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World McDonaldization
by John Severin
McDonald's is the leader in the fast food industry. For years their philosophy of providing good food for a low price has result in astounding growth around the world. This has result in new jobs and economic benefit for wherever the stores can be found. McDonald's uses strong marketing and solid economic practices to insure they're not going to lose their position in the fast food industry. McDonald's is a huge business and it has many effects on society both positive and negative.
The McDonaldization from the American Nation has resulted in many new jobs being created. However there is a negative stigma surrounding the jobs that McDonald's offers. Employment at McDonald's is rarely seen as an job that may become one's career. Although most jobs at all fast food restaurants are viewed negatively, McDonald's is the premier fast food restaurant and so the majority of the criticism falls on them. There are a lot of complaints directed at McDonald's for their low paying jobs, but McDonald's supplies a key role within this society for giving people jobs once they need them. Around the McDonald's home page businesses of jobs which can be found towards the average worker, and combined with these jobs is really a listing of skills that a person should be competent at in order to correctly perform the task. These competency requirements are extremely low and may be fulfilled through the great majority of the American public.
Most Americans view working at McDonald's as a job that may start a teenager off into the working world, but they do not expect this teenager to work there for over a year at McDonald's. Individuals who work on McDonald's serving food throughout their teen years are seen to have a job that is inferior. Although working in a McDonald's as a teenager is not desired by most, those who do apply for job and get hired are pleased to have the job. They know that they will not likely possess a career with McDonald's and yet they're happy that McDonald's is giving them a chance to make money and obtain some job experience. In the usa employment at McDonald's is looked recorded on but that is not the case in lots of parts of the world. Rarely are older adults serving food at a McDonald's in the US if they're not on the management, but in some countries having a job at McDonald's provides a secure paycheck and a safe future. Americans tend to forget there are others in the world who would be grateful for employment that pays four dollars an hour as well as the seven dollars an hour or even more that Us residents are getting paid at McDonald's. In america McDonald's are not considered nice restaurants; they provide average food for a cheap price, which keeps the public wanting more. In poorer parts of the planet McDonald's is viewed as a gourmet restaurant by some, and securing a job there'd raise the persons living style enormously.
McDonald's is a pioneer from the fast food industry and also the jobs offered at among its restaurants are similar to those offered by another fast food burger joints. If a person was to be hired at McDonald's they will most likely be started off because the frying person. This individual manages all of the French fries along with other frying processes that take place during a typical day. Next they'll either be trained steps to make burgers or how to man the leading counter. Males are usually educated to make burgers efficiently while females are often trained around the front counter and also the register. There can be more pressure than normal for the employees to operate quickly when many large orders are coming through. McDonald's has a reputation to keep that is reflected in the ability to serve the client his or her food in very little time. If a person was to work at McDonald's they'll acquire not many skills in the employment. You can think that they will learn to make Fried potatoes and hamburgers but this is hardly the case. The French fries are prepackaged and frozen, and all the worker must do is drop them in the oil and press a control button which will start a timer. Patties are removed from the freezer dropped on the grill, and then flipped over once the timer chimes. Both flipping burgers and making french fries can be dangerous because the hot oil involved often splatters on the workers arms causing pain and discoloration of the skin. It takes no skills to make the food at McDonald's, and the other duties requirements from the job take only a little more skill. Working at McDonald's may teach a person communication skills, but most likely the worker will be parroting what his or her boss told them to say. The article "Luring Youth to Fast Food Jobs" published in USA Today shows the dissatisfaction of the employees working at McDonald's, particularly due to the unsafe and greasy working conditions. Working at McDonald's doesn't teach useful skills that can easily applied to other jobs, which jobs could be unsafe. McDonald's does provide good food for a low cost, and that is what Americans are worried with.
McDonald's has high popularity among many Americans. The Golden Arches are a symbol of one of the major structures in position in the usa, junk food. Since McDonald's was first opened in the year 1940 in San Bernardino, California, its goal happens to be to advertise its fast service and great food. There's been some great slogans and advertisements from McDonald's. Some of its most well-known ones will be in more recent years. Slogans such as, "Two all-beef patties, special sauce, lettuce, cheese, pickles, onions on a sesame seed bun", "You deserve a break today", "I'm Lovin' it", and also the newest, "McDonald's Dollar Menuaires" (McDonald's). These slogans function as a gateway between McDonald's and it is customers. It is McDonald's way to get their name out.
A number of other ways McDonald's has gone to be able to promote their business ended up being to get involved in a variety of aspects of life. McDonald's is trying to prove to people who they are able to arrived at McDonald's for just about any kind of occasion. I'm certain there is someone at McDonald's who'd be prepared to possess customer's wedding within their store if there is someone willing to do so.
McDonald's is spending a lot of its money on promotions and good public relations in order to keep their business going. There has been several times that bad publicity can hurt their company. Critics are at the forefront of this anti-McDonald's movement. Critics do the things they're doing best, criticize. A good example of bad publicity is the movie "Super Size Me" by Morgan Spurlock in 2004. Morgan Spurlock spent four weeks eating only McDonald's in order to examine the results. Everyone agreed, including three doctors, an expert in nutrition, or even a spokesperson for that McDonald's asserted eating McDonald's isn't good for you. This movie is definitely bad publicity for McDonald's. That is one reason behind their marketing for his or her new line of premium salads and sandwiches. Yet as it happens this new type of food is just like unhealthy as any of their other sandwiches, but because of good marketing savvy that McDonald's has employed, people do not know that this food is even worse for you as the next item on the menu.
Regardless of what business you're in, it is usually smart to possess a solid marketing department on your payroll because through this very department is the ticket to your consumer. If the consumer doesn't believe your product is essential, then you are dead in the water. McDonald's has realized this and brought full advantage if it. Using economic principals McDonald's continues to be able to capitalize on its marketing campaign.
Economists who study industrial organization divide markets into four types-monopoly, oligopoly, monopolistic competition, and perfectly competition. McDonald's is monopolistic competition. Monopolistic competition, like oligopoly, is a market structure that lies between your extreme cases of perfectly competition and monopoly. But in contrast to the only several sellers within the oligopoly market, there are lots of firms competing for the similar group of customers in monopolistic competition. Each firm produces a product that is at least slightly different from the ones from other firms. Thus, instead of being a price taker, each firm faces a downward-sloping demand curve. And corporations can enter (or exit) the market without restriction. Thus, the number of firms in the market adjusts until economic earnings are driven to zero.
Like other kinds of firms, McDonald's aims to increase profit. Profit is a firm's total revenue minus its total cost. Total revenue is the amount the firm receives for that sale of their output and total cost is the amount the firm pays to buy inputs. Therefore, we are able to increase gain increasing total revenue, by decreasing total price, or doing both.
Here are two interesting approaches that McDonald's used and is testing to increase its profit. The first one is outsourcing of workers. When you take orders through drive-through windows, the workers who you are speaking with aren't the ones in that franchisee, however the ones who're in India. When you finish taking orders, they will type your orders into computers and then the orders are automatically delivered to the franchisee where you stand now in. Two destinations are connected with software program. It does not need to hire the workers to take order in the franchisees, where the workers' wages are high. It hires employees in India where the wages tend to be lower than other countries. Therefore, McDonald's can help to save a lot of your buck to workers.
The 2nd approach is applying automatic order-taker machines. McDonald's is working on it. Two prototype ordering kiosks are already in tests at the company's food-research laboratory in suburban Chicago. And one McDonald's franchisee in Wyoming, Mich., outside Grand Rapids is testing another. The kiosks do a lot more than save money on live staffers. Additionally they give customers an electronic push to order more. It asks if customers want to "Super Size" a meal-that is, buy one with increased French fries and a bigger drink. The equipment also suggests ordering a dessert.
One retired Canadian McDonald's franchisee, who independently installed automated devices in the past, found that the average automated order was $1.20 larger than that placed with employees. Mr. Berg installed the ordering kiosk in the restaurant's Play Place like a service to parents who don't wish to leave their kids to order lunch. Instead, they simply step-up towards the machine, a colorful box a bit smaller than a telephone booth, make their meal selections on the touch-activated screen and insert money to cover the meals. An employee brings their order and their change to them. Ms. Howard, the chain's spokeswoman, stresses the whole idea of automation remains an experiment. "It's still at the start of the game to understand if the works," she says. "We need to visit how this integrates with our operations behind the counter."
There are many other approaches and techniques that McDonald's is applying. If then, what is the result of these efforts? From 1996 to 2006, in 11 years, the McDonald's total revenue is nearly always rising in straight line. But in 2001 and 2002, it is not that great. In 2001 and 2002, its net gain drops significantly. Probably the most important reasons is its public image like a purveyor of fatty, unhealthful food with growing worry about obesity. It produces a fourth-quarter 2002 loss of $343.8 million-the first quarterly loss in McDonald's 38 years as a public company. However, totally when compared with its two competitors-Wendy's and Burger King, McDonald's, this multinational corporation has higher total revenue and net income.
McDonald's has shown the world that it features a winning technique for providing its customers with inexpensive food in a short time. Nevertheless the jobs that it provides the average employee are not satisfactory plus they don't provide employees with practical knowledge for other working environments. McDonald's has created many jobs that lots of people are pleased to have, and McDonald's continues to be able to open many new restaurants due partially to the brilliant marketing. Although McDonald's serves many good purposes in society its harmful practices in certain areas of the company lead us to conclude that McDonald's includes a largely negative impact on many countries, especially America.
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