Project Paper- Restaurant Management: Research Paper

Project Paper- Restaurant Management
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Project Paper - Restaurant Management
Restaurant management is one of the critical aspects of expediting set objectives. For that reason, the top executives ought to possess outstanding management skills to facilitate effective operations and the success of a business. Over the years, most restaurants have adopted modern forms of technology to manage such companies effectively. For instance, software systems can expedite a systematic order of foods and drinks (Nyheim, 2018). Besides, customers can provide feedback regarding provided services through the same software. Although management of a restaurant can be one of the most stressful aspects, effective leadership can enhance productivity and profitability.
The company has emerged as one of the leading global food retailers with its fast-food restaurants across 119 countries. According to estimates, McDonald’s serves around 69 million individuals daily from a worldwide perspective. The company focuses its vital business strategies on price, promotion, place, products, and people. As a result, it has enhanced its experience to adapt to the needs and expectations of customers. The top executives utilize sound financial discipline and management to expedite its expansion across new locations in the United States. McDonald’s uses a franchise business model to maintain and expand its operations. The model has facilitated the success and profitability of the company. Notably, the franchise model enables the scaling of innovative ideas that helps to meet the needs and preferences of customers.
Company Summary
McDonald's Corporation is one of the fast-food restaurant chains with more than 31,000 branches across 119 countries. Sandwiches, soft drinks, breakfast items, chickens, and hamburgers are the company's primary products. McDonald's offers a wide range of products in various countries to satisfy the needs and expectations of customers. The company has emerged as one of the largest fast-food restaurant chains based on a foundation of innovation and creativity of its business strategies (Nyheim, 2018). Menu changes, technology development, franchising, and marketing are the key strategies at the company. McDonald's restaurants are cozy and modern to suit children and adults' preferences. The company has emerged as an integral part of the communities it serves by delivering a locally relevant experience.
McDonald's operates in the fast-food industry that involves selling food and beverages for taking away or sale in retail premises. Take away, street vendors, and leisure locations are the major categories of the market. McDonald's and its close rivals, such as Burger King, dominate in offering burgers with the market comprising of independent restaurants and large chain outlets. Low entry cost and an increase in the number of outlets are factors that have intensified competition. In the restaurant industry, players focus on fast foods, with profitability dependent on increased turnover activities. The degree of pricing is relatively high within the industry, with most companies focusing on the same market.
Targeted Customers
McDonald's' primary target clients include business customers, teenagers, young children, and parents to young children. The company focuses its marketing towards the group for its high-quality products. McDonald's commits to provide high-quality food products at a reasonable price. The company developed a unique pricing structure to support the objective. The dollar menu is one of the exceptional pricing strategies that the company adopts in selling its products. However, the company offers value-priced meals resulting in its tremendous success from happy meals in offering fruits and other healthy choices. Notably, the marketing team focuses on the needs and wants of customers, thus, ensuring it to be the best place to enjoy meals.
Competitive Advantage
Well-established global fast-food chains such as Yum Brands, Burger King, and Wendy’s Co are close rivals to McDonald’s. Similarly, Starbucks offers intense competition based on its immense popularity across the United States. However, McDonald’s has emerged as a leader in the fast foods industry based on its advantages of convenience, innovativeness, quality products, and affordability. Despite intense competition in the fast-food industry, the company has leveraged its strengths to overcome the weaknesses (Leung, 2019). Besides, McDonald’s emerged as a leader in the market for its particular focus on competition and outstanding customer service. The top executives utilize innovation to sustain their competitive advantage over the close rivals in the market.
Equally, McDonald’s utilizes international market expansion and cost leadership strategies to sustain its operations. According to Kandampully et al. (2018), the management uses licensing and franchising as new forms of market entry to increase its overall sales volume. In most instances, the company utilizes product and service standardization to outstanding against its close rivals in the market. McDonald’s has focused on attaining a high level of customer satisfaction through high-quality products and exceptional customer service. The company uses digital platforms to gather customer’s feedback and address any form of complaints. A focus on customer service has become essential for businesses from a global perspective. In such a case, the company attains outstanding customer loyalty and a high retention rate. Over the years, McDonald’s has realized the need to engage customers in the business to gain a competitive advantage.
Balanced Scorecard
Monetary value is a critical concern that the management team should consider in assessing the performance and value of a business. In such a case, the top executives are likely to ignore the non-financial benefits of implementation. According to a balanced scorecard, the performance of an organization should entail both non-financial and financial parameters. Since the hospitality industry is highly competitive, the related companies focus on both economic benefits and non-financial aspects of performance. Stakeholders should have a balance scorecard policy in the systems in determining if or not a manager performs effectively. Notably, a balanced scorecard addresses customers, learning/growth, and internal business operations as the main pillars of the business.
An excellent adaptation to the scorecard at McDonald’s has led to its current growth and expansion. Following a critical focus on significant areas of the balanced scorecard, McDonald’s has improved its customer satisfaction, internal business operations, employee satisfaction, and financial status. The management systems at the company are unique since the top executives invest in research and extensive training. A balanced scorecard provides the capability of assessing a business based on financial measures, customer measures, learning/growth, and internal business processes. An economic perspective helps determine an enterprise’s value involving return on investment (ROI) and technology.
Financial Perspective
McDonald’s operates on a cost leadership strategy, which involves lowering prices for the commonly produced products. Besides, the company focuses on sales and profitability as crucial aspects in expediting its success. As such, a store manager has a core obligation of specifying the areas that need improvement. The company can increase its production, delivery times, and market share based on cost leadership and consistency. A stage in a lifecycle reflecting on financial growth and downturns influences financial perspective. The managers at McDonald’s ought to calculate the wastage that should be avoided in a specific area of the locality as a meaningful measure. On a larger scale, the measure expedites the overall growth and expansion of the company. The core target is to calculate the finances of each of the restaurants.
Customer Perspective
In such a case, the top executives identify market and customer segments to facilitate the effective operation of the business. Market share, customer retention, profitability, and market share are the common forms of objective customer measures. According to Horng et al. (2018), a meaningful action that the managers at McDonald’s restaurant would set forth is to identify the performance of employees through the feedback of response. An expected level of performance would be to keep current achievement at a high level to ensure that employees serve customers with perfection as one way of expediting the attainment of set goals. Customer perspective entails following customers’ perception and gauging employees’ commitment, link to productivity, and competitive aptitude. A key recommendation of attaining the set goals would be giving food items as a parting souvenir to ensure that customers are more willing to order the various products.
Internal Perspective
In the internal business processes, top executives develop objectives for the processes resulting in customer and financial perspectives. Top-level management should identify internal strategies to enhance financial goals (Horng et al., 2018). Quality of products, innovations, improvement of existing processes, and time-based approaches are standard performance measures. One of the underlying philosophies of McDonald’s is to become one of the largest food suppliers across the world. Quality is a prime factor for the company to meet the needs of customers and a competitive advantage over the close rivals in the market.
Learning and Growth Perspective
Learning and growth are capabilities of organizations in attaining enhanced internal processes to achieve shareholder and customer value. Therefore, the top executives should focus on infrastructure that leads to long-term growth and development, such as technical capabilities, training, skills, employee satisfaction, and information. Meaningful top executives at McDonald's can manage to attain a focus on training funds. Each of the managers has access to a portion of funds needed to train the employees and acquire relevant skills to address customers' needs. Besides, the manager ought to evaluate the performance of the employees through the use of a performance appraisal report. A clear strategy of attaining an expected level of performance is to allocate each of the employees a target to fulfill. Each of the workers should have a preset number of customers to enhance the organization's performance and overall growth.
Potential Technologies for McDonald’s
Modern technologies are compelling developments that can enhance the effective operation of an organization while attaining the core set objectives. McDonald’s is one of the companies that have the potential of thriving by adopting modern technologies in its management sector. In such a case, it would be possible to attract new customers and retain the existing ones to drive its overall growth and expansion. ...