Mcdonald's Corporation

Module 1 Case Assignment

Principles of Management

McDonald’s Corporation is one of the best known global brands. Starting with 2004, McDonald’s witnesses a turn around and has become very profitable again, despite a high turnover of CEOs. McDonald’s leadership decided to continue to grow, using many new strategies, such as refurbishing locations, customizing service in each country and geographic areas, enhancing retail and development and product development, as well as marketing and packaging, extending service, and offering healthier food choices. I will examine McDonald’s turnaround using the four main functions of management that are fundamental to all companies- planning, organizing, leadership, and controlling.

The planning process is where goals are defined, strategies are developed, and efforts are coordinated to achieve the goal. MCD has undergone a major design overhaul, incorporated new ideas for existing ones, and even introduced new products and services in the U.S. and Europe. In Europe, Denis Hennequin, a Frenchman- the first non-American president of the fast-food chain’s European operations- took on the task of a massive makeover for more than one-third of the company’s 6,400 European outlets. He focused on upgrading customer service, redesigned the play areas with children’s fitness in mind, and added McCafe’s. Since his takeover, the European business is growing much faster than in the U.S. “Europe is now MCD’s largest region by revenue, despite having roughly one-quarter the number of outlets as the U.S.” The U.S. is no shrinking violet however, because for most of MCD’s history, growth meant more locations and it worked up until the late 90’s. With more planning, U.S. franchises saw major transformations as well with extended hours, new products, healthier food choices, and interior redesigns. By spending less on real-estate, the focus was put back into customer service and experience.

The organizing stage determines...