Choose a multinational company and what change it effected within the company which allowed it to be more competitive.

Choose a multinational company and what change it effected within the company which allowed it to be more competitive.

“The diversity debate has shifted from the moral obligation of affirmative action to a business imperative. CEOs, faced with intense competition in global markets, record numbers of mergers and acquisitions, and the global war for talent, are focusing on how to leverage diversity as their competitive differentiator. “The challenge for many CEOs is to directly infuse their diversity belief systems into the organization. The test for diversity practitioners in many organizations is to overcome diversity resistors and to leverage the power of the CEO’s vision to make diversity happen. “

– Dr. Vanessa J. Weaver, “How to Relate to the New Business Models.” Business Week

For every business it is the bottom line results which are important.  Mc Donald’s is one of the very many companies who are performing better through a diverse workforce.  We are all no strangers to the “Golden Arch” which symbolizes the world’s largest chain of hamburger fast food restaurants which is found in “119 countries and territories and serves more than 58 million customers daily.  The company operates over 31,000 restaurants worldwide and employs more than 1.5 million people” (Mc Donald’s.  http://en.wikipedia.org/wiki/McDonald’s, retrieved 1 May 2011.)”  Mc Donald’s is traded on the NYSE as MCD.  The company HQ, McDonald’s Plaza, is located in Oak Brook, Illinois, USA.

“Mc Donald’s restaurants started in 1940 and opened in the United States, Canada, Costa Rica, Panama, Japan, the Netherlands, Germany, Australia, France, El Salvador and Sweden, in order of openings.  (Mc Donald’s.  http://en.wikipedia.org/wiki/McDonald’s, retrieved 1 May, 2011.)  The Mc Donald’s fast food chain sells primarily hamburgers, cheeseburgers, chicken products, French fries, soft drinks, shakes, breakfast items, and desserts.  The company has incorporated salads, wraps and fruits for healthier alternatives for its clients.  Mc Donald’s restaurants are operated either via a franchisee or an affiliate or the corporation itself.  “The corporation’s revenues come from the rent, royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants.  McDonald’s revenues grew 27% over the three years ending in 2007 to .8 billion, and 9% growth in operating income to .9 billion.    (Mc Donald’s.  http://en.wikipedia.org/wiki/McDonald’s, retrieved 1 May 2011.)” 

McDonald’s UK business model differs in that fewer than 30% of their restaurants are franchised with the majority under the ownership of the company.  In other countries, McDonald’s restaurants are operated by joint ventures (JVs) of the McDonald’s Corporation and other local entities of governments.  “As a matter of policy, Mc Donald’s does not make direct sales of food or materials to franchisees, instead organizing the supply of food and materials to restaurants through approved third party logistics operators.    (Mc Donald’s.  http://en.wikipedia.org/wiki/McDonald’s, retrieved 1 May 2011.)”    Mc Donald’s trains its franchisees and others at Hamburger University in Oak Brook, Illinois, USA.  According to Fast Food Nation by Eric Schlosser (2001), nearly one in eight workers in the U.S. have at some time been employed by McDonald’s. (According to news piece on Fox News this figure is one in ten.)  (Mc Donald’s.  http://en.wikipedia.org/wiki/McDonald’s, retrieved 1 May 2011.)”   

“Despite the objections of McDonald’s, the term “McJob” was added to Merriam-Webster’s Collegiate Dictionary in 2003.[23] The term was defined as “a low-paying job that requires little skill and provides little opportunity for advancement”.[24] In an open letter to Merriam-Webster, Jim Cantalupo, former CEOof McDonald’s, denounced the definition as a “slap in the face” to all restaurant employees, and stated that “a more appropriate definition of a ‘McJob’ might be ‘teaches responsibility.’   Merriam-Webster responded that “we stand by the accuracy and appropriateness of our definition.”[25] In response to public pressure, McDonald’s has sought to include more healthy choices in its menu and has introduced a new slogan to its recruitment posters: “Not bad for a McJob“.[35] (The word McJob, first attested in the mid-1980s[36] and later popularized by Canadian novelist Douglas Coupland in his bookGeneration X, has become a buzz word for low-paid, unskilled work with few prospects or benefits and little security.) McDonald’s disputes the idea. In 2007, the company launched an advertising campaign with the slogan “Would you like a career with that?” on Irish television, outlining that their jobs have many prospects.   (Mc Donald’s.  http://en.wikipedia.org/wiki/McDonald’s, retrieved 1 May 2011.)”   

Improved retention, recruitment and promotion are seen at Mc Donald’s.  The company actively recruits older workers for management jobs and employs many older workers in its restaurants.  The hiring of older staff has boosted customer satisfaction.  “CEO Edward Rensi has been quoted saying that the company finds older workers to be particularly well motivated, with discipline and work habits hard to find in younger employees.  (Benefits of Diversity.  http://professionalpractice.asme.org/MgmtLeadership/Diversity/Benefits_Diversity.cfm, retrieved 1 May, 2011.)”  “A study conducted by Lancaster University Management School into 400 McDonald’s restaurants found those which employed staff aged over 60 saw customer satisfaction rises by a fifth, while 47% of restaurant managers felt older workers went the extra mile to provide a good service.  The survey also showed 69% of McDonald’s managers thought workers over 60 could connect better with customers, and 44% believed they brought beneficial mentoring skills to the workplace that helped younger workers.  The fast-food retailer now employs more than 1,000 people aged 60 and over across two-fifths of its restaurants. (McDonald’s urges employers to hire older staff to boost customer satisfaction.  Personnel Today.  Baker, Kat.  12 August, 2009.  http://www.personneltoday.com/articles/2009/08/13/51758/mcdonalds-urges-employers-to-hire-older-staff-to-boost-customer.html, retrieved 1 May, 2011.)”

 

 

 

Credit:ivythesis.typepad.com