...History of McDonald’s The McDonald's concept was introduced in San Bernardino, California by Dick and Mac McDonald of Manchester, New Hampshire. It was modified and expanded by their business partner, Ray Kroc, of Oak Park, Illinois, who later bought out the business interests of the McDonald brothers in the concept and went on to found McDonald's Corporation. http://en.wikipedia.org/wiki/History_of_McDonald%27s McDonald’s is a company which has a colorful history and developed the culture associated with the Fast Food Chain today. In 1937, the McDonald’s brother Richard and Maurice opened the first McDonald’s restaurants in America; it was a freestanding business that offered until then an unthought-of concept. The main items they then sold were beef or pork burgers, fries and drinks. Their restaurant were set up differently to the restaurants of those times, with open kitchens the customers could see right through, and counters with many operational cash registers. Under a high degree of customer satisfactory contributed for business expansion, McDonald today has over than 30,000 restaurants over than 100 countries in the world and it has maintained the top position in the Fast Food Industry for the past 50 years. http://sth-about-human-resources-management.blogspot.com/2010/01/i-tried-to-give-you-theoretical-basis.html What are the functions of HRM? HRM functions can be dived into primary (directly involved with obtaining, maintaining and developing employees) and...
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...McDonald’s | March 22 2010 | | Project 2 Market analyses | Brief summary SWOT analysis - The fast-food industry is highly influenced by governmental policies, sales rates are grooving even during the recession. The changing lifestyles of consumers to a healthier and quicker one can be seen as both- a threat and opportunity. As a threat- due to a healthier lifestyle McDonald’s as well as other fast food restaurants can lose many consumers. As an opportunity- as people are getting more and more busy due to their work, they do not have enough time to make meals at home, and they choose to eat at fast food restaurants. McDonald’s have good quality of service and promotions, which is also one of the reasons of successful marketing. The main strength is of course their huge brand they built up. On the other hand the strongest weakness is the perception of the customers that look at McDonald’s as a very unhealthy place to eat. Competitive situation – The competitive situation within the fast food industry is very hard. McDonald’s is the leader in this industry, but still it has to deal with big rivalry. There are many other restaurants and other substitute products that consumers can choose. A big variety of the “other possibilities what and where to eat” makes strong buyers power. While in the global market entry barriers are high (due to high expenses to establish a big company), in a more local market, these barriers are much lower because it does not require big...
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...McDonald’s and Its Crisis What should a company do when its core product is considered “unhealthy” or even “harmful” by the public? Is it even possible for such a company survive and thrive; or will it have to shut down its business? McDonald’s fast food has for a long time been considered unhealthy by the public. In recent years, the health conscious trends have become increasingly popular. Moreover, many scientific studies and findings have surfaced and successfully confirmed that children’s increasing intake of fast food, which often contains high sodium content, sugars, saturated fats, and calories, for a long period of time would lead to childhood obesity. Moreover, obese children have a much higher risk of many health problems such as coronary heart disease, high blood pressure, diabetes, and certain cancers--all of which are fatal if left untreated. In 2010, a mother from California sued McDonald’s over the company’s marketing practice of Happy Meal. The mother claimed that McDonald’s used alluring toys to lure kids into Happy Meal. This lawsuit, which might be viewed by many as senseless and absurd, was one of McDonald’s biggest cases. In order to come out of the lawsuit ahead, this largest fast food chain had to undergo some major organizational changes. In this paper, we would like to use the knowledge learned in the class to analyze the event (the lawsuit) and its effects on McDonald’s. The paper will have four main parts. In the first part...
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...| Final Project Report | International Business Management | MKT-324 | | | Submitted to: Dr. Amira Khattak Submitted by: Aqsa Qamar Sarah Malik Sabah Anwar Hayat Solangi Afaq Baig Date: January, 26th, 2015 Table of Contents 1.0 Company Introduction 4 2.0 Problem Statement 5 3.0 Literature Review 5 3.1 The Concept of Internationalization 5 3.12 The Entry Mode 5 3.13 The Factors That Influence Entry Mode Choice 6 4.0 Findings 7 4.1 Mode of entry 7 4.12 Autonomy in Operations 8 4.13 Conditions of Franchising. 8 4.14 Restaurant Ownership 8 4.2 Location 9 4.21 Mission as the Guiding Principle. 9 4.22 Market share 10 4.23 Pricing Strategy 10 4.3 Functional Strategies 11 4.31 Marketing Problems 11 4.32 HR Problems 11 4.33 Training 11 4.34 Adapting to Pakistani culture 12 4.35 Promotional strategies 12 4.4 Environmental Scanning 12 4.41PEST Analysis 12 5.0 Conclusion and Recommendations 14 6.0 References 16 Abstract In this age of internationalization, people are able to share any kinds of food from different parts of the world, thanks to the global business of food and beverage companies. As the leading driver of global growth in consumer food service...
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...Executive Summary This documentation is mainly about the business operation of McDonald’s in India & how it applies their operation to interact with external environment. This discussed about the Porter’s five forces of models to imply the company’s strategies in details that helps to access the competitive environment in India. PESTLE analysis will give also the details about Political, Economic, Sociocultural and Technological, Environmental and Legal analysis and effects of this analysis on McDonald’s. Dunning eclectic framework provides to complete country’s advantages that helps the McDonalds to analysis India on the basis of how attractive India is in terms of market potential and investment risk.The study conducts a comprehensive study on the MacDonald which is one of the major players in the food services industry in India. The research tries to develop a case study which studies McDonalds and its business process very closely with a greater emphasis on major activities which it carries out in India. We have also discussed about market entry strategy of MacDonald in India. Usually McDonald’s follow franchising of entry mode but in India they followed the joint ventures of entry mode. They choose a busy residential area VasantVihar. Internationalization theory is also provide a prominent theory in international business regarding how firms expand overseas & it suggests that firms minimize the uncertainty associated with going abroad by adopting some kinds of internationalization...
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...Task 1 Organisation Definition of Organisation “A social unit of people that is structured and managed to meet a need or to pursue collective goals. All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assign roles, responsibilities; and authority to carry out different task.” (Sources: http://www.businessdictionary.com/definition/organization.html) From that statement, my understanding about organisation is a group of people that is specifically organised within their area and cooperates with each other within the group or usually define as a group of people working together to achieve common goal. Diagram 1.0: Example of chart of McDonald’s organisation As an example, in McDonald’s restaurant, there would be restaurant manager that monitor the restaurant with the help of first assistant manager. Then there would be second assistant manager that trains the trainee manager that comes from shift running floor manager. Before that, floor manager also has to train the trainee floor manager that comes from training squad. The crew member that works to serve the customer also has to train the trainee worker. Types of Organisation Diagram 1.1: Example of Types of Organisation There are 3 types of organisation that I am going to explain which are public sector organisations, private sector organisations and voluntary sector organisations. Firstly, public sector organisations are...
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... * Health conscious people seldom complain that they do not provide us with the organic and healthy food. This becomes their weakness when they get in the complaints * They also face quality issue at times. This affects the business as they are running the outlet worldwide, if one franchise gets affected others also get a bad name Strength * McDonalds holds a very strong brand name worldwide * They have large partnerships with other companies that provides them with their desired products, this increases the goodwill of the company * Socially responsible firms earn a good name in the market due to their projects they do to help people, McDonalds is one the most reputed firms who are socially responsible * It is said that McDonalds was the first food outlet to provide its customers with nutritional facts * Loyal employees and management and customers is their biggest strength * McDonalds makes sure that cultural and regional barriers are kept in mind while providing food to different countries * Clean environment and play areas for children...
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...Pollution Prevention in Corporate Strategy NATIONAL POLLUTION PREVENTION CENTER FOR HIGHER EDUCATION Case A: McDonald’s Environmental Strategy Susan Svoboda, manager of the University of Michigan Corporate Environmental Management Program (CEMP), prepared this case under the guidance of Stuart Hart, director of CEMP and assistant professor of Corporate Strategy and Organizational Behavior at the U-M School of Business Administration, as the basis for class discussion rather than to illustrate either effective or ineffective handling of an adminstrative situation. This document may be used by either students or faculty for background information. Introduction Rooted in Ray Kroc’s founding principles of Quality, Service, Cleanliness & Value (Q.S.C.&V.), McDonald’s management has always believed in being a leader in issues that affect their customers. This philosophy is evident in McDonald’s involvement in various community projects regarding education, health care, medical research, and rehabilitation facilities. These activities help the corporation to extend their image beyond fun and entertainment into social responsibility. However, in the late 1980s, McDonald’s began to face criticism for its environmental policies, especially those surrounding polystyrene clamshell containers. In 1987, McDonald’s replaced CFCs, the blowing agent used in clamshell production, with weaker HCFC-22’s after facing public criticism that CFC usage was contributing to ozone depletion. But...
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...Mcdonalds in India full Assignment Mcdonald is the world famous fast food restaurant.The idea of mcdonald’s was introduced by two brothers Mac (Maurice) and Dick (Richard) Mcdonald in California.their father Patrick Mcdonald in 1937 was having a hot dog cottage called as Airdrome restaurant near the airport.In 1940 the restaurant was renamed as Mcdonald’s Famous Barbeque.In 1940 both brothers came to a conclusion that most of their profit comes from selling hamburger so they made their menu very simple by selling only Hamberger,cheeseburger,soft drinks French fries and apple pie.in 1954 a turning point came in mcdonald’s brother history.Ray kroc a seller of Multimixer milkshake visited mcdonald and he liked the idea of mcdonald.Mcdonalds corporation was build in those times and as a result kroc started expanding their business by opening franchises for mcdonalds.1960 mcdonald’s advertising campaign “look for the golden arches” gave mcdonald’s sale a big boost.1965 mcdonald corporation went public.in 1968 mcdonal open its 1000th restaurant.1974 mcdonalds started their business in UK and Newzealand.in 1980 mcdonalds was facing very big competition from its rival Burger King and Wendy but mcdonald with its innovation was experiencing boost in its sales.in early and mid ninties mcdonalds was having decline in their sales and as a result they start improving their business.taste was improved and some new menu items were introduced.Mcdonald introduced first Kosher Mcdonald in...
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...Rais Thi Minh Vo I. INTRODUCTION 1. Practical Issues to be considered II. INTERNATIONAL HUMAN RESOURCE MANAGEMENT III. COMPANY EXAMPLE: Mc DONALD’S 1. Background 2. Managing Diversity 3. Competitive Advantage IV. Mc DONALD’S IN INDIA V. Mc DONALD’S IN CHINA 1. Training Local Staff 2. Fast Food wages scandal in China VI. CRITIQUES 1. Arguments in defense VII. CONCLUSSION VIII. REFERENCES I. INTRODUCTION The report is a discussion of the different perspectives of labor relations in McDonalds located in 2 different countries, which are India and China. Our report is partly based on some aspects of ‘Managing Diversity’ in the workplace and also about International Human Resource Management. The topic is quite complex. The management of this global company involves dealing with cultural issues but at the same time sharing similar practices. The first part of this report contains the case study which involves some aspects of how McDonald’s manages diversity and also the techniques in the HR department which allow the company to leverage diversity to their advantage. The main point that should be considered in the analysis of the organization is whether or not McDonald’s is effectively integrating culturally diverse employees. We try to answer this question based on relevant theories of diversity. 1....
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...1. How would you define the industry to be analysed? The industry is the world’s largest chain of hamburger fast food restaurants. Core activities are selling hamburger, desserts, and beverage. 2. Is the industry global? Yes since customers around the world can get McDonald’s product and service easily. This can be evidence from figures in table 1 and 2 (generated income from US, Europe, APMEA, and other countries and corporate. 3. Is the organization mentioned Australian or overseas based? The organization is local based. All the outlet located in overseas are operated by their franchisee and close monitor by franchisor. 4. Can you make any inferences about the industry value chain from the article? Raw material – raw material processing – outbound logistics - marketing and sales – services 5. What are the key product and services segments in the indsurty that are mentioned in the article? Hamburger, desserts and beverage. 6. Are you able to identify the stage of the industry life-cycle from the facts in the article? McDonald is in growth stage. This is demonstrated by global comparable sales increase 5.6%, operating income grew by 10% constant currencies and McDonald’s has delivered 35% total return to their investors resulted top performing company in the Dow Jones Industrial Average for 2011. McDonald has primarily concerned on keeping up with the current demand by expanding menu offerings, modernizing the customer experience, and continues...
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...organization that I believe everyone is familiar with, fast food chains such as McDonalds; this is a fast paced environment and requires quick thinking and previous management skills. If a manager is hired onto McDonald’s work team and has not had any previous training or does not have any management skills, say for instance there is a small disaster within the establishment, this person is not going to know how to act or handle the disaster which could potentially spiral into an even larger problem. This is an example of how well the internal factors are within an establishment. It is very important for an establishment to have all four functions of management in place. “The major four function of management involve planning, controlling, organizing and leading. These functions can be affected by the internal and external factors in a business environment ("External and Internal Factors", n.d.).” “The internal and external factors which have influenced organizational functions in a lot of ways are ethics, diversity, innovation, technology and globalization, which have significant impact on laying out organizational functions, and can have a great impact on the organization's well. The four functions of the organization include; planning, organizing, leading and controlling. The external and internal factors can be strongly influence all the four functions of the organization as the organization are required to make sure that they are properly addressing all their functions in order to...
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...to do it. It comes from the word motivate which Webster dictionary defines as to provide something with a motive. Motivation is therefore the act of inspiring or stimulating someone to do something. In his book “Great Motivation Secrets of Great Leaders”, John Baldoni says that motivation is that art of getting somebody do what you want them to do because they want to do it (Baldoni 7). Managers have a duty of motivating their employees so that they can achieve not only the goals of the organization, but also to meet their own personal goals. This is the trend with the modern organizations where the policies implementation boards in these organizations, seek ways to support this aspect (McClelland 467). There are various factors that influence why employees may be motivated. It is these factors that researchers have used to develop what is referred as the motivation theories. For example, in incentive theory, rewards may act as an incentive to motivate an employee. However, the real motivation comes from within and this factor has been used to develop what is commonly referred as the intrinsic theory of motivation. This paper examines differences between content and process theory. In examining these theories, it is important to look first at how they are developed. Process theory focuses sequence of events referred as the state process that leads to a certain outcome. When used in the context of Motivation theory, this theory seeks to explain the means by which human needs...
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...[pic] McDonald's and the Environmental Defense Fund: a case study of a green alliance Sharon Livesey Originally published in…The Journal of Business Communication • January 1999 In 1987, the United Nations World Commission on Environment and Development, which had convened to address the global ecological crisis, produced Our Common Future (the Brundtland Report). This watershed event established the conceptual underpinnings for environmental politics and debate in the 1990s by reframing the problem of the natural environment as one of sustainable development. In the wake of this reframing, a new practice in environmental management emerged - that of green alliances or partnerships between business and ecology groups (Westley & Vredenburg, 1991, pp. 71-72). These alliances, considered one of the ten most significant trends in environmental management and the greening of industry (Gladwin, 1993, p. 46), appeared to signal a sea change in the way business, as well as environmentalists, could respond to the ecological impacts of firms' economic activities. Indeed, environmental partnerships offered both business and ecology groups the potential for a new rhetorical stance. Business communication scholarship has identified a variety of rhetorical strategies adopted by corporations in the face of environmental controversy: defensiveness and apologia (e.g., Ice, 1991; Tyler, 1992), competing information campaigns (e.g., Lange, 1993; Moore, 1993), or retreat (e.g., Seiter...
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...increased demand for imported goods, and lowered international trade barriers. Joseph (2006) stated With record harvests being in developed countries it is somewhat easier to enter because they usually have fully development communication, distrubution,and transportation systems to name but a few facilities factors. Most successful global business are aggressively building their global strategies around, common technology used in many markets particularly in areas of information technology, when they high cost of research and development that must be recovered through sales in many countries. BACKGROUND OF THE COMPANY McDonald’s is one of the top restaurant chains in the world, touching the lives of people every day. The long journey of the burger brand started in 1940, when two brothers, Dick and Mac McDonald opened the first McDonald’s restaurant in San Bernardino, California(Shamise, J. & Eisner, A, 2007, p. c890).Initially, they owned a hotdog stand, but after establishing the restaurant they served around 25 items, which were mostly barbequed. It became a popular and beneficial teen hangout. In 1948, the brothers closed and reopened the...
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