View the Youtube video related to how McDonalds applies the balanced scorecard (
ID: 2400759 • Letter: V
Question
View the Youtube video related to how McDonalds applies the balanced scorecard (https://www.youtube.com/watch?v=j6wmTWI6y6w). Discuss how the implementation of the Balanced Scorecard changed the way McDonalds focused on different measures. Why was the process to create measures for the scorecard “painful”? How did the company decide on what was really important? What were the challenges with selecting the measurements? Could another fast food company use McDonalds’ Balanced Scorecard and save time in developing one for itself?
Explanation / Answer
McDonalds Balanced Scorecard
The first McDonald’s store opens in 1948 in San Bernardino, California. The brandvision of McDonald is to be our customers' favorite place and way to eat. McDonald’s brandpromise is to provide “Simple Easy Enjoyment” to every customer at every visit. McDonald'smission is to be our customers' favorite place and way to eat and with inspired people whodelight each customer with unmatched quality, service, cleanliness and value every time. Since the beginning, McDonald has to work hard to change their market all the time andbecame of the top food restaurant in the world. Their performance is always high because of theiradaptation to the market. McDonald keeps on improving their vision to be the best. Byimproving their scorecard they focused on the customers and employees satisfaction, internalbusiness operations and eventually it financial.
Fast-food industry have many competitor, they have a hard time to differentiate themselffrom their competitors. This is likely McDonald’s biggest challenge in its industry strategy.Competing with other fast foods industry it is making them a challenge to earn profit from thesecompetitors such as Taco Bell, KFC, Wendy’s and Burger King. KFC, Taco Bell and Subwaydon’t have the same product to compete with them but their cost reduction is a competition tothem. The other factor is health consciousness. Nowadays customers like to choose healthy mealor choices like salads and sub sandwiches at Subways. They tried to have a healthier menu intheir menu items and decrease Ham burger that promoting an unhealthy lifestyle of obesity. Theeffort of increasing the differentiation and innovation, McDonald’s had already introduced thenew McCafe, selling premium coffee drinks at competitive prices, comparable to the coffeechain such as Starbucks. The McCafe of McDonald’s sets up a new product and the existingcustomers will experience a whole new different products and it will separate them from their competitors.
McDonald’s uses a lot of suppliers all around the global to provide products to all of theirrestaurants. Golden State Foods, Simplot and coffee growers from all around the globe includingIndonesia and Latin America is McDonald's suppliers. McDonald's restaurants use similarproduct from the same vendor. The Big Mac in Beijing and Rochester has the same taste.
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