CUSTOMER SURVEY IN CITY SQUARE JOHOR BAHRU

This research survey was conducted on behalf of our client- McDonalds Malaysia on the students' perception towards McDonald's Malaysia. We interviewed a representative sample of 100 full-time students around the area of Johor, also including those who took up the online survey, in order to look at their view point towards fast food and also McDonalds. This research paper will able to aid McDonald in improving their services to the customer and also to find out the thoughts of the students towards their current services and look for improving field for the business to grow and sustain the current customers in Malaysia.

The lead of McDonalds visits are caused by the new trend of the students, which they prefer to gather in McDonalds due to the Wi-Fi internet services, where we can see that (30%) visit the restaurant for dining and meals, where the rest (23%) go for internet access, (20%) for group discussion and (27%) visit McDonalds for friends gathering or chit chat session.

However with the new trend is coming out, McDonalds are being treated as a place which is more than a restaurant, a place to have discussion instead of discussion room? A place where you can enjoy the free internet services and do assignments or homework.

As we know that McDonalds are the first fast food restaurant who put up the nutrition's value table of their menu, however trough this research survey we found out that (23%) of the survey takers knows nothing about the nutrition's value of the food they ate and (35%) don't even bother about it. Students are being lack of health awareness lately as we also know that (31%) of the consumers often eat fast food because of the delicious taste.

From our research survey we also found out that the current delivery and drive thru services are very convenient in the point of view of the consumers, as a lot of them they just wanted to grab a fast meal and they are rushing time. The delivery service also helps those students where they do not have their own transportation; this will help them as just a phone call for a meal.

The research shown that majority of the students (30%) and (20%) of the students felt that the pricing of McDonalds meals are pricey, this condition is understandable as most of the students are not having any income at all.

FRANCHISEE EXPERIENCE

Tan Sri Vincent Tan

Vincent Tan, is a Malaysian businessman and investor. He is the chairman and chief executive of Berjaya Corporation Berhad, which is in a wide array of businesses which includes golfing, property, resorts, and gambling in a group known as the Berjaya Group.

In 2010, he entered the Forbes billionaire list with an estimated worth of US$1.3 billion (RM4.2 billion). Tan's success in the Malaysian business sector has been attributed in part to his close association with prominent Malay political figures.

Tan started working as a bank clerk when he was 17 and got his big break when he bought his first McDonald's franchise. Sharing his experience, the Malaysian billionaire and philanthropist said it was his proficiency in the language that helped him acquire the McDonald’s franchise in Malaysia when he was then only 28 years old.

“I can honestly say this would not have been possible if not for my proficiency in English that allowed me to convince the people at McDonald’s that I was the right person to help introduce and grow McDonald’s in Malaysia,” he said to some 70 students from his alma mater Sekolah Menengah Kebangsaan Tinggi Batu Pahat, here, today

FRANCHISEE OPERATIONS

The traditional McDonald’s philosophy that acts as the guiding force behind it’s operational make-up is “Quality, Service, Cleanliness and Value”. The importance of operation management can be divided into three broad categories:-

Assistance in Strategic Decisions (Long term):- Operation management decision at the strategic level affect McDonald’s effectiveness to address customers needs world-wide. This would consider the fixed conditions and existing constraints to formulate global and efficient tools/ systems/ process to achieve competitive advantage. E.g. A major technological change resulting in value addition to the franchisee. Such decisions are in the senior management level.

Assistance in Tactical Decisions (Intermediate term):-This will involve helping out in efficiently scheduling the resource and labour under the constraints defined by strategic plan. This includes decision based on number of taskforce required in a particular restaurant outlet, how many shifts to operate, when the material should be delivered, what should be done about the wasted food etc.

Assistance in Operational planning and control Decisions (Short term):- These are operational decision made for a narrow / short period under the constraints defined by tactical decisions. This assists in decisions like what are the tasks we need to finish today, who will clean-up the restaurants for the day, what jobs have priority etc. E.g. this would be typically be the decision made by a shift operator in a restaurant. These would be narrowly focussed on departmental objectives.

Evaluating success of existing Operational processes at McDonald

McDonald’s existing operations across its world-wide restaurants are closely linked to the overall strategy of the organisation which is evaluated as under.

PRODUCT DESIGN & POSITIONING:-

Product planning in McDonald’s includes creating a menu keeping both the economy and quality into consideration. Operation management processes related to product design include

Achieving consistent and similar quality, flavour and taste across their entire restaurant worldwide by development of sophisticated supplier network and distributors’ network.

Innovativeness by catering to the changing needs and preference of the customers by removing certain items based on their seasonality or adding new products to the menu list. For e.g. introduction of ‘healthy’, low carb, low calorie food item in the menu for the health conscious customers.

Re-engineering the menu based on the local market, the local culture, client segment, their perception and lifestyle. For e.g. catering to the differential segment of vegetarians with a large array of customised vegetarian menu. Modern sophisticated cooking equipments to prepare the products. Pricing the Menus in such a fashion that is affordable to large segment of consumers

LOCATION SELECTION

McDonald’s restaurant is strategically positioned in such a way that ensures maximum visibility and has a large customer base. It takes into consideration the initial investment required which is a strategic operational decision based on expected return on investments. The identified operational processes with respect to location include Provide a clean and comfortable ambience targeted at families. Close proximity to the raw material suppliers. Suitable transportation infrastructure availability and related costs. At malls and other shopping areas, there are targeted play area aimed at attracting more kids to the restaurants. Considers parking facilities or area required for vehicles, the waiting time incase of a drive-in restaurant. Turn-around time (TAT) of the product becomes a key to determine the number of customers (& thus the respective vehicles) waiting in the queue in drive-ins.

FRANCHISOR MANAGEMENT ( MCDONALDS MANAGEMENT )

The strategies of McDonalds revolved around this philosophy which ensured that the company protects its brand reputation built over so many years. There were many a key operational decisions which were part of the company’s overall strategy. The preceding sections discuss the role of operations as an enabler of the corporate strategy.

“Managing the available resources by designing, planning, controlling, improvising and scheduling the firms systems & functions and thereby deliver the firm’s primary product & services. “ It has been an integral part of manufacturing and service organisation and is aimed at timely delivery of finished goods & services to the customers and also achieving it in a cost effective manner. It consist of an amalgamation of different functions including quality management, design & industrial engineering, facility and channel management, production management, operational research, work force management, enhancing product design, improvising productivity, and improve customer services.

The McDonald's executive organisational department areas are as follows: at the top are the chairman and chief executive officer, and the chief operating officer. Below that, the departments are broken down into: corporate affairs, marketing, human resources, national operations, regional managers, finance, information, and strategic planning.

McDonald’s success is built on a foundation of personal and professional integrity. Hundreds of millions of people around the world trust McDonald’s. We earn that trust everyday by serving safe food, respecting our customers and employees and delivering outstanding Quality, Service, Cleanliness and Value (QSC&V). We build on this trust by being ethical, truthful and dependable. In short, what Ray Kroc, founder of McDonald’s Corporation said more than 50 years ago was right.

McDonald’s Board of Directors is entrusted with and responsible for the oversight of McDonald’s Corporation in an honest, fair, diligent and ethical manner. The Board has long believed that good corporate governance is critical to fulfilling the Company’s obligation to shareholders. We have and will continue to strive to be a leader in this area. This section of McDonald’s website contains detailed information about McDonald’s governance practices.

McDonald’s Board believes that good governance is a journey, not a destination. Accordingly, we are committed to reviewing our governance principles at least annually with a view to continuous improvement. One thing that will not change, however, is our commitment to ensuring the integrity of the McDonald’s System in all its dealings with stakeholders.

HISTORY MCDONALDS IN MALAYSIA

This first Macdonald's restaurant was opened at the intersection between Jalan Sultan Ismail and Jalan Bukit Bintang back in 1982, presently hosting Gordiano. Maybe because KL plaza (nearby) was BERJAYA's HQ then, and that Tan Sri Vincent Tan was the owner of Berjaya.  To trace it further, he was the first person to bring in the franchise under Golden Arches Group of Restaurants. After then, he brought in a lot more franchise programs such as 7-Elevens, Starbucks, Kenny Rogers, Singer. ‘ You name it, he's got it!’

In the opening day of the historic, McDonald's Bukit Bintang has rewarded its customers is first and foremost buy a Big Mac in Malaysia by giving him a Big Mac every week FREE for a year!

Besides Big Mac, McDonald's Bukit Bintang which is open every day from 8 am to 12 pm, sells dishes Fillet-O-Fish, French Fries, Apple Pie, milkshakes and many others.

Background McDonalds in Malaysia

McDonalds was founded by two brothers, Richard and Maurice McDonald in 1937 in California. This largest global fast food chained arrived in Malaysia 43 years later in December 1980. McDonald Corp. gave their license to Golden Arches Sdn Bhd to open McDonald's Restaurant in Malaysia. After twenty six years they now have 185 franchise outlets nationwide. McDonalds have created over 7000 job opportunity ever since they arrive in Malaysia over the years. Their vision is “to be our customers' favorite place and way to eat”.

In Malaysia, McDonald progressively looking at plans to develop aspects of their business franchise here. Tracing the history of McDonalds name in Malaysia, it built its name in Malaysia for the first time in December 1980, when the United States McDonalds Corporation awarded Golden Arches Restaurants Sdn Bhd, a license to operate McDonald's restaurant chain in Malaysia. Jalan Bukit Bintang, Kuala Lumpur was chosen as the most strategic locations, and so on 29 April 1982, the first McDonalds restaurant in Malaysia has been opened. With the opening of this restaurant, McDonalds Malaysia was crowned as the first restaurant in the country which operates a majority Muslim population.

Now, McDonalds Malaysia has had a total of 204 restaurants nationwide network and make new restaurant with a projected growth rate of between 15-20 restaurants annually. With the opening of this new restaurant, of course employment opportunities for local residents also increased. Estimates of 1500 new jobs will be created through the opening of new restaurants, the addition of staff and remodeling restaurants available.

By 2014, McDonald's Malaysia plans to have 300 restaurants, and make projections will serve more than 12 million customers every month! McDonalds Malaysia is also currently holds 42 percent market Quick Service Restaurants (QSR) in Malaysia, compared to fast food service restaurants such as Kentucky Fried Chicken (KFC), Burger King, A & W, Pizza Hut, Dominos Pizza and many others. Of the projected total of 300 restaurants, McDonalds Malaysia plans to have up to 30 per cent by 2014 franchised restaurants.