Organization The following essay illustrates how value is provided to customers within the organization. By utilizing stakeholders, organizational policies, and specific strategies, McDonald’s works towards constantly innovating its service and product.
The first and most important stakeholders for McDonald’s are its customers. The importance placed on consumers is demonstrated by the company’s mission statement “To be our customers’ favorite place and way to eat and drink” (McDonald’s, 2013). The organization allows the consumer’s experience to be the center of all its business practices. The key to their customer service policy is providing excellent food at a great value in a clean and friendly setting
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The company offers several benefits in order to promote employee performance. Restaurant crew members may be eligible for medical insurance, prescription drug coverage, dental coverage, term life insurance, paid holidays, vacation days, and educational assistance. In addition they may also receive free uniforms and free or discounted meals (McDonald’s, 2013). Corporate staff members receive health and insurance benefits along with base pay, incentive pay, and recognition programs. Additional benefits include profit sharing and saving plans, financial planning services, vacation, holidays, childcare discount, and McDonald’s Fitness Discount Program (McDonald’s, 2013). The third sets of stakeholders are franchisees and investors. The majority of McDonald’s franchisees purchase existing stores. The franchisee is required to pay 25% of the total cost in non-borrowed personal resources and the outstanding balance can be financed through a period of seven years or less. Additionally franchisees must pay a monthly service fee and a rental fee, which are both a percentage of sales (McDonald’s, 2013).
The franchise business model allows McDonald’s to acquire larger amounts of cash flows; in 2011, franchised restaurants generated 32.3% of total revenue. The franchise business model also helps keep costs low (Marketline, 2012). Franchise owners have also contributed to the creation of new