McDonald's is the world's largest chain of hamburger fast food restaurants, operating over 34,000 restaurants in 119 countries. It employs over 1.7 million people and serves around 68 million customers daily. McDonald's has achieved tremendous growth since starting as a small barbecue restaurant in 1940, becoming a global brand and one of the largest companies in the world through effective business strategies, training programs, and focus on customer and employee satisfaction.

1. Name: Joydeep Barman
Roll No.- 12/MBA/63

2. The McDonald's Corporation is the world's largest chain
of hamburger fast food restaurants , serving around 68 million
customers daily in 119 countries. McDonald's operates over 34,000
restaurants worldwide, employing more than 1.7 million people.
Headquartered in the Illinois, United States, the company began in
1940 as a barbecue restaurant operated by Richard and Maurice
McDonald.
Traded as: NYSE:MCD (NASDAQ)
Standard & Poor(S&P)’s Fortune 500 companies in terms of market
capitalization.

3. For decades, McDonald’s growth and profit margins were the envy of the
world. McDonald’s was considered an effective business with tremendous
potential for growth domestically and internationally. In the mean time other
rival companies were also turning up:
Burger King (second largest burger chain)
Wendy's (third largest hamburger chain)
So, there’s a need of organisational effectiveness so that a large no. of
participants can perceive themselves as free to use the organisation and
it’s subsystems and there can be a reconciliation of individual goals with
that of organisational goals.

4. It consist of identifying an organisation’s output goals and accessing how
well the organisation has achieved goals. Insist on measurable goals like(
no. of units sold, revenue generated, no, of complaints solved, profitability,
growth, market share, ROI etc).
It is similar to Management By Objective(MBO).
 McDonald’s goal is to provide good quality, value for money food at a fun
and friendly environment.
 McDonald always tried to keep it’s employees and customers happy.
 McDonald responding to peer pressure introduced new products time to
time. It moved down with new technique to expand it’s business when it
introduced a fish item, “Filet-O-Fish” especially for Roman catholic in
1962. Other products were
Chicken McNuggets, McArabia, BigMc, McRib, Happy Meal etc.
 McDonald’s are run mainly by franchisee, All the goals forwarded to
respective franchisees of McDonald’s are time-bounded (mainly a week
basis). This time bound concept was set from 1985 when McDonald’s was
losing its market share.

5.  McDonald’s themselves take care in recruiting, screening, training,
developing and retaining qualified franchisees.
 McDonald recently introduced “Value Meal” which allows a customer to
buy a sandwich, French Fries and beverage at a discount when purchased
together.
Financial strength:
Initial Investment US$ 370
Revenue US$ 27.56 billion (2012)
Net income US$ 5.46 billion (2012)
Total assets US$ 35.39 billion (2012)

6. Criticism: In 1990, activists criticised the labour record of McDonald
Defense: McDonald defended it saying "Not bad for a McJob”
“McJob is a buzz word for low-paid, unskilled worker with few prospects,
benefits and security”
Criticism: In 2002, vegetarian groups, largely Hindu and Buddhist,
successfully sued McDonald's for misrepresenting its French fries as
vegetarian, when they contained beef broth.
Defense: McDonald immediately removed all the items containing beef from
it’s store.

7. It uses a combination of resource based approach and an internal process
approach to focus on those criteria that will increase the long term survival
of the organisation.
Resource based: looks at the input side of the project, managing valued
resource from the external environment
Internal process: measures organisational health and efficiency in terms of
employee satisfaction
 On Hamburger University’s website, they quote McDonald’s founder Ray
Kroc’s training focused ideology: “If we are going to go anywhere, we’ve
got to have talent. And, I’m going to put my money in talent”.
 McDonald’s mainly recruits young employees and trains them well to get
the maximum output out of them.
 Acquires almost 90 % of the raw materials locally.
 Have a separate line of food menu for both vegetarian and non vegetarian
customers.

8.  McDonald’s offers training to employees at various levels. In addition, if
any employee stays at McDonald’s for a long period he could advance into
an assistant manager or manager position. This enhances employee
satisfaction
 At every McDonald’s store they celebrate an occasion known as
“McDonald’s Best Employee”. Here, employees are rewarded and awarded.
This instills them with confidence and high spirit. It takes place quarterly

9. McDonald offers:
 Competitive wages
 Free uniforms*
 Free or discounted meals
 Flexible hours
 Medical insurance*
 Prescription drug coverage*
 24-hour nurse line access
 Vision discount*
 Available dental*
 Term life insurance*
 Paid holidays*
 Vacation*
 Educational assistance*

10. • Owners-Each McDonald’s franchise owner is liable to show the
Return on Investment on a half-yearly basis. If there is no growth in
the earnings, the franchisee gets transferred or shut down. Excellent
growth earnings in the franchisee are granted a bonus of 2-4% share of the
total profit earned by McDonald’s.
• Employees-Celebration of McPrize, McDonald’s Best Employee, all
time free food and soda, better working conditions, enhanced culture life
within the McDonald’s stores, stress free work environment ease of
communication and unbounded line of communication. Employee
Satisfaction & Job Satisfaction is the top priority of McDonald’s.

11.  Customers-McDonald’s employees are trained to be very gentle and soft spoken to
the customers. They treat customers as their honorable guests. Customers get a very
warm welcome as they enter to any McDonald’s store. Thus, customers gets the
initial service satisfaction.
 Suppliers-McDonald’s, knows the importance of building strong relationships with
suppliers. They treat their suppliers respectfully, fairly and honestly. In addition, all
the suppliers are required to affirm McDonald’s Code of Conduct for Suppliers. This
helps them build a strong future sales potential.
 Unions- All the McDonald’s employees work independently and no unions are
allowed within the organization.

12. 1. 2011 Most Innovative Food Companies
2. 2012 #4 Most Valuable Global Brand
3. 2012 #7 World's Most Powerful Brand
4. 2012 #7 Best Global Brand
5. 2012 #3 Most Respected Company
6. 2010 Most Admired Companies
7. Ranked #4 among all companies for “Best Long-Term
Investment”
8. Ranked #2 among all companies for “Financial Soundness
9. Ranked #4 among all companies for “People Management”
http://www.aboutmcdonalds.com/mcd/our_company/awards_and_recog
nition.html