This research describes the service management strategy employed by McDonald's Corp. in the operation of their fast food restaurant chain. The company's service management strategy is described within the context of the service model. In this model, market segment, the philosophy culture image of the company, service systems, and human resources are considered.
The company licenses and operates a chain of approximately 11,000 fast food restaurants in the United States, Canada, and several other countries. McDonald's is the industry leader in the fast food segment of the restaurant industry, as well as in the hamburger sub segment of that industry segment. Kentucky Fried Chicken is quite close to McDonald's in terms of market share within the fast food segment, while Burger King is second in the sub segment.
Although McDonald's serves foods other than hamburgers, the thrust of the company's operations is in the hamburger sub segment of the fast food segment of the restaurant industry. Many of the company's products other than hamburgers are also served in a burger format, a factor which further identifies McDonald's with the industry's hamburger sub segment.
McDonald's values are concerned with (1) public service, (2) community involvement, (3) providing a high value/price ratio in its products, and (4) fostering human resource development within its organization. The company is highly successful in adhering to and promoting its values.
The company's goals are concerned with (1) market share, (2) market penetration, (3) developing and retaining an effi cient and committed staff, and (4) expanding its international presence. McDonald's is highly successful in goal attainment.
SERVICE SYSTEMS The company's service strategy relies heavily on franchise operation. Approximately 68 percent of the McDonald's restaurants are operated by franchise holders, with the remaining restaurants operated as ...