November 20, 2008

“We provide food that customers love.” – Ray Croc

“We provide food that customers love, day after day after day. People just want more of it.”
Ray Kroc

Whatever you think about McDonalds, their business model is successful.

Even though their menus have had to keep up with modern times and become a little more ‘healthy’, they remain a firm favorite with families and young people especially.

Of course, their food probably won’t win any Michelin stars, nor is that what their customers want. It’s being inexpensive, consistently acceptable and quick, that their customers want.

They need to know that what they buy will be what they expect and without surprises.

Parents, for example, don’t want to take their kids somewhere that has strange foods (escargots maybeL), that maybe the kids won’t like, or at silly gastronomic prices.

Regular customers know that what they get will be what they expect, so surprise, risk and probably even fear are written out of the equation. No one wants to ‘fear the unknown’ when they step out for a quick, easy and inexpensive meal, however adventurous they are.

So, it’s about consistency, good value and speed. Customers want to know that when they go in there, any kids they have with them will eat the food and have a good time.

In a fun atmosphere with edible food, McDonalds have made a huge difference to hot food retailing over the last 20 years, with a model that has been replicated many times over. A franchiseable deal that is easy to reproduce, and to make their business thrive.

In ‘The E-Myth’, Michael Gerber analyzes the franchise model and recommends it as a way of doing business that anyone can look closely at, whether there is a desire to franchise it eventually or not.

There is something in ‘The E-Myth’ for everyone who runs a business. If you want it more managerially focused, check-out ‘The E-Myth for Managers’ (also by Michael Gerber), which focuses more closely on the challenges that managers experience in the modern era.

Filed under Great Quotations, Managing Me by Martin

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Listening Skills Revisited – 5 – It’s a Motivator Too

Your great listening skills also helps to motivate your people perform to their best.

Realistically speaking if your employees are happy and feel important and fulfilled in their work, then tangible rewards like pay raises, bonuses etc. take a back seat.

Supporting the organization that shows they care (through your excellent listening skills!) becomes their top priority.

By involving them in the working of the company as much as possible, it provides them with a clear view of what lies ahead in terms of company plans, future aims and goals.

Filed under Developing Your People, Managing Me by Martin

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The Purpose of Strategic Thinking – The Leader’s View

The basic purpose governing strategic thinking is to be able to construct an overarching and defining plan or strategy that would not only provide a focused and coherent framework for crucial policy decisions regarding direction of the business and resource utilization, but also a sufficient and clear guideline for the continued development and growth of the organization.

One of the most important purposes of strategic thinking, is out-thinking your competitors and keeping ahead of your rivals.

While engaged in any strategic thinking process, a business team usually has to try to consider as many consequences and eventualities that may arise from their own actions aimed at improvement or growth. By minimizing adverse outcomes that could destroy ambitious plans.

In this process, by bringing together innovation, strategic planning and operational management, leaders attempt to develop as foolproof a business strategy as possible with a greater likelihood of success.

Filed under Blog, Building the Future by Martin

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