McDonald’s

BUSINESS LEVEL STRATEGY

Group 6
 COST PRODUCT
LEADERSHI DIFFERENTIATI INNOVATION CSR EVALUATION
P ON & CONTROL
• McDonald’s owns facilities that
produce standardized mixtures
of ingredients.
• Cost minimization is a financial
strategic objective based on the
cost leadership generic strategy.
• Increasing employees sense of
responsibility through
delegation of tasks
• Delayering of managers
• Approximately 51% of
restaurant managers started out
as crew
• Less salaried staff leading to
lowering operation costs.
• Alliance with major oil
companies
• McDonald’s owns rental
properties
• Over 80% of the restaurant
worldwide are owned and
operated by local franchisees
while integrating mutual interest
of maximizing profits.
1. Indoor Setting (1950)
2. Drive Thru Window (1970)
3. Adding the Menus Breakfast (1980)\
4. Adding Play Area (1990)
5. Redesign the kitchen
6. Self-service outlets (2004)
7. 3 Separate Dining Sections (now)
 Linger zone with comfortable chair
and wifi connection
 Grab and go zone with high counter
 Flexible zone for children and families
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I n n o v a t i o n b y M c D o n a l d ’s
In Indonesia, the innovation of the food there:
 • Continuous Innovation, Continue to
develop existing products and improve them.

• Disruptive Innovation, McDonalds

developed a lighter, easier-to-packed, and
McDonalds has already edible American breakfast menu in a short
time.
produced a number of
innovations to boost • Discontinuous Innovation, Termination
and replacement of cheap saturated fatty fry
sales in Tiongkok : oil and plural is used as an industry standard
because it is easily heated into non-trans
frying cook oil for frying french fries.

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 Here is also one of the innovations of McDonald's, that is :
McDonald's has dubbed this innovation the Suction Tube for Reverse Axial Withdrawal (a.k.a. STRAW). That's right, the
world's largest fast food company is now investing in straw technology.
 Raw material Procurement Relationship
with suppliers in obtaining product
materials as well as procurement process
are critical factors to secure food safety
and the DNA of assuring product safety.
As a food service company, quality control
is the top priority in fulfilling our social
responsibility to ensure product safety and
enable our guests to enjoy meals with
peace of mind at all times.

The idea of “We have an obligation to McDonald’s business is a people business.

give back to the community that gives so Based on our philosophy of “Individual
much to us” is the basis of making growth promotes corporate growth”, we are
contributions to our society. supporting the development of our people.

Based on the idea that environmental

consideration is part of corporate social
responsibility, we take environmental
actions with a viewpoint of continuous
optimization.

C O R P O R AT E S O C I A L
RESPONSIBILITIES
Enhancement of QSC&V means we must fulfill various corporate social responsibilities (CSR) as well. We divide
CSR into five categories and listen to the voices of stakeholders and society in each of them, endeavoring to take
the best and honest action.
SOCIAL CONTRIBUTION
PLANET, WASTE
COUNTERMEASURES &
ENVIROMENTAL CONSERVATION
PLANET, ENVIRONMENTAL
DATA
 Evaluation and
 Total Quality management at McDonald's is aimed at

Control
continuous improvement. McDonald's has introduced the
concept of quality in all organizational processes
including customers, suppliers and their employees.
 The main focus of this strategy is to improve customer
satisfaction. This involves terming quality as the key
feature in all the products and services offered at
McDonalds.
 To develop a SERVQUAL scorecard will require a
corporate strategy and analytics team in place to collect
data
 Quality will be evaluated by measuring customer
satisfaction. The assessment parameters will include fast
delivery, accuracy, and friendly service.
 IT systems should be to capture the time for service to a
customer order across peak & non-peak hours. Any big
deviations from the mean service time can be studied to
check if it is an employee effect or process effect or
system effect.
 Have surprise quality checks carried out by quality
inspectors with suitable warnings that can also result in
change in the restaurant management in the quality
compliance fails inspection.
T H A N K YO U !
Do You Have Any Questions?