Since the last decades the fast-food industry has been developing rapidly and has effectively penetrated majority of the market internationally. MC Donald, started in 1954, is now the world leading global food service retailer generating a revenue of 28.11 billion U.S dollars in 2013 (MC Donald’s revenue 2013). Contrarily, due to the poor managerial function, Taco Bell , an American chain of fast food restaurants founded in 1962, hits upon a weak sales during 2000 (Taco Bell corporation). This essay will discuss about the different managerial skills namely planning, organizing, leading and controlling adopted by these two organizations. Planning refers to the most important means, which one must use to ensure success of an organization (Wren, Bredeian and Breeze 2002, 906-918). Changing their Big Mac into Maharaja Mac show how Mc Donald is being actively engaged in building strong customer relations.
In comparising, Taco Bell were not respecting the quality of their product as it contained genetically modified corn which results in lower sales (Dorey 2000, 1136-7) Organizing are building strong labour forced to help the business to perform in a competitive way. In order to make improvements, MC Donald focus mainly on training his workforce professionally, they also delivered training programs up to 40 languages to help employees to adapt to different cultures. Taco Bell, in 1988 due to his poor labour management, sales were being lost (Hueter and Swart 1998, 75-91) Leading is the use of influence to motivate employees to achieve organizational goals (Richard Daft, quoted in Rysward Barnat, 2014). Donald Thompson, CEO of MC Donald, has led the company thought a very competitive period and maintains their market share. Taco Bell was engaged in infringing stage laws as they were not paying employees who work overtime for them (New York Times 1997).
Controlling is an ongoing process which determines whether the film on target towards its goals. MC Donald make their employees work according to standards. Each franchise must abide the severe supplier policies. Taco Bell following a pressure campaign launched against them, they had to increase the wages of the farm workers who supply them tomatoes. Through strict and clear approaches under the winning leadership and planning of Donald Thompson, the CEO of MC Donald has created a good image for the company and therefore these results in loyal customers. Conversely, Taco Bell with his poor managerial skills, they suffer a lot from weak sales for their products. A perfect combination of the four management function of Fayol has been the key driver behind the success of MC Donald.