Developing Good Business Sense - JustAnswer



Developing Good Business Sense

Connie Reynosa

Axia College of University of Phoenix

The three companies I choose are: McDonalds, Macys, and Microsoft. These three companies revolve around three different services and products but, similar principles in business. McDonalds’ employees have tasks that include cooking, cleaning, and taking orders. McDonalds’ philosophy has been about a strong combination of quality and quantity. McDonalds main objective is provide foods in the most time and quality efficient way to its customers. The employees need quickness so the customer can receive his or her food fast. The employees also uphold a philosophy of cleanliness which includes clean food and a clean environment.

Macys’ employees also uphold a philosophy of cleanliness as well as neatness. Employees of Macys are usually attractive and dressed professionally. The customer service is also outstanding; for they make sure the customers help them find right type of clothing. Macys’ main objective is to provide quality clothing and being a retailer, it marks up the price on the clothes they receive from their suppliers. The clothes they sell are brand name and usually endorsed by celebrities.

Microsoft’s philosophy is of innovation. Microsoft makes sure its customer receives the best software to facilitate efficiency in their personal and business life. They have made it a mission to compete against other software makers by having Microsoft provide quality products. The employee’s tasks are to always be ahead of the curve and improve technology to enhance everyone’s lives.

All three companies make sure they have employee’s work hard to promote the greatness of the companies and its brand. Employees are updated on new ideas so they can enhance customer service and result in higher profits and a stronger customer base. The OMM costs do differ since they are in very different industries. McDonalds OMM costs might include food supplies usually import goods, cheap labor costs since many are young and replaceable, and the distribution costs are much more efficient given their franchising. Macys OMM costs include inventory costs which include clothing, cheap labor since many can be easily trained, and cheaper distribution costs given the innovation of online shopping. Microsoft’s OMM costs include higher labor costs since many are highly educated and demand more work, its suppliers are cheaper since many technology parts are imports, and cheaper distribution costs since online shopping has become readily available.

These costs affect the companies and because of it many have found ways around it to reduce it. I know that McDonald’s suppliers are from out of state and thus creating higher profit margins being that the costs of food are much cheaper. The problem the company could face is the safety of its foods. There have been many controversies of food poisoning and mainly coming from foods overseas. Macys’ high costs might come from high inventory. Macys has lots of clothes that does not sell and what they do is to sell it cheaper to other retailers. This reduces loss on their clothing that does not sell. Microsoft’s high costs might come from its labor since many are well qualified and highly educated employees. The employees get paid high salaries to deliver better service by programming better software. A method Microsoft has used to reduce costs of labor is outsourcing. Many jobs, especially technological jobs have been outsourced to countries like India. The people of India work for cheap and thus reducing Microsoft’s costs. The problem that can arise is the unsatisfied customers because of language barriers India workers have dealing with customers from America.

Each and every one of the companies mentioned has their specific methods to dominating their market and getting the competitive edge. The one thing in common is that each and every one of them has become consistently successful in their field. McDonalds’ use of franchising, real estate ownership, and stock market leverage has made the company very profitable and dominating. They are now expanding in other countries and become a well known brand in the area of fast food. It is safe to say they are the big whales in the industry of fast food. Macys’ are also successful with the use of real estate ownership and stock market leverage. They are successful because their leverage with brand name clothing endorsed by well known celebrities. The celebrities help provide the marketing for the store, and it’s become the norm to find the best and latest clothing at Macys. Microsoft is extremely successful since they have dominated the market in providing the operating software for literally 99% of all PC users. There are other operating system but not as dominate as Microsoft. They provide a product and service that use the leverage of great distribution through the negotiations of PC makers, and stock market. It is a well known company that conquered the area of software technology.

References

McSpotlight. Retrieved May 10, 2009, from



About Microsoft. Retrieved May 9, 2009, from



Macys. Retrieved May 9, 2009, from



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