Paper Example on McDonald's Planning Budget

Introduction

McDonald's Corporation is one of the largest and leading food selling services in the world. It has branches in several parts of the world, and this makes it reachable to most of the people in the world. The corporation runs and enjoys the privilege granted to them to operate the McDonald's restaurants. These restaurants serve and sell various foods as per the needs of the local people. Their meals are of high quality, and this is what leads to the embracement by people all over the world. They specialize in the sale of various foods and drinks. (Yan, 2013). They also make arrangements on delivering their menus to their clients who make orders, and they offer different prices for their services. (Cheetham, & Tim 2015)

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McDonald's restaurants also work on a budget. They operate to make profits just like any other business firms. Their budget is what enables them to plan on what to do and adjustments to make to maximize the profit to be able to meet various needs of the restaurants such as paying their workers and maintaining their equipment. Reports indicate that McDonald's makes sales better than their projections. (Crawford, 2015). This improvement has been attributed to its promotions value as well as new products in their menu which continues attracting more customers and these results to better earnings.

However, despite the realization of improvement, the firm's stock decreases by around 3%. Additionally, the firm used around $1.9 billion to franchise over 4000 restaurants all over the world and to upgrade over 650 locations across the globe. Some of the amount used to enhance the restaurants was to purchase sleek furniture, self-service centers, and table services provision. (Crawford, 2015). As a result, the firm has over 3000 restaurants worldwide which are well renovated giving it a new face.

The firm has prepared to spend $2.4 billion for the renovation of the already in place locations. From this amount, the company plans to open up over 1000 new outlets and bring its overall total to 4000 newly renovated restaurants in the world. After achievement of its goals, McDonald's has expressed its confidence that by 2019 it will have reached its financial targets in the long run. It also speculates that it will be able to record a return of $ 24 billion to the shareholders of the firm for the last three year. (Crawford, 2015). The net income of the McDonalds depreciated by 41% in December 31st

Implementation and Control

Implementation is the process of practicing several ideas to get benefits or to achieve a favorable result from the thoughts. Controlling, on the other hand, is a process of regulating and establishing standards and guidelines to realize the desired goals of a firm or organization. (Hair Wolfinbarger, Money, Samouel, & Page, 2015). There are specific methods for control; they include feed-forward control, feedback control, and concurrent control. The managers of McDonald's restaurants can choose from those methods the one that is favorable to run the firms and to raise the turnover of the restaurants.

McDonald's is an international organization that operates hundreds of independent restaurants. To manage the company efficiently, the firm must consider the application of several control strategies. For restaurants handling fast food, the clients' primary focus is the quality and the safety of the food they are getting from the firms. The safety and quality of the food, in this case, is imminent and is considered as the most critical aspect by the management. (Ceil, 2017). Therefore the leadership of the firm must implement ways of ensuring that the safety and the quality remain at the top. (Qureshi, & Hassan, 2013).The McDonald's procurement and logistics department puts in place a rigorous quality check for any commodities they purchase from anywhere. The examination is to ensure the quality of the foods. The people who supply goods and materials for the restaurants are also accredited and have a mandate of providing fresh vegetables and fruits to the firm. Every commodity that is provided to the firm must be of high quality and one that has high levels of freshness. McDonald's firm management is responsible for the quality control of the goods supplied to them. The management issues specifications to the suppliers about specific foods such as fries, pieces of bread and other types. Equipment for bread transportation and production must have lids and barrels of flour and have a color which is not white. Shipping of the food from one place to another must be done using stainless steel containers to prevent any debris from getting into the food. It is therefore clear that the quality and the safety of the McDonald's meals are provided and this earns the firm the respect of being named as the champions and pioneers of clean, safe and quality foods.( Madar, & Neacsu, 2014).

Monitoring of Action Plan

For any successful business, marketing is one of the most powerful tools for this job. Just like any other businesses, McDonald's restaurants are not to be left out of this. The firm should consider vigorous marketing practices and researches to ensure that they reach as many people as possible. (Paul, & Roy, 2014). There are several marketing channels that the firm can use. These channels may include the use of media, journals, online platforms as well as other written materials. Research is critical in marketing as it helps in the identification of the market as well as other needs that the clients might be having. Marketing research can be done using several means such as interviewing clients and the use of questionnaires. They help the firm to obtain necessary information about their services, complains and other issues that will be key in helping the firm to come up with strategies to address them.

What will be done?

Marketing and researches should be carried out professionally as this will form the basis of addressing as well as coming up with the action plan for addressing the complains as well as the weaknesses of the firm. The marketing team should go to the ground to meet the people and listen to them, interview them and analyze the information they obtain from the people. (Sauder, McEvoy, Sampson, Kanigsberg, Vaillancourt, Ramien, & Zemek, 2016).When will it be done?

Research and marketing should be done continuously and from time to time to ensure that you get the necessary information. Since this is a business that affects the lives of the people on a daily basis, marketing should also be done regularly to reach more and more people to assist in the promotion of the business. (Zhu, Anagondahalli, & Zhang, 2017).Who is responsible for doing it?

The professional team of the marketers should be involved actively in the research as well as the marketing to ensure the best results. Marketing is not an easy task as it may cost the company a lot of money about $100 million. (Crawford, 2015).Implementation of Recommendations

The following are my recommendations to the management of the McDonalds company; on the delivery of the foods to the customers, they must ensure to control the time and be able to deliver within the shortest time possible. Secondly, the firm should consider and implement setting out more outlets worldwide even in the small town of small countries. Finally, the firm should find active and vigorous marketing activities to help the firm reach as many clients as possible to make more profit and enable the firm to remain relevant.

References

Ceil, C. (2017). Service Quality and Branding Strategies at McDonalds.Cheetham, Tim. "Rigid statutory demands, budget cuts, and lack of political choice are strangling local government innovation." Democratic Audit Blog (2015).

Crawford, A. (2015). McDonald's: A Case Study in Glocalization. Journal of Global Business Issues, 9(1), 11.

Hair Jr, J. F., Wolfinbarger, M., Money, A. H., Samouel, P., & Page, M. J. (2015). Essentials of business research methods. Routledge.

Madar, A., & Neacsu, A. (2014). QUALITY STRATEGIES IN THE FIELD OF FOOD & BEVERAGE CASE STUDY: HACCP IMPLEMENTATION AT MCDONALD'S COMPANY. Management & Marketing, 9(2).

Paul, R., & Roy, S. K. (2014). Case study 11: Marketing of services: The McDonald's way. In Marketing cases from emerging markets (pp. 99-112). Springer, Berlin, Heidelberg.

Qureshi, A., & Hassan, M. (2013). Impact of performance management on the organisational performance: An analytical investigation of the business model of McDonalds. International Journal of Academic Research in Economics and Management Sciences, 2(5), 54.

Sauder, M. B., McEvoy, A., Sampson, M., Kanigsberg, N., Vaillancourt, R., Ramien, M. L., & Zemek, R. (2016). The effectiveness of written action plans in atopic dermatitis. Pediatric dermatology, 33(2), e151-e153.

Yan, Y. (2013). Of hamburger and social space: consuming McDonald's in Beijing. Food and Culture: A Reader. Nova Iorque, Routledge, 449-472.

Zhu, L., Anagondahalli, D., & Zhang, A. (2017). Social media and culture in crisis communication: McDonald's and KFC crises management in China. Public Relations Review, 43(3), 487-492.