- Benchmarking is essential for measuring business performance and overall management of organization effectively. It considers as a tool for developing plan to improve entity’s activities.
- The present report is based on understanding different aspects of McDonaldsrelated to total quality management of business organization (Al-Tarawneh, 2014.) It is one of the largest fast food provider company of UK to a million people.
- In this regard, significance of bench-marking to gain entire management of firm can be determined. Including this, different processes related to implementing benchmarking practices are understood.
- Including this, organization's benchmarking against KFC can be determined through this study. Moreover, difficulties in raising practices are recognized (Al-Tarawneh, 2014.). Along with this, learners are able to learn solutions to overcome the issues occur to gain total quality management of firm efficiently.
Definition of Bench-marking
Bench-marking is the measurement tool that helps in measuring the policies, programs and products of an organization against set standards. It is the practice of an entity for making comparison between key metrics of operations with other competitor brand. Scientific management theory is the great concept that helps in analysing the economic efficiency, labour productivity of an organization. By this way firms like McDonalds can set benchmark by comparing its performances against the industry performance.
Reasons of Bench-marking
Small or big organizations both have aim to earn more profit and sustain in the corporate market for longer duration. There are several reasons for bench-marking:
- Improve productivity is one of the main reason of bench-marking in the
- For maintaining the relationship with clients is another reason for bench marking in the cited firm (Al-Tarawneh, 2014.)
- Addressing lacking points are another rationale of using this concept in the organization. So that management can make strategies to fill the gap and can improve their quality and performance(El-Wardani & Luyanage, 2015)
- To gain competitive advantage for increasing sustainability is another reason for bench-marking.
- As KFC is the biggest competitor of McDonalds,cited firm compare its products and services with the KFC and try to match the standards. McDonalds focuses more on healthy food and fast services whereas KFC focuses on the test and needs of consumers. KFC offers wide range of chicken food to the users whereas McDonaldsconcentrates on burgers and limited food items (El-Wardani & Luyanage, 2015). KFC services are fast but products are costly, on other hand McDonalds products are comparative of low price. KFC does not have home delivery services for the consumers but McDonaldsoffer this facility to its customers. So in this respect McDonalds needs to enhance its standards and it has to provide wide range of products to the consumers so that they get attracted towards the brand.
Benchmarking is considered as a best tool to measure business performance in total quality management tool that impacts on overall development of organization. However, under this process, strategic management of entity including financial position, production and distribution system, varieties of ideas are generated for better service quality and improving efficiency of McDonalds(Larkin, 2015). Therefore, as per proper management different aspects and organization’s effective tools are determined. It is helpful for increasing in customer satisfaction level that impacts on productivity and profitability of entity. In accordance to this, systematic management of business operations and positive environment of entity is gained. In addition, benchmarking tools to measure customer satisfaction level and cost per unit of measure and cycle time of product per unit measure. Thus, total quality management regarding entire business operations are considered through this measurement (Larkin, 2015)It creates different ideas and techniques for improving service qualities of products and organization’s effectiveness is obtained. Significance of benchmarking can be described as follows:-
Focuses on best practice to recognize next practices:- Benchmarking is interrelated with total quality management of McDonalds.
Helpful in continuous growth of organization:- Proper performance of business entity is obtained that impacts on regular development of company. It is interlinked with economic structure and overall business operations to improve efficiency(Dale, , 2015.). Therefore, benchmarking is considered as useful for rapid growth that affects productivity and profitability of McDonalds.
Maintains competitive edge:- There is actual position of specific company is determined through using benchmarking tool. For making place in market, competition is maintained for long term sustainability (Dale, , 2015.). Thus, it enhances strength for facing competition by recognizing market position related to customer satisfaction and performance of employees. Including this, product value and market position of firm is recognized through this competitive edge effectively.
Concentrates on performance measurement:- For analysing employees and business performance benchmarking plays crucial role that impacts on overall business operations. As per performance measurement, different ideas are generated for improving efficiencies. However, adequate organizational structure of McDonalds is created to implement business activities of retail sector organization(Mehta, & et., 2014)
Reasons for benchmarking:- Thus, benchmarking is significant for analysing business performance and actual business operations. It is helpful for comparing organization's activities with its competitive entity. Therefore, different ideas are generated for enlargement of entity as well increasing its efficiency. Hence, it is determined that benchmarking is crucial for enhancing productivity, profitability and varieties of strategies for making place in market for long term sustainability. It is useful for gaining high level of customer satisfaction.
Prerequisites required to benchmark
McDonalds needs to do market research and has to analyses the requirements of the consumers, accordingly it has to modify its products. Apart from this, cited firm has to analyses the strategies of KYC so that according to their planning it can set its strategies to get high returns (Mehta, & et., 2014)McDonald's focuses on Scientific management theory and looks upon the empiricism, work ethics, elimination of wastage, standardization. It operates its business in such manner so that it can meet with the standards and can sustain in the competitive world. It gives training to its staff so that they can get to know about new standards and can perform their work accordingly. It adopts new technologies so that firm can enhance its efficiency level.
Methods of implementation
Benchmarking practices can be implemented by proceeding following steps:-
Preparation and planning:- At first, preparation and planning is required for measuring entity’s position effectively(Talib, 2013) Through this process, actual position of firm and different strategies are prepared for total quality management of business organization. Need for benchmarking and its significance is obtained regarding methods to be followed for project accomplishment.
Data collection:- After determining need and characteristics of benchmarking, data are collected related to measurement of business performance of McDonalds (Talib, 2013). In this regard, different methods are used for benchmarking as well adequate systems are recognized for collecting information. Thus, data collection is related to choose appropriate solution and effective techniques to be implemented for organization’s effectiveness (Klee & Westgard, , 2014).
Data analysis:- interpretation of collected information is done through this system. It is crucial before implementing any action plan to recognize the planning procedures and preparing systematic steps to gain efficiency. In accordance to this, it presents benchmarks’ strength and weakness sustaining value. However, manager of the McDonalds recognizes company’s performance and prepares plan to create bridge for reaching out the set goals. It generates different ideas for better performance and implementing effective business operations. Thus, actual structural framework and business performance is determined through this step for competitive advantages (Klee & Westgard, , 2014).
Reporting:- Under this process, interrelated data are recorded and reported for present clear and easy way to obtain performance. Hence, accurate data are reported in systematic manner that impacts on further business operations (Nicholas, 2016). It plays effective role in understanding the different practices and improving performance of benchmark effectively. It is interrelated with increasing efficiency of McDonalds to create balance for business operations.
Learning from best practices:- In this process, for mutual benefit top performing entities share their best practices (Nicholas, 2016). Therefore, choosing the most appropriate practice remains helpful for benchmarking. It is required for bench markers to establish best practices for effectiveness of McDonalds.
Planning and developing action plans:- It is valuable for preparing strategies and its implementation to increase efficiency and enhance quality services of firm. It is beneficial for each and individual organization to improve effectiveness and enhancing performance at high level. It is useful for creating balance of bench markers and companies (Khanam, 2016)
Institutionalizing learning:- In this process, value and position of benchmarking is obtained. Therefore, positive and negative both aspects are emerged for measuring company’s performance regarding providing overall business activities. However, effective institutionalizing learning is determined for improvement and learning different things (Khanam, 2016). It influences McDonald’s business activities and various learning styles for improving working efficiencies of employees as well gaining high level of customer satisfaction towards goods and services provided by entity.
It influences overall business activities regarding business and competitive strategies for sustaining its place in market. In this regard, step by step different procedures are followed for strategic management and effectiveness of firm at high level (Macdonald.2016). Moreover, it is useful for creating positive environment and enhancing competitive strategies for making place in market. Including this, different tools and techniques are obtained for choosing best appropriate quality services of firm. In accordance to this, an effective organizational structure is created that presents strength and weakness of entity, thus, proper benchmarking and verities of ideas are generated for improving efficiency and taking competitive advantages effectively (Talib F. , 2013. ). Therefore, it is determined that applying benchmarking stages in systematic process leads to increase efficiency and increasing in demand. Along with this, systematic process leads to competitive strategies and impacts on its market position. Thus, different ideas are presented regarding coordination of employees and customer satisfaction of consumers that impact on productivity and profitability of firm. In this regard, systematic management of entire business operations is presented considers as total quality management. Hence, overall activities that form organizational structure is recognized through this process that affects benchmarking and business performance in monetary and non-economic terms (Macdonals. 2016). It is recognized that business and competitive strategies of firm can be obtained through this process system (Talib, 2013).
Challenges face by organization in bench-marking
As if company does not have proper knowledge and skilled person hen it would not be able to implement bench marking process successfully. That is the biggest challenge for the firm that prohibited them in this process. It enhances the cost of the McDonalds that is the challenge for the cited firm. Because for meet the standards cited firm will have to spend a lot amount in training and implementing new technologies (Talib F. , 2013. ). Apart from this, losing the originality is another challenge for the company because for meet the standards it will have to modify its products that can spoil its originality. It might be possible that loyal consumers do not like the modify products of McDonalds. It is very difficult for the management of cited firm to make employees understand about the new process, they resist the changes so it can be difficulty for the organization too.
The report is presented that benchmarking is helpful for improving effectiveness in business operations. However, it is required for understanding its different aspects regarding different aspects of business performance that forms organizational structure. In this regard, it is needed to be focused on entire series of firm that is interlinked with environment and market position of entity to gain long term sustainability in market. However, total quality management including business performance and different services provided by organization is analysed that provides different ideas for increasing market position and effectiveness of entity at high level. Thus, preparing strategies and planning procedures related to business operations are required for business as well competitive strategies. Thus, actual performance of firm is measured through this process to marketing, financing and different sectors’ growth. Hence, total quality management related to arrangement of entire business entity’s functions can be obtained those impacts on firm’s market position and system for production and distribution of goods. In accordance to this, recognizing business activities are helpful for implementation and improving efficiency for long term effectiveness of organization at large scale.
Though benchmarking is quite good for effectiveness of organization but it has some issues those impacts on management of business entity. In this regard, it is determined that management of overall activities are risky for maintaining good reputation in market. However, dis systematic transaction of goods is determined to reach out set target and improving qualitative services of firm. Including this, it is also remains risky for maintaining customer satisfaction towards goods and services provided by firm (Talib F. , 2013. ). In addition to this, employee’s performance a creating understanding sense considers as a difficult task for organization to meeting goals. Moreover, measuring business performances sometimes consider as inaccurate that impacts on overall business activities and operations of McDonalds. In addition to this, implementing benchmarking has to face many issues related to inaccurate data or information and fluctuate market structure. It impacts on business environment and different services of firm. It includes customer satisfaction level, balance of production and distribution system of goods, employee’s performance and several tools that affect management and different business operations. Along with this, it is also determined that changes in external environmental factor or uncertain changes affect business environment and strategy (Dale, , 2015.)
As per critical evaluation, obstacles are occurred in McDonalds related to benchmarking including internal focus, unrealistic time frame, poor team composition, improper emphasis etc. In this regard, varieties of problems are determined that disturb environment of entity. For example; lack of coordination of team members for efficiency and unsystematic management of business operations is obtained. However, improper time scale and inefficient team structure is determined that is against of organization's effectiveness.