FACULTY OF BUSINESS AND MANAGEMENT

MGT028

MCDONALD’S
MANAGEMENT AND MARKETING PRACTICE

PREPARED BY:

2020667382

D1BA000C

PREPARED FOR:

EN.MOHD AIZUDDIN BIN RAZALI

TABLE OF CONTENT

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1.0 Introduction (Company Background) 2

2.0 Planning 3–4

3.0 Organizing 4

4.0 Leading 5

5.0 Controlling 5–6

6.0 Product 7

7.0 Price 8

8.0 Place 8–9

9.0 Promotion 9 - 10

10.0 Company Strategies 10 - 11

11.0 Conclusion 12

1.0 INTRODUCTION

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COMPANY BACKGROUND
McDonald's is considered as one of the world's driving inexpensive fast food that has
accommodated the lives of people daily . This burger brand was begun by two siblings known as
Dick and Mac Donald in 1940 when their first McDonald's café was opened in San Bernardino,
California, United States. They started by selling franks, where they used to possess a wiener
stand, selling grilled sausages at first prior to setting up the café in San Bernardino.

Nonetheless, during the time of 1948, the café was shut and afterward returned to sell
hamburgers, French fries and milkshakes. The café dynamically becomes well known and the
siblings start to establishment their eatery in the time of 1954. Neil Fox was designated as the
first franchisee and the following eatery was set in Fresno, California. In 1955, Roy Kroc as an
entrepreneur and a milkshake-blender sales rep accomplished the establishment of McDonald's
external the city of California, which continued in the launch of his first McDonald's restaurant
in Quite a while Plaines, Illinois where in the long run brought forth the development of the
McDonald's Corporation. The restaurant advanced well and effectively sold 1000 million
cheeseburgers in 1958.

Roy Kroc at that point moved toward the McDonald's siblings and convinced them to sell all the
business rights to him which they accomplished for an amount of USD 2.7 million out of 1961.
In 1963, Ronald McDonald showed up as a mascot for McDonald's, which acted as part of the
marketing strategy in the United States with the plan to pull in more clients.

Another history made by McDonald's is by the starting of the 'i'm lovin' it' campaign in 2003.
With a high standing and tremendous achievement the brand has become, McDonald's has now
gotten one of the top and most well known inexpensive food chains spread across the world in
practically all the significant urban communities in the globe.

MANAGEMENT FUNCTION

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2.0 PLANNING
The first function is planning. planning is the continuous cycle of building up the business'
central goal and destinations and deciding how they will be accomplished . McDonalds shares its
thoughts through its very much created vision. This vision proclamation fills in as the binding
glue between the employees worldwide around the world. They all plan to serve their clients by
giving them the best quality items whenever the timing is ideal. This vision proclamation
unmistakably demonstrates the eventual fate of the association. At McDonalds each
representative knows where they are going towards and what their individual commitment. The
vision goes about as the coupling power which gives the workers a feeling of direction and
responsibility. The second part of arranging is to have an unmistakable characterized mission.
McDonald's statement of purpose is ‘to be our customer’s favorite place and way to eat (Dentch,
2009)’. This mission characterizes their business and their position in the life of its clients.

Planning at McDonalds distinguish the objectives and targets and build up their systems and
assignments to achieve these objectives. planning at McDonalds is lined up with the changes in
the external environment; it additionally confronted numerous difficulties like local taste of
people, cultural values, and traditions of specific area in which they need to enter. The planning
cycle kept up the fundamental beliefs at all franchisees, anyway the neighborhood requests were
considered to enjoy their way of life totally. Systems were altered to suit the necessities of the
territory in which they entered. This was reflected in the operations as well as the resource
utilization.

One viewpoint that features McDonalds successful planning is the manner by which they deal
with their stock chains. Ideal conveyance and quality crude materials were the aftereffect of
building up great relations with the inventory network accomplices.

Because of this strategic planning, McDonalds went into the business of a day in and day out
restaurant. This was to coordinate the requests of the a wide range of clients and to boost the

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profit by expanding the restaurant hours. This was went with presenting breakfast at McDonalds
which further added to the menu. McDonalds was presently offering every one of the three
suppers of the day along and was thinking along the lines of adding snacks to the menu. With
obviously characterized reason for the business, installed values that direct the vision and
accentuation on the job of arranging, McDonalds can accomplish supportable profit.

3.0 ORGANIZING

The second function is organizing. Organizing is setting up the internal organizational structure
of the organization. The attention is on division, coordination, and control of errands and the
progression of data inside the organization. It is in this capacity that directors circulate position
to work holders. in the present society it is significant that administration thinks about the
workers and clients as the main resource of the organization. Having an inflexible structure
sabotages the innovativeness of the representatives, in this way the way of life of strengthening
and assignment is the thing that presently wins in the serious climate. McDonalds utilizes the
shared administration approach which interfaces all the worldwide franchisees worldwide under
the umbrella of single organization name (Long, 2006). The executives energizes the act of
working and helping with one another's franchisees to convey the best to their clients by adapting
up to outside difficulties and speaking to a shared mindful culture. To guarantee steady quality,
the guidelines are uniform for all establishments.

Thus a centralized structure prevails in terms of training programs, supplies and operations. The
conventional structure at McDonalds divide the organization in the offices and each individual
knows his tasks well at which he needs to be specialized . Be that as it may, these standard
strategies don't offer ascent to administrative inflexibility in the organization; every worker is
resolved to accomplish their objectives. The organizational structure picked underpins the
presentation and is lined up with the system of the eatery of giving reliable quality and
extraordinary assistance experience.

4.0 LEADING

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The third function is leading. At McDonald's, leadership was vital to changing the company
operations. The leadership work depends on inspiration and correspondence. The organization
had chosen utilizing significant remodels as a feature of its turnaround plan. The arrangement
was imparted all through the landmass to welcome the entirety of the nearby chiefs energetic
about the system. There was a need to keep moving the plans, and this permitted the President of
McDonald's, had the option to guarantee that his arrangements were executed rapidly,
notwithstanding the change that those plans caused. McDonald's has incorporated
correspondence and inspiration into its frameworks. Correspondence is worked in with a various
leveled structure that permits ranking directors to effectively impement their dreams for the
organization. Inspiration is incorporated into the McDonald's way of life, which has the firm
continually re-developing itself with new trademarks, café overhauls, menu changes and
continuous operational upgrades.

One of the key functions of directing is problem solving. McDonalds dominates both at
recognizing issues and finding inventive answers for those issues. For instance, the company was
struggling in Europe compared with the U.S. Partially on the grounds that the service offering
was not lined up with European tastes. The company reacted to this issue by distinguishing how
better to address the issues of the European market and adjusting the restaurant to meet that
market need. By doing that, the European stores not only stopped underperforming, but overtook
U.S. stores in per-store sales.

5.0 CONTROLLING

The last fuction is controlling. Control is a huge part in administration, in light of the fact that the
intention is to make the administration and control procedures to be executed, so the
organization’s targets are accomplished. Directors should set an objective they need, at that
point, as indicated by the information to play it safe to evade predisposition keep on creating or
exist. This has a place with input control. Criticism control for the usage of the arrangement
director gives genuine data, yet in addition can build representative inspiration. Feed-forward
control is intended to forestall or lessen the presentation lacks before they happen. Feed-forward
control can extraordinarily improve the organization's odds of achievement, if chiefs can foresee
ahead of time the issue and fix it.

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Controlling at McDonalds is the combination of propelled laborers and the reasonable
arrangements which keep them directly on the track. The line chief is responsible for keeping the
representatives working as per the guidelines. At a more extensive point of view, each
establishment should adhere to quality norms and abide by the strict supplier policies (Long,
2006). This is to guarantee that the brands name isn't in peril by irresponsible activities at
individual franchise level. McDonalds Corporation has faith in preparing its representatives at
Hamburger University. This is to guarantee that representatives are clear about the benchmark
and how they alter any inadequacies in their exhibition to satisfy these guidelines.

Adaptable work routine, carefree culture, preparing and a solid work life balance is the thing that
keeps the representatives propelled. Despite the fact that McDonalds is known for its tight
control and regulatory structure, it not the slightest bit hinders representative efficiency or
obligation to the association.

MARKETING MIX

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Marketing Mix of McDonalds analyses the company which covers 4Ps (Product, Price, Place,
Promotion) and explains the McDonalds marketing strategy. Let’s check out the Marketing Mix
of McDonald’s.

6.0 PRODUCT

McDonald's might be notable for their burgers, however it offers an amazing scope of other
menu things also. From servings of mixed greens for the more wellbeing cognizant to ice cream
for dessert, McDonald's obliges a wide scope of tastes and inclinations.By broadening the menu
things that it offers, it satisfies bigger market need as it draws in more clients. This additionally
diminishes the danger of relying upon only one area of the market.

One angle that McDonald's does especially well is limitation. With such countless sources
everywhere on the world, they perceive that there are social contrasts in various districts,
prompting shifting food inclinations. For instance, in India, where there is a bigger extent of
individuals who don't eat hamburger or meat when all is said in done, there are more chicken,
fish, and veggie lover choices.

Japanese food is altogether different from the remainder of the world. In the underlying stage,
McDonald's in Japan held the menu for the U.S. market. However, gradually it supplanted and
added menu things to take into account Japanese inclinations. The organization presented Green
Tea ice cream, Rice Burger, Seaweed Shaker and Teriyaki Burger. The Japanese McDonald's
establishment likewise added shrimp burgers, shrimp nuggets, milkshakes flavored with green
tea and breakfast meal with hotdogs, mustard, ketchup and relish.

McDonald's additionally uses the 'Glo-cal' procedure and offers specials, for example, the
bulgogi burger in Korea, which incorporates nearby cooking into cheap food menu things,
speaking to neighborhood tastebuds.

7.0 PRICE

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The client's view of significant worth is a significant determinant of the cost charged. Clients
draw their own psychological image of what an item is worth. An item is in excess of an actual
thing, it likewise has mental meanings for the client. The risk of utilizing low cost as an
advertising instrument is that the client may feel that quality is being undermined. It is significant
when choosing cost to be completely mindful of the brand and its honesty.

McDonald's effectively utilizes group valuing when offering combo dinners that are less
expensive than requesting a burger or drink individually. With this limited value, clients are
bound to buy more things to augment esteem. Other than combo dinners, family suppers are
likewise another approach to urge clients to spend more.

Optional pricing is essentially utilized by organizations to endeavor to expand the sum clients
spend once they begin to purchase. Optional 'additional items' increment the general cost of the
item or service. For McDonald's situation, clients can purchase the principle things present in
their menu and would then be able to choose "additional items" or "sides" like beverages or
dessert which work out in a good way for the primary thing that they bought. The final product is
that the client winds up paying for the principle thing that he/she needed to purchase and
furthermore for the additional items.

8.0 PLACE

Place, as an element of the marketing mix, isn't just about the actual area or appropriation
focuses for items. It envelops the administration of a scope of cycles engaged with carrying items
to the end buyer. McDonald's sources are equally spread all through the urban communities
making them truly open. Drive in and pass through alternatives make McDonald's items further
helpful to the customers.

McDonald's is profoundly open, with numerous sources situated inside closeness to downtown
areas and shopping centers. While McDonald's essentially creates income through eatery

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activities, there are likewise different choices, for example, dessert kiosks, McCafe, and even
McDelivery in certain nations. Some of McDonald’s outletsare likewise open day in and day out,
offering support to clients nonstop.

many of McDonald's outlets additionally have complimentary wireless internet, making it more
advantageous and alluring for youngsters, finance managers, and even specialists searching for a
spot to tackle their job.

In specific areas, there may even be a playground situated on its premises. This offers a spot for
youngsters to play after they have eaten, extraordinarily engaging kids and families.

9.0 PROMOTION

McDonald's spends over a billion dollars every year in promoting, and they use an assortment of
techniques to publicize, including paper and magazine notices, radio and TV plugs, web-based
media posts, in film, utilizing banner locales and others.

Other special strategies incorporate deals advancements is retail location show, promoting,
standard mail, unwaveringness plans, entryway drops, and so forth. The aptitude in promoting
correspondences is to build up a mission which utilizes a few of these strategies in a manner that
gives the best outcomes.

For instance, TV promoting makes individuals mindful of a food thing and press publicizing
gives more detail. Subsequently, McDonalds utilizes numerous over the line advertising
strategies. This might be upheld by in-store advancements to get individuals to attempt the item
and a collectable special gadget to urge them to continue purchasing the thing.

At McDonalds the prime spotlight is on focusing on youngsters. In HappyMeals too which are
focused at youngsters little toys are given alongside the supper. Aside from this, different plans

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at winning costs via fortunate draws and scratch cards are provided when a request is put on the
different supper combos.

10.0 COMPANY STRATEGIES

McDonald’s Corporation’s primary generic strategy is cost leadership. In Porter’s model,

this generic strategy involves minimizing costs to offer products at low prices. As a low-cost
provider, McDonald’s Corporation offers products that are relatively cheaper compared to their
competitors like KFC, Starbucks, Pizza Hut and Domino’s Pizza. For example, McDonald’s
Corporation offers the “McSavers Mix & Match” starting from RM5.99 where customers can
choose whether they want a light meal or a snack. Other than that, they also have the “McValue
Lunch & Dinner” promotion that offers low prices meal with greater value starting from RM7.95
only. However, they offered only during certain period of time.

Next, McDonald’s Corporation rapidly innovating new products. Customers often seek
discounts and offerings on established products, so McDonald’s Corporation keep on coming up
with new products that can limit the bargaining power of buyers. New products will also reduce
the defection of existing customers of McDonald’s Corporation to its competitors. For instance,
McDonald’s Corporation came up with new different flavours of pie such as Salted Caramel and
Chocolate, Yuzu Cream Cheese, Cookies and Cream, and Blueberry Cream Cheese to achieve
customers’ level of satisfaction and to attract new customers as well. They also came up with
various flavours of ice cream.

Furthermore, McDonald’s Corporation builds efficient supply chain with multiple

suppliers. Multiple supply chains can customize service levels. The efficient supply chain seeks
to maintain the expected service level at the lowest possible cost. If one of the suppliers runs into
financial or business difficulties, they have another supplier to fall back on. Increased
competition among suppliers will also leads to better quality, price, delivery, product innovation
and buyer’s negotiation power. By experimenting with product designs using different materials,
McDonald’s Corporation can shift to another supplier if the price of one material is increasing.

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For example, McDonald’s Corporation partnered with Coca-Cola, F&N’s 100PLUS, Fanta and
many more.

Moreover, McDonald’s Corporation also being service oriented rather than just product
oriented by understanding the core need of the customers rather than what the customers are
buying. McDonald’s Corporation considers the cultural factors in serving the Malaysian
customers. All the food serve is halal and it has local taste as well. McDonald’s Corporation has
become more innovative in promoting its products as it is a good strategy for localizing the taste
and preference of customers. For instance, McDonald’s Corporation offers Nasi Lemak which is
only available in Malaysia. They also offer Prosperity Burger during Chinese New Year.

Lastly, McDonald’s Corporation collaborated with other organization to increase the

market size. When two brands come together with an objective of Brand Collaboration, the main
objective is to share the expertise and offer the unique and innovative products and services to
the customers that will help them gain the competitive edge and advantage in the market. With
the elevated market share, both parties enjoy the higher return on investments and increased
profits. For example, McDonald’s Malaysia announced partnership with foodpanda to expand
their McDelivery network. Due to the collaboration with foodpanda, the McDelivery service is
now available for 24 hours a day.

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11.0 CONCLUSION

McDonald's has been fruitful in working inside the food administration industry through
productive procedures and quality guidelines which empowers them to acquire upper hand. As
proven by its global market development, McDonald's has just been proficient in acquiring
section even in the most testing markets like Malaysia. Through its solid feeling of value
administration and consumer loyalty, McDonald's had the option to offer its items to the
Malaysia market. Items were altered to suit the Malaysian preference. For instance Nasi Lemak
and McCurry and inclinations; moderate costs were actualized; successful advancements and
offers were finished.

These are some of the strategies involved in their company’s business strategy which allowed
McDonald’s to gain the malaysian support. Notwithstanding these victories, the organization
should mull over the developing degree of seriousness in the food administration industry.

In Malaysia, several foreign fast food chains offering similar products are also being supported
by the Malaysia consumers. Steady essential change is then important to guarantee that the
organization would support their upper hand.

All in all, McDonald's has been fruitful on account of the worth the organization gives for its
clients. Henceforth, notwithstanding the questionable start of McDonald's in Malaysia, the
organization figured out how to adjust to its kin's social necessities. To be sure, McDonald's is a
learning association, one that is willing to learn and open to change.

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REFERENCE

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[online] Available at: http://fernfortuniversity.com/term-papers/porter5/analysis/2968-mcdonald-s-
corporation.php.

Panmore Institute. (2017). McDonald’s Generic Strategy & Intensive Growth Strategies - Panmore
Institute. [online] Available at: http://panmore.com/mcdonalds-generic-strategy-intensive-growth-
strategies.

Rahman, M. (2020, January 5). Marketing mix of McDonald’s – McDonald’s marketing mix.

Howandwhat. https://howandwhat.net/marketing-mix-mcdonalds-mcdonalds-marketing-mix/

Meyer, P. (2020, September 20). McDonald’s Marketing Mix (4Ps) Analysis. Panmore Institute.
http://panmore.com/mcdonalds-marketing-mix-4ps-analysis#:%7E:text=The%20marketing
%20mix%20defines%20the,its%20marketing%20mix%20applies%20globally.

Meyer, P. (2020, September 20). McDonald’s Marketing Mix (4Ps) Analysis. Panmore Institute.
http://panmore.com/mcdonalds-marketing-mix-4ps-analysis#:%7E:text=The%20marketing
%20mix%20defines%20the,its%20marketing%20mix%20applies%20globally.

M., & M. (2015, January 29). McDonald’s Management Functions. EssayTurf- Premium Essay
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