McDonald’s

Corporation

Ariyani Deboranty
Jumran
Ophy Quamilla
Patrick 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 company
1967: McDonald opened the 1st franchises outside U.S., in
Puerto Rico and Canada
1999: 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 Diversity
McDonald’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

Recruitment
Recruitment, Selection and Retention
Training and Development
Hamburger University
Benefit
Profit Sharing
 Accomplishments

Domination of Industry
Growth
International 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 McD
Philosophy Concept Conflict
To be the best Using students as For some areas,
employer for its worker, short the concepts
people in each work hours. were not working
community and led
around the employee to
world. dissatisfaction.

Example: Brazil
 Conflicts

McD McD
Philosophy Concept Conflict
To deliver Franchise A tight control
operational structure reduces system with strict
exellence to its control, makes regulations is
customers in monitoring difficult to run in
each of its performance a company with
restaurants more difficult franchise
organisation
 Human Resource
Issues
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
T I ONS?
QUE S