2. Introduction-1 McDonald's Crisis: 1998-2003 Ray Kroc 1955-1973 Realized McDonald’s formula of self-service, paper-service, quick-service 1962 McDonald’s introduce the world famous Golden Arches logo
3. Introduction-2 Fred Turner 1973-1987 Management Science: established quality control measures, Turner’s manual Training: Hamburger University Supervising franchisees: Field visit report Management style: Expanded the authority of regional manager Advertising: “Ronald McDonald” McDonald’s under attack: Franchisees’ Rights McDonald’s under attack: Union Rights
6. Cost Cutting: redesign restaurant, efficient construction method, Open franchisee to choose insurance company, mini-McDonalds’ and expand small-size non-traditional site
74. Business Strategy China Operated in China since 1990 World’s fastest growing emerging market No. 1 growth market for McDonald's Goal by 2013 ROA 10% Sale growth 20% Sales (company & franchise) 50% Operating Cost 5% Increase to 2,000 branches
86. Marketing Strategy: People Service people Training: Operation man, Countermen Quality Control: Field Service report (service, quality, cleanliness andoverall performance) McDonald’s Best Practice: Restaurant, Country and Region McDonald’s staff: Competency in carrier McDonald’s culture: Each of employee should have McDonald’s culture mindset
106. Franchise Management IN ACTION Increase Geographical Divisions Seeking for new franchisees Manage and Control stores Provide Support Systems Located in Shanghai (Head) Beijing (Sub Unit) Sichuan (Sub Unit) Operation Strategy
107. Operation Strategy Franchise Management IN ACTION Support Systems Training Marketing Supplier Management HR Management Financial Management Properties & Location System Management Restaurant Management Business Management Preparing for Ownership
114. Operation Strategy Quality Control IN ACTION “Standard in Food, Service and Cleanness” Control by …GROIP (Global Restaurant Operation Improvement Process)