mcdonald’s in norway team 4 robert jameson, becky tibbenham, charlotte jorgensen, matthew byler
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McDonald’s in Norway
Team 4
Robert Jameson, Becky Tibbenham, Charlotte Jorgensen, Matthew Byler
McDonald’s
World’s largest chain of hamburger restaurants
Serve 58 million people in 119 countries daily
31,000+ locations worldwide
1.5 million employees (2008)
Annual revenue of $22.6 Billion
QSC&V (Quality, Service, Cleanliness & Value)
McDonald’s History
1940s: Began by brothers Richard and Maurice McDonald in San Bernardino, California
1948: "Speedee Service System” established the principles of the modern fast-food restaurant
Current corporation’s Founding April 15, 1955 Franchised restaurant by Ray Kroc - in Des Plaines, Illinois Ninth McDonald's restaurant overall
Kroc later purchased McDonald brothers’ equity He led its worldwide expansion 1965: Company listed on the public stock markets
McDonald’s History
May 4, 1961: McDonald's first filed for a U.S. trademark on the name “McDonald’s”
September 13, 1961: Filed a logo trademark on an overlapping, double arched "M" symbol
McDonald’s History
Kroc noted for aggressive business practices, so the McDonald brothers left the fast food industry
McDonald brothers and Kroc feuded over control of the business, as documented in their autobiographies
McDonald brothers’ original restaurant now a monument
International symbol of globalization Because of its expansion into many international markets,
symbol of globalization and the spread of American way of life Its prominence has made it a topic of public debate about
obesity, corporate ethics, and consumer responsibility
McDonald’s in Norway
Entered Norway in 1983 (the 31st country)
Currently 69 total stores
Last year’s revenue: more than One Billion Kroner ($200-250 million)
McDonald’s in Norway
“The restaurants stretching from Kristiansand in Vest-Agder, to Steinkjer in Nord-Trondelag”
Very different architecture, so location of stores not always where American’s expect
McDonald’s in Norway:Restaurant Structure
Franchising System Primary system when expanding abroad About 80% of McDonald's restaurants overall operate by
franchisees, and 85% of restaurants in Norway are franchised
They believe franchising a key reason for success because they can influence their own work but also use resources, pulling from McDonald's system's experience, network and expertise in operations and development
Locally-owned better for environment Allows for local customization of menu
McDonald’s in Norway:Product Distribution
Control every stage of to ensure product consistency Same distribution systems that distribute products to
individual restaurants But McDonald’s purchases more from local suppliers that
meet certain specifications Norwegian government ensures only approved, high
quality food is used (More on this later)
McDonald’s in Norway: Quality Assurance
Stays in close contact with customers’ tastes and needs, despite rapid global expansion. Through quality assurance centers located throughout
Europe (similar to those located throughout America) Aims to provide 100% satisfaction
Provide training for employees at “Hamburger Universities” (similar to those in America) Promises same basic menu Promises same quality, service, cleanliness and value (QSC&V)
Partnership to work across EU links 29 countries together (similar to different states in the USA with transfers, etc)
Employees from more than 70 countries
Must be at least 16 years old
Can be full-time or part-time
McDonald's is one of the biggest employers for youth: Most of their 2000+ employees are between 16 and 25 years old and working part time in conjunction with school
2008: Voted fourth best workplace among large companies
McDonald’s in Norway: Quality AssuranceMcDonald’s in Norway:Employees
McDonald’s in Norway: Hamburger University
Same program worldwide
Managers go here to learn how to own and operate a McDonald’s restaurant
Learn how to maintain QSC&V
All products, kitchen layouts, and procedures are strictly controlled and essentially the same worldwide
If restaurants cannot maintain QSC&V they are closed, even if highly profitable
Comprehensive Training & Leadership Development: “With so many career opportunities, it is important that we have equal opportunities for training. This is one of the reasons for the high satisfaction among McDonald's employees.”
All employees given the opportunity to further educate themselves by learning new tasks
McDonald’s in Norway: Hamburger UniversityMcDonald’s in Norway: Employee Training
McDonald’s in Norway: Employee Training
McDonald's education prepares people for the challenges that come with increased responsibility
Advancement in the career ladder is very easy
Five-level Career Ladder Restaurant Staff (crew) Assistant Shift Leader Shift Leader Assistant Restaurant Manager Restaurant Manager
McDonald’s in Norway: Employee Training
Continuing education consists of practical and theoretical exercises, courses and exams.
Separate, modern training center in Oslo’s main office
By following the course programs, employees qualify for the next step on the career ladder
Also cross-border cooperation on training and continuing education
McDonald’s in Norway: Employee Wages
McDonald’s follows restaurant industry guidelines, paying wages equivalent to others in the industry.
Company policy is to follow the Norwegian Working Environment
As per union, all employees receive a salary adjustment every year on April 1
Salary rates: Depends on seniority and evening/weekend work Ages 16-17: 88.68 to 98.68 per hour ($14.63 to 16.28) Ages 18-20: 113.68 to 134.99 per hour ($18.76 to 22.76) Age 20+: Starting salary of $134.99 ($22.76+)
80% of their food comes from Norway
Gluten Free (only country for McDonalds)
June 13, 2007: Tested Salmon Wrap
McDonald’s in Norway: The Menu
McDonald’s in Norway: The Menu
Burgers are similar
Norway has most expensive Big Mac in the world (2008)
Norway very health conscious Food has to be approved by Norwegian government:
guaranteed high quality & manufactured in sustainable way
“Our standards often exceed national food safety standards, so our guests will be assured of optimal products and meals when they are in the restaurant.”
McDonald’s in Norway: The MenuMcDonald’s in Norway:Price Comparison
Meal for Two:
1 Filet O’Fish
1 Big Mac
1 Cheeseburger
2 French Fries
1 Smoothie
1 Diet Coke
$31.50
McDonald’s in Norway: The Experience
Very similar to America: Drive Thru, Happy Meals, and Similar Food (mostly)
For Norwegians drive-thrus are not common McDrive Official Website: “Many of our restaurants are drive-thru
restaurants.”
Very Comprehensive Birthday Party Packages
Environmentally Friendly
“We want to give something back to the communities where we operate. Local franchisees often support local clubs and associations to help in their local environment. At national level we have established the Ronald McDonald Children’s Fund, an independent foundation that works to raise money for chronically ill children.”
McDonald’s in Norway: The ExperienceMcDonald’s in Norway:Giving Back
McDonald’s in Norway: Marketing
Employ same competitive strategy in Norway as in U.S. Be first in your market Establish your rand as rapidly as possible Advertise heavily
This strategy has helped McDonald’s succeed in Norway over other fast food competitors
However, they have had to adjust advertising campaigns to be more classy and sophisticated
McDonald’s in Norway: Marketing
• Above is an advertisement for a burger in Norway• McDonald’s has changed brand identity in Europe to
appeal to a more sophisticated population• European operations posted a 2010 second quarter
gain of 5.2 % (compared to America’s 3.7%)
McDonald’s in Norway:Difficulties
Advertisement for McAfrika burger Norway one of world’s
richest countries Bad timing: Africa’s
worst hunger catastrophe
Solution: Donate percentage of profits to African Charities
Interviews
Coming Soon!
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