...ORGANIZATIONAL BEHAVIOR Dr. Supra Wimbarti, M.Sc. Case 1 McDonald’s Corporation ADITYA DERILYAWAN –10/323133/PEK/15683 FITRI DWI ASTUTI – 10/314156/PEK/15695 PRISCA OCTAVIA INDRAWATI- 10/314167/PEK/15706 YANUAR HERU PRAKOSA – 10/324176/PEK/15717 MASTER OF MANAGEMENT UNIVERSITAS GADJAHMADA 2011 Introduction : McDonalds is the world’s largest restaurant chain. Its innovative marketing, superior products impeccable operations, and devoted franchisees have set the standard for the fast food industry. The company philosophy of Q,S,C,&V (quality, food; fast, friendly services, restaurant cleanliness, and a menu that provides value0 and its family oriented image are the product of Ray Kroc. In addition, it is one of the world’s most recognized brand names, along with coca-cola, Kodak, Gillette, Sony, and Walt Disney Operations in over 20 countries highlight the truly global nature of McDonalds in the new millennium. The first McDonalds was a drive-in restaurant started in san Bernardino, California by two brothers, Dick and Mac McDonald, in 1948. Ray Kroc, the man who made McDonald brothers solh the company to Ray Kroc in 1961 for $2.7 million. In 1999 alone McDonalds generated more than $13.2 billion in total revenues. The company menu, which originally consisted only of hamburgers, cheeseburgers, French fries, sodas, milkshakes, milk and coffee, has grown considerably since. A more technical definition of McDonalds is an organization that develope, operates...
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...are assuming the costs rather than increasing the cost of food for consumers. According to Jim Yin (n.d.), CFA, “Year to date through February 17, the S&P Restaurants Index was up 4.4% versus an 8.7% increase for the S&P 1500 Index. In 2011, the sub-industry index outperformed the 1500, with a gain of 27.9% versus a 0.3% decline.” Financial Position of McDonald’s Corporation (MCD) McDonald’s Corporation (MCD) is the leader in global foodservice retail with more than 33,000 restaurants worldwide and 1.7 million employees in 119 countries (“McDonald’s Corporation”, 2012). Approximately 68 million people eat at McDonald’s each day (“McDonald’s Corporation”, 2012). With international growth and globalization on the rise for many quick service restaurants, such as Starbucks and Yum!, McDonald’s Corporation has also taken advantage of worldwide global growth. McDonald’s has grown their market in China, India, and other foreign countries (Murphy, 2011). According to Standard and Poor’s (2012), McDonald’s Corporation revenues have increased from $22.7 million in 2009 to $27 million in 2011. Additionally, McDonald’s operating income has increased since 2006 and their cash flow and current assets have increased steadily since 2009 (Standard and Poor’s, 2012)....
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...McDonald’s Corporation Overview As the world’s largest and most devoted restaurant chain, McDonalds has become a model of superior and dedicated operations in the franchisee industries. “McDonald’s restaurants started in 1948 with two brothers Marc and Dick McDonald in San Bernardino, CA it was the first drive- in for the franchisee. Later in the business they hired Ray Korc to become the franchisee agent and with his help McDonalds became a franchisee known in every household. Today, the McDonalds organization is a world-wide franchisee that operates in 120 countries. McDonalds is defined as the organization with a worldwide system to create menus for all cultures. The franchisee operates under a system that prepares, assembles and packages quickly prepared foods that sold at a moderate price. “This system McDonald’s created is the largest fast-food system in the world the company has pioneered food and quality specifications (HRM pg.625).” With McDonalds serving countries across the world for decades and in to the New Millennium revenue reached 22.8 billion in 2007. Financial Information in August of 2014 McDonalds has faced a crisis with shrinking sales “In 2013, McDonald’s reported a decline in U.S. “sales and a big drop off in customer traffic, breaking a 10-year streak of gains in a market that generates 30% of sales.” McDonald’s restaurants are seeing a decrease in sales this has to do with the economy customers are looking for lower prices on the menus. The 2013...
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...Running head: MCDONALD’S CORPORATION 1 McDonald’s Corporation Your Name Name of Institution MCDONALD’S CORPORATION 2 McDonald’s Corporation Executive Summary McDonald’s restaurant was founded by Maurice and Richard McDonald, two brothers who started the restaurant’s legacy as a small business in California that served milkshakes and hotdogs. The McDonald brothers soon introduced hamburgers to their restaurant menu, after reevaluating the business. In addition, the brothers implemented what they called the “speedy service system,” and this was comprised of an all-male staff working in an assembly line manner while serving customers from a 9-item menu. The McDonald’s business concept expanded rapidly and the first McDonald’s franchise was sold to Neil Fox in 1952. Mr. Fox opened a Phoenix, Arizona restaurant. The second franchisee was Ray Croc, who was the most successful franchise agent in the United States. Since its launch, McDonald’s Corporation has undergone several problems due to mismanagement, poor marketing, increased competition, and noncompliance of franchisees. Facing these problems has resulted in the corporation implementing new business strategies aimed at improving the corporation’s performance in an industry of competitors (Kerry, 2010). This paper focuses on how the corporation’s management and leadership used the adoption and implementation of strategic initiatives to attain its current status. Planning McDonald’s soon saw competition from...
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...Assurance of Learning Exercise 3D McDonald's Burger King Holdings Yum! Brands., Inc. Critical Success Factors Weight Rating Score Rating Score Rating Score Advertising 0.20 3 0.60 2 0.40 2 0.40 Product Quality 0.10 2 0.20 2 0.20 3 0.30 Price Competitiveness 0.10 3 0.30 3 0.30 2 0.20 Management 0.10 3 0.30 2 0.20 2 0.20 Financial Position 0.15 3 0.45 1 0.15 2 0.30 Customer Loyalty 0.10 1 0.10 3 0.30 3 0.30 Global Expansion 0.20 3 0.60 2 0.40 2 0.40 Market share 0.05 3 0.15 1 0.05 2 0.10 Total 1.00 - 2.8 - 2 - 2.2 Rating * weight = score 1 = major weakness, 2= minor weakness, 3= minor strength McDonald’s strategic prospects Strengths: “McDonald’s towers over its direct competitors in the industry with a market cap of $59.8 billion in May 2009” (David, 2011, p. 33) This as compared to is competition in which Yum! Brands and Burger King. Their market shares were $16.3 billion and $2.46 billion respectively. In 2009 they open 6,650 new stores in Europe and 8,327 new stores in APMEA (Asia/Pacific/Middle East/Asia). McDonald’s corporate responsibility campaign in becoming socially and environmentally friendly is one strength. According to David, they “have been recognized for its efforts in inclusive excellence with respect to employing and creating opportunities for minorities (2011, p. 33). They have actively sought to reduce their “carbon footprint by using recycling packaging” (David, 2011, p. 33). In 2014, they were ranked 43rd on the...
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...McDonald’s Corporation Case Analysis McDonald’s has made great strides in the sustainability of its supply chain over the past few decades. From a moratorium on soya coming from farms where Amazon rain forests have been destroyed, to developing sustainable fishery guidelines to manage fish quality and quantity, McDonald’s has taken great efforts to “do the right thing” [1]. This commitment to environmental sustainability has impacted how they source from suppliers and manage supply chain management initiatives. With all that McDonald’s has done, there is still room for improvement. Engagement in sustainability efforts with suppliers has generally resulted from a call for change from activists who were negatively impacting brand trust. Acting in the best interest of society by providing healthy food alternatives to well-informed consumers also play a vital role in how the sustainable supply chain is managed. As such, the core problem facing McDonald’s green supply chain management infrastructure is that it is still reactive in nature and will always require a trade-off between societal benefit and cost minimization. One alternative to consider is for McDonald’s to become more proactive at anticipating and managing emerging issues prior to a large-scale publicity and exposure. By doing so, McDonald’s can approach NGOs and interest groups with emergent problems, using the collaborative expertise to resolve potential hotspots before they erupt. This approach simultaneously...
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...Overview: McDonald’s is the largest chain of hamburger fast food restaurants and services 68 million customers daily in 119 countries across 35,000 outlets. Company history: The company started as a bar-b-q restaurant by two brothers, Dick and Mac McDonald in 1940. In 1948, the brothers founded the McDonald’s restaurant. The menu introduced nine items: hamburger, cheeseburger, soft drinks, milk, coffee, potato chips and a slice of pie. The brothers developed a partnership with sales man, Ray Kroc in 1955 as a franchise agent for the McDonald’s restaurant. Ray Kroc founded the McDonald’s Corporation. Organization: Other than the many McDonald’s franchises being a key to the company’s success, McDonald’s utilizes what it calls a “system.” The system has allowed the company to remain proactive in identifying and implementing the many needs of its customers as well as the needs of the restaurants and the local communities it serves. Nearly fifty percent of McDonald’s corporate managers started as crewmembers as well as 60% of the owner’s operators did too. McDonald’s strives on being a great place to work with their efforts to offer workers flexibility, diversity and achievement. Many crewmembers are able to climb the career ladder towards an opportunity to invest somehow into the corporation. McDonald’s Board of Director’s includes Steven Easterbrook as the new CEO and Andrew MaKenna as the non-executive chairman. Both have been dedicated to the McDonald’s brand for many...
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...that are flexible and adaptive, particularly in response to competitive threats and customer needs. Progressive human resource practices that attract and retain the very best of a highly diverse population will be essential aspects of the successful company. Organizing activities include attracting people to the organization, specifying job responsibilities, grouping jobs into work units, marshalling and allocating resources, and creating conditions so that people and things work together to achieve maximum success (Bateman & Snell, 2009). McDonald’s Corporation McDonald's Corporation franchises and operates 32,478 McDonald’s restaurants in 117 countries employing more than 1.5 million people. In 2009 McDonald's served an average of 60 million customers every day around the world (McDonald’s 2009 Annual Report, 2010). McDonald’s uses a collaborative management approach which has resulted in the strongest global leadership team in McDonald’s history. Because of the constant cross-fertilization of ideas and innovations, their leaders have been better able to assume new challenges...
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...1940 by the original McDonald brothers, Dick and Mac. Later in 1954, Ray Kroc became the first official franchisee appointed by Dick and Mac McDonald in San Bernardino, California. Soon after, Mr. Kroc opened his first restaurant in Des Plaines, Illinois, and the McDonald’s corporation was created. The new franchise began to grow rapidly as a result of its success. It wasn’t long before the 100th McDonald’s restaurant opened in Chicago in 1961. Less than ten years after the opening of Ray Kroc’s restaurant the company began to expand all over the United States. Ray Kroc bought all rights to the McDonald’s concept from the McDonald’s brothers for “2.7 million in 1961.”[2] McDonald’s continued to have enormous growth during the 1960’s. In 1963 alone, McDonald’s sold their one billionth hamburgers, opened their 500th restaurant, “Ronald McDonald” made his big debut, and McDonald’s net income exceeded $1 million.[3] In 1966 McDonald’s was first listed on the New York Stock Exchange, and in 1967 McDonald’s went global. The company kept expanding with the introduction of the “Big Mac” and the opening of its 1,000th restaurant, which was where it all started- in Des Plaines, Illinois. McDonald’s began to mature...
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...MarketLine Case Study McDonald’s Corporation Case Study Remaining relevant in a health conscious society Reference Code: ML00001-040 Publication Date: January 2012 WWW.MARKETLINEINFO.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED MCDONALD’S CORPORATION CASE STUDY © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED ML00001-040/Published 01/2012 Page | 1 OVERVIEW Catalyst McDonald's Corporation is one of the world's largest foodservice retailing chains. The company is primarily known for its burgers and fries, which it sells through more than 32,000 restaurants in 117 countries. In 2010, the company served an average of 64 million customers per day. It primarily operates in Europe, Asia Pacific, and the Americas. The company is headquartered in Oak Brook, Illinois and employs about 400,000 people. McDonald’s has been able to successfully increase revenues and profits in recent years in spite of much negative publicity and an increasingly health conscious public. This case study shows how the company has achieved these goals in a difficult trading environment. Summary McDonald’s has, to a great extent, defied recent difficult economic conditions and continued to experience strong sales and profit growth in recent years, as it has been able to attract diners with an improved and expanded product range while remaining competitive on price. McDonald’s has been the target of much criticism in recent...
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...McDonald’s Case Analysis Nick Brown BUSN412 Business Policy May 14, 2010 CASE ANALYSIS McDonald’s COMPANY NAME: McDonald’s Corporation INDUSTRY: Food McDonald’s Corporation COMPANY WEBSITE: (www.mcdonalds.com) COMPANY BACKGROUND: Ray Kroc found McDonald’s corporation, a successful fast food restaurant, in 1955 were his vision was to create McDonalds restaurants all over the U.S, and within 3 year of establishing the franchise the corporation was already selling its 100 millionth burger. The franchise has now became a successful global fast food restaurant that sells a variety of items and has a unique philosophy that Ray Kroc envisioned with building this franchise which was “To Build a restaurant system that would be famous for food of consistently high quality and uniform methods of preparation”(McDonald’s Corporation 2009). He wanted, “To serve burgers, buns, fried and beverages that tasted just the same in Alaska as they did in Alabama”(McDonald’s Corporation 2009). The case study concentrated on the financial strengths and struggles of the franchise. With the early millennium years 2001, 2002 and 2003 the franchise seen a tremendous dip in total revenue and net profits, it wasn’t until 2007 when the company seen a turnaround in total revenue and net profits. Things were starting to look up for franchise. Currently the CEO at McDonald’s Corporation is Jim Skinner and he is providing the same vision that Ray Kroc was envisioning when he opened the doors. The...
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...The McDonald’s Corporation opened their first restaurant in Des Plaines, Illinois in 1955 after Ray Kroc had purchased the rights to the restaurant from the McDonald’s brothers in 1954. Since Kroc first established the company, McDonald’s has become one the world’s largest franchises and continues to grow daily. McDonald’s has undergone several management changes since it was opened by Kroc including supervision by Fred Turner, Michael Quinlan, Jack Greenberg, and Jim Skinner. Jim Skinner helped turn McDonald’s Corporation around after it experienced its first ever quarterly loss. Skinner initiated a tactical proposal called “Plan to Win” that turned around the company and steered the business to its best financial results ever and doubled its market value. Skinner’s efforts to clean up the decline that McDonald’s has experienced in recent years contained strategies that would allow McDonald’s to stay aggressive with its competition. Skinner concluded that the corporation would need to improve its image in order to maintain a top fast-food restaurant. Skinner decided to not open new restaurants, and instead focused on upgrading and remodeling current open restaurants. In the efforts to develop his strategy, Skinner also improved the customer service and created new menu options that matched their competitors. Customers were receptive of these changes and McDonald’s quickly renewed itself. The strategy implemented by Jim Skinner was something that McDonald’s did right. They...
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... Contents: • McDonald’s Corporation – a typical example about the success • Purpose and the importance of marketing • How marketing activities can help to contribute the success of the new launch product/service • The five-step model of the marketing process ► McDonald’s corporation-a typical example about the success. Introduction: McDonald’s corporation is the world’s largest chain of hamburger fast food restaurants which is serving around 68 million customers daily in 119 countries. A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27 percent over the three years ending in 2007 to $22.8 billion, and 9 percent growth in operating income to $3.9 billion. The company primarily sells hamburgers, cheeseburgers, chicken, French fries, breakfast items, soft drinks, shares, and desserts. In response changing customers’ tastes, it has expanded its menu to include salads, wraps, smoothies, and fruits. Goals and its past successful marketing launches: Some current McDonald’s slogans: “We love to see your smile” (2000-2003) ...
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...The McDonald's restaurant 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 and formed McDonald's Corporation. Early history In 1937, Patrick McDonald opened "The Airdrome", a food stand, on Huntington Drive (Route 66) near the Monrovia Airport in Monrovia, California.[4] Hamburgers were ten cents, and all-you-can-drink[citation needed] orange juice was five cents. In 1940, his two sons, Maurice and Richard ("Mac" and "Dick"), moved the entire building 40 miles (64 km) east, to West 14th and 1398 North E Streets in San Bernardino, California. The restaurant was renamed "McDonald's Bar-B-Q" and served twenty five barbecued items on their menu. In October 1948, after the McDonald brothers realized that most of their profits came from selling hamburgers, they closed down their successful carhop drive-in to establish a streamlined system with a simple menu of just hamburgers, cheeseburgers, french fries, shakes, soft drinks, and apple pie. The carhops were eliminated to make McDonald's a self-serve operation. Mac and Dick McDonald had taken great care in setting up their kitchen like an assembly line to ensure maximum efficiency. The restaurant's name was again changed, this time to simply "McDonald's" and reopened its doors on December 12, 1948. In 1953, the McDonald...
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...MCDONALD’S CORPORATION: THE PAST, PRESENT, AND FUTURE Table of Contents A. Introduction 3 B. Company Analysis: 1. Beginning of an Empire 2. InDepth Financials 3. Charitable Contributions C. Expansion Into Global Markets: 1. China 2. South Africa 3. Brazil 4. Saudi Arabia D. SWOT’S E. Recommendation F. Conclusion G. Sources 4 5 7 7 8 9 10 10 14 15 16 2 A. Introduction In beginning a new century the McDonald’s Corporation is looking towards the future, more specially in the area of global expansion. Gone is the traditional style McDonald’s that many people are accustomed with, McDonald’s are focusing on new innovative modifications to their menu, depending upon the regions culture, customs, and traditions. Opening coffee bars in the United States is also on the agenda for the world’s largest fast- food behemoth. McDonald’s, realizing a need for global expansion, diversified into other areas of the fast- food industry. Some of the company’s most recent and notable acquisitions were the Boston Market restaurant chain and taking a 33% stake in the United Kingdom’s Pret A Manger, a sandwich bar chain with more than 100 outlets across the United Kingdom (). When a firm decides to do business internationally, there are many considerations the entity McDonald’s weighed to choose the best strategy in going overseas. Some of the cross-cultural issues facing McDonald’s management are similar, however many practices vary depending upon which country the global...
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