McDonald's Corporation is one of the best known global brands. Starting with 2004, McDonald's witnessed a turnaround from a business slow-down, and became very profitable again, despite a high turnover of CEOs. The company continues to be profitable despite the slow economy as compared to other fast food restaurants.
Serveral years ago, McDonald's leadership decided to continue to grow, using many new strategies, such as refurbishing locations, customizing service in each country and geographic area, enhancing R&D and product development, as well as marketing and packaging, extending service, offering healthy choices, and so on.
Many of these trends have continued to the current day
What functions of management has McDonald's leadership used, and continue to use in order to remain the most profitable fast food restaurant in the world?
Please provide details explaining the functions of management.
There are two management functions that McDonald's continue to use to make the food franchise profitable. These are the planning and staffing functions.
On Planning Function: McDonald's plan their Leadership succession
Norman (2013) explains that the planning function involves "bringing together physical, human and financial resources to achieve objectives, coordinate the relationships of responsibility and authority". According to Harold Koontz, "planning is deciding in advance - what to do, when to do & how to do it".
What made MacDonald's succeed is that it is fast in deciding leadership succession. There is no succession crisis in the company. CEOs are appointed within the organization. It has weathered the problems of continuity by planning and deciding early.
In fact "a strong bench certainly has paid off for McDonald's, which, in the span of two years, appointed three CEOs from its ranks--a feat made even more amazing by the tragic circumstances: Two of those CEOs died within nine months of each other " (Sellers, 2011) .
The key to planning is preparedness. MacDonald's has been "ready for that moment you don't want to happen" and "every July the board devotes a big ...
The solution shows two management functions at McDonald's that make the food franchise profitable.