You are on page 1of 16

Reviewing Corporate Policy and

Strategy

Table of contents

Reviewing Corporate Policy and Strategy


Executive summary----------------------------------------------------------------------03
Introduction---------------------------------------------------------------------------------04
Task One
1. Describe Organisation
1.1 Company Overview---------------------------------------------------------04
Task Two
2. Stakeholders analysis, mission, vision, value
2.1 Mission statement-----------------------------------------------------------04
2.2 Vision statement-------------------------------------------------------------04
2.3 Core value of Tufail Restaurant and Bar----------------------------04
2.4 Main Stakeholders and their interest and purpose, value----05
Task Three
3. Best method used to develop current policy and strategy
3.1 Current policies--------------------------------------------------------------06
3.2 Policy development process--------------------------------------------07
Task Four
4. Effectiveness of current policy and strategy
4.1 How effective are they and how can you assess them--------08
5. Restaurant structure, culture and communication system
5.1 Restaurant Structure------------------------------------------------------09
5.2 Work Culture-----------------------------------------------------------------10
5.3 Internal Communication -------------------------------------------------10
Task Five
6. Recommendation & Conclusion
6.1Recommendation ----------------------------------------------------------11
6.2 Conclusion-------------------------------------------------------------------14
7. Bibliography---------------------------------------------------------------------15

Executive Summary
Samadur Rahman

Page 2

Reviewing Corporate Policy and Strategy


This assignment shows how corporate policies and strategy will be reviewed. It also focuses
on Mission, vision, values and Stakeholders and their perceptions within this specific
Organisation. It will identify current policies of organisation and developing method also
organisations communication, work culture and structure system and effectiveness. It will
also cover the changes upon recommendations.

Samadur Rahman

Page 3

Reviewing Corporate Policy and Strategy

Introduction:
Policies and strategies are very important for any business success. Hospitality is considered
The Evergreen Industry as it serves the two basic needs of a human being food and shelter,
UK is considered one of the hospitality hubs in the world. Policy and strategic management
in hospitality industry can make this industry more successful. How policies and strategy
need to review by an organisation will explain in this assignment. Though we need to choose
an organisation to explain their policies and strategy, as a successful organisation I decided to
choose a franchise McDonalds branch.

Task-1
Description of Organisation:
McDonalds is the biggest restaurant chain of fast food in the world. McDonalds runs its own
restaurants and franchises to people of local businesses.
McDonalds commercial road which is located in Borough of Tower Hamlet is a part of east
London. It is a franchise restaurant of McDonalds company with 24 Hours facility and Drive
thru .This restaurant run by 65 staff and serve around 1400 customer every day. This
McDonalds focus on the support of customer what they need and consistently pro-active and
keeps one-step ahead.
Current Issue: The main issue in this organisation is unskilled staff it just because of lack of
training and lose management system. When its busy everything got stuck and kind of mess
service.
Samadur Rahman

Page 4

Reviewing Corporate Policy and Strategy


Task-2
2a. Mission:
McDonalds mission is to make the place favourite for customers providing quick service,
good quality food, cleanliness and value of every visit.
2b. Vision:
McDonalds vision is to be the best restaurant experience of quick service and ensure every
customer is smiling on the service.
2c. Values:
Q,S,C & V summarized McDonalds values
Provide best quality, good services to customers.
Have a cleanliness environment for customers for good meal experience.
The value of food makes every customer happy and satisfied.
2d. Stakeholders Definition:
A group or party show interest in a project or an enterprise. There are two types of
stakeholders in a corporation which are primary stakeholders and additional stakeholders. In
a typical corporation primary stakeholders are its employees, investors, customers and
suppliers. Such as the government, community and trade union plays the role of additional
stakeholders.(The stakeholder strategy- Sevendsen)

2e. Stakeholders of McDonalds (C.Road):


McDonalds has many franchises around the London. McDonalds commercial road franchise
of McDonalds established in 2001.
There have internal, external and additional stakeholders in McDonalds which are following

Internal:
Employees: McDonalds employees are internal stakeholders
though they work inside of the company. They have an interest
and influence on this organisation and on its operation. That

Samadur Rahman

Page 5

Reviewing Corporate Policy and Strategy


who works for McDonalds is a stakeholder. It doesnt matter part time team member or
someone works in head department as long as companys worker.
Suppliers: Suppliers are the one of the internal stakeholders of McDonalds. McDonalds have
different kind of suppliers and they are depends on suppliers to run the store. If they dont
have suppliers there is nothing in this store to sell. Suppliers have interests on McDonalds
that is why suppliers are stakeholders of McDonalds. Suppliers play very important role for
this company so McDonalds make sure that they are trust worthy because if they failed to
deliver any product there is no food in the store to sell.

External:
Customers: Customers are the external stakeholders because they different not like
employees but they have interest on this company and they buy
products from this franchise so they are the stakeholders of
McDonalds. That mean those who buy products from this
company is a customer and every customer is a stakeholders of
McDonalds. Customers feel interests on McDonalds based on their
demand that might be promotional offer and because of that
someone feel interests to buy this product.
Government: Most of the people dont normally think government
to involve with franchise but government are actually stakeholders
of McDonalds. McDonalds creates lots of job for unemployed
people because of that government are interested on this franchise
company. The government pass new laws and rules for business
policy that could affect the process of McDonalds run the business.
Trade unions: Trade unions work outside of business but they are external stakeholders.
Trade unions look after the working people rights, compensations, wages and the condition of
workplace. Some of the McDonalds employees are with trade unions so they have interests
on McDonalds.
Communities: Communities are another external stakeholders of
McDonalds. Communities are involved with Franchise Company like
McDonalds. When they plan to open a new store local communities
show interests and the jobs store can offer.

2e. Stakeholders Perception:


From staff interview and customer feedback and recent government rules of wages not really
meeting McDonalds policies at commercial road branch.
In the policy of McDonalds where they are saying they provide full training for their
employee before recruiting .Because of employee work development manager should
Samadur Rahman

Page 6

Reviewing Corporate Policy and Strategy


arrange staff meeting often but the staff of this store said they cant get chance to talk about
their problem. Because of staff shortage and no proper contract of agreement anytime staff
leaves the job so that manager recruit new staff not providing proper training. When store get
busy they cant really serve the customer quick and everything got stuck and they make
customer upset by giving poor service where they are saying quick service restaurant
experience and customer smiling. Sometime they cant even provide the food from their
menu because of skilled worker so they are not meeting the customer demand. Even busy
situation some staff not follow the food hygiene as an example some time in busy hour if any
food product drops in the floor they dont bother to replace it so they are fail to keep their
promise of cleanliness. Another issue is their zero hour contract very few people set their
mind for long time carrier with McDonalds so government are thinking to banned zero hour
contract.

Task-3
Developing corporate policy and strategy:
3a. Corporate policy and strategy:
Board of Directors or senior management of a company is usually established by the Policy
Committee will work, guiding principles and procedures by which a formal declaration.
Corporate policies embedded in the company's mission statement, objectives, and strategic
decisions are made, which is by the policy. It measures the performance of the company and
to ensure accountability at all levels are based on corporate policy implications. Policies and
procedures are strategically related with companys vision and operations. It helps Employees
to understand their role and responsibility. Strategy is the process to specify any organisation
objectives, policy development and plans to gain these objectives and implement the policies
by allocating resources. ( www.investorwords.com)
3b. Definition of Goal:
Goal setting is one of the basic tools used by organizations to assist in setting a direction and
achieving it. Successful organizations often set long- and short-term goals for service
development, improving quality, reducing errors, becoming more customer-focused, and
building better internal and public relations. (Davis, Managing and Achieving
Organizational Goals)
Goal means target, a statement of desired future for an organisation they want see in that
position.
3c. Method of setting goals:
How goals are set is as important as the goal itself. It is important specific criteria of goals
that can asses easily. To achieve the goal acronym SMART is the best way to use. SMART
goal provide a great framework to improve goal setting and helps to achieve more effective
goals.
Samadur Rahman

Page 7

Reviewing Corporate Policy and Strategy

www.google.com

Specific:
A specific goal provides the information for any organisation what needs to be accomplished.
Description should have to be specific.
In McDonalds the main issue is lack of staff and most of them are unskilled so manager
should focus on this issue to recruit more staff. When there will be more staff in this
organisation it can fulfil customers demand and can meet companys policy by providing
quick service.

Measurable:
A goal is measurable, quantifiable. Measurements are carried out by the establishment of
baseline data prior to or received. It is a measure of the ways to measure progress toward the
goal of progress, as well as value.
In McDonalds there should to be 10 workers in every shift to provide quick and satisfied
service if all the workers are well trained but if they are trainee shift manager should guide
and help them but there is only one manager every shift who works plays the role of assistant
manager and shift manager so it is hard for one person to cover two roles so store manager
Samadur Rahman

Page 8

Reviewing Corporate Policy and Strategy


should arrange training for new staff and make the chance for crew trainer to help and guide
new staff to make them skill. Unless skilled worker they cant provide quality food and value
to customer.
Achievable:
A goal can be achieve but there should be a realistic chance and it can be challenging. This
does not imply that the meaning or goal will not be easy. In contrast, the goal will be
challenging. With the person responsible for his or her achievement should be set.
In McDonalds to recruit new staff and make them skill in their work to provide a fast and
quicker customer service and giving them good facilities that they feel interest to work long
term for this company that is a realistic goal. Manager can take the step though there is some
recruitment procedure set by head office and stakeholders have the same concern to
accomplish the goal.
Realistic:
Goals should be relevant with the mission and vision of the organisation. So that achieving
the goals company can move forward to achieve the vision of this company.
Where McDonalds promising customer to best restaurant experience with quick service but
they are failing to accomplish their vision statement so it is relevant to McDonalds mission
and vision statement to recover the employee problem that can lead the organisation to
achieve goal.
Time-Based:
There should to be bound by time to achieve a goal with starting and ending point. It should
have some primary points which can assess to gain phase for the organisation. Within this
time period goal must be accomplished and helps to gain achievement.
In that case McDonalds can focus on the recruitment time period and few weeks to after
when they take any staff to make them well trained.

Task-4
Effectiveness of current policies and strategies:
4a. Current policies:
Its What I Eat And What I DoIm LovinIt
McDonalds policies are very deep to connect with customers by providing them great
service experience in every branch everywhere in UK in every time. Because of different
types of activities and policies McDonalds use that allows customer to come again and again.

Samadur Rahman

Page 9

Reviewing Corporate Policy and Strategy


Quick service experience: McDonalds target time is 90 seconds to serve customer after the
order from customer.
Quality: McDonalds demand is to always provide good quality food. If the products are not
good, not serve to customer. Decorative areas are always clean. Good quality of customer
service, all staff are always happy to serve customer with friendly behaviour.
Cleanliness: When its about eating everyone expect a clean environment so McDonalds
always make sure a clean and safe restaurant for customers. Staffs have duty to keep the
restaurant always clean and sanitary that is their everyday job.
Cost: McDonalds price for the product appropriate depends on the quality of the product
level.
Nutrition: McDonalds another main competitive base is nutrition. McDonalds understands
that health trend is very important and increasingly popular. McDonalds focus extra efforts to
nutritious choices which specially built the vision of McDonalds.
4b.Method to assess effectiveness:
Many of the quality management are McDonalds done through by using information of
technology and other management. Five Ps forces (People, Product, Price, Place and
Promotion) are important in any business. This Method uses in McDonalds each creates a
chain affect on each other.

www.google.com

Samadur Rahman

Page 10

Reviewing Corporate Policy and Strategy

People are the first choice to work in the McDonalds chains. That represents service and
hospitality and pride. McDonalds continuously trained the employee and kept in the
organisation. Moreover, The training process of staff has been changed to online in website
and e-learning tools. It is very important for McDonalds to maintain the staffs in
organisation. It is an incentive forms to motivate employees. (Cantalupo 4)

Products are the second force which includes food quality, taste and cost. McDonalds
establishing the changes of food tastes and market preferences with flexibility. McDonalds
looking at growing interest of premium product and choices of food. The quality and the
safety of food maintaining is McDonalds goals. (Cantalupo 4)

Place is the third force represents cleanliness, Hygiene and the environments of store,
Including main restaurant dining area, kitchen, storages and restrooms. McDonalds make sure
safety for customers as well as staff. McDonalds vision is to get gold standards for
cleanliness. (Cantalupo 5)
Price is the fourth factor which is presented McDonalds productivity and value. The value of
product increased with quality products for lower costs. In McDonalds ensure that customers
are satisfied with the value of product the price they pay.(Cantalupo 5)
Promotion is the fifth factor presented marketing and leadership. McDonalds have good
reputation of good quality food so customer care and satisfaction this organisation focus on.
McDonalds do this with the involvement of local community and conscious about social
responsibilities towards the environment. That will build the trust to make loyal customers
provide them safe and keep for good life.

Task-5
Organisational structure, work Culture, internal communication systems
effectiveness:
5a. Critical review:
Critical review means evaluation and summarisation of information and idea. Reviewing
critically means thinking carefully and clearly and taking into consideration both the
strengths and weaknesses in the material under review.
McDonalds organisation Structure, Culture and internal communication system critically
reviewed by following.

Samadur Rahman

Page 11

Reviewing Corporate Policy and Strategy


5b. Structures in Organisation:
Each organization will need some form of organizational structure consists of more than one
person. An organizational chart shows the way of work position and chain of command
within the organisation. Organisation follows specific ways to accomplish different goals. To
accomplish these goals for any organisation structure is very essential. Any kind of
organisation large or small can achieve higher sales and good profit by properly setting
structure with needs and operation. Three main types of organisational structure are
functional, divisional and matrix structure.

5c. Culture in Organisation:

When we walk into an organisation we often get a 'feeling' about it; whether it
feels fast moving and responsive, or old and backward looking, this 'feeling' is
referred to as the 'organisational culture'. Culture is about how a firm organises
itself; rules, procedures and beliefs make up the culture of a company. In this
section we are going to briefly look at six types of organisational cultures; power,
role, task and person cultures (Handy-1981 Understanding Organisations).
Samadur Rahman

Page 12

Reviewing Corporate Policy and Strategy

McDonald's global youth employment relationship is a strong corporate culture and useful.
Each method of McDonalds and how it will be carried out in the rules is a very particular. It
is to provide the best support for employees. The quality, cleanliness, value and service is
dedicated to providing customers unique levels. McDonalds committed to work best for
people to work together and believe that there are well-trained team that encourage team
building and team work. McDonald's business with integrity and honesty in all aspects will
be set out. McDonalds believe in celebrating the achievement and are strived for new higher
goals and its accomplishments. McDonalds highly committed to customer expectations and
satisfaction and managed to convert that awareness into action. McDonald's goal is to reach a
potential living and performing for people in the organization. McDonalds work day to day
activities and to staff a platform to deliver the best performance-based awards are granted.
Staff time and high load performance will be as workload balancing. McDonalds have the
authority and the employees of each of the specific roles and responsibilities for employees
mentioned.

5d. Communication in Organisation:


In basis of customer and employees satisfaction needs frequent communication. Managers
use different communication ways to input on make things better. Here are some
communication tools McDonalds use in this restaurant branch of Commercial road.
S.O.C.s (Station Observation Checklists): McDonalds use this communication to ensure that
employees are well trained and will help organisation to do better job.

Samadur Rahman

Page 13

Reviewing Corporate Policy and Strategy


Open Door: McDonalds keep the door open for communication from any employee to value
the results gain by keeping door open. if any employee think not getting message or ideas
across or employees face any problem and cannot resolve themselves can contact with
manager.
Own Ideas : Employees can share their own idea feel free if any employee find a method that
can saves time, make things easy to do and quick or may have some constructive criticism to
offer. McDonalds welcome staff input. By contrast, many of McDonalds crew suggestions
have been adopted at this McDonalds. This McDonalds welcome staff to feel free to share
thoughts with management team.
Crew Newsletter: At this McDonalds produce a newsletter every two weeks with the pay
cheques. it provides all information, changes and good things that have happened.
Health assessment email: every employee get an email from management when management
set work schedule it explain medical condition working at this shift and employees response.

Task-6
Recommendation:
Decision making which has to be vertical and need to be facilitate in the organisation
that can encourage communication among various levels.
Organisational structure needs to be decentralised and well maintained which can help
lower management can feel free to express ideas and communicate easily. That will
helps crew members to feel their importance within this organisation and it can
motivate staff to play vital role and improve performance and customer satisfaction.

The organisation need to introduce with the culture is work hard and play hard. This
culture can change the participation of employee and their involvement also
decrement to take risk.
Organisation should increase responsibility with delegation to initiate subordinates
that will encourage employees to play higher performance.
Negative attention need to be stopped to attract i.e. no hormones, no chemicals etc.
Organisation should focus on customer care and satisfaction.
Organisation should not be linked with globalization and corporate greed.

Samadur Rahman

Page 14

Reviewing Corporate Policy and Strategy


This McDonalds need to change the interiors and make it more attractive by changing
uniform more attractive for employees, new themes etc.
Need to improve local community relations. Restaurant should be allowed to adapt
local employee and customer that will help to increase sale and attraction from
locality.
Need to take risk with flexibility of food selection. Need to add more Halal item
because of customer demand though most of the local customers are Muslim.
Should try to go organic and provide more healthy food i.e. less in calories etc.

Conclusion: To sum up, we can see in This McDonalds have all of the policies and
strategies like other McDonalds but only need to proper use by management team. Most of
the important issues depend on Store manager to decision to make these policies effective.
Policies need proper use not changing policies is really effective to achieve goals. By Proper
using of current policies if this McDonalds it is possible to accomplish the vision.

Samadur Rahman

Page 15

Reviewing Corporate Policy and Strategy


References:
Books:
Stake holder definition (The stakeholder strategy- Sevendsen page no. 03 )
Goal Definition -(Davis, Managing and Achieving Organizational Goals)
Culture in organisation -(Handy-1981 Understanding Organisations).
Personal interview with H Thearry current store manager McDonalds Commercial road on
28th april 2015.

Online:

www.investorwords.com ( corporate policy and strategy online accessed on 01 may 2015)


www.findarticles.com (Cantalupo, Jim. McDonalds Revitalization Plan. Accessed online
on may 4th 2015)
www.mcdonalds.com/corp/values/socialrespons/sr_report.RowPar.0002 (Accessed on 02 may
2015)
www.scribd.com accessed on 03 may 2015 Ps forces.
www.google.com

Pictures:
www.google.com
www.Mcdonalds.com
Organisation structure source Philip Edie.

Samadur Rahman

Page 16