Service Management – Assignment 2

Identify Service Management Excellence

Executive Summary
The service intensive tourism and hospitality industry has seen corresponding growing demand.
Despite the continued growth and importance of service, and in particular its critical role in the
hospital industry, education specific to service management lags behind. Such features are
unique to the service industry. Any of these attributes are, moreover, conveyed explicitly by
some consumer goods. The purpose of this report is to identify the service management
excellence in the context of Hospitality industry at international level. This report will address
McDonalds's service management excellence on how the company ensures a strong
relationship, quality service, and performance measurement. This report will also focus on
certain recommendations in the field of Service management excellence.

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Introduction
Since time immemorial, businesses in the service sector have proclaimed their commitment to
the terms 'service excellence'. Excellence in service is not just about delivering service at the
luxury level. Service excellence is about providing and then meeting the requirements of the
client and significantly exceeding them (Hudson & Hudson, 2012). This assumes that the real
sense of outstanding service is proportional to the service itself and the desires of consumers,
and also indicates that the responsibility of delivering outstanding customer support falls on
even the most budget-friendly products. To accommodate guests, service operations
management in the tourism and hospitality industry needs a high degree of planning,
collaboration and facilitation. Service excellence means a lot to tourists in terms of their
experience with all of these operations, and it means repeat clients and word-of - mouth
promotion for the company. (Kandampully & Solnet, 2015). Excellence in service and customer
preferences differ by brand and by type of hospitality service. It is the duty of the managers to
consider the commitment of the brand in terms of operation and associated consumer needs.
Management must strike the right balance between achieving and satisfying the needs of the
consumer but still being faithful to the brand's reputation. This means establishing a productive
work experience for their staff as well as achieving and reaching benefit expectations. This
report discusses the various influences of service efficiency as well as the paradigm of facilities
and functions visible at McDonald's fast-food restaurants around the world (Hudson & Hudson,
2012).

Overview of Organization

McDonalds is the biggest network of fast food vendors in the world. The corporation started in
1940 in California, with a small restaurant owned by two brothers, Dick and Mac McDonald. It
was a driveway restaurant offering a limited selection of burgers, fries, etc. The McDonald
brothers purchased a multi-mixer from Mr. Ray Kroc, a paper cup and multi-mixer salesperson.
He was fascinated by the restaurant's structure and came up with the creation of the
McDonald's Company, which Mr. Ray Kroc founded in 1955 (Suryavanshi, 2018).

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The first McDonald was launched in Illinois on April 15, 1955. He acquired the full rights to the
brand 'McDonalds' in 1960. Moreover, there were 700 restaurants throughout the United
States by 1965. At $22.50 per share, it was the first time the McDonalds stock became public. In
1967, McDonalds in Canada opened the first overseas restaurant and opened its first restaurant
in the United Kingdom in 1974. Today, it has a restaurant chain in 118 countries worldwide.

Mr. Kroc had the idea of developing a restaurant structure that was recognized for its quality
food and consistency. He wanted his franchisees and vendors to collaborate with McDonalds,
not with McDonalds, to achieve the goal. He marketed the motto, "For yourself in business, but
not for yourself." He promoted both entrepreneurship and commitment to his visions. This lead
to the incorporation into the supply chain of numerous new goods, the bulk of which were
franchisees' contributions. The awkward thing is that this restaurant chain has been operating
for 50 years and has risen as a business leader and intends to do the same (Rodrigues, Nikhil &
Jacob, 2016).

Customer relationship marketing

McDonald's clients range from kids to the elderly; everybody can be heard telling I love it. The
environment seems to be the same and consistent facilities as in any other area of the world
with all consumers visiting McDonald's. The worldwide activities of the McDonalds are kept
around a "Plan to win" international strategy and due to this; consumers are given outstanding
and optimized offerings to maximize their Mc Donald's interactions. This is Mc Donald's key
strategy for attracting and sustaining its clients, since each restaurant they visit will expect the
best QSCV ensures the best product, facilities, cleanliness and affordable pricing.

For this, McDonald's has a range of providers that provide the same raw material consistency
required for the goods and professional workers to support consumers anywhere in the same
way (Ceil, 2017; Rodrigues, Nikhil & Jacob, 2016).

In addition , due to chicken consumption and rejection of beef and menu variations for people
with diabetes, obesity and fitness conscience, McDonalds changed the menu with new outlets
such as Big Mac in India. McDonalds provides consumers with free Wi-Fi at its stores. In each

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outlet, they set up a special zone for children, toys with a dinner. It has set a happy price menu
for adults including high school and college students, as these individuals have minimal pocket
money and appreciation for the money they pay. They are served and coke and steak, French
fries, Mc puffs etc. (Suryavanshi, 2018).

Service Quality
Conformance is one of the main issues of every organization's product that it should meet with
certain pre-defined requirements that are required for that specific product category. It is
required that the fast food joints meet with the requirements of nutritional safety and
nutritional value. Performance is the indicator of how important it is for a product to
accomplish its intended intent. The aim is to alleviate a client of hunger in the case of fast food
and supply the body with the requisite nutrients. In this sense, the higher the value of a food
item, the greater the requirement for that specific item is (Solnet, 2012).

Features are the product improvements that will increase the efficiency. Adding attachments to
electronic equipment will increase its performance. Likewise, fast-food restaurants have a wide
variety of complementary items such as soft beverages, snacks, beer, etc. along with burgers
that produce more sales and contribute to better quality and efficiency of service. Additional
products such as toys etc. are included in some of the food products that also result in rich
features. The asset of achieving customer trust is reliability. A consumer should be able to rely
on a commodity in multiple regional areas for its continuity.

For fast-food restaurants, this is important as a person traveling to an unfamiliar location across
the globe will be more likely to step into a familiar food joint and will thus assume the same
taste and experience he is used to in his own country or area. By catering to frequent clients,
this leads to a rise in foreign industry (Li & Huang, 2017).

For any company concerned with the food and drink industry, aesthetics is the primary priority.
This is a contextual sensory trait. A fast-food business has a number of rivals. In addition to
safety and value for money, consumers still care about the aesthetic qualities of the goods
produced. The taste, look etc. The feeling in the fast-food joint can also be this. The
buyers like a position where they see a reasonable balance of all the above issues. A rather

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good burger in a shabby wrapping would not be popular with consumers, but a market leader
may be vice versa. (Solnet, 2012; (Pizam, 2016).

Performance Measurement
On the following metrics, Cost, Flexibility, Distribution, Quality, Service, McDonalds' strategic
goals can be evaluated. The cost is also the main factor determining the preference of a client.
In certain cases, the buyer would not be able to identify the gap between the quality of the
goods added together to make the finished product. Therefore, like each potential consumer,
the company has to ensure that the quality of the final product is profitable (Rodrigues, Nikhil &
Jacob, 2016). The range of items provided to the consumer can be flexible. Because there will
be far too many customers ordering a number of goods throughout a busy season, the
manufacturing process is well structured to satisfy the needs of each and every customer in the
shortest possible period. In addition, the McDonalds also needs to adapt to changing customer
requirements, which can differ significantly based on geographical regions. McDonalds is
primarily a fast-food restaurant that majors in beef and pork products, but for Asian consumers,
where vegetarian and chicken dishes are more common, they have a wide variety of menus
(Jeon & Kim, 2012).

The acceleration of delivery is another big significant concern. It is predicted that most of the
clients going to a fast-food restaurant would be low on time. They would also choose locations
that, even at high load hours, including lunchtime, offer the quickest customer service.

Even with the right procedures in place, due to some unexpected conditions, there will be
delays. In such unusual cases, McDonalds has mechanisms in order to prevent consumer
disappointment. In case of delay above a threshold duration, they deliver the ordered products
for free. Any joints often have cost-free extra products (Crotts, Dickson & Ford, 2005). The
quality of the product/service plays an important part in customer retention as well. Original
consumer flow is ensured by low cost, but low cost paired with high product enables repeat
sales. Product quality is an outcome of process quality. The quality of the process is critical as it
makes progress to produce items with a consistent flavor and appearance to consumers

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worldwide. This would be very essential for fast-food restaurants, as consumers want their
experience to be the same at varying geographical places (Jeon & Kim, 2012).

As all fast food restaurants are a service-oriented market, where business relies not only on the
reasons listed above, but also on consumer engagement to a large degree. Before being given
the role, the customer service personnel, who are responsible for dealing with the customers
when receiving orders and distributing them, attend proper preparation. This offers rivals an
edge, as clients tend to favor joints with decent consumer facilities. The dynamic essence of the
global fast-food industry, along with all of these tactics, allows the company to strive to
innovate fresh goods and attract diverse client ranges. McDonalds has numerous food bundles
in order that cater to the needs of clients from all age classes. The options include the children's
'HappyMeal' choice, which contains toys from the new animation films along with children's
food (Rodrigues, Nikhil & Jacob, 2016).

Recommendations
McDonalds should recruit employees based on personality, not practice, in order to approach
service quality. Experience helps, however you can instruct and acquire experience in skills. In
the back of the building, mindset is just as important as it is in the front of the building. A good
outlook would have you moving in the desired direction from the back to the front of the
building. The organization maintains that both staff and the executive team are fairly
represented with their recruiting strategies, training, rewards systems, incentive systems,
leadership strategy and corporate sustainability activities (Jeon & Kim, 2012).

McDonalds should set a standard for problem solving that satisfies consumer needs. According
to research, problem solving reaches the desire of the buyer; the intent of the customer to
return is the same as if they never had a problem. When an individual ventures above an
acceptable level, treat it as an incentive for improvement, but first say thanks. The company
should inspire its workforce to solve challenges and accept or praise success. Based on the

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expense of the associated rebates, success or loss will not be calculated. The benefit of
retaining the client far exceeds the expense of the rebates. It is still important to note that it is
'let me consult with my manager' that the client wish to know (Rodrigues, Nikhil & Jacob, 2016).

McDonalds should educate the customer service workers to appreciate and value the back of
the house's position and how the back of the house relies on their performance. It is easier to
provide the management team with customer contact experience. The supervisors will need to
have the requisite business expertise. McDonalds should create strategies of appreciation
and/or rewards that recognize front-of-house and back-of - house workers equally. The services
should not cause a two-class culture to be established within the land of the organization. To
promote internal interaction between employees, the corporation should ensure that its
organizational structure is planned (Solnet, Kandampully & Kralj, 2010).

Conclusion
To conclude, McDonalds is doing a lot of positive things and they have developed a nationwide
name that is embraced nationwide. The following analysis focuses on the numerous aspects
and facilities shown at McDonald's and the broad variety and tactics that are implemented to
create McDonald's brand name. For any organization, the combination of tangible and
intangible variables is the secret to success. McDonald's has focused on reaching the youth
consumer group and kids. In the service landscape design of McDonald's restaurants, their
emphasis is on reaching children and young people. McDonald's operation model shows that
they are also following the cashier cum vendor model where only one person takes the order,
assimilates the food and delivers it. This will result in a very heavy workload over weeks. 

In McDonalds, the first concept should be consumer loyalty in order to be a success. Only by
offering the best customer experience with the least time possible will a service-oriented
business thrive. However, not the only aspect is operation. To serve their needs, the quality of
the goods provided must be hygienic and nutritional. The rivalry is an all-time high in the fast
food industry, so the cost along with the consistency will be a determining factor for the

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consumer. The future in a McDonalds does not rest in the hands in managers. With each staff
and franchisee, the burden resides. Organizational leadership should not only enforce
procedures, but also integrate drills for output assessment to ensure consistency with the
processes. However, McDonald's will certainly deliver improved service efficiency for their
clients by reducing the holes in service delivery excellence.

References
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doi: 10.2139/ssrn.2984100
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