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MC DONALDS CASE STUDY: Worldwide, the McDonald’s Corporation has more than XXXXXXXXXXrestaurants in 119 countries. Every day, the company has more than 69 million customers globally coming through its...

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Worldwide, the McDonald’s Corporation has more than XXXXXXXXXXrestaurants in 119 countries. Every day, the company has more than 69 million customers globally coming through its doors or drivethroughs. While McDonald’s restaurants around the world follow a set of basic rules, each country is given a good amount of freedom to innovate. McDonald’s opened its first Australian restaurant in 1971. From there, it has grown rapidly to where it has more than XXXXXXXXXXemployees working at more than 900 McDonald’s restaurants and cafes serving more than 1.7 million customers every day with annual sales of more than $4 billion. While some of the restaurants and cafes are company run, nearly 80 per cent are franchise businesses operated by individual business men and women. On average, a McDonald’s restaurant has about 100 employees. The Australian business is among the most successful arms of the Chicago-based fast-food empire. Australia has long been acknowledged as a leader within the McDonald’s corporation. For example, the McCafes, launched in Melbourne’s Swanston Street in 1993, have been adopted in other parts of the world. McDonald’s Australia has also been a leader in the introduction of nutritional labelling – a move that has now been copied by McDonald’s operations around the world.
McDonald’s Australia’s Chief Executive Officer is Andrew Gregory who stepped into the position in 2014. Like so many other senior managers within the McDonald’s corporation, Gregory started working part-time for the company in 1992 as a teenage crew member cooking french-fries and serving customers. Initially, it was a way for him to earn some extra money while he was a student. However, a few years later, after graduating from university with an economics degree, he got a job as an accountant with the McDonald’s corporate team in Melbourne. This was the beginning of a rapidly developing career path that took in positions such as regional accountant for Victoria and restaurant development manager for the Southern Region of McDonald’s Australia.
In 2006 Gregory joined the Australian executive team and became the regional manager responsible for all aspects of McDonald’s business in Queensland and the Northern Territory. This included franchising, operations, advertising, marketing and sponsorship. In 2010 he moved to Tokyo where he took up an executive position in McDonald’s Japanese business, which is the company’s second largest operation after the United States. Here, he played a key role in leading the Japanese business out of the crisis it found itself in after the massive earthquake and tsunami that struck Japan in 2011. ‘We had about ten percent of the company’s restaurants in Japan closed for different reasons after the earthquake. We worked hard to re-open them’.
Having overseen most of the recovery in Japan, Gregory returned to Australia in 2012 where he took on the role of Chief Financial Officer and then Chief Executive Officer in April 2014. As the boss of McDonald’s Australia he is now responsible for marketing, public affairs, operations, supply chain and business planning. He has taken on a leadership role to inspire further development of McDonald’s Australia.
Andrew Gregory will need to navigate McDonald’s Australia through a challenging market environment with its ‘old’ competitors such as Dominos, KFC, Subway, Red Rooster and Pizza Hut, but also more recent entrants such as Guzman and Gomez, Oporto and Salsa’s Fresh Mex Grill, all of which are competing for the customer’s dollar. In the United States, McDonald’s has experienced a slump in
its market share and is keenly looking for new initiatives to help solve its problems. As the Australian arm of McDonald’s has been one of the main innovators within the global empire, Gregory’s challenges highlight how important it is for a large enterprise to become more agile and innovative. At McDonald’s Australia, there are signs that these challenges are being embraced, with Gregory stressing the importance of creating a more transparent and responsive dining experience.
However, transforming one of the world’s largest fast-food companies into a nimble operator that can quickly embrace new trends in a competitive market is not always an easy task. But McDonald’s is trying, having introduced the ‘create your taste’ experience in Australia, giving customers the opportunity to custom make their own burger using touchscreens and setting up ‘customer learning labs’ to try other new concepts. For example, its new store concept ‘The Corner’ could potentially pave the way for some drastic re-branding of McCafe outlets. The Corner looks more like an independent café with more gourmet-oriented offerings, personalised service, metal cutlery and a range of café-style hot beverages. According to Andrew Gregory, ‘McDonald’s is innovating and changing again to meet the needs of our customers. An important part of our new learning lab restaurants is that we take customers along the journey with us and get their feedback. We want to make sure Macca’s restaurants of the future are what Aussies ordered’. He also sees that there will be necessary changes in the working culture and how staff interact with customers as the company embarks on a $1 billion remodelling of its operations.
Source: Robbins, Bergman & Coulter 2018, Management, 8th edn, Pearson Australia, Melbourne, pp. 31-32.

Answered Same Day Apr 18, 2020 BUS104 University of the Sunshine Coast


Shivagya answered on Apr 19 2020
111 Votes
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Table of Contents
1.    Provide a summary of McDonald’s organisational history in Australia.    3
2.    As an organisation in Australia, what is the purpose of McDonald’s, what are the company values, how is the organisation structured, and what importance do people play in helping the organisation meet its purpose?    4
3.    As the CEO of McDonald’s Australia, what is Andrew Gregory’s role? Using the four functions of management as a guide, what activities does he need to undertake in managing the Australian operations of McDonald’s? How would this differ for an assistant manager at a McDonald’s restaurant?    5
4.    In what ways do Andrew Gregory’s technical, human and conceptual skills influence how he aims to maintain an environment that encourages innovation, customer service and sustainability at McDonald’s Australia?    7
5.    What management roles would Andrew Gregory be playing as he (a) has weekly conferences with his management team at McDonald’s Australia; (b) assesses the feasibility of adding a new product to the McDonald’s menu; and (c) keeps employees focused on the company’s commitments to its customers?    10
6. What could other managers learn from Andrew Gregory and McDonald’s approach? Are there any differences in being a CEO at McDonald’s Australia and being a CEO at non-profit organisations? If so, what would they be?    12
1. Provide a summary of McDonald’s organisational history in Australia.
The global McDonald’s footprint extends up to a 119 countries which operate more than 36,000 outlets and restaurants, which end up serving more than 69 million customers every day. The Chicago based fast food empire opened its first Australian outlet in 1971, which has since been acknowledged as a leader within the McDonald’s corporation. Today the Australian McDonald’s network of restaurants and cafes, numbering close to 900, serves over 1.7 million customers a day to achieve an annual sales figure of more than $ 4 billion. Though some of the restaurants and cafes are run by the company itself, nearly 80 percent of them are run on a franchise business model which is operated as individual businesses. McDonald’s Australian arm is known to implement some of the best and most successful practices which have themselves been later executed throughout the McDonalds Corporation. Notable mentions among them would be the launch of the first McCafe on Melbourne’s Swanston Street in 1993 has been adopted across the world. McDonalds Australia has also been a pioneer to introduce nutrition labelling, to which the global locations have followed suit.
Andrew Gregory was appointed as the CEO for McDonald’s Australia in 2014, who had worked his way up into the company. He started off as a teenage crew member in 1992, working part time while pursuing a degree in economics. After his graduation, he joined McDonalds as an accountant within the McDonald’s corporate team. Gregory later on went on to join the executive team when he was appointed as the Regional Manager for Northern Te
itory and Queensland. He was promoted to an executive position in Japan in 2010 where he played a key role in in the reopening of around 10 percent of the stores affected by the 2011 earthquake and tsunami disaster. Owing to his success in these roles and guiding the Japanese arm out of crisis, he returned to Australia in the capacity of Chief Financial Officer. In the April of 2014 he was promoted to Chief Executive Officer and is responsible for all the aspects of business strategy,
and planning and development.
2. As an organisation in Australia, what is the purpose of McDonald’s, what are the company values, how is the organisation structured, and what importance do people play in helping the organisation meet its purpose?
McDonald’s is a fast food chain of restaurants and cafes, with its key competitors being Dominos, KFC, Subway, Red Rooster and Pizza Hut. There are other newer entrants in the Australian markets such as Guzman and Gomez, Oporto and Salsa’s Fresh Mex Grill which further increase the competition in market and make it more challenging for even an established player like McDonald’s. The US arm of McDonald’s has already experienced a slump in market share due to factors such as the maturing market place and increased competition. Since the Australian arm acts as one of the main innovators and problem solvers for the corporation, it can look for new initiatives to address these challenges.
The organization follows a typical hierarchical structure, led by Andrew Gregory (CEO), to whom a team of Vice Presidents/ Directors report to. Namely they are:
· SVP/Chief Marketing Officer - Jenni Dill
· VP/Chief People Officer - Jennifer St Ledge
· VP/General Counsel/Franchise Relations Officer
- Craig Cawood

· VP/Chief Financial Officer - Peter Middleton
· VP/Director of Operations
- Sharon Paz
· CEO RMHC (Ronald McDonald House Charities) - Ba
ara Ryan
· Vice President/Chief Information Officer - Scott Green
· Director of Development - Joshua Banniste
· Director of Supply Chain - Robert Sexton
As mentioned in the case itself it is difficult for an organization as big and as influential as McDonald’s to become agile, nimble and to easily adapt to the ever changing customer trends and preferences. People play a key role here, they can make these changes and the adaptation to the new trends easier for the organization. To make a McDonald’s a more transparent and responsive dining experience...

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