I.

INTRODUCTION

EXECUTIVE SUMMARY
The study is about management strategies of McDonald`s Company. McDonald`s Company started in 1940, when two brothers, Dick and Mac opened the first McDonald`s restaurant which is a hotdog stand, it became a popular and profitable teen hangout. In 1940, brothers closed and reopened the restaurant to sell only hamburgers, milkshakes and French fries. The restaurant gradually became famous and the McDonald`s brothers begin franchising their restaurant. However, they are not the top market leader of the growing fast-food restaurant in the industry. The objective of this study is to identify which strategies are not beneficial and which are responsive to the development of the company operations so that in return, they can outline their best practices and strategies. This study is aimed at helping the management to explore different strategies to reach the top leading market of fast-food restaurant. Strategic management, SWOT analysis, Total Quality Management and

organizational studies are the basic theories employed in the study. The study had a Qualitative Style and used simple random sampling and stratified. Survey questionnaires shall be given only to the students of FEU-FERN Diliman(WHY FEU-FERN DILIMAN STUDENTS?). We also conducted an interview to the manager of one of the McDonald`s branch.

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BACKGROUND
A large organization that produces goods across the globe is fast food chain McDonalds. McDonalds is one of the leading restaurant chains in the world, touching the lives of people everyday. The long journey of the burger brand started in 1940, when two brothers, Dick and Mac opened the first McDonalds restaurant in San Bernardino, California. Initially, they owned a hotdog stand, but after establishing the restaurant they served around 25 items, which were mostly barbequed. It became a popular and profitable teen hangout. In 1948, the brothers closed and reopened the restaurant to sell only hamburgers, milkshakes and French fries. As per the information of the McDonalds history, the major revenue came from hamburgers, which were sold at a nominal price of 15 cents. The restaurant gradually became famous and the McDonald brothers begin franchising their restaurant in the year 1953. The first franchise was taken by Neil Fox and under it; the second Mc Donalds restaurant was opened in Fresno, California. It was the first to introduce the Golden Arch design. The third and fourth restaurants were opened in Saginaw, Michigan and Downey, California, respectively. (iloveindia.com) A fast food restaurant is one of the most competitive lines of business in the industry. It is important to know who the major players on this kind of industry are. One example of that is the McDonald Company. Due to its popularity it touches the lives of people and was declared as maybe one of the conflicts in the Jollibee study. It is very interesting to know what does McDonalds Company did to have this kind of position in the industry especially that there are a lot of competitors like Jollibee and KFC. And the most significant answer is to understand and know the management strategies of the company. It will show the advantages of the strategies compare to the other fast food restaurants and if this kind of strategies was the key for the success of McDonalds Company. This study will be also helpful for the students who are taking up business courses. By knowing and understanding this kind of management strategies they can apply it in different situation especially if they are already working at a certain organization or even when they are doing a research study which is similar to this topic.
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II.

A. RESEARCH PROBLEM

McDonalds is one of the biggest fast food chains in terms of branches in the country, however there are lots of dominant players in the industry.

Can McDonalds regain its market leadership to improve through more responsive strategies? How these players manage its present resource of employees, workers, operations among others. What could be possible management strategies for McDonalds to improve its position among the industry players? What new strategies should McDonald introduce? What should it maintain and what should it let go?

B. RESEARCH OBJECTIVES
The objectives of this study are:
1. To create a landscape the about management strategies of McDonald 2. To find out who are the dominant players in the industry(OBSERVATION OF

DOCUMENT & WEBSITES)

(OBSERVATION OF INDIVIDUAL INDUSTRY ASSOC. WEBSITES)

development of the company operations.(CONTENT ANALYSIS OF OUTPUT IN OBJECTIVES 1 & 3

ANALYSIS OUTPUT IN OBJ. 1 & 4

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III.
Strategic Management

REVIEW OF RELATED LITERATURE

It is a field that deals with the major intended and emergent initiatives taken by general managers on behalf of owners, involving utilization of resources, to enhance the performance of firms in their external environments. It can be used to determine mission, vision, values, goals, objectives, roles and responsibilities, timelines, etc. (http://www.pim.com.pk/faq.htm#Str Mgt) Strategic Planning It is a management tool used for one purpose only: to help an organization do a better job - to focus its energy, to ensure that members of the organization are working toward the same goals, to assess and adjust the organization's direction in response to a changing environment. In short, strategic planning is a disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it, with a focus on the future. (Adapted from Bryson's Strategic Planning in Public and Non-profit Organizations). (http://www.pim.com.pk/faq.htm#Str Planning)

SWOT Analysis A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classifies as strengths (S) or weaknesses (W), and those external to the firm can be classifies as opportunities (O) pr threats (T). The SWOT analysis provides information that is helpful in matching the firms resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection.

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Strengths, a firms strengths are its resources and capabilities that can be used as a basis for developing competitive advantage. Weaknesses, the absence of certain strengths may be viewed as a weakness to overcome and pursue opportunities. Opportunities, the external environmental analysis may reveal certain new opportunities for profit and growth. Threats, changes in the external environmental also may present threats to firm. (Quick
MBA)

Total Quality Management (TQM) It is an approach that organizations use to improve their internal processes and increase customer satisfaction. When it is properly implemented, this style of management can lead to decreased costs related to corrective or preventative maintenance, better overall performance, and an increased number of happy and loyal customers. It seeks to improve quality and performance which will meet or exceed customer expectations. This can be achieved by integrating all quality-related functions and processes throughout the company. TQM looks at the overall quality measures used by a company including managing quality design and development, quality control and maintenance, quality improvement, and quality assurance. TQM takes into account all quality measures taken at all levels and involving all company employees. (Murray, Martin)

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IV.

SIGNIFICANCE OF THE STUDY

The study on the strategic management of McDonalds on the Philippines fast food industry can be a learning paradigm for the students especially for us who are taking business courses to have a deep knowledge in different strategic activities of a business. The projects goal is designed to help students improve academic competence, develop employability skills, implement a career plan and participate in a career pathway in preparation for careers in the food manufacturing or services sector after graduating from college. This goal can be achieved through the mentors that can teach the students the evolving management of strategies. The output of this study is a source material that the teachers can assimilate and disseminate by diffusion and induction technique.

V.

LIMITATION OF THE STUDY

The limitations of this study include external validity, or the generalizability of the study. The students of FEU-FERN are the participants in the complete study, and each participant was a college-degree. In addition, the participants were all 1st yr to 4th yr class of BS Information Technology, BS Computer Science, BS Accountancy, BSBA major in Legal, Operation and Financial Management students without learning disabilities. INCLUDE A PORTION WITH TITLE: OPERATIONAL DEFINITION TO DEFINE TH FF. 1. STRATEGY 2. STRATEGIC MANAGEMENT 3. MC DONALDS 4. FAST FOOD INDUSTRY 5. MARKET LEADERSHIP

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VI.

FRAMEWORK OF THE STUDY

A. THEORETICAL FRAMEWORK

Strategic Management Strategic Planning SWOT Analysis Total Quality Management Organizational Strategies Market Leadership of McDonald

B. CONCEPTUAL FRAMEWORK

-identify the beneficial Strategies of McDonalds -what are the management decisions that should be keep on process -being effective on making new qualitative strategies To have the competitive advantage in fast food industry Market Leadership of McDonald

C. OPERATIONAL FRAMEWORK -identify the beneficial Strategies of McDonalds -what are the management decisions that should be keep on process -being effective on making new qualitative strategies To have the competitive advantage in fast food industry

Market Leadership of McDonald s Quality research, education and wide perception in decision making.

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VII. BUDGET
McDonald's Management Strategy Duration: June to August PROPOSED BUDGET Research Expense Transportation Expense Internet Load Communication Expense Food Expense Print Expense Book Bind Expense Salary Expense TOTAL TOTAL FUNDING REQUESTED/TOTAL BUDGET P300.00 350.00 150.00 500.00 350.00 300.00 250.00 P2, 200.00 P2, 200.00

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VIII. SCHEDULE
J WEE K1 U WEE K2 N WEE K3 E WEE K4 J WEE K5 U WEE K6 L WEE K7 Y WEE K8 A WEE K9 UG WEE K 10 US WEE K 12 T WEE K 13

Research Problem Research Objectives Background Executive Summary Significance of the Study Scope and Limitations of the Study Review of Related Literature Framework of the Study Research Design Sampling Technique Submission of 1st Draft of proposal Survey Design Interview Schedule Observation Checklist Pre Testing Data Gathering Data Analysis Writing of Findings
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Oral Presentation

IX. ORGANIZATIONAL CHART

Project Mgt Leader Reshan Lyka Benaro

Consultant Kriztian Dave Dognidon

Secretary Cherry Bentulan

Researchers Inigo De La Rosa Kevin Regala JM San Miguel

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X. METHODOLOGYWHERE IS YOUR DISCUSSION ON THIS INTERVIEW SCHEDULE MAKE THIS OPEN MINDED
Read the following: This study is carrying out an evaluation of management strategies of McDonald`s Company. Would you mind answering a few questions in your experience anything that is related to McDonald`s management strategies. Your answer will be treated with confidentiality regarding the questions for this interview. All responses will remain anonymous.

1. Do you think that McDonald`s Company is the leading fast-food restaurant here in

the Philippines? Better find out for yourself this info from industry website.etc

Yes, Why? No, Why not?

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2. Do you think that your management strategies is effective for the success of the

McDonald`s Company? Cite an example of primary strategies. OFCOURSE MCDONALDS WILL SAY THEIR STATEGIES ARE EFFECTIVE

3. ?Aside focusing on strategic management, what are the other parts of management

that will be helpful for the success and being competitive company? And explain why, atleast one.

Financial Operations Human Resource Economics Marketing Legal

1 Where are the current management strategies derive? ___________________________________________________________--

2.Who do you consider are the dominant industry players that greatly affect the competitive advantage of McDonald`s Company?

Jollibee KFC Burger King Wendys

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Wham Burger Slammers Burger TGIF Restaurant Johnny Rockets

Cite one restaurant and explain why this restaurant affect the McDonald`s competitive advantage. 3.How do you think are McDonald`s management strategies better than other fast food restaurant?

Yes, Why? No, Why not?

4. ?Do you think that McDonald`s has a high risk in competition in fast-food industry?

Yes, Why? No, Why not?

4. Are there areas for improvement in the current? Explain why.

___________________________________________________________________

5. How long will these McDonald`s management strategies that you mentioned be

effective?

______________________________________________________________________________

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OBSERVATION CHECKLISTBASED ON INTERVIEW W/ MCDONALD & OBSERVATION + ACTUAL OBSERVATION OF STORE PLAYERS
OBSERVATION Needs Improvement Good Very Good Excellent

*PLACE Cleanliness in place Environment Security *FOOD Cleanliness in food Serving healthy food *SERVICE Friendly Crew Quick service Security Customer Satisfaction *VALUE Food Pricing Marketing Strategy

USE THIS OBSERVATI ON CHECKLIST FOR OBJECTIVES 1 TO 3

INDUSTRY

MCDONALDS

OTHER PLAYERS

MNGMNT STRATEGIES BEST MNGMNT PRACTICES

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DOMINANT PLAYERS (FILL UP FOR INDUSTRY ONLY)

OUTLINE
RESEARCH OBJECTIVES
1. To create a landscape about management strategies of McDonald 2. To find out who are the dominant players in the industry 3. To outline the best practices and strategies of the local burger brand industry lead.

RESEARCH METHODOLOGY
a.) Interview of McDonalds management b.) Observation using document

DATA COLLECTION INSTRUMENT

Observation of documents and websites a) Interview of industry officials b) Observation of industry websites c) Observation of one store each of each player

Observation checklist a.) Interview Schedule b.) Observation Checklist for b & c

4. To identify which strategies are not Content analysis of beneficial and which outputs in objectives 1 to 3 are responsive to the development of the company operations
5. To map up more

Content analysis table

responsive management strategies for McDonalds.

Content of analysis of outputs in objectives 1 to 4

Content analysis table

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FEU-FERN Diliman SURVEY QUESTIONNAIRE NOT USEFUL FOR YOUR STUDY FOCUS ON OBSERVING 1 STORE EACH FOR ALL THE PLAYERS & OBSERVE USING THE ITEMS IN THE OBSERVATION CHECKLIST
Dear Respondents, Good day to you! We are the students from FEU-FERN Diliman and currently taking our subject Business Research. We prepare this survey to gather information for our study about the McDonalds Management Strategy. The information you provide will be used in our research project. Please answer each question honestly. There is no right or wrong answers. Your responses are strictly confidential. Only aggregate data will be used, and your anonymity is ensured. -Researchers

DIRECTION: Fill up the following question or put check ( answer.

) on your corresponding

Name (Optional):________________________ Gender: __________ Age: _____

Year/Course: ____________________________

1. How do you know about McDonald`s restaurant?

o Commercial o Newspaper/Magazine o Family/Relatives o Friends 2. As a customer, how often do you go to McDonalds? o Everyday o Every other day o 0nce a week 3. Would you say that McDonalds is healthy? o Yes o No

4. Why do you eat at McDonalds? o Food Quality o Speed of service o Convenient o Cheap 5. What meal do you prefer in McDonalds? (choose only one) o Hamburger o Chicken Nuggets o French fries o Chicken with rice o Ice cream
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o McFloat 6. What can you say about the food of McDonalds? o Delicious o Not Delicious 7. How do you see the management strategy of McDonalds? o Effective o Not so Effective o Poor 8. Do you think that McDonalds has a high risk in competition in food industry? o Yes o No 9. How do you rate the overall satisfaction of McDonalds? o Very satisfied o Satisfied o Neutral o Dissatisfied o Very dissatisfied 10. How likely would you recommend McDonalds? o Very likely o Likely o Neutral o Unlikely o Very Unlikely 11. If you have a chance to add or improve in McDonald`s, what would be your suggestion and why.
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SAMPLING TECHNIQUE
The sampling technique used for the survey of industry player best practices is purposeful & quota non-probability sampling. Communication approaches was utilized via interview of the manager of one branch of McDonalds to personally and gather relevant information about McDonalds.

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XI. BIBLIOGRAPHY
Business Administration Inc: http://www.quickmba.com/strategy/swot/ Free Management Library, Total Quality Management: http://managementhelp.org/quality/total-quality-management.htm History of McDonalds: http://lifestyle.iloveindia.com/lounge/history-of mcdonalds-1806.html MCDONALDS HISTORY: http://www.mcdonalds.ca/pdfs/history_final.pdf McDonalds Philippine site: http://www.mcdonalds.com.ph/about Murray, Martin: Total Quality Management: http://logistics.about.com/od/qualityinthesupplychain/a/TQM.htm Quick MBA Strategic Management, Internet Center for Management and Strategic Management: http://www.pim.com.pk/faq.htm#Str Mgt SWOT Analysis: http://www.pim.com.pk/faq.htm#SWOT

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