Performance Appraisal Systems in Red Square Industries - Free Essay Example

Sample details Pages: 8 Words: 2497 Downloads: 6 Date added: 2017/09/13 Category Advertising Essay Did you like this example? Title Page Performance appraisal systems in Red Square Industries Executive Summary The Red Square Industries implemented performance appraisal system. This report evaluates the current appraisal system and provides implementable solution to the problem. HR director analyses the advantage of the current performance appraisal system in terms of grading, discriminating on basis of performance, rewarding performance and performance appraisal record. Next, he analyses the disadvantage of the appraisal system in respect of lacking top management commitment, leniency bias, poor communication, violation of EEO and static performance appraisal. Following are the recommendations that the HR director provides to the CEO: †¢Top management commitment †¢Prevention of leniency bias †¢Dynamic performance appraisal †¢Enhancing communication †¢Legal treatment in performance appraisal system †¢Employees feedback Table of Contents Pg Title page Executive Summary 2 Table of contents 3-4 1. 0 Introduction 5 1. Background 5 1. 2Aims 5 1. 3Scope 5 2. 0Literature review 5 3. 0Analysis 6 3. 10 The advantage of the performance appraisal systems in Red Square Industries 6 3. 110 Major type of performance appraisal systems 6 3. 20 Performance appraisal objectives 6 3. 130 The performance appraisal record 7 3. 20 The disadvantage of the performance appraisal system in Red Square Industries 7 3. 21 Lack of top management support 8 3. 22 Leniency bias 8 3. 23 Poor communication 8 3. 4 Violation of EEO requirement 8 3. 25 Static performance appraisal 9 3. 30 Implementable solution 9 3. 31 Management commitment 9 3. 2 Prevention of leniency bias 9 3. 33 Considering the validity and accuracy of the performance system 9 3. 34 Dynamic performance appraisal 9 3. 35 Enhancing communication 10 3. 36 Legal treatment in performance appraisal system 10 3. 37 Employee feedback 10 4. Conclusion 10 Reference list 1. 0 Introduction 1. 1 Background The Red Square Industries implemented performance appraisal system. At same time, it has been troubled for some time by the apparent lack of effectiveness of the appraisal system. 1. 2 Aims The purpose of the report is to evaluate the current performance appraisal system in terms of advantage and disadvantage. As well as, provide the relevant solutions to overcome the problems. 1. 3 Scope The pros of the current performance appraisal system consist of the grading, discriminating performance, rewarding performance and the performance appraisal record. Don’t waste time! Our writers will create an original "Performance Appraisal Systems in Red Square Industries" essay for you Create order In turn, the cons of the current system include that lacking top management commitment, leniency bias, poor communication, violation of EEO and static performance appraisal. Finally, the recommendation comprises with top management commitment, prevention of the leniency bias, dynamic performance appraisal, considering the validity and accuracy of the performance system, enhancing communication, legal treatment in performance appraisal system and employee feedback. 2. 0 Literature review The current performance appraisal system brings some advantages to Red Square Industries. For example, the rewards are corresponding to the related contribution, which is supported by Khan, Farooq and Ullah (2010). They state that the change in reward affects the change in the motivation and performance of employees. At the same time, there are some disadvantages of current performance appraisal system existing in the Red Square Industries. It could reduce the feeling of satisfaction and organisation commitment by the certain types of performance (Stathakopoulos 1997) when lacking top management commitment. In addition, the leniency inhabits the delineation of the rating quality (Frah and Dobbins 1989). What is more, the employees belong to the union are more lenient and only those rated 1 2 get bonus payments, which against the opinion that the EEO in performance appraisal is the minimum requirement (‘EEO is everyone’s responsibility’ 1981). The unfair treatment also creates ill feeling to the employees that may ‘doom the most carefully constructed appraisal system’ (Jawahar 2007). Finally, employee feedback is one of the recommendations. Nickols (2007) states that the Performance appraisal provides employees with feedback regarding their performance to reduce errors and waste, increase quality and enhance employee motivation, commitment. . 0 Analysis 3. 10 The advantage of the performance appraisal systems in Red Square Industries 3. 110 Major type of performance appraisal systems Stone (2010) expresses that performance appraisal systems focus on the individual employee. To judge the performance of staff, the organisations choose several performan ce systems, including grading. 3. 111 Grading Grading system could describe workers’ performance clearly in specific performance levels, comprising with superior, good acceptable, marginal and unsatisfactory (stone 2010). Stone (2010) further argues that the forced ranking distribution is the refinement of the grading system, which places the fixed percentage in each grade. For example, the Red Square Industries adopt the forced distribution as its appraisal system. Particularity, the top 10 per cent are superior performers, the next 25 per cent are good performers, the next 45 per cent are acceptable performers, the next 15 per cent are marginal performers and the bottom 5 per cent are unsatisfactory performers. As a result, the evolution expresses the performers and non-performers. At the same time, it helps managers to overcome the problem that overrating, underrating or rating people as average (stone 2010). Also, it requires managers to take more time to consider about their employees (stone 2010). 3. 120 Performance appraisal objectives 3. 121 Discriminating on the basis of performance The organisations must distinguish the subordinates who perform well or not in the company. Stone(2010) notes that the inadequate performance can not exist in the organisation. He further stresses that the failed performers would be supplied opportunity and assistance to improve their grads, but they will be transferred, demotion or termination if they can not match the requirement. For instance, Red Square Industries give employees rated 5 roughly 3 to 6 months to improve their performance by training before they get sack. Grote (2000, cited in Stone 2010) notifies that the organisation like’ Microsoft annually weeds out about 5 per cent of its employees through its performance appraisal system’. The up or out program brings great benefits to the organisation. it not only motivates those well- done performers by discriminating the good performers and non-performers, but also it saves much potential costs if they continue keeping the poor employees , such as dissatisfy the customers, damage public images, lost sales (stone2010). In a word, the Red Square Industries discriminate staff, which is one of performance appraisal objectives. 3. 122 Rewarding performance Most organisations would reward the employees who have contributions. Stone (2010) indicates that based on the objective measure of performance like forced distribution system or performance based discrimination, the organisations make decisions that who is being rewarded. In Red Squared Industries, the salary increases and bonus payments are performance related. Those rated 1,2 and 3 would receive relevant salary increase. Those rated 1 or 2 would get bonus payments. The employees rated 4 and 5 are given legally required increases. As Murray (2005, cited in Stone 2010) says that ‘if you deliver, you will get paid but if you do not deliver, you will suffer the impact of that’. As a result, the reward performance related system motivates the staff to contribute and approach good performance. In addition, the different level of contribution, the rewards that staff receives are correspondingly different. The bonus payments are only rewarded to those rated 1 or 2. Those rated 4 and 5 only get legally required salary increases. Stone (2010) points out that the excellent performers with higher rewards and the lesser performers with least rewards could ‘encourage a performance-oriented behaviour and a performance-oriented culture’. Therefore, the change in reward affects the change in the motivation and performance of employees (Khan, Farooq and Ullah 2010). Employees may lose their passions and give up forwarding if everyone gets the same awards no matter how good the performance is. In other words, the top performers would be motivated to keep remaining their excellent contributions while the bad performers would be encouraged to do better due to the incentive of the high performance related awards. 3. 130 The performance appraisal record The record is the document that records the ’performance rating and comments for employees’ (stone 2010). As we know, the Red Square Industries do make the performance appraisal record to note down the distinction of subordinates’ performance. The record could largely help the organisation identify those who play important role in achieving the objective of the organisation. 3. 20 The disadvantage of the performance appraisal system in Red Square Industries 3. 21 Lacking top management support The factor that lack of top management support is the barrier to the effectiveness of performance appraisal schemes (stone 2010). Stone (2010) supports his opinion that ‘the best CEOs never hesitate to fire when they must’. However, the managers of Red Square Industries are reluctant to fire trouble some non-performing employees who belong to a union. As well as, they refuse to rank anyone as a 4 or 5. They fail to follow the grading system and discriminate on the basis of performance. Otherwise, the managers send the wrong signal to employees that they do not need to worry if they do not perform well (stone 2010). What is worse, it could reduce the feeling of satisfaction and organisation commitment by the certain types of performance (Stathakopoulos 1997). 3. 22 Leniency bias Leniency bias occurs when manager rates their employees either consistently high or low’ (stone2010). For example, some managers argue that their department is different. They say that most of their employees are stars or starlets and refuse to rank anyone as a 4 or 5. Leniency bias is one of the aspects that cause rating errors. It makes the appraisal system become inaccurate and nonsense (stone2010). Farh and Dobbins (19 89) further support Stone’s perspective, they say the leniency inhabits the delineation of the rating quality. 3. 23 Poor communication Negative communication and participation inhabit development scheme, hence prevent the appraisal process (Lansbury 1998, cited in Stone 2010). In Red Square Industries, when a ‘star’ is perceived by co-workers as really belonging to another ranking group, they are reluctant to communicate and cooperate. What is worse, the rating system fosters envy and negative competition. The typical attitude is that if they are hothots, let them solve the problem. As a result, it stops employee development that is the aim of performance appraisal. 3. 24 Violation of EEO requirement EEO requires ‘performance appraisal must be job-related and non-discrimination’ (stone 2010). However, employees in Rea Square Industries rated 5 who belong to a union are treated more leniently in terms of termination and pay increases than the employees who are not union members. Additionally, those with a 1 rating are referred to as ‘star’. Those with a 4 or 5 rating are called ’dog’. Employees rated 3 are called ‘workhorses’. What is worse, bonus payments are only given to those rated 1 or 2 and those rated 4 or 5 are only given legally required increases. Many managers claim that the forced distribution of employees creates too much ill feeling due to the unfair treatment. Jawahar (2007) says that ‘an unfavourable reaction may doom the most carefully constructed appraisal system’. What is more, EEO in performance appraisal is the minimum requirement (‘EEO is everyones responsibility’ 1981). 3. 25 Static performance appraisal The appraisal program is not successful among the managers and workers in the Red Square Industries. Mohrman (1995, cited in Stone 2010, p. 295) says that ’they are concerned with the past performance rather than with improving future performance’. People look back where they have been and do not attempt to explore how to grow and develop. For instance, those rated 3 become unmotivated, because they regard their rating as meaning they are only average. The static performance can not match the aim of the performance appraisal of the employee continual development. 3. 30 Implementable solution 3. 31 Management commitment To succeed the performance appraisal system, it requires the management commitment (Regel 1987, cited in Stone 2010). Regel (1987, cited in Stone 2010,p. 04) further states that ‘all members of the management team need to understand appraisal’s purpose and should agree that it is critical for management to participate in and support the system’. Therefore, if the management commit to the appraisal system, it will work. 3. 32 Prevention of leniency bias Due to leniency bias, the rating error generates. Therefore, the managers should prevent it to create the fair and accurate appraisal system. T he managers of Red Square Industries should correctly distinguish the performance. As a result, the appraisal system would not be nonsense and it ould facilitate employees to grow and develop. 3. 33 Considering the validity and accuracy of the performance system Sometimes the rating will not reflect the actual judgement, so it requires the manager to recognise this (stone2010). Stone (2010) further illustrates that ensure performance related are being assessed to achieve validity and make sure generating the consistency results to reach reliability. 3. 34 Dynamic performance appraisal Stone (2010) explains this system is not just judgement about performance, but the motivation to employees toward new goals. The Red Square Industries workers should learn to improve themselves relying on the rating system. Compared to the static program, the dynamic program is ‘more likely to be effective, credible and sustainable’ (Anderson 1992, cited in Stone 2010, p. 315). 3. 35 Enhancing communication Positive communication develops the employees themselves and facilitates job satisfaction (Stone 2010). The workers in the industries should cooperate and well communicate to each other, no matter others’ rating. Help each other and improve together to accomplish the organisational goal. 3. 6 Legal treatment in performance appraisal system Get rid of the call like ‘dogs’ or ‘workhorses’ which refer to those rated a 5 and 4 respectively, which will eliminate the ill feeling of employees. Furthermore, the fairness of the appraisal system would encourage people to participate to the organisation. Legal treatment is the desire of employee. Also, it is the proces s of EEO. 3. 37 Employee feedback Performance appraisal provides employees with feedback regarding their performance to reduce errors and waste, increase quality and enhance employee motivation, commitment (Nickols 2007). There are pros and cons of performance appraisal system in Red Square Industries. Employee feedback could help to minimize the disadvantages of the appraisal system. 4. 0 Conclusion In a word, the current performance appraisal system presents advantages in the Red Square Industries. Firstly, the grading system describes the specific performance level, which helps managers to overcome the overrating, underrating, rating people as average and requires managers to take more time to consider about their employees. Secondly, discriminating performance leads to motivate those well- done performers and save potential costs. Thirdly, reward performance results in motivating contribution and good performance. Finally, performance appraisal record helps to identify those who play important role in achieving the objective of the organisation. There are also some disadvantages of the current performance appraisal system. Firstly, it lacks top management commitment, which leads to send wrong signals and reduce the feeling of satisfaction to employees. Secondly, the leniency bias causes rating errors and inhabits the delineation of the rating quality. Thirdly, poor communication stops employee development. Fourthly, the Red Square Industries violate EEO which is everyone’s responsibility. Last but not least, the static performance appraisal can not match the aim of the performance appraisal of employee continual development. Finally, the solution comprises with top management commitment, prevention of the leniency bias, dynamic performance appraisal, considering the validity and accuracy of the performance system, enhancing communication, legal treatment in performance appraisal system and employee feedback. Reference list ‘EEO is everyones responsibility’ 1981, Management Review, Vol. 70 Issue 3, (online ebscohost). Farh, JL Dobbins, GH 1989, ‘Effects of self-esteem on leniency bias in self-reports of performance: A structural equation model analysis’, Personnel Psychology, Vol. 42 Issue 4, p835-850,(online ebscohost). Jawahar, I 2007 ‘The Influence of Perceptions of Fairness on Performance Appraisal Reactions’, Journal of Labor Research, Vol. 28 Issue 4, p735-754,(online ebscohost). Khan, KU, Farooq, SU Ullah, MI 2010, ’The Relationship between Rewards and Employee Motivation in Commercial Banks of Pakistan’, Research Journal of International Studies, Issue 14, p37-54, (online Ebscohost). Nickols, F 2007, ‘performance appraisal’, Journal for Quality Participation, Vol. 30 Issue 1, p13-16, (online ebscohost). Stathakopoulos, V 1997, ‘Effects of Performance Appraisal Systems on Marketing Managers’, Journal of Marketing Management, Vol. 13 Issue 8, p835-852, (online ebscohost). Stone, RJ 2010, Managing Human Resources, 3rd edn, John Wiley Sons, Milton.

Child Marriage Is A Growing Problem - 1784 Words

Most girls dream of their wedding from a very young age, from meticulously planning each detail to fantasizing about walking down the aisle. But, for many girls across the world, their wedding day is something to dread. In many cases, these girls are forced to marry men much older than themselves, sometimes even by three or four decades. The International Center for Research on Women defines child marriage as, â€Å"a formal marriage or informal union before age 18† (np), and although rarely mentioned, child marriage is a growing problem worldwide. The United Nations Populations Fund states, â€Å"In developing countries, one in every three girls is married before reaching age 18. One in nine is married under age 15† (unfpa.org). Young brides who are put in this terrible situation face tremendous mental and physical risks and often die from the abuse they receive from their husband. 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Journal of Academic Research in Business †MyAssignmenthelp.com

Question: Discuss about the Journal of Academic Research in Business. Answer: Introduction: Strategic thinking is the ability of an individual that determines the process of his or her thinking, how he or she evaluates and develops plans for future (Hughes Beatty, 2005). Strategic thinking is regarded as the one of most effective tool that a business individual should possess. Most business leaders apply strategic thinking in order to assess any situation and taking any decision accordingly. It is the ability that includes all the critical skills, which helps a business personnel in making a decision confidently. Certain abilities are there through which one becomes able to think strategically (Mastering Strategic Management, 2018). The ability to think strategically requires certain skills. For instance, a person requires having a clear vision in order to make long-term plans. Additionally, ability to take risks helps one to achieve the skill. I believe I possess certain qualities of a strategic thinker such as analytical approach towards situations and challenges, ability to communicate with others, the decision making ability, leadership quality and problem solving ability (Tovstiga, 2015). Among these essential qualities of a strategic thinker, I believe my strongest strategic thinking skill is the ability think analytically. As strategic thinking refers to the ability to set a goal for an organization, thus, the analytical approach plays a crucial role in possessing the qualities of strategic thinking. A person working in the area of strategic thinking needs to think analytically in order to examine a business of the organization. The ability of analyzing the market and then setting the plan as what initiatives or steps are required to be taken by the organization is considered as the analytical ability of one. I consider my fear of taking risk is my weakest skill of strategic thinking that I need to work on and improve. Risk taking is the critical element of strategic thinking. A strategic thinker becomes successful if only he or she takes the risk in terms of taking the initiative for the growth of his company (Tovstiga, 2015). in some cases, business leaders are to take such steps which have never been applied in business. The ability of risk-taking helps one learn more. As per my experience, I generally, avoid taking risks out of the fear that it might fail. Additionally, the fear of being criticized by other is another reason why avoid taking risks. However, I feel that I need work in order to improve my ability in terms of taking risks. Certain measures can be mentioned in order to improve the skill of thinking strategically. One of the significant ways through which strategic thinking can be improved is observation. Observation makes enable one to not only in applying analytical approach, but it also helps in having the vision to make long-term plans. As analytical thinking includes evaluation of various aspects before making a decision, it enables one to become confident. Meanwhile, it also allows the person in taking risks (Abbas Khali, 2016). As mentioned earlier, the risk-taking ability is my weakest strategic thinking skill. Therefore, in order to become a risk taker, I need take experimental approaches so that I can get rid of the fear of being a failure. References Abbas, A. A. H., Khali, H. H. (2016). Effect of the Empowerment Leadership's on Job Involvement Reinforcement through a Mediator Role for Strategic Thinking Skills.International Journal of Academic Research in Business and Social Sciences,6(6), 189-220. Hughes, R. L., Beatty, K. C. (2005).Becoming a strategic leader. John Wiley Sons. Mastering Strategic Management. (2018).www.saylor.org. Retrieved 10 April 2018, from https://www.saylor.org/site/textbooks/Mastering%20Strategic%20Management.pdf Tovstiga, G. (2015).Strategy in practice: A practitioner's guide to strategic thinking. John Wiley Sons.

MCDonalds free essay sample

Strategy and Repositioning the Brand McDonald’s in India Sameer, Sharanbir Kaur Abstract- Despite global slowdown, Indian economy is resurgent and offers fresh opportunities as well as challenges to global players. McDonald‘s still treats the Indian market as one of their young markets although what they have achieved in 15 years here, it would usually take them 25 to 30 years in another market. McDonald‘s philosophy of Quality, Service, Cleanliness and Value (QSCV) is the guiding force behind its stellar service to the customers. However there is still a huge potential in the Indian food market that remains untapped in terms of family restaurants, quick service restaurants and breakfast eateries. Coming in the wake of these, their rebranding effort requires much more than a mere change of the logo or signage. There is a need to critically evaluate the right marketing mix. The article is focused upon assessing the marketing efforts in India in terms of positioning of McDonald‘s. We will write a custom essay sample on MCDonalds or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Index Terms- Rebranding, Repositioning, Demography, Marketing Mix I. FAST FOOD INDUSTRY IN INDIA T he Indian fast food industry has evolved over time and always has been in line with the needs of people of all ages and segments. There are enterprises which scale from one room outlet to a chain having hundreds of outlets like McDonalds in India. As per new research report ? Indian Fast Food Market Analysis? , India is blessed with one of the fastest growing fast food markets in the world. The Indian fast food market is growing at an annual growth rate of 30-35%. Almost all big fast food brands of the world have succeeded in making their presence felt in the country and most of them posting an appreciable growth. Although the market has witnessed robust growth in the past couple of years, it remains largely under penetrated and concentrated in the metropolitan cities. However, there is large room for growth in tier-II cities, tier-III cities which are mostly untapped. Therefore, the future of Indian fast food industry lies in masses that live in tier-II and tier-III cities. In 2013, the global fast food market is forecasted to have a value of $200 billion, an increase of 29. 3% and a volume of 94. 7 billion transactions, an increase of 10. 4% since 2008. The consumer spending on processed food has increased at an average rate of 7. 6 per cent annually from 2008 to 2010 and this is expected to rise at an average of around 8. 6 per cent until 2012, according to a report by Assocham. Almost all big fast food brands of the world have succeeded in making their presence felt in the country and most of them are posting appreciable growth. It is estimated through the Euromonitor International and Credit Suisse Emerging Consumer Survey, that the average Indian spends just $ 11 as compared to his Chinese counterpart who would ideally spend $ 20 on fast food. Yet , if we see the Indian spending on food in totality , they spend 23 % of their earnings on the same while the Chinese spending is 20 %. So, the inference that can be drawn is that owing to the eating pattern of Indians they prefer to eat at home and would spend on cooking ingredients over fast food. However, this does not spell good news for the industry. It is set to witness the entry of new fast food players that plan to hit the Indian market with a vengeance with international giants like Dunkin Donuts and Starbucks being amongst them. II. THE COMPETITION People prefer fast food because its cheap, easy to prepare, and heavily promoted. India is a developing country with 2 percent of organized and 98 percent of unorganized sector. So most of the fast foods that came into Indian market as India has a high growth in every sector. Major players in fast food in India are: McDonald’s KFC Pizza Hut Dominos Cafe Coffee Day Barista More than 75% of McDonalds restaurants worldwide are owned and operated by independent locals. McDonald‘s product line in India is almost similar to other burger chains with a dominant Indian flavour. Perhaps, it would be correct to say that their only similarity with their foreign outlets is that they have French Fries and still use buns. Examining the immense Indianzation they have attempted in their menu here it wouldn‘t be surprising to see Indian Chapatis in place of buns. Their current offerings reflect the same. www. ijsrp. org International Journal of Scientific and Research Publications, Volume 2, Issue 9, September 2012 ISSN 2250-3153 2 Table I : Present Menu for McDonald’s India Menu Ranges Burgers and other Bites Spicy Delights McSpicyPaneer ExtraValue Meals Chicken McNuggets Meal McAloo Tikki Happy Price Menu Breakfast Menu Favourites Sausage McMuffin with egg French Fries McAloo Tikki Happy Meal Meals Source: McDonaldsIndia. com Desserts Big Spicy Paneer Wrap Filet O Fish Meal Maharaja Mac Meal McVeggie /McChicken Meal Chicken McGrill Beverages McSwirl Iced tea/ Cold Coffee Minute Maid Pulpy Orange/ Cappucino/ Tea Soft Serve (Strawberry /Chocolate) Veg Supreme Veg Pizza McPuff Veg McMuffin Sausage McMuffin Pancakes Filet O Fish Chicken Maharaja Mac Chicken McGrill Meal McChicken/ McVeggie McVeggie Meal McFlurry McChicken meal III. BUSINESS MODEL The Business Model of McDonald‘s is a franchise-based model coupled with strong corporate branding. The focus is on the branding of McDonald‘s as a globally accepted service provider with strong customer perception about: www. ijsrp. org International Journal of Scientific and Research Publications, Volume 2, Issue 9, September 2012 ISSN 2250-3153 3 Happy Employees means Happy Customers McDonald’s Efforts of repositioning its Brand-Recently, McDonalds management has decided to change itsstrategies. They now want to provide not only a place to sit and eat but also an experience that can be enjoyed by their customers. Figure 1: The Service Marketing Triangle Zeithaml and Bitner (1996 ) McDonald‘s realized very early in their business that in order to achieve happiness amongst customers;the possible route is through happy, motivated and committed employees. In accordance with this they played on the customer first strategy. Even in India, their efforts clearly indicated that they were keen to understand the Indian consumer. Hence they adapted themselves to tickle the taste buds of their Indian customers to become a brand that enjoys a very high brandrecall. Therefore they focused on internal as well as external marketing. The level of importance has changed to be in the following order (the most important people arenow at the top). Corporate Branding The marketers are shifting the branding efforts from their product brands to a more holistic corporate branding . The reason for the shift can be traced to the belief that, it is the corporate image that carries a great impact on the buyers who are more aware and more exposed to media coverage on various issues be it environmental responsibility, being corporate social responsibility or be it responsibility towards health of future generation. McDonald‘s describe a corporate branding framework that is based on three elements: Figure 2: McDonald’s Service Pyramid Figure 3: Corporate Branding Source: Hatch and Schultz (2003)), â€Å"Bringing the Corporation into Corporate Branding†, European Journal of Marketing, The recent McDonald‘s rebranding strategy is a part of this thought and vision. McDonald‘s road to success has not always been rosy. They have been at the receiving end of the media‘s onslaught. There was a huge uproar in US after media exposure against McDonald‘s unhealthy menu that was affecting the nation and leading it to a generation suffering from obesity and heart diseases among many more ailments. There were employment issues internally which showed that they did not treat their workers well. Hence they assessed their strategies again and came up with new objectives that strengthened their previous aims and gave a new direction to them as well. www. ijsrp. org International Journal of Scientific and Research Publications, Volume 2, Issue 9, September 2012 ISSN 2250-3153 4 McDonald’s Marketing Efforts Over the Years – Proactive Rebranding – A Proactive strategy includes a new line of business or market that does not conform to the existing brand identity. When McDonald‘s once referred to itself as Mickey D‘s to target kids in a commercial, it had just coined a new way of catering to an audience separate from its traditional family audience. Objectives of McDonalds Repositioning StrategyMcDonalds, the promise of American fast food anywhere in the world, has had to rethink and reposition its brand offerings in different countries. While some basic elements like Ronald were left in place the menu underwent an overhaul. For example, in India, the menu has no beef dishes since it is not considered religiously correct to eat cow‘s meat: there is the very popular McAlooTikki, a potato-based patty in burger buns; the Big Mac is replaced by the Maharaja Mac, the Big Mac in chicken; there is also the paneer (cottage cheese) McVeggie burger. The Italian McDonalds has a special coffee spot. To celebrate its 20th anniversary in China, McDonalds rebranded under the Make Room for Happiness campaign. They had all you want coffee refills; Wi-Fi and a more modern restaurant design were unveiled. This was done exclusively for China, where McDonalds positioned itself as a place to relax away from the high demands of the average Chinese‘s life. Its Im Lovin It slogan made way for Make Room for Happiness, and McDonalds became the place where the stressed young Chinese can spend quality time rejuvenating after working for long hours. The result was an 18% increase in sales, and an increasing legion of fans that is fueling McDonalds growth in China. McDonald’s Changing Markets Changing Strategies Decades after its launch, the Big Mac is changing colours, literally. The worlds largest fast-food chain is letting go of its familiar red-and-yellow colours for more muted tones as it goes for its biggest and costliest revamp in the country, in line with its global strategy of attracting more adults. For the next generation of consumers McDonald‘s plans to cultivate a very different image from its existing one. After revamping 280 stores in various markets last year, McDonalds is now opting for the Tampa model and will spread that design to upwards of 800 locations this year — roughly triple what it did last year. The company is donning a new look when India is on its way of becoming a global hotspot for food retailers, with chains like Starbucks, Burger King planning to enter the country. Some McRemodel highlights include : †¢Redoing roofs The bright red roofs that have topped McDonalds for several decades are getting the heave, replaced with flatter, more conventional roofs. †¢Muting paint The neon yellows and reds common to the interiors and exteriors are becoming history, replaced with much more subtle oranges, reds, yellows and even greens. †¢Updating chairs Those industrial steel chairs are giving way to wooden chairs, colorful stools and, in some cases, vinylcovered chairs that resemble leather. Some stores will have larger lounge chairs similar to the kind you might expect to find in a coffee shop. †¢Doubling drive-through To ease lines inside and outside stores, many locations are adding second drive-through windows to speed up service. †¢Splashing colour McDonalds hasnt junked its familiar red and yellow colors altogether, but it is making them far less obvious. Instead of filling the restaurants with them, its splashing bright yellow and red here and there for effect. †¢Dividing dining areas The sea of tables and chairs is history in the remodelled stores. The new dining rooms are divided into separate eating zones for larger groups, eat-and-run customers and folks who want to stay and lounge. †¢Adding flat-screens TVs Large, flat-screen TVs — some playing contemporary music — are showing up in many locations, though fewer than half of the remodelled stores will display them. The new design makes the customer feel more comfortable and at leisure to enjoy their surroundings. This offers to McDonald‘s two key opportunities- firstly, to shift to another www. ijsrp. org International Journal of Scientific and Research Publications, Volume 2, Issue 9, September 2012 ISSN 2250-3153 customer base with high spending power and then to broaden their menu with offerings at a higher price point. Risks Involved When a global organization like McDonalds is going in for rebranding, a lot of financing is involved and the global impact is huge. Though the step taken by the managers of McDonalds is well calculated but speculations are on till the time it doesn‘t fair well in the market and most importantly to the customers. This kind of rebranding in the Indian Food Industry can help change the image of McDonald‘s completely like in the case of Pizza Hut, which has become a part of fine dining segment, which it was not earlier. The Indian consumer is considered to be loyal but still the risks involved are high. 1. A trade-off between what is expected from a company and what a company has to gain from the consumers One can see that one facet raises the scale while the other weighs it down making it a tough task. In order to sustain the balance, it requires big investments which will surely add to the costs incurred in the rebranding. If the rebranding falls flat, it will result in a major profit decline. 2. Store positioning McDonald‘s needs to have the most current information to determine if present outlets are cannibalizing each other‘s business. To achieve this McDonald‘s team willneed comprehensive, demographic data of India along with both theirs and competitors‘ outlets. IV. CONCLUSION The task is mammoth as McDonald‘s tries to keep up in the race for a piece of the great Indian pie . As per Forbes , McDonald‘s India operations contribute 30 % to their sales which is a considerable share. It might become imperative to create a Point of Difference to fight it out in the Indian market as all fast food brands have modelled themselves on local flavours now , the latest being KFC with its ? Streetwise‘ menu. While McDonald‘s does have the edge with its excellent supply chain and distribution network the customer ultimately does become the king with low brand loyalty in this category being the generalisation . The rebranding effort on their part seeks to bring 5 in a new flavour to their brand offering but what remains to be seen is whether they are still able to strike a chord with the customer. ACKNOWLEDGEMENT We would like to express our heartfelt gratitude to the people who assisted us in this endeavour of ours. First and foremost , we would like to thank Mr. Praveen Gupta, HOD , Lal Bahadur Shastri Institute of Management for his valuable time and support. Also, a special mention to the staff of McDonald‘s Jor Bagh, Delhi who was very patient and helpful during our visits to the outlet for the study. REFERENCES [1] [2] [3] [4] [5] Lovelock,Wirtz and Chatterjee ,? Services Marketing ? , in Plastics ,Sixth Edition ,India , Pearson , 2010 , pp. 66-98 , pp. 340-372 Aaker, D. A. (2004b), ? Leveraging the Corporate Brand? , California Management Review, 46 (3), pp. 6-18 Bijoor, H. , ? A Time to Rebuild? , Business India, February 20,2011 pp. 48. Hatch, M. J. and Schultz, ? Bringing the Corporation into Corporate Branding ? , European Journal of Marketing, 2003, 37 (7/8), pp. 1041-1064. Jacquelline, B. and Kline,S ,? From McLibel to McLettuce: Childhood, Spin and Re-branding? ,2007 , Society and Business Review, 2(1)