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Over the past few decades, the fast-food industry has experienced rapid growth and has successfully expanded its reach across international markets. One of the key players in this industry is MC Donald, which was established in 1954 and has now emerged as the leading global food service retailer, with a revenue of 28.11 billion U.S dollars in 2013 (MC Donald’s revenue 2013). On the other hand, Taco Bell, an American chain of fast-food restaurants founded in 1962, faced challenges in the early 2000s due to poor managerial decisions, resulting in a decline in sales (Taco Bell corporation).
This essay aims to explore the different managerial skills, namely planning, organizing, leading, and controlling, adopted by these two organizations.
Planning is considered essential in ensuring the success of an organization (Wren, Bredeian, and Breeze 2002, 906-918). An example of effective planning by MC Donald is the transformation of their Big Mac into the Maharaja Mac, showcasing their commitment to building strong customer relations.
In contrast, Taco Bell faced issues with product quality, as they used genetically modified corn, leading to a decrease in sales (Dorey 2000, 1136-7).
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Organizing involves building a strong workforce to enhance business performance in a competitive environment. MC Donald focuses on professional training for their employees, offering programs in up to 40 languages to help them adapt to different cultures. In contrast, Taco Bell struggled with labor management issues in 1988, resulting in lost sales (Hueter and Swart 1998, 75-91).
Leading involves using influence to motivate employees towards achieving organizational goals (Richard Daft, quoted in Rysward Barnat, 2014).
Donald Thompson, the CEO of MC Donald, has successfully led the company through competitive challenges, maintaining their market share. In contrast, Taco Bell faced legal issues for not paying employees for overtime work (New York Times 1997).
Controlling is an ongoing process that evaluates whether the organization is on track to achieve its goals. MC Donald ensures that its employees adhere to standards, with each franchise expected to comply with strict supplier policies. In contrast, Taco Bell faced pressure to increase wages for farm workers supplying them with tomatoes, following a campaign against them. Under the leadership and planning of Donald Thompson, MC Donald has built a strong reputation, resulting in loyal customers. Conversely, Taco Bell's poor managerial skills have contributed to weak sales of their products.
The successful combination of the four management functions of Fayol has been instrumental in MC Donald's success. By focusing on planning, organizing, leading, and controlling, MC Donald has been able to navigate challenges and maintain its position as a leader in the fast-food industry. In contrast, Taco Bell's struggles with these managerial functions have impacted its sales and overall performance.
Comparing MC Donald and Taco Bell: A Fast-Food Industry Analysis. (2016, May 01). Retrieved from https://studymoose.com/mcdonalds-vs-taco-bell-fast-food-restaurants-essay
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