McDonalds and International HR Management

Essay by davidpak86University, Bachelor's August 2006

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During the last few decades, companies have been confronted with an increasingly competitive environment. Forces facilitating globalisation, such as the liberalisation of international trade, the international integration of production, research and marketing by major MNCs, as well as the emergence of major economic regions like the European Union, have enabled companies to invest overseas to gain or maintain competitive advantage. McDonalds holds one of the best success stories upon going global. Throughout the past three decades upon their global steps. McDonalds success was built upon their training of staff, as well as their strategic ways upon entering another global economy.

McDonald's history and background

The first McDonald's was inaugurated by the McDonald's brothers in 1948, constituting itself as the first local in the history of the quick service of foods, in San Bernardino, California (U.S). They offered quick food, that is to say previously prepared food and served to high speed.

In 1954, Ray Kroc became the first franchisee of McDonalds appointed by Mac and Dick McDonald ( Mr. Kroc opened his first McDonalds Restaurant in Des Plaines, Illinois (near Chicago) in 1955 ( By 1959, McDonalds opened their 100th store in Chicago, by 1961 Mr. Kroc had bought all legal rights upon McDonalds for $2.7 million (

McDonalds first took its' global step outside of the USA, and decided to open stores in Canada and Puerto Rico in 1967. Currently, there are more than 30,000 McDonalds Restaurants, more than 8000 are owned by the company, 18 000 are owned by franchisees/licensees and about 4000 operated by affiliates (McDonalds Financial report, 2004). The organisations strategy consists of owning the land and building or secures long-term leases for restaurant sites, regardless of who operates the restaurant (McDonalds Financial Report, 2004).

The company brought to this new market of...