Professional Documents
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This project contains the analysis in the field of a restaurant of how they manage their communication, knowledge and information to make effective decision making within their stakeholders of the business for the better success of the organization. So for an example I have taken McDonalds and done my research on it. I have listed down the decision making process in McDonalds and its success due to that. Also gathered knowledge of their decision making techniques and the way they asses the information from their internal and external sources. Implemented and recommended improvements to develop their organization growth and suggested methods of ensuring their company secrecy to have a well managed organization. I have also done an analysis on how to promote a product through personal networking. By identifying the people I want to promote it through and how it would be beneficial to our organization and it would help us to reach out to more people. I have also identified and recommended strategies for the future improvement of marketing a product through personal networking and elaborated on how personal networking can also affect organizational secrecy.
Managing Communication, knowledge & information McDonalds Business process Table of contents.
1.1 Organizational hierarchy and its information flow
1.2 The stakeholders in McDonalds
04 05
07
1.3 Decision making and its progression in McDonalds
07
09
1.4 The range of decisions to be taken to communicate
10 10
14
1.6 Customer care and product decision
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17
1.7 Marketing Decision
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21 21 21 21
22
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22
22
23
23
24 24
26
2.5 Methods of ensuring secrecy in an organization
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28
1 Networking 33
1.2 The benefits developing relationship with people
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34
35
1.3 strategies for improvement
35 - 36
1. Introduction
The aim of this study is to identify the current challenges faced by a certain organizations in the areas of Information, Knowledge and Communication Management. To suggest improvements and give solutions on how to implement the suggestions efficiently to achieve organizational goals. According to the assignment given by Mrs. Maryanne, I have hereby chosen to analyze the field of a restaurant of how they identify their information needs and how they collect this information to make effective decision making in their organization. So I have herby chosen McDonalds. McDonalds is a major global food service restaurant organization since 1948. This organization has spread its service to 119 countries on six continents with more than 31,000.00 restaurants. More than 70% of McDonald's restaurants worldwide are owned and operated by independent local men and women. This company has reached great heights in a short period. A typical McDonalds restaurant employs about 60 people. Most employees are paid by the hour and are referred to as 'crew members'. Their primary responsibility is to prepare
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the food, serve customers and carry out task for the efficient running of the restaurants. Other hourly paid employees who work alongside them include training squad members Dining Area Hostesses, Party Entertainers, Administrative Assistants, Security
Customers : A person, company or other entity which buys goods and services produced by another person, company or other entity
The bank : An organization, usually a corporation, charted by a state or federal government which does most or all the following: receives demand deposits and time deposits, honors instruments drawn on them, and pays interest on them; Discounts notes, Makes loans and invest in
Management : Directors & managers who have the power and responsibility to make decisions to manage an enterprise. As a discipline, management comprises of the interlocking function of formulating corporate-policy and organizing, planning, controlling and directing the firms resources to achieve the policys objectives. The size of management can range from one person in a small firm to hundreds or thousands of managers in multinational companies. In large firms the board of directors formulates the policy which is implemented by the chief executive officer. Some business analysis and financiers accord the highest importance to the quality and experience of the managers in evaluating an organizations current and future worth.
Investors : An individual that commits money to investment products with the expectation of financial return. Generally the primary concern of an investor is to minimize risk while maximizing return. as opposed to a speculator, who is willing to accept a higher level of risk in hopes of collecting higher than average profit.
Employees or staff : A person who is hired to Provide services to a company on a regular basis in exchange for compensation and who does not provide these services as part of an independent business.
Shareholders :-
Government : Body of people that sets and administers public policy, and exercises executive, political and sovereign power through customs institutions and laws within the state.
1.3 Decision making and its progression in McDonalds. Anton Trevin Alphonsus, Batch 30, Business Management
Managing Communication, knowledge & information McDonalds Business process 1.4 The range of decisions to be taken to communicate with the stakeholders of a restaurant.
Stock control decision Finance decision Customer care decision Product decision
> suppliers, customers. > shareholder, employees, management. > customers, employees, management. > management, employees, investors
Research and development decision > investors, shareholders, management. Marketing decision > customers, employees.
Recruitment and training decision > management, employees. Franchising decision > management, shareholders, employees.
Figure 1.5.1 structure of the finance sector in McDonalds Financial reporting Financial reporting looks at historical performance with the primary responsibility of the corporate Accounts department being the preparation of annual finance statements and reporting McDonalds monthly results to their parent company in the U.S. several specific functions are in place in order to achieve these requirements: A centralized Accounting center is responsible for processing all accounts receivable and payable transaction, banking income, managing working capital and also for the maintenance of the fixed asset registers. The accounting center provides day to day support to every McDonalds restaurant.
Treasury and tax experts ensure compliance with tax laws and make sure the company has sufficient cash flow and appropriate finance in place in order to meet business needs.
It is the responsibility of the senior management at McDonalds reinvests the profit made by the company in order to generate future cash flows and returns for the shareholders. Whether this is done by building new restaurant, reinvesting in existing restaurants, paying all depts., to reduce financing cost or paying a dividend to shareholders. Their decisions will be based on financial appraisals carried out by the McDonalds finance team. Refer figure 1.3.1
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Figure 1.5.2 structure of decision made by the finance sector in McDonalds. The key role of the McDonalds finance team is to help formulate relevant targets for the business and report actual performance against these targets. Analyzing these data allows us to highlight areas where improvements might be made within the business. As with all McDonalds performance analysis, financial measures are considered alongside non
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financial measures and consideration of long term effects, so as to evaluate the activity from a balanced position.
Figure 1.5.3 structure of the success of McDonalds through effective decision making.
Managing Communication, knowledge & information McDonalds Business process 1.6 Customer care and product decision
Customer care and product decision and how they communicate it to their stockholders, McDonalds has some phenomenal system in place, developed and proven by input of billions of dollars and hundreds of thousands of man-hours worth of research. The system they offer are effective or they would not be in place and when the system and procedures that are not effective are proven ineffective, theyre changed. Any unsuccessful McDonalds whether unsuccessful from the customers point of view: Poor quality Slow service Dirty restaurant or environment. Now this can be grown into successful McDonalds restaurant by implementing and vigilantly following up on system and process and procedures that the McDonalds system offers. The most important thing that leads to McDonalds success is managers willing to do what it takes to follow procedures, not to mention riding crew and other managers in regard to training those procedures and following up with them all the time. Its a heavy responsibility for a manager who wants to do the best they can every day, because its pretty likely most of the people around you do not wake up and set out to excel every day. The majority of crews and managers in McDonalds is just people showing up collecting a paycheck, looking to finish their shifts and get away as fast as possible. Its nearly always possible to motivate any person, no matter how difficult the personality
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is. If what you want is your crew and managers to follow procedures the easiest way is to manipulate them to do what you want them to do, is to show them how it benefits then and how their actions can affect others.
The manuals of the McDonalds employees not only emphasize organizations motto and QSCV, is also spells out everything they need to know to perform their task efficiently. It includes detailed rules on cleaning, food preparation and employees grooming and
Its menu has every day part: breakfast, lunch, dinner, AM and PM snack, dinner and late night covered with both value offering and premium price points thats the barbell strategy. Its coffee tastes good beating out the niche coffee operators in my opinion. It does not charge ATM fees to use debit cards unlike some other QSR operator. Ergonomics: ever noticed how calmly McDonalds hourly employees work ever during the rush, its because the equipment layout and menu is right. Establishing the place attribute (McDonalds: Im loving it) as an experiential factor, beyond just low prices or LTO offers. McDonalds marketing its self is diversified, with national, regional co-ops and local store marketing pillars. The staff is amazingly tenured, you can easily find store general managers with 30 years seniority, unlike the other churn and burn operators who build their model on turnover. The company and franchisee actually works together. Franchisee and the company work together in marketing co-ops, not a top down, take it or leave it
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mentality.
Familiarity: familiarity is a major factor for McDonalds success. To many kids, the golden double arches do not just represent food, but also home, a sense of closeness.
Shops with bright and specious interior; air condition and comfortable seats.
2 Problem definition & analysis Anton Trevin Alphonsus, Batch 30, Business Management
2.1 Information Management Information Management is the collecting and managing of information from one or more sources and the communication/distribution of it within and outside the organization. The need for information management in an organization is of great importance in order to keep all stakeholders satisfied and to communicate the right information to the right individual at the right time. 2.1.1 Benefits of Information Management Easy, efficient and less time consuming entry, storage and access of records. Lower operating costs and reduced wastage of resources tied to records handling, such as labor, office space, equipment and supplies. Also provides back up if a computer based information storage system is used. Allows proper information to be given to specific stakeholders promptly. Ensures that long-term records are stored in environmentally appropriate space.
2.2 Knowledge Management Knowledge Management can be defined as the managing of systems and technologies, people, processes, techniques and knowledge assets. An emerging area in management that is constantly changing and has to be updated. There are two approaches to knowledge management:
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Tacit Knowledge: Inner Knowledge that is approached as difficult to obtain from its source.
Facilitates better more informed decisions. Contributes to the intellectual capital of the organization Encourages free flow of ideas which leads to insight and innovation Improves customer service, efficiency and leads to greater productivity.
2.3 Communication Management Communication is a two way process of exchanging information and ideas through any mode (Oral, Written, Visual, Electronic) with the feedback or implementation of the message being a measure of its effectiveness. The systematic planning, implementing and motoring of all communication channels within organizations is called communication management.
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Communication can be improved by introducing an email based memo system at the extreme of all remedies available. If all employees in the department work with computers and have access to the Internet. E-memos can be sent to all concerned with receipt of acknowledgement. But may not be the right mode for all messages. The most
2.3.1 Qualities of an Effective Speaker A good manager should have good interpersonal skills, moderate emotional skills, courage, self confidence, problem solving skills, and be able to gain trust and control of his/her voice. Presenting of information to groups effectively can be reflected through: Proper Organization of facts and ideas to be communicated Good Preparation Enthusiasm about the topic Confidence in one's self Clear expression and tone of voice Ability to engage audience
Break even happens when total revenues equal total cost, or when profit is nil. At this time point, it becomes necessary to cover the fixed cost. Break-even technique aids in making a
Ratio analysis : It compares the financial statements to evaluate the organizations financial position, strengths and weaknesses, historical performance etc.
Operation research techniques An operation research technique enables the use of quantitative technique in decision making. Some of them are as follow: Linear programming : It enables the decision maker to allocate scarce resources optimally and maximize profit. This technique is used mainly in product mix decision, inventory management problems and scheduling production facilities. Queuing or waiting line method : Queuing method is a scientific approach for optimizing customer service. Game theory :
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This technique enables to formulate a strategy based on the competitors strength and decision and ones own action.
Decision tree : Another mathematical approach, which enables to choose between several alternative courses of action.
The methods of collecting informations for business decisions are as follow: Analyzing organizations past annual report Customer feedback or through customer satisfaction survey Group meeting Group discussion Financial statement Balance sheet Past sales records. Customer complaints and suggestions.
Implement company policies to ensure secrecy. And advice the employees on monthly basis in regard to this, also make sure they are aware that breaking any company policy will lead only from being suspended from the employment.
Create software where no one will be able to download or copy company details that are circulated among the organization.
Implement common network policy throughout the organization. Use specifically designed software for the company system network. ex : dialog affinity, CCRM, V5, IR rate finder.
Place CCTV around the work environment. Issuing electronic identity card to to maintain a record of employees in and out floor. Also Having Finger scan/ pin code door access.
The reason for this is that not everyone is allowed to have chocolate depending on their health and age. EXP:
Children: - loves to have chocolate, but according to certain parenting their restricted in having them frequently. But this chocolate has been tested and made for children to have it frequently with no restriction, as this bar contains a lot of vitamins and minerals a child requires, that helps them to keep your children healthy and strong all the time.
Youth: - the current generation is more advanced than before, they always want to keep them selfs education and are hunger for knowledge. Also loves to have or experience something new. So this bar has been specially created for them to develop their knowledge as every bar contains a pin code, where they have to log into the EDNA site and enter the pin code, as they do they will be able to
Young adults & elders: - at this age people are more vigilant and concern of their health, so they do restrict themselves from having sweets such as chocolates. But now they have nothing to worry as we have come up with a solution, this Choco bar is made especially for them, as it doesnt affect their health and its made especially for diabetes, heart patients.
Now we have decided to promote this product through personal networking. Let me list down the people we need to reach to promote the product.
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Employees Investors customers government shareholders family members Friends neighbors Pharmacist Teachers Doctor
Investors : Educate them with our Product knowledge such as the price, the quantity, the flavor, whether it has been ISO certified by SLSI, packaging, total and accurate product cost detail etc. And how its going to benefit every age group. Current promotions implemented for this product.
Customers : Educate them with our Product information such as the price, the quantity, the flavor, ingredients etc. And how its going to benefit every age group and the specialty of this product. Chocolate Current promotions implemented for this product. Also give them the knowledge of why this chocolate is better than the other competitors product.
Government : Whether this has been ISO certified, total cost of the product. Standard legal documentation details for this product.
Shareholders : Educate them with our Product information such as the price, the quantity, the flavor, ingredients etc. And how its going to benefit every age group and the specialty of this product. Chocolate Current promotions implemented for this product. Also give them the knowledge of why this chocolate is better than the other competitors product.
Family members : Educate them with our Product knowledge such as the price, the quantity, the flavor and ingredients. And how its going to benefit every age group and the specialty of the product. Also give them the knowledge of why this chocolate is better than the other competitors product. Product promotions.
Friends : Educate them with our Product knowledge such as the price, the quantity, the flavor and ingredients. And how its going to benefit every age group and the specialty of the product. Also give them the knowledge of why this chocolate is better than the other competitors product. Product promotions
Neighbors : Educate them with our Product knowledge such as the price, the quantity, the flavor and ingredients. And how its going to benefit every age group and the specialty of the product. Also give them the knowledge of why this chocolate is better than the other competitors product. Product promotions
Pharmacist : Educate them with our Product knowledge such as the price, the quantity, the flavor and ingredients. And how its going to benefit every age group and the specialty of the product. Also give them the knowledge of why this chocolate is better than the other competitors product. Product promotions.
Teachers : Educate them with our Product knowledge such as the price, the quantity, the flavor and ingredients. And how its going to benefit every age group and the specialty of the product. Also give them the knowledge of why this chocolate is better than the other competitors product. Product promotions.
Doctor : Educate them with our Product knowledge such as the price, the quantity, the flavor and ingredients. And how its going to benefit every age group and the specialty of the product. Also give them the knowledge of why this chocolate is better than the other competitors product. Product promotions.
Managing Communication, knowledge & information McDonalds Business process 1.2 The benefits of developing relationship with people.
Customer :
They will get to know about the chocolate ingredients and its healthiness so this would motivate them of having it in regular basis. Also since when they are satisfied with the chocolate they will be loyal toward the product and the repeat purchase times will increase.
Family members : Family members are the closer contact for us, and they are always there to help us succeed. So as they have been informed about the chocolate VITA and its benefits of having it, they would definitely promote it to everyone they come across. This helps us to reach out the product on personal trust among people.
Friends : As family members friends also are the same. Having a close relationship will helps us promote the product to their friends and families as well through personal trust.
Pharmacist :
As per the site of people the product in a pharmacy are healthy, notorious and good to health. So building up a good relationship with a pharmacist helps us to reach out to more people as well. Also the trust on the chocolate will be also high for the purchases to promote it to their friends and family.
Teachers :-
Introducing new flavors and more variety of chocolates by identifying the need of our customers.
Coming up with good promotions that will benefit for the customers. Attracting packaging. Improving the product by identifying the customer complaint and there inquiries.
Conclusion
The purpose of this report was to analyze the current management of Communication, Knowledge and Information of McDonalds. The current functioning of all three areas of study were researched into and findings were published. The lacking areas were identified and suitable methods of mending problematic areas were presented. Ways of implementing the suggested possible solution were also stated. in course of the study is was found that McDonalds has a good management structure and is also a well planned organization. The reason for McDonalds to spread their branches and franchise outlets is cause of their well organized and maintained financial decision making. And the reason for there successful service and food menu is their marketing decision made and well trained customer care service. We have also analyzed the sources of information and recommended methods to improve their service. Also suggested methods to ensure there organization secrecy. Using personal networking we have identified and educated are self of how to promote a product and for whom we will be promoting it through. And the benefits the organization gets out of it. also suggested future strategies for improvement. And discussed on how personal networking can affect organizational secrecy.
References
Richard L. Daft Vanderbilt University (2009) Principal of management by Pg: 255
David sagar, Larry mead, Kevin Brampton Fundamental of ethics, corporate governance and business law.
BusinessDictionary.com, (2009) knowledge management. Available from:http://www.businessdictionary.com/definition/knowledge-management.html (Retrieved on November 25, 2009)