What is McDonalds business model

Document Type:Creative Writing

Subject Area:Management

Document 1

McDonald’s has thrived across the globe by franchising its restaurants in different countries. Additionally, it values its franchisees hence offers training at Hamburger University which is located in Oak Brook. The company generates its revenue from the franchise holders and those restaurants owned by the company itself. However the greatest revenue comes from franchises since the company owns only 15% of the restaurants in the globe, the rest are franchised. Despite the company having different restaurants across the globe its main headquarters are located in Illinois in the United States. Their first franchises was from Neil Fox. When Ray Kroc, a well-known seller of milkshake machines learned that the brothers were using these machines in their restaurant in San Bernardino he visited the restaurant and saw the potential in it.

Sign up to view the full document!

He proposed that the brothers should go big and franchise their company in every part of the country. However, Richard and Maurice were reluctant since their restaurants were operating well and they did not want to take the national risk. Since the brothers were not so sure about this move Kroc took the responsibility of setting up new franchises in the country. The company has managed to employ 375,000 employees who serve an approximate of 68 million customers daily. The company owns land worth $18 billion where the restaurants are situated. It mostly gets the revenue from rent paid from franchisees. To what extent are various elements of McDonald’s business standardized or adapted across locations, and what has driven the local adaptation of certain elements? McDonald’s standardization and adaption Since McDonald’s went international, with many restaurants across the world , the company has faced many challenges.

Sign up to view the full document!

These challenges are mostly because of the diverse cultures of different regions where the restaurants are located. Some of these elements are how they package their products in ways that are familiar, the design of the restaurants and at times adjusting the menu to fit the preferences of the people in that region. The restaurant has also taken to adjusting the menu to customers’ preferences. In Austria, they serve Viennese iced coffee which very popular, especially during the summer. The coffee is made from sundae Ice-cream and espresso with chocolate chip toppings. In Argentina, they like their meals with wine, while in German they prefer beer. In India they do not prefer to have any meat on their burgers. The organization has also adapted some traditional cuisines in its menu in different countries.

Sign up to view the full document!

In Portugal, they have adapted six different traditional soups, Caldo Verde soup, Lavrador soup, vegetable soups, white beans soup, spinach cream soup and carrot soup. In Spain, they prefer Capricho manchego which is chicken wrapped with manchego cheese. And in the United Kingdom, they serve porridge with jam which is the traditional English breakfast. For example, in China take out the number which is 4008-517-517. 517 is pronunciation is the same pronunciation of I want to eat in Chinese (Zhou,17). In Thailand, they have a burger known as McSamurai. People from Thailand can identify the word, Samurai and in Turkey they call it McTurco. Additionally, religion has made McDonald’s to adapt some elements. These policies can be communicated verbally and through formal statements.

Sign up to view the full document!

Formal written policies give a guarantee to current employees and future employees of anti-discriminatory practices. The diversity plan should also be communicated to all employees. The diversity plan could be communicated through the press and social media. The company could also hold up meetings with employees where they are involved to provide feedback about the plan and suggest ways in which the diversity plan can work for them. Lastly, one should promote the flexibility in the work schedule. Since McDonald’s is a restaurant it employees work on schedules. Promoting flexibility in the schedules will help working mothers to fit in this kind of environment. For the young generation making the schedule flexible could include gym passes and also allowing them to have sometimes off to be with their families and friends.

Sign up to view the full document!

From $10 to earn access

Only on Studyloop

Original template