Beruflich Dokumente
Kultur Dokumente
PRESENTED BY:
SHIVANI KHANDELWAL
SHUBHAM BHATNAGAR
(MBA 2ND YEAR)
TECNIA INSTITUTE OF ADVANCED
STUDIES
INTRODUCTION
Company name – McDonald’s Corporation
Position of the company in 2005 – more than 30,000 local restaurants serving more than 50 million
Competitors – Yum Brands(A&W Restaurants, Kentucky Fried Chicken(KFC), Long John Silver’s,
To understand whether
To analyse the efforts
the initiatives taken by
of McDonald's in
McDonald's would help
changing its image as a
change its image as a
poor employer.
poor employer.
In 1937, two brothers, dick and mac BACKGROUND
McDonald (McDonald brothers)
opened a 'hotdog' stand called the air
dome in Arcadia, California.
In 1948,the brothers then started
offering a simple menu of hamburgers,
French fries, and milkshakes, produced
on a continuous basis unlike other
restaurants.
Food was thus served almost
instantly in paper bags - a new idea
that dick called "fast food".
In 1955, Kroc opened a McDonald's franchisee at Des Plaines, and
subsequently became a national franchisee agent for McDonald's.
Kroc was hence called the Founder of McDonald's chain.
In 1961, Kroc purchased the company from the McDonald brothers
for $2. 7 million and Kroc renamed the company ‘McDonald’s
Corporation’.
McDonald's expanded to other countries and also in the US through
company-owned stores and franchises.
McDonald's Profit Margins for Franchised Stores
Compared with the average margin of 15% from company-operated
restaurants, franchised operations retained an average of 80% of revenues in
profit for McDonald's
• Poster campaign
MCDONALD • Letter to media organisation
• Redefined McJob
PEOPLE • Perception was changed
Strengths • Weakness
• Start selling burger with the • The company is against the
cost of 15 cent. unionization.
• Produced on continuous • Poor working condition
basis unlike other • Low wages
restaurants. • Discriminations
• Followed assembly line • No fixed hour for employees
method of Henry ford • Harassment at the workplace
Opportunity Challenges
• During the saturation in the • Even after facing lots of
US market, McDonalds criticism and anti-campaigns,
focussed on overseas the company never bear loses.
expansion. • Gave fines several times after
• At that time, its restaurants losing court cases.
were growing at a rate of • Staff Turnover rate was 130%
about 500 per year. and manager turnover rate
was 42%
McDonald's performance was based:
• on its brand image,
• its exponential historic growth,
• the taste of its food.
However, since the 1980s, the company was
CONCLUSION also being known for its various unethical
practices such as:
• promotion of fast-food,
• the unethical targeting of children,
• animal cruelty,
• damage to the environment and
• exploitation of workers.
The company faced several protests, boycotts, pickets, strikes,
lawsuits and campaigns throughout. It gave fines several times after
losing court cases but it never affected them financially.
McDonald's always seemed to be ignorant about its image as an
'unethical company'. But, after the McJob definition featured in
Merriam- Webster's collegiate dictionary in June 2003.
The company wanted to redefine ‘McJob', and also to dispel the
'misconception' among people about its performance as an
employer.
Hence finally, McDonald was able to revitalize their poor employer
image.
FUTURE SCOPE
At the end of 2006, the company achieved success in re-improving its
poor employer image…………
But this could happen again in the future if the organisation not
followed Employee-centric approach while formulation and
implementation of its policy.
In the particular research by Adrian, it was revealed that 72% of the
parents noticed positive change in their children attitude after
working in McDonald’s. but what about other 28% of the parents?
• For this the company should adopt some more initiatives like
worker’s participation in management, employee engagement
activities, introduce employee friendly policies, promote
workforce diversity.