Organizational Change Essay
Founded in 1940, McDonalds has been dominating the fast food chain industry and served as the model of excellence in providing good and quality services to its customers. Bounded by professionalism and commitment to continue providing high customer satisfaction, McDonalds has not been afraid of implementing new strategies and embracing new approaches in business management. At present times, McDonalds serves as the world’s largest fast food restaurants and serves around 47 million customers daily. McDonalds sells different kinds of burgers and chicken products as well as French fries, soft drinks and milkshakes.
In the recent years, McDonalds included in its facilities a playground for children in order to attract more people, specifically families to come and visit their stores. Given these remarkable improvements on the facilities of McDonalds there is no question for its impressive growth since its establishment. With the growing competition in the industry of fast food, McDonalds must find its way towards implementing strategies to both maximize their profit and increase the satisfaction of their customers.
There is the threat coming from Big Mac, KFC plus domestic fast food restaurants in every country that McDonalds must surpass or at least compete at par to maintain its growth rate and market share in the fast food industry. One way to preserve the market share and growth rate of McDonalds would be to maintain the level of satisfaction that its customers derived every time they avail the services of the store. Keeping this in mind, McDonalds incorporated delivery services to their traditional list of services – fast delivery.
In the traffic-choked cities of Philippines and China, fast delivery of foods from the stores directly to the doors of the customers is just one of the ways to attract customers and provide high customer satisfaction (Arndt, 2007). Since most of the people in the metro and big cities are too busy to drop buy to fast food stores and fall in a long line of customers, they avail the delivery services of fast food restaurants. It would be advantageous for McDonalds to offer fast delivery services to their customers and at the same time make them serve more customers in a given day.
It was in 1995 in Egypt when McDonalds launched its first delivery service which was successful in boosting the sales and profit of McDonalds in Egypt. It was identified that McDonald’s delivery service in Egypt is accounted to around 27% of its revenue. Globally, McDonald’s delivery sales are expected to grow to $110 million which would provide more sales and profit to the leading fast food restaurant around the globe. At present, McDonald’s delivers in more than 25 cities and have just recently launched its delivery service in Taipei, hiring 1,000 drivers.
They also are starting to test the same concept in Beirut and Riyadh to widen their pace against their competitors. IN India, McDonalds already started delivering foods to the houses of their customers (May, 2004). McDonalds charges 70 cents for their delivery service which is also an additional profit to the company. It was identified that McDonald’s delivery service provided an additional yield of 13% to 14% to the total profit of the company. Furthermore, the delivery service of McDonalds offers cost cutting opportunities since they no longer have to clean their tables more often compared to when customers opt to visit their stores.
On the other hand, this new organizational change in McDonalds offers additional operational costs to the company since it have to hire more workers and purchase scooters that will be used by the delivery crew. Nevertheless, McDonalds surely make profit out of the new organizational form of the company despite of the additional costs it offers. The revenue outweighs the costs and this is the reason why McDonalds will still pursue the same strategy to its other stores around the globe. Also, McDonalds has been able to serve more customers and maintain, if not improved, the level of customer satisfaction that they offer in the market.
Skills Needed By Workers In order for the strategy of providing delivery services to the customers become successful for McDonalds, first, it has to hire workers that have driving skills. These drivers will be the one to deliver the orders of the customers and must have the familiarity of the area where the store is located and its neighboring cities. Knowing the shortcuts and the shortest way to get into the destination would be the key towards having the fast delivery service in the market. With this, the management of McDonalds must secure that their drivers are well informed about the different routes advisable to deliver faster.
Also, McDonalds must secure a phone operator that will be in-charged in answering the calls of their customers and be the one to forward the orders to the counter. Telephone operators must be friendly and always willing to serve all the needs and request of their customers. This would ensure that McDonalds maintain good customer relationship and at least maintain the level of customer satisfaction that they offer. In most cases, friendly or approachable staffs of any particular company experiences positive responses from their customers or clients, thus, achieving their goals and objectives easily.
Skills Needed By the Management To insure the effectiveness of the delivery service of McDonalds, its management must also have the knowledge and skills in managing/handling the driver and telephone operators. Handling such groups of people is way much different from the usual employees of McDonalds. McDonald’s management must know the basic needs of these new sets of employees and set their roles in the entire company. Managers will not just hire drivers and telephone operators without having the knowledge and skills in handling these kinds of people.
Managers of McDonald’s stores that will have delivery services must undergo series of trainings and seminars in order to prepare them in handling a new set of employees into the company. Having trained on how to effectively motivate drivers and telephone operators in the company without diverting to the core corporate culture and values is just one of the many things that McDonald’s managers must posses in order to make the said strategy work as planned. Support Systems Needed VOIP, which stands for Voice Over the Internet Protocol, would be a good telecommunication support system for the said organizational change in McDonalds.
This will be useful in handling multiple customer calls and enables the telephone operators of McDonalds to entertain more calls in a given day. This support system will make the work of telephone operators of McDonalds easier and faster. All they have to do is to answer calls and pass the order details to the counter. There are still other telecommunication support systems available to make the handling of calls easier and faster for McDonalds and VOIP is just one of software available in the market.
On the other hand, Gant Chart would do the monitoring of the progress of the organizational change in McDonalds. Gant chart may same to be a cliche to many managers in the market, but it is very useful especially in tracking the development of a particular project or strategy based on a given timeline. With this, McDonalds will be able to determine if the are still on the track of implementing successfully the delivery strategy to other stores around the globe. Conclusion
It is now therefore clear that McDonalds is presently on its way towards intensifying its connection to its customers and remain the world’s top fast food chain through providing the fastest delivery services in the market. At the end of the day, there is no question that McDonalds still cling into their passion to provide the highest satisfaction to their customers and at the same time outwit their competitors through improving their organization and gain competitive advantage.
University/College: University of California
Type of paper: Thesis/Dissertation Chapter
Date: 12 January 2017
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