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... ing hours. Based on a six-month review of sales and expense McDonalds will evaluate the possibility of expanding breakfast for other restaurants within the country. This shows that the McDonalds corporate structure in Colombia while working towards achieving the goals of McDonalds is largely independent to work within the culture it understands. Description of the organizations notable achievements: McDonalds Colombia has proven to be one of the most notable achievements for the McDonalds corporation.
McDonalds arrived in Colombia in the midst of one of the worst economic recessions in Colombian history and yet has become one of McDonalds greatest successes. McDonalds Colombia set a world record by opening twelve new stores in the first year after entering the country. McDonalds continues to grow and expand opening in new cities and hoping to establish new franchises throughout Colombia. McDonalds Colombia is growing more rapidly and having success that is helping the countries around Colombia. McDonalds Colombia now produces the uniforms for four neighboring countries. McDonalds Colombia was able to work with Colombian farmers to produce the proper potatoes for French fries within 5 years; Argentina took 9 years.
McDonalds Colombia is now responsible for the exportation of 10 million pounds of coffee to McDonalds USA each year. McDonald's Colombia is the only fast service restaurant in Colombia raising money for the welfare of children. The total fundraising through Mc Happy Days has provided more than 250 whole year scholarships. In 1999 McDonald's Colombia won the PORTAFOLIO award given to the company who trains the best in the country. Issues and problems faced in international operations: McDonalds is highly concerned with the quality of their food.
Therefore at the opening of a new restaurant, most of the supplies are imported until they can find a provider for these products in the local economy. They take the time to seek out and teach farmers to grow the potatoes just right so that the McDonalds French Fries taste the same at any restaurant you go to in any part of the world. Currently over 50 % of the products used in a McDonalds in Colombia are supplied by Colombian businesses. One difficulty in Colombia has been to find adequate locations on principal high traffic corners with sufficient square footage to meet the company needs, and to find adequate franchisers to take the ownership of individual outlets. The economic situation is considered a substantial risk, but McDonalds has proven, throughout Latin America, their ability to overcome financial difficulties. McDonalds also recognizes the additional risks in Colombia with the guerilla threatening and extorting from the rich and successful businesses here in Colombia.
McDonalds does not pay extortion; they have added scenarios to their business planning and operations including potential contingencies and costs. McDonalds believes that by contributing to the community where they operate they will create a neighborhood watch mentality, where a community of trust built around the individual units protects them. They refer to this in their corporate plans as a trust bank. Conclusion: McDonalds has proven once again in having an ability to be successful in another developing country with different risks and challenges.
McDonalds Colombia is one of the most successful endeavors for the McDonalds corporation even in the midst of a country with serious economic difficulties. McDonalds has proven repeatedly that the franchise model creating independent restaurants that follow the McDonalds model can be successful and profitable. McDonalds may have serious advantages over other corporate models because they have created smaller units, leaving decision-making and control at the lowest level possible. They have created a corporate structure designed to help the individual units be successful. The corporate role is to serve the restaurants; the restaurants do not serve the corporate. This is an important distinction and one that will continue to help McDonalds be a leader in the global marketplace.
McDonalds is committed to people, to their customers and to their employees. This commitment to people will continue to help McDonalds breed success from every individual. McDonalds is the largest employer of youth in Colombia and has consistently been one of the largest employers of youth in the United States. McDonalds recognizes its role in the development of young people, providing scholarships and working to provide a solid foundation for young people to be successful in the business world.
McDonalds is committed to the communities in which they operate, working to provide social programs and to meet the needs of the community. McDonalds raises funds in support of Childrens Hospitals and programs that provide for those with needs in the community. Some see this level of social concern as manipulative advertising and promotion, but McDonalds is truly committed to the community. They have shown repeatedly in many countries a desire to be involved in the community and helping the communities not just making a profit from the community. McDonalds is an organization of the future. They have shown an ability to adapt and grow in the global marketplace.
They may in some ways be responsible for expanding the global market through reaching into countries as early as possible. McDonalds has created an organization that seeks not only continuous improvement, but is looking for ways to improve itself, its employees and its community. McDonalds commitment to seeking out local suppliers and working to develop local brands in each market helps to advance McDonalds as a global company and not just an American company coming to take over a market. McDonalds creates jobs and even companies to supply their needs and this can only improve the economies of developing countries.
This report has renewed my confidence in a company like McDonalds and I am happy that it is my daughters favorite place to eat outside of our home. I learned a lot about Colombia but even more about McDonalds commitment to people and to the community. I hope that I can learn to develop an organization with the same commitment to people and the community as McDonalds has but with Christ as the focus instead of profit. Bibliography: web web web Guitar, Jorge, Algo de Creer en Colombia, report prepared for International Business Course at the Andes University, Bogot, Colombia, 2000 Reyes, Angelica, personal interview April 17, 2001 Case Study, McDonalds in Colombia, notes and research written for International Business Course, Andes University, Bogot, Colombia Medina, Pedro, Personal Interview, April 21, 2001
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Research essay sample on Mcdonalds Corporation French Fries
