Starbucks Vs Mc Donalds


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Starbucks Vs Mc Donalds

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