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Organizational History of McDonald’s

Discuss About The Customer Relationship Management In Hotels.

The report throws a light on the analysing the organizational history of McDonald’s along with the main purpose of the company. The importance of the individuals in helping the organization to meet the purpose has to be discussed successfully as well. The role of the CEO of the organization has to be discussed using four main functions of the management. The different steps have to be discussed that will help in managing the Australian operations of McDonald’s.

The different ways have to be discussed to understand the different human, conceptual and technical skills in influencing and maintaining the environment that encourages customer service, sustainability and innovation at McDonald’s. The management roles of CEO in different sections has to be adopted and identified appropriately.

The different kind of learnings from CEO and approach of McDonald’s is required to be identified effectually. The differences between being a CEO of McDonald’s and being a CEO at other non-profit organizations has to be discussed.

McDonald’s is one of the largest American fast food company that was founded in the year 1940 (, 2018). The McDonald’s corporation has more than 36000 restaurants in more than 119 countries. Each and every day, there are more than 69 million customers globally that is coming through doors that has helped the company in growing fast with the set of basic rules.

McDonald’s opened the first restaurant in Australia in the year 1971 and currently there are more than 90000 employees working at 900 restaurants of McDonald’s. The cafes are serving 1.7 billion customers each and every day and the sales is about $4 billion in the market. More than 80% of the franchise business of McDonald’s is ran by the business man and women and the restaurant of McDonald’s has 400 employees.

Australia is regarded as the leader within the corporation of McDonald’s such as McCafé’s has been introduced in Swanton Street of Melbourne in the year 1993. They have the main leader in introducing the nutritional labelling and they are trying to start different new operations in the business in the world as well.

The main purpose of McDonald’s is to provide financial assistance through the usage of severance of payments and different benefits to the different employees. The overall vision and purpose of the company is to become progressive and modern burger company delivering the contemporary customer service and experience. The vision of the company includes different kind of business aspects wherein this implies innovation in the delivery of products and services to satisfy the market needs (Armstrong et al. 2015).

Purpose and Values of McDonald’s

The values of the company are responsible kind of leadership in which the company is committed to use the scale for good of the individuals and for the entire industry (Bhaduri and Fogarty 2016). The main value provided by McDonald’s is to being nutritionally mindful that helps in reducing the waste impact to advancement of industry to create sustainable and humane sourcing. The company places their customers experience at core in which the main focus is to treat the customers like celebrity as the customers are the main reason for the existence (Marum and Moran 2016).

The business of McDonald’s is operated ethically wherein the main focus is to give everyone fair go as sound ethics is essential for business and the company holds high possible standards of ethics and fairness along with honesty. Lastly, the company gives back to the community wherein they take different CSR activities in serving the community and help the customers in building better place for the entire society (Trainor et al. 2014).

The structure of McDonald’s follows divisional structure in which each of the divisions handle specific type of operational areas. The main aim of the organizational structure of McDonald’s supports autonomy and flexibility (Navimipour and Soltani 2016). The main characteristics of McDonald’s organizational structure includes the following:

  • Function based groups
  • Global Hierarchy
  • Performance based divisions

The main advantage of organizational structure of McDonald’s is that it supports monitoring and controlling of global operations. The performance-based division helps in providing advantage to implement the different strategies based on performance similarities of the market (Siu 2016).

The different employees working with McDonald’s along with customers of the restaurant are cooperative with the different purposes and they adhere to the same efficiently. The employees of McDonald’s tries to work hard to attain the required objectives and bring innovation with the implementation of working in team and improve the team dynamics effectively (Ritter and Geersbro 2018).

Furthermore, the customers are helping McDonald’s in achieving the purpose in which it is seen that there is no wastage of the food. McDonald’s is involved with different CSR programs wherein it is seen that the company is trying to implement plans that is helping the needy individuals to get some food for their livelihood (Taylor et al. 2015).

As the CEO of the company, Andrew Gregory needs to analyse the management functions that include planning, organizing, leading and controlling the different activities in the restaurant. He played the key lead role in Japanese business and take it out of the crisis. The CEO is responsible for leading the entire development and execution of the long-term strategy of the company and create value for the stakeholders as well (Nyadzayo and Khajehzadeh 2016).

Structure of McDonald’s

Furthermore, it has been seen that the company has experienced a slump in the market share and Andrew Gregory needs to take new initiatives in solving such issues effectively. With proper planning and organizing, the CEO tried to innovative ideas for McDonald’s by quickly enhancing the trends in the business and there has been introduction of “create your taste” experience among individuals in Australia (Choudhury and Harrigan 2014).

By becoming the leader of the organization wherein all the requirements of the customers by customizing the different options for the own burger selection. Using touchscreen along with setting up customer learning labs, CEO has helped McDonald’s in innovating and managing the changes effectively (Khodakarami and Chan, 2014). With the proper planning and organizing the activities, the activities performed by CEO will differ from the activities of assistant manager wherein the CEO will take care of all the departments of McDonald’s in a positive manner and this will help them in getting out the business from crisis. With the help of the CEO, the company will be able to cope up with different issues with appropriate guidance and leadership from the higher officials (Bhat and Darzi 2016).

The human, conceptual and technical skills of Andrew Gregor has tried to maintain and create innovation in different kind of products of McDonald’s. with the entry of Andrew Gregory in the marketing department, they included the innovative strategies to improve the product development strategies successfully. Furthermore, McDonald’s has included the sustainability programs in the organization wherein the CSR principles are followed and the needy are provided with food as they have introduced different policies that helped them in managing the society well (O'donnell et al. 2016).

Furthermore, the company is changing in an innovative manner and they are meeting the different needs of the customers as well. Furthermore, it has been seen that the company is meeting the demands of the customers and introducing different demands of the companies in appropriate manner. The technical skills help in developing necessary changes in meeting providing personalised services to the customers in an appropriate manner (La and Yi 2015).

Lastly, the customer service management is effective in nature in which it is seen that the company has introduced different personalised services along with self service corner wherein the customers can order for variety of food items and receive them successfully.

  1. a) has weekly conferences with his management team at McDonald’s Australia

Andrew Gregory needs to plan the contents that is required to be described so that the management team officials can understand the different weaknesses and solve them successfully. Andrew Gregory requires to plan the different essentials accordingly as to guide the different departments regarding the flaws and the description of the techniques to improve the tasks that are assigned to them. The weekly conferences will help McDonald’s in understanding the requirements of the different customers with the implementation of different motivational strategies implementation in the organization (Nyadzayo and Khajehzadeh 2016).

Importance of individuals in helping McDonald’s to meet purpose

It will increase the overall feasibility of the organization and they will be able to gain competitive advantage in the market. The weekly conferences will be helpful for the teams to make the management operative in nature so that it encourages innovation in the tasks performed by them. The weekly conferences will help employees in learning different techniques to gain sustainability.

  1. b) assesses feasibility of adding new product to menu of McDonald’s

Andrew Gregor requires to take suggestions from the marketing department of the company as to understand the feasibility to add new products in their menu. It is required to understand the main essentiality of the company to deliver new kind of products to their customers to gain competitive advantage (Padilla-Meléndez and Garrido-Moreno 2014).

Furthermore, the CEO needs to understand the nature of other competitors with proper planning and organising the activities so that the company can focus mainly on their menu to assess whether the same menu is available with other competitors or not. This will help the customers in managing their menu and make it unique with help of the different teams in the organization.

  1. c) keeps employees focused on commitments of the company towards the customers

McDonald’s CEO needs to provide different kind of motivational incentives that can be financial and non-financial in nature. The motivational incentives can help the company in making the employees focused towards the commitments of company along with towards the customers.

It has been seen that the employees need to provide training to the employees who are working in the organization as this will assist them in analysing the commitments that is required to be provided by them in gaining more productivity in the organization. The marketing of the company will be performing good and it will be best when they will focus more on understanding their requirements and solve the commitments of the employees efficiently.

Andrew Gregory performs the different kind of tasks with the help of the different officials or employees who are working in McDonald’s. It has been seen that Andrew Gregory has helped the company in taking out the company from different kind of risks along with appropriate kind of business planning. The CEO of McDonald’s has been transformational leader who has tried to gain competitive advantage in the company against the competitors with the help of employees.

The other managers need to learn to work cooperatively with the different employees in the organization as this will help in gaining competitive advantage. McDonald’s mainly focuses on the safety of the employees and provide the customers with the best quality burgers at affordable rates. The approach adopted by McDonald’s can be adopted by the other companies where the main focus is to provide the essentials and motivations to employees and understand their viewpoints in making decisions.

Role of Andrew Gregory

There are few differences in being CEO of McDonald’s in comparison to become a CEO of Non-Profit Organization. Andrew Gregory focuses more on the generation of the profit of the company. However, it is seen that the CEO of Non-Profit organizations focuses on the welfare of the individuals or employees of the organization. It is essential that all the employees need to understand the complexities in the business.

Furthermore, it has been seen that McDonald’s main motive is marketing the different products and delivering the customers with appropriate kind of service to gain competitive advantage. On the other hand, the main focus of non-profit organizations is to provide welfare of the individuals however it is done without the motive of marketing products and services.


Therefore, it can be concluded that the marketing strategy of McDonald’s has been analysed that has helped the company in gaining competitive advantage. Furthermore, McDonald’s CEO has helped in solving the different kind of issues effectively with proper planning, controlling, organising and leading functions of the management as well.


Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing : an introduction. Pearson Education.

Bhaduri, S.N. and Fogarty, D., 2016. Mitigating sample selection bias through customer relationship management. In Advanced business analytics (pp. 71-83). Springer, Singapore.

Bhat, S.A. and Darzi, M.A., 2016. Customer relationship management: An approach to competitive advantage in the banking sector by exploring the mediational role of loyalty. International Journal of Bank Marketing, 34(3), pp.388-410.

Choudhury, M.M. and Harrigan, P., 2014. CRM to social CRM: the integration of new technologies into customer relationship management. Journal of Strategic Marketing, 22(2), pp.149-176.

Khodakarami, F. and Chan, Y.E., 2014. Exploring the role of customer relationship management (CRM) systems in customer knowledge creation. Information & Management, 51(1), pp.27-42.

La, S. and Yi, Y., 2015. A critical review of customer satisfaction, customer loyalty, relationship marketing, and customer relationship management. Journal of Korean Marketing Association, 30, pp.53-104.

Marum, M. and Moran, W., SugarCRM Inc, 2016. Retail product interaction driven customer relationship management. U.S. Patent Application 14/672,940. (2018). McDonald's: Burgers, Fries & More. Quality Ingredients.. [online] Available at: [Accessed 7 May 2018].

Navimipour, N.J. and Soltani, Z., 2016. The impact of cost, technology acceptance and employees' satisfaction on the effectiveness of the electronic customer relationship management systems. Computers in Human Behavior, 55, pp.1052-1066.

Nyadzayo, M.W. and Khajehzadeh, S., 2016. The antecedents of customer loyalty: A moderated mediation model of customer relationship management quality and brand image. Journal of Retailing and Consumer Services, 30, pp.262-270.

O'donnell, C., Pitre, A., Schnitt, M., Sit, E., Hennekey, T., Ball, M., Brown, G., Kaplow, Z.E., Sobin, Z., Williams, J. and Neuwirth, M., 2016. Method of enhancing customer relationship management content and workflow. U.S. Patent Application 14/854,591.

Padilla-Meléndez, A. and Garrido-Moreno, A., 2014. Customer relationship management in hotels: examining critical success factors. Current Issues in Tourism, 17(5), pp.387-396.

Ritter, T. and Geersbro, J., 2018. Multidexterity in customer relationship management: Managerial implications and a research agenda. Industrial Marketing Management, 69, pp.74-79.

Siu, N.Y.M., 2016. Customer relationship management and recent developments.

Taylor, J., Roberts, J., Oram, C., Gupta, A., Itani, M., Baroudi, S. and Smith, R., SugarCRM Inc, 2015. Customer relationship management system and method. U.S. Patent 8,972,876.

Trainor, K.J., Andzulis, J.M., Rapp, A. and Agnihotri, R., 2014. Social media technology usage and customer relationship performance: A capabilities-based examination of social CRM. Journal of Business Research, 67(6), pp.1201-1208.

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