1- Describe some of the management challenges McDonald’s has likely faced in its expansion

internationally?
McDonald venture into international markets began in 1976 with restaurant openings in Canada and Puerto-
Rico. It continued to expand around the globe at an epic pace,
In fact, the 5000th McDonald’s restaurant to be opened was in Kanagawa, Japan in 1978 which further extended
the global reach of the fast food chain. By 1981, McDonald had begun operations in Spain, Denmark and
Philippine, and within two years it has a physical presence in a total of 32 countries around the world.
As a sign of changing political climate between the United States and the Soviet Union, the first McDonald’s
restaurant in Moscow was opened on. Entering the Soviet Union market, however, was not without difficulty.
According to Tony Royle establishing such a well-known US icon in the former Soviet bloc was not a
straightforward matter. It took 14 years of difficult negation, by a highly persistent group of McDonald
managers
As times and tastes have changed, so too has McDonald’s as evidenced in its offerings of premium coffee and
Wi-Fi access to its customers

 Lake or hardest to find people and talents

 It was a big challenge to issue an intellectual capital as it is collective brainpower and shared
knowledge of a workforce that can be used to create value
 Challenge to use modern technology to effectively use of online resources: Databases, Job searches,
Recruiting, Social Media
 The worldwide interdependence of resource flows, product markets, and business competition
that characterize our economy.
 Ethical expectations for modern businesses across all countries :
o Integrity and ethical leadership at all levels
o Sustainable development
o Natural environment protection
o Consumer protection
o Human rights
 Workforce diversity reflects differences with respect to gender, age, race, ethnicity, religion, sexual
orientation, and able-bodiedness
 A diverse and multicultural workforce both challenges and offers opportunities to employers
 How diversity bias can occur in the workplace: Prejudice, Discrimination, Glass ceiling effect
McDonald’s Corporation, the company that Ray Kroc built, has been selling hamburgers outside of the U.S. for
decades. It certainly qualifies as one of the top global brands in today’s marketing vernacular, operating in 119
countries and deriving a significant portion of its revenues from outside of the U.S.
Each country implements the core McDonald’s menu to which in-country management is free to add localized
menu items, e.g., the "Croque McDo" in France, the "Chicken Maharaja Mac" in India and salads in many parts
of the world. International in scope, its Hamburger University is designed to deliver training programs targeting
different management levels, ranging from restaurant managers to department heads and executives. In addition
to the home office campus based in Oak Brook, Illinois in the U.S., there are two in Europe (London and
Munich) and one each in Tokyo, Sao Paulo, Hong Kong and Sydney.
Main challenges are of the forces behind economic globalization. It looks at the need for, and nature and
benefits of, effective product globalization and its twin process, localization. It provides definitions of key
concepts, introduces and explains major functions and workflows, and flags key issues that those going global
for the first time need to address.
McDonald’s training programs are delivered in up to 40 languages, with the primary languages being Chinese
(Simplified and Traditional), English (both International/Commonwealth and U.S.), French, German, Italian,
Japanese, Portuguese and Spanish for the top markets. The training materials consist of two elements: core
content which applies globally for maintaining consistent food quality and services worldwide, and locale-
specific content based on local menu items, food safety regulations and labor practices, etc.
2- What types of managerial levels do you think exist within the McDonald’s corporation?
Operating Workers
Do Work directly which affecting customers’ satisfaction
Team leaders and Managers
Helping the operating workers do their jobs and solve problems
Top Managers
 Keep organisation’s mission and strategies clear

How would these levels interact to accomplish the goals of the organisation?

Managers achieve high performance for their organizations by best utilizing its human and material resources
Management is the process of planning, organizing, leading, and controlling the use of resources to accomplish
performance goals
All managers are responsible for the four functions
The functions are carried on continually

3- How will McDonald’s be able to develop managerial skills and competencies necessary to continue
their success in the future?

Based on its past experiences, the future is looking bright. On the international front, there continues to be sold
growth, McDonalds accomplished this through has established a code of conduct for their Board of Directors to
insure they act in the best interests of the company, by asking them to agree that they will:
• Act in the best interests of, and fulfil their fiduciary obligation to McDonald’s share holders
• Act honestly, fairly, ethically and with integrity
• Conduct them in professional, courteous and respectful manner.
• Comply with all applicable laws, rules and obligations.
• Act in good faith, responsibly, with duo care, competence and diligence, without allowing their
independent judgement to be subordinated.
• Act in a manner to enhance and maintain the reputation of McDonald’s
• Disclose potential conflicts of interests that they may have regarding any matters that may come before
the Board, and abstain from discussion and voting on any matter in which the director has or may have
a conflict of interest
• Make available to and share with fellow directors information as may be appropriate to ensure proper
conduct and sound operation of McDonald’s and the board of directors.
• Respect the confidentially of information relating to the affairs of the company acquired in the course
of their service as directors, except when authorized or legally required to disclose such information.
A code of conduct has also been established to apply to all employees in order to insure they act in a manner
acceptable to the organisation and those employees are committed to acting ethically in all of the business
dealings impacting McDonald’s
4- Review McDonalds’s international operation currently in existence, how do you feel that they have
learned so far will assist them in further international expansion?

McDonald’s Corporation is the largest chain of fast-food restaurants in the world which specializes in
hamburgers, French fries, and soft drinks. McDonald’s is famous in 119 countries of the world. Company’s
international success is guaranteed by the methods which McDonald’s uses entering foreign market. “Think
global, act local” describes the goal which McDonald’s follows in foreign countries.

First McDonald’s appeared in 1940, and it was obvious that this enterprise would become a franchise. Since 25-
30 years’ period overseas expansion is the main objection for McDonald’s. Introducing American culture to the
world the company raises it’s success, profitability, and compatibility. McDonald’s globalization model serves
as an example for many other franchises. McDonald’s uses the in-country production mode entering foreign
countries. International restaurants are either company-owed, joint ventures, or operated by franchisees. The
company estimates market potential of the country, calculates maximum profit expectation, and starts operating
following the time frames for successful growth.

McDonald’s is aiming to dominate in markets with growing income and potential. Market seeking activities are
strategic motives for McDonald’s in choosing entry modes for global market overseas. McDonald’s chooses
contractual and equity entry modes because the level of control, and the relationship between franchise and
franchisee in this case has the most positive outcome. Easily assessing foreign markets with minimum level of
investment and high profit expectations is what McDonald’s entry mode choices stand for. McDonald’s
introduces it’s unique concept to international markets, and it becomes a win-win cooperation. First of all,
McDonald’s affect business standards in foreign countries. It also increases standards of service in foreign
countries by introducing machinery, clean and neat restaurants, quality products. Franchisees, in return, propose
their innovations. So, McDonald’s benefits from international operations by having access to new know-how’s.
For example, mini-McDonald’s appeared in Singapore, and broadened the popularity of fast food restaurant.
Sweden has applied an innovation of enhanced meat freezer. What is of the most importance is that McDonald’s
is flexible to foreign culture food habits and manipulates with its menu accordingly. Nevertheless, McDonald’s
is presented as original American franchise, though having different “faces” and approaches overseas.
Based on its past experiences, the future is looking bright. On the international front, there continues to be sold
growth.