Most established businesses have survival as an objective. It is due to the businesses often have relatively few customers, have to spend heavily an advertising to attract customers and may have relatively inexperienced managers. When McDonalds first entered the market they thought the first duty of the business was to survive. The guiding principle of business economics, in other words, is not the maxirnisation of profits; it is the avoidance of loss.
McDonalds needed to produce the premium to cover the risks inevitably involved in each of its operation up until today.The survival of a business when it first enters any market depends on making enough profit to make it worthwhile continuing with that business. Many businesses fold because the people they took loans off feel that they are not making enough profit to cover the efforts they are making and the risk they are taking. Most businesses nowadays feel that survival is being one of the main objectives before profit.
In the business world in the early twenty-first century the UK faced some rapid changes, as competition increased, and so on.To survive, the intelligent organisation adapts to this changing world. For example, in recent years as environmental legislation has become tougher, McDonalds have adopted greener approaches.
Some of the companies that have not done so have lost favour with consumers and governments and have disappeared or been swallowed up by other companies. Survival is about continuing to exist today, tomorrow and into the foreseeable future. Companies try their best to provide good and high quality services.Sometimes it is not as easy as it may look, meaning that companies or businesses cannot sometimes achieve this. The term ‘high quality’ is often mistakenly confused with ‘most expensive’.
Yet frequently the most expensive items are not the best quality. McDonalds use the term ‘quality’ to mean ‘producing a good or service to customer requirements’. Another way of defining quality is ‘fitness for purpose’. A high-quality product or service is therefore one that gives the customers what they expect or even more than they expect.McDonalds often talk about ‘delighting’ the customer.
Therefore, quality products and services has become a leading objective of modern business organisations. We live in a world in which the customer has considerable power. Customers can choose to visit one hairdresser or another, to buy one model of car or another and which college or university to take a course at.
The customer will choose which organisation to do business with on the basis of their ability to satisfy customer requirements.Hence the importance of quality is major according to McDonalds. They should use this emphasis and show respect for the customer. Of course, this notion of high quality is just as relevant for services as it is for products. For example, in recent years McDonalds have seen a rapid rise in the buying of their items through their drive through service whereby they would serve their customers whilst they are in their cars.
This is because many consumers prefer the convenience of buying these services directly from their car and eating on the way.