MCDONALD'S CASE STUDY

McDonald's Case Study

McDonald's Case Study

Synopsis

The company founded in 1940 brothers Dick and Mac McDonald (first restaurant opened in San Bernardino, California), in 1948 the world's first formulated the principles of the concept of “fast food". In 1954, Ray Kroc bought McDonald brothers to act as the exclusive agent for the franchise. In 1955, he opened his first McDonald's in the town of Des Plains, State of Illinois (now - a museum of the corporation). In 1955, Kroc registered company McDonald's System, Inc (in 1960 renamed the McDonald's Corporation). In 1961, all right for the company were fully redeemed by Kroc. Under the brand name, McDonald's in the middle of June 2009 employed 32,060 restaurants in 118 countries (including about 14 thousand of them located in the U.S.). Of these, a significant portion (25 578) is controlled by franchises, so the range of restaurants, portion size and composition can vary greatly in different countries. (Brodbeck, Frese, 2000).

Problem Identification

Experts believe that CEOs are simply obliged to inform the board about problems with health or personal life (such as divorce), which may adversely affect their performance. But on the question of whether CEOs are obliged to undergo an annual medical examination, and whether they should publicize the results of the board of directors, experts' opinions differ. Corporate Library editor Nell Minoa (Nell Minow) believes that the Board of Directors each year shall report to shareholders that the CEO has passed a medical examination and the results are known members of the board and inform the development of succession plan.

Some experts believe the introduction of compulsory medical examination of the Directors General of pointless. In this case, referring to the high level of awareness about the health of Americans, their leaders, they believe that business leaders would take this step voluntarily. According to teacher management from Harvard University, Jay Lorsch (Jay Lorsch), carrying out medical examinations is so important that companies themselves should pay for them. He also believes that shareholders should not report on the results, unless the CEO is not found a serious disease that does not allow him to properly perform their duties.

The death of Mr. Cantalupo has again attracted attention to the timely selection of leading cadres. The successor of Mr. Cantalupo took office just hours after his death. This can be considered a vivid example of successful succession planning guide. (Brodbeck, 2000)

The techniques used to solve the problem

Autocratic Leadership Style

Autocratic style is characterized by a high degree of centralization of power head. Autocrat autocratic solves most of not only large, but relatively small issues of life group, imposes its will on the performers and does not delegate any authority to them. However, he deliberately appealed to a lower level of the needs of their subordinates. In their relations with their subordinates and the actions autocrat can come from the following premises:

People do not like initially to work, and whenever possible avoid work.

People have no ambition, and they are trying to get rid of the responsibility, preferring to ...