1.

0 Introduction
McDonalds Corporation is the world’s number 1 fast food chain, Richard and Maurice

McDonald started this business with a restaurant in San Bernardino California in 1940. Now a

day McDonalds serving more than 56 million customers every day.

There are more than 30,000 restaurants operated by McDonalds worldwide in which more than

80% are operated as franchise and less than 20% are owned by company.

1.1 Company profile

McDonald’s is the leading global food service retailer with more than 34,000 local restaurants

serving approximately 69 million people in 119 countries each day. More than 80% of

McDonald’s restaurants worldwide are owned and operated by independent local men and

women. Its goal is becoming customer’s favorite way and place to eat and drink by serving core

favorites such as the world famous French Fries, Big Mac, Quarter Pounder and Chicken Mc

Nuggets.

1.2 Reporting Segments

The business is managed in distinct geographic segments that include:

 US

 Europe

 Asia/Pacific, Middle East and Africa (APMEA)

 Other Countries & Corporate(OCC) including Canada, Latin America and Corporate

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1.3 Company Background
History of McDonald’s

McDonalds is a global food service industry, which began its operations in the 1940’s. The

concept of McDonalds was introduced by Brother Dick and Maurice McDonald, by opening a

‘hamburger stall’ in San Bernardino, California. They introduced an idea of selling their food

cheaper than competitors by saving on the car hops and persuading customers instead to go to a

counter to order their food. This concept helped in faster turnaround of the customers. The major

domestic growth of McDonald’s in USA began in 1960’s, as there was a demand of cheap

takeaway food. Through the franchisee concept, McDonald’s made a move toward worldwide

success.

Today the Company operates in more than 117 countries worldwide, serving more than 50

million customers per day. The company’s retail outlets are either owned by the company or by

franchisees. The company focuses on delivering high quality and value to its customers through

its services, product range and constant quality check of its products

1.4 Mission
McDonald's brand mission is to be our customers' favorite place and way to eat. Our worldwide

operations are aligned around a global strategy called the Plan to Win, which center on an

exceptional customer experience – People, Products, Place, Price and Promotion. We are

committed to continuously improving our operations and enhancing our customers' experience.

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2.0 Organizational Culture:
An organization has a personality which we call its culture. And that culture influences the way

employees act and interact with others. First culture is a perception. its not something that can be

physically touched or seen, but employee perceive it on the basis of what they experience within

the organization. Second, organizational culture is descriptive. Its concerned with how members

perceive the culture and describe it, not with whether they like it.Finally, even though individuals

may have different backgrounds or work at different organizational levels, they tend to describe

the organization’s culture in similar terms. That’s the shared aspect of culture.

In many organizations, one cultural dimension often is emphasized more than the others and

essentially shapes the organization’s personality and the way organizational members work. All

organization has culture, but not all cultures equally influence employee’s behaviors and action.

So there are two types of culture:

2.0.1 Strong culture: The features of strong culture are-

 Value widely shared

 Culture conveys consistent messages about whats important.

 Most employees can tell stories about company history or heroes.

 Employees strongly identify with culture

 Strong connection between shared values and behaviors.

 Employees are more loyal.

 Employee quickly take care the problem

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2. 0.2 Weak culture: The features of weak culture are-

 Values limited to a few people usually top management

 Culture sends contradictory messages about what is important

 Employees have little knowledge of company history or heroes

 Employees have little identification with culture

 Little connection between shared values and behaviors

 Employees are not loyal.

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3.0 McDonald’s Culture
McDonald’s is committed to business culture on the well-being issues so many of their

customers care about. Mc Donald’s are focusing their efforts on menu choice, physical activity,

and consumer information. Mc Donald’s culture is focusing giving back to their community and

it is a way to return customers’ loyalty. They take social responsibilities and commitment to

diversity seriously.

3.1 Strong culture of McDonald’s

Driven by the rich culture that covered its position as a leading restaurant in the global market,

McDonald’s commitment to its workers and commitment to the community keep on to be the

brand of its current accomplishment.

3.1.1 Products

McDonalds provide high quality products, such as burgers, fries, drinks, muffins, etc, which are

safe and reliable that it does what it is supposed to do, but not only does the quality of the

products matter, the good value for money affects the business. E.g. buy one extra value meal

and get one free with a food voucher that represents the offer only. The products of McDonalds

are safely packaged when it is required for the product, in order the customer does not have any

problems or and negative feedbacks to McDonalds. E.g. hot coffee cups have plastic lids on top

so it does not spill or burn on the customer. Also, McDonalds ensure to offer nutritional guide of

the product clearly state what the product contains.

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 3.1.2 Staff

However, not only the high quality standards of food affects the business, the staff who are

presently providing the service are entitled to establishes him or her self with their tone (the

sound of the voice), manner (the level of maturity), language and body language well enough to

satisfy the customer and to make them appreciated of feeling more welcomed and values them as

a proper customer. E.g. if a customer was about to speak the staff operating the till would say

‘hello, may I take your order please,’ and when their products are given ‘Thank you and please

come again.’

3.1.3 McDonald’s uniform

McDonalds’s staff are in uniform, which may include blue top, jeans or trousers and a cap with a

the company’s logo on each item so the customer can easily recognise of who to go for ordering

and help during their presence in McDonalds

3.1.4 Premises

All premises in McDonalds are cared for very much and are cleaned before opening times and

after closing times. These are well sign posted with safety signs so to ensure the customer does

not endanger him or her self in any way. Also these premises are quite spacious which customers

can easily work through for their own needs. Some McDonalds have two floors. And some has

one floor, but it is quite spread out which contains tables and chairs on the side of the walls, so

the customer can easily walk through. High chairs, baby changing area and disabled toilet,

normal separate toilets for men and women.

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 3.1.5 Deliver

McDonalds do not deliver their goods as it is not recommended as a customer service in the

business, but if a customer were to have a disability, their goods would have been delivered by a

member of staff on their own free will.

3.1.6 after sales care

This basically consists on the employee asking the customer if he or she is satisfied, both with

the company’s goods and the service that it provides. Minor complaints are solved by staff on

duty that apologize for the problem, provide the help or assistance required to check the

customer is satisfied. E.g. the drink was flat, which the customer complained, so the staff had to

give the customer another drink. If the problem is more serious, then it is referred to the manager

immediately, so the problem is solved efficiently. Also if the product is quite cold, the matter

will be resolved by a simple exchange for the same product without any hesitations.

3.1.7 Payment

McDonalds do accept cash and cheques as a payment method but they do not take credit cards

although there are ATM machines available outside most stores so the money can be obtained

from the credit card easily.

3.1.8 Communicating with customers

Staffs are encouraged to look straight at customers and not cover the mouth when they are

speaking to them. Allowing extra time, and repeating back to the customer to check accuracy and

understanding, can benefit customers with learning difficulties and with speech impairments..

When the customer is in need of help staff would communicate to guide them through the food

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outlet but the customer may not be able to speak good English which the staff may intend to

speak the language like urdu, so this is a form of verbal communication in another language.

3.1.9 Working Environment:

McDonald’s Diversity policy promotes and sustains a working environment which is free from

unlawful discrimination, harassment and bullying. McDonald’s regards all of its employees as

members of a team where everyone’s opinion is valued and everyone is regarded as equal in

status, and must always be treated with respect. The Company understands, accepts, respects and

values the differences that make each person unique.

The Company aims to make sure that no job applicant or existing employee is treated less

favorably on the grounds of their gender, marital status, disability, race, colour, nationality,

ethnic origin, religion or belief or sexual orientation and that no one is disadvantaged by

conditions, requirements and policies that cannot be shown to be just and fair.

3.1.10 Corporate & Work Culture:

When analyzing an organization’s it is useful to first analyze the organization’s work culture and

how this culture is maintained. The work culture of McDonald’s seems very much dependent

upon the particular line manager in charge at any given point in time.

3.1.11 Training:

McDonald’s corporate management believes in training and leadership at all levels. McDonald’s

founder Ray Kroc’s training focused ideology: If they are going to go anywhere, they’ve got to

have talent. And, they are going to put their money in talent. This ideology demonstrates that

McDonald’s does not consider its restaurants’ crew members are just gears in a machine that can

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be easily replaced. Because training is not just offered to executives or managers, McDonald’s is

able to spread and reinforce its culture and values in all directions, not just downward.

McDonald’s corporate values also have “people” as one of its pillars. By addressing employee’s

higher needs by providing training they create employees feel important and valuable. Training

also serves to reinforce the culture at all levels through education and fostering a positive image

of the employees’ importance to the company. It also help to enhance employees

communication, time management, team and practical skills.

3.1.12 Diversify:

One of the most influential changes came with the introduction of fast food restaurants like

McDonald’s into foreign countries. Transformations have taken place which could be perceived

as beneficial or corrupting to that culture.

The globalization of McDonald’s has raised many debates on both sides of the issue. The pro-

globalization belief is that it enhances culture rather than adulterate. The McDonald’s has

conformed to the local culture not the other way around. The McDonald’s corporation notes that

most of its overseas franchises are locally owned, and thus make efforts to buy from local

communities. McDonald’s also alters its regional menus to conform to local taste.

There has been a loss of traditional values with the introduction of nontraditional food into the

culture of foreign countries. The types of foods are symbolic to particular regions, religions and

mores. In India, to the Hindu people, the cow is considered to be sacred as part of its religion.

Although a number of religions exist in India, the two cultures that have influenced Indian

cooking and food habits are the Hindu and the Muslim tradition. With the introduction of non

traditional foods into this society, as with many others, there are adverse effects on the traditions

it tries to uphold.

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 3.1.13 Social Responsibility and Community

Perhaps the single most important thing to consider in a McDonald's culture is the role they play

in the community. After all, the people they know, meet, serve, hire, or greet are all part of it. To

promote social awareness, they have many collaborations and partnerships. First of all, they

sponsor countless neighborhood beautification projects around the world each year. They’re also

extremely proud of their long-standing children’s programs, like Ronald McDonald House, that

continue to remain very strong and benefit so many. Created in 1974, Ronald McDonald House

provides a “home away from home” for families of seriously ill children who are receiving

treatment at nearby hospitals. There are now more than 245 in 28 countries. Even the very

operation of a single restaurant can fuel the economy of a local community. Simply put, they’re a

big part of our neighborhoods–that’s where they’re from. Naturally, they want to help care for

them.

3.1.14 Responsible Purchasing

They believe in culture by example. Their policies and guidelines strive to make the world a

safer, better place. When it comes to animal welfare, McDonald’s is an industry leader. Take

their Farm-to-Counter food safety system–a program that monitors critical aspects of all their

processes and serves as the benchmark for animal treatment throughout the industry. In addition,

they have taken the lead in preserving the effectiveness of antibiotics that are important to both

human and animal health. When it comes to toy safety, their record far exceeds the record for the

toy industry overall. Also, thanks to their many supplier guidelines and expectations, they ensure

the vendors they work with are serious about their commitment.

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 3.1.15 Protecting our Environment

Keep the planet clean and green. That's their practice and they strongly stick to it. By

understanding that consuming and recycling go hand-in-hand, they created a Total Life Cycle

approach to waste. For them, it’s important to consider the environmental impacts of their

products at every stage, from the production and harvesting of the raw materials through final

disposal. They’re also proud to employ a strict rain forest policy and do not source any beef from

recently deforested areas. Most recently, they we initiated a program on environmental resource

sustainability, providing clear principles and goals on how to preserve the world in which we

live.

3.2 Weak culture of McDonald’s

Although McDonald's is one of the fastest-growing and strongest-performing companies in the

world, it isn't immune from the concerns of other businesses. In terms of the business

management of McDonald's, the following are all weaknesses that the company will be trying

hard to address:

3.2.1 Staff turnover rates

Although official figures are not published, recently an article suggested that McDonald's staff

turnover among crew members is at the 80-90% mark. McDonald's employs many temporary

and seasonal workers (like students), but this figure seems incredibly high to me.

3.2.2 Putting less effort to train its human resources as multitasked

McDonald’s owes its success to its team functionality rather than the efforts of one individual.

McDonald’s does not have very highly integrated teamwork, but they would be unable to deliver

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their products and service without sufficient team unity and cooperation. The team on the floor

of a McDonald’s restaurant is best described as a functional team .Team members have one area

that they focus on during their shift. If they leave their post or are not productive, other line

members will not be able to accomplish their jobs and the production line will suffer. For

example, when a customer enters the restaurant places an order with the cashier, the later inputs

the order into the computer and the information is displayed in the kitchen at the sandwich and

grill stations. The grill worker prepares the meat and then places the burger on a bun. The

sandwich maker then assembles the sandwich according to the type of sandwich and any

additional requests the customer has. If the sandwich maker leaves his post, another worker has

to cover for him or the entire product delivery process shuts down. As a result, a McDonald’s

restaurant team is sequentially interdependent. Without everyone working together and having

sufficient motivation to provide good and quick quality service, all members of the team fail. As

a result of one person losing motivation or failing to adequately perform his duties, customers

may complain and business can be lost. Even though most employees are trained to perform

multiple tasks at various stations, they are not usually able to perform all of these tasks

simultaneously.

3.2.3 Quality and standards issues

If you consider the cost of training a crew member and the fact that peak performance will only

occur after several months in the job - to have many people quit their job only months after

starting with the company suggests a major weakness in the company's employment strategy.

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 3.2.4 Public perception as a 'junk food' brand

Other challenges that McDonald's faces is public image of McDonald's. This could also be seen

as a weakness. Many think that it destroys cultures by making people addicted to cheap, fatty

food and also contributes toward obesity and heart diseases.

3.2.5 Its ability to expand into more profitable markets

Although the brand is instantly recognizable, and huge profit is garner through its brand

familiarity, many people still perceive McDonald's as offering poor quality or unhealthy food.

McDonalds has been forced to shut restaurants in areas where the locals are health conscious.

This is a negative connotation that the company struggles with across the world.

3.2.6 Demographic target

Another weakness that McDonald's currently suffers from is that its major demographic target is

the one with the least disposable income. In many cases, McDonald's products are targeted at

children - who obviously earn no money, and have little purchasing power.

3.2.7 Risk tolerance

It means the degree to which employees are encouraged to be aggressive, innovative and risk-

seeking. McDonalds does not take risks. It still offers the same menu as when the chain opened.

The only time McDonald’s changes are when it is forced to make a change due to regulation or

public analysis.

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 3.2.8 Accountability

McDonalds needs to be more accountable to implement its strategy. If it is going to offer

“healthy alternatives” for children, make them healthy not full of sodium, colors and

preservatives. It should publicly announce a change in menu- become a healthiest fast food

supplier on the globe.

3.2.9 Change averse

McDonalds has very strong values that do not fit in to a changing environment. The industry is

very competitive and moves at lightning speed. Other competitors may cross them with offering

cheaper and healthier options. So it needs to take steps to change its moves rather than to beat by

others.

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4.0 Conclusion
An organization’s culture may be one of its strongest assets or its biggest liability. According to

the whole report discussion it could be summarized that the culture of McDonald’s is mixed with

both features of strong and weak culture. To be very clear it can be said that McDonalds actually

have a people oriented culture. People-oriented cultures value fairness, supportiveness, and

respecting individual rights. In these kind of organizations, there is a greater emphasis on and

expectation of treating people with respect and dignity. So McDonalds is moving in a very well

speed but it should not avoid its latent threat which is present within the organization’s culture as

the weak culture. The presence of weak culture’s features within McDonald’s can come up with

a great threat for the company if it fails to change these weak cultures. Also strong cultures can

be maintained properly otherwise it may lose its present position. The company is doing very

well and keeps trying in Africa, China, and the Middle East, which will be continued source of

revenue for many coming years. If McDonalds can overcome all of its challenges, makes use of

advantages from its strong culture features and has right strategies, it will win the market again

and hold fast to first position in fast food industry.

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4.0 References
1. http://www.aboutmcdonalds.com/mcd/our_company.html

2. http://www.mcdonalds.com/us/en/contact_us/social_responsibility.html

3. http://business.financialpost.com/2013/02/04/rich-corporate-culture-at-mcdonalds-is-

built-on-collaboration/

4. http://www.researchomatic.com/Mcdonalds-Organizational-Culture-38829.html

5. http://www.mcmassachusetts.com/17879/21510/default-page/

6. http://www.indeed.com/forum/cmp/McDonald's/s-company-culture-at-McDonald-

s/t11464

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