INTRODUCTION:

McDonald's Corporation is the world's leading food service organization. The corporation started out as
a small drive-through in 1948 by two brothers, Dick and Mac McDonald. Raymond Albert Kroc, a
salesman, saw a great opportunity in this market and advised Dick and Mac to expand their operation
and open new restaurants. In 1961 Kroc bought out the McDonald brothers. By 1967 McDonalds
expanded its operations to countries outside the U.S.A. This unyielding expansion led the Corporation to
open 23,000 McDonald's restaurants in 110 countries in 1994, producing $3.4 bn in annual revenues. In
addition, McDonald's opens a new restaurant every three hours. Also, McDonald's has twice the market
share of its closest U.S. competitor, Burger King, representing 7% of total U.S. eating-out sales. Similarly,
McDonald's serves about 1% of the world's population on any given day through its 23,000 restaurants
internationally. Big Mac, the world's most sold hamburger was developed by Jim Delligutti in 1967 to
feed construction workers. 'Big Mac' is the biggest attraction and backbone of the corporation.
Moreover, McDonald's maintains its competitive advantage by constantly creating new items to add
onto its menu. This shows us that McDonald's practices an analyzer type of strategy, introducing new
items and defending its existing ones.

McDonald’s MISSION AND VISION:

We serve people with good quality food, fast and at low cost. McDonald's vision is to dominate the
global food-service industry. Global dominance means setting the performance standard for customer
satisfaction and increases market share and profitability through successfully implementing our
convenience, value and execution strategies.

THESIS STATEMENT:

To have a clear picture of McDonald's corporation we need to look at its Task Environment, which
includes its: .Customers .Competitors .Strategic Allies .Suppliers .Regulators we shall also explore
McDonald's Workforce Diversity and its Total Quality Management.

CUSTOMERS:

Customers are those who pay money to acquire an organization's goods or services. For many years
McDonald's mostly targeted the young people, however this has changed in this decade; McDonald's
has turned towards a more general market. By doing this McDonald's concentrates on the family,
targeting a diverse market which includes consumers ranging from children to elderly people, using
products such as the happy Meal for children and Egg McMuffin for the elderly. McDonald's also realized
the changing world we live in and the need for healthier food, since there is an ever changing
demographic group, who demand fast, top quality food that is low in calories. McDonald's responded to
this opportunity and introduced a new and innovative product. This new product was a regular
hamburger that tasted like the real thing but was made of plant material like Soya beans. This same
product also targets another demographic group, vegetarians. McDonald's mostly uses psychographic
segmentation targeting the working and middle classes. These are the people that are more susceptible
to enter a fast food restaurant, since these are the people that lead a fast moving life and thus require a
fast meal. In brief McDonald's customers are of all classes, but largely working and middle classes, and
people of all ages.

COMPETITORS:

A competitor is an organization that competes with other organizations for resources. In our findings,
McDonald's has two types of competitors in the Lebanese market: ..Indirect ..Direct Indirect
Competitors: Indirect refers to firms producing one or two products that compete with McDonald's
products and therefore be a threat to the company. We have identified four indirect competitors: Henry
J. Beans, T.G.I. Friday, K. F. C. and Popeye's. Henry J. Beans offers hamburgers and fries on its menu,
therefore competing with McDonalds for customers of these products. However, Henry J. Beans also
known as Hank's is a more of a bar restaurant and therefore a hang out place, as a result charging more
money for its products. Hank's targets middle to upper class customers, so where most of these
customers overlap are in the middle class. T.G.I Friday is another indirect competitor reflecting the same
characteristics as Henry J. Beans. Other indirect competitors are K. F. C. and Popeye's, both competing
for the chicken nuggets and fries customers. In brief, Hank's and T.G.I. Friday's competes with
McDonald's by offering hamburgers and fries, whereas K. F. C. and Popeye's compete with McDonald's
by offering chicken nuggets and fries. Direct Competitors: Direct competitors refers to firms producing
the same products or services as McDonald's does. Here we found that McDonald's has three direct
competitors: Burger King, Wendy's and Hardee's. McDonald's closest rival is Burger King, which operates
a total of 9644 restaurants in 110 countries. Wendy's is McDonald's second largest rival, which is also in
the fast food business, where Wendy's operates 6776 restaurants in 32 countries. Hardee's, McDonald's
third largest rival is also in the fast food business and is the only direct competitor apart from Juicy
Burger in the Lebanese market. Hardee's operates 3080 restaurants in 20 countries. As we have
illustrated McDonald's faces stiff competition from three major competitors, Burger King, Wendy's and
Hardee's. Suppliers: Suppliers is an organization that provides resources for other organizations.
McDonald's has practiced a backward vertical integration, by replacing most of its suppliers. It has done
so for two reasons, 1) To reduce costs, and 2) To ensure that its products are of top quality. These
supplies include beef and milk to be used in its products, which it gets from its farms. Other suppliers
include local grocery stores that supply McDonald's with fresh vegetables. Soft drinks are supplied
exclusively by Coca-Cola, which is also its ally. McDonald's supplies also include raw material such as
flour, sugar, yeast, etc.,.

Strategic Allies:

A strategic ally is an organization working together with one or more other organizations is a joint
venture or a similar arrangement. McDonald's has formed a strategic alliance with: Wal-Mart, Chevron,
Amoco, Disney and Coca-Cola. Wal-Mart, which is a large shopping mall chain in the U.S. and several
neighboring countries, is allied with McDonald's, which offers great opportunities for both companies.
McDonald's has restaurants in each Wal-Mart, offering its customers conveniences and excellent fast
food at a low cost ease of accessibility. McDonald's corporation describes it best in this scenario:
Imagine a busy shopping day at your local Wal-Mart and having the ability to sit down with the kids and
enjoy many of our McDonald's favorites, like 'Big Mac' sandwiches, world famous fries and kids favorite
'Happy Meal'. McDonald's understands your busy lifestyles and the demands on your time. That's why
we are making it easier for you to do more things in less time. McDonald's is engaged in an alliance with
two petrol companies, Chevron and Amoco. This alliance represents the ultimate in convenience. At
these locations, one finds a full-menu McDonald's restaurant with dining room service. Nothing can be
more convenient, because one can fill up the car with gas and get a meal all in one stop. Another
important alliance that McDonald's has is with Disney. Here McDonald's has the sole right to sell fast
food in Disney's theme parks around the U.S. and other Disney operations in the world. Under the terms
of the agreement, McDonald's will operate restaurants and Disney will promote its films through
McDonald's.

Regulators:

Regulators are groups or governmental agencies that can control and influence the organization's
policies and practices. An example is Lebanon a few years ago when the U..S. government banned all
U..S. citizens and organizations to come or operate in Lebanon. Another good example would be the
embargo imposed on Iran where U..S. organizations were banned to operate in this country. Another
group of regulators called interest groups can and have influenced McDonald's to treat its animals (cow
and chickens) in a much more humane manner, which resulted in the restructuring of McDonalds' farms
throughout its operations around the world. The summary of the task environment which is by
definition a specific organizations or groups that affect the organization, which includes competitors,
suppliers, customers, strategic allies and regulators. Here we described the task environment's
importance to McDonald's, where McDonald's faces both opportunities and has threats in its
environment.

Workforce Diversity:

Diversity exists in a group or organization when its members differ from one another along one or more
important dimensions such as age, gender, and ethnicity. Diversity is very important for McDonald's.
Here millions of teens start out by working at McDonald's. Here some of the teenagers move on to get
various jobs such as movie stars, skilled workers, famous athletes, management positions and other
educated positions in society. At McDonald's two thirds of middle and upper management started out as
crewmembers in a McDonald's restaurant. There are opportunities for everybody in McDonald's from
teenagers to elderly workers, and from people just entering or reentering the job market. Moreover,
McDonald's offers special jobs for people who have disabilities, such as people who are in wheel chairs
and those who must use crutches permanently. Furthermore, McDonald's offers their workers flexible
working hours. For example, hours for people seeking just a few hours of work per week and those who
seek full time positions. The work force at McDonald's also have some say in their working hours, such
as if they prefer the morning, mid-day, or evening shifts in the restaurant. So, McDonald's uses diversity
to create a good atmosphere in their work places among workers and management. Here they offer
work to all kinds of people without discrimination and the workers have flexible hours that provides
customer satisfaction.
Top Quality Management:

Quality is the totality of features and characteristics of a product or service that bear on its ability to
satisfy stated or implied needs. For McDonald's, total quality management (TQM) involves that the
employees are at work on time, are neatly dressed, and are clean. The employees must make sure that
the customers constantly receive safe food, which implies that the employees must wash their hands
often to remain clean. Moreover, the employees must follow certain Standard Operational Procedures,
so the customers always receive exceptional quality and service. This includes the employees using
plastic gloves when they prepare the food, that the meat and fries are properly fried, and that the
vegetables are thoroughly washed when used in the food. Another TQM is that the employees rely on
teamwork and high energy to get the job done, so that the customers do not have to wait long for their
food. Furthermore, McDonald's management emphasizes that their restaurants should be clean. This
involves that the restaurants are tidy, sparkling and spotlessly clean. As McDonald's illustrates the
quality is that the employees delivers fast, accurate and friendly service with a smile. DAIMLERCHRYSLER
Introduction: Daimler and Chrysler which have recently merged to form the company Daimler Chrysler
resulted in the company becoming the fifth largest auto maker in the world with an estimated annual
revenue of $130 billion. This merger resulted in a workforce of 421, 000 employees worldwide. Mission:
Our companies share a common culture and mission. We are both clearly focused on serving the
customers by building world class cars and trucks. Task Environment: Competitors, customers, strategic
allies, suppliers, and regulators.

COMPETITORS:

Due to its product diversity, Daimler Chrysler faces strong competition from all car manufacturers.
Daimler Chrysler's scope varies from small passenger cars through luxury cars to vans and trucks.
However, Daimler Chrysler's strongest competitors are GM, Ford Motor Company, Toyota, and
Volkswagen because they are the leading car manufacturers in the world respectively. CUSTOMERS: Due
to its scope, Daimler Chrysler enjoys a wide variety of customers ranging from the working class up to
the upper class. Daimler Chrysler also targets the young and sporty people with its sports utility vehicles.
The luxury models target the elderly and richer population. SUPPLIERS: Daimler Chrysler's suppliers
include electronics, plastics, rubber for tires and steel.

ALLIES:

Daimler Chrysler's allies are tire manufacturers, which include Bridgestone, Michelin, and Dunlop.
REGULATORS: They are environmentalist groups such as Green Peace and others that place Daimler
Chrysler under pressure to reduce pollution in the air by reducing CO, CO2 emissions by cars.
Governmental agencies also regulate Daimler Chrysler in that it requires Daimler Chrysler to reduce
pollution and increase safety features in the cars' design such as side impact beams, air bags, three point
seat belts in rear seats and safety features that accommodate young children.
 TOTAL QUALITY MANAGEMENT in BENZ

INTRODUCTION:

Benz is the biggest industrial firm in Germany. They feature mostly simple passenger cars to luxury cars.
In order to stay number one, they must practice TQM.

TQM:

Benz concentrates on car quality, stability, reliability, safety, high performance and luxury. All these
combined result in an effective program of TQM. Benz must constantly emphasize that its cars are stable
and reliable, which means that there are no defected cars in their production. Next, the safety should
include rear three point seat belts, special seats for children, and bumpers on cars made of special
composite materials to absorb great impacts to the cars, thereby protecting the cars' occupants. The
luxury in TQM is that the cars constantly have automatic features such as automatic windows and gears,
automatic climate control, electronically adjusted seats with heaters installed in them.

COMPARISON:

As we have shown, McDonald's, Daimler Chrysler , and Benz are large corporations with a common goal:
to provide its customers with top quality products. These firms are very highly customer oriented, taking
into account their customers' needs and wants. Also the companies are growth oriented shown by
Benz's merger with Chrysler and McDonalds opening of three new restaurants every three hours. In
addition, these companies are decentralized resulting in high employee morale and thus motivation.
Another important aspect is that these companies operate on a global scale. Also, these companies
follow an Analyzer Strategy by constantly innovating new products. These firms also became diversified
in that McDonald's uses a backward vertical integration, thus replacing its suppliers, while Chrysler and
Daimler have merged to become a more diversified company. These companies also differ. For example,
Benz uses a differentiation strategy emphasizing its high quality and high value of its products. On the
other hand, McDonalds uses an overall cost leadership strategy to reduce costs and increase sales.
Similarly Chrysler uses an overall cost leadership strategy to reduce costs and to sell a much larger
amount.

CONCLUSION:

In conclusion, we have explored a large corporation such as McDonald's and shown how its Task
Environment, Workforce Diversity and Total Quality Management can have a profound effect on the
organization. In order for such a corporation to remain a leader in its field, it must stay growth oriented
and constantly have contingency plans to overcome turbulence. Another important factor is the type of
strategy that it follows. McDonald's, Daimler Chrysler and Benz follow an analyzer type of strategy,
constantly introducing new products while defending their existing products.