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Business English II

Case Study BSI II: ORGANIZATIONAL EFFECTIVENESS

For Business English II Students,

McDonald’s: Can It Regain Its Effectiveness?

The McDonald brothers’ first restaurant was founded in 1937 just east of Pasadena, California. It didn’t event serve hamburgers, had no playground, and no Happy Meals. The most popular menu item was the hot dog. Ray Kroc built McDonald’s into a mammoth business that still has 42 percent of the U.S. fast-food burger market. for Decades McDonald’s growth and profit margins were the envy of the world. McDonald’s was considered an effective business with tremendous potential for growth domestically and internationally.

Consumer tastes constantly change and adults began to get bored with the McDonald’s menu in 1960s. Responding to environmental pressure such as changes in consumer tastes, McDonald’s introduced a new sandwich called the Big Mac. As consumers grew weary of beef McDonald’s introduced bite-sized chunks of chicken in the early 1980s and within four years was the nation’s second-largest poultry seller.

McDonald’s changed as the environment demanded. It become the most recognized brand name and built thousands of golden acres stores. McDonald wanted to provide consumers what they wanted at a fair price and the best quality. However, in the 1990s McDonald’s had tried pizza, fajitas, pasta, fried chicken, and low-fat sandwiches and they have all been failures.

For a company that enjoyed significant growth for five decades based on its ability to read environmental trends, the failures have been shocking. McDonald’s has been unable to capitalize on its brand name or move beyond hamburgers and french fries. During a period when Americans are eating out more, McDonald’s has failed to capture a growing portion of the market.

the problems facing McDonald’s in the United Sates are spreading   to its overseas markets. The easy markets such as London and Moscow have been entered. Now the firm is entering less bustling markets in Eastern Europe and Latin America. McDonald’s is as also faced with the quality-control problem of building more and more stores without carefully checking product quality. In a survey for Restaurants  & Institutions magazine in which 2,800 consumers graded chains based on the taste of their food, McDonald’s ranked 87th out of 91. Consumers around the world want taste and quality when selecting a restaurant.

The organizational effectiveness of McDonalds is now a serious concern among franchisers, executives, and stockholders. How or whether McDonald’s can make the necessary changes to gain be the growth-oriented organization it once was is questionable. McDonald’s management has to identify the causes of the lost luster and then take specific steps to correct the problems.

As a business English student, you require to make a deep analysis and discuss the following questions:

  1. How can McDonald’s use its powerful brand name to help improve effectiveness?
  2. Is quality and taste important to you when selecting a restaurant? explain.
  3. What environment forces are the most different as we enter 21st century when compared to the 1950s and 1960s.

Post your answers in “leave a comment” menu in this page at the latest of 7th June 2011.

This case study is taken from:

Gibson, J.L., Ivancevich, J.M and Donelly Jr., J.H. 2000. Organizations: Behavior, Structure, Processes. 10th Edition, McGraw Hill. USA

About yuniartihidayah

Monash University, Australia, PPAK UB Interests: Listening to music, reading, traveling, eating delicious food, and networking

Discussion

12 thoughts on “Case Study BSI II: ORGANIZATIONAL EFFECTIVENESS

  1. 1. powerful brand of mc donald can help the factory to improve effectiveness. brand is very important when we doing business because brand is our character if we have d=good brand it means that our product will be receive by consumer.mc donald should improve their quality of their restaurant not only the taste. it will help them to built their business.
    2. quality and taste are very important when selecting the restaurant. usually people think that taste is the first factor when choosing restaurant but for me quality and taste in the same rank of prominent factors because many of delicious foods but they do not include in the quality food (health food). we must selecting the great restaurant which has two criteria because health is very prominent
    3. in this era 21st century the consumer more careful when they choosing the restaurant and in the 21st century there are many restaurant built than 1950s-1960s so mc donald should has more control to their q

    Posted by Zainiatul Mazidah-08320007 | June 7, 2011, 1:10 am
    • sorry mam…
      i will continue mc donald should have more control to their quality of their food. so mc donald can survive in this era.

      Posted by Zainiatul Mazidah-08320007 | June 7, 2011, 1:12 am
  2. 1. to be “the first business setter” as what Imron, a businessman said is one of reason why mcDonald being sucess up to now. although no various kinds of food there but mcDonald is wanted to provide consumers what they wanted at a fair price and the best quality. it is not strange then if mcdonald is sucess up to now, because it can defends the quality and serve the consumers as they want.
    2. for me selecting quality and taste of food in restaurant is really important. at least clean food is health and i like the clean restaurant because i am almost sure that clean restaurant is providing clean food.
    i am not easly like kinds of food, so selecting the taste is something important for me.
    3.

    Posted by istihlaliyah (08320075) | June 7, 2011, 6:32 am
  3. 1.McD as the early consenter at the same time pioneer .it considered to be effective business with very big potency for the growth of national and international level.
    Organizational effectiveness of Mcdonalds have come to serious attention among franchisers, then all the executive and stockholder of the company.
    And Mc D can change which is nedded to become orienting organization at the past development which is t questioned when there is a problem Mc D also takes specific steps to improve the solving problems.

    2.Yes of course, quality and taste are important things on deciding appetite eat. Beside that it is one of my satisfied,
    3.Consumer appetite always change then lately start to be bored with the menu of Mcdonald’S in 1960. The environment pressure like change of consumer appetite, Mcdonald’S introduce new sandwich is called Big Mac. As consumer start to tire of steak of Mcdonald’S introduce chicken bite in early 1980 and in four year.

    Posted by nur ismawatil m (08320026) | June 7, 2011, 7:24 am
  4. 1. Choosing a brand of a product is the important in business life. Brand represents the product resulted. Brand consists of the emotions that prospects feel when consumers think about company or product. McDonald is able to help improve effectiveness because this brand always survives the consumer needed. When the society bored with McDonald service, McDonald is able to give a solution by providing new dish or service to the consumers. It makes McDonald to be a restaurant able to improve effectiveness.
    2. There is no doubt for me as a consumer that quality and taste are the important one when choosing a restaurant. Quality and taste cannot be separated because of them are one unity. Based on my experience that the quality of restaurant influences the taste of the food. Quality usually represents the standard of something as measured against other things, it can be the cost/ price. Than taste represent the hygiene or the sensation of flavor perceived in the mouth. Then, a good quality and taste will persuade the consumers when selecting a restaurant.
    3. The differences between 21st when compared to the 1950s and 1960s is the challenging. In the 1950s and 1960s, McDonald might be the powerful brand and influenced many people to choose it. There was no high environment force in 1950s and 1960s that challenge McDonald’s restaurants. So thats why, McDonald to be the popular restaurant at that time. However, when entering 21st, there are many restaurants which provide variety food. Many restaurants grow up nowadays fast. They compete each other for being the first restaurant. It makes the high environment force. So, if McDonald still want to be the first restaurant, the owner must keep the quality in this challenging era.

    Posted by khusnul khotimah - 08320023 - Business English II | June 7, 2011, 10:34 am
  5. 1. Mc Donald is famous brand name. it can be used to improve the effectiveness. One of the ways is bringing back consumers confidence, such as increase the quality of food, include the taste, the hygienic of the food and the eat spot is clean.
    2. Perceive to the second question, of course the quality and the taste is very important when selecting the restaurant. The restaurants will be valued has good quality if those restaurants can give a satisfaction for the consumers. The form of satisfaction is the taste of the food which served indeed, if the restaurant has a good facility such as clean place, there is refreshing place like garden family.
    3. Environment force was change for every period. As an example is life style of the society. Specifically when choosing the food. Like McDonald, firstly consumers like McDonald menu, hot dog in 1937, but in 1960 consumers began to get bored with McDonald menu and it can be broke of boredom of McDonald menu.

    Posted by Mufidlotu Zuliana | June 7, 2011, 11:10 am
  6. 1. The largest a fast-food restaurants from America, is not bad if the owner of the restaurant is named as such it because Donald Duck came from America. So they use the McDonald’s name that was originally created for that name on the attraction to small children, their primary targets are children because the children would easily attract the adults and so now spread to adults. They choose it to eat without considering the effect that occurs. Like the adults eat the place just to keep the Image Corporation.
    2. Strongly agree, because the quality and feel is important in determining the superiority of a restaurant. On the other hand we choose a restaurant just because you want to choose the food and cuisine in terms of quality (level of cleanliness, neatness and uniqueness in presentation) and flavor taste in food. So that way we can see a place to eat is guaranteed.
    3. Very clearly different, more advanced age people worked together and a sense of mutual solidarity that high, but currently all products and a shift domestic trade product in which all people have to choose the goods from the outside. That is really easy to hegemony without them knowing it and everyone is doing all their activities because industrial revolution not by need.

    Posted by siti fatimatuz z (08320066) - business english II | June 7, 2011, 12:33 pm
  7. 1.Brand is very important in the trade. Most of consumers are likely to have more believes to a product depend on the brand product. McDonald’s has proven that it is able to has good competent and maintain the quality by the time, so consumers do not have to to think more to buy the products of McDonald’s because they had believed in the quality of McDonald’s.
    2.Yes, because the taste and quality are part of customer satisfaction. Whether consumers served by the best quality and taste are satisfactory then they will not hesitate to return to the restaurant.
    3.In the 21th there are many types and choices of food. This is more diverse and competitive, consumers now are smarter to choose which is good for their consumption and which are not essential for them. So manufacturers have to be more creative in presenting and providing services to consumers.

    Dita Laras Cindy (08320010)

    Posted by Dita Laras Cindy | June 7, 2011, 12:53 pm
  8. 1. Brands is very important because Brands are about promises that persuade people to buy. They aim to create trust, which is the first step on the persuasion path.
    2. Yes, Why would I want to spend money at a restaurant that has nasty food?, for the quality we can talk about the service and the place/material property of the restaurant. it would be very nice if the resturant has friendly waiters and good management. for example it’s essential to take good care of complaints from customers. these are two of many reasons people come back to a restaurant after some try outs. for the place, it’s also important for me that a restaurant is clean (table, chair, plates, etc). it is difficult though to make sure that the food is also clean/hygienic. the design or interior of the restaurant sometimes are taken into account when we choose a restaurant. it creates fine nuance while enjoying the meal and talk.
    3. The differences between The differences between 21st when compared to the 1950s and 1960s is the quality and brands. Because in 21 st, people assume that the quality of reataurant not only about taste but also about health, place, service, and advertisement. We know MC Donald because of watching television or reading newspaper. In 21 st eneryone more easy to get imformatiom from from many researchers. That is differences with 1950s and 1960s people know Mc Donald because of Talking and Hearing. Technology is the highest factor of Mc Donald change the system of brands and service.

    Posted by CITRA PRISKI ABADI BS II (08320021) | June 7, 2011, 9:38 pm
  9. 1. The brand name of one product is very influential to the successful of the company. to get intention or trust from consumers, the company should able to satisfies the consumers. From its brand name, consumers will be interested in and easy to recognize the product. the way how it should make a power for the brand name, of course it should make a good quality and taste of the product better so that it can be admitted or reached by the costumers. places and economical matters are also important. it should know the economical level of people in the society. and sometime the cultural background of the society is really important to know. It can improve the effectiveness by enlarging the company and knowing the social condition in one society. but before that, it should make a good advertisement to make the product well known.
    2. yes, it is very important because the taste and quality can make the costumers feel satisfaction. people need a good services and good product. if the taste is not good, people will not like it. costumers need to be happy by its quality and taste.
    3. social living will be changed among the time is running. it means that technology, social life and including the taste of people will have an improvement or a change. thus the consumers’ taste to the product change, then in lately they start to be bored with the menu of McDonald in 1960. The environment will different than before and it pressures consumer appetite. in this case, McDonald introduces new sandwich that is called Big Mac for its solution. As consumer start to tire of steak of Mcdonald’S introduce chicken bite in early 1980 and in four year.

    Posted by kamaruddin - 08320005 - Business English II | June 10, 2011, 8:59 am
  10. brand is very important. but the important thing to sell the product are the quality of product and the taste. because, before knowing about the brand some people will taste weather the product is delicious or not. if the product is delicious, the product will properly be sold to the customer. by that, some people will share that product to their relative that the product is delicious. then the product will spread mouth to mouth. the product will be recognized by many people as delicious product. then, it will improve the effectiveness. the environment forces in 21st century compare to the 1950s and 1960s is the competition. the competition in 21st is harder than the pass. and in 21st the are many advertisement show that their product is more than other. and it very easy to get advertisement because the technology provide the sophisticated

    Posted by Mujib misbahaudin- 07320115 Bsi | June 13, 2011, 4:29 am
  11. 1. Image in this case is the image McDonald fast food restaurant which is a franchise from overseas. Creation of image in this regard include promotion by McDonald’s both through media advertisements, special offers for consumers, as well as symbols and slogans are created. In addition to promotion, image cultivation is also strengthened by the ministry (service) given to consumers. From this concept, is the image which consists of promotion and services (service) provided the McDonald to their customers. McDonald’s image in the eyes of consumers will increase seen from the factor services (service). A good and very fast, compared to other similar franchises.
    2. The quality and taste of a dish decisive in choosing the restaurant. This is because
    in the food business (restaurant) there are some things that make customers choose is a comfortable place, reasonable prices (according to the intended target class), good taste, good quality food and pleasant service. A restaurant that can satisfy all these criteria can be sure will always crowd with customers. One of the considerations the customer to return to the restaurant in because restaurant can keep the taste and quality.
    Sold. Dishes are not out today; do not be sold again the next day. That way the quality of the cuisine will be maintained. Avoid selling fresh cuisine that does not rest yesterday. Because once consumers were disappointed with the quality or taste unpleasant, can not come back again. Even can also tell others evil, and will result in dropping the good name of the diner.
    3. The 1950s and 1960s.
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    Century 21
    Globalization. The reality of the 21st century is not new in human civilization. Inter-continental trade as ‘silk lines’ longstanding. Waves of this history in the history of cedar can be called global / mondial (worldwide) because it involves a cross-country trade. Globalization itself for some social theorists regarded as the wave of the future of human civilization. The most important of these is the globalization of capitalism. Capitalism that stimulate the industry to indulge in meeting the needs of human life. With such a powerful influence, capitalism offers ease in society. Just look at the goods come from abroad to easily get at the mall, outlets in the market even though the products full of global buyers. Capitalism by itself will produce power in humans with the commoditization of various forms of product, color image, which can stimulate the imagination of consumers.
    Reproduction global goods with shapes, colors and modern image is then transformed into a cult. In another form of brand [say] Planetsurf, Billabong, Nike, Adidas, Coca-Cola, KFC, and McDonal was a sign that not only as an ornamental decorative glass shop, but also affects our everyday interactions. Baudrillard borrows the term that replaced the economic value to the value of the sign. Humans consume goods not only seen from the sheer economic value but the values of social status.
    These famous brands show significant social change in a society of consumption. Commoditization of that never ending will ultimately lead to emptiness (nothingness).

    Posted by EKA FARID RIZKIA BSI (08320077) | June 25, 2011, 12:44 pm

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