The German University in Cairo

Faculty of Management Technology

Department of General Management

Introduction to Management - MGMT101
Winter 2022

Phase I

Submitted by:
Name: Youssef Nabil Saad
ID#58-21449
Name: Ganna Saoud El Saeed
ID#58-24738
Name: Jannah Mohamed
Hassan
ID#58-4087
Name: Gamila
ID#

Tutorial number: 1
Professor: Dalia Abdelwahab
T.A: Renad
Date:17-11-2022

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Table of contents:
1. Strengths………………………………………………………………………………
2. Opportunities………………………………………………………………………….
3. Weaknesses……………………………………………………………………………
4. Threats…………………………………………………………………………………
5. Challenges…………………………………………………………………………….
6. Vision………………………………………………………………………………….
7. Mission………………………………………………………………………………..
8. Strategic goals……………………………………………………………………..….

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1. Identification of Strengths/Weaknesses/Opportunities/Threats

A. Why did Macdonald’s Brothers’ Business Model inspire the founder? Please shed light on
the strengths of their business model in your discussion.
Their biggest strength is their Speedy system which is the most effecient way saving the
excess time and motion to cook and serve fast food this system allowed them to pack the
order in about 30 seconds. Another strength is constantly providing great quality control
even on the busiest of days always being precise with each and every order, they only
focused on a small number of items (27 items) on the menu perfecting them thus getting the
same great taste every time for a cheap price so items like brisket were removed from the
menu, they also saved money by giving up having servers serving food to parked cars and
cutlery were replaced by easily disposable food packaging. The Mcdonalds name was built
apon Family making the name Mcdonalds synonymous with Family.
B. What opportunities did they have which were identified by the founder and which have
inspired him to be their partner? The potential to Franchise where Mcdonalds can be found
in every street and corner hosting families, the founder brought the photo of the mcdonalds
restaurant concept design to life / reality as it`s a unique landmark and can be easily
identified as mcdonald`s due to the bright yellow golden arches glowing , also the name
mcdonalds sounds inviting and symbolizes the American dream. He knew he had the
persistence needed to keep up the quality control in other branches when he went up to the
brothers to make the deal and sign the contract, he was inspired by the innovation of the
brothers by what they were doing which he thought it would change how the intire industry
operates and functions.
C. What were the main weaknesses of The Macdonald’s Brother’s Business Model which were
identified by the founder? Did he manage to get over them after becoming their partner?
They failed to employ qualified managers to run their franchise thus holding off their ability
to expand, they didn’t want to let go of all their principles and standards holding to them
dearly even if it wasn’t best for them and the business, The brothers didn’t want to give up
making authentic milkshakes instead of powdered milkshakes in the return of maximizing

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 their profits helping their franchise to grow faster limiting their growth, another weakness is
the naivety of the brothers and their lack of persistance and their inability to franchise on
their own thus they were the only obstacle on their own way.
D. The founder has also had various challenges and threats after establishing his partnership
with the two brothers. He has, consequently, conducted various amendments in their
business model and their products which have led to a massive success, and which
contributed to the expansion of Macdonald’s Restaurant all over the U.S through
Franchising.
(Threat)Investors who were retired and given franchises didn’t take good care of their
franchise making the quality control of the franchise plumit and were not abiding by
mcdonalds rules and regulations for example offering food items that weren’t included in
mcdonalds menu like fried chicken but it was amended by hiring managers with specific
characteristics like innovation and he used to employ married couple due to their high team
dynamics emphasizing on the family factor of mcdonalds and making sure they will take
good care of their franchise and treating it like their child (challenges)franchisees used to get
a loan buy the land on which the franchise will be built and provide royalty for every item
sold under mcdonalds name thus reducing the revenue stream to the founder it was amended
by the franchise buying and owning the land and it was leased to the franchisees so the land
was under control of the franchise not the franchisees thus increasing revenue streams and
providing better capital to buy more lands with and also he had to have control so to keep up
the quality control of the franchise ,where if the quality control wasn’t up to par the
franchise wont lease to that franchisee another challenge was the bureaucracy found in
mcdonalds so there were a lot of steps needed for the approval of the founders decisions by
the brothers which were rejected most of the times so it was amended by the purchase of
mcdonalds franchise and trademark from the brothers.
2. The founder had a dream about the new McDonald’s Business Model which he is going to create in
the aftermaths of the partnership. What was his dream? Shed light to his mission, vision, strategic
goals/objectives prior to creating Macdonald’s in its new shape and expanding it all over the US.
Vision: Ray Kroc wanted to build a restaurant system that would be famous for providing food of consistently
high quality and uniform methods of preparation. He wanted to serve burgers, fries and beverages that tasted just
the same in Alaska as they did in Alabama.
Mission: To create a restaurant in every location all over the world that is provided with consistant foods.

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Strategic goals: Persistence and determination – two words that resonated throughout the movie, this guy rarely
accepted 'no' for an answer, when someone tried to stop him, he became more determined rather than deterred. 2.
The sky's the limit – for Ray Kroc, the sky was the limit…and it was for everyone around him, too.