Problems Associated With Buying A Franchisee Of Mcdonalds

The business that I want to open would be a franchise of a McDonald’s restaurant. McDonald’s is a fast-food restaurant that serves a variety of products, but is mostly known for its

Since this is the study of the entire organization in respect to strategy, environment, resources and context. Each of these facets provides useful information in respect to training needs and also for the probability of successful transfer of training to the workplace. It is necessary to asses a few important factors: does Tim Hortons have the resources in terms of money, time and expertise to design and deliver an adequate training program? It would be beneficial to promote a learning culture where employees recognize that learning is part of their job and that learning is an essential part of work life. By considering these factors, both the training transfer and the culture of the organization provide information about whether or not the training is likely to be successful.

With the enlargement of company across countries, McDonald’s has started to raise the franchise fee which has created a lot of hustle bustle among the franchisees. If this forced fee demand continues, many of

Since McDonald’s is a fast food restaurant, they need to train all the new employees on how to make the burgers fast or how to make fries. Orientation is the introduction of the new employees to McDonald’s and it usually comes from another co-worker or the company. It is best to get the orientation from the company instead of a co-worker, since the co-worker can provide wrong information and it’s not official. Training is having the employee learn skills to improve his or her performance. It is the manager’s responsibility to train the new employee in how to do the job but it is usually another employee who trains them. The very first training is what is going to determine a person’s attitude towards the job and his

Due to globalization and increased competition in the fast food industry, a very complex environment is created for McDonald’s. There are various internal and external environmental factors affecting the functions of McDonald’s corporation and demands for new innovations. The factors are as follows:

Some of the advantages with owning a franchise are the comfort of not having to be totally in control of the business. A franchise is usually ran by a someone who is already extremely wealthy,An advantage to a franchise is seeking success at a lower failure rate. A disadvantage is being limited to your earnings, meanwhile a business which strictly belongs to one person may see a 300% increase in profits. Mcdonald's first difference that helps towards tremendous success was being able to franchise correctly. Owning a company millions of people where interested in providing money for. Krocs initial fee to opening up a mcdonald's was a 950 dollar fee, he was more interested in saleing his product. Krocs took a different approach when he started franchising his business he stopped pursing wealthy men who seen his company as an investment and pursued families whos lifes he could change and promising a better future.

In General The McDonald’s Corporation operates and franchises Mcdonald’s restaurants in more than 100 countries. They serve a relevant menu to the location they are in that provides quality food and drinks at affordable prices. McDonald’s system holds both company-owned and franchised restaurants. McDonald’s restaurants are operated and owned under either of the following structures- Conventional Franchise, development licence or affiliate. The relationship between McDonald’s and the franchisees is critical for the overall performance of the McDonald’s brand. The business relationship is supported by contractual agreement that requires commitment to standards and policies to protect McDonald’s Brand.

“Training is the systematic acquisition of skills, rules, concepts, or attitudes that result in improved performance” (Goldstein & Ford, 2002). Pal’s Sudden Service has focused their hiring practices on hiring the right people first, providing the best training possible and reinforcing training everyday. The investment in training has much more to do with the company other than low errors, reduced customer wait times, which lead to high customer satisfaction. The focus on training reduces employee turnover. The costs of hiring and training new employees greatly reduces customer loyalty, both significantly will impact profit. The challenge, comprehend the training requirements, formulating who will train and

McDonald’s has extremely strict rules when it comes to awarding franchises. First, it is very costly to open a new location or purchase an existing location, with the median startup cost being $300,000 (Kalnins & Lafontaine, 2004, p. 750). As well, the company does an extensive background check on a variety of issues including credit history, business management experience, and the acceptance of the contractual agreement that the company provides. Because of these strict rules and the large amount of capital needed to purchase a location, “rates for franchise applicants are 1% for McDonald's” (Norton, 1988, p. 204). This is an extremely low acceptance rate and is even lower than McDonald’s chief competitor, Burger King, who accepts 1.5% percent of applicants (Norton, 1988, p. 199). These low numbers are understandable in the context of the business and risk that is involved. Though the franchise purchaser must pay a large amount of money to gain the rights to the restaurant, they truly have nothing to lose besides money because they are simply running another company’s business model as well as using their trademarks and logos. McDonald’s on the other hand, has a great amount at stake because they place the well being of an entire restaurant into the caretaking of an individual who simply purchased the rights for the store. If the store does poorly or if there are issues with customer service, it reflects

In 1954 Ray Kroc became the first franchisee appointed by Mac and Dick McDonald in San

McDonald has been a well-known and valuable brand for over half a century. The company’s mission and vision is striving to be the world’s best quick service restaurant and formalizing their beliefs into “People, Vision, and People Promise”. “Quality, Service, Cleanliness and Value” also became the company’s motto. The company’s first McDonald store was built “in 1940 by the original McDonald brothers, Dick and Mac. Later in 1954, Ray Kroc became the first official franchisee appointed by Dick and Mac McDonald in San Bernardino, California” (Chandiramani, Ravi). Soon after, Mr. Kroc opened his first restaurant in Des Plaines, Illinois, and the McDonald’s corporation was created. The new franchise began to grow rapidly as a result of its

The company researched for the purpose of this paper is McDonald 's. This company 's history dates back since 1940 when Mac and Dick McDonald initially opened McDonald 's BBQ restaurant located in San Bernardino, CA. In 1948 they shut down the restaurant, just to reopen it as a self-service drive-in restaurant. According to About McDonald’s (2012), their menu included only 9 items, such as: milk, coffee, soft drinks, cheeseburger, hamburger, potato chips, and a slice of pie. Potato chips were then replaced by French fries. The history of this company is significantly market by Ray Kroc, who in 1954 at a visit to McDonald 's in San Bernardino decides to have a franchise of McDonald 's. A year later, in 1955, he opens his first restaurant in Des Plaines, Illinois. The franchising plan allowed growth and by 1965 there were more than 700 restaurants across United States. McDonald 's

Training - Willingness to complete a comprehensive world class training program and become proficient in all aspects of operating a McDonald's restaurant

Employee training at McDonald's is highly structured. Ends-level workers are first taken through the basic Crew Training System. The program consists of on-the job- training and is largely vocational. Each stage of advancement beyond the crew level then entails a new training program, with the skills becoming more complex and generalized.

Mc Donald’s is one of the leading fast food chain businesses in the world which offers quick service restaurants. It has 36 000 restaurants globally, operating through franchisee or by joint ventures affiliates and it serves millions of customers in about 100 countries. Mc Donald’s Malaysia is serving about 13.5 million customers on monthly basis operating in over 260 restaurants nationwide. When entering foreign markets the company utilizes the transnational strategy (Think Global Act Local) which focuses on local responsiveness and global integration (Meyer & Estrin, 2014). Therefore Mc Donald’s Malaysia is tailored on local responsiveness of their consumers considering many factors such as local culture, economic and legal-political environments.