Overview McDonald Corporation

Name
Logo

McDonalds Corporation

Industries
served
Geographic
areas served
Headquarters
Current CEO
Revenue

Restaurants (McDonalds, McCaf, McExpress, McStop)

Profit
Employees
Main
Competitors

Worldwide (36,258 restaurants in 119 countries)

Oak Brook, Illinois, United States
Steve Easterbrook
$27.441 billion (2014) 2.4% decrease over $28,106 billion
(2013)
$4.758 billion (2014) 14.8% decrease over $5,586 billion
(2013)
420,000 (2015)
Burger King Worldwide, Inc., Darden Restaurants, Inc., Doctor's
Associates, Inc., Dominos, Inc., Yum! Brands, Inc., Starbucks Corporation,
Wendys Company and many other companies in the fast food industry.

1. Vision Mission and Strategy Alignment

Vision:
McDonald's vision is to be a fast-food restaurant with the best service in the
world. To achieve this vision, McDonald's always guarantee the quality of its
products, providing outstanding service, offering hygiene and safety of food
products as well as value-added. Consumer smile is important to McDonald's.
Mission:

To be the best for all our employees in every community around the world
Presenting services with superior operational system for every customer in
every branch of McDonald's restaurants
Keep evolved in a favorable direction as a brand, as well as continue to
develop operational systems of McDonald's to better direction again through
innovation and technology

Strategy Alignment
1)
2)
3)
4)
5)
6)

Quality food in minimum price with fast service,

Maximizing sales and profits in existing restaurants,
Adding new restaurants and franchise model,
Provide a positive employment experience,
Product consistency, and
Improving international profitability.

SWOT Analysis
Strength
It has a strong
global presence
and brand name
It uses economies
of scale for
reducing the cost
as it operates on
a huge scale
It has a standard
set of Sops that
are followed
throughout their
outlets worldwide
Collaboration with
Coca-Cola
Professional
Training for
Employee
Competitive Price

Weaknesses
Weak product
development
Quality issue
because of
franchise
management
High employee
turnover at the
stores
Core product line
is out of healthy
trend food

Opportunity
It can offer
innovative
product line
Accelerate CRM
for customer
retention
Deeper
international
expansion
It can research
ways to include
healthy products
in their menus
across the world

Threat
More health
consciousness
customer
Threat from local
competitor in
different countries
Global economic
recession
Playing in mature
and saturated
industry

2. Strategy Map
Learning
and Growth
(LG)
Improve
employee
productivity
(LG1)
Enhance the
capabilities of
employees
(LG2)
Improving
organizational
culture (LG3)

Internal
Business
Process (IP)
Improve
product
quality (IP1)

Customer
(C)

Financial (F)

Increase
market share
(C1)

Improving
corporate
profits (F1)

Improve the
quality of
service (IP2)

Improve
Customer
loyalty (C2)

Increase
Revenue (F2)

Increase
Innovation
products and
menus (IP3)
The
application of
the latest
technology
(IP4)

Improve
customer
satisfaction
(C3)

Increase
shareholder
value (F3)

3. Action Alignment
Learning
and Growth
(LG)
Employee
Training
Employee
retention

Internal
Business
Process (IP)
Cycle time
optimization
Improve
service time

Improve
company
culture

Adding a new
menu and
healthy
product
Increase the
percentage of
customer
complaints
were
successfully
treated

Reducing the
rate of
workplace
accidents

Customer
(C)

Financial (F)

Increase the
total customer
Customer
loyalty
program
Implement
CRM system

Increase sales
volume
Increase
advertising
spending
Improve Asset
utilization

Create new
modern order
system

Improve cost
structure

Upgrading old
restaurant
4. KPI Selected from PIs

Priorit
y Rank

Customer Satisfaction Index (CSI)

The Level of employee satisfaction (ESI)

Training of Employees (TE)

Customer Retention (CRT)

Sales Growth (SG)

Growth Profit Margin (GPM)

Successful customer complaints are
handled (KCD)

KPI

Service Time (WP)

Total Customer (TC)

10

Share Price Growth (SPG)

5. Framework
Balance Scorecard
The balanced scorecard is a strategic planning and management system that is used
extensively in business and industry, government, and nonprofit organizations
worldwide to align business activities to the vision and strategy of the organization,
improve internal and external communications, and monitor organization
performance against strategic goals. Kaplan and Norton describe the innovation of
the balanced scorecard as follows:

Strategy Mapping
Strategy maps are communication tools used to tell a story of how value is created for
the organization. They show a logical, step-by-step connection between strategic
objectives (shown as ovals on the map) in the form of a cause-and-effect chain. Generally
speaking, improving performance in the objectives found in the Learning & Growth
perspective (the bottom row) enables the organization to improve its Internal Process
perspective Objectives (the next row up), which in turn enables the organization to create
desirable results in the Customer and Financial perspectives (the top two rows).

Perspective
Financial

Customer

Strategic
Objective
Improving
corporate
profits (F1)
Increase
Revenue (F2)
Increase
shareholder
value (F3)
Increase
market share
(C1)

Improve
Customer
loyalty (C2)

Internal
Business
Process (IP)

Improve
customer
satisfaction
(C3)
Improve
product quality
(IP1)
Improve the

quality of
service (IP2)

Lagging
Indicator
Growth Profit
Margin (GPM)
Sales Growth
(SG)
Share Price
Growth (SPG)

Total
Customer
(TC)
An increasing
number of
new
restaurant
(NR)
Customer
Retention
(CRT)
Customer
Satisfaction
Index (CSI)
Number
Defective
Products (DP)
Service Time
(WP)
Delivery Order
(DO)

Leading
Indicator
The value of
sales
COGS
Total Revenue
Share Price

Number of
new
restaurants
The number of
Customer

Target
100%
35%
5%
10%

5%
100%

The number of
repetitive
buyers from
regulars
customers
Customer
satisfaction
survey

85%

The number of
defective
products
Average
time to
serve
customer
orders (eatin, take-out,
delivery

0 (Nothing)

85%
(Satisfied)

3 minutes
250 Package
per day

order)
Customer
satisfaction
survey
Total
demand for
package
delivery
order
The number of
new menu

Learning and
Growth (LG)

Increase
Innovation
products and
menus (IP3)
The
application of
the latest
technology
(IP4)
Improve
employee
productivity
(LG1)
Enhance the
capabilities of
employees
(LG2)

Menu
Innovation
(MI)
Successful
customer
complaints
are handled
(KCD)
Employee
Productivity
(EP)
Training of
Employees
(TE)

Improving
The Level of
organizational
employee
culture (LG3)
satisfaction
(ESI)
Employee
Retention
(ER)

3 New Menus

The number of
successful
complaints
directly
addressed
Total output of
products

100%

Number of
training new
employees
and knowledge
sharing
The number of
employees
who stay
Employee
satisfaction
survey

100%

100%

100%
80%
(Satisfied)

6. Linkage Scheme

7. Benchmarking
Below are example of Balanced Scorecard in a Restaurant Company.

Perspective
Financial

Customer
Internal
Process

Learning &
Growth

Strategic Objective
Reduce cost and waste

Increase revenue
Increase market share
Increase customer
satisfaction
Improve production cycle
time
Improve service quality
Improve employee
productivity

Dashboard design for the PMS:

8. Dashboard Design

Lagging Indicators
(KPI)
Labor expense
Other expense
Food expense
Reduce food loss
Sales
Number of customer
Responsibility
Average check
HR development
Team work
Job performance
Follow preparation
Follow schedule
Challenge
Selft improvement

9. Before-after analysis
Before and after analysis is a comparison of conditions before dashboard
implementation with conditions after dashboard implementation. To
accomplish this, performance data is collected before BSC dashboard
implementation, and the same data is collected after the dashboard
implemented.
KPI

Before

After

% Changes

Customer Satisfaction Index

(CSI)
The Level of employee
satisfaction (ESI)
Training of Employees (TE)
Customer Retention (CRT)
Sales Growth (SG)
Growth Profit Margin (GPM)
Successful customer
complaints are handled (KCD)
Service Time (WP)
Total Customer (TC)
Share Price Growth (SPG)

82

95

116%

69

78

113%

700
85
8
10

950
91
15
12

136%
107%
188%
120%

67

78

116%

6
1000
6

4
1200
12

150%
120%
200%

10.Performance Index
McDonald Indonesia Executive:
President Director: Sukowati Sosrodjojo
Managing Director: Kitson Choong
Legal Director: Caroline Djajadiningrat
Store Development Group Director: Ratna Wirahadikusumah
Senior Director: Bintang P. Aritonang
Operation Director: Jeffrey Tan
Marketing, Communication, & CBI Director: Michael Hartono
Finance And IT Director: Yanti Lawidjaja
Human Resources Director: Yulianti Hadena

85

Categor
y
Significa
nce
17

Performa
nce
Against
Plains
85.00

100

78

15

78.00

11.70

MAI

500

470

12

94.00

11.28

EAI

100

92

11

92.00

10.12

PSM

200

120

60.00

4.80

PSM

30

2.5

8.33

0.58

OPE

110

76

69.09

3.45

Growth Profit Margin

(GPM)
Successful customer
complaints are handled
(KCD)
Service Time (WP)

OPE

3.5

3.2

91.43

4.57

Total Customer (TC)

SND

680

10

68.00

6.80

10

Share Price Growth

(SPG)

SAG

100
0
35

17

10

48.57

4.86

BPIn

72.62

N
O
1
2
3
4
5
6
7

Measurements
Customer Satisfaction
Index (CSI)
The Level of employee
satisfaction (ESI)
Training of Employees
(TE)
Customer Retention
(CRT)
Sales Growth (SG)

Category
Abbrevia
tion

Pla
n

Actu
al

LNP

100

LNP

Company Performance Index: 72.62%

Number of Company Executive: 9
DPMO: 35553.03
SIGMA Level: 3.31
11.Implementation Schedule

12.Improvement Plan
Cost estimating of the project

Index
Contribu
tion (%)
14.45

Quality control
Globalization aspect
New product launch analyses
Product waste and Recycling management
Human resource management of the project
Business opening schedule
Calculate the target group as a customer
Proper training center
E-communication system

For the business based on Performance Index:

How maintain management
How maintain production cost
Supply chain strategy
Business start strategy
Location strategy
13.Suggested