Group Class

:1 : CMU 7A

ORG 6130 Organizational Behaviour

I HC QUC GIA H NI TRUNG TM PHT TRIN H THNG

I HC CALIFORNIA MIRAMAR HOA K

ORG 6130 ORGANIZATIONAL BEHAVIOUR GROUP WORK

McDonalds Attempting to Regain Its Effectiveness?

In 1955, Ray Kroc opened the first McDonald's restaurant in Des Plaines, Illinois with golden arch and red brick walls - white. Revenue for the opening day is $ 366.12. On this day, McDonald's has over 32,000 restaurants in 117 countries worldwide with about 1.7 million employees, serving over 60 million people per day. Over 75% of McDonald's worldwide owned and operated under franchises Popular dishes are their french fries, Big Mac, Quarter Pounder, Chicken McNuggets and McMuffin Egg. Question 1: How can McDonald's use its powerful brand name to help improve its effectiveness? McDonald's brand has become most widely recognized and built thousands of restaurants with golden arches M. They account for 42% share in the U.S. hamburger market and has expanded operations to markets in over 120 countries, serving about 5 million customers every day with traditional dishes such as French Fries, Happy Meals, Big Mac, Egg McMuffin. The strength of the brand is formed based on ability to read trends of the environment and environmental changes as required. McDonald's wanted to give consumers what they want and that is the business motto "the best quality at a moderate price". However, McDonald's also faces the problem, they can not take advantage of the brand as well as beyond the traditional products as hamburgers and fries while efforts to introduce pizza, cake fajitas, pasta, chicken fry, and low-fat sandwiches at McDonald's have all failed. Simultaneously, they also reduced the market share because can not capture the new market segments while Americans tend to eat out more. Besides, McDonald's also faces a problem of product quality as more and more complaints that the menu they have all the foods that cause obesity as well as issues of quality management in building more

Group Class

:1 : CMU 7A

ORG 6130 Organizational Behaviour

and more shops, but not carefully check the quality of products they serve. In a survey for Restaurants & Institutions magazine in which 2,800 consumers graded chains based on the taste of their food, McDonald's ranked 87 out of 91. The efficiency of an organization is often judged by the achievement of the targets set out, usually expressed by brand, branding, sales, profits, market share, as well as the use of available resources organizations to create the output. In addition, the efficiency of the organization was also assessed by the satisfaction of interest groups. In this situation of McDonald's, improving the efficiency of the organization is to focus on satisfying the needs and expectations of interest groups, including internal groups(the employees and managers); linking group such as customers, shareholders, suppliers, external groups (the government and the community) Towards the employees: Performance of individuals is the basis of performance of the organization. One of the reasons why McDonald's was underestimated because the rate of turnover higher than average so they should study to work out a appropriate program of evaluation of job performance, pay and bonus. The aim is to increase motivation to work of employees from which to raise the efficiency of work, which is closely related to the quality of customer service, improve the satisfaction of customers. Besides, they need to focus on employee training, ensure compliance processes to ensure product quality and service quality, staff training and multi-skilled sectors to reduce salvation, boredness that leads to high employee turnover rate. Towards the customers: Firstly, McDonald's need to retain the existing customers and expand market by capturing the trend that more and more Americans are eating out and attract them by maintaining its strong brand for yourself, do well the basics of a great brand. It is to diversify the menu to suit all customers of all ages while still retaining three factors of quality, good taste and temperature of thefood. Besides, they need to improve their quality by strict quality management of the restaurant as the food quality, speed of customer service through research and surveys to identify the expectations the needs of all kinds of foods during the day for pre-processing. All the restaurants need to be clean and neat. Along with other fast-food system, McDonald's also facing complaints of customers that their menu is full of foods that cause obesity. Therefore, they should enhance the application of technologies for research and creative products with healthy, nutritious

Group Class

:1 : CMU 7A

ORG 6130 Organizational Behaviour

menus and also to study taste and eating habits in each region, each country, each region to make the dishes to suit each geographic area. In addition, McDonald's should use the diffentiation strategy to raise market share, and that's the McCafe. The progress of science and technology also opens a new era of wireless networking. McDonald's is able to capture this trend and expand the application of wireless technology in the store "Hot Spot" to attract younger customers and modern needs. A customer that cannot be ignored is children, which is one of the largest customer group of McDonald's. Cultural branding "funny" of the McDonald is wellknown by children. Focusing on children is a sustainable business strategy, by children is the best motivation to drag the whole family to McDonald's at the same time these children will be the future clients. Maintain and develop loyal customers are children today, McDonald's has been there ready for a next-generation customers. Towards the stockholders: Because the USA domestic market has saturated with fast food, McDonald's needs to expand its operations into full potential overseas market, especially in developing countries because these countries are stages of economic development, technology, acquiring the fast food trend of the developed countries, while McDonald's has the advantage when the number of stores in foreign countries many times larger than competing firms. Besides expanding the market, McDonald's can also take advantage of the brand is widely recognized for her to expand the business into other commodities, products apparel and souvenirs associated with brand and the golden arches M. In fact this is a business strategy has brought a growth in revenue for them. In addition, they can also expand its real estate business because McDonalds owned the stores in the prime location, convenient transportation and easily identifiable. In fact the revenue from rentals of stores larger than the franchise fee. McDonald's has also increased cooperation with Freddie Mac in the mortgage business and trading land with www.loopnet.com site. Along with the development of information technology, especially the Internet, the traditional approach to customers such as television, newspapers, banners have become less effective, so McDonald's should take advantage of advances this, use the Internet as a promotional tool and marketing effectiveness. Also, they can develop online businesses such as receiving and processing orders. Towards the administration and community:

Group Class

:1 : CMU 7A

ORG 6130 Organizational Behaviour

Outcry by the fast-food products is increasingly widespread, McDonald's is committed to be the chain serving nutritious and healthy food. Simultaneously, they also need support and funding for health care programs and community environmental protection by governments and other organizations. Thus, by satisfying the interests of stakeholders, McDonald's can achieve the goal of expanding the brand, increase sales, increase profitability and market share development. That is the manifestation of improving their efficiency. Question 2: Are quality and taste important to you when selecting a restaurant? Explain. The restaurant business is supplying food to customers, in other words, this is a major supplier of food products and customer service. Therefore, the quality and taste is the most important thing when choosing a restaurant. Quality of a restaurant is defined by achieving or exceeding customer expectations based on the commitments of the restaurant. Benefits of food and service quality is that customers return and recommend the restaurant to others. It can be said that cooking is an art. Some foods can be processed into delicious dishes, while some other formula can turn them into very bad food. Food quality was assessed by comparing with the standards of food which are normally committed by the restaurant and described on the menu. The food quality should be made from raw materials quality, recipes and processes, clean, has all the ingredients, flavors and elements of the appearance such as shape, size color as well as safe for consumers. Food quality food of a restaurant chain also is represented by the stability at every restaurant in the system and every time. Customers do not just pay the money to buy food in the restaurant, they also pay for the service, so service quality is also part of a quality restaurant. Service quality is represented by the service speed and courteous attitude, always listening to customers, in addition, the service can be friendly. Quality and taste of food and service quality are the two determinants of a quality restaurant. Customers rarely accept the lack of a restaurant in the two factors on the quality. Sometimes, a restaurant with a beautiful location and stunning decoration also influence the choice of a restaurant for the first time. However, the quality and taste will

Group Class

:1 : CMU 7A

ORG 6130 Organizational Behaviour

determine whether the customer would come back to the restaurant and recommend it to friends or not. Question 3: What environmental forces are the most different as we enter the decade of 2009 to 2019 when compared with the 1950s and 1960s? Environment of every organization is inclusive the two main factors: macro environment, including economic circumstances and markets, technological innovation, political conditions, legal, social, and cultural and social environment; and micro environment , including customers, competitors, suppliers and distributors. Organization's environment is always changing that impacts on activities of the organization. When comparing the decade 2009 2019 with the 1950s 1960s, we can see that the economic situation and market, advances in technology, customers and competitors are the environmental forces that have significant changes. Economic circumstances and the market: Political forces have reduced the barriers of government on trade together with advances in science and technology. All these forces have spurred the trend of globalization that is occuring deeply and widely in the whole world. This is an opportunity for McDonald's market expansion into other countries, but also creates challenges when the fast food chains may also enter markets where McDonald's is holding to gain market share for themselves. Technology: Advances in technology have allowed the products to be made with lower costs as well as the increasingly short life cycle. So McDonald's should require constantly research the market and the new menu with dishes plentiful to meet the constantly changing needs of customers. Social issues: Health With economic development, living standards have increased a lot and more and more people pay attention to their health. McDonald's also realized that and tried to adjust. However, the outcry for that fast food is not good for health. According to a report by the World Health Organization, the fast food causes obesity not only for children but also as one of the causes of cancer. Thus, health problems have become major obstacles on the path of McDonald's development. And more customers are coming with more healthy food such as Subway's sandwiches or mashed potatoes from KFC.

Group Class

:1 : CMU 7A

ORG 6130 Organizational Behaviour

Customers : Consumers' tastes are always changing and difficult to grasp. In addition, customers in the region, various countries also have different tastes. This requires them to invest in research and monitoring needs of the market to make the menu appropriate to the needs of consumers. In addition, they also need to strengthen quality control of the restaurant to meet the increasing demands of customers. Competition: McDonald's was rated the lowest in the fast food system, lags behind rivals such as Burger King, Wendy's and Subway and ranked No. 87/91 in a survey by the magazine Restaurant and Organizations based on food taste. These companies focus on providing high quality fresh food, hotter with the lower prices and better services, faster. Meanwhile, McDonald's had to close over 700 stores around the world due to inefficient operations. This shows that McDonald's is no longer in unique position as the 1950s - 1960s. If McDonald does not adjust to fit to the changing competitive environment, it will eventually be defeated, and competitors will replace McDonald's. Thus, the environment forces are always changing and increasingly complex, this demands that McDonald's must always pay attention to make adjustments to suit the change in order to maintain and improve performance and effectiveness of its operations.

GROUP 1 MEMBERS
No. 1 2 3 4 5 Name Phm Gia Bu Ng Th Kim Chi Tng Vn Hi Nguyn Thu Hin Phng Quc Thnh Email baupg@plc.com.vn ntkchi83@yahoo.com haitv@plc.com.vn nthuhien@savills.com.vn phungquocthanh@gmail.com