Professional Documents
Culture Documents
Notice Board: Submission Date: 19th November 219
Notice Board: Submission Date: 19th November 219
Notice Board
Submission Date: 19th November 219
These are our assignment pdfs
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1. What do you think McDonald’s training initiatives are aligned with business strategy? Explain
the reasons for it. Why is it important to establish business strategy-training linkage?
2. Discuss how McDonald's strategic commitment to training has contributed to its position as a
leading global foodserver retailer
3. Examine Ray Kroc’s training philosophy. How has McDonald’s gained from this philosophy?
4. How Relevant is training and development for a company like McDonald’s which is seen as
“Deskilled”?
6. Discuss the training and management development process at McDonald's with respect to its
design, purpose, methods and content. What org cultural goals does it help McDonald’s achieve?
Evaluate McDonald’s T&D process based on your understanding of the process of training.
1.Introduction
History of the industry
Present position of the industry
History of McDonalds
Present position of McDonalds 2018-2019
Product and services
Competitors
Hr related info if available
2Main Body
Objective : Why you are writing this essay?
Objective 01
Argument : Have to express in terms of HR plane
Discuss and provide examples from case
Finding/answer of the objective
Objective 01, 02, 03 ,04 ,06….. Follow the objective 01 structure
03. Conclusion
Summary of objective 01 and 02. We can call it major findings.
04. Recommendation
Apa format
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Introduction
McDonald's is an American fast-food company, founded in 1940 as a
restaurant operated by Richard and Maurice McDonald, in San
Bernardino, California, United States. In 1948, they reorganized their
business as a hamburger stand, using production line principles. In 1953,
the first time a McDonald's franchise used the Golden Arches logo was at
a location in Phoenix, Arizona, USA. In 1955, Ray Kroc, a businessman,
joined the company as a franchise agent and proceeded to purchase the
chain from the McDonald brothers. McDonald's had its original
headquarters in Oak Brook, Illinois, but has approved plans to move its
global headquarters to Chicago by 2018.
Today, McDonald's is one of the world's largest restaurant chains, serving
approximately 69 million customers daily in over 100 countries across
approximately 36,900 outlets as of 2016. McDonald's primarily sells
hamburgers, cheeseburgers, chicken products, French fries, breakfast
items, soft drinks, milkshakes, wraps, and desserts. In response to
changing consumer tastes and after facing criticism for the unhealthy
nature of their food, the company has expanded its menu to include
salads, fish, smoothies, and fruit. A McDonald's restaurant is operated by a
franchisee, an affiliate, or the corporation itself.
History
Some trace the modern history of fast food in the United States to 7 July
1912, with the opening of a fast food restaurant called the Automat in New
York. The Automat was a cafeteria with its prepared foods behind small
glass windows and coin-operated slots. Joseph Horn and Frank Hardart
had already opened the first Horn & Hardart Automat in Philadelphia in
1902, but their "Automat" at Broadway and 13th Street, in New York City,
created a sensation. Numerous Automat restaurants were built around
the country to deal with the demand. Automats remained extremely
popular throughout the 1920s and 1930s. The company also popularized
the notion of "take-out" food, with their slogan "Less work for Mother".
Globally, fast food generates revenue of over $570 billion - that is bigger
than the economic value of most countries. The quick service restaurant
(QSR) industry in the United States was said to be worth a sum of
approximately 256 billion U.S. dollars in 2018. In the United States revenue
was a whopping $200 billion in 2015 - quite a lot of growth since the 1970
revenue of $6 billion. The industry is expected to have an annual growth of
2.5% for the next several years - below the long term average but coming
back from a several year slump.
While the U.S. fast food landscape has been inundated by new concepts
over the past decade, well-established U.S.-based QSR brands are
continuing to grow. Although the U.S. market may be becoming saturated,
household brands such as McDonalds show no signs of slowing their
growth - expanding their reach to international locations. With a brand
value of over 126 billion U.S. dollars, McDonald’s was by far the most
valuable fast food brand in the world in 2018, surpassing its closest
competitor Starbucks by almost triple. In 2018, McDonald’s was also the
largest fast food company in terms of systemwide sales, followed by
brands such as Starbucks, Subway and Yum! Brands - parent company of
Taco Bell, KFC & Pizza Hut
There are over 200,000 fast food restaurants in the United States and it is
estimated that 50 million Americans eat at one of them every single day.
The industry employs over 4 million people and counting - restaurant
franchises added over 200,000 jobs in 2015.
The fast food industry keeps growing despite the general public’s
newfound surge to go organic and healthy. McDonald’s is the most
popular in this field, no surprise there, although one data below puts it in
an interesting perspective.
● The fast food industry revenue in the US alone makes about $110
billion annually. (Staticbrain)
● 50 million Americans eat fast food every day (Staticbrain)
● A complete fast food meal is 37% of your daily calories (Static Brain)
● McDonald’s is more recognized than the Christian Cross.
(Marketingweek)
● Fast food restaurants are expected to keep growing at 2% annually
through 2020. (Statista)
● There are nearly 200,000 fast food franchises in the US as of 2018
(Statista 2018)
McDonald’s (NYSE: MCD) released its full year results on January 30, 2019.
The company beat the consensus earnings but missed slightly on revenue
for the 4th Quarter. This is primarily due to the refranchising of its
restaurants that the company has been undertaking for a couple of years.
The company’s long-term goal is for 95% of McDonald’s restaurants to be
owned by franchisees, and at the end of FY 2018, this figure stood at 92.7%.
Overall the company posted revenue of $21.03 billion with earnings of
$7.50, up 18% year on year as the strategy has also helped them in cutting
down costs and thus improving margins. Global comparable sales also
improved by 4.5% YOY.
McDonald’s history is divided in some stages of the last century. These
years are –
The first McDonald's with the arches opened in Phoenix, Arizona in March
1953. The original mascot of McDonald's was a man with a chef's hat on top
of a hamburger-shaped head whose name was "Speedee". In 1962, the
Golden Arches replaced Speedee as the company symbol. A new mascot,
Ronald McDonald, was introduced in 1965. The clown-like man having
puffed out costume legs appeared in advertising aimed at children.
As it was exploring new avenues of growth, however, McDonald's core
burger chain had become plagued by problems. Most prominently, the
Made for You system backfired. Although many franchisees believed that
it succeeded in improving the quality of the food, it also increased service
times and proved labour-intensive. Some franchisees also complained
that the actual cost of implementing the system ran much higher than the
corporation had estimated a charge that McDonald's contested. In any
case, there was no question that made for you failed to reverse the chain's
sluggish sales. Growth in sales at stores open more than a year (known as
same-store sales) fell in both 2000 and 2001. Late in 2001 the company
launched a restructuring involving the elimination of about 850 positions,
700 of which were in the US, and several restaurant closings.
In May 2010, McDonald's redesigned its US website to a sleeker, HTML 5
friendly interface. Along with those changes, McDonald's also introduced
new advertising material to its website, including the unveiling of new
pictures used exclusively for in-restaurant ads, television commercials,
print advertising, and online advertising, which consist of more realistic
pictures of its products, which are now up close and face the camera
instead of facing left or right.
In January 2012, the company announced revenue for 2011 reached an
all-time high of $27 billion, and that 2,400 restaurants would be updated
and 1,300 new ones opened worldwide.
1. Hamburger
1.9. McFeast
2. Chicken
2.1. McChicken
2.2. McNuggets
2.3. Premium Chicken Sandwiches
8. Beverages
8.1.
8.2. Soft Drinks
8.3. Coffee and tea
8.4. Shakes
8.5. Alcoholic Beverages
8.6. Frozen Beverages
9. Desserts
McDonalds Competitors
● KFC.
● 2) Burger King.
● 3) Subway.
● 4) Starbucks.
● 5) Pizza Hut.
● 6) Domino's.
● 7) Dunkin' Donuts.
● 8) Wendy's.
● Taco Bell
● Chipotle
Reference
https://www.franchisehelp.com/industry-reports/fast-food-industry-analysis-
2018-cost-trends/
https://www.statisticbrain.com/fast-food-statistics/https://www.s
tatisticbrain.com/fast-food-statistics/
https://www.marketingweek.com/mcdonalds-bigger-than-jesus-ch
rist/
https://www.forbes.com/sites/greatspeculations/2019/02/04/mc
donalds-reports-good-results-to-continue-growth-in-2019/#6898b8
1319ec
https://www.cnbc.com/2019/04/30/mcdonalds-q1-2019-earnings.
html
https://mcdonalds.com.au/sites/mcdonalds.com.au/files/MCD_CR
&S_Chapter6.pdf
https://edition.cnn.com/2019/08/28/business/mcdonalds-workpla
ce-safety-training/index.html
https://aracellya.weebly.com/uploads/2/5/8/9/25893075/formal_
project.pdf
Nazmul Islam
How McDonald’s training initiative are aligned with business
strategy & the importance of establishing business
strategy-training linkage?
Yes, the objective of training initiatives taken by McDonald’s are aligned with business
strategies.
The employee who receives the necessary training is more able to perform in their job.
The training will give the employees a greater understanding of their responsibilities
within their role and build their confidence. This confidence will enhance their overall
performance and this can only benefit the company. Employees who are competent and
on top of changing industry standards help your company hold a position as a leader
and strong competitor within the industry. When training aligns with the business,
employees at all levels understand expectations, operationalize vision and values, and
recognize what is necessary to succeed. Conceptually, it is not hard to truly align
training with the business needs, but it requires a good deal of work.
The objectives of training initiatives taken by McDonald’s are mostly aligned with
business strategies. From the organizational perspective, this represents a successful
and on-going initiative. Most importantly, the initiatives are emphasized on the
increment of the level of customer satisfaction. This is essential for a business goal of
creating value around the employees, a measurable value and a sense of competitive
differentiation. HR functions have always served as a supporting tool to the strategic
levels. The design and implementation of the strategic option chosen by the company
depends basically on the human factor. Mr. Ray Kroc wanted a restaurant system that
would be famous for providing food of consistently high quality and uniform methods of
preparation. He wanted to serve food that tasted the same at wherever the restaurant
may be. In 1955, he founded the McDonald’s System, Inc. – the core of McDonald’s
principles of Quality, Service, Cleanliness and Value (QSCV) – which lives on as the
Company’s foundation to this day.
In McDonald the business strategy for the company is to make food fast available to its
customers at a very low competitive price but to get profit as well by reducing the cost of
the product and expanding the business worldwide. For McDonald the training was that
important that they actually created “Hamburger University”. They train their employees
through arranging classes shift wise in crew rooms or inside restaurant. However, for
managerial level, they have management training center where the managers progress
through hundreds of training days. The management training includes: Employee
relation training, staff retention & discipline, Time management, learning to manage
shifts, personal leadership & effective coaching, Employee communication, Community
image, managing staff development, Optimizing restaurant food cost, Accounting &
financial procedures etc.
Objective
Examine: Ray Kroc’s Training Philosophy. How gas McDonalds gained from this
philosophy?
Kroc’s Philosophy
McDonald (MCD) has one agenda providing 100% total consumer satisfaction. The
formula through which McDonalds seeks to achieve this goal in the restaurant operation
is the long-standing commitment to Q, S, C, V that is Quality, Service, Cleanliness and
Value. Well trained crew and managers are the first step to achieving these standards.
It is a company policy to provide career opportunities that allow employees to develop
their full potential. This include a comprehensive training program for crew and career
progression that enables a first job employee to progress though to a senior
management position through merit based promotion.
The current training methods and strategies that the McDonald’s follow now is a better
reflection of Kroc’s philosophy. All the development plan at McDonald’s stem from the
same essential principles that Kroc’s introduced in 1950s, i.e., quality, service, and
cleanliness. Kroc’s philosophies helped McDonald’s in achieving better employee and
customer satisfaction and drastically reduced staff turnover rate.
McDonalds believe in giving an employee the tools he/she need to succeed, whether it’s
the chance to run his/her own restaurant or succeed in a corporate career at
McDonald’s. To be the best company they can, they have to offer the best opportunities,
and they believe that the best are right here.
All are done for ensuring the customer satisfaction. McDonalds which a strong tradition
of and belief in training invest more than $1 B annually. However it is not training as we
know or might expect it.
Hamburger University
There, franchisees and operators were trained in the scientific methods of running a
successful McDonald’s. Hamburger University also had a research and development
laboratory to develop new cooking, freezing, storing and serving methods. Today, more
than 80,000 people have graduated from the program.
McDonalds founder Ray Kroc once said, “If we are going to go anywhere, we’ve got to
have talent. And, I’m going to put my money in talent.”
Take the order, every once in while ask anything else or will that be all?
When customer finish ordering verify the order is correct by having them read their
order on the screen as shown on the right. This is especially important if they added
specification on their order.
Through this way McDonalds avoid conflict in ordered item by customer. Customer will
highly satisfied by this behavior which is Kroc’s philosophy is maintain by McDonalds till
now.
Clean
Grill Clean up
In McDonald’s, the grill is constantly used to make hundreds of burgers all day.
Because the grill is used so frequently, employees must clean it at least twice a day and
scrape the top to avoid serving dirty food to costumers. When cleaning the grill, avoid all
distractions because the grill is very hot and you can get severely injured.
Floor Clean Up
Dirty floors are the number one cause of injuries in McDonald’s. Most employees do not
know that when the grill is being used, oil splashes onto the ground making it dangerous
for the employees to fall down. Providing safe and clean floors can reduce the amount
of injuries and increase customer satisfaction.
It is very important to maintain the kitchen tables clean. The kitchen countertops are
also called workstations where all the meals are put together and then wrapped to give
to the waiting customer. If the stations are dirty, the food that is being made there will be
dirty and the customer will be upset. The work stations must be clean in order to have
clean food and satisfied customers.
Quality
McDonalds pays more attention on the satisfaction level of their customers. To improve
the quality standards, the employees are well trained and continuously learning desire
of McDonald’s results to increase the level of satisfaction of their customers towards
their products. When the quality is improved and the workers are serving the customers
is well trained and the overall service environment is improved then there is no room left
for customer to fell dis-satisfaction towards the company
Beef patties are made from 100% high quality beef that originates from European farms,
the majority of which are in Italy. McDonalds only use cuts of the highest quality
boneless muscle meat from the flank, forequarter and hindquarter of cattle.
McDonalds only use chicken breast meat, and that’s true whether it's a burger, our
Selects or Chicken McNuggets. Why is this important? Because great tasting food
made with quality ingredients is one of our top priorities.
Planted and monitored from seed to fruit, McDonalds tomatoes are grown according to
the highest farming standards. This ensures that our juicy tomatoes are of high-quality
and are produced in a healthy and sustainable manner.
A SIGNATURE COFFEE
McDonalds specifically designed espresso is made from a blend of the highest quality
coffee beans selected from ecologically sustainable Rainforest Alliance Certified farms.
Buns are sourced from suppliers who use the highest quality wheat. Strict quality and
safety are used throughout all of the production process.
No compromises
The restaurant chain gives high importance to small details including, meats, spices,
etc. and everything is standardized to a high level
Wholesome dairies – Only fresh milk is used and always from safety standard
approved regional and local suppliers.
McDonalds uses the HACCP (Hazard Analysis & Critical Control Point) quality control
system. This is applied to keep food safety and standards at their absolute highest.
This ensures quality throughout all stores. Values
Value
From the start, they have been committed to doing the right thing. And every day, all
around the globe, they put people, processes and practices into place to make quality
food, more responsible sourcing choices, a stronger community and a better planet. In
accordance with our McDonald’s values.
"It is the value piece that drives the behaviors and drives the whole underlying culture
that exists at McDonald’s"- -Len Jillard, Chief People Officer for McDonald’s Canada
To keep it really simple, in terms of a crew person coming in, the number one value, or
the first value, is to put the customer at the core of all they do. That makes it really
simple to explain to a crew person at the front counter, or in drive through, what the job
is. The customer comes first. Make sure that whatever you’re doing with that guest
coming in is that you’re taking care of them. If there is something wrong, cold fries or a
wrong soft drink, or whatever, just go ahead and replace it, because the customer is the
most important priority.
Responsible Leadership
McDonalds are committed to using our scale for good: good for people, for our industry,
and for the planet. From simplifying ingredients to being nutritionally mindful; from
reducing their waste impact to advancing the industry on sustainable and humane
sourcing
Progressiveness
McDonalds are a restless company: always innovating, always moving forward. From
our original business model to the invention of the drive thru and the Happy Meal, they
are working to do things better tomorrow than we do today
Local Integration
McDonald’s has traveled far but stay in sync with society in each of the countries,
responding to local needs and integrating with local culture. Their restaurants are
typically locally-owned, staffed by crew who live nearby, and who proudly give back to
their community via hundreds of thousands of local programs.
Service
McDonald’s value proposition is that their food is served quickly and of constant quality
across different places and countries. The planning and organizing of McDonald’s
business resources had revolved around their value proposition when they re-innovate
their service design in order to ensure their success. While doing so, they probably had
business model canvas and service blueprint on their hands
McDonald’s has traveled far but stay in sync with society in each of the countries,
responding to local needs and integrating with local culture. Their restaurants are
typically locally-owned, staffed by crew who live nearby, and who proudly give back to
their community via hundreds of thousands of local programs.
Service
McDonald’s value proposition is that their food is served quickly and of constant quality
across different places and countries. The planning and organizing of McDonald’s
business resources had revolved around their value proposition when they re-innovate
their service design in order to ensure their success. While doing so, they probably had
business model canvas and service blueprint on their hands
Content:
1.Employee relations training
2.Time management
3.Staff retention and discipline
4.Leadership
5.Accounting & financial procedures
6.Optimizing restaurant food cost
7. Employee communications
Organizational goals:
Provide 100% customer satisfaction through quality sevice
cleanliness and value.
Evaluation of T&D process:
It has been observed that the restaurant where the manager takes a
hands-on approach to training, the performance is good. Effective
and regular training also brings benefits like employee satisfaction
which in turn enhances customer ratings, and lower staff turnover.
Niloy
01688538313
How relevant is training and development for a company like McDonald which is
seen as ‘deskilled’?
Every fast food chain, especially McDonald’s belongs to the Food & Beverage
(F&B) sector. These sectors generally play an essential role in the development of
any organization, especially the development of services is very important. In
order to provide abundantly good service, the employees should be in need of
intense training, and that’s how training comes into the scenario. Therefore,
training and development are intertwined to each other in most cases. Now let’s
go through how McDonald’s used these concepts.
In a very limited span of time, McDonald’s formed huge visibility and developed
internationally. Not only does this fast food chain offers a cheap, clean and very
convenient food and captured everyone’s attention to them, but they have also
formed few drawbacks as well which are briefly explained below:
To capture a significant portion in the market the firm targeted young generation,
especially children or known as the future buyers. Therefore, by offering fast food
they are calling upon many unknown and also unavoidable problems which
occurs mostly for having too much fast food, such as, obesity, asthma, mad cow,
heart diseases and many more. Advocating such practices then what kind of
message are we sending to our children’s “at least 59 of the nation's 250
children's hospitals have fast-food restaurants?” (Tanner, 2006).
3. Another problem found is that the McDonald’s use beef in their menu abroad
which the firm brings from various other farms. If at any circumstances or in any
time the customer feels like being aware of the quality and raise the question on
the quality of the food (beef item) they might face difficulty to trace the origin of
the beef or the farm from where they brought the raw material from. Suspicion
may rise and the possibility that the food item may be contaminated in any way
will be more of an issue, and in that case the origin will be unknown, “a typical
fast-food hamburger patty contains meat from more than one thousand different
cattle, raised in as many as five countries” (Schlosser, 2004).
With respect to the cultural issues, McDonald's was drawn in the media for a long
time in many countries. In China, the firm disregarded their cultures through
some of its actions. In several other countries like the USA, Japan and many
more the firm provoked and upset many vegetarians. “McDonald's, the fast-food
giant currently embroiled in a row concerning undisclosed beef flavoring in
French fries, has made a formal apology to those it has offended” (McDonald’s
resolves French fry dispute, 2002). Even though it may seem like a very small
issue but in reality, the firm had made a mess for the customers who are known
for worshipping cows and consider them as sacred. So imagine what it might
have felt to them and thinking about eating beef might mean for them.
The issues mentioned above are a few examples of how McDonald’s is seen as
“deskilled”. Hence, universities offering hotel management course must teach
other promising chefs the difference between “what is right and what is wrong”.
Proper training and development of the individual is a must and it can make a
significant amount of difference to organizations like McDonald’s.
Rumman
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