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McDonald’s Corporation
Ariyani DeborantyJumranOphy QuamillaPatrick Braun
Agenda
Brief History Company Overview The Company’s Strategies Accomplishments Conflicts Human Resources Issue Managing Cultural Differences
Brief History
1948: Was founded in California by Dick and Mac McDonald 1954 - 1955: Ray Kroc became McD’s franchising agent and opened the restaurant in Illinois 1961: Ray Kroc bought the company1967: McDonald opened the 1st franchises outside U.S., in Puerto Rico and Canada1999: Already opened nearly 40.000 restaurants in 120 countries
Company Overview
Financial Information: Total revenues in 2003 increased 11% and net income increased 65%90% of total revenues came from U.S., Europe, APMEA, Latin America and Canada.
Growth: adding restaurants, maximizing sales and profits at existing restaurants, improving international profitability
Company Overview
Products: burgers, chickens, breakfasts, salads, snacks & sides, beverages, McCafe, desserts & shakes
Employees : 314, 000 (1999); 400, 000 (2008)
Turnover: down from 170% to 130-135%
Philosophy: Q.S.C. & V.
Vision: World’s best quick service restaurant
Strategies
Customer Satisfaction: “do whatever it takes to make a customer happy” Provides healthier foods with nutritional information Larger menus Allowed individual stores to experiment with their formats Nonfood-related products for kids
Strategies
Market: Diversification in home market International growth in Europe, Latin America, Asia Pacific.
Strategies
Social Responsibilities: Education
Children’s charities Environment
Human Resources Strategies
Managing DiversityMcDonald’s has created program:
McJobs for disabled people age of 16-60 McMasters is a nationwide program that identifies, recruits, trains and retains workers who are 55 years of age and older Employment opportunity
Human Resources Strategies
RecruitmentRecruitment, Selection and Retention
Training and DevelopmentHamburger University
BenefitProfit Sharing
Accomplishments
Domination of IndustryGrowthInternational sector
1. Discuss the inherent conflicts that exist between McD’s Company philosophy and its reformed organizational structure?
2. Discuss the many human resource issues that may arise and how the company may manage difference in culture
Conflicts
Q.S.C & V vs Restaurant Diversity
Differences in standard for their employees Differences in qualities and services Human resources strategies cannot be
applied in all franchisees around the world
Conflicts
McD Philosophy
McD Concept Conflict
To be the best employer for its people in each community around the world.
Using students as worker, short work hours.
For some areas, the concepts were not working and led employee to dissatisfaction.
Example: Brazil
Conflicts
McD Philosophy
McD Concept Conflict
To deliver operational exellence to its customers in each of its restaurants
Franchise structure reduces control, makes monitoring performance more difficult
A tight control system with strict regulations is difficult to run in a company with franchise organisation
Human ResourceIssues
McDonald’s is the world’s largest chain of hamburger fast food restaurant. If they want to continue expand internationally, they will face different culture of an other country and it may become some problem.
Human Resource Issues
The issues:1.Indonesia vs America: cultural perception of
time.2.China vs America: the different culture
between to country impact to the management of the business.
3.Brazil vs America: disgruntled franchisees and unhappy employees.
How McD manage cultural differences?
Solid diversity training Workshop to help managers and employees
so that they have full advantage of what everybody brings
Ensure that people at all levels of McD’s bring their energy and creativity into the work environment
ANY
QUESTIONS?
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