COMPANY NAME: McDonald's
Brief introduction
The business began with two brothers. In 1937, Dick and Maurice McDonalds opened a small drive-in restaurant east of Pasadena, California. They served hotdogs and shakes. This led to the creation of a bigger drive-in which operated successfully and by 1948, the brothers had a made a fortune they never expected. The brothers realized that hamburgers comprised of 80 percent of their sales and closed their doors to re-evaluate their business model. The same year, in 1948 the model was about affordable dining for family who wanted to eat out. The “Speedy Service System” was also implemented that included an assembly line of sorts, a nine-item menu, and an all male staff. The operations were proven successful in 1952 ad the first franchise was sold to Neil Fox who opened a restaurant in Phoenix, Arizona and created the well-known golden arches of McDonalds. Fox had huge success with the store and the brothers were reluctant at first to begin a national franchise system, but soon realized that too many copycats were creeping up and they needed an advantage and a head start. Ray Croc joined the team as the exclusive franchise agent in the United States.
Some of the problems and challenges facing the company is the increase in competition, poor management, bad marketing, and lack of response to the changes in the needs of franchises and customers. This resulted in the strategic issues that needed to be implemented to continue growing success for the company. Going global is critical in the expansion of McDonalds. Over the past couple of decades, the major chains have also begun to expand into the global marketplace and have opened franchises up around the world. McDonald’s currently operates in over 120 countries around the world with over 30,000 stores.
McDonald’s in the Philippines
George T. Yang built the first Golden Arches in the Philippines in 1981. As of 2005, McDonald’s Philippines is a 100% Filipino-owned company. From its first restaurant along Morayta, Manila in 1981, McDonald’s has grown to become one of the leading fast food chains with close to 300 restaurants nationwide! With Kenneth S. Yang at the helm, McDonald’s is now a multi-billion peso company that continues to expand and serve Filipinos all over the country.
Vision/Mission/Objectives
Vision
Una sa Pamilyang Pinoy!
It means to be the first to respond to the fast changing needs of the Filipino family. The first choice when it comes to food and dining experience! And the first mention as the ideal employer and s ocially responsible company.
Mission
To serve the Filipino community by providing great-tasting food and the most relevant customer delight experience!
Values (CMITE)
Customer-driven
Malasakit
Integrity
Teamwork
Excellence
PRODUCTS AND SERVICES
McDonald’s is a customer-oriented company that strives to offer Filipinos a combination of great tasting, quality food products at value prices with excellent service.
Well loved McDonald’s products like the Big Mac, Cheeseburger, World Famous French Fries, Egg Muffin, Apple Pie, Sundae and the Happy Meal, plus local favorites like Chicken McDo, Burger McDo and McSpaghetti are products of our passion to always give what our customers want. McDonald’s ensures high standards in all aspects of operations, promising our customers only the best meals in every restaurant at any time. Recently, McDonald’s pioneered 24/7 restaurants and 24/7delivery service to cater to our customers’ changing lifestyles.
Apart from our products and services, McDonald’s gives back to the community through the Ronald McDonald House Charities (RMHC). RMHC supports children’s development and well-being through Bahay Bulilit and Bright Minds Read (BMR). Every Happy Meal purchase gives 50 centavos to RMHC. Bahay Bulilit, a partnership between RMHC and the Department of Social Welfare and Development (DSWD), builds day-care centers and provides primary education to children below 6 years old. Bright Minds Read (BMR), on the other hand, is a partnership program with the Department of Education that teaches beginning reading to Grade 1 public school students.
General Industry Analysis
Market Size
The consumer food-service market is typically broken down into eight categories according to the type of food and the restaurant operations. The categories are as follows: sandwich, pizza, chicken, family, grill-buffet, dinner house, contract, and hotel. McDonald’s competes with other businesses from these other categories as substitute product competitors but primarily competes in the quick-service sandwich market. Experts projected that the sandwich segment was expected to grow by two percent annually for the years ahead.
Market
1. Product:
McDonald’s products are standard in all franchises. However, the company adjusts to culinarydifferences in various cultures. In the case of India, McDonalds offered vegetarian burgers topracticing Buddhists. Asian countries preferring spicy taste saw the introduction of spicyburgers, chicken and seasoning. This provides options for customers to purchase food witheither the American taste or the local taste. McDonalds achieves balance by maintainingstandardization in products but adjusting to the local taste.
2.Price McDonalds prices differ in difference franchises since product price depends upon the expensesand costs in the locality. However, McDonalds determines price by ensuring the profitability of the restaurant while considering affordability to customers. Owners/operators should be trainedto be cost-effective in their expenditures. Balance between profitability and affordability isachieved through the company’s pricing policy based on actual expenses and the receivingvalue for value given. This means that people are willing to pay a certain price when thecompany delivers and equivalent quality food and service.
3.Placing\Distribution McDonalds distribution channels in exclusive to its franchise restaurants. The way of increasingits channels of distribution is by obtaining several franchise requests in Estonia. Population,income and industrialization trends influence the decision to increase franchises.
4.Promotion McDonalds promotions are made internationally by the mother company and locally by theowners/operators through advertisements espousing company values and promotions such astaste-tests, discounting and frequency cards.McDonald's AdvertisingMcDonald's original advertising symbol was a winking little fellow named "Speedee", designedto promote McDonald's fast service. In the 50s and early 60s, McDonald's drive-in restaurantswere easily identified by their red and white tile buildings, which were capped with a slanted roof and framed on either end by a single golden, neon arch. Restaurants began to use theadvertising theme, "Look for the Golden Arches" and in 1961, the "Speedee" symbol wasreplaced by a new logo - an "M" slashed with a line, symbolizing the neon arches and restaurantroofline. The arches, updated over the years, remain the advertising symbol for the companyand are now one of the most recognized icons in the world
Employment
Mcdonald’s to employees can be summed-up in one statement: We value you, your growth, and your contributions. With this, you can expect highly competitive incentives, support, training, and opportunities to help you deliver the best possible results and advance your career. Learn valuable skills such as Teamwork, Communication, Problem Solving, Responsibility, and Customer Service in a fun and exciting environment.
As they give their employees the opportunity for professional growth, they also give them the opportunity for holistic growth. Practicing social responsibility by way of giving back to communities in the vicinity of a McDonald’s restaurant, their employees learn the value of helping others in need – specifically children, through the help of Ronald McDonald House Charities (RMHC).
Competition
One of the major issues for McDonald’s is it competitors. Burger King is the second largest hamburger fast-food chain in the world and is the number one competitor for McDonald’s. Burger King has 11,400 locations in 58 countries and derives 55 percent of its revenue from the drive-through window. Burger King reported 1.72 billion in 2002 in revenue which is a 17 percent increase compared to a 4 percent increase reported by McDonald’s over the same period. Burger King’s distinct assets include the unique Whopper with its one of kind charbroiled taste and the company policy of preparing the hamburger any way that the customer wants it. Burger King has distinguished itself over the years in many ways including being the first in the fast-food industry to enclose its patio seating in 1957 thereby offering customer indoor dining experience. Burger King also differentiated itself when it installed the drive-through window in its restaurants in 1975. In addition to the Whopper Burger King also offers a few set items on its break-fast menu that differs it from it competitors including the Croissan’wiches and french toast sticks. The rest of the menu also offered the unique veggie burger and chicken Caesar salad.
Wendy’s is the third largest fast-food chain with 9,000 stores in 33 countries world wide. In 2002 they reported 2.73 billion in revenue which is up 14.2 percent from the previous year. Wendy’s offers several unique items including the Frostys and Spicy Chicken Sandwiches as well as healthier items such as salads, baked potatoes and chili. Wendy’s has also distinguished itself through the creation of the special value menu with all items on it under a one dollar. Wendy’s also owns several small companies including Tim Horton’s and Baja Fresh Mexican Grill. It plans on increasingly using acquisitions of smaller brands to further growth. In next decade Wendy’s plans to add between 2 and 4 thousand new stores worldwide. One important weakness of Wendy’s is the lack of easily recognizable product compared to McDonald’s Big Mac of the Burger King Whopper.
Jollibee is considered to be the top competitor of McDonalds’s in the Philippines because it is considered to be Filipino’s favorite for offering products that are according to Filipino tastes. It all began in 1975 when Tony Tan Caktiong opened an ice cream shop in Cubao, Quezon City. The results of his efforts has been nothing short of phenomenal. Though Jollibee began as an ice cream parlor, it was the move to diversify to more types of food like hamburgers that really put them on the map. In every major area in the Philippines, one can count on multiple Jollibee’s being around, ready to serve you a Yumburger, ChickenJoy, or your own personal favorite.
Brief Industry Forecast
In July 2011, McDonald's announced that their largest restaurant in the world will be built on the 2012 London Olympics site. The restaurant will contain over 1,500 seats and is half the length of an American Football field. Over 470 staff will be employed serving on average (during the 2012 Olympics) 100,000 portions of fries, 50,000 Big Macs and 30,000 Milkshakes. This restaurant will overshadow the current largest McDonald's in the world in Moscow, Russia.
In January 2012, the company announced revenue for 2011 reached an all-time high of $27 billion, and that 2400 restaurants would be updated and 1300 new ones opened worldwide.
Organizational Structure
Brief introduction
The business began with two brothers. In 1937, Dick and Maurice McDonalds opened a small drive-in restaurant east of Pasadena, California. They served hotdogs and shakes. This led to the creation of a bigger drive-in which operated successfully and by 1948, the brothers had a made a fortune they never expected. The brothers realized that hamburgers comprised of 80 percent of their sales and closed their doors to re-evaluate their business model. The same year, in 1948 the model was about affordable dining for family who wanted to eat out. The “Speedy Service System” was also implemented that included an assembly line of sorts, a nine-item menu, and an all male staff. The operations were proven successful in 1952 ad the first franchise was sold to Neil Fox who opened a restaurant in Phoenix, Arizona and created the well-known golden arches of McDonalds. Fox had huge success with the store and the brothers were reluctant at first to begin a national franchise system, but soon realized that too many copycats were creeping up and they needed an advantage and a head start. Ray Croc joined the team as the exclusive franchise agent in the United States.
Some of the problems and challenges facing the company is the increase in competition, poor management, bad marketing, and lack of response to the changes in the needs of franchises and customers. This resulted in the strategic issues that needed to be implemented to continue growing success for the company. Going global is critical in the expansion of McDonalds. Over the past couple of decades, the major chains have also begun to expand into the global marketplace and have opened franchises up around the world. McDonald’s currently operates in over 120 countries around the world with over 30,000 stores.
McDonald’s in the Philippines
George T. Yang built the first Golden Arches in the Philippines in 1981. As of 2005, McDonald’s Philippines is a 100% Filipino-owned company. From its first restaurant along Morayta, Manila in 1981, McDonald’s has grown to become one of the leading fast food chains with close to 300 restaurants nationwide! With Kenneth S. Yang at the helm, McDonald’s is now a multi-billion peso company that continues to expand and serve Filipinos all over the country.
Vision/Mission/Objectives
Vision
Una sa Pamilyang Pinoy!
It means to be the first to respond to the fast changing needs of the Filipino family. The first choice when it comes to food and dining experience! And the first mention as the ideal employer and s ocially responsible company.
Mission
To serve the Filipino community by providing great-tasting food and the most relevant customer delight experience!
Values (CMITE)
Customer-driven
Malasakit
Integrity
Teamwork
Excellence
PRODUCTS AND SERVICES
McDonald’s is a customer-oriented company that strives to offer Filipinos a combination of great tasting, quality food products at value prices with excellent service.
Well loved McDonald’s products like the Big Mac, Cheeseburger, World Famous French Fries, Egg Muffin, Apple Pie, Sundae and the Happy Meal, plus local favorites like Chicken McDo, Burger McDo and McSpaghetti are products of our passion to always give what our customers want. McDonald’s ensures high standards in all aspects of operations, promising our customers only the best meals in every restaurant at any time. Recently, McDonald’s pioneered 24/7 restaurants and 24/7delivery service to cater to our customers’ changing lifestyles.
Apart from our products and services, McDonald’s gives back to the community through the Ronald McDonald House Charities (RMHC). RMHC supports children’s development and well-being through Bahay Bulilit and Bright Minds Read (BMR). Every Happy Meal purchase gives 50 centavos to RMHC. Bahay Bulilit, a partnership between RMHC and the Department of Social Welfare and Development (DSWD), builds day-care centers and provides primary education to children below 6 years old. Bright Minds Read (BMR), on the other hand, is a partnership program with the Department of Education that teaches beginning reading to Grade 1 public school students.
General Industry Analysis
Market Size
The consumer food-service market is typically broken down into eight categories according to the type of food and the restaurant operations. The categories are as follows: sandwich, pizza, chicken, family, grill-buffet, dinner house, contract, and hotel. McDonald’s competes with other businesses from these other categories as substitute product competitors but primarily competes in the quick-service sandwich market. Experts projected that the sandwich segment was expected to grow by two percent annually for the years ahead.
Market
1. Product:
McDonald’s products are standard in all franchises. However, the company adjusts to culinarydifferences in various cultures. In the case of India, McDonalds offered vegetarian burgers topracticing Buddhists. Asian countries preferring spicy taste saw the introduction of spicyburgers, chicken and seasoning. This provides options for customers to purchase food witheither the American taste or the local taste. McDonalds achieves balance by maintainingstandardization in products but adjusting to the local taste.
2.Price McDonalds prices differ in difference franchises since product price depends upon the expensesand costs in the locality. However, McDonalds determines price by ensuring the profitability of the restaurant while considering affordability to customers. Owners/operators should be trainedto be cost-effective in their expenditures. Balance between profitability and affordability isachieved through the company’s pricing policy based on actual expenses and the receivingvalue for value given. This means that people are willing to pay a certain price when thecompany delivers and equivalent quality food and service.
3.Placing\Distribution McDonalds distribution channels in exclusive to its franchise restaurants. The way of increasingits channels of distribution is by obtaining several franchise requests in Estonia. Population,income and industrialization trends influence the decision to increase franchises.
4.Promotion McDonalds promotions are made internationally by the mother company and locally by theowners/operators through advertisements espousing company values and promotions such astaste-tests, discounting and frequency cards.McDonald's AdvertisingMcDonald's original advertising symbol was a winking little fellow named "Speedee", designedto promote McDonald's fast service. In the 50s and early 60s, McDonald's drive-in restaurantswere easily identified by their red and white tile buildings, which were capped with a slanted roof and framed on either end by a single golden, neon arch. Restaurants began to use theadvertising theme, "Look for the Golden Arches" and in 1961, the "Speedee" symbol wasreplaced by a new logo - an "M" slashed with a line, symbolizing the neon arches and restaurantroofline. The arches, updated over the years, remain the advertising symbol for the companyand are now one of the most recognized icons in the world
Employment
Mcdonald’s to employees can be summed-up in one statement: We value you, your growth, and your contributions. With this, you can expect highly competitive incentives, support, training, and opportunities to help you deliver the best possible results and advance your career. Learn valuable skills such as Teamwork, Communication, Problem Solving, Responsibility, and Customer Service in a fun and exciting environment.
As they give their employees the opportunity for professional growth, they also give them the opportunity for holistic growth. Practicing social responsibility by way of giving back to communities in the vicinity of a McDonald’s restaurant, their employees learn the value of helping others in need – specifically children, through the help of Ronald McDonald House Charities (RMHC).
Competition
One of the major issues for McDonald’s is it competitors. Burger King is the second largest hamburger fast-food chain in the world and is the number one competitor for McDonald’s. Burger King has 11,400 locations in 58 countries and derives 55 percent of its revenue from the drive-through window. Burger King reported 1.72 billion in 2002 in revenue which is a 17 percent increase compared to a 4 percent increase reported by McDonald’s over the same period. Burger King’s distinct assets include the unique Whopper with its one of kind charbroiled taste and the company policy of preparing the hamburger any way that the customer wants it. Burger King has distinguished itself over the years in many ways including being the first in the fast-food industry to enclose its patio seating in 1957 thereby offering customer indoor dining experience. Burger King also differentiated itself when it installed the drive-through window in its restaurants in 1975. In addition to the Whopper Burger King also offers a few set items on its break-fast menu that differs it from it competitors including the Croissan’wiches and french toast sticks. The rest of the menu also offered the unique veggie burger and chicken Caesar salad.
Wendy’s is the third largest fast-food chain with 9,000 stores in 33 countries world wide. In 2002 they reported 2.73 billion in revenue which is up 14.2 percent from the previous year. Wendy’s offers several unique items including the Frostys and Spicy Chicken Sandwiches as well as healthier items such as salads, baked potatoes and chili. Wendy’s has also distinguished itself through the creation of the special value menu with all items on it under a one dollar. Wendy’s also owns several small companies including Tim Horton’s and Baja Fresh Mexican Grill. It plans on increasingly using acquisitions of smaller brands to further growth. In next decade Wendy’s plans to add between 2 and 4 thousand new stores worldwide. One important weakness of Wendy’s is the lack of easily recognizable product compared to McDonald’s Big Mac of the Burger King Whopper.
Jollibee is considered to be the top competitor of McDonalds’s in the Philippines because it is considered to be Filipino’s favorite for offering products that are according to Filipino tastes. It all began in 1975 when Tony Tan Caktiong opened an ice cream shop in Cubao, Quezon City. The results of his efforts has been nothing short of phenomenal. Though Jollibee began as an ice cream parlor, it was the move to diversify to more types of food like hamburgers that really put them on the map. In every major area in the Philippines, one can count on multiple Jollibee’s being around, ready to serve you a Yumburger, ChickenJoy, or your own personal favorite.
Brief Industry Forecast
In July 2011, McDonald's announced that their largest restaurant in the world will be built on the 2012 London Olympics site. The restaurant will contain over 1,500 seats and is half the length of an American Football field. Over 470 staff will be employed serving on average (during the 2012 Olympics) 100,000 portions of fries, 50,000 Big Macs and 30,000 Milkshakes. This restaurant will overshadow the current largest McDonald's in the world in Moscow, Russia.
In January 2012, the company announced revenue for 2011 reached an all-time high of $27 billion, and that 2400 restaurants would be updated and 1300 new ones opened worldwide.
Organizational Structure
Ethics System and Attitude Towards Corporate Social Responsibility
Ronald McDonald House Charities (RMHC). spearheads flagship projects like Bright Minds Read – a program in collaboration with the Department of Education, which aims to improve the reading skills of public school children. There is also Bahay Bulilit – an undertaking with the Department of Social Welfare and Development (DSWD) and local government units that constructs day care centers in impoverished communities.
Globalization and culture
Globalization has affected almost every aspect of life in almost every nation. From economic to social to culture, this widespread exchange of goods, services and ideas have influenced changes around the world. Even though the cultural influence in globalization is of slight significance to policy makers, its power has tremendous consequences to the nations involved and its people. Food is an important element in defining culture. Britannica (2007). “Food is the oldest global carrier of culture.” (para. 1). Any changes in the foods that we eat, in its preparation, the way it is served and consumed diminishes the traditional beliefs of the people.
One of the most influential changes came with the introduction of fast food restaurants like McDonald’s into foreign countries. Transformations have taken place which could be perceived as beneficial or corrupting to that culture. According to William Gould (1996), before the introduction of McDonald’s overseas “fast food was almost unknown. McDonald’s was the first company to try to export America’s love of fast food and changes in eating habits of other nations.” Catherine Schnaubelt (u.d.) in her study, has found that “McDonald’s has over 1.5 million franchises in the United States and about half of the total franchises are outside the U.S. in over 120 countries……Amidst all the fame and fortune of McDonald’s, there are concerns about how the spread of standardization of the franchise is affecting culture, attitudes and the environment.” (p.49).
The globalization of McDonald’s has raised many debates on both sides of the issue. The pro- globalization belief is that it enhances culture rather than adulterate. Radley Balko (2003), states that “In most communities, in fact, the McDonald’s has conformed to the local culture not the other way around. The McDonald’s corporation notes that most of its overseas franchises are locally owned, and thus make efforts to buy from local communities. McDonald’s also alters its regional menus to conform to local taste.” (para. 12).
There has been a loss of traditional values with the introduction of non traditional food into the culture of foreign countries. The types of foods are symbolic to particular regions, religions and morés. In India, to the Hindu people, the cow is considered to be sacred as part of its religion. According to the AsianInfo.org (2007), “Diversity can be found in India’s food as well as its culture, geography and climate.”(para. 1). “Although a number of religions exist in India, the two cultures that have influenced Indian cooking and food habits are the Hindu and the Muslim tradition.” (para. 3). With the introduction of non traditional foods into this society, as with many others, there are adverse effects on the traditions it tries to uphold.
McDonald’s is viewed as American and the movement away from traditional foods towards fast food is considered to be “Americanization” of the diet. This concept has more far reaching effects than is seen on the surface. The “Americanization” of the food also means that of the culture and a way of thinking which in not acceptable to many nations. Sebastian Mallaby (2007), writes that “Hyperpower invites backlash, and McDonald’s has not escaped such consequences. In 1999 a French farmer named Jose Bove ransacked a McDonald’s and became a hero of the anti- globalization.” (para.5). The restaurant stands as a symbol of an unwanted change sweeping across the borders of culture and tradition.
The content of the McDonald’s diet has long been an issue of contention with nutritionist. In his book Fast Food Nation, Eric Schlosser (2002), states that “By eating like Americans people all over the world are beginning to look more like Americans, at least in one respect. The United States has one of the highest obesity rate of any industrialized nation in the world.” (p. 240). “As people eat more meals outside the home, they consume more calories, less fiber and more fat.” (p. 241). The introduction of unhealthy eating habits as a result of the preamble of foreign foods into outside nations significantly affects the traditional culture. The World Health Organization (2002), believe that “within the next few years, noncommunicable disease will become the principal cause of morbidity and mortality…….The shift towards highly refined foods and towards meat and dairy products containing high levels of saturated fats,….contribute to rises in incidences of obesity and noncommunicable disease.” (p.952).
Not only has the content of the diet been an issue but also the way in which food is consumed. As the name implies it is “fast food” There is a movement away from a family oriented dining to individual dining. In a chart featured by Gardenswartz and Rowe (u.d.) shows that while mainstream American culture focuses on eating as a necessity and towards fast food other cultures view dining as a social experience with religion playing an important role in its practice. They value group orientation and conformity to facilitate harmony among families whereas American culture has a preference towards individualism and independence from each other.
Gobalization of fast food culture has also proven desirable to the nations involved and their populations. Mallaby (2007), states that “As America’s car culture spread abroad, the hamburger followed. McDonald’s has opened restaurants in 119 countries and serves 52 million people daily.” (para. 3). “The appeal of the American way seems to transcend all boundaries. When McDonald’s opened its first restaurant in Kuwait in 1994, 15,000 customers formed a seven mile line at the drive through.” (para. 4).
These are just some of the concerns which affect the issue of food culture and globalization. Many more arise as a result of the introduction of fast food restaurants like McDonald’s into diverse cultures around the world. Some changes are embraced by the population while others are seen as a threat to the way of life that has been established for centuries. Some are adverse to the idea of globalization as a hold and perceive McDonald’s as a representation of this ideal and as a result hold them responsible. The question arises; does the globalization of McDonald’s adversely or positively affect the culture of different nations?
Even though there has been many changes in the eating habits of the nations influenced by the introduction of McDonald's there has been many positive aspects. With the advancement of technology and communication the world itself seem to be moving at a faster pace. The advent of fast food into foreign cultures allows the opportunity to keep up with this fast pace. Culture is ever changing and thus McDonald's marks another step in the evolution of culture with the changes in has brought about. The menu has given people a new choice over the traditional foods eaten in the past.
McDonaldized institution has really spread across continents giving rise to a number of indigenous fast food chains. There is also the case of Asianization where Asian cuisine such as Fried rice is rapidly spreading all over the world. Unemployed youth are taking advantage of the McDonaldized institution to set up fast food businesses on the streets. This can be called fast food-street food. There are good and bad sides to this phenomena therefore we need to find out the bad sides and improve upon them. Some traditional foods may also come with problems especially in terms of health so while we criticise fast food we should also analyze some traditional food at least for their nutritional importance.
SWOT Analysis
This SWOT analysis shows us that although there are numerous threats against the fast-food industry, McDonald’s occupies a relatively strong position in the global marketplace. According to the five forces model, the strongest competitive force is between rival sellers in the industry. This SWOT analysis shows the many strengths that Mc Donald’s employs to keep itself at the top of the fast-food industry. Although there are various weaknesses, these can all be turned around following the McDonald’s Plan to Win, which was implemented with the hiring of Jim Cantalupo. Obviously all fast-food chains are going to have to combat the new consumer health expectations, but we feel that under Cantalupo’s leadership, McDonald’s has a strong enough consumer base to grow in the upcoming years. The financial analysis shows certain flaws in McDonald’s finances, but these are largely due to the expansionary policy in place in the company.
Strengths
- Owns one of the world’s best known brand names
- Real estate operations bring in large revenues and allow McDonald’s to open more stores
- Countless new innovations- breakfast, playpens, etc.
- Specialized training for managers- Hamburger University
- Reinstitute the restaurant review operation (QSC)
- Large market share
- Strongest international presence among fast-food chains
- McDonald’s does not need to act as finance corporation to franchises
- McDonalds Plan to Win- focuses on people, products, place, price and promotion
- Customer service ranking is the lowest among fast-food chains
- Many stores beginning to look dated
- Quality becoming inconsistent
- Order accuracy is low compared to other chains
- Diversification and acquisition of other quick-service restaurants
- Low-cost menu to attract different customers
- Initial public offerings in other countries could raise revenues
- Retail merchandise potentially used to raise revenues
- Increased competition among rival sellers, including price wars, product innovation, and growth
- Health conscious consumers demanding better quality, healthier menu items
- All fast-food chains expected to struggle to meet new consumer health expectations
- Overall weaker economy
THREE SUGGESTED BUSINESS POLICIES FOR THE COMPANY
“100 Hours Out Of Field Employee Training”
-In order to achieve great performances from new employees, they must undergo 100 hours of out of field training in a designated training center(looks like a real McDonald’s store) provided by the company. The duty will be looking like or seems to be a real transaction between customers and the employee. They will be paid, but only 70% of the actual amount they should be receiving when they have already worked in a real store.
“Scholarship for Future Managers”
-The employees who perform well in the company will be given the privilege to study in college FREE. The company will pay all the expenses, but after graduation, the employee will be automatically trained to be a manager of the store.
“Work Schedule and Financial Status Balancing”
-Service crews working at McDonald’s are paid according to the number of hours they have worked in the store, and it will also depend on the schedule given by the scheduling manager. This policy will balance the needs of the worker to the number of hours to be given to him/her, for instance, a crew who is a bread winner will have more working hours than a crew who is single(no family)
[ McDonald’s ]
Policy on Employee Work Training
Table of Contents
I. Date Issued p. 2
II. Purpose p. 2
III. Definitions p. 2-3
IV. Policy p. 3-4
V. Guidelines regarding the employee training policy p. 4-5
VI. Rationale p. 5
I. DATE ISSUED
The issue and effective date of this policy is January 01, 2013.
II. PURPOSE
Mcdonad’s is developing future-oriented strategies that allow an organization to achieve its objectives, considering its capabilities, constraints, and the environment in which it operates.
Moreover, it will help the company/store to maintain customers’ good perception about the quality of service offered to them.
III. DEFINITIONS
A. Employee Training: Educational preparation for performing a job that is typically provided to staff by the business that has recently hired them before they become active in service to the company. Employee training is increasingly required to assist the work force in using modern techniques, tools, strategies and materials in their jobs.
B. Service Quality is a term which describes a comparison of expectations with performance.
A business with high service quality will meet customer needs whilst remaining economically competitive. Improved service quality may increase economic competitiveness.
IV. POLICY
“100 Hours Out Of Field Employee Training”
-The company is engaged in the business of operating a quick service restaurant. As such, it deals with a vast number of customers everyday. It is therefore very important that the company project positive image to the general public especially about the quality service offered to them.
-Likewise, employees should guard themselves against any complaint while working on field from any customer that can tarnish the good name of the company with regards to his or her performance.
-In order to achieve great performances from new employees, they must undergo 100 hours of out of field training in a designated training center(looks like a real McDonald’s store) provided by the company. The duty will be looking like or seems to be a real transaction between customers and the employee. They will be paid, but only 70% of the actual amount they should be receiving when they have already worked in a real store.
GUIDELINES REGARDING THE EMPLOYEE TRAINING POLICY
General Guidelines
The following information is provided to help employees of McDonald’s who are:
1. Newly hired and have difficulties in adjusting in new workplaces.
2. McDonald’s seeks to create a realistic training center in which employees feel like they are working in a real store.
Managers/Supervisors
1. Participate in training the newly hired employees.
2. Mentor them with patience and consideration.
Human Resources Department/Employee Assistance Program/supervisor for
advice. Your role is not to diagnose or counsel the employee, but to train the employee to be a at his/her best.
3. Managers/Supervisors must be respectful to the employees, and the employees as well to the manager.
7. If possible, the supervisor will make efforts to adjust the survivor/employee’s work
VI. RATIONALE
By taking a responsible approach toward new employees,
McDonald’s, we are engaged in practices all employers should model. Not only do such polices to increase employees’ training and offender accountability, but they help McDonald’s avoid liability for failing to provide quality service to customers.
“100 Hours Out Of Field Employee Training”
-In order to achieve great performances from new employees, they must undergo 100 hours of out of field training in a designated training center(looks like a real McDonald’s store) provided by the company. The duty will be looking like or seems to be a real transaction between customers and the employee. They will be paid, but only 70% of the actual amount they should be receiving when they have already worked in a real store.
“Scholarship for Future Managers”
-The employees who perform well in the company will be given the privilege to study in college FREE. The company will pay all the expenses, but after graduation, the employee will be automatically trained to be a manager of the store.
“Work Schedule and Financial Status Balancing”
-Service crews working at McDonald’s are paid according to the number of hours they have worked in the store, and it will also depend on the schedule given by the scheduling manager. This policy will balance the needs of the worker to the number of hours to be given to him/her, for instance, a crew who is a bread winner will have more working hours than a crew who is single(no family)
[ McDonald’s ]
Policy on Employee Work Training
Table of Contents
I. Date Issued p. 2
II. Purpose p. 2
III. Definitions p. 2-3
IV. Policy p. 3-4
V. Guidelines regarding the employee training policy p. 4-5
VI. Rationale p. 5
I. DATE ISSUED
The issue and effective date of this policy is January 01, 2013.
II. PURPOSE
Mcdonad’s is developing future-oriented strategies that allow an organization to achieve its objectives, considering its capabilities, constraints, and the environment in which it operates.
Moreover, it will help the company/store to maintain customers’ good perception about the quality of service offered to them.
III. DEFINITIONS
A. Employee Training: Educational preparation for performing a job that is typically provided to staff by the business that has recently hired them before they become active in service to the company. Employee training is increasingly required to assist the work force in using modern techniques, tools, strategies and materials in their jobs.
B. Service Quality is a term which describes a comparison of expectations with performance.
A business with high service quality will meet customer needs whilst remaining economically competitive. Improved service quality may increase economic competitiveness.
IV. POLICY
“100 Hours Out Of Field Employee Training”
-The company is engaged in the business of operating a quick service restaurant. As such, it deals with a vast number of customers everyday. It is therefore very important that the company project positive image to the general public especially about the quality service offered to them.
-Likewise, employees should guard themselves against any complaint while working on field from any customer that can tarnish the good name of the company with regards to his or her performance.
-In order to achieve great performances from new employees, they must undergo 100 hours of out of field training in a designated training center(looks like a real McDonald’s store) provided by the company. The duty will be looking like or seems to be a real transaction between customers and the employee. They will be paid, but only 70% of the actual amount they should be receiving when they have already worked in a real store.
GUIDELINES REGARDING THE EMPLOYEE TRAINING POLICY
General Guidelines
The following information is provided to help employees of McDonald’s who are:
1. Newly hired and have difficulties in adjusting in new workplaces.
2. McDonald’s seeks to create a realistic training center in which employees feel like they are working in a real store.
Managers/Supervisors
1. Participate in training the newly hired employees.
2. Mentor them with patience and consideration.
Human Resources Department/Employee Assistance Program/supervisor for
advice. Your role is not to diagnose or counsel the employee, but to train the employee to be a at his/her best.
3. Managers/Supervisors must be respectful to the employees, and the employees as well to the manager.
7. If possible, the supervisor will make efforts to adjust the survivor/employee’s work
VI. RATIONALE
By taking a responsible approach toward new employees,
McDonald’s, we are engaged in practices all employers should model. Not only do such polices to increase employees’ training and offender accountability, but they help McDonald’s avoid liability for failing to provide quality service to customers.