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Managing Stakeholder Relationships Ass

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Mc Donald’s is an American fast food company, founded in 1940 by Richard and Maurice Mc Donald, In California, United States. The two brothers redesigned the business as a hamburger stand, and later turned the company into a franchise. Ray Kroc, an entrepreneur joined as a franchisee and later purchased the chain from the Mc Donald’s brothers. Initially, the company’s headquarters were in Illinois but in early 2018 it was moved to Chicago.

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Mc Donald’s is a Multinational company- world’s largest restaurant chain by revenue serving over 69million customers daily in over 100 countries across approximately 36,900 outlets as of 2016. The company is well known for hamburgers, French Fries, Cheese burgers. It also serves breakfast foods. However as a response to negative publicity and changing consumer tastes because of the unhealthiness of their products, the company added fish, fruits, salads and smoothies in its menu.

Mc Donald’s generates revenue from royalties, rent and fees paid by its franchisees as well as company operated restaurant sells.

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The products are chicken, French fries, Hamburgers, Soft Drinks, Milkshakes, Salads, Desserts, Coffee, Breakfast Wraps, Chicken Mc Nuggets and strips, Big Mac, Fillet Fish, and other Beverages. They provide free Wi-Fi and free delivery of services.

The competitors are Kentucky Fried Chicken, Burger King and Subway.

The customers of Mc Donald’s products are of diverse ages, income levels, gender, race and occupations.

The stakeholders are Employees, Customers, Communities, Government and investors


The Key Aspects of Building Mc Donald’s Brand Reputation 5


Power and influence of Mc Donald’s stakeholders.

Power is defined as the ability to do something or act in a particular way. For Mc Donald’s, employees are its top stakeholders. The interest of employees in the company is career development and fair compensation. Mc Donald’s addresses these interests through a number of training development programs. For example the company maintains Hamburger University, which is a training facility for its personnel. It has a global mobility policy that supports leadership development. However, the company pays low wages that are almost down to the level of the legal minimum wage, even if the employees keep demanding for higher wages. In this case, the employees have power to stop working in Mc Donald’s because of low pay. They are interested if the company provides good working environment and continued employment. They can add value if they are skilled, motivated and committed. So, Mc Donald’s can motivate them to work hard so they bring success to the company. If the company fails to do this, the employees may leave the firm. An employee who has potential growth opportunities within the company has even bigger stake. Mc Donald’s offers company stock plans and profit sharing, adding to the employees” interest in doing well at work. As such, employees are considered as internal stakeholders

Customers are the only source of revenue in Mc Donald’s so it is essential for the company to meet their needs. the interest of customers is to be provided with products at affordable prices and more healthy products. Mc Donald’s corporate social responsibility initiatives ensure affordability of products through standardization and supply chain streamlining. However, the company is widely criticized for the health effects of its food. In this regard the customers have power to stop buying food from the company because of not providing good quality and healthy food since they negates the benefits of staying healthy.

Mc Donald’s supports communities as one of its main stakeholder groups. They are interested in community development support and environmental programs. To effectively satisfy their interest, the Company has to listen to their concern because if they do not listen them, they can complain which causes the organization to change its working practices and also take support from local and social media causing the company to invest more. For example, if the company is causing noise pollution or air pollution to people who are living near the place, they can complain and take support from other people so that the company can take actions to take good care or improve the environment.

Governments are external stakeholders and they are interested in the health and well-being of citizens. For example they are interested whether the company is providing healthy food for their customers so that it does not affect their health. The Government has the power to impose legislation regarding health of its citizens. Since Mc Donald’s has many branches in different countries all over the world, it has to adhere to the rules and regulations of the Governments in the different parts of the world it operates in failure to which, the governments can deny them the rights to operate in their countries even their franchises if they do not provide healthy food for their citizens.Every business considers investors as a stakeholder group. Investors are interested in Mc Donald’s growing revenues and therefore profitability. The company addresses these concerns through stable business operations. The company has a low but stable growth rate. Introducing of new products such as through Mc Caf? helps the company to grow because of the availability of products. Mc Donald’s strives to fulfill the demands of investors so that they can get returns for their investment. They have the power to not invest in the company if it is not making profit. However they are more inclined to take an additional risk in an attempt to make a larger profit in the company.

Suppliers are external stakeholders as they also work with Mc Donald’s. The company uses many suppliers for the raw materials and equipment. For example, they get food from one supplier and then the drinks from another. Suppliers are really an important part of Mc Donald’s because if they do not have suppliers there would be nothing for them to sell since production may not materialize. They have interest in the company for the regular orders the company makes because the more they do make orders, the more money they are going to be making. They should be treated fairly and should be given full and on time payment otherwise they have the power to refuse to supply if they are not being treated fairly and/or if they get less payment for their supplies or if not paid in/or on time. As a result the company may be unable to easily find a new supplier and therefore forced to accept a higher price for the supplies from the new supplier(s). Mc Donald’s also makes sure the supplier they use is trust worthy as suppliers play a huge part in all the chains of Mc Donald’s as they wouldn’t have any food to sell if a supplier fails to deliver when they need it.

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The Key Aspects of Building Mc Donald’s Brand Reputation.

More businesses are now recognizing the value of branding. However, many do not really understand the key elements that will enable them to create a strong and memorable signature brand. A company’s brand is much more than its tag line, business name, Unique selling proposition etc. A company’s brand is its reputation, its promise of value and the experience and the result a client can expect through working with it. The key aspects that will support Mc Donald’s in building a strong brand reputation include:-

A strong brand should be clear on its missions and continues to stand up for what it believes in, no matter what

Its conviction should be at the heart of the work it does and should continue to drive it forward. For instance, Mc Donald’s mission and purpose is to be customers’ favorite place and way to eat and to improve operations to provide the most delicious fast food that meets customers’ satisfaction and to provide good quality products and services to customers and to have clean environment. This enables them to make strong connections with their prospects, clients and the people with whom they continue to network. The company’s worldwide operations are aligned around a global strategy called the plan to win, which center on an exceptional customer experience which are people, products, place, price and promotion. It is committed to continuously improving their operations and enhancing customers’ experience.

A strong brand maintains a consistent on-brand message.

It takes a significant amount of time, energy and commitment to build a strong brand, However a company’s brand and reputation can be tarnished by an inappropriate post, picture or conversation it has with the members of the community. Mc Donald’s should ensure that it has key brand management and communication strategies to support and maintain a consistent on-brand message. It should also be mindful of what it posts, the reaction of the community, the picture it shares, the group it joins and the people it associates with. All of these things can negate all of the hard work it’s been doing if the message the company sends out is off-brand.

Focusing on the customer experience

When it comes to building a strong brand reputation, Mc Donald’s should set company-wide priorities for customer service and provide in-depth training to all team members. There is nothing important than paying close attention to customer experience, because if Mc Donald’s receive complaints about service from the customers, It has to take them seriously. Resolving issues as quickly as possible will help the company to maintain a strong brand reputation. Service missteps are an excellent opportunity to demonstrate brand integrity to customers by correcting the problem.

Mc Donald’s should always be willing to make improvements to foster long term success. Customers in today’s fast-paced market expect brands to work diligently to improve products and services. There’s simply no way to do that if you do not know where your customers want to see improvements, so by conducting regular customer feedback surveys it helps the company to find out where it is doing well and where it needs improvement. Evaluating survey results carefully and creating strategies to address customer needs will show that the company is willing to improve and it is one of the best ways to build a strong brand reputation.

Importance of building Brand Reputation.

The importance of brand reputation is that it is community driven. Its appeal is often on more emotional level and is acted out through user engagement. It is greatly enhanced by the interactions of community members with the brand itself and by community members interacting with other community members. Brand reputation has both internal and external components. The strongest brands are grown organically and starts with a focus on building internal relationship allowing collaboration to flourish and build passion to drive the company’s mission and purpose.

The more valuable the brand, the more the customer buys the product and also recommends the same. For the premium brands, customer are also ready to shell out more money. Customers look for quality offers and at affordable prices. Quality offers have a positive effect on the brand leading to customer loyalty.

The suppliers seek a firm with an excellent reputation in the market. Thus the. The brand reputation of the company also affects the supplier, they grow their business comfort which the supplier might not give to any unbranded company.

The Mc Donald’s employees are its assets. Thus they are the first stakeholder who should believe in their brand. The more employee satisfaction Mc Donald’s has, the more the owner will be attracted to its talent which can help in the success of the company.

The investors have an interest in the brand to provide its important major role in its operation of the company, thus the development engages the brand to be considered to provide good healthy foods.

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Managing Stakeholder Relationships Ass. (2019, Dec 14). Retrieved from

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