McDonald's is a leading global fast food chain serving around 40 million customers daily across over 30,000 locations. Effective knowledge management is crucial for its competitive advantage, impacting franchise success and customer satisfaction. However, the company faces challenges such as slow growth, changing customer preferences, and the need for innovation, necessitating improved research, development, and franchise relationships.

1. McDonalds and its Knowledge
Management
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Kingstone Joseph

2. Introduction
• McDonalds is one of the biggest food chain
business across the world.
• It is the number 1 fast food chain stores which
serve approx. 40 million customers with over
30,000 branches in around 120 countries (Paswan
& Wittmann, 2009).
• The maximum profit is earned from the main
eight countries including Canada, Brazil,
Germany, France, Japan, United Kingdom,
Australia and the United States (Paswan &
Wittmann, 2009).

3. Importance of Knowledge
management
• This management is normally viewed as a key
factor for sustainable competitive advantage.
• Information is one aspect of knowledge
management.
• Certain kinds of knowledge are not easy to
transform effectively (Hurley & Green, 2005).
• Depending on the effective knowledge
transfer, the structure and culture of
organizations may change.

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• In a franchise format, just like McDonalds, the
product or service offered by every franchise is
based on the key knowledge factors (Hurley &
Green, 2005).
• The success and failure of a franchise system
largely depends on how efficiently the
franchisees involved in a this system can use
their knowledge resource.

5. Strength of the company
• The best part about the company is its creation of
an image in the minds of the customers and also
their introduction to the fast food culture.
• The other strengths are its quick delivery,
customer service and cleanliness which attracted
the customers and it helped in retaining them
(Paswan & Wittmann, 2009).
• The logo and their campaign become very
popular and the helped the company in
establishing the brand image.

6. Collecting information
• The marketing strategy of the company is formed
on the basis of internal resources, external
environment, their capability along with the
support of their shareholder (Spender & Grant,
1996).
• Company also has worked on collecting
information about the customer expectations.
• The new food is launched with the purpose to
satisfy customer’s expectations after collecting
much information and using it correctly.

7. Loopholes
• The company is in the market from a very long
time and recently the company has seen the slow
growth in many franchisee.
• One reason can be as it can be seen everywhere
and over visibility and exposure has reduced the
customer interest (Spender & Grant, 1996).
• Customer tastes and preferences changes with
time and they get tired of same brand for long
time easily. That is why they switch to new brand
to try something new.

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• Also maintaining the standards for the long
time is difficult and that too for a company
which is huge in size
• The company’s main target was children but
with advent of health cautious generation and
the food served by the company became
objectionable for various environmentalists
and health organisation (Spender & Grant,
1996).

9. Corrective measures
• The company should develop a cell for research
and development.
• The main focus should children and teens as they
are more attracted towards fast food.
• The R&D team should focus on finding other
reasons of slow growth like quality, customer
service and maintenance (McIver et al, 2013).
• Also, as the company has a franchise concept, the
company should also focus on maintaining a
relationship between them.

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• The company should also focus on passing right
message of what company’s standards are to the
franchisee.
• If the company want to cope up from the slow
growth, the company needs to communicate,
compare and improve the services depending on
the information collected (McIver et al, 2013).
• The company must also try to achieve sustainable
development.

11. Knowledge
management
Innovation
Organisational
setting
Organisation
learning
leadership culture
Communication
Environment
awareness
Vision and
strategy

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