McDonald's Planning Function

Planning function of management in McDonald:
Planning is the process which is used to identify goals and objectives, develop strategies and
outline tasks to accomplish those goals and objectives. Planning function also decide up to what
extent organization is efficient and effective.
Planning includes the following:
• Which goals should follow?
• How should the goals be attained?
• How should resources be allocated?
Now, I have chosen McDonald for completing my assignment. McDonald is the world’s largest
and also the leading retailer in fast food services, serving 47million customers per day, having
more than 30,000 restaurants and present in 119 countries. McDonald holds a leading share in
worldwide branded quick service restaurant sector and also the one of the most well recognized
and valuable brand through out the world. The founder of McDonald is Ray Kroc.
Main reason of the success of McDonald is their ability to effectively manage their organization.
McDonald also faced many challenges like local taste of people, cultural values, and traditions of
specific area in which they want to enter. For example, in India people are mostly vegetarian and
they don’t eat beef. So McDonald changed their Big Mac into Maharaja Mac, made from lamb
meat instead of beef. They changed their strategy just because to gain popularity and to indulge
in the area in which they are present. So according to cultural values McDonald changed its
strategies. So these things effect directly to the operations as well as planning. Internal issues like
availability of resources at all level from top to bottom like each store and outlet. McDonald also
makes good alliances for supply chain. They planned properly for supply chain and kept good
control over their supply chain partners in each area so that they got delivery in time.
McDonald has world wide many large numbers of employees. McDonald thinks that the money
which they are investing upon their employees as an investment not as an expense. This thought
improves their HR management.
McDonald’s also focuses much on performance appraisal system because they think their
employees are the best source of success. They have very large set of employees working with
them. They set proper standards to measure, accomplish and achieve the goals, either their
employees are meeting the goals or not. Employees are accountable for their duties and
responsibilities. They made objectives and plans flexible so that their employees easily follow
these plans and don’t feel much burden upon them.
Their performance appraisal system makes the job analysis system more satisfied. They focused
much on the working behaviors of their employees rather than the personal traits. They
communicate to their employees so that if there is any deficiency in employee performance so
that they can identify that and repair their performance so that they get good reward for this.
Most important thing of their performance system is this that they take proper and regular
feedback from their employees. This technique gives the employees feeling of belonging and
sense of power. They trained their managers very good so that they conduct proper evaluation to
achieve the future activities which are significant and essential for the organization. McDonald
also wrote, documented and retained their appraisal system for ensuring of proper evaluation and
rating. Also so that when they need that record they can use them easily.
Legal, ethical and social responsibility issues that effects McDonald:

McDonald had some issues in their French fries. As we know that French fries made from
potatoes and is totally for vegetarian. So the people who are vegetarian easily take fries. But
McDonald did not tell any one that they were using beef flavor in their French fries while
cooking those. And also they were using beef flavors in other vegetable items. So they got
claimed for this. This case revolved around in 1990 in McDonald’s.
Another case that is also related to the French fries of McDonald’s. Many children who eat
McDonald’s fries suffered severe intestinal damage because of unpublicized change to
McDonald’s French fries recipe. After this McDonalds has provided complete list of ingredients
for its French fries so that people get aware that they are able to eat the fries of McDonald’s or
not, and also to get rid of these kind of cases. McDonald’s issues a public apology to settle down
these issues.
McDonald’s think that diversity is not only the moral and ethical issue but also the business
issue. Due to its globally expanded business now diversity becomes the integral part of
McDonald. McDonald changed its policies because of diversity because they had to change their
policies according to the culture and local traditional values. They adopt local tastes and cuisines
of the society. This change made them the industry leader. McDonald has won many awards in
U.S.A for diversity.
McDonald has been involved in charity work since 1970’s. They also established charity house
for those families who have ill children receiving medical treatment at nearby hospitals. More
than 10 million families benefited from this comfort.
McDonald is also environmental friendly. They are also engaged in lot of environmental friendly
activities like innovative program for recycling, waste reduction, etc.
McDonald is also an opportunity employer. They give jobs, train people and also promote them
without any discrimination to gender, age, race and sexual orientation.
McDonald also play important role in Florida’s tomato industry in 2007, to improve the
conditions of farm workers and to make this industry sustainable and profitable business.
These ethical and social strategies of McDonald make the company more successful throughout
the world.
Three factors that influence McDonald’s strategic, tactical, operational and contingency
planning:
The legal, ethical and corporate social responsibility effects the company’s strategic, tactical and
contingency planning. Company has to keep its ethical and social issues preplanned in the
planning phase as McDonald has done this. They plan all the activities properly so that these
factors do not effect’s the company negatively. They also solved their legal issues so that their
good will never get affected from this. McDonald always keeps their customers on focus and
plans their activities according to cultural values and norms. They molded their self according to
their customers values, cultures, atmosphere, believes and norms. Diversity and global expansion
are the issues which make McDonald’s to change their policies according to the values and
norms of that community. Now while making policies, rules and other strategies companies
always keep in mind business ethics because now this is become important as other business
activities.
References:
http://www.suite101.com/content/corporate-social-responsibility-at-mcdonalds-a211782
http://management-process.blogspot.com/2010/04/ethics-and-social-responsibility.html
http://www.freeonlineresearchpapers.com/external-internal-factors-affecting-mcdonalds
http://www.apsc.gov.au/media/brush200898.htm

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How does McDonald's plan for supply chain management?

What issues did McDonald's face regarding their French fries?

Planning function of management in McDonald:

Legal, ethical and social responsibility issues that effects McDonald:

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