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Assignment of customer relationship management

Case study on CRM issues and their solution


Submitted to:
Professor Muhammad Ali
Submitted by:
Sadia Sabir BC14-002
Iqra Sultan BC14-038
Areesha Akram BC14-051
Fatima Rahim BC14-058
Khadeeja Qureshi BC14-072

Hailey college of commerce,


University of Punjab, Lahore.
Opening paragraph
McDonald's is the world's largest restaurant chain by revenue[6], serving over 69 million customers
daily in over 100 countries[7] across approximately 36,900 outlets as of 2016.[8] Although
McDonald's is known for its hamburgers, they also sell cheeseburgers, chicken products, french
fries, breakfast items, soft drinks, milkshakes, wraps, and desserts. In response to changing
consumer tastes and a negative backlash because of the unhealthiness of their food,[9] the company
has added to its menu salads, fish, smoothies, and fruit. The McDonald's Corporation revenues
come from the rent, royalties, and fees paid by the franchisees, as well as sales in company-
operated restaurants. According to a BBC report published in 2012, McDonald's is the world's
second largest private employer (behind Walmart with 1.9 million employees), 1.5 million of
whom work for franchises

Background (history)
In 1902, a baby named Ray Kroc was born, and no one knew at that time, that one day he would
change the face of the fast food industry. Ray Kroc joined the Red Cross as an ambulance driver
to help the war effort and after it was over, he had a variety of different jobs including being a
paper cup sales man, and also sold multi-mixers. One day, Kroc received an order for eight
mixers, which surprised him, so he went to investigate who placed this large order. Heading to
San Bernardino, Kroc discovered the order came from a restaurant owned by a pair of brothers
named Dick and Mac McDonald. Kroc spoke to the brothers, and was quite surprised how two
men could run a restaurant so efficiently, and pitched the idea of opening them all over the
United States. In 1955, Kroc created the McDonald’s Corporation, and five years later, he
bought the rights to the name and a franchise was born!
What made McDonald’s so successful was the philosophy Ray Kroc developed, which was food
that is over the highest quality, a specific order of food preparation, making sure that every
McDonald’s location maintains high standards of cleanliness, and the last principle Kroc
created was value. To ensure that these standards are kept up, Ray Kroc created Hamburger
University in 1961. At Hamburger University, franchise owners learn how to run each franchise
location successfully, and as of this day, over 80 thousand people have graduated from the
program.
Ray Kroc worked at McDonald’s until 1984, when the 82-year-old man ended up having to be
in a wheelchair, and died soon after. However, though Ray Kroc is gone, his legacy lives on in
every McDonald’s location.
McDonald’s has on its sign that billions have been served, and since Ray Kroc took it over in
the late 50s, that statement is true. Even today, McDonald’s is the number one fast food
franchise, and the reason why is because Ray Kroc wanted his restaurant to be run according to
a set of standards that had four principles, which are high quality food, quality service,
cleanliness, and value. Though Ray Kroc died in 1984, his legacy will always remain as long as
McDonald’s continues to serve the food it is famous for.
Business model
The company currently owns all the land, valued at an estimated $16 to $18 billion, on which its
restaurants are situated. The company earns a significant portion of its revenue from rental
payments from franchisees. These rent payments rose 26 percent between 2010 and 2015,
accounting for one-fifth of the company's total revenue at the end of the period.In recent times,
there have been calls to spin off the company's US holdings into a potential real estate
investment trust, but the company announced at its investor conference on November 10, 2015,
that this would not happen. The CEO, Steve Easterbrook discussed that pursuing the REIT
option would pose too large a risk to the company's business model.

The McDonald's logo painted on the tail of a Crossair McDonnell Douglas MD-83 in 1999.
The United Kingdom and Ireland business model is different from the U.S, in that fewer than 30
percent of restaurants are franchised, with the majority under the ownership of the company.
McDonald's trains its franchisees and management at Hamburger University in Oak
Brook, Illinois.[28][29] In other countries, McDonald's restaurants are operated by joint ventures of
McDonald's Corporation and other, local entities or governments.[30]
According to Fast Food Nation by Eric Schlosser (2001), nearly one in eight workers in the U.S.
have at some time been employed by McDonald's. Employees are encouraged by McDonald's
Corp. to maintain their health by singing along to their favorite songs in order to relieve stress,
attending church services in order to have a lower blood pressure, and taking two vacations
annually in order to reduce risk for myocardial infarction.[31] Fast Food Nation also states that
McDonald's is the largest private operator of playgrounds in the U.S., as well as the single largest
purchaser of beef, pork, potatoes, and apples. The selection of meats McDonald's uses varies to
some extent based on the culture of the host country

Problem:
When you serve more than 25 million people in the United States each day, leveraging the right
CRM solution is important. McDonald's customer satisfaction contact center was quickly outgrowing
their CRM system. This system lacked the functionality to meet their evolving business needs and it
was time to look for a better solution.
McDonald's was looking for improved functionality for their customer satisfaction group, as well
as a tool that provided the company with real-time access, via flexible and comprehensive
reporting, to the data that was collected from customers each day.

Their objectives were to...

 Increase data capture with regard to customer feedback and satisfaction


 Provide both McDonald's franchisees and corporate management with real-time access to
customer data
 Integrate the company's extensive and constantly changing restaurant database into a reliable
CRM tool
 Gain robust and actionable reporting capabilities that provide measurable
customer satisfaction results from the national to franchise level
 Provide system functionality and flexibility that will support evolving business needs.

Solution:
McDonald's relies on Astute Solutions to provide improved data capture, quicker issue resolution
and real-time reporting while integrating the company's extensive restaurant database into a
centralized location.

Astute ePowerCenterTM provides greater flexibility and functionality to the organization, which
has been key to supporting their evolving business needs.
McDonald's recognized a growing trend in the quick service restaurant industry toward accurate
and timely customer service. Choosing the right technology solutions was key to helping them
meet their goals. With Astute Solutions, they found a partner that was able to provide the
innovation and technology they required as well as the service and support they demanded.

 Astute ePowerCentre is a CRM software that shortens training time, shows a unified
customer view and provides everything agents need to improve loyalty in a single,
integrated interface.

The Results:
 After implementing ePowerCenter in the customer satisfaction contact center,
McDonald's decided to also deploy it in contact centers supporting Human Resources,
Investor Relations, and Operations. They've also extended its use to support their
restaurants in Canada.
 ePowerCenter allows McDonald's to track more than 600 types of diverse customer
issues through issue codes. It also enables them to capture other very specific types of
information from customers regarding their experiences at McDonald's restaurants
nationwide and in Canada.

 With more than 15,000 restaurants just in the U.S., ePowerCenter provides McDonald's
the ability to integrate into their CRM systems. This combination of databases gives them
the power to measure customer satisfaction results both from the national level, and down
to the individual restaurants. Ease and flexibility made ePowerCenter the perfect choice
for McDonald's

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