Paper 1, MBA 713-01, By Waqas Sher Zaman, Prof. SK Pemmaraju, March 3r!

, 01",

p#. 1

To: Professor Sk Pemmaraju From: Waqas Sher Zaman Subject: McDonalds Corporat on Date: !"#$"#!$%& Mc$ona%!&s 'orpora()on* McDonalds Corporat on s the 'orlds lar(est cha n of hambur(er fast food restaurants 'h ch ser)es appro* matel+ ,- m ll on customers on da l+ around %%. d fferent countr es and ha)es "$/$$$ restaurants 'orld' de0 McDonalds headquarter s n 1ak 2rook/ 3ll no s/ 4S5 and compan+ 'as started as a barbecue restaurant n %.&$ b+ 6 chard and Maur ce McDonald0 3n %.&-/ o'ners of the compan+ reor(an 7ed the bus ness to a hambur(er stand and thereafter n %.88 bus nessman 6a+ 9roc jo ned the compan+ as the f rst franch se a(ent0 6a+ 9roc purchased the cha n from the McDonald brother and made t (ro' 'orld' de0 :McDonald Corporat on; The corporat on tself e ther operates a McDonald<s restaurant or b+ a franch see0 McDonalds Corporat on re)enues are obta ned from the rent/ fees pa d b+ the franch sees/ ro+alt es and the sales from the restaurants operated b+ McDonalds Corporat on0 McDonalds Corporat on had annual re)enues of =!-0%8 b ll on n the +ear !$%" 'hereas the r prof ts 'ere =80, b ll on0 :>ahoo f nance; McDonalds product l ne ncludes sell n( hambur(ers/ cheesebur(ers/ french fr es/ ch cken tems/ breakfast tems/ desserts/ m lkshakes and soft dr nks0 Due to chan( n( consumer taste and to sur) )e n th s compet t )e and e)er chan( n( en) ronment McDonalds Corporat on has added salads/ 'raps/ f sh/ fru t and smooth es to ts menu l st0 :McDonald Corporat on; Purpose of Mc$ona%!&s 'orpora()on* The ma n purpose of McDonalds Corporat on s to ser)e fast food and to do e)er+th n( that can be done to respect the customer and to ha)e customer trust n the r brand0 Why + 'hose Mc$ona%!&s 'orpora()on* Follo' n( are the reasons 'h+ 3 choose McDonalds Corporat on %0 McDonalds Corporat on s one the 'orld lar(est and lead n( fast food cha n !0 McDonalds Corporat on emplo+s %0- b ll on people 'orld' de and the+ ha)e one of the best ?6 pract ces "0 McDonald sells almost @8 hambur(ers e)er+ second 'h ch attracts an+ ?6M student to stud+ the r ?6 pract ces

Paper 1, MBA 713-01, By Waqas Sher Zaman, Prof. SK Pemmaraju, March 3r!, 01",

p#.

Bus)ness Mo!e% of Mc$ona%!&s 'orpora()on* McDonald earns ts re)enues from n)est n( n propert es/ as a franch ser of a restaurant and as an operator of restaurants0 5lmost -$A of the compan+ restaurants are operated b+ franch sees/ 'h ch are bound to pa+ &A of the r re)enue to McDonald/ as 'ell as the rent0 3n most of the cases/ McDonald o'ns both the bu ld n( and land 'h ch results n a stable flo' of ncome mak n( the franch sees bear most part of the r sks0 The rema n n( %8A of restaurants are o'ned and d rectl+ operated b+ McDonald0 Cons der n( the bus ness model of other fastBfood cha ns the bus ness model of McDonald s d fferent0 1ther than franch see fee and the market n( fees that are calculated as sales/ McDonald do somet mes collect rents that are also cons dered as sales0 1ther than re)enues (enerated from the franch se a(reement/ McDonald ma+ also o'n or the+ can lease the propert+ 'here McDonalds franch ses are located0 5ccord n( to the pol c+ of McDonald/ the bus ness does not n)ol)e tself n mak n( an+ d rect sale of food or an+ other mater al to ts franch sees but t or(an 7es the food and mater als requ red for the franch ses throu(h an appro)ed th rd appro)ed lo( st c operators0 McDonalds s also n)ol)ed n dent f+ n( the locat ons/ de)elop n( ne' products and qual t+0 ,uman -esource Mana#emen(* ?uman resource mana(ement s an approach b+ 'h ch compan+s most )alued assets :people; are mana(ed0 For an+ compan+ to ach e)e success ts human resource has to nd ) duall+ and collect )el+ contr bute and th s can onl+ be ach e)ed throu(h proper mana(ement0 Proper mana(ement of compan+ human resource not onl+ help the compan+ to ach e)e ts object )e/ but the+ ach e)e t ' th (reater eff c enc+0 ?uman 6esource Mana(ement helps the or(an 7at on to ach e)e ts des red (oals and success b+ the help of ts people0 ?uman 6esource Mana(ement/ therefore/ s ut l 7ed n the creat on of dec s on on the plans of the or(an 7at on0 These plans are l nked ' th emplo+ee relat onsh ps/ recru tment/ tra n n( and de)elopment/ performance mana(ement and re'ards for emplo+ees0 Therefore/ human resource strate( es de)eloped are to be n l ne ' th or(an 7at on bus ness plan to help the bus ness to be successful0 Mc$ona%!&s ,uman -esource Mana#emen(* McDonalds Corporat on n order to ach e)e success and compet t )e ad)anta(e de)eloped t human resource mana(ement strate(+ focused on four areas a. S(ra(e#)c ,uman -esources Mana#emen(: McDonalds human resource strate( es and pract ces 'ere s+nchron 7ed to the compan+ bus ness strate(+ and thereafter the ?6 department

Paper 1, MBA 713-01, By Waqas Sher Zaman, Prof. SK Pemmaraju, March 3r!, 01",

p#. 3

helped to real 7ed the bus ness plan or strate(+ b+ form n( t nto compan+ ?6 pract ces n relat on of personal de)elopment and h r n(0 /. Mana#emen( 0ransforma()on an! 'han#e* 1ne of the 'a+ ?6 funct on of McDonald helped or(an 7at on to ach e)e compet t )e ad)anta(e s b+ dent f+ n( the chan(es requ red and thereafter mplement n( t0 Th s strate(+ ser)ed as a catal+st for compan+ successful (ro'th0 c. 1mp%oyee Mana#emen(* ?6 department tr ed to understand the problem 'h ch emplo+ees face da l+ and 'hat are the r needs and thereafter mak n( an effort that the r problems are sol)ed and the r needs 'ere met0 !. Mana#emen( of 2r#an)3a()on A!m)n)s(ra()on* 3t 'as made sure b+ ?6 department that the process of emplo+ees h r n(/ tra n n(/ e)aluat n(/ re'ard n( and promot on 'ere des (ned n such a 'a+ that the+ 'ere n l ne ' th the strate( es of McDonald0 3n order to al (n these four focus area follo' n( th n(s 'ere done b+ McDonald 1. Personne% S(ruc(ure* 5s the bus ness model of McDonald sho's that t (enerates most of t re)enues from franch s n(/ therefore/ there are three cate(or es n the r structure 'h ch are corporate staff/ restaurant 'orkers and franch sees0 The control staff 'h ch e ther operates from compan+ headquarter or re( onal off ces s respons ble for controll n( and mana( n( the franch ses to make sure that standards of McDonald are ma nta ned and the products are del )ered at t me0 6estaurant 'orker const tutes the b ((est part of compan+ structure0 The+ are controlled throu(h super) sors 'ho report to ass stant mana(er0 Most of th s staff 'orks on part t me bas s and are pa d on an hourl+ bas s0 F nall+/ the franch ses that are mana(ed b+ the r o'ners but accord n( to the standards set b+ McDonalds0 . Performance Mana#emen(* 3n order to make sure that product ) t+ s al'a+s h (h the ?6 department has put a process n order to kno' 'h ch staff s not 'ork n( accord n( to the des red e*pectat ons and 'hat solut on s to be mplemented to br n( that staff up to the requ red e*pectat ons0 Th s s done b+ performance re) e' of emplo+ee that can be done an+t me or the nter m performance re) e' 'h ch s carr ed out after each s * months0 2ased on these performances re) e's t s dec ded 'h ch staff ' ll (et promoted 'h ch staff requ res tra n n( so h s performance can be ncreased0 Th s 'a+ of mana(ement not onl+ ser)es as mot )at on for emplo+ees/ but t also creates a compet t )e en) ronment amon( the staff 'h ch n turn helps the product ) t+ of emplo+ees to ncrease0

Paper 1, MBA 713-01, By Waqas Sher Zaman, Prof. SK Pemmaraju, March 3r!, 01",

p#. "

3. Mo()4a()on 5 -e6ar!* S nce most of McDonald staff ha)e lo' 'a(es and are pa d on an hourl+ bas s 'h ch results n lar(e staff turno)er/ therefore/ compan+ has to make sure that the r staff s mot )ated and the+ keep them mot )ated b+ a'ard n( staff ' th d fferent re'ard schemes and other perqu s tes0 Th s not onl+ ncreases the r mot )at on to 'ork for McDonald but also helps them to ncrease the r product ) t+ ". 0ra)n)n#* McDonald spends almost =%$ m ll on each +ear and tra ns appro* matel+ 88/$$$ emplo+ees to make sure that make sure that the r emplo+ees ha)e )aluable sk lls that are needed0 5t f rst all ne' emplo+ees are ( )en ntroduct on about the compan+ and thereafter staff tra ners tra n them properl+ to make sure the+ de)elop all requ red necessar+ sk lls to 'ork n the or(an 7at on0 3t s made sure thereafter that these emplo+ees kno' ho' to use the latest foodser) ce equ pment and the+ understand all McDonalds operat onal procedures0 To make tra n n( much eas er McDonald has publ shed stepBb+Bstep manuals/ ) deo tapes and qual t+ reference (u des 'h ch e*pla n each and e)er+ deta l of the job process0 Cmplo+ees are also tau(ht commun cat on/ nterpersonal and or(an 7at onal sk lls0 Th s enables the r emplo+ees to do the r job at the best poss ble 'a+ and/ therefore/ the+ ser)e the customer ' th h (hest standards mak n( McDonalds customer ser) ce as one of the best n fast food suppl+ compan es0 7. Mana#emen( $e4e%opmen(* McDonald has des (ned McDonald De)elopment Pro(ram :MDP; to de)elop leadersh p sk lls ' th n emplo+ees so the+ can be successful leaders0 Dar ous courses of th s pro(ramme are held for emplo+ees of d fferent le)el of mana(ement and for franch sees0 'onc%us)on* McDonalds no' a da+ s one the fastest (ro' n( corporat on and th s s due to the reason of proper mana(ement of the r human resources0 Th s clearl+ sho's that the corporat on s on the r (ht track and the+ ha)e been able to keep the mot )at on le)els of the r emplo+ees h (h0 Th s has been done b+ proper re'ard schemes for the emplo+ees based of the r performances0 Proper tra n n( s pro) ded to the ne'comer mak n( t much eas er for ne' emplo+ee to p ck up and to (et comfortable ' th the job qu ckl+0 ?o'e)er/ f McDonalds Corporat on cont nuousl+ str )es to further mpro)e ts ?6M strate( es then McDonald can cont nue to (ro' at much more faster pace0 ?ence t can be concluded the ?6M strate( es of McDonalds Corporat on s n l ne ' th the r bus ness model and (ro'th strate( es and th s can be )er f ed from the r success up to th s date0

Paper 1, MBA 713-01, By Waqas Sher Zaman, Prof. SK Pemmaraju, March 3r!, 01",

p#. 7

-eferences

3n(mar/ 20/ Carl/ F0/ E ?+eon/ F0/ :!$$@;0 3nst tut onal theor+ and MGC subs d ar+ ?6M pract ces: e) dence from a threeBcountr+ stud+0 Journal of International Business Studies,38,&"$B&", Paula/ C0/ :!$%&;0 Man+ mo) n( parts: Factors nfluenc n( the effect )eness of ?6M pract ces des (ned to mpro)e kno'led(e transfer ' th n MGCs0 Journal of International Business Studies,45, ,"B@! Seek n( 5lpha :!$%&;/ McDonald<s: 2us ness Model/ Daluat on 5nd M n mum Wa(e He( slat on/ 6etr e)ed March !!/ !$%&/ from http:##seek n(alpha0com#art cle#!$8!!!"B mcdonaldsBbus nessBmodelB)aluat onBandBm n mumB'a(eBle( slat on 49 essa+s :!$$";/ C)aluat n( ?uman 6esource Strate( es 3mplemented b+ McDonalds/ 6etr e)ed March !!/ !$%&/ from http:##'''0ukessa+s0com#essa+s#bus ness#e)aluat n(B humanBresourceBstrate( esB mplementedBb+BmcdonaldsBbus nessBessa+0php McDonalds :!$%&;/ Corporate 3nfo/ 6etr e)ed March !!/ !$%&/ from/ http:##'''0mcdonalds0com#us#en#ourIstor+#CorporateI3nfo0html >ahoo f nance :March !$%&;/ 3ncome Statement/ 6etr e)ed March !!/ !$%&/ from/ http:##f nance0+ahoo0com#q# sJsKMCDL3ncomeLStatementEannual

Paper 1, MBA 713-01, By Waqas Sher Zaman, Prof. SK Pemmaraju, March 3r!, 01",

p#. 8

0he 2r#an)3a()on

Total %$$ po nts

'r)(er)a

9naccep(a/%e

Accep(a/%e

Prof)c)en(

S(u!en( Pos)()ons an! 'ommen(s

Descr bes the or(an 7at on selected/ ts purpose/ and 'h+ selected0

Da(uel+ addresses and descr bes the or(an 7at on selected/ ts purpose/ and 'h+ selected or completel+ off the top c0

5ddresses and descr bes the or(an 7at on selected/ ts purpose/ and 'h+ selected and/ for the most part/ fulf lls ass (nment requ rements0

5ddresses and descr bes the or(an 7at on selected/ ts purpose/ and 'h+ selected and demonstrates sol d ab l t+ to accompl sh the ass (nment0

:%,B%@ po nts; :$B%8 po nts; D scusses ho' the or(an 7at on uses ts human resources to dr )e compet t )e ad)anta(e ' th n ts bus ness model0 Da(uel+ d scusses ho' the or(an 7at on uses ts human resources to dr )e compet t )e ad)anta(e ' th n ts bus ness model or completel+ off the top c0 D scusses ho' the or(an 7at on uses ts human resources to dr )e compet t )e ad)anta(e ' th n ts bus ness model and/ for the most part/ fulf lls ass (nment requ rements0

:%-B!$ po nts;

D scusses ho' the or(an 7at on uses ts human resources to dr )e compet t )e ad)anta(e ' th n ts bus ness model and demonstrates sol d ab l t+ to accompl sh the ass (nment0

Paper 1, MBA 713-01, By Waqas Sher Zaman, Prof. SK Pemmaraju, March 3r!, 01",

p#. 7

:$B%8 po nts; 3nte(rates establ shed ?6M pr nc ples nto the d scuss on0 6arel+ nte(rates establ shed ?6M pr nc ples nto the d scuss on0

:%,B%@ po nts; For the most part/ does a (ood job of nte(rat n( establ shed ?6M pr nc ples nto the d scuss on0

:%-B!$ po nts; Cons stentl+ does a (ood job of nte(rat n( establ shed ?6M pr nc ples nto the d scuss on0

:$B%% po nts; S+nthes 7es rele)ant nformat on and mater als to pro) de e) dence of cr t cal thou(ht0 S+nthes 7es nformat on at a m n mal le)el0

:%!B%" po nts; For the most part/ effect )el+ s+nthes 7es nformat on/ 'h ch supports ma n deas0

:%&B%8 po nts; Cons stentl+ and effect )el+ s+nthes 7es nformat on/ 'h ch pro) des stron( support to ma n deas0

:$B@ po nts; :- po nts; De)elops deas ' th clar t+ and lo( c0 Demonstrates l ttle clar t+ and lo( c0 6eaders ha)e d ff cult+ follo' n( the l ne of reason n(0 De)elops deas ' th clar t+ and lo( c0 6eaders can (enerall+ follo' the l ne of reason n(0

:.B%$ po nts; De)elops deas ' th clar t+ and lo( c0 3deas flo' smoothl+ from one to another and are clearl+ l nked to each other0

:$B@ po nts;

:- po nts;

:.B%$ po nts;

Paper 1, MBA 713-01, By Waqas Sher Zaman, Prof. SK Pemmaraju, March 3r!, 01",

p#. :

4ses concrete lan(ua(e0

3nadequate or m n mal use of proper term nolo(+ n the f eld:s;0 Pro) des no spec f c e*amples or uses nadequate e*amples0

For the most part/ uses proper term nolo(+ and pro) des spec f c e*amples0

Cons stentl+ uses proper term nolo(+ and pro) des spec f c e*amples to support deas0

:- po nts; :$B@ po nts; 4ses support n( documentat on that has been properl+ references and c ted0 3nadequate or m n mal use of support n( documentat on or not properl+ referenced or c ted0 For the most part/ uses support n( documentat on that s properl+ referenced and c ted0 :.B%$ po nts; Cons stentl+ uses support n( documentat on that s properl+ referenced and c ted0

:& po nts; :$B" po nts; Cons dered hol st call+/ demonstrates the ab l t+ to 'r te at the (raduate le)el0 Cons dered hol st call+/ the student demonstrates an nadequate ab l t+ to 'r te at the (raduate le)el0 Cons dered hol st call+/ the student demonstrates an acceptable ab l t+ to 'r te at the (raduate le)el0

:8 po nts; Cons dered hol st call+/ the student demonstrates a prof c ent ab l t+ to 'r te at the (raduate le)el0

:$B@ po nts;

:- po nts;

:.B%$ po nts; Su/0o(a% Po)n(s ;

Paper 1, MBA 713-01, By Waqas Sher Zaman, Prof. SK Pemmaraju, March 3r!, 01",

p#. <

Turn t n0com

D d not turn paper nto Turn t n0com M nus 8 po nts

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Paper 1, MBA 713-01, By Waqas Sher Zaman, Prof. SK Pemmaraju, March 3r!, 01",

p#. 10

6e) s ons based on the or ( nal t+ 6eport

D d not re) se paper based on the or ( nal t+ report M nus 8 po nts

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