Service Management Strategy This research describes the service

The company licenses and operates a chain of approximately 11,000 fastfood restaurants in the United States, Canada, and several other countries. McDonald's is the industry leader in the fastfood segment of the restaurant industry, as well as in the hamburger subsegment of that industry segment. Kentucky Fried Chicken is quite close to McDonald's in terms of market share within the fastfood segment, while Burger King is second in the subsegment.

Although McDonald's serves foods other than hamburgers, the thrust of the company's operations is in the hamburger subsegment of the fastfood 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 subsegment.

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 succe

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to one's postpurchase feelings about that which was bought. In this context, consumer satisfaction is considered to be a function of (1) the purchaser's expectations concerning the product, and (2) the product's perceived performance. Consumers form expectations on the basis of messages and claims made about the product. The level of consumer dissatisfaction, thus, is the product of the difference between expectations and performance. Among the issues of concern to McDonald's are two major problem areas, each of which has the potential to affect consumer satisfaction, and each of which concerns the approach of the company's top management to the job. The first of these two problem areas is the tenet of centralized control practiced at the company, while the second is the we know best attitude of top management. McDonald's maintains a tight centralized control over menu, product quality, service standards, productivity and profitability standards, and employee performance standards. Actual management of the organization, however, is accomplished through a relatively decentralized, though formal, organizational structure. The company's centralized control policy does cause some problems with franchise holders; however, it
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Approximate Word count = 2307
Approximate Pages = 9 (250 words per page)

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