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McDonaldization of your busienss


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Has your business been McDonaldized

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McDonaldization of your busienss

  1. 1. Chapter 1: An Introduction to McDonaldization
  2. 2. Chapter One Objectives <ul><li>To better understand what is meant by McDonaldization </li></ul><ul><li>To understand the various dimensions of McDonaldization </li></ul><ul><li>To understand the benefits, costs, and risks associated with McDonaldization </li></ul>
  3. 3. McDonaldization is…. <ul><li>“ the process by which the principles of the fast-food restaurant are coming to dominate more and more sectors of American society as well as of the rest of the world” </li></ul>
  4. 4. A few numbers… <ul><li>There are over 31,000 McDonald’s and they do over $21 billion in sales every year </li></ul><ul><li>More than half of McDonald’s restaurants are outside the United States </li></ul><ul><li>McDonald’s can be found in 118 countries where they serve more than 50 million customers daily </li></ul>
  5. 5. McDonald’s as a global icon <ul><li>Symbol of hard work in movies and on television </li></ul><ul><li>Viewed in Moscow as “the ultimate icon of Americana” </li></ul><ul><li>Big Mac Index – measures the purchasing power of various currencies around the world based on the price of a Big Mac </li></ul><ul><li>Golden Arches Theory of Conflict Prevention – that no two countries with a McDonald’s ever to go war (though this is wrong since NATO bombed Yugoslavia in 1999) </li></ul>
  6. 6. The Long Arm of McDonaldization <ul><li>Now there are McDonald’s in the Grand Canyon, Petronas Towers (the world’s tallest building), a ski-through slope in Sweden, and many college campuses </li></ul><ul><li>Fast food is also increasingly offered on military bases and ships, in hospitals, and even in high schools </li></ul><ul><li>Businesses are acquiring nicknames beginning with “Mc” such as “McDentists” and “McDoctors” </li></ul><ul><li>Vertical McDonaldization – demands of the fast food industry have forced other industries that service it to also McDonaldize </li></ul>
  7. 7. The Dimensions of McDonaldization <ul><li>Efficiency – optimum method for getting from one point to another </li></ul><ul><li>Calculability – emphasis on the quantitative aspects of products sold and services offered </li></ul><ul><li>Predictability – assurance that products and services will be the same over time and in all locales </li></ul><ul><li>Control – nonhuman technology comes to exert control over human workers and customers </li></ul>
  8. 8. A Critique of McDonaldization <ul><li>Although it can offer many benefits, there are also many downsides to McDonaldization </li></ul><ul><li>The fifth dimension of McDonaldization can thus be seen as the Irrationality of Rationality – the irrational results of a rational system </li></ul>E fficiency C alculability P redictability + C ontrol = Irrationality of Rationality
  9. 9. The Case of IKEA <ul><li>Efficiency – customers do much of the work, one-stop shopping, most items on site </li></ul><ul><li>Calculability – huge size of the stores, feeling that you are getting a lot at a low price </li></ul><ul><li>Predictability – size, store layout, types of furniture </li></ul><ul><li>Control – the maze-like layout leads consumers through </li></ul><ul><li>Irrationality of Rationality – time spent getting there and wandering through the store, the difficulty in assembling many of the products </li></ul>
  10. 10. Advantages of McDonaldization: <ul><li>A wider range of goods and services is available to a much larger portion of the population than even before </li></ul><ul><li>Availability of goods and services depends less on time and geography </li></ul><ul><li>Products are often more economical </li></ul><ul><li>Quality is often more uniform </li></ul><ul><li>Certain products are safer in a carefully regulated and controlled system </li></ul><ul><li>People are more likely to be treated similarly regardless of sex, race, or sexual orientation </li></ul><ul><li>Most popular products of one culture are more easily diffused to another </li></ul>
  11. 11. What Isn’t McDonaldized? <ul><li>Those aspects traceable to an earlier “premodern” age such as the mom-and-pop grocery store </li></ul><ul><li>New businesses that have sprung up or expanded as a reaction against McDonaldization such as bed-and-breakfasts </li></ul><ul><li>Those aspects suggesting a move toward a new “postmodern” age such as smaller more livable communities </li></ul>