Sample Solution

McDonald’s management strategies, McDonald’s is applying cost leadership strategies. Cost leadership strategies normally apply to company that targeting low cost production in order to bring the price to minimum and increase their market share. McDonald’s states in their vision that, they strive to deliver affordable foods with good quality, and this is the reason why they adopt the cost leadership strategies. According to McDonald’s official website, its company is a major customer of British and Irish farming. Therefore, they have a world class efficient supply chain which enables them to achieve low cost production and offers cheap price to their customers. Take the beef burger as example, the reason why McDonald’s beef burger is cheap is because they are producing in a huge amount as all of the franchises are require purchase their supplies from McDonald’s. To achieve low cost production, McDonald’s forced to cut or transfer their funds from other aspects such as employment, machineries maintenance, restaurant decoration or other aspects. This lead to an issue which is to reduce average production cost to minimum, McDonald’s employed insufficient employees in their restaurant. It makes their workers unable to perform perfectly in their tasks while they have too much works to do. This situation causes worsen of customer service. A real-life example was taken from Independent, a British online newspaper, showed that an employee of McDonald’s posted few disgusting photos of McDonald’s ice-cream machine with a lot of impurities and their unclean kitchen on his Instagram. The employee also stated that he sometimes even saw his colleagues simply pick up a dropped food and put it back to the bun to serve. To relate back to the topic, this post would definitely bring a negative impact to McDonald’s as the poor restaurant condition is distracting customers to have their meals there. This situation may result from their cost saving action as they have insufficient workers to maintain the cleanliness of the restaurant or they rather use the money for food production instead of spending on these areas.