management principle that McDonalds using. Planning, Organizing, Leading, Controlling, what is their challenge.

3. BACKGROUND
 McDonalds is begun in 1940s. Named
McDonalds Bar-B-Q restaurant.
 In Dec of 1948s, they had reopened as a selfservice-drive-in restaurant.
 In 1954s, Ray Kroc started McDonalds
Franchise Business
 Over 119 countries in the world.

4. MCDONALD’S MISSION
& OBJECTIVE
 Is
to become our customers' favorite place
and way to eat
 With inspired people who delight each
customer with unmatched
quality, service, cleanliness and value
 Is to satisfy the internal customers

6.  McDonalds
successful thrives on adapting to
consumer demands.
 Many of the new product added into
McDonald’s standard menu over the years were
developed by franchisees
 In 2005, a new adaption to the consumer
demand was the provision of the free WiFi with
Nintendo in select location
 Starting their first delivery service in Singapore

8. Competitive Strategy
 Cost
Leadership Strategy
 Differentiation Strategy
 Focus Strategy
 Cost
Focus Strategy
 Product Variety Strategy
 Focus on customer type Strategy
 Geographical Location
 Advertisement

9. Cost Leadership Strategy
 Offering
the basic fast food meals at low
prices.
 They
hire and give training to their
employees
 Make
the process of serving in the simple
ways for their employees

10. Differentiation Strategy
 Offer
high quality food by low price, creating
different taste of food, extraordinary service
and innovative design for attract the customer.
 Always maintain the high standard of food and
quality
 Enjoy the food more comfortable with the clean
environment
 The basic service of the McDonald’s is to
provide a convenience, good times, friendly
service, cleanliness and delicious food.

11. Cost Focus Strategy
 Good
at adjusting its marketing to keep
customers coming.
 Promoting
value meals for lunch and dinner

12. Product Variety Strategy
 McDonalds
chain
sells a variety of product in its product
Focus on customer type Strategy
 Provide
happy meal which contains free toys to
attract the children attention.
 Provide
some healthy menu like salads some light
ingredient food for elderly customers

13. Advertisement
 United
State’s McDonalds emphasize in
advertising, become the fourth largest advertiser in
the country
 McDonalds also make significant in sponsorship to
increase its positive image
 Childhood imprinting
 Markets the Happy Meal aggressively so that this
kids meal will implant a mindset to children.

14. Geographical Location
 Different
country or place will have different
culture.
 For
Islamic country, pork burger could not sell
because the Muslim can only consume halal food
which is pork-free.

16. Element In Organizational Design
Work Specialization
♪ Departmentalization
♪ Authority and Responsibility
♪ Span of Control
♪ Centralization vs. Decentralization
♪ Formalization
♪

17. Work Specialization
Separate job in to many part
♪ Division of labor
♪ McDonald’s used the work
specialization in an integral part of
their business.
♪
 computerize
to take customer order
 automatic timer to assist in cooking

18. Departmentalization
♪
Basis by which job are grouped together
♪
Five traditional departmental structures
♪
Matrix Departmentalization
 hybrid
form that combines two or more
forms of departmentalization

19. Authority & Responsibility
♪
Region sales, forwarding problem to concerned
authorities
♪
to keep command over the business activities
♪
customer cares, branch maintenance, maintain
the healthy environment

20. Span Of Control
♪
span in a small group
♪
can in order to maintain close control
♪
is aim a target of high productivity and quality
there is a high span of control for the employees

21. Centralization VS. Decentralization
♪
Centralization-decision making takes place at
upper levels of the organization
♪
Decentralization- lower level manager provide
input or make decision

22. Formalization
♪
Standardized an organization’s works
♪
Extent to which employees behavior is
guided by rules and procedures
♪
McDonalds is less formalization and
dedicated toward the quality and production

24. The Important Of Leading
Motivate Employees
 Carry out business
 Motivation is a process person’s effort are
energized, directed, &
sustained toward attaining
the goal.

27. The Importance of Controlling
Control is the management function:
 Monitoring Activities

28. Three Categories Control
management
 Feedforward Control
• Prevent Problem Occur
 Concurrent Control
• Concurrently monitor the employee’s action
• Provide solutions if any problem occurs
 Feedback Control Respectively
• Give manager useful meaningful information
on how effective their planning efforts were.
• Enhance motivation

30. Suppliers Problems
o Due
on the company expansion, hard to find a
suitable supplier.
Achieve
the environmental and animal
welfare standards
o The
world's largest user of beef and the second
largest user of chicken
o Control the
overuse of the natural resources

31. ↓ in Population rate, Increase ↑
in Vegetarian rate.
Decrease
o Their happy
o Provide and
meal selling rate will decrease.
develop new ingredient to attract
new groups of customers.

33. Growing and
spreading internationally
√ Convenient
√ Cheap
√ Clean
They have bring a lot of negative impact to society!

34. Negative Impacts
1.
Wide variety of health risks
2.
Exploiting workers
3.
Damage the environment

35. 1. Wide variety of health risks
promote their food as the ‘nutritious’ food but
contain high:
• fat
• Sugar and salt
 easily threatening illnesses such as obesity and
heart disease

2. Exploiting workers


Did not pay their workers the overtime rate
Employees only few job options and this causes
the workers to accept the exploitation

36. Damage The Environment
3. Damage the Environment

To increase the usage of the farmland

Take advantage that cause:
• damaging forest
• air pollution

38. McDonald’s is a successful organization
within the food service industry.
What leading them to be a successful organization?
• Strategies
• Quality
• Management Process
• Planning,
P
• Organizing, O
• Leading,
L
• Controlling, C
Stable their global market position in this few decades.

39. McDonald’s has been successful because of the
value the company gives for its customers, and
they know to adapt in the culture needs in
different country.