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Starbucks Vs Mc Donalds
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Starbucks Vs Mc Donalds



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  • 1. Starbucks Vs McDonalds
    Presented by:
    Walid Hamood
    Maher Mahmud
  • 2. Introduction
    Fast food restaurants represent one of the largest segments of the food industry.
    McDonald's, the fast-food company, is heating up competition with the Starbucks Coffee Company.
  • 3. Brief history of Starbucks:
    In 1971,the first store in Seattle’s historic Pike Place Market.
    In the 1990s, Starbucks expands beyond Seattle, first to the rest of the United States, then the entire world.
    Now, Starbucks has more than 13,000 locations in over 41 countries.
  • 4. Starbucks’ Culture
    Provide a great work environment and treat each other with respect and dignity.
    Embrace diversity as an essential component of the way they do business.
    Apply the highest standards of excellence to the purchasing, roasting, and fresh delivery of their coffee.
    Develop enthusiastically satisfied customers all of the time.
    Contribute positively to our community and our environment.
    Recognize the profitability is essential to our future success.
  • 5. Starbucks’ people
    Starbucks is know for its generous compensation package.
    Hourly wages are higher than the norm of the fast food industry.
    Efforts paid off in a barista turnover of 60 percent, compared with 140 percent for hourly workers in the fast food business.
    Starbucks spends more on training than on advertising its product.
  • 6. Starbucks a great place to work:
  • 7. Starbucks compensation strategy
    Grow by making employees feel valued.
    Recognize that every dollar earned passes through employees’ hands.
    Use pay, benefits, and opportunities for personal development to help gain employee loyalty and become difficult to imitate.
  • 8. Starbucks compensation strategy
    De-emphasize differences.
    Use egalitarian pay structures, cross-train employees to handle many jobs, and call employees partners.
    Pay just slightly above other fast-food employers.
    Provide health insurance and stock options for all employees (including part-timers).
    Give everyone a free pound of coffee every week.
  • 9. Starbucks compensation strategy
    Emphasize team performance and shareholder returns.
    For new managers in Beijing and Prague, provide training opportunities in the U.S.
    As members of the Starbuck’s “family,” our employees realize what is best for them.
    Partners can and do get involved.
  • 10. Starbucks values and principles
    to build a company with soul.
    control the quality of its products and build a culture common to all stores.
    Management wants employees to contribute to the process of making Starbucks a better company.
    The company’s employee benefits program was predicated on the belief that better benefits attract good people and keep them longer.
  • 11. Brief history of McDonalds
    The world's largest fast food chain, selling primarily hamburgers, chicken, french fries and carbonated drinks and more recently salads, fruit and carrot sticks.
    The business was founded in 1940 with a restaurant opened by siblings Dick and Mac McDonald.
    McDonald's restaurants are found in 120 countries around the world
    It serves nearly 54 million customers each day.
  • 12. The core values we live by …
    We are dedicated to providing customers unparalleled levels of Quality, Service, Cleanliness and Value.
    We are committed to our people because we know that a diverse team of well-trained individuals, working together, is the key to our continued success.
    We approach all aspects of our business with honesty and integrity.
    We will always give back to the communities in which we do business.
    We give back to the system that provides our success.
    We celebrate our achievements, yet we always strive to achieve new heights.
  • 13. The principles that guide us …
    We are committed to exceeding our customers' expectations in every restaurant every time.
    We believe our success is dependent upon Corporate, Franchisee Partners, and Supplier Partners.
    We have a passion and a responsibility for enhancing and protecting the McDonald's brand.
    We believe in a collaborative management approach, employing a mutually respectful business philosophy.
    We are committed to franchising, maintaining a highly collaborative relationship with our franchisees and making franchising decisions based on what's best for our customers.
    We will seize every opportunity to innovate and lead the industry on behalf of our customers.
  • 14. McDonalds’s employee benefits
    health and insurance benefits:
    Vision supplement plan
    Flexible spending accounts
    Short and long term disability
    Employee and dependent life insurance
    Accidental death & dismemberment (AD&D)
    Travel and business travel accident insurance
  • 15. Cont…
    compensation, reward and recognition programs:
    Base pay
    Incentive pay
    Company car program
    Recognition programs
  • 16. Cont…
    Work life balance:
    Anniversary Splash
    Sabbatical program
    Summer Hours
    Leave of absence
    Alternative Work Approach
    Adoption assistance
    Child care discount
    Educational assistance
    Matching gifts program
    Employee Resource Connection
    Auto and home insurance group discount program
    International Fitness Club Network
    BeyondWork Internet discount program
  • 17.
  • 18.
  • 19. Conclusion
  • 20. Questions