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McDonald’s: Property Management in the Hospitality Industry


Property management is the management of the operational aspects of real estate. Property management may also deal with individual property and physical assets. The main activity of the property management is the liaison among the tenants, landlords, and the government. The hospitality industry is booming today in the context of international management. Globalization in the hospitality industry and the vibrant cultures and human resource management have added up with the different contributions to the hospitality industry and the organizational growth as a whole.

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Property management: an overview

Property management and the hospitality sector should be given a very optimistic view; hospitality should be developed well for the success of the firm and for its operations to be effective.

A survey that was conducted shows that different factors are responsible for building up hospitality. The success of the hospitality sector depends on customer service and good performance in the industry and the financial management in the firm during its operations. The assessment of different criteria is to be done on the factors like adapting of customer service, interpretation of the customer service, taking the responsibility for the team, customer performance, and discussion in a team.

The franchise concept is fast growing in the US, according to the survey. they play a vertical role among the suppliers, in franchising, someone had designed and done the work and the franchisor is the one who carries the concept, idea, and the business to the people, they have the benefits of the established business, established brand and reputation The ownership issues are more related with the start up companies and the owners take keen affords for developing of ideas and the concept, The owner should be the owner of the own technology or the worst affect will be in the liberty of operation and the patent rights of the organisation. The ownership issues are they provide the company with authority to protect the company resources and technology from copying or any false practises. The ownership has to value the portfolio and the company’s technology.

The ownership and franchisee concept

Franchisee is a form of business which deals with distribution of the products and services of the owner in the market through the authorized dealers.A continuing relationship in which a franchisor provides a licensed privilege to the franchisee to do business and offers assistance in organizing, training, merchandising, marketing and managing in return for a monetary consideration” (Franchising: Definition, 2010, para.1).The franchisee is business transactions that are to be transferred from the owner in terms of the agreement from the distributing of the products in the market. The franchisee has to pay initial fees towards the royalty and the ongoing procedures. Different benefits are enjoyed by the franchisee; he is at a liberty to make much earning from the trade mark, advertisement and the reputation received by the product. The much reputed marketer has the choice of the product as the owner itself; they conduct market analysis, market research and surveys for the product that are in the market. The owner of the business is the sole proprietor of the business; he is the one who makes the enterprise by the investment that are in the firm and the one who is responsible for the success and failure of the product in the market.

Asset management

The asset management of the firm is management of the entire investments that are made by the business. The asset of the organization includes the stocks, shares, bonds etc. The asset management faces a lot of issues in the organization like the dynamic financial services, and competition in the market. The service escape is the concept that deals with the physical environment and how much impact they create on the assets in the organization. It also deals with the employee and the customers. The physical environments like the hotels, hospitals, restaurants etc may contribute for the behaviour and image that there are less oriented business. “Mr. David Roland specifies the asset management as the sophisticated management regime adopted by the department to manage its property assets which comprise schools and colleges value at approximately15 billion Australian dollars” (Strategic asset management for tertiary institutions, 1999, p.13).Hospitality management is the study of analyzing about the hotels, restaurants, and travel and tourism-related business so that it helps to understand the environment of those industries. Hospitality framework helps the management to identify the problem, assess and evaluate these problems. Environmental Management in the Hospitality Industry helps identify the concept of business, take proper strategy and planning, creation and operations of the plan. And also it helps identify the product development, asset management etc. The person who is having specialized skill should be appointed as an advisor to manage all the things regarding the matter of hospitality.

Management of property is a type of structure which looks after the different kinds of land. It also means that the management of all the aspects linked with the business held in land. It includes all the activities like bringing, promoting, mortgaging, hiring etc of the property. At the time of bringing the land for hospitality industry itself, we have to fulfil the various procedures like investigation of land, various lawful matters, listing procedure, suitability of land etc. Both possessor as well as owner of the property should give due care at this time. Environmental management in the hospitality industry helps find out various scope as well as intimidation in the environment. Environmental management in hospitality industry includes all the aspects of idea development, scheduling, constructing, and working of entire hospitality industry.

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There must be a group leader to manage all the activities of hospitality property analysis. “Improvement of developing hospitality properties needed:

  • Planning, programming, and monitoring to achieve on time completion
  • Procurement, supervision and inspection to produce a complaint and quality product” (Ingram & Ransley, 2004, p.163).

Hotels, restaurants, travel and tourism are main hospitality industry. In all these cases, proper and adequate care should be taken to give maximum satisfaction to the customers. Management should be up to date according to the change of environment. Promotional activities should be given to the customers.

About McDonald’s

McDonald’ is the one of the leading food industry that maintains good hospitality services. Head quarts of McDonald’ is situated in Oakbrook, Illinois and it is most leading as well as known brands all over the globe.between 1999 and 2000, McDonald’ was in a declining stage because of many reasons. One of the main reasons was the operation mode adopted by the existing hotel.

Meaning of the McDonald’s brand

One of the significant resources possessed by the McDonald’ is their brand itself and another thing is that McDonald’ establish its brand to the hotel business. Later in 2001, the foremost attempt was to open a hotel business in Switzerland (Zurich and Lully) with 4 star facilities it is located in near to the airport and provided all facilities to the customers. This hotel in Switzerland is known as “Golden Arches Hotel later its aim to open is market in U S. The main strategy that the McDonald is followed on the basis of the present trend prevailing in the environment this will be the one of the main attraction that we can see the McDonald brand.various investigation is made many places to identify the core competencies as well the limitation of the McDonald. From this study McDonald brand adopted strategy is own the basis of approaches of the community not on the basis of age this is because sometimes different age generation also having same interest this is the brand. This is one of the particular attentions to the meaning of the McDonald’s brand. The main thing is that they adopted new strategy as well as good infrastructure facilities. They used modern technology as well as good inner design to complete the work. They adopted universal marketing strategy to capture the market. Now, McDonald’ is a leading in the market. McDonald’ providing very welcoming services to its customers. At the same time McDonald’ facing a lot of competition from the outside mainly to the welcoming approach of the McDonald’.

Growth options

One of the main growth option that the followed by the McDonald is one that they give primary preferences to its customer needs. Sustainability of McDonald not only the basis of the environmental preferences but it also on the basis of the return of the service that they providing.

The feasibility study of any organization helps to examine the capability of built-up a fresh invention or method to expand it services. MacDonald carries out feasibility programs for many places to understand their possibility in that place. Macdonald holds high branding, McDonald study centre providing autonomous study with high worth of services. It’s also having various years’ practices in this field, McDonald research centre give guidance, suggestion and convenient assistances to all area of advertising and publicity, Value prices menu for more than countries, Financial decline is not affected the MacDonald so Annul earnings of MacDonald is 5973.4millions,Mac Donald is more clients centric, they use QSCV principle for the activities.

Environmental management in hospitality industry

Environment means our surrounding or in other words the surrounding in which we live and breathe. Environment is dependent on the eco-system. Eco-system is not man-created it is a system formed by itself between the elements of nature, disturbance in the eco-system creates problems for the environment. Proper integration of environmental concerns lay stress on not to disturb the ecological balance necessary while taking economic decisions relating to development. Environmental factors are uncontrollable factors. Environment can be controlled only by not disturbing the natural balance. Hotels are the providers of comfort and recreation to people. In order to provide complete entertainment to people, hoteliers tamper with nature. People come and pay to the hospitality industry for first grade comforts and customers are not willing to compromise on the quality of standards of entertainment and treatment they are being offered which leads companies of the hospitality industry to tamper natural resources.

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The disappearing of ozone layer, global warming, improper rainfall, depletion of water level and climactic imbalances are result of tampering with nature. The cutting down of tropical forests leads to less of greenery, increases pollution and causes improper rainfall. Most of the hotels do not follow the standards of environment and disturb the ecological balance while providing modernized facilities to its customers. The main problem with the hotel industry is that they do not have adequate knowledge on how to control the environmental factors which are uncontrollable. Hoteliers are playing with nature in order to promote tourism like organizing tours to wildlife sanctuaries which are a habitat to many of the wildlife and thus the ecological balance is disturbed. Hotels release a lot of energy because hotels use fossil fuels for heating purposes and release poisonous chemicals such as sulphur dioxide which causes acid rain and increases global warming. Lightings in hotels increase the consumption of electrical energy. “Hotels fairly easily use solar energy for heating domestic water or for pool heating. International encyclopedia of hospitality management By Abraham Pizam” (Pizam, 2005, p.537).

Hotels need to provide their customers wide variety of food items of different cuisines; so refrigeration is an important thing in hotel kitchens. Refrigerants that are used in refrigerators are a big source of global warming. Hotels have huge dependencies on water on a daily basis; cleaning increases the use of water along with other water comfort games. Water bodies which are considered to be sacred are turned into water theme amusement parks. The waste water of some hotels is discharged into the sea which causes water pollution. The quality of air that is being emitted from hotels due to the continuous use of geysers, air conditioners and other comfort electronic items is harmful to nature and increases the warming in the atmosphere. The disposition of waste materials also causes enormous pollution. Hotels discharge huge amount of waste materials on a daily basis; so proper waste management is needed.

Hotels should mainly concentrate on how they can pay attention to nature while improving the comforts to people and increase their business. The hospitality manager’s duties involve the creation of such a financial plan that is environment friendly and also which is customer-service oriented. While some hotels follow the rule of not disturbing nature while giving service to people, most of the hotels are not able to follow the correct way of combining nature along with business. Many laws have been passed with regard to hotel industries following environment policies. “major national laws have been enacted, including on packaging waste (1997), waste (1998), environmental impact assessment (2001), integrated pollution prevention & control (IPPC) (2002) and forest (2003)” (OECD environmental performance reviews: Spain, 2004, p.101). Environmental audit should be conducted on a regular basis in order to understand the disturbance caused to the environment while incorporating modern entertainment facilities in hotels. The concept of greens should be treated with prime concern because reduction in greenery increases the problem of global warming. Global warming puts in risk all the entities of the universe; so hoteliers should incorporate the concept of greens seriously. The concept of greens can be implemented very easily in hotels and also beneficial to hoteliers in their business interests because tourists can relax in the greens which are soothing to both mind and body. Large hotel brands like McDonald’s Corporation mean more of business, and in turn, more pollution. So, big hotels like McDonald’s Corporation can invest a part in adopting new environmental policies. Many campaigns are being launched to promote the concept of environment in hospitality industry such as publications, advertisements etc… The United Nations created an action pack to be followed by hotels relating to environmental policies. These types of actions packs are aimed at increasing the concept of environment in hotels. “The International Hotels Environment Initiative (IHEI) encourages the continual improvement in the environmental performance of hotels and their suppliers by promoting corporate responsibility and sustainable development” (Trzyna, et al., 1996, p.99). These types of action packs are aimed at increasing the concept of environment in hotels. A checklist related to the implementation of environmental factors can be incorporated which can be scrutinized from time to time.

Sustainability in hospitality industry with respect to environment means the business practices which can be adopted while not tampering with nature.

The fixing of computer restricted air conditioners & geysers can reduce energy costs. Similarly, the use of substitute environment friendly refrigerants in the refrigerators can minimize the use of energy. Water saving policies can be incorporated and water flow controllers can be used, laundry department of hotels should be given proper instructions. “Baker (2005, p-71) maintains that …’costs can be greatly reduced by waste reduction & replacing conventional waste disposal activities with practices aiming for reuse, disassembly, recycling and composting’” (Chen, 2009, p.91). Hospitality managers deal with all the issues involving the social and ethical values of the hotels.


In big hotels like McDonald’s Corporation, the hospitality manager takes into account the environmental effects of the hotels and makes proper arrangements which are needed like less consumption of fuels, proper utilization of water, proper waste disposal system. In that way, by following the environment standards they increase the business. “Hotel managers are confronted with an array of internal constraints, industry-specific drivers as well as external economy-wide factors which influence the availability and cost of the labor input required” (Wong, 2004, para.1). A hospitality industry needs to manage its property well and make suitable environmental arrangements while doing their business.


Chen, J. (2009). Advances in hospitality and leisure. Emerald Group Publishing.

Franchising: Definition. (2010). Entrepreneur Media. Web.

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Ingram, H. & Ransley, J. (2004). Developing hospilitality properties and facilities, 2nd Ed. Butterworth-Heinemann.

OECD environmental performance reviews: Spain. (2004). OECD Publishing 18.

Pizam, A. (2005). International encyclopedia of hospitality management. Butterworth-Heinemann.

Strategic asset management for tertiary institutions. (1999). OECD Publishing.

Trzyna, T.C., et al. (1996). World directory of environmental organizations: A handbook of national and international organizations and programs-governmental and non-governmental-concerned with protecting the earth’s sources 5th Ed. Earthscan, p.99.

Wong, F.K.K. (2004). Industry – specific and general environmental factors impacting on hotel employment. Informaworld. Asia Pacific journal of tourism research, 9(1). Web.

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