McDonalds

McDonalds corporation is the world's most recognised and largest provider of

foodservice serving millions of customers daily around the world and operates in almost
37000 restaurants in more than 120 countries. It was initiated in 1940 with a restaurant
opened by brothers Richard and Maurice in California. After since its incorporation in
1955, McDonalds has sold more than 100 billion hamburgers. Franchises around the
world. Ray Kroc joined as a franchise agent in 1955, they partnered. Ray Kroc bought
McDonalds for 2.7 mil in 1961. Current CEO is Stephen James Easterbrook. (2015-
present)

a firms organisational culture defines their traditions, habits and values that influence
their workers behaviour

uses organisational culture to attract customers and qualified employees

their organisational culture emphasises HR development and eciency

organisational culture supports business growth and success in the international fast
food market

People centricity
prioritises employees needs and development and supporting people

encourages employees to engage management to help improve processes and

procedures

Individual learning

organisational culture highlights importance of lifelong learning

company oers training and development opportunities through Hamburger university

(internships, global mobility, leadership development programs)

motivates employees to keep them learning

Organisational learning

firm uses individuals learning to develop organisational knowledge to improve

businesss heights of performance

carries out meetings that encourage employee feedback and knowledge sharing

Diversity and Inclusion

wide range of diverse employees

firm has strict rules about uniform/ punctuality

all premises are cleaned before and after opening and closing time

working environment is free from harassment and unlawful discrimination- under their
diversity policy

mcdonalds corporate value has people under one of their pillars- provide training to
make employees fell valuable, enhances positive image of company and enhance
communication skills, time management, team skills etc

CSR

they sponsor many neighbourhood beautification projects

ethical animal treatment

Globalisation:
Positive impacts
as economy is rapidly booming in asian countries, it has positively aected McDonalds
business

can lead to increased employment rate in asian countries

due to technological advancements, McDonalds is performing better

low energy consumption of machinery and increased operational eciency with

Echelons LonWorks technology

technology enables franchises to create easy operating working environment, facilitate

preventive maintenance and provide new services at the same time

reduced maintenance costs due to technology

sociological factor of: increased health consciousness, high demand for high
population growth, cultural norms and career attitudes

targets middle class segment and captures niche market

made use of same logos and interior design to build brand image

helps decrease financial risks

less competition because of good brand

Technological concept:
Drive thru

Phone order/delivery 24/7

free wifi connection at branches

online networking (taking cues from Facebook)

Negative impacts of globalisation:

increased competitiveness in market- can oer special discounts etc, increased
promotion

in india, 20% population in vegetarian, removing beef products

might face problems in attracting customers

hence, modification of menu required to tailor to needs of consumers

adapting to local culture

increase in sales revenue

increase in awareness

religious law of operating in islamic countries : not consuming pork, healthy hygienic
food for customers

food inflation crisis in china- increase in prices can damage fast food industry

health consciousness: increased rate of obesity

globalisation promotes innovation and eciency

beef ban, greatly changed menu items, so did competitors

costs high due to changes in menu in every country

Innovation
constant updations in menu to be in sync with dietary needs of consumers

innovations to provide menu options that suit virtually every culinary preference

voluntarily labelling nutrition facts on meals, proves its authenticity

childrens menu options- happy meal, first entrance into market

being green: unbleached paper napkins used from recycle material One meal, one
napkin McReycle

Events: Fifa 2010 sponsorship, singapore youth olympic games 2010

McCafe

aloo tikki burger for 20 rupees, launching of street food customer for indian customers,
revolutionised food industry

Ethics
consumer packaging made from renewable materials

recycling used cooking oil

creation of environmentally friendly biodiesel

providing educational materials in their restaurant and working with teachers in school

CSR: Ronald McDonald house charities (ill children houses who are receiving treatment
from nearby hospitals programs)

accused of wage theft, poverty-level-pay and mistreatment of pregnant workers in

Brazil, resulting in protests

negative impact on environment due to hundreds of factories around the world

continued use of paper and plastic based cutlery, abusing environment by cutting
down trees etc

selling unhealthy ingredients

CSR: investment in eye care hospital

However, employees compare of wage theft, bad working conditions, poor

management, leads to negative advertising and PR

Ethical issues with food: giving cows steroid to make more beef

Motivation
makes uses of financial encouragement, non financial encouragements and social
policy

they follow performance related pay philosophy to encourage employees

Marketing strategy
ATL: billboards, tv advertisements

highly focuses on internal marketing

slogan im loving it

short names of products so that people remember it- big mac

Sales promotion: distribution of free coupons, functions events, twitter contests

Public relations

Direct marketing: telephone marketing, email, websites

Personal selling: customer feedback, face to face communication

celebrity endorsements
Change:
Healthy breakfast

Renovating restaurants to make it more modern and progressive (can attract younger
generation)

Culture:
omit pork and beef in menu in India

Strategy:

The company deals with 3 strategic issues.

1. How to deal with the growing competition

2. How to deal with financial issues such as high franchisee fees in contrast with
geographical expansion goals

3. How to deal with the worldwide economic crisis

They use aggressive marketing strategies

Financial issues are dealt with the spreading of risk through globalisation.