and shopping centres.
Promotion
 Provide exciting offers like combos and discounts.
 Doing promotion through social media and
advertisements.
Price, Place and Promotion

 Service concept is defined as how and
which type of service deign helps and
mediate between organisational intent and
customer needs (Johns & Van Doren, 2010).
 Service concept applies three terms i.e.
service design, service innovation, service
encounter (Foxall, 2013).
Service Concept

 Service design helps to create new value or add
value in existing services to fulfil customer’s
demand and their expectations.
 Service innovation helps to bring innovating and
technological changes in service processes that
helps the organisation to improve their services.
 Service encounters is the interaction between
employees and customers that helps the
organisation to bring relevant changes in service
after receiving the feedback and suggestions of
customers.
The three terms of Service
Concept

 Facing high level of employees turnover.
 The job involvement of people in the
organisation is not up to the mark.
 Conflicts of between manager and staff
effect the quality of services.
 Low salary.
 Inefficient caring facilities to employees.
Human Resource Management
in McDonald’s

 Known For its innovative changes in
services process.
 Focuses on food processing methodology to
reduce the waiting time and cost of the
product i.e. Hamburger (Gummesson,
2014).
 McDonald provides relevant information
related to its product, price and offers.
 Modern renovation in the restaurants
provide best services to the customers.
McDonald’s Service
concept

 Employees and Staffs are directly related
with the quality of services
 Better facilities and compensation to
employees leads to better service quality
 Employee Plays a crucial role in service
encounters (front-end operations) while
interacting with Customers
 Feedback of customers generally received
by employees which is crucial for bringing
change in servces
HRM and Service Concept

 Service Encounter: Interaction helps the organisation
to improve the services for the customers.
 Setting Benchmark for Service operation: It helps
the organisation to compare the service quality with
competitors and improve when needed changes.
 Reducing the issue of long queue: The
organisation need to reduce the issue related to long
queue of customers in the restaurants.
 Resolving the issue of Staff and Employees:
McDonald should care about it employees to reduce
the turnover and retain the existing employees and
attract the new employees with attractive wages.
Need To Focus

 Need to focus on service encounters
 Setting Benchmark for Service operations
 Employee involvement is crucial for quality
services
 Continuous improvement in the services
Recommendations

 Gummesson, E. (2014). Productivity, quality and
relationship marketing in service operations: A revisit in
a new service paradigm. International Journal of
Contemporary Hospitality Management, 26(5), 656-662.
 Johns, P., & Van Doren, D. C. (2010). Competitive
intelligence in service marketing: A new approach with
practical application. Marketing Intelligence &
Planning, 28(5), 551-570.
 Raju, N., Singh, S., & Tariyal, M. (2015). Service Quality
of McDonald's. Global Journal of Enterprise Information
System, 7(3).
 Foxall, G. (2013). Marketing is service marketing.
In Marketing in the Service Industries, 14(8), 7-12.
References