MID TERM REVIEW OF SERVICE MARKETING

PRESENTED BY:- YOUNIS ZAHID

JYOTI BHARADWAJ YASH SHARMA MANISH RAJPUT ROHAN

Introduction of McDonalds
McDonalds is comprised of more than 30,000 local restaurants and serves 52 million people in more than 100 countries each day. The company is the largest food retailer in the world and is part of the American way of life. In order to remain competitive and an iconic American institution, McDonalds has developed programs and strategies for motivating employees and teaching leadership. McDonalds presented an excellent opportunity to observe organizational behavior in action. McDonalds employees demonstrate quality leadership and that the organization as a whole puts significant effort into motivating and working for its employees.

FOUNDED- may 15,1940 in San Bernardino,Califonia; McDonalds corporation,april 15,1955 in Des Plaines, Illinois.

Founder(s)- Richard and Maurice McDonald McDonalds restaurant concept; Ray Kroc-McDonalds corporation founder. Headquarter Oak Brook, Illinois,U.S. Number of location- 33,000+worldwide Key people- James A. Skinner Product Fast Food Hamburger chicken French fries

soft drinks coffee milkshakes salads desserts breakfast Revenue USS 24.075billion(2010) USS 7.473 billion(2010)

Operating Income Net Income Total Assets Total Equity -

USS 4.949 billion (2010) USS 31.975 billion (2010) USS 14.634 billion (2010)

Employees - 4,00,000 (January 2010)

STRATEGY IN MC DONALS

People are the most important resources of an organization. They ensure the interaction of financial, industrial, and other resources so that the organization can function. Nowadays experienced managers realize that he financial reward cannot stay the only kind of an employee encouragement. The employees' needs should be viewed as an entity that leads to the search of non financial motives. There exist many non financial motives that are connected with the employee's satisfaction of needs, such as his/her recognition, participation in the decisionmaking, self-fulfillment, personal growth and others. The practice shows that the full use of human resources of an organization is one of the most significant advantages, which allow companies to occupy the leading positions in the world market. The 'McDonalds' company flourishes owing to the logical integration of the staff into the problem solving. The company adheres to the principle: 'The result is done by a man'. 'McDonalds' examines its employees as the primary source of progress in the field of quality and productivity. This organization has based its success on the motivation theories having altered only some aspects of them. 'McDonalds' adheres to four simple principles, which give the possibility to increase the performance of its employees: 1. The company must elaborate different systems of motivation for every department. 2. The personnel must have clear and attainable aims. It is better to have one aim per a person. 3. The aims must change: managers should have one aim for half of a year. For example, at first a manager examines the number of clients, then he/she examines the number of returning clients; and then he/she should analyze the increase in business sales. This method gives the possibility to find new abilities of employees and to check new methods of work. 4. The rise of salary amount must be sensible for an employee. The 'McDonalds' company applies three components of the motivation system: financial encouragement, non financial encouragement, and social policy. All the three factors are

described in Maslow's motivation theory. However, Maslow states that all the needs must be fulfilled one after another. The research of the 'McDonalds' company, its strategy and structure shows that only a simultaneous fulfillment of employee's needs will increase an employee's performance. It is not necessary to fulfill all the needs of every level. In the reality an employee has a set of needs in every concrete moment. Summarizing, the 'McDonalds' company has effective motivation system that makes it possible to increase employees' performance, and hence the company's productivity. The situational approach applied by 'McDonalds' administration staff has turned out to be the most relevant to the current situation. The administrators have used the specific techniques on the basis of motivation theories. Having applied the procedure of assembly line in food preparation, 'McDonalds' has ensured the standard quality of the production and the high performance. Besides, the company has implemented effective motivation strategy that is based on the existing motivation theories. Consequently, on the basis of the research we can say that every company has its own system of behavior explanation and every concrete case should be examined as the 'McDonalds' company case. Motivation theories, such as Maslow's theory and Self Determination Theory should serve as the basis for elaborating a strategy which will direct manager's forces towards the aim - employee satisfaction via intrinsic motivation and Maslow's Hierarchy of Needs model.

Corporate & Work Culture in MC DONALDS

When analyzing an organizations leadership and teamwork skills, it is useful to first analyze the organizations work culture and how this culture is maintained. The work culture of McDonalds seems highly dependent upon the particular line manager in charge at any given point in time. One would imagine that the manager would almost always use position power and would use a telling style of leadership since the typical employee is young or inexperienced. Indeed, some managers were observed as running the operations in a machine like manner, especially during peak business periods. However, in the majority of cases the managers were relatively relaxed and sometimes were indistinguishable from the other employees. One manager in particular used a selling approach, which indicates a higher readiness level of her team (Daft, 2008, p. 73). She did not simply give orders, but accepted feedback and alternatives to her decisions. While it was obvious she was the manager, her team was obviously in the later stages of development and was comfortable outside of their predefined roles.

In general, the managers did not try to put any strong vertical barriers between themselves and their employees. Managers usually seemed to display real concern and interest in the emotions and well being of their employees, which was not expected in this environment. For example, one manager was observed asking an employee cleaning the floors about her weekend and her kids. There seems to be legitimate efforts in order to motivate employees even at the line worker level. Herzbergs two-factor theory explains that good working conditions only go so far, and that employees require higher level fulfillment such as motivation and recognition in order to be satisfied with their position (Daft, 2008, p. 231). Even in a low- skill position, low turnover is desired. In addition, happy employees lead to happy customers.

McDonalds corporate management believes in training and leadership at all levels through Hamburger University. On Hamburger Universitys, they quote McDonalds founder Ray Krocs training focused ideology: If we are going to go anywhere, weve got to have talent. And, Im going to put my money in talent. This ideology demonstrates that McDonalds does not believe its restaurants crew members are just gears in a machine that can be easily replaced. Because training is not just offered to executives or managers, McDonalds is able to spread and reinforce its culture and values in all directions, not just downward. McDonalds corporate values also have people as one of its pillars (McDonald's Corporation, 2008). Corporate policy says that employees should be paid at or above the local market rate, and should also value both their pay and their benefits. By addressing employees higher needs by providing training they make employees feel important and valuable. Training also serves to reinforce the culture at all levels through education and fostering a positive image of the employees importance to the company.

MCDONALDS
THERE ARE 4 COUNTERS FOR CUSTOMERS TO SERVE IN GWALIOR DD MALL MCDI STORE. 3 INSIDE THE MCDONALDS STORE & 1 OUTSIDE THE STORE, MAINLY USED TO SERVE SOFTY CUSTOMERS/BUYERS. APPROXIMATELY , AS PER OUR SURVEY THEY SERVE 25 TO 30 CUSTOMERS PER HOUR ON NON WEEKEND DAYS & 45 TO 50 CUSTOMERS PER HOUR ON WEEKEND DAYS, IT MAY VARY OR MAY GO HIGH IN CASE OF EVENING TIME. THE 3 COUNTERS WHICH ARE INSIDE THE STORE ARE MAINLY DEALING WITH THE ITEMS TO SERVE FOR CUSTOMERS ARE: ECONO MEAL MCSPICY POWA VEG & NON VEG BURGERS MCSPY VEGETARIAN MCSPY NON VEGETARIAN BIG SPICY CHICKEN WRAPS PIZZAS MCALOO TIKKI CHICKEN MCGRILL SPICY PANNER CHICKEN MAHARAJA MAC

 FILET-0-FISH CHICKEN MCNUGGETS & SO ON......... IN THE MORNING TIME, WHEN A MCDI STORE OPENS EVERYDAY, APPROXIMATELY THERE ARE 35 EMPLOYEES WORKING ON GWALIOR DD MALL MCDONALDS STORE ALONG WITH 5 MANAGERS. ALL THESE EMPLOYEES , ASK THEIR MANAGER WAT TO DO , TO AVOID CERTAIN WASTAGES , BECAUSE THEY ARE NOT AWARE ABOUT WAT TO DO OR HOW MUCH QUANTITY WE MUST KEEP FOR A DAY FOR CUSTOMERS TO SERVE OUT . EXAMPLE:- IF THEY PREPARED 20 CHICKEN MAHARAJA MAC OR MCSPY VEG FOR A DAY IN THE MORNING ON THE SLOTS OF THE MACHINE CALLED GC BAND MACHINE AND THE TOTAL CUSTOMERS VISITED OR DEMANDED FOR THE SAME ARE 9.THIS MEANS TOTAL WASTAGE FOR THE DAY WILL BE 11.THATS WHY ALL THESE EMPLOYEES ASK THEIR MANAGERS WAT TO DO, BECAUSE THEY ARE NOT SURE AT WAT NUMBER CUSTOMERS WILL VISIT OUR STORE , TO AVOID WASTAGES.

GC BAND MACHINE
PRODUCT MC-VEGIEE MC-ALOO PANNER TCS MODE NO OF SLOTS NO OF PARTIES NO OF SLOTS NO OF PARTIES NO OF SLOTS NO OF PARTIES LOW 00-18 2 1 2 1 2 1 MED 19-36 HIGH 37-54 ULTRA 55-72 -

ACCORDING TO THIS MACHINE , THEY SETUP EVERYTHING AS PER THE NUMBER OF QUANTITY REQUIRED TO SERVE CUSTOMERS , WHEN THE CUSTOMERS VISITING PER HOUR WILL BE 00-18 , THAT MEANS THEIR MODE IS IN LOW & OR IN OTHER WORDS THE DEMAND IS LOW FOR THE DAY, THEY SET THEN ACCORDINGLY AS PER THE MODE & SLOTS AVALIABLE. WHEN THE CUSTOMERS VISITING PER HOUR WILL BE 19-36, THEY THINK WE ARE AT MEDIUM & SETUP ACCORDINGLY, SIMILARLY WHEN CUSTOMERS VISITING PER HOUR IS 37-54..THEY

THINK THE DEMAND IS AT HIGH , AND IT MOSTLY HAPPENDS ON WEEKEND DAYS LIKE SATURDAYS & SUNDAYS..THEY SETUP ACCORDINGLY & IMMEDIATELY THEY OPEN UP ALL THE SERVING COUNTERS & THE SERVING TIME WILL BE OBVIOUSLY LESS BECAUSE WE ARE MAKING THE ITEMS AT MAXIMUM QUANTITY BECAUSE OF THE HIGH PARTIES. WHEN THE CUSTOMERS VISITING PER HOUR IS 55-72, WE SETUP THE ULTRA MODE & THE SERVING TIME IS LESSER THEN EVER.THIS MAINLY HAPPENS ON FESTIVAL DAYS LIKE EIDS, DIWALIS, CRISTIMAS & VICE VERSA. ON FIRST ORDER OF THE DAY, IT TAKES MORE/MAXIMUM TIME OF THE ENTIRE DAY TO SERVE. AS PER EVIDENCE: A COUPLE FROM BELGIUM NAMELY ARNAUD A MALE & ALICE A FEMALE VISITED MCDONALDS STORE DD MALL GWALIOR YESTERDAY AT EARLY MORNING AT 10:30 A.m. THEY ORDERED FOR SPICY CHICKEN AND ONE PLATE OF FISH, AND THE OVERALL TIME TAKEN TO SERVE WAS 5: 24 SECONDS AS PER MY WATCH...ON THE OTHER HAND AFTER ONE & A HALF HOUR , I MEAN AT 12:00 NOON , A LOCAL FAMILY ORDERED FOR THE SAME & THE TOTAL SERVING TIME AS I NOTED DOWN WAS JUST 4:10 SECONDS. A LADY NAMELY SUHANA ORDERED FOR A MC-VEGIEE MEAL & IT TAKES 2:16 MINUTES TO SERVE. A SMALL INFANT, A MERE 16 YEARS OLD NAMELY JITENDER ORDERED FOR SMALL COKE AND IT TAKES 35 SECONDS TO SERVE. A SCINDIS FAMILY OF 4 MEMBERS MAINLY A SON & A DAUGTHER & THEIR PAA & MUM ORDERED FOR A CHICKEN MAHARAJA AND PANNER SPICY,ALONG WITH COKE AND ECONO MEAL, AND THE TOTAL SERVING TIME AS WE NOTED DOWN WAS 3:15 SECONDS. A MALE CUSTOMER SAMEER ORDERED FOR A MC- ALOO & THE TOTAL SERVING TIME I NOTED DOWN WAS 1:90 SECONDS. A GIRL NAMELY TAINA , ORDERED FOR A MC-TIKKI & SPICY PANNER , & THE TOTAL SERVING TIME I NOTED DOWN WAS 2:14 SECONDS. MOSTLY THE DEMAND FOR VEG IN COMPARISION TO NON VEG IS IN THE RATIO OF 70:30. THAT MEANS 70% VEGERTARIAN PARTIES AND 30% NON-VEGETARIAN PARTIES. IN GENERAL, THE OVERALL SERVING TIME RECORDED AS PER RECORDING MACHINE IS 75 SECONDS.

EVERYDAY IN THE EVENING TIME, THEY MOSTLY DEAL WITH THE MEDIUM MODE OF HAVING CUSTOMERS FROM 19-36 PER HOUR AND THE SERVING TIME RECORDED IS 85 SECONDS(APPROX)