Business

Case Study

Note: the third column is for you own case study

 MADE BY VEYILIA

OPERATION
ROLE OF OPERATIONS MANAGEMENT

Maccas

Strategic role of operations

Mcdonald’s invested in a global training program (Hamburger
management University) to ensure efficiency and reduce overall costs
INFLUENCES

Maccas

• McDonalds has 37,000 restaurants in 120 countries

• In 2018, McDonald’s ranked 11th on Forbes list of most

valuable brands
Globalisation
• 2017 report showed US$91billion in sales, showing
success in maintaining competitive advantage by
adapting to global conditions

• Digital menu boards, automatic drink dispensers, online

Technology ordering apps

• After complaints of coffee quality, McDonalds made a

promise in 2011 that coffee would be barista made
Quality expectations • In 2018, Mcdonalds started using fresh (not frozen) beef
patties, despite taking longer to cook, quality was
improved

• In 2015, Mcdonalds dominated western Europe, other

businesses attempted to compete by lowering their
Cost-based competition prices
• Close focus on cost, helps them to maximise profits
 • McDonalds is bound by obligations in relation to
marketing, advertising, product safety and quality
Government policies and guarantees (Australian Consumer Law 2010)
legal regulation
• They must ensure conscionable conduct at a local, state
and federal level

• In 2012, McDonalds opened the Australia's first Green

Environmental sustainability star accredited restaurant in VIC

Corporate Social • McDonalds uses Australian suppliers when appropriate,

Responsibility helping domestic economy
OPERATIONS PROCESSES

Maccas

TRANSFORMED RESOURCES
• Materials - 430 million hamburger buns, 90 million
english muffins, 25 million kilos of beef etc

• Information - noticing a shift in preference towards

healthier choices introduced grilled chicken, salads and
healthier combos

Inputs TRANSFORMING RESOURCES

• HR - has over 106,000 staff, front counter (greet
customers & take orders), host (assisting customers
using the touch-screen machines), kitchen crew
(prepare orders)

• Facilities - grills, fridges, fryers, drink dispensers, coffee

machines, bathrooms (quality facilities impact their
efficiency)
 THE 4V’S
• volume = changing volume of seasonal products (eg.
frozen drinks and ice cream) to maintain short lead times

• variety = having breakfast, beef and chicken burgers, 16

drinks, 7 wraps and salads, 50 mccafe items

• variation in demand = having contact to fast produce

when fluctuations occur

• visibility = customers can give online feedback using an

online form or customer service line

SEQUENCING AND SCHEDULING

• McDonald’s sequences its process so that assembly of a
Transformation processes burger can be managed in a way that is efficiency and
consistent

• Manages timing of making friends, beef patties, nuggets,

dispensing drinks

TECHNOLOGY, TASK DESIGN

AND PROCESS LAYOUT
• technology - online ordering on the ‘mymaccas’ app

• task design - greet the customer, take their order, repeat

order back, state the total

• process layout - kitchen layout is based on appliances

used to make a specific product
 • Seeks customer feedback thorough in-store
questionnaire
Outputs
• Recruiting staff that are customer-centred and friendly
OPERATIONS STRATEGIES

Maccas

• quality - fresh meat and vegetables

• speed - 11 seconds to toast a bun, 20 seconds to

assemble burger, 14 seconds to wrap burger
Performance objectives
• customisation - create your taste menu

• cost - changes in minimum wage in the US caused Big

Mac’s to go from $3.99 to $4.67 (17% increase)

• products = create your taste menu, gourmet creations

New product or service
design and development • services = children’s birthday party packages, play
areas, meeting rooms, free wifi, newspapers

• logistics - McDonalds has established, owned and

operated distribution centres to ensure reliable supply
Supply chain management to its restaurants eg. Australia uses Australian beef, UK
uses British beef

• Outsourcing management IT services and point of sale

Outsourcing software
 • drink-dispensing machines to improve HR costs and
Technology efficiency

• throw out unsold chips after 7 minutes and burgers

after 20 minutes
Inventory management
• using stock control system called manugistics

• control: testing sample of outputs to predetermined

standards
Quality management
• assurance: McDonald’s Supplier Quality Management
(SQMS)

Overcoming resistance to
•
change

• R&D for McDonalds is a constant process focusing on

the external environment
Global factors
• they engage with suppliers, customers & franchisees to
ensure product satisfy stakeholders
 MADE BY VEYILIA

MARKETING
ROLE OF MARKETING

Apple

Brand awareness and customer loyalty are key contributing

factors to Apple’s success

BRAND AWARENESS
• Brand power is both exclusive and invaluable. It
ultimately determines your trademark’s perceived
worth and how much customers are willing to spend
on your products. True value of product is influenced
Strategic role of marketing less by manufacturing costs (the effort it took to
goods and services visualise and create product) and more by the amount
of people are willing to pay for it.

• For the eight consecutive years, Apple sits at the top

of Forbes’ annual

CUSTOMER LOYALTY
• Apple have pestered a sense of community as it works
best with other Apple products. Before people can
even consider switching to a new provider, they have
to consider all they would be giving up
 OPERATIONS
• Whenever a product is discontinued and a new
product range is launched, significant changes to the
process layout, inputs sourced, and quality control
systems have to take place. In apple, Foxconn
conducts factory management

HUMAN RESOURCES
• New product launches mean training for staff.
Foxconn employees are trained for assembly and
Interdependence with other quality control and front-of-house staff will be briefed
on specifications and promotional offers
key business functions
• Staff at the ‘Genius Bar’ will also need to be upskilled
in repair and replacement

FINANCE
• The launch of new products and the discontinuation
by revenue and cost analysis conducted by the finance
team. Budgets will also need to be created to
effectively control costs and
minimise expenses  produces design schematics
and specifications
 SELLING APPROACH
• The innovative nature of the smartphone design
created a selling approach to marketing, specifically
during the introductory stage of the product life
cycle. The introduction of smartphones created
capabilities beyond existing customer exceptions
therefore marketing strategies were aimed at
education customers on the features
Production, selling,
MARKETING APPROACH
marketing approaches • As smartphones become more prominent, the focus
switched from being informative to persuasive

• Extensive market research is conducted to ensure that

new products are developed in order to meet
customer needs and wants. This is done through
primary research and surveys about design and
applications (for example the 5-star rating system on
the AppStore)

Types of markets – resource,

industrial, intermediate, Consumer market

consumer, mass, niche

INFLUENCES ON MARKETING

Apple

PSYCHOLOGICAL
• The 5 series (C and S) were released with to cater to
diverging psychological influences — the freedom of
colour and the rigidity of precision and performance

• The iPhone 5c catered to a customer-bade that

prioritised choice, colour and expression while the
more expensive, higher quality iPhone 5c was tailored
for those seeking innovation and technological
superiority

Factors influencing customer • Sales for the 5c were significantly lower than the 5c
highlighting the target market for Apple
choice

SOCIOCULTURAL
The prominence social media, mobile gaming and video
streaming in recent decades has led to a strong focus on
design features that support these capabilities. Consequently,
the marketing of iPhones tends to heavily promote the
camera, the screen and the processing specifications in order
to differentiate specifications in order to differentiate their
product from competitors
 ECONOMIC
• Economic shocks such as Global Financial Crisis in
2008 and subsequent economic downturns has
created the need for Apple to create a separate line of
low-cost iPhones such as the iPhone SE. In addition, it
as taken longer for Apple to discontinue older lines in
certain regions as it remains price competitive (e.g.
iPhone 7 in India)

GOVERNMENT
• In 2014, the launch of the iPhone 6 and 6Plus was
delayed in China due to government concerns
regarding privacy, third party accessibility and iCloud
features (such as location tracking)

• China is fastest growing market of smartphones and

this significantly affected the product launch revenue

• Competition and Consumer Act 2010 prohibits

advertising of a misleading and deceptive nature

• Class action against Apple – iOS slowing existing

devices intentionally and affecting battery
Consumer laws performance

• Another issue was caused by “design anorexia” which

referred to the imperative to make smartphones
thinner and lighter causing them to bend in
customer’s back pockets
PRICE DISCRIMINATION
The Competition on Consumer Act prohibits price
discrimination, which involves setting different prices for
the product in different locations. Apple must sell the
iPhone at the same price to all customers in Australia.
However, this does not prevent other retailers of iPhone
from determining their own price for the same product

IMPLIED CONDITIONS
Australian Consumer Law required goods to be of
acceptable quality, meaning certain conditions are
implied. Examples of implied conditions in the sale and
marketing of the iPhone include:

• The smartphones are fit for purpose

• They correspond with their description
• Apple will make available spare parts, repairs, and
comply with express warranties

WARRANTIES
For Australian consumers, the Apple iPhone warranty
must applicable Australian laws and regulations. Apple’s
iPhone (1 year) warranty states that:`

“customers are entitled to a replacement or refund for a

major failure and for compensation for any other reasonably
foreseeable loos or damage… to have the goods repaired or
replaced if the goods fail to be of acceptable quality… repair
of the goods may result in loss of data.”
 PRODUCT PLACEMENT
The evaluation of digital media has reduced the value of
television advertising for marketers and has led to the
increasing presence of product placement in movies and
music videos.

ENCOURAGEMENT OF MATERIALISM
Apple aggressively markets each new model of iPhone,
attempting to convince consumers of the need to
upgrade or switch brands. The ethics of such marketing is
seen as questionable given the high levels of
consumerism and environmental issues surrounding e-
waste

HEALTH CONCERNS
• The nature of smartphones as the product that
exposes users to microwave radiation

Ethical • In 2011 the World Health Organization (WHO) ranked

mobile phone radiation alongside lead and DDT as
potentially “carcinogenic to humans”. Recent findings
also indicate potential implications for reproductive
health, hearing, memory, sleep, and various
neurological disturbances associated with mobile
phone radiation

• According to one researcher from the University of

Sydney, the long-term effects of the associated
radiation exposure, particularly in children, is simply
unknown

• Due to rising health concerns with mobile phone

radiation, some governments have begun to impose
regulations on Wi-Fi exposure. Since 2016, it is against
the law to give a mobile phone to a child aged seven
years or younger in Belgium. A number of other
countries are adopting similar restrictions
MARKETING PROCESS

Apple

STRENGTH (INTERNAL)
• Strong global brand and customer loyalty
• Strong price control
• Strong integrated eco system (integration of Apple
products such as iPhone, iPod, Macs, Watch)
• Have their own operating systems (iOS)
• Apple considered as industry leader in supply chain
management
• A history as leading innovator of quality
smartphones and other electronic goods
• The world’s largest technology brand by revenue,
with the iPhone its leading product
• Low production costs due to outsourcing

Situational analysis WEAKNESS (INTERNAL)

• Rising costs and quality concerns with outsourcing
• Over-dependence on the iPhone, which is rapidly
losing market share
• Incompatibility with different operating systems
(OS)
• Expensive accessories needed to be upgraded with
some new models
• Dependence on a limited number of overseas
suppliers increases the risk of lead times and delays.
For example, displays from Samsung
• Exposure to bad publicity due to the actions of its
outsourcing partners (lack of CSR)
• High price relative to competitors, particularly in the
Asian market
OPPORTUNITIES (EXTERNAL)
• Design development of new products that
differentiate Apple from its competitors and create a
competitive advantage
• Supply chain management strategies that reduce
variable costs (expense controls) as well as improve
inventory management
• Expanding the outsourcing of operations to
countries such as India to avoid local taxes and
duties, as well as provide access to the growing
Indian market for smartphones
• Promoting older models such as the iPhone 7 to
compete in the mid-price range in developing
countries
• Further partnerships with mobile network
companies in high growth markets, creating new
distribution channels
• Apples can’t control the price discrimination of other
company

THREATS (EXTERNAL)
• Increased competition, particularly from Asian
manufacturers (eg. Huawei, Oppo and Xiaomi)
• Declining sales growth in significant Asian markets,
particularly China
• Rapid technological change I the smartphone market
leading to shorter product life cycles
• Continuation of the China-U.S. trade war leading to
higher taxes (tariffs) on Chinese imports
• An appreciation of the US dollar may affect demand
for iPhones in overseas countries
• Growth in Android OS
• Competition in online music market (affecting sales
of iTunes and supporting products)
 MARKET SHARE
The expectation that each new generation of
smartphones should significantly outperform the previous
one has negatively impacted iPhone sales
• Apple has slipped to 3rd in market share – this is
largely owing to the fact that Huawei has cornered
the market for lower-priced smartphones which
Apple does not compete in

• The high value of the USD has also impacted iPhone

sales making it less competitive in international
markets

• The launch of 5G devices ad foldable smartphones

has kept Samsung firmly on top of the market

PRODUCT LIFE CYCLE

Apple typically releases new products late into the first
quarter year (Q1) in order to allow peak sales in second
quarter year (Q2)

• Every month Apple surveys iPhone buyers. The

surveys reveal, country-by-country, what is driving
customers to buy Apple iPhone products versus
other products such as the Android products that
Samsung sells, what features they most use,
customers’ demographics and their level of
Market research satisfaction with different aspects of the iPhone.

• The data collected informs the firm how to proceed

with how they implement 4Ps of Marketing (more
on this in strategies)
 • Marketing objectives may include market share,
market leadership, product positioning, new
markets, product development, innovation,
customer service

Establishing market • Some examples of objectives Apple has set:

objectives o Increase market share in India by 2% in the
next 12 months by securing agreements
with the Indian government to reduce
import costs
o Increase global sales online by 5% in the
next quarter by offering price discounts

The target market is the current and potential customers to

whom a business wants to sell its product

Economic data will indicate opportunities for business based

on the level of economic growth in given countries. India
and China continue to experience the highest rates of
economic growth in the world and are important markets
for Apple’s leading product, the iPhone

Apple uses multiple strategies to target different segments

of the smartphone market:
Identifying target markets • Executives
o Advertisements in newspapers and
magazines (print and online)
• Teenagers
o Product placement and celebrity
endorsements in music videos, TV and
movies
• Young children
o Product placement in kids’ movie
• Mass
Billboards, websites social media, Shot on iPhone campaign
 Apple launched the shot on iPhone campaign in 2015,
showcasing images taken by iPhone users. The campaign
uses billboards television, social media and various other
media across the glove to showcase the iPhone camera
capabilities.
Developing marketing
strategies Product placement has become a more valuable method of
advertising to marketers as digital entertainment
increasingly replaces television viewers. In recent years,
apple has received the Product Placement Award for
achieving more screen time in top movies than any other
company, alongside the likes of Mercedes Benz

Following the implementation of the marketing plan.

Monitoring needs to take place, which involves measuring
Implementation, monitoring the extent to which targets are being achieved e.g. sales
data. Control involves taking corrective action to remedy any
and controlling variances between forecasted sales – for apple, this may be
through the development of a new model or altering
distribution channels to increase the scope of its strategies
MARKETING STRATEGIES

Apple

DEMOGRAPHIC
• Men outnumbered women on a 2:1 basis
when it comes to purchasing Apple products
• The average age of an Apple customer is 35-44
• 1 in 4 people in the 18-34 age demographic
express a strong interest in purchasing an
Apple product at some point in the next 6
months
• Apple users are 94% more likely to be affluent
than others who utilize mobile devices on a
regular basis

Market segmentation, GEOGRAPHIC

• High density urban centres
product/service differentiation • Product development caters to Asian markets
and positioning (preferring larger screens)

PSYCHOGRAPHIC
• iPhone users are more concerned about
viewing their device as a status object than
their Android counterparts
• They are also less concerned with owning
devices that are preferred by most people
(hipsters)
• Personality tests show iPhone users displaying
lower levels of humility and honesty and
higher levels of emotionality, as well as being
more extroverted than Android users
BEHAVIOURAL
• Strongly linked to carrier plans available – data
plans are more popular (tied to the strong
social influences)
• Capitalises on strong loyalty
• Heavy use customers with strong integration
with ecosystem

DIFFERENTIATION
• Design, innovation and quality – points that
allow the company to charge a premium on
their products
• More recently, differentiation has become
more of a challenge for Apple receiving
criticism as being more of a market follower
e.g. The “new features” on iPhone X such as
OLED display, waterproofing and facial
recognition having been available in
competitors for years
• This has led the company to claim the features
are not the point of differentiation, rather the
quality of the features (Camera, design)
• The marketing mix has also proven to be
effective as customers are still willing to pay
the higher price for their product
• Therefore, it can be argued that Apple’s point
of differentiation is psychological rather than
physical
 • Focus on quality, design and appearance
• Unique operating system (iOS)
• A plethora of apps available via Apple’s App
Store
• Camera of high quality and capacity
• Location and voice recognition services: GPS,
Siri
• High memory capacity
Products • Combability with other Apple products such as
Apple’s Watch (however new models are often
not compatible with older accessories)
• Strong brand image and highly visible logos on
Apple products
• Packaging suggestive of quality
• 5-tiered product mix
• Apple Pay for customers in selected countries
(with plans for expansion)

• Price skimming is used when a new iPhone is

released, positioning it as a leading edge,
quality product
• When a model is upgraded, the older model
price is reduced to be more competitive
(competition-based pricing) usually aligned
with the latest Samsung model
Price including pricing methods • A competition-based pricing strategy is
adopted for low cost and older models
• Bundling plans offered by network providers
allow customers to pay for their phone over a
two-year period, making the high price of
iPhones somewhat less significant
• Buy-back program and discounted prices on
older models in Asia
 • The use of media to create a highly publicised
event of new product launches
• TV and mass media advertising has
traditionally focused on the innovation, quality
and design features of he iPhone, as well as
being connected with others (social media,
FaceTime)
• Product placement in TV shows and movies
Promotion e.g. House of Cards, The Intern, The Simpsons
• Shot on iPhone campaign
• Use of website for launches and product
information
• Extensive use of social media
• Business magazines and journals to target
executives (print and online)
• Publicity and a secrecy approach to keep the
media guessing about upcoming models

• Distribution of iPhones by online sales, Apple

stores, mobile carriers (such as Telstra, Optus,
Virgin, Vodafone in Australia), and retail
mobile stores
• In 2018 Apple has 506 retail stores in 24
countries and online stores available in 40
countries
Place/distribution • Recent contracts secured with Mobile China
Inc. (the country’s largest mobile carrier), as
well as leading distributors in India and Japan
• Approximately 30% of Apple sales are made
through direct distribution channels (online
and Apple stores) and 70% were through
indirect channels such as network carriers and
other retailers
 PEOPLE
• Strong focus on sales and customer service in
Apple stores
• Job title such as “Genius” and “Specialists” to
raise employee status
• In-store, online and phone support for after
sales, repairs, complaints and warranties

PROCESS
• Online ordering system
• Free upgrades of iOS for existing customers
People, processes and physical • Pre-ordering available prior to new product
evidence launches (when purchasing directly from
Apple)
• Roaming payment system in apple stores so
customers don’t need to wait at a check out

PHYSICAL EVIDENCE
• Apple stores are designed to reflect the
importance of innovation and quality
• Encourage hands-on approach, allowing
customers ‘test-drive’ apple products
• Elaborate building entrances for most stores,
positioned in prime city locations

PRODUCT
• Providing tech specs of their products without
the need for brochures/manuals allows cost
E-marketing cutting
• Multimodal website of stills and videos
• FAQs allow for customer engagement
PRICE
• Allows for greater transparency between
customers and competitors
• Can engage greater with price comparison
products
• Less overheads therefore lower prices (or just
greater profits)

PROMOTION
• Images, videos and audio all on a scroll format
• Keynote speeches available online
• Simplistic and minimal style draws focus on
product
• Promotion through email and social media

PLACE
• Provides a platform for the global market
• Can easily change language preferences
• Allows for greater flexibility to access
• Limitations in terms of wanting to view, hold
and test the product as well as information
security and damage through shipping
 • Creates competitive advantage especially when
launching a new product due to recognition
• Using the same marketing strategy globally creates
economies of scale and therefore reduces costs

STANDARDISATION
• The standardised pricing nationally and some
price differences internationally creates little
variances in sales figures
• The strategy of using simple images and
minimalistic ads creates a standardized
marketing approach where very little
adjustments need to be made to account for
cultural differences
• This standardized approach is also seen when
featuring people from diverse backgrounds in
their advertisements
Global marketing
CUSTOMISATION
• Income levels (price)
• Tastes and preferences (product)
• Culture and religion (promotion)
• Government regulation and infrastructure
(place)

GLOBAL PRICING
• Global pricing considers different the
purchasing power of countries and exchange
rates in different economies. Other factors to
be considered include domestic and
international taxes, transportation costs and
trade relationships
• For example, the relatively high price of
iPhones in India and Russia are solely from
taxes both international and domestic
 MADE BY VEYILIA

FINANCE
ROLE OF FINANCIAL MANAGEMENT

Maccas

• Profitability - aims to grow operating margin between

20-40% annually

• Growth - aims for 3-5% sales growth annually

Objectives of financial • Efficiency - aims to reduce administrative expenses by

management 1%

• Liquidity - aims to increase on-hand cash from $12B to

$2.5B (USD) from 2016-2017

• Solvency - continue returning cash to shareholders

INFLUENCES ON FINANCIAL MANAGEMENT

Maccas

• 2017 annual report shows that the company has

Internal sources of finance $48.3Billion (USD) in retained profits

DEBT
• Short term – McDonalds has available $25Billion (USD)
in overdraft

• Long term -- McDonalds leases 12,262 stores

External sources of finance worldwide, paying around $16Billion (USD) annually

EQUITY
• Ordinary shares – McDonalds has issued 1,660 million
shares

Financial institution •

• in 2016, Mcdonalds paid AU$109million in tax on

Influence of government AU$374 million in profits

Global market influences •

PROCESS OF FINANCIAL MANAGEMENT

Maccas

• in 2018, McDonalds planned to outlay US$2.5billion in

capital expenditure to renovate and open new stores,
recognising financial needs and budgeting for them

DEBT AND EQUITY FINANCING

• due to currency fluctuation risk in 2017, Mcdonalds
heald approx. 41.5% of its debts in other currencies (not
Planning and implementing USD) - advantage of debt financing

MATCHING THE TERMS AND

SOURCE OF FINANCE TO BUSINESS PURPOSE
• McDonalds lease most of the land and buildings in
which they use, they use a 25 year lease contract
matching the 25 year franchisee lease from the
company

• McDonalds compares its ratios with Yum1 Brands Inc

(KFC, taco bell)

• current ratio - Mcdonalds = 1.85:1, Yum! = 1.65:1 (2017)

Monitoring and controlling • debt to equity ratio - both Mcdonalds and Yum! Have
negative equity in 2017 due to buying back stock from
shareholders

• gross profit ratio - McDonalds = 68%, Yum! = 69%

 • McDonalds have intangible assets such as goodwill
Limitations of financial which cannot be recorded on financial reports

reports • McDonalds uses straight-line depreciation which can

impact the statement of assets

Ethical issues related to

•
financial reports
FINANCIAL MANAGEMENT STRATEGIES

Maccas

Cash flow management •

Working capital management •

• fixed costs = council rates, insurance premiums

• variable costs = royalty fees payable, foods, drinks,

Profitability management packaging

• mixed = wages, electricity, water

• Mcdonalds holds $12.4Billion in debt in countries other

than the US (42% of its long-term debt)
Global financial management
• McDondalds uses natural hedging techniques such as:
exchange rate contracts, options and currency swaps
 MADE BY VEYILIA

HUMAN RESOURCES
ROLE OF HUMAN RESOURCE MANAGEMENT

Maccas

• they publish a 60-page document named ‘business

Strategic role of human conduct - the promise of the golden arches’ setting out
resources the standards and expectations the business has of
employees

• Mcdonalds outsources work health and safety

requirements to a company called SafetyWorks to
Outsourcing ensure all stores are best equipped to meet legal
mandates
KEY INFLUENCES

Maccas

• McDonalds has 1.9million employees, meaning they are

a stakeholder in the business and affect HRM

Stakeholders • 4,000 of their employees are apart of Shop, Distributive

& Allied Employees Association (SDA) - the party which
negotiated enterprise agreements for workers
Australia wide

THE EMPLOYMENT CONTRACT

• McDonalds is reliant on Fair Work Act 2009 to govern
their employee/employer relationships (created a
national approach to workplace award and
negotiations

Legal WORK HEALTH AND SAFETY

AND WORKERS COMPENSATION
• The document named ‘business conduct - the promise
of the golden arches’ outlines their commitment to
providing a safe work environment, mandating
accidents and unsafe practice must be recorded
promptly

Economic •

• they use a system called Metime - an online platform

Technological that is used for rostering, training and pay
 Social • they are open 24-hours to meet changing work hours

• has a policy to say that full time students will work no

more than two shifts pers week and those below 17
Ethics and CSR years will not work beyond 11pm or before 5am on a
school day
PROCESSES OF HUMAN RECOURCE MANAGEMENT

Maccas

• uses a centralized approach, applicants can submit their

Acquisition details through a central website

• McDonald's Australia spends AU$40million annually on

Development training

• McDonalds Australia holds staff surveys to receive

Maintenance feedback from staff

• → being in the fast food industry and attracting first job

workers, the staff turnover is generally higher
Separation
• 42% for crew and 20% for management
STRATEGIES IN HUMAN RESOURCE MANAGEMENT

McDonald’s Apple

• As McDonald’s has approximately 37,000 stores

worldwide and operates using strict business guidelines,
viewed as somewhat autocratic.

• McDonald’s maintains that it works closely with

franchisees in decision making Tim Cook has been the CEO of Apple Inc. since 2011.
According to the Wall Street Journal, 7 July 2014:
• Franchise ensures that all staff must precisely follow Cook is more of a consensus builder, which “has
Leadership style detailed operational instructions that limit the scope of contributed to slower decision making at times, nut it has
for participative, democratic decision making also reduced the chaos that sometimes-surrounded Job’s
management style”
• McDonald’s has a very structured hierarchy. This sets a
defined chain of command through the local store,
consistent with autocratic leadership. This leadership
strategy allows for consistency and uniformity across
stores

• McDonald’s employees have specific tasks built into • Apple claims to be more interested in the personality
their job design with little or no scope for change than the technical knowledge of a candidate

• The Wall Street Journal reported, “crew members often • Apple’s ability to move into and dominate completely
Job design have to stop and look at a sheet of instructions” unrelated industries is only possible because of its
extraordinary talent, the way that it mages it, and its
• A sheet of instructions and specific timeframe for a job is approach to building an image that attracts the new
evidence of a task-oriented approach, which allows for skills needed to be successfully move into completely
consistency, efficiency and uniformity across stores new product areas
 • Most McDonald’s employees start as crew members and
are recruited externally. A central application process
makes the recruitment process efficient and streamline
for local managers, and consistent online screening of
applicants can help ensure that new recruits fir
Recruitment McDonalds’s requirements for an employee

• Most management positions both at the local store and

at corporate headquarters are filled internally via the
promotion of existing employees

• McDonald’s provides extensive training opportunities for

its employees and franchisees

• Potential franchisees must undergo extensive training

and development. In Australia, the minimum timeframe
for this is nine months full-time during which trainees
Training and development are unpaid

• McDonald’s Australia delivers recognised in-house

training to employees, up to the level of Advanced
Diploma. McDonald’s also recognises the value of other
educational opportunities, providing scholarships.

• McDonalds UK employees are subject to biannual

performance reviews to assess their progress and set
training and development goals for the future
Performance management
• ‘crew member of the month’ a reward for
performance which crew members can strive for
 • up to 50% discount on food (monetary)

Rewards • corporate employees are eligible for a company car,

healthcare services and discounted child care (monetary)

• McDonalds offers the opportunity for employees to

Global work in different locations around the word

• Employees can discuss issues with direct supervisors or

Workplace disputes the employee can contact the Global Compliance Office
and report and issue with may lead to mediation
EFFECTIVENES OF HUMAN RESOURCE MANAGEMENT

Indicators McDonald’s Apple

Apple’s culture has been shaped by a history of

83% of McDonald’s restaurant managers in its top innovation, its leaders, and the peer pressure among
Corporate Culture markets globally think it is a great place to work employees to be among the contributors to the final
product that the customer sees

Benchmarking Key Variables

“the average length of time a crew member stays with

The average tenure is two and a half years, as Apple
us has increased from 18 months to 21�2 years.”
retail stores have become increasingly busy, turnover
Change in staff turnover Lowering staff turnover often indicates a happier,
rates have increased too
more content workforce.

Absenteeism
 “the employees assembling iPhones, iPads and other
Apple devices work excessive overtime, in some cases
75% of managers feel favourable about the training seven days a week, and live in crowded dorms”
Accidents
they receive on the job
136 workers at an Apple supplier in eastern China
were injured

According to The Asia-Pacific Journal, 12th August

2013:
In 2013, 87% of managers felt that the person they Over 85% of Foxconn’s employees are rural migrant
Level of disputation
reported to support their professional development workers between 16 and 29 years old, has a strong
expectation of higher wages, better working
conditions and prospects for career advancement.

In 2013, 89% of crew members were satisfied that

Worker Satisfaction
they receive the training needed to do a good job