MC DONALD

xv) Explaining their 3 servicescapes dimensions

for starters, servicescape is a concept developed by Booms and Bitner to emphasize the impact of
the physical environment in which a service process takes place. The concept of servicescape can
help assess the difference in customers experience between a fast-food franchise restaurant and a
small, family restaurant. The quality of the food should be the same as the customer percieved it
according to the place’s environment.

In service scape there’s consist of 3 dimension, which is:

1. Ambient condition
This is the characteristics of the service environment that affect our 5 senses. Playing
with this senses can impact people’s emotional well-being, perception, attitudes and
behavior. In Mc Donald they research this requirement as priority one. Whenever you go to
any Mc Donald restaurant, you will first noticed that inside the building have air conditioning
to keep the customer comfortable especially during summer.

Sometimes they will play soothing of fast pace music depending on the situation.
The ambient of smell is also contribute to big mood change. For example, you felt hungry
when you smell the coffee and burger when you pass by Mc Donald early in the morning, to
solve it, walk in and get some foods and drink to start your day.

2. Spatial layout and functionality

This dimension refers to how furnishing, counters, machinery and equipment are
arranged. Functionality refers to its ability to facilitate the performance of service
transactions. This will both affect buying behavior, customer satisfaction and hence the
business performance of the service facility.

In Mc Donald, their facility is the utmost up-to-date-fast-service-machine. For

example, Mc Donald Uses touch screen register for fast service. They only need to touch the
picture of the customer’s order, state the total for the following order, the customer give
money, the employee key in how much they gave and it automatically shows them the
change. This fast transaction gives customers the impression that they will get their food as
fast as they order it, thus give the customer a positive behavior/mood.
3. Sign, Symbols and artifacts
This are the first thing that the customer will automatically try to draw meanings
from them. They also draw cues from them to help them from expectation about the type
and level of service that is being offered. Signage and decoration can be used to
communicate and enhance a certain image or mood or direct customers to desire
destination.

In Mc Donald they have colorful decoration and plenty of figure to attract customers,
especially children. For example, when there is a promotion product, they will have a banner
stuck outside their building or standing inside the premises. Some items such as the “Happy
Meal” item is what attract the customer in the first place because the item, if purchase, the
customer will get free toys. Believe it or not, this small things keeps the customers happy.
xvi) Identifying their 6 critical design of supporting facilities and how they can remove problems
associated with bottlenecks, increased capacity, flow distance, and anxiety of disorientation

6 critical design of supporting facilities

 Nature and Objectives of Service Organization

The nature and objective of service of McDonald, is profit maximization and charity second.
McDonald known as one of the biggest fast-food franchise in the world. They need focus on
profit and will detested on waste. By the term fast-food, they need to be fast and accurate.
That is why they have most advance machinery to process product and the best employee to
serve the customer with warm welcome and fast service.

 Land Availability and Space Requirements

McDonald do not need to have big space but it is recommended to accommodate larger
group of people. They can operate in a small branch and still have more customer come and
go. They have the ability to have more branches in one particular place. They may have 2 or 3
or even more in one area. They can rent a space in a shopping mall or have their own
building ready to open and serve customer.

 Flexibility

McDonald is flexible with their customer welfare. To keep their employee happy, they, for
example, have resting room for employee to rest/take a break for a while. They also have
plenty of worker, so everyone’s work schedule is vary which will help with balance work load
to everyone.

 Security

As for security, McDonald always have security camera working 24/7 around the place just in
case of any problem occur during operation. Most of the branches will have police station
nearby, so it would not be a problem if there is a crime suddenly break lose. In the kitchen
section, the smoke detactor is been install as fire outbreak always occur in the kitchen. To
add up the safety, fire extinguisher is planted inside the buidling.

 Aesthetic Factors

As for aesthetic factors, McDonald should decorate their premise with the classic yellow-red
paint inside and outside the building. The “M” sign also a must trademark that should not be
forgotten. The bright red should attract customer to come but mostly they came because of
the “McDonald” sign on the building.

 The Community and Environment

Most of the McDonald Branches is accepted by most countries, Malaysia included. McDonald
always change their recipe according to the country to suit the taste of the people there. As
for the environment factor, McDonald detested waste product, but when it comes to trash,
they always think about the environmental effect. That is why they have all the employee to
take the course for “Food Safety” so they can properly throw every waste to the appropriate
place.
how to remove problems associated with bottlenecks, increased capacity, flow distance, and anxiety
of disorientation

1. Bottleneck is the factor that limits production usually the slowest operation.
In McDonald the thing that slows thing down is the new employee. This incident cannot be
avoided as McDonald always open to take any new trainee into their company to give them
the chance to work there. So, to avoid such problem occur, they need to train the new
employee first.

The most effective moment to train them is when there is less customer in the premise. The
manager and the senior employee can help them and train them indirectly by letting them do
the work after a few demonstration. After a month or two, they will surely become more
competent.

2. Increased capacity is when the maximum amount your manufacturing operation can
produce and will increase when the customer’s demand increase.
Although in McDonald, the product is just and easy pick and assemble, items like the burger’s
patty needs to be cook first in order to be served. This is a big problem for the employee
when the customer is “in”. They need to grill and deep fried the patty and most of them
takes at least 40 sec minimum and took at least 8 to 15 minutes maximum. This will cause
the customer to wait in frustration.

The only thing that the employee can do at before this incident occur, they need to predict
the “prime-time” of customer to visit. The customer will visit less in the morning, therefore
they only to prepare less product to avoid waste. In the afternoon and during the evening is
when the customer will gets crowded. Before the “prime-time” comes, the employee need
to prepare more items first and produce more product according on how many the current
customer is.

3. Flow Distance is a how long the discrete parts moving at a controlled rate, following the
same sequence to build the product.
In case of McDonald, their production line is not that long to process and it does not required
too much effort as the product only need to be assemble and it is ready for the customer’s
consumption. So in the end the flow distance is not a major problem in McDonald at all.

4. Anxiety of disorientation is a moment when you cannot seem to focus on the time, place or
activities that are happening at the current moment

This problem always occur to the new employee which is pretty common. For starters, the
manager in McDonald should give orientation to every new employee so that they can get to
use with the environment their will working on. After that, it is the trainee roles to take. To
overcome the confusion, they need to take note on everything the manager have said during
the orientation and ask if feel lost. Ask when in doubt, silence is not an option. The senior
employee also take a role as an teacher by giving the pratical, for example, how to operate
the machinery, how to use the grill, how to deep fried the fries etc.
xvii) Identifying market generators to plan for future revenue as well as creating market barriers
to protect its market share

market generators to plan for future revenue

1. Raise or lower price

As we all know prices of product always changing, depending on how the world’s
economy is doing. McDonald should adjust their price. When they increase price on their
product it will increase revenue and profits for the company and when they decrease the
price, it will stimulate more sales and take market share away from suppliers.
They should try to compare their own prices with other franchise such as Kentucky
Fried Chicken (KFC). By understanding how the prices change the customer’s prospects
towards them is important. If the increase of price is not taken well enough by the
customers, consider lower it a bit to the point where it return to the old price.

2. Offer special discounts

In customer’s point of view, discounts create buying opportunity which spurs them
into action. McDonald, in fact, have use this tactics, but not that often unfortunately. If they
truly focus on what the customer wants, then this tactics should prove useful to increase
revenue and increase popularity. McDonald, give special discount for this following reason:
a) Quantity discount is given when two or more of the same product is purchase at the
same time.
b) Seasonal discount is when the product is bought during specific time frame

3. Accept credit card

If McDonald can consider the use of credit card, they probably makes transaction faster and
easier.

creating market barriers to protect its market share

1. Business tactics
McDonald should implement useful business tactics. They have a very successful
franchise which can allowed them to lower their price at the cost of some percentage of
profits. This will also reduce profit margins for the new entrants if they want to remain
competitive. If the competitors use price that has been use by McDonald, the will not remain
competitive.

2. Exclusive rights to resources

McDonald should took the exclusive legal rights to resource required by their
industry, then the newcomer may be put in the position of having to purchase resources
from their own competitor. This may not make a good business sense as it will add to the
cost of doing business and not allow the new party to price competitively.
 3. Government regulation and laws
By understanding the government regulation and laws in a specific country,
McDonald can take advantage of that regulation and laws. When you are the big man that
purpose the permits and licenses in the first place in that country, the new player might
don’t have a chances to follow McDonald footstep as some case, intellectual property is at
risk and no intellectual property laws exist to protect creative product

xviii) Applying appropriate expansion strategies for future operations growth

1. Develop a new sales plan

McDonald is undeniably successful fast-food franchise in the world. To grow bigger,
they need to expend their business, hence will grow their sales margin as long they have
the infrastructure to support that expansion. If they plan bigger, they need to have more
employee, man power to help run the franchise.
The key element in McDonald shifting sales strategy is the existing cost structure for
its goods and services. An anticipated jumps in sales should prompt a checking of its
prices as well when they are purchasing arrangement with suppliers.

2. Explore new route (market)

If they have some money to spend, they should invest their money. They can invest
their money to invest on a product that can produce high quality beef for the burger
or just do charity. Either way, they can improve the quality of their product and also
attract new investor to them.

3. Relocate or add new store

Before McDonald Consider relocating or adding a new store, they need to build the
knowledge acquired from their customer, it will consist their needs, desires and buying
preference.
They need to look for an area with similar customer base. If they already dominate
the city they can go to the urban places or if they can, outside the outside the country
(though they already done that). Before McDonald take and action, they need to do
some research. They need to understand the potential obstacles that moving to new
places may prove lethal.