1. A Critical Appraisal on the Strategies for Improving
Profitability in the Fast Food Industry
(“A Case Study on McDonald’s Restaurants”)
A thesis handed in to
GREENWICH SCHOOL OF MANAGEMENT
By
OLUSEGUN IGE SOTUNBO
STUDENT NO: E09WM013356FN
M.Sc in Business Management
University of Wales
23rd
OCTOBER 2010
SUPERVISOR NAME: STEPHEN MAKINSON
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2. TABLE OF CONTENTS
Title Page………………………………………………………………………………. I
Acknowledge …………………………………………………………………………...II
Dedication ………………………………………………………………………………III
Abstract …………………………………………………………………………………IV
Chapter one: Introduction
1.1 background of the Study ……………………………………………………………5-6
1.2 Aims of the Study …………………………………………………………………..6-7
1.3 Objectives of the Study ……………………………………………………………. 7-8
1.4 Chapter Summary ………………………………………………………………….. 8
Chapter Two: Literature Review
2.1 Historical Evidence of McDonald’s ……………………………………………….....9-10
2.2 Organisational Structure ……………………………………………………………..10-12
2.3 Scope of Change Management……………………………………………………….12
2.4 Human Resources Management in McDonald’s …………………………………….13-15
2.5 Leadership Style of McDonald’s …………………………………………………….15-16
2.6 Total Quality Management …………………………………………………………..16-17
2.7 Current and future Activities of the Company ……………………………………….17-21
2.8 McDonald’s Overall Strategy ………………………………………………………...22-30
2.9 Current Strategy & Level of Performance……………………………………………30-32
2.10 McDonald’s v Fast food industry (strategies)……………………………………….32-34
2.11 Financial Position of Company ……………………………………………………..35
2.12. Chapter summary…………………………………………………………………... 36
Chapter Three: Methodology
3.1 Introduction …………………………………………………………………………..37
3.2 Research Philosophy …………………………………………………………………37
3.3 Research Strategy……………………………………………………………………..37-38
3.4. Research Population and Sample Size ……………………………………………....38
3.5 Research Methods…………………………………………………………………….38-44
3.6 Research Constraints ………………………………………………………………....44-45
3.7 Chapter Summary …………………………………………………………………….46
Chapter Four: Results Data/ Analysis/Discussion
4.1 Introduction …………………………………………………………………………...47
4.2 Operational Sustainability …………………………………………………………….48-49
4.3 Participants Profile ……………………………………………………………............50-76
4.4 Participants Response …………………………………………………………………77-89
4.5 Discussions ……………………………………………………………………………90-92
4.6 Chapter Summary ……………………………………………………………………..93
Chapter Five: Conclusion/ Recommendations
5.1 Conclusion …………………………………………………………………………….94-97
5.2 Recommendations……………………………………………………………………. 97-103
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3. REFERENCES AND BIBLIOGRAPHY ……………………………………………… 102-106
APPENDIX- RESEARCH QUESTIONNAIRES……………………………………….107-118
ACKNOWLEDGEMENTS
I wish to thank the entire member of McDonald’s staffs (South East/ South West London
region), who had been in support throughout the starting of this dissertation. I equally like to thank
my supervisor, Mr. Stephen Makinson, who in his capacity worked extra hard to see the success of
this research study. I will like to thank Bridgette Pollard, the director of learning and teaching at
Greenwich School of Management for her immeasurable assistance to this dissertation. Her
constructive criticism however, made this thesis a huge success. I would like to thank my elder
brother, Ikukoyi Sotunbo and younger sister, Abisoye Sotunbo, who during the commencement of
this report has helped in supplying stationeries for the write-up, typing and binding of the thesis.
I will also like to thank my parent Mr. and Mrs. R.B Sotunbo for their financial backing up
to the progress of this project. They both actually helped during the hard times of the research
when I seriously need funding to keep me going-on in the starting and final stage of the
dissertation. I equally thank everyone who has in no small ways contributed their suggestion for
this study.
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4. DEDICATION
This dissertation is dedicated to the Glory of God Almighty.
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5. ABSTRACT
A critical analysis for improving the profitability of McDonald’s restaurants was undertaken to
address certain issues of concern relating to the organisation. The purpose of study was meant to
examine the likely areas affecting the company and obviously to see methods to recommend to
boost productive capacity of the efficient use of available resources both technology-wise and
knowledge-based potential within the organisation, so as to proffer a strategies that will put the
company forward in terms of having a better competitive strength over its rivals. The study was
also intended to give recommendations. The study used first-hand and second-hand source. The
second-hand source was gathered from annual financial reports and statements of the McDonald
Corporation from 2003 to 2008 and from published work of some notable authors. Questionnaires
were designed to capture the responses of participants both the consumers and the employees. In-
depth telephone and focus group interview were carried out to collate the views of the respondents
with reference to the issues raised in the survey questions.
The rationale behind the strategic means to improve the organisation profit motives was
examined. The underlying reason for this was as a result of urgent needs of an organisation to
evolve with a perpetual change in the business environment and maintained high competitive
strength. In the light of this, emphasise were concentrated on the strategic analysis and formulation
of strategy. Strategic analysis has been considered as the situation the organisation is in now and
then trying to appreciate how that may change in the future using set objectives. This provides a
basis for the organisational choice as to its future direction. The process itself and how it is
managed also heighten the strategies adopted. The research further explained the basis underlying
the motives of this study, which is of interest to help this dissertation be more focus. More so, the
questionnaire and interview survey constructed shows that the respondent’s view on the strength,
weaknesses, opportunities and threats were obviously a good contribution
The information collected was analysed using a bar chart, pie chart, pestel analysis, porters
five forces framework, as well as swot analysis. The data was presented in tables and interpreted
according to its findings. This tables and charts were employed heavily to provide the analytical
details of a pictographic outcome of net income and operational income. The current strategies of
the company and level of performance towards the implementation of these strategies were
examined. This was done to assist the study of this dissertation see where the business is going
and where needs to be improved.
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6. CHAPTER 1
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
McDonald’s which seems to provide a practical workable tools to address the much needed
emphasis on improving the performance of their corporate objectives as a fast food outlet as a
major development strategy. McDonalds is the world leading restaurant and biggest fast food
outlets in the globe with over 32,000 café in over 110 nations and serve almost 47 million
consumers every day. McDonald’s largely sell hamburgers, cheese burger, chicken products,
French fries, breakfast items, soft drinks, milk shakes and deserts. Recently, it began to
recommends Salads, wraps and fruits. A lot of McDonald’s restaurant incorporate a play ground
and publicity geared in the direction of kids while a few café have been re-engineered based on
environment and comfort by setting up relax spot and fire places while getting rid of solid plastics
seats and desks. Its latest marketing, greater product, flawless process and dedicated franchisees
have laid a benchmark for the industry (McDonald Corporation 2005). The organisation
philosophy of better-quality food, speediness, responsive service; café hygiene and the set of
choices that provide worth and its family oriented image are discovery of Ray Kroc. Additionally
it is one of the world’s largely recognised brand names, alongside with coca-cola, Kodak, Gillette,
Sony, and watt Disney. However when McDonald brothers sold the business to Ray Kroc in 1961
for $2.7 million, the company has made over $13.2 billion in overall returns in 1999. The
organisation list of choices which consists barely of hamburgers, cheese burgers, French fries,
sodas, milk shakes, milk and coffee has developed greatly. A precise practical description of
McDonald is a business that enlarges, operates franchisees and services a wide-reaching
arrangement of restaurants that prepare, collect, wrap up, and trade a restricted set of choices of
readily made and reasonably value meals. The company franchises joint-venture partners and
restaurants in many countries, each providing some degree of set of choices of high superiority
meal that were constituent of a stable food preparation, (Ad guru 2005).
McDonald’s has initiated food quality specification, equipment technology, marketing,
training program, operational, and supply systems. These were considering as principles for the
business all over the globe. Q.S.C. & V- Quality, Service, Cleanliness, and Value are the measures
on which McDonald’s were designed and are the motives the company continue to function so
productively nowadays. All through the years, marketing ideas have decanted through and assisted
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7. the organisation to grow as the most prominent ready meals brands worldwide. The trade mark
devise for the restaurant were cautiously considered and it appears with the cheerful comic
personality known as Ronald McDonald. (McDonald Corporation, 2005). McDonald’s support the
needs for workers to attain a balance between individual and company life. The company benefits
perceived by the business include enhance worker morale, reduce employment expenses and
return on investment in training and development, reduce absenteeism and sick leave, increase
efficiency, decision making, work satisfaction and incentive. These policies helped to improve the
company’s outer status as an employer (Ad guru, 2005). Moreover in 1977, McDonald’s carried
out a Diversity Audit of policies and procedures with an outside expert from which a plan of
action related to strategic goals of the company was developed. All districts have limited diversity
groups which distribute information and success stories via the nationalised group, business news
letter and e-mail. To buttress the point, the company recently started on a national ‘Diversity
Matters Award’ which meant to recognise restaurants that have truly attempted to support
diversity within their restaurant setting and neighbouring community. During the year, restaurants
are requested to put collectively a set of actions that have been considered in the area of diversity
and to present details about positive results, (Gregg et al, 2006). One aspect of the diversity
scheme is the recognition that workers needs to attain a balance between job and individual life.
To greatly assist the workforce, the organisation put in place a ‘family matters’ group which has
the area manager in the midlands as its patron. The group get together on a normal basis to re-
evaluate policies, for instance promoting the child-care information service control by the accor
group to family life solution which envelops all concern needs of the family. Practices like these
are strictly linked with McDonald’s business needs, and restaurants are expected to include
initiative of their own to support families. Periodical reports which monitored wages and salaries
staffs are produced in a group layout so that failing areas of the business can be figured out. These
then receive visit from the training and operation managers who along with the management
established initiatives to influence a cut in workforce turnover or absenteeism. (Gregg et al 2006)
1.2 AIM OF THE STUDY
The aims of the study focus on strategies for improving profitability in the fast food industry
(“A case study on McDonald’s restaurants”). This report provides insights into the factors that
directly influences profitability in the industry and defines profitability as the effective use of
resources to achieve operational goal towards optimisation and maximisation of profit. The study
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8. of this dissertation approaches profitability from perspectives of employers, managers and
employees. Profitability improvement requires partnership among these groups and by analysing
the perspective of each, there is hope of identifying the critical differences and areas of common
group. The core of this report is:
• To examine how profitability can be improved and better enhanced.
Also to review the differences that exists between different fast food industries
and sub-stores. In addition to this will involve how managers and employees
could influence profitability from the point of view of an effective productivity.
• To analysis the current state of productivity in the cross-section of the stores.
This work will assist to determine the drivers or alters barriers to increase profitability
in the fast food industry.
• To demonstrate a clear view of understanding on how profitability perspectives are
influence and are influenced by: hiring, effective communication, employees turnover,
customers retention, labour cost, management capability and technology know-how.
• To assess and explain the problem areas and challenges faced by the industry.
This can be done using a swot analysis: that is strength, weakness, opportunity and
threats of the company will be examined as well as pestel analysis and porter five
forces framework
• To evaluate an exact nature of the company situation and recommend a solutions
that will continuously prosper the industry and project the company to achieve greater
profit.
1.3 OBJECTIVES OF THE STUDY
The key outcome involves evaluation of McDonald’s profitability improvement from the
perspective related to total quality management, leadership styles and implementation of objective
oriented results and corporate policies system. Other outcome of this study includes a detailed
overview of the common trends in the industry. However, the study adopts a mixed methods
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9. approach to understanding the profitability improvement by combining interview, questionnaire,
focus groups, information research and a national survey. The set objectives are as follows:
o Providing consumers with excellence service at a little, but affordable price with
importance on increasing the speed, service and restaurants hygiene as an utmost
priority;
o To make people focused on the goals of the company by making the environment
customer friendly at all time so as to continue targeting the needs and customer
expectations;
o To promote active consumers to come frequently by building brand loyalty.
This will assist in achieving yearly operational earnings of 5% to 6% for the
year 2011 as well as annual company-wide sales increase of 2% to 4%;
o To help the company cut down expenses to boost a more realistic profit making.
And formulate strategy with the pace of time and change in customers needs and
Wants;
o To strengthen the need of staff to be more focused on the mission of the
company by alleviating staff morale;
o To examine the growth in the equivalent trades and margins and build an
impetus towards achieving a lucrative performance. This will help to
reach yearly income on incremental investment in 2011 and ahead.
1.5 CHAPTER SUMMARY
This chapter has been an introduction to the research topic and the overview of the subject
matter with respect to detailed background of the company. It has explained the subject matter in
the context of business management function. It also discussed the development of the
organisation. The aim and objectives of the research has been clearly highlighted and stated
accordingly in line with the research analysis to be carried out during the course of this study.
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10. CHAPTER 2
2.0 LITERATURE REVIEW
This chapter is a literature review section, and the essential strategies employed by the
company will be examined. This involves the highlight of all the explanations of the subject matter
from the academic journal and scholastic authors in this research study. The organisation
structures, scope of management as well as managing people will be examine alongside with the
role played within the business environment. This section also examine the leadership styles of
McDonald’s; existing and potential activities of the company and the significant of total quality
management as it applied to the quality of goods and services has envisaged within the context of
organisation procedures as well as performance. This section will also include a conclusion.
2.1 HISTORICAL EVIDENCE OF MACDONALD’S
The McDonald’s story started during 1940 when Richard and Maurice McDonald launched
a well booming car-hop barbecue café in San Bernardino, California. There is a kind of awareness
that increasingly people were more anxious regarding price and with growing road way structure
making consumers become concerned in speediness of service. They provisionally stopped the
café then construct and planned a better, but resourceful centre and re-launched with self-service.
Also they made-up the self-service drive-in model that were of limited-menu, paper-service,
featuring 15-cent hamburgers, 19-cent cheese burgers, 90-cent malts and 10-cent French fries
(Gregg et al, 2006). After a sluggish beginning, the trade flourished. In 1952, American restaurant
magazines put up a covering storyline on the extraordinary achievement of the brother’s new
notion. The McDonald brothers proceed to franchise and disclose in the west, eight new notion
drive-ins they had invented. They were the pioneers of the industry. Two years after, a food
service salesman called Ray A. Kroc came into the picture. Kroc owned the state selling rights to
the five-spindle multimixers the brothers exploited to assemble the milkshakes, and the brothers
purchase ten machines to carry on their lofty trade. According to Andrew et al (2007), Ray was
granted private privileges by the brothers to expand McDonald’s drive-ins for the United States.
Ray created McDonald’s organisation Inc. during 1955. Ray launched the 19th
McDonald’s, his
earliest in Des Plaines, Illinois and became a specialist franchising agent for the company. In 1961,
Ray acquire from the McDonald’s organisation, together with all privileges to the rest of the globe.
The business that Ray create at the moment is McDonald’s corporation— proceeds to included
over 22,000 McDonald’s restaurants and 4,500 franchisees across 110 nations in the globe.
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11. Established in 1961, university of hamburger is dedicated to provide prospect for
McDonald’s workers to be trained and developed during their job, building up its workforce
throughout every stratum of the business situated in Oak Brook Illinois. In bid to provide for
worldwide workers choice of speech differences; translators and electronic equipment facilitate
professors to teach and commune in twenty two languages. McDonald’s also run seven hamburger
varsities positioned in the USA, England, Japan, Germany, Australia, Brazil and Hong Kong
(Gregg et al, 2006). Ad guru (2005) shares the view that Ronald McDonald, in several words
means “Fun!” The grin recognised around the globe in his foremost TV facade in 1963, the
cheerful comics were described by no one other than McDonald’s come to the Wall Street. During
1965, McDonald’s was made open with the organisation initial offering on the stock exchange.
Around 1985, McDonald was added to the 30-company Dow Jones industrial average. A huge
ideal termed “Big Mac” was initiated company wide in 1968. The Big-Mac was the innovation of
the first franchisee, where in the late 1960s function a dozen in Pitts burg.
2.2 ORGANISATIONAL STRUCTURE
According to McDonald’s Corporation (2005), the managerial arrangements of a company
mostly state the efficiency of the organisation in its administrative style. It confers a momentum
for management competence. The executive players and procedures are entrenched in a bigger
managerial scheme with distinctive structural images. Company such as McDonald has been
proficient to reflect on particular company configuration (See below)
Figure 1
Company Hierarchy
11
CEO
Personnel
Sector
Audit & Accounting
sector

12. (Source: Adapted from McDonald’s Corporation 2005)
The managerial configuration of McDonald is extremely frequent with fast food chains.
Foremost, there are board of directors refer to as the top executive that embrace the chief executive
officer and the employer followed by diverse sectors like personnel, accounting sector, functions
sector and information technology sector (Gregg et al, 2006). The organisation also has store
managers that handle every day shift of the service crew. Gregg et al (2006) hold the view that, in
McDonald there appear to be a product controller and crew leader that are non-executive and there
are managers who are constantly accountable for running every facet of the entire business and
service process. Since McDonalds is a fast food outlet, there is a chain of commands. There are
also local administrators and restaurant managers up to the chief executive officer of the
12
Information
Technology Sector
Regional
Manager
Store manager
Product
controller
Crew leader
Service Crew
Functions &
events Sector

13. organisation. The peculiarity of the managing personnel and the service crew were obvious by
taking a look at the dress.
2.2 SCOPE OF CHANGE MANAGEMENT
In this research study, the scope of change for McDonald is restricted to the execution of
integrated marketing communication (IMC) as element of the marketing strategy of the company.
Usually, publicity or advertising promotions are observed as release marketing providing products,
services and some ideas through several medium of communication. In the same vein, there are
various forms of media that are applied for publicity or advertising promotions purpose.
Essentially in this latest IMC, the spotlight will deeply be on publicity and sales advertising.
Purposely this change will give prominence to the integrated marketing promotion as aspect of the
advertising plan of the organisation (McDonald Corporation, 2005).
De cenzo & Robin (2002) stated that integrated marketing campaign planned to agree to a
newly health-awareness sub-image that are likely associated with the newest drift in health
alertness and the rising fear in obesity among kids and target market. In deed, its goal is to bring in
the acceptance of fresh but reduced calorie menu for kids. The intention here was to oppose the
increasingly awful publicity being frightened at McDonalds. The company is also conscious that
this set of strategy which present value to the health of customer will in-effect enlightened
parents and offspring about the dietary value of fresh ‘soon-to-be called’ Mc kids meals, and how
they are differs from the conventional McDonald’s meals. Additionally the innovation of
integrated marketing communication probably put into action; might offer an effectual promotion
and public relation campaign that will effectively launched the new McDonald to the public. In bid
to carry out such innovation, the company organised the team that would deal with all necessary
issues relating to the change. Furthermore the company put the dietetic content of their food in the
McDonald website. The significant of the change centered on sale promotion and advertising, not
to mention other marketing mix integrated to make the improvement or change successful.
Nowadays McDonald’s range of menu for kids had faced disapproval most particularly its dietetic
content so as to change the public image of the company which prompts the integrated marketing
communication to be employed (McDonald Corporation 2005).
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14. 2.3 HUMAN RESOURCES MANAGEMENT IN MCDONALD’S
According to Ritzer (1993) identified that organisations assume diverse approaches to the
running of their personnel depending on the ways they compete. The argument was that there were
basis for competitive advantage which is innovation, quality and cost. Where strategies revolve
around quality, innovations are typically related to committed labor force. For organisations where
expenses are the majority of the problem, management is likely a significant feature than a
commitment. Though a few height of authority is constantly needed, management is elevated on
the schedule of McDonald. Management at McDonalds is not simply realised by direct control,
machinery, corporal design of the restaurant and in-depth dispensation of regulations and actions
but through staffing. Though inexperienced labours have some influence interrupting the
effectiveness of the business by withdrawing cooperation from the production, and distracting the
process or by merely resigning from the organisation. Workers might yield to the power of the
company. Many are always expected to maintain a strong interest in the use of their workforce
(Beard well et al, 2004). Therefore workers and executives are to some degree independent, but
executive cannot solely relied on force or even acquiescence to ensure quality standard.
Organisation needs to protect active workers consent and cooperation where worker’s hard works
are removed through highly structured systems of rules, as well as rules on ground for
encouragement and for retribution. Company possibly creates more control over employee’s
individuality and morals than while their hard works were removed through express exhortation
(Beard well et al, 2004)
Daniel (1993) in his work argued that issues of subjectively are not distinguishable from the
contribution of the actual tasks practice in interactive employment work as a result of employers
actively manage workers identities. He emphasizes the anguish typically experienced by
workforce subject to organisational exploitation from their beliefs and emotions. The underlying
issue was that not every employee opposes the extension of standardisation to their inner-selves.
Rather several endeavour to create understanding of their roles that do not harm their conception
of themselves. He therefore concludes that in some circumstances service schedule offers
employees and consumers the opportunity which assist their frequent acquiescence in managerial
designs. This however never imply that the routinisation of service effort and the standardisation
of individuality are magnanimous, or did employees, consumers and employer essentially
benefited from these processes in an ecstatic similarity of interest. These directions are frequently
demanding, insidious and exasperating for the employees and occasionally for the consumers who
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15. experience them. The significance of poignant workers in environmental friendly workplace of a
restricted kind found at McDonalds as far as this research is concern can never be underrated.
Company that regularised the service interaction put forth a cultural pressure that broadens across
place of work. Ritzer (1993) and Daniels (1993) argued that when employees are alienated from
their personal smiles the organisation is placing charge, not only to bodily movements but also
their feelings. The organisational monitory strategy reaches intensely into the existence of
employees persuading them to take an influential stand towards their individual characters and
towards the populace. McDonald’s staffs working on a limited service interaction are projected to
organise themselves outwardly by acting amiably, positive, cheerful and polite to consumers
where consumers are bad-mannered and insulting. These apply to every McDonald’s personnel
and their dealings with associate employees and supervisions, on which they show apparent self-
esteem in their job and service.
With regards to this research literature, Randall (2004) rightly point out that when asked how
the company motivates workers; UK and German executives at their restaurants and higher
management level emphasised the significance of excellent communication. Managers are
expected to apply and focus on (1966)’motivators’: achievement’, ‘responsibility’, ‘growth’ and
‘recognition’. This might takes the form of ‘employee of the month’ awards, day trips and cash
bonuses or push employees to strive for promotion and undertake more tasks. On one hand,
according to Ad guru (2005) the striving for promotion entices manager’s and employee’s loyalty
interest in the organisation. On the other hand, this might generate genuine prospect for progress
which perhaps difficult to acquire for those with deprived educational backgrounds.
Administrators are made to evaluate the significance of (1996) ‘Hygiene’ factors, like pay and
conditions of work. Workers have no power on this matter as they are dictated by the organisation.
Moreover training as it’s consider imperative for continuous development within the organisation
strengthen the fact that pay and condition is actually a non-issue. What actually an issue is their
‘positive’ management style and leadership. Andrew et al (2007) defined job satisfaction as a
phenomenon determine through the area of emotional perception not through good conditions of
pay. An excellent manager would therefore ‘solve’ the dilemma of conflict or dissatisfaction
through excellent communication. A UK manager refers to the three Cs (in Germany three Ks):
co-operation, communication and co-ordination, as the focal point for resolving any predicaments.
(Ad guru 2005)
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16. Recognition with the restaurants and other crew is foster through the provision of an
innovative kind of collective, the ‘us and them’ is well known, it is reconstrued to imply ‘us ‘as the
management and crew and ‘them’ as the consumers. Employees are enlightened to consider
individual as element of team players and managements are assigned to liken café administration
with training as a team. The outcome of this type of ‘team players’ appears to be that people are
repeatedly wary to be notice by their peers as creating additional task for other people by not
making their contributions. Randall (2004) explained that even the more aggrieved workers who
had what executive sees as pessimistic outlook will still worked diligently to up-hold the high
opinion of their peers. A distinctive trait of management style was the repetitive use of several
types of languages with paternalistic terms, for instance the McDonald’s family. Organisation and
its executives use expression to illustrate their work situation. Numerous reactions therefore mirror
the impressive paternalistic scenery of the service (McDonald Corporation 2005).
2.4 LEADERSHIP STYLE OF MCDONALD’S
According to Torrington and Taylor (2005) in their work describe leadership as it’s
perceived in McDonalds’ corporate environment as consist of the skills, capability to motivates,
manipulating the thoughts, altitudes and behaviours of other group. Leadership is a practice of
collective control whereby an individual is capable to secure the help and sustain other people in
the accomplishment of a general duty. This research report review Ronald McDonald’s style of
leadership. The basis was rather than becoming a representative or advertising device for the
McDonald’s corporation, Torrington and Taylor (2005) is of the view that Ronald executes a vital
transformational leadership role. Ronald’s current restylisation as a sustenance-health leader is an
element of McDonald’s mainly enterprising managerial revolution. Referring to Bakhtinian
hypothesis of binary recitation as exemplify by Torrington and Taylor (2005), it was pointed out
that while Ronald is cruised by the actual leaders of McDonald’s, his leadership go beyond
executive business legend due to artistic connotation linked with his personality as a comic. This
comic character has afforded Ronald the opportunity to become known as a leader alongside two
interconnected positions of managerial stylistic revolution: from heroic to narrative corporation
and from vendor of unhealthful food to a sustenance-health enterprise.
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17. There are still much arguments of the fact that the transformation is at the broad level of the
organisation. At this height, “an imperative leadership role is to assist the company become
accustomed to its location” for instance persuading foreigners to have a favourable intuition of the
business and the product (and) gaining collaboration and assistance from foreigner upon which the
business is relied on.”(Yukl, 1999b p.39). The bottom line here, according to Yukl (1999) is on
the idealized persuasion and inspiring leadership aspect of transformation. Therefore, there has
been a general view to reveal that Ray Kroc (the founder of McDonald’s) was a visionary leader
who inspired others through his charisma. He saw the potential for standardizing an efficient, but
systematized restaurant model and replicating it across the country. Kroc is quite quoted as saying
“if you have got time to lean, you have got time to clean,” which heighten his goal oriented and
task focused leadership style that still exists in the corporation today.
Moreover, this has tremendously metamorphosed with the passage of time as a result of the
economic trends of unstable market forces and consumer buying behaviors. And what could been
seen from the perspectives of authoritarian or democratic style of leadership. The opinion gathered
from Torrington and Taylor (2005) is that this style of leadership has led the leader and selected
subordinate in the course of making decision. The subordinates have got the privilege to say their
views and thoughts which they considered possibly useful for the leaders in creating ultimate
decision. This type of leadership approach is exceptionally appropriate for execution of change for
the organisation. Through this, the leader of the organisation might likely know the option of the
subordinate so as to successfully implement the changes within McDonald. This in turn as enable
effective and good quality services at all times to customers.
2.3 TOTAL QUALITY MANAGEMENT
Total Quality Management is a managerial style centre on qualitative approach, emphasising on
the involvement of an organisation’s workforce and targeting at long term completion of task,
(ISO 8402; 1994). This is accomplished through consumers’ satisfaction and of great advantage to
the management of the organisation and community. More so, TQM is a philosophical approach
for controlling an organisation in a manner which helps to maintain shareholder expectations and
preferences effectively, without violations of ethical value. According to International Standard
Organisation (1994), Total Quality Management is a managerial conception proposed by W.
Edwards Deming. The notion of this TQM toward accomplishing McDonalds’ objectives is
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18. reducing the faults in the production or service routine, increase consumer’s satisfaction through
meeting customer expectations, simplify supply chain management, upgrading of equipment and
ensure employees have the utmost height of training. One of the basic focuses of TQM in this
research study is associated with limiting inaccuracy to one for every one million items produced.
Total Quality Management therefore related to the growth, operation, and safeguarding of
managerial design that are necessary for different organisation processes towards improving profit
for the company (ISO 8402; 1994). This can be view from effective and good management
policies that delivered quality standards to the customers while minimizing waste as result of
errors resulting from mass production.
2.5 CURRENT AND FUTURE ACTIVITIES OF THE COMPANY
2.5.1 MANAGING DIVERSITY / LABOUR SHORTAGE
The fiscal development in the previous ten years has led to a reduced job loss (4-percent
in June 2007) over a time. The labour market has been tightened to the point where the
development of labour force has lessened greatly. Notably was the food industry rising need for
employees. The projection was that by the year 2010, the fast food outlet is proposed to require an
extra two million people to add to its position. Actually franchise employers are by now taking
amazing new length to locate workforce. An additional projection was that most of the new
candidates of the labour force would consist of minorities, elderly, and women (Hacker 1996).
Solomon (1997), stated that the buzz word for recruiting, training and retraining this modern
alliance of workers is “managing diversity”. Identification of the shifting population and the
shrinking labour force, McDonald’s has fashioned programs to manage worker diversity. In spite
of multiple hamburgers produce yearly, the company is allocating job prospect to two increasing
sector of the labour force; the less- privileged and the old. McDonald’s corporate identification is
intentionally incorporated into the service programs termed Mc Jobs and Mc Masters over the
world. A study by Roger (2002) shows that over 900 mentally and physical disabled individuals
between ages of 16 up to 60 have graduated from the Mc Jobs program and started working in the
restaurants. Specifically elected and qualified management serve as career tutors and worked
intimately with local vocational rehabilitation agencies to supervise every candidate’s
improvement. Career tutors occasionally worked with four or five candidates. Each obtained
18

19. standardize McDonald’s coaching classroom tuition, exhibition and supervisory training at
difference work places.
This Mc Master’s is a universal programs that recognises applicants, tutors and maintain
employees that were age 55 years and older. Also it shows career tutors that works in a similar
way as coaches in Mc Jobs, along with a referral programs which alert older workers towards
opportunity in the company. Workforce recruited during McDonald’s referral programs were
directly matched with a “partner” – an experience employee that assists the team members during
the early coaching. McDonalds are exclusively aimed to raise the chances of older employees in its
company-owned restaurants. Presently, over seven percentage or three employees for every
restaurants are 60 or older, (Roger 2002).
2.5.2 TRAINING
Anonymous (2002), strategically pointed out that McDonalds put great importance in workers
training, currently to achieve a standard echelon of service. This firmly guarded practice describes
as ‘one best way’ and envelops every aspect in the organisation from meeting point to welcoming,
meal preparation, and tidy the floor. While lots of business assesses the execution of training
merely with its effects on outcome or results, the company has drawn a couple of erstwhile
benefits to the in-progress training with requisites towards better output
Organisation approval towards training is found on initial capability using personnel
improvement plan. Intrinsic training for McDonalds works environments and its relation amidst
training and development in the organisation is obvious. Every employee in the restaurant “crew”
is trained on the job by a crew trainer. Training is monitored by means of “Station Observations
Checklists” (SOC) on a fragmentary basis. Successful completion on a set of SOC over a variety
of work duties lead to a little pay rise (Anonymous2002). The division managers were in charge
for training and supervising its progress through a computerized record. The outcomes is utilised
by head office to follow up restaurants progress resulting in a training scores. Also this is a key
pointer in evaluating line managers’ progress. According to Anonymous (2002), the crew morale
is of vital value in its capacity to handled and worked collectively as a group. Consequently crew
members filled in satisfaction surveys where individual were requested to rate the personality
aspect of their work task. There is a link connecting the numbers of well trained staff and
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20. indications such as the backlog of appraisal reviews and worker satisfaction levels which in effect
result to consumer ratings. These records demonstrated that well trained crews are more
industrious than workers who have not been trained, as they would be less productive and
probably create waste. The time taken for a crew member to become totally skilled will affect the
restaurant general performance. (Anonymous 2002)
The company therefore offer training to every workers as well as those that barely worked a
little hours. The structural training programs provide workers with the knowledge required to
prepare the meal and to exhibit that spectacular consumer experience. The training goes further
and could results to a fast track management career (Rogers 2002). Floor manager development
programs ensure the growth of management skills. The company at the moment aspire to build to
its reputation as a leading training institute by providing an atmosphere that support career
training. It is bringing in a fresh crew and restaurant administration programs nationwide and
intensifies the stress on tuition and effective training.
2.5.3 EDUCATION
Supporting education is one of the area McDonalds assisted people. McDonalds is dedicated to
ensure the task in the restaurant is part of the educational development by teaching self-esteem,
dependability, accountability, worker’s skills, time management and financial management.
McDonald’s education department also works with educationalist, colleges, franchise and workers to
organise the company’s various educational initiative. However McDonald’s has created an inclusive
array of educational programs for students at every stage. The subjects vary from environmental
consciousness, health and sustenance to keep fit-in- school and drug prevention programs. Few of the
programs which the educationalist and students partake includes: black history makers of tomorrow,
the Ray A. youth achievement award, and the McDonald’s education award (Roger, 2002)
According to Anonymous (2002) McDonalds is committed to reliable student employees that
consist of a balance between part time job and college, in compliance to minor labour regulations
identifying academic potential and supporting employees towards the progress of their learning
through book/tutor reimbursement programs and local scholarships. Additionally to support actions
that promote and identify success, it has created five programs intended to further education. Two of
the programs, "when I grow up” and “stay in school “center on the value of education, whilst “it is our
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21. business” programs educate students in grade 7 to 10 on economic principles and “It is panic
American commitment to education resource” programs provide schools with scholarship. Also
McDonald’s crew college educational programs provide financial aid grants in accordance to the
united Negro fund to sponsor higher education.
2.5.4 FOOD QUALITY AND NUTRITION
The health-status of McDonald’s meal is sustained by a combination of rigorous product
specification, severe enforcement of functional procedures, and secure operational bond with
suppliers. Provisions for unprocessed and safe to eat products quality were established and
implemented by states Europe and Asia pacific (Thomas 2002). The quality reassurance process
entails in-progress testing and detailed onsite examination of supplier’s services. Also preparation
of food is directly supervised with cooking and equipment maintenance and procedural. Thomas
(2002) ascertains that, in the previous year, New Made for Your food preparation schemes were
set up nearly every restaurant in the United Kingdom, United States and Canada. It was expected
to revolutionise food flavour and quality to enable the company serve hot, fresh, and ready-to-eat
sandwiches. Due to advance technology, the innovative system permits the restaurants to provide
fresh and deliciously-tasty food at an outstanding speed that McDonalds is well-known. The
system equally supports further growth through products development as it is simple to expand an
extended menu (Thomas 2002). McDonalds got dietary section of products available to consumers
so as to assist in making decision on how the company could be part of a nutritious, but stable diet.
Posters were presented with comprehensive dietetic information in U.K and global restaurants.
2.5.5 HEALTHIER FOODS
It has been argued according to Anonymous (2002), that customers demanding that restaurants
provide healthier foods. The company has taken a great step towards this compliant, and this however
altered the manners in which foods are made. A hamburger is prepared with lean ground beef and
enriches sandwich buns. French fries and harsh browns are cooked with one hundred percent
vegetable oil. Milk shakes are ration by 1 percent low-fat milk; and the quantity of sodium utilise is
reduced. Ritzer (1993) reported that it has included additional nutrition meals to the set of choices
namely: low-fat apple-bran muffins, fresh fruits and vegetables, and low-fat frozen yogurt. As stated
by one ad “McDonald’s is dedicated to ensure that once you have a desire for nutrition meal the
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22. company would constantly got the choice to satisfy”. The introduction of fruit bag, carrot, salad and
bottle water help to increase customers healthier demand foods.
2.5.6 RECRUITMENT AND RETENTION
The accountability of the personnel management sector is employing and retaining of well
trained and experienced workers. This was considered as the main activities for employing skilled
persons who will be of asset to the organisation. To recruit the exact applicants, the company has
undertaken quite a few factors such as optimistic work behaviours and technical expertise
(Lockyer and Scholarios, 2004).More specifically; staffing or recruiting today has been highly
worked on by McDonald’s board of executive. Attainment and acquisition of skilled personnel at
every stage of the business is more than an issue of training. This has been deeply rooted from
successful staffing and retaining programs. The staffing and retaining programs for McDonalds
take account of how the job is filter to the candidates, the staffing means employed and the kind of
information convey towards candidates (Blyton and Turnbull, 2004)
2.5.7 PERFORMANCE DEVELOPMENT PROCESS
McDonalds has developed a comprehensible strategy of Performance Development Process
(PDP). It is greatly meant to present a configuration that will improve the convenience on which the
workers and managers worked without distraction of their flexibility. The PDP considered by
McDonald’s is carefully embarked on with dedication from the staff and the board. This is done to
ensure most of the effort that the workers and managers put in their works and to productively realised
the objective of the company to maintain their market leadership and competitive advantage. In lieu of
this, the management of McDonalds carried out a Performance Development Interview once a year
(William, 2001). This is conducted by the district or business executive. Within the interview process,
every single detail about the performance of the workers is sorted out, which include the statement of
the executive that supervised the workers during the period under appraisal. This appraisal endeavours
to identify the improvement requirements of the workers to afford quality service albeit to their target
market (William, 2001).
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23. 2.6 MCDONALD’S OVERALL STRATEGY
2.6.1 REVITALISATION PLAN TO WIN
For the purpose of this research study, McDonald’s revitalisation plan under New Leadership
2003 was considered as the most important years for the business. Under this new board of executive,
a major restructuring were pronounced that focus on closure of over 700 restaurants which are in the
U.K, U.S and Japan; as well as exclusion of 600 employments and accusations of $853 million (i.e.
£436 million). Also drifted away from the consistent dependence on growth of the business through
the course of opening new units to getting extra sales, was to increase profitable growth from the
present units (McDonald`s Corporation, 2005). The organisation intends to grow immensely and
strongly with its three major programs like flawless experience; customer choice; and ubiquity which
were known as McDonald’s plan to win which centered on improving consumers preference (Gregg et
al 2006).The McDonald’s plan to win is identified as 5P’s - People, Products, Place, Price and
Promotion. This strategy focus on what the organisation has branded as the five critical drivers of
success (William 2001)
2.6.1.1 PEOPLE
People were considered as the most essential drivers of consumer’s satisfaction for
outstanding service to the consumers. People or (the workers) were seen as a means for carrying
on excellent consumer service. The labour force is considered as very important resources in
McDonald’s business as a result of transformation of different raw commodity into marketable
goods or service. The productivity of the entire workers will be a reflection of the general
performance of the organisation. (William 2001). Therefore the organisation caters on recruitment
in the restaurants throughout the busy periods and aim at training the workforce consecutively to
provide great services. The organisation also provides latest technical know-how like; new visual
mean that affords the member of staff a more user-friendly system that speed up the service to the
customers, (McDonald’s Corporation, 2005).
23

24. 2.61.1.1 The flawless experience
Gregg et al (2006) explained that the plan to win entails reorganising the total experience
chains from the onset to its exit. The objective was to create the experience more personal and
interesting, which assists to enhance the pace and simplicity at the counter and in the drive-through.
The plan focuses on store managers so as to put into service the flawless experience. Although, the
organisation were initially accepted for reliable quality and cleanliness during the introduction of
corporate standards and rigorous system-wide supervision, this new advance was considered as less
appropriate for the purpose of creating a more personal experience which all customers expect
nowadays. It was accounted that a qualified and dedicated onsite manager could render this service.
The aspect of this strategy will assist to sustain the benefits of the company vis-à-vis its strong
brand image and reputation across the world, and the hamburger varsities can be employed to its
totality. In contrast, Gregg et al (2006) point out that the strategy can assist to focus on the failing
areas of the organisation concerning the poor managerial policy which results to feeble product
development and innovation. This strategy will equally assist to encourage the employees more, which
might lead to considerable worker satisfaction, and thus assist to improve the business in various parts
of the world. Additionally, the organisation will probably utilize the capability and expertise of the
workers to meet the varying demands of the consumers.
It will equally relieve the organisation to take lead of the diverse opportunity like the growing
needs of the fast-food outlet. Progressively, people across the globe are increasingly dependent on
different fast food outlets owing to the varying socio-factors like work and related schedules. More so
the rising needs for a reduced price menu and excellent service is growing due to industrial
revolutions. That was the reason for great and high-speed service of the workers towards increasing
consumer satisfaction. (Gregg et al 2006).
2.6.1.2 PRODUCT
This organisation centred on product by responding to the variation of tastes, demands and
expectations of the consumers. The prime goal of the organisation is focusing on the rising
interests of the consumers to healthy food choice and quality products in several parts of the world
(Shook & Shook 1993).
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25. 2.6.1.2.1 Customer Choice
Solomon (1997) object to the advocacy of differing company towards the health dilemma
which is obtained by consuming Mc Donald’s food (and other fast foods ), and his view was that
the industry were facing veto vote from parents, guardians and children between infancy and
teenage, in addition to those which need a wider menu selection. This strategy is employed to
facilitate the brand image of the organisation to nutritional ways of life and existence, since the
organisation entrust itself to food and menu improvement. For instance the chicken mc nugget, in
spite of its recognition and achievement was not all that a chicken nugget may well be. As a result,
the typical version of mc nugget were prepared by pressed chicken, specifically identical to
hamburger or a dissimilar assorted parts which are joint and hard-pressed into a simply feasible
whole. That was the reason the organisation launched the premium chicken nugget which are
prepare with the breast meat only. What’s more, the organisation provides salad and swaps the
shaken salads that were composed mainly of shredded iceberg lettuce with a mixed salad that
includes sixteen different lettuces (Solomon, 1997).
In addition the organisation offers fresh items in the menu which include various fruits and
yogurt parfaits, fresh soup variety, mc griddle and new crispy spicy option for their consumers.
Owing to the fact that the organisation has a strong brand image, reputation and a strong
international recognition, these has assisted the organisation to become further linked with the
changing nutritious requirements of their consumers. Additionally, it helps the advancement and
growth process of the organisation by improving the healthy substance in the menu that could
enhance the value and flavour of the product. Alternatively, this tactics serves as a competitive
advantage for the organisation in taking care of the intensive competitions in a large-scale fast
food outlet (Solomon, 1997; Shook and Shook 1993).
2.6.1.3 PLACE
Place is another point of consideration. The company focus on ensuring that the restaurants
are cleaner, relevant and modern. Also the organisation designed the restaurants like a venue to
consumers wishes to hang out, so that it can offer the kind of meal which they would like in a
contemporary, fashionable and feel at home environment which the customers desire for, either
enjoying the food in the company of friends or family (William 2001).
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26. 2.6.1.3.1 Ubiquity
McDonald Corporation (2005) reported that the organisation started on and executed
diverse initiatives which assist to improve all restaurants ambient temperature. Owing to the
increasing needs for technology and its significance, the organisation installed wireless technology
which assisted to make wireless hot spots in various cafés in twenty eight nation states. This
assists the organisation to allow the need for working customers to access their mail and works
throughout their stay in the restaurants. Moreover, in a few nation states, Mc Donald combines
coffee houses which provide first-class coffee, muffins and even pastries at reduced cost so as to
increase organisation’s demand towards the adults. More so, to ensure that the store of the
organisation is cleaner and more modern, the organisation put into action a number of renovations,
reconstructions and relocations of the same building in pursuit of the set objective of the
organisation to provide new, sophisticated as well as friendly environment (McDonald
Corporation, 2005).
“When and where you want it” had become the glimpse at the organisation, in which the
primary objective of the organisation is to recommend McDonalds variety to the consumers in
spite of his or her locality, which imply that the organisation strive to prolong its foundation and
establishment of traditional restaurants to increase its density in various locality wherever
consumers likely to locate the café. The organisation need the growth of new foot print that would
lead the organisation to various few township, food court, resort destination and other essential but
unique places or venues (Gregg et al 2006). This strategy would assist the organisation to sustain
its image, reputation and its strong existing assets port folio. Additionally it would make the
organisation to highlight and solve its problems with regard to its obsolete restaurants in
multifarious locations which could affect the image of the organisation. Besides, it allows the
organisation to center on the varying preference of the consumers towards technology, owing to
the setting up of wireless internet. As a result, this condition would configure the company to
retain its place in the international market, in spite of its intensive rivalry (Gregg et al 2006).
2.6.1.4 PRICE
Price is a significant feature as a result of its huge impact in the purchasing behaviour of the
consumers. It is momentarily significant to look into price as a single essential part of market.
26

27. Therefore, due to the fact that Mc Donald’s is a multinational organisation, it has to considered
diverse behaviours and traditions of the consumers towards making decision with regard to price
(Shook and Shook 1993).
2.6.1.4.1 PRODUCTIVITY AND VALUE
In term of this, the company concentrates to provide a wide range of products at a variety of
price points which is quite appealing to the price sensitive consumers. Besides, the organisation
offer quality product for most consumers that is eager to pay more. The organisation equally
focuses on method for determining the price driver which comprise of activities that increase the
worth for money and restaurant margins (Anonymous, 2002). This supposed strategy has often
triggered the organisation to seize the advantage of the popularity with regards to low-priced menu
items in various parts of the world, predominantly in the emergent nations and particularly in fiscal
and economic crisis, (Anonymous, 2002).
2.6.1.5 PROMOTION
According to William (2001) Promotion is the concluding phase of this strategic approach.
The organisation focused on creating trust and brand loyalty. This is imperative since promotion is
the principal links between the brand and product to the target consumers.
2.6.1.5.1 BRAND AWARENESS
The organisation provides several communications which strengthen and sustain brand and
subsequently linked and relayed it to the important segment of consumers that consist of the
families and adolescents. In spite of this, the organisation has a strategy to carry on building bonds
of trust among the consumers and the whole neighbourhood where the organisation execute its
trade. The organisation put into service diverse programs during this strategy for instance “I’ m
loving it” campaign which were initiated in the globe in 2003. Additionally, several efforts are
undertaken so as to present the café as a comfortable location for the families by providing quality
salad and improved happy meal, (William 2001).
27

28. What’s more, the organisation set Ronald Mc Donald in a famous position in their
advertising efforts to the consumers. The organisation equally exploits the benefits of the corporate
social responsibility (CRS) in a way to strengthen their reputation in the market. The organisation
also focuses the campaign in the direction of the youngsters by featuring diverse music from well-
known and renowned recording artists (William 2001).This promotion efforts and activities of the
organisation enhance the improvement of its strong brand image and popularity. Ronald Mc
Donald’s famous position in promotion equally assisted the organisation to get additional support
from kids, by providing range of products which help the organisation to get better, not just on the
expectations and needs of the kids, but also to the demands of the adults. According to William
(2001) this creates a feeling that McDonalds is a venue where family and friends could get
together and enjoy valuable time. The CSR also sustain the representation and status of the
company as a result that the increasing importance on the CSR has a greater control in the
relationship between the organisation and its prospective shareholders like: investors, customers,
retailers, merchants, employees, society as well as government. Therefore, it has helped to
generate remarkable impact towards consumers particularly at the moment where increasing
numbers of public have become conscious of the present societal and ecological issues in various
parts of the world.
2.6.2 CUSTOMER SATISFACTION OPPORTUNITY INDEX (CSO)
McDonald Corporation (2005) reported that each time consumer chooses McDonalds; they
look forward to hot fresh food dish out fast and correctly in a neat surroundings with crew or
managers that are responsive to their requests. Through investigation from in-house and outdoor
statistics, it was known that there are five (5) vital Q.S.C drivers of consumer satisfaction as
shown below. These are the bits and pieces consumers would like to expect in all visit.
QUALITY hot fresh products and hot salted fries
FAST Total experience time under 5 minutes
ACCURACY Receive everything ordered including condiment
FRIENDLY friendly and efficient service and effective communication
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29. CLEAN Dining area neatly-tidy, clean toilet as well as clean workers
To assess ways to achieve these critical drivers, McDonald’s create the C.S.O index. The
C.S.O is the percentage of visits that miss one or more of the vital drivers of customers’
satisfaction. This acts as a measurement to gauge the extent the company is meeting customer’s
expectations anytime they walked into the restaurants. The Understanding of this, give a sense of
balance between how the restaurants rate their own performance on measures that is vital to the
organisation and how it is rated explicitly from the consumers (McDonald Corporation 2005).
C.S.O is determined on the premise of the numbers of mystery shop visit which miss a critical
driver question, if one or more critical drivers are missed, the mystery shop visit is only calculated
once. For instance if 100 mystery shop visit are conducted and 40 of them have one or more
critical drivers missed, the C.S.O is 40%. The purpose is to reduce the numbers of visit that are
missing a critical driver (lower C.S.O % =better performance). However, to ensure a correct
assessment of the customer satisfaction opportunity, the questions include in the C.S.O are those
that have significant impact on customer satisfaction (McDonald Corporation 2005)
2.6.2 MYSTERY SHOPPING
One of the fast growing segment of McDonald’s restaurant is mystery shopping. Mystery
shopping sits partly in the midst of market research process as it is concerned more with testing
sales methods in commercial establishment than measuring or explaining things through survey
methods. There is a fear that the integrity of research could be compromised by market research
field workers implying to be someone who they are not in their pretence as shoppers. However,
McDonald Corporation (2005) indicates that this actual role played by mystery shoppers has been
an aspect of the whole customer satisfaction measuring technique. On occasion, it however
possible to discover the level of extent an organisation achieved actual consumer satisfaction via
testing the system with a suppose enquiry or purchase.
According to Anonymous (2002) mystery shoppers are members of the public who visit the
restaurant and access quality, service and cleanliness. Each restaurant receives two random visits a
month. At the time of the day, the mystery shopper is expected to come into the restaurant between
8:00 am to 10:00am; 12:00pm to 14:00pm and 17:00pm to 19:00pm. The time of visits for the
29

30. mystery shoppers as highlight above is what McDonald strategic executive called Gap buster. The
whole essence of the mystery shoppers during the Gap buster is to access the five (5) critical QSC
drivers on the basis of speed, quality and hygiene and customer friendliness. The food must be
order and serve within one minute and it must be fresh, hot and well presented to the mystery
shoppers. The reason for this was to make McDonald’s staff aware of the customer’s expectations
and to be time conscious during rendering their services (McDonald Corporation 2005; Ad guru
2005)
Typically, mystery shopping is used to test the speed with which the service is rendered.
• The length of time to get through customers on the queue
• The courtesy of the sale assistants
• The knowledge and skills of the sale assistants
• The total time taken to process the customer`s order in the restaurants
• The efficient of the sale team leader
2.6.3 McDonald’s PROMOTIONAL CONTESTS
Daniel (1993) in his work re affirms that, like many retailers, McDonald’s offers prize money
contest to attract consumers into the restaurants. While Gregg et al (2006) is of opinion that, state
lottery regulations usually prohibit an organisation from managing its own contest to avert scam
and to make sure that every single prize money offer is paid out. McDonalds had a lengthy
association with Simon worldwide inc. that is accountable for the allocation of the contest prices
and disbursement of major prizes. McDonald’s contest are based on “collection” basis, where by
more than one contest piece had to be gathered to win a prize (though quite a number of contest
piece were “instant” winners). Contest of this sort usually create one or additional contest piece
rare, in order to make it hard to find (Daniel, 1993). These are printed in a very small quantity
under secured conditions and afterward mingled with more common piece to guarantee a random
distribution to the consumers.
2.6.4 PROMOTIONAL STRATEGY AND THEIR TARGET MARKET
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31. In this perspective, McDonald’s has effectively make use of a differentiated market
segmentation strategy to target the family units and especially kids with their “happy meal” and
price. McDonald’s has customarily provided reduce price than any hamburger outlets, which have
made McDonalds to gain support of larger-size families. The locality of the restaurants has been
instrumented in making McDonald’s productive as well. It was the earliest hamburger outlet to
develop into the suburbs and crowded downtown areas of larger urban cities (Greco & Michman
1985). The question of targeting kids mostly with commercial advertisement similar to that used
by McDonalds occasionally raise lots of issue more than most topics which involve strongly held
view and opinions. A lot of advertisement has specific target audience and the target personality is
considered accordingly. It is however feasible for a single commercial to address many target
audiences and still attained recognition, (Greco & Michman, 1985).
McDonald’s corporation (2005), rightly capture McDonalds has one of the fast food
industry that mostly target kids as audience, their commercials nearly all the time target many
audience particularly families. An instance is the McDonalds advertisement which illustrates a
working mum in a company suit showing her husband and lads everything in the refrigerator and
freezer. She’s going on a business trip and has co lour-coded the plastic wrap around all the
food.... blue is for broccoli, red is for… dad and the kids are just looking at her, not paying
attention. Then unexpectedly a dad pulling stuff out of refrigerator for dinner, asking the children,
‘what do you want for dinner, blue or red? They say, ‘let’s go to McDonalds.’ McDonald’s
corporation (2005) and Greco and Michman (1985) indicate that McDonald’s equally pay attention
to international fundraiser benefiting Ronald McDonald house charities and kids around the globe.
Assisting kids and families in need has been the most important thing which the international
cooperation does for the neighboring communities.
2.7 CURRENT STRATEGY & LEVEL OF PERFORMANCE
2.7.1 TQM v ORGANISATIONAL PERFORMANCE
According to William (2001), the plan to win strategy of the organisation has really assisted
McDonalds to improve their current position in the international market. During 2004, the money
which is provided via operation has grown from £320 million up to £2.3 billion as a result of
increase margin which are influence due to larger sales from the present restaurants. Within U.K
31

32. however, the organisation attained a growth of 9.6%, considered as greatest improvement within
the period of 30years. In addition, the organisation had further add to the total of Mc café from
26,093 in 1999 up to 30,496 in 2008 which help the organisation to serve more than one million
consumers a day contrast to 2007.The stock of McDonalds were equally value to 29% which had
assisted to boost the annual cash dividend of the organisation to more than double contrast with
2006. Additionally, the organisation was tagged the ‘marketer of the year’ by the media hype age.
Also the organisation were rated as number one in the lit of fate of top fifty places for minorities to
work. It has been a second successive year for the organisation to be given this credit.
A study by another survey of fortune (2008), McDonalds was rated as the top five most
advanced organisations in terms of accountability. This development proved that the set plan of
the organisation had worked in a year. Presently the organisation is still putting into practice this
supposed strategy whereby the organisation center on being a singular brand, one system and one
plan. Shook and Shook (1993) is of the opinion that the structural coalition of the strategy, justify
the company towards that which is quite essential to the consumers which assist to imbibe a
vibrant framework on the approach that is employ in the international trade. The organisation is
focusing additionally in the aspects of human resources where it establishes priorities in several
strata of staffing, coaching and reward so as to retained work place flexibility in their restaurants.
The organisation is also evaluating the performance of the people by standard employees’
appraisal which assists in increasing the responsibility of the crew and manager in the
organisation. Furthermore, McDonald’s also offers development from the crew room to the board
room beginning with the on-the-job training in the organisation’s Mc café and afterward making
progress to the college level management classes which were being provided by the hamburger
varsity. The management establishments of McDonald’s provide accelerated programs to about
two hundred highly prospective personnel from the entire system of the organisation. Therefore,
during 2007 the organisation was rated as one of the top twenty international businesses for
leaders (William 2001). Additionally, the organisation also focuses on product improvement and
development. At present, McDonald’s offers snack wraps which provide flexibility to adapt to the
local tastes.
During 2007, there have been 115 countries or thereabout that has taken part in one of the
most outstanding campaigns of McDonalds and its association with DreamWorks Shrek the third.
This campaign alongside with the assistance of the Shrek certified nature had made the course for
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33. selecting milk, fruits or vegetables as part of happy meal more exciting for children than
ever. Therefore Gregg et al (2006) point to the fact that to convene diverse needs and behaviours
of consumers in various area of the globe, the price decision making differs from one locality to
the other. This is because there were markets which are considered as price sensitive. This is
therefore the reason for the organisation working in partnership with its suppliers and leverage
diverse economics of scale so as to ensure a consistent and effectual supply of high quality
ingredients at competitive and predictable prices. Consequently, the overall comparable sales have
improved with a growth of 6.8% from 2.1 billion in 2006 up to 2.8 billion during 2008. The
organisation also shows 12 billion in the overall revenue and 25% three year compounded annual
earnings to the stakeholders (which is twice over the three year earnings of the S&P 500 and the
Dow Jones industrial average). For three successive years the organisation had been incorporated
in the Dow Jones sustainability index which mirrors the organisation’s efforts towards CSR
(Corporate Social Responsibility) (Gregg et al 2006)
Conversely, Total Quality Management in a contrary view has been a unique feature of
managerial roles throughout the company, it has consistently assist McDonalds actualized its
realistic target of meeting or exceeding consumer expectations. T.Q.M envisages strong focus on
procedure capacity and control as means of continual development (ISO 8402, 1994). TQM has so
far achieved the way of improving the objectives, policies, procedures and manpowering in
ensuring that the exact nature of the task were executed rightly at first time. This tactical method
has changed attitude, employee mindset, behaviour and thus resulting for the best part of the tasks.
The whole essence of TQM is applied to the entire McDonald’s organisation. TQM has also
covered the soft matters relating to ethics, attitude and culture within McDonalds (ISO 8402,
1994).
2.8 MCDONALD’S v FAST FOOD INDUSTRY (Strategies)
2.8.1 Marketing Strategy
The marketing strategy which fast food outlets employed is to get the consumers to start
off at a youthful age. Nearly every singular restaurant provide children toys alongside with the
meals, mostly toys are part of a collection with the intention that the kids would persist in coming
back to the restaurants to acquire additional toys and in turn purchase more foods. A study by
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34. McNeal et al (1980) attempted to explain this as the biggest and exciting element of fast food
achievement. In this research, one will always question why fast foods companies have outlets
almost all over the place. The response was quite simple, owing to the fact that this had been an
aspect of their marketing strategy. Global recognition and high visibility was a definitive idea of
fast food outlets. With the big signs, posters, billboards and advertisement illuminating the town,
the fast food industries are undeniably come to stay.
2.8.2 Selling Point
This strategy is basically synonymous to fast food restaurants. Convenience is the principal
selling point for fast food companies. Plainly, these industries provide their meal on the till.
Consumers make a choice from the menu, and the food is quickly set on a tray and off the
consumers goes. Also most of the fast food outlets provide drive-through services which even
make it more convenient for families and working adults on the go (McNeal et al, 1980).
2.8.3 Franchise
Due to its intense competition among the fast food outlets, many of them embarked on this
Strategy sooner than operating its new locations which in turns provided large returns with small
operating cost (Robichaud and khan, 1988).This strategy often times offer the preliminary
investment necessary to construct the restaurants as well as sustaining it during reinvestment.
While direct restaurant operations is more capital intensive relative to franchising and often
resulted into a reduced restaurant margins as a percentage of incomes. Over a period of time, a
study by Hume (1992) argued that McDonald’s has shifted its restaurants portfolio towards
franchises. Though McDonald’s was the leading company in the fast food chains in terms of
profits making and increasing numbers of restaurants, it faces rivalry from new and existing food
outlets that similarly introduced new products themselves. The Main rivals in the (hamburger-
based) fast food companies include:
Burger king Holdings- This is the second biggest hamburger fast food outlet. Though, most of the
Burger King’s restaurants were franchised than income trace behind that of its rival, mostly owing
to the McDonald’s size advantage.
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35. Wendy’s- This is third biggest hamburger fast food outlets. It has a reduced operations margin than
McDonald`s, therefore it might probably be more negatively impacted in the era of economic
downturn.
Yum! Brand-This runs KFC (Kentucky Fried Chicken) and Pizza Hut. These were taking over the
market in U.K and presently posed a threat to McDonald’s.
Further to the foremost rivals, McDonald’s also compete alongside: non- hamburger based fast
food restaurants (like Panda Express); local and national dine-in-restaurants (such as Pizza
parlors), coffee shop (star bucks), convenience store, super markets and others. McDonald’s main
competitors and its related franchise are revealed below:
FRANHISE CHAINS
COMPANY RESTAURANTS FRANCHISED REVENUES
( $) M
NET MARGIN
McDonald’s 32,478 81% 22,745 20.0%
Yum! Brands (KFC) 37,000 10,836 10.0%
Star buck’s 16, 635 47% 9,775 4.0%
Wendy` 6,451 80% 3,581 0.1%
Burger King Holdings 11, 925 88% 2,537 7.9%
Domino’s Pizza 9,339 91% 1,404 5.7%
(Source: Data from company FY annual reports 2009)
2.8.4 Customer Retention strategy
The fast food companies are experiencing quite a few related changes within the market
which varies from fierce globalisation to an intense rivalry. The forces of demand on the industry
nowadays seems further increased by a market where the consumer acquisition rate are decreasing,
consumer loyalty are reducing, and sales sequence is broadening. In such a situation, losing a
valued consumer to a rival could have a considerable impact on productivity and development.
Therefore lots of fast food outlets had changed their strategic approach from consumer relationship
management to consumer retention (Hume, 1992).
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36. 2.9 FINANCIAL POSITION OF THE COMPANY
McDonald’s corporation
Fiscal records as of the year till 31 December 2005
Business returns: $20.5b (2004:$19.1b) - comprise organisation trades and amounts from
franchisees
Transactions by organisation function café: $15.4b (2004:$14.2b)
Revenues from franchised and associate café: $5b (2004: $4.8b)
Net income: $2.6b (2004: $2.3b)
Figure for cafés: over 30,000 in over 119 countries (over 8,000 organisation-owned)
Figure for workers: 1.5 million globally (398,000 organisation personnel, 1.1 million franchisee
employees)
Figure for franchisees: roughly 5,400 nationwide
McDonald’s restaurants Ltd
UK revenues up till 31 December 2004:£1.6b (2003: £1.09b)
Figure for UK cafés: over1, 250 (784 organisation owned, 465 franchised)
Figure for UK drive-through cafés: 735
Figure for UK in-store cafés: 519
Figure for Mc Cafe: 9
Figure for UK workers: roughly 67,000, as well as franchisees
Figure for UK franchisees: 198
(Source: Mc Donald’s corporation 2005)
Margin expansion
Around the year 2004, McDonald’s margin enlarged with 40 basis points and their profit
margin is 11.95% for the trailing twelve months. The expansion in the overall equivalent sales is
one of the major issues that have contributed to this widespread development, since the growing
equivalent sales assists to offset high commodity expenses. All through the widespread evaluation,
the margin for expansion seems to be promising in addition to a huge market capitalisation; this
has resulted to a stable increase of large quantity of investment.
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37. 2.9 CHAPTER SUMMARY
This chapter constitutes the overall strategies that have been used by the company in
order to increase sales product and revenue; boosting employee’s morale and capability
towards improved performance; targeting new customers and retaining existing customers.
The historical evidence on how the organisation emerged to what is now known as today was
explained. The scope of change management, human resource management and leadership
styles and total quality management were also discussed. The current and future activities of
the company as well as the current strategy v level of organisational performance were
examined in this chapter. Mc Donald’s v fast food industry strategies were looked into to
compare the similarity among the companies. The strategies used in Mc Donald’s are quite
synonymous in every day business within the fast food outlets. The question is how effective
are these strategies? This is however, the issue underlying this research work.
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38. CHAPTER 3
3.0 METHODOLOGY
3.1 INTRODUCTION
This section dealt with the methods employed, which aim at recognizing the operations of
McDonald’s restaurants and the impact of the company towards their employees, and how it’s
been coordinated to achieve excellent performance to meet corporate objectives. This involve
collecting and reading related literature which consist mainly from textbooks, internal reports,
consultant papers, company journals, article reports, presentation and research reports from other
writers. This section equally highlights the methodological strategy which would be applied in the
study of the company. This will involve inductive and deductive approach with an illustration of
the underlying research philosophy which is based upon. First-hand and second-hand source
would be employed in due course of the study. The limitations encountered will be examined.
3.2 RESEARCH PHILOSOPHY
This research contains information concerning the facts which are collected from focus
group as well as field notes. The focus group is one technique of carrying out qualitative research
in this dissertation. Field notes, on the other hands, involves comments receive by researcher to
record unstructured remarks explain in the field and the understanding of individual remarks. All
this, however contains an element of interpretivist, positivist and realist philosophies, (Saunders et
al 2009). This therefore made the research like other business management researches complicated
to be classified into only one philosophical domain; rather it is a mix of positivism and
interpretivism which reflect the stance of realism which has been the motive that influence this
research analysis.
3.3 RESEARCH STRATEGY
The strategy of this research revolve round the general position and sense of direction to
the conduct of this case study aim at pursue an intensive analysis using multiple source of
evidence to achieve targeted outcomes that has long eluded the company’s actions, (Bryman and
Bell 2003). The detailed analysis of the operation of the McDonald’s which is undertaken, dealt on
the following questions: Are the strategies providing the services in line with the objectives on
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39. which it was established? Will it be sustainable to generate more profit for the organisation?
What are their effects on the target market? There is however strategies employed during the
course of this research. These are: survey (the use of questionnaires); and action research (inquiry-
based research where the study carry out for the purpose of making change by correcting the
existing problems. This is done by examine the existing situation; structuring questions regarding
their performance; collecting, analysing, interpreting data as well as using the research outcomes
to develop and improve their expert skills), (Daymon and Holloway, 2003). This research
dissertation will focus on the use of these strategies. The approach to this study would be in line
with the use of inductive and deductive approaches. The question perhaps may be if this method
can really be employed. The underlying objective of this study will therefore be to analyse the
existing problems of the company with respect to the views and feedback from the individual
consumers. The current company position will equally be tested by the results got from the
questionnaires distributed to the organisation. The data obtained via the questionnaires will then
be used for the process of analysis.
3.4 RESEARCH POPULATION AND SAMPLE SIZE
A sample size is that part drawn from a population or universe which shows a
representative of the sampling areas for the study, (Saunders et al, 2009). The entire population of
the company understudy is put at 3000 workers. Of this number, 200 respondents that formed the
study sample were drawn from the 6 districts of the company in accordance to their numerical
strength size. In line with this, allocation of questionnaires was also made on the basis of number
or size of the employees in each district. This implies that allocation of questionnaire was
indiscriminately administered. In selecting this study sample, two factors influenced the
researcher’s action. Firstly, given the time allotment for this study it was not possible to cover the
entire words. Secondly, this study sample was undertaken to minimize cost (Saunders et al, 2009).
3.5 RESEARCH METHODS
This is the back bone of this research analysis. The intention of using this method is to
collect data or information for the research. After the problem that prompted the research is
examined, the necessary information for the study of the problem would be gathered and
investigated. The rationale behind the scenery of data to utilise would focus on the outlook of the
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40. inquiry, and the particular nature of the research problem, (Williman 2001).This researcher utilised
first-hand and second-hand source in a form of quantitative and qualitative data collection, which
are the two main sources of research methods. This research will employ both sources. The first-
hand data includes the following: questionnaire, telephone interview, and focus group (Saunders
et al, 2009).
3.5.1 FIRST-HAND SOURCE
This is a primary source acquired from its original data. It deals with the new information
specifically related to the case study. Primary source did not exist before it is intended to respond
to particular questions of interest of the study. The major primary research method employed was
the conducting of questionnaire. The merit of having this style of research for this dissertation is
to help produce results that are exact depiction of the sample, (Brown, 2003). There are several
methods used in primary data collection for this research. The selections to this method depend
upon the intention of the study, levels of education of the people to deal with, the skills of the
researcher and the resources available. This type of data collection for the study of this research is
the use of prepared questionnaires, telephone interviews and focus groups, used in obtaining both
the quantitative and qualitative data and information. The questionnaire was sent through email
and direct mail to the respondents. The respondents consisted of the company employees and the
customers. These respondents filled out the questionnaires and sent back in the form of a
feedback. The questions were in a very clear and simple format, so that the respondents had no
difficulty in filling them out. The questionnaire also carried questions that gave the employees and
the customers the possibility of expressing their views concerning the activities and overall
performance of the organisation as well as customer service related
To acquire suitable information; behaviour, attribute and opinion questions was raised.
Each question aimed at suggesting and creating argument for the basis of establishing facts for the
research. The opinion questions sought employee’s personal view while behaviour questions
target customers’ responds to the service rendered to them. Though this does not constitute fact,
but it provides individual the joy of expressing their feelings that were specific to a peculiar issue.
Attribute questions were also employed to give insight or information about employees attribute
such as occupation, satisfaction and length of employment (Brown, 2003).
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41. 3.5.1.1 QUESTIONNAIRE
The use of the questionnaire was one of the methods employed to collect an empirical
sample of the study. The merits and demerits of this questionnaire as opposed to structured face-
to-face interview will be discussed. The safeguards that are needed to put in place for a successful
outcome when administered questions will be further examined as well. According to Sapsford
(2007) administered questionnaires are usually quicker, easier to do and save a researchers’ time
which allows large amount information to be administered than structured face-to-face interview
which was the reason why this questionnaire was used for research data collection for this study.
However, the former can be distributed in mass, typically where the learning work relating to a
great deal of sample size and vast demographic regions. Printed questionnaire nowadays has
become more cost-effective as the amount of survey questions increased, but face-to-face
interview cannot be conducted in the same way unless many interviewers are employed. For
instance, one could afford to get at least six postal questionnaires against one interview if the
feedback survey is sent out with a pre-paid returned envelope to minimize refusal or non-
completion for every interviewer-administered schedule if the interviewers have to be pay and
cover their travel cost.
Another important feature of administered questionnaire for this research was that, it is an
entirely a necessary standardized instrument of measurement in which the questions constantly
phrase precisely in a similar manner towards every participants. But it’s not easy to exercise
accurately an identical wording and intonation in each single case. There are constantly aspects of
individual response during the interactive section when conducting structured face-to-face
interviews, (Sapsford, 2007).What’s more, questionnaire is simple to evaluate. Sample entry and
tabulation for almost every survey could be simply carried out by loads of workstation software
processors. It is evidently known that questionnaire is more recognisable to majority of the public.
Practically everyone had got quite a few knowledge of completing questionnaire and usually never
make individual uncomfortable. It also reduces partiality. This is because the researchers’ personal
opinion would not make the respondents to react to question in a specific way. Questionnaire is
equally less disturbing than telephone and face-to-face interviews. Where the respondent takes a
questionnaire, he/she filled in the survey questions at a convenient time on his/her agenda. In
contrast to related research technique, the respondents are never interrupted with the research
mechanism, (Sapsford, 2007).
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42. Moreover, one of the shortcomings of a questionnaire as a data collection method in this
thesis is that there’s none to clarify what the questions meant as well as assist the respondents to
understand that which are required. Therefore, there is an unknown magnitude of incorrect data as
a result of misconception especially postal or remote questionnaires. Likewise it is hard to receive
a first-class feedback rate. Frequently there are no momentary drives for respondents to take
action. Questionnaire like many evaluation methods, take place subsequent to the event, so
respondents might forget essential matters. There is also an issue of participants responding
outwardly particularly if the questionnaire takes a lengthy period to answer. Therefore the general
mistake of including as many questions as possible is circumvented in this research study. More
so, open ended questions generate huge amount of data but, its problem is that it could takes a
lengthy period to be processed and analysed. The technique of restraining that in this research
dissertation will be to restrict the space available to the participants so that the response is brief or
to focus on a relatively few groups of interest. Thus, it is really essential for the purpose of this
study to make questions clear, simple and unambiguous, (Sapsford, 2007). Of the 200
questionnaires distributed, there were 180 responses. The percentage of these was 90%. This gives
the researcher a kind of relief outcomes, bearing in mind the factor of anonymity.
3.5.1.2 TELEPHONE INTERVIEW
The other method which was use for collection of primary data was telephone interviews.
These are quite common in the fields of market research and business environment where changes
are imminent and inevitable. One merit of this, they are far cheaper and quicker to employ.
Telephone interview is unlike face-to-face interview where the interviewer has to spend a great
deal of time and money traveling between respondents (Bryman and Bell, 2003). For the purpose
of this study, telephone interview will be conducted for respondents who might have the
convenient time for answering or preferred call interview. Nevertheless, telephone interviews also
suffered from certain criticism if compared to face to face interview, for instance people who do
not posses or who are not contactable by phone are obviously cannot be interviewed. In a business
research where there are potential presents of sampling bias, this is characterised as lower-status
customers. There is however quite a number of huge response from the telephone interview,
(Bryman and Bell, 2003).
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43. 3.5.1.3 FOCUS GROUP
In this focus group, questions were poised to an interactive set of a group whereby
respondents are at ease to discuss with other members of the group.The focus group employed in
this research are twelve people that consist of selected customers, and long service employees.
This group was collectively chosen to discuss a particular subject matter in-depths relating to the
company. In this research study, the level of education of the focus groups as well as their
international exposure to foreign issues was notably considered for the purpose of selection into
the group’s formation for discussion. The key selections are equally taken from the six districts
based on their profiles. However the authors of this research uses this styles of interview because it
is a significant tool for collecting relevant and informative data.It also affords the opportunity to
investigate intricate behaviour like what the diverse groups feel about a topic and the reason for
the group to held such opinions and could as well assist to identified changes in behaviour.Focus
group however, are especially important in examine the performance of a company relative to its
position in the economy, as these allow the easiness of gathering detailed information and probe
people’s view to formulate accurate and strategic decision making, (Saunders et al, 2009).
More so, focus group had experience an “awful publicity” in the past, mostly because it was
executed in a manipulative way and the feedback were misconstrued in an attempt to squeeze in
the perceived outcome preferred by the persons carrying out the focus group. Nevertheless, focus
group has some shortcomings: The researcher has little control on a group than face-to-face survey
and so, there could be lost of time over an issue not relevant towards the subject matter. The data
were tricky to analyse, since the discussions are in response to the views, opinions and remarks of
other members of the group; observers/ moderators meant to be skilfully coached, and groups were
relatively variance and could be quite difficult to bring together. However, the numbers of focus
group are never sufficiently large to reflect the popular size of the populace; subsequently, the
sample got from these groups are not true representation of the entire population, in contrast to the
data of opinon polls, (Saunders et al, 2009).
Focus group is a "Single shot case study" particularly when it is used to measure a property-
disposition arrangement within the social sciences where it is repeated. Focus group could produce
diverse topics of external validity, mainly the responsive effects of an investigating arrangement.
A fundamental dilemma to focus groups is the issue of observer dependency: the outcomes of the
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44. analysis are influenced by the researcher, thus questioning the issues of validity. This invokes
associations with Heisenberg`s popular Uncertainty Theory. As stated by Heisenberg, "What we
observe is not nature itself, but nature exposed to our method of questioning." In reality, the
structural design of the focus group survey (e.g. selection of participants, the ways in which the
questions is asked, the pattern it is phrased, how it is posed to respondents, the background of the
setting, to whom it concern with, etc) varies the response obtained from the participants. During
focus group, the researchers (and moderators and observers of the focus group, if the researchers
are absent) were not observable moderators but also part of respondents. Therefore, a moderator of
this dissertation has taken that into consideration while carrying out the research (Tjaco, 2003).
The focus group conducted was quite interactive and outpouring of opinions; views and
comments. The author regards this active participation of respondents as encouraging.
3.5.2 SAFEGUARDS REQUIRED
Whatever form of the presentation, there are demerits of using questionnaire, telephone
interview and focus group. Certain safeguards have been recommended by various scholars to be
put in place in order to be successful. The following are some of the recommendations which had
been seen incorporated in the operation of McDonald’s questionnaire, telephone interview and
focus group towards improving profits in the industry (Bryman and Bell 2003).
(i) CLARITY OF QUESTIONS
As previously said, where the interviewer is not present, it is essential that questions contain
in self-administered questionnaire are clear and unambiguous. However, particular care was taken
on the wording of the questions so that they were clear and concise as possible as well as putting
on measures to avoid confusion and misunderstanding (Sapsford, 2007).
(ii) OBTAINING THE CORRECT RESPONDENTS
Reaching out to the correct respondents in this research is extremely important and the
questionnaire set out for this purpose is no exception. All questionnaires were sent to McDonald’s
branches that were in strategic position during their meetings and busy period time to avoid the
occurrence of respondents giving excuses of not reaching them. On the telephone interview, the
44