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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
and people of all ages. However. Hank's targets middle to upper class customers. COMPETITORS: A competitor is an organization that competes with other organizations for resources. Wendy's is McDonald's second largest rival.I. whereas K. McDonald's closest rival is Burger King. Burger King. and Popeye's compete with McDonald's by offering chicken nuggets and fries. as a result charging more money for its products. Wendy's and Hardee's. McDonald's mostly uses psychographic segmentation targeting the working and middle classes. therefore competing with McDonalds for customers of these products. This new product was a regular hamburger that tasted like the real thing but was made of plant material like Soya beans.introduced a new and innovative product. Hardee's.. McDonald's has practiced a backward vertical integration. and 2) To ensure that its products are of top quality. . Suppliers: Suppliers is an organization that provides resources for other organizations. Henry J. yeast. by replacing most of its suppliers. 1) To reduce costs. both competing for the chicken nuggets and fries customers. In our findings.. 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. which is also in the fast food business. Beans offers hamburgers and fries on its menu.. F.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. C. In brief McDonald's customers are of all classes. which it gets from its farms. K. Friday's competes with McDonald's by offering hamburgers and fries.Indirect . Friday. McDonald's supplies also include raw material such as flour. We have identified four indirect competitors: Henry J. etc. but largely working and middle classes. Beans.I. Hank's and T. F. These supplies include beef and milk to be used in its products. C. so where most of these customers overlap are in the middle class. sugar. C. It has done so for two reasons.. and Popeye's. since these are the people that lead a fast moving life and thus require a fast meal. T. Wendy's and Hardee's. This same product also targets another demographic group. Hardee's operates 3080 restaurants in 20 countries. Beans. Direct Competitors: Direct competitors refers to firms producing the same products or services as McDonald's does. where Wendy's operates 6776 restaurants in 32 countries. F.G. As we have illustrated McDonald's faces stiff competition from three major competitors. These are the people that are more susceptible to enter a fast food restaurant. and Popeye's. McDonald's has two types of competitors in the Lebanese market: . which is also its ally. vegetarians.G.I Friday is another indirect competitor reflecting the same characteristics as Henry J. Other suppliers include local grocery stores that supply McDonald's with fresh vegetables.G. Henry J. In brief. Here we found that McDonald's has three direct competitors: Burger King. Soft drinks are supplied exclusively by Coca-Cola. Other indirect competitors are K. which operates a total of 9644 restaurants in 110 countries. T. Beans also known as Hank's is a more of a bar restaurant and therefore a hang out place.
world famous fries and kids favorite 'Happy Meal'. At these locations. gender. The summary of the task environment which is by definition a specific organizations or groups that affect the organization. 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. Disney and Coca-Cola. one finds a full-menu McDonald's restaurant with dining room service. An example is Lebanon a few years ago when the U. Under the terms of the agreement. Amoco..S. because one can fill up the car with gas and get a meal all in one stop. strategic allies and regulators. Another good example would be the embargo imposed on Iran where U. customers. and other Disney operations in the world. McDonald's will operate restaurants and Disney will promote its films through McDonald's. like 'Big Mac' sandwiches.S. 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. Chevron and Amoco. government banned all U. Here we described the task environment's importance to McDonald's. Here McDonald's has the sole right to sell fast food in Disney's theme parks around the U. Here millions of teens start out . where McDonald's faces both opportunities and has threats in its environment. suppliers. is allied with McDonald's. McDonald's has restaurants in each Wal-Mart..S. which is a large shopping mall chain in the U. Regulators: Regulators are groups or governmental agencies that can control and influence the organization's policies and practices. Chevron. and several neighboring countries. McDonald's is engaged in an alliance with two petrol companies. citizens and organizations to come or operate in Lebanon. McDonald's understands your busy lifestyles and the demands on your time.S.. That's why we are making it easier for you to do more things in less time.S. which offers great opportunities for both companies.Strategic Allies: A strategic ally is an organization working together with one or more other organizations is a joint venture or a similar arrangement. offering its customers conveniences and excellent fast food at a low cost ease of accessibility. and ethnicity. This alliance represents the ultimate in convenience. Wal-Mart. Diversity is very important for McDonald's. organizations were banned to operate in this country. Nothing can be more convenient. which includes competitors. McDonald's has formed a strategic alliance with: Wal-Mart. which resulted in the restructuring of McDonalds' farms throughout its operations around the world. Another important alliance that McDonald's has is with Disney. McDonald's corporation describes it best in this scenario: Imagine a busy shopping day at your local WalMart and having the ability to sit down with the kids and enjoy many of our McDonald's favorites.
McDonald's management emphasizes that their restaurants should be clean. 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. Task Environment: Competitors. hours for people seeking just a few hours of work per week and those who seek full time positions. Mission: Our companies share a common culture and mission. This merger resulted in a workforce of 421. and regulators. There are opportunities for everybody in McDonald's from teenagers to elderly workers. For example. which implies that the employees must wash their hands often to remain clean. management positions and other educated positions in society. As McDonald's illustrates the quality is that the employees delivers fast. so that the customers do not have to wait long for their food. McDonald's offers special jobs for people who have disabilities. Here they offer work to all kinds of people without discrimination and the workers have flexible hours that provides customer satisfaction. and are clean. skilled workers. The work force at McDonald's also have some say in their working hours. 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. sparkling and spotlessly clean. accurate and friendly service with a smile. mid-day.by working at McDonald's. At McDonald's two thirds of middle and upper management started out as crewmembers in a McDonald's restaurant. Here some of the teenagers move on to get various jobs such as movie stars. For McDonald's. This involves that the restaurants are tidy. So. McDonald's offers their workers flexible working hours. so the customers always receive exceptional quality and service. 000 employees worldwide. customers. are neatly dressed. suppliers. Moreover. Moreover. and from people just entering or reentering the job market. or evening shifts in the restaurant. 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. famous athletes. The employees must make sure that the customers constantly receive safe food. McDonald's uses diversity to create a good atmosphere in their work places among workers and management. the employees must follow certain Standard Operational Procedures. such as if they prefer the morning. We are both clearly focused on serving the customers by building world class cars and trucks. Furthermore. that the meat and fries are properly fried. total quality management (TQM) involves that the employees are at work on time. Furthermore. strategic allies. COMPETITORS: . such as people who are in wheel chairs and those who must use crutches permanently. This includes the employees using plastic gloves when they prepare the food.
. Daimler Chrysler faces strong competition from all car manufacturers.Due to its product diversity. the safety should include rear three point seat belts. SUPPLIERS: Daimler Chrysler's suppliers include electronics. plastics. Benz must constantly emphasize that its cars are stable and reliable. Next. However. Daimler Chrysler's strongest competitors are GM. CUSTOMERS: Due to its scope. 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. The luxury models target the elderly and richer population. Toyota. and bumpers on cars made of special composite materials to absorb great impacts to the cars. All these combined result in an effective program of TQM. and Dunlop. Daimler Chrysler enjoys a wide variety of customers ranging from the working class up to the upper class. special seats for children. 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. safety. electronically adjusted seats with heaters installed in them. In order to stay number one. three point seat belts in rear seats and safety features that accommodate young children. high performance and luxury. reliability. automatic climate control. CO2 emissions by cars. ALLIES: Daimler Chrysler's allies are tire manufacturers. which include Bridgestone. they must practice TQM. TQM: Benz concentrates on car quality. Michelin. The luxury in TQM is that the cars constantly have automatic features such as automatic windows and gears. Daimler Chrysler's scope varies from small passenger cars through luxury cars to vans and trucks. Ford Motor Company. which means that there are no defected cars in their production. stability. thereby protecting the cars' occupants. They feature mostly simple passenger cars to luxury cars. air bags. Daimler Chrysler also targets the young and sporty people with its sports utility vehicles. and Volkswagen because they are the leading car manufacturers in the world respectively. rubber for tires and steel. TOTAL QUALITY MANAGEMENT in BENZ INTRODUCTION: Benz is the biggest industrial firm in Germany.
Daimler Chrysler and Benz follow an analyzer type of strategy. In addition. Another important factor is the type of strategy that it follows. These companies also differ. Also. Similarly Chrysler uses an overall cost leadership strategy to reduce costs and to sell a much larger amount. Daimler Chrysler .COMPARISON: As we have shown. Workforce Diversity and Total Quality Management can have a profound effect on the organization. For example. taking into account their customers' needs and wants. McDonalds uses an overall cost leadership strategy to reduce costs and increase sales. these companies follow an Analyzer Strategy by constantly innovating new products. we have explored a large corporation such as McDonald's and shown how its Task Environment. Also the companies are growth oriented shown by Benz's merger with Chrysler and McDonalds opening of three new restaurants every three hours. these companies are decentralized resulting in high employee morale and thus motivation. Another important aspect is that these companies operate on a global scale. . These firms are very highly customer oriented. On the other hand. constantly introducing new products while defending their existing products. CONCLUSION: In conclusion. and Benz are large corporations with a common goal: to provide its customers with top quality products. Benz uses a differentiation strategy emphasizing its high quality and high value of its products. In order for such a corporation to remain a leader in its field. These firms also became diversified in that McDonald's uses a backward vertical integration. it must stay growth oriented and constantly have contingency plans to overcome turbulence. McDonald's. McDonald's. while Chrysler and Daimler have merged to become a more diversified company. thus replacing its suppliers.
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