Reference no: EM133051324

The Impact of Positive Recruitment - a McDonald's Case Study

Steady employee turnover at restaurants is an issue that fast food restaurant owners must face up to. It is, in fact, a catch-22 situation; during an economic slowdown, restaurant employees stay in their jobs when fewer opportunities are available. As the economy picks up, turnover increases since more restaurants are hiring. Thus, the better the industry performance, the higher is its rate of turnover. There are many reasons for employee turnover. The lack of advancement, poor working conditions and transient nature of the work force may contribute to high turnover rates, but the restaurant industry itself may be at the root of the problem. Long hours with low pay and little or no benefits do not help build employee loyalty. McDonald's strives to attract and hire the best in a work environment needed to thrive. To ensure the company recruits the right people that deliver outstanding service, it has identified essential skills and behaviors that applicants should be able to demonstrate. For each position there is a job description outlining typical duties and responsibilities and a personnel specification defining personal skills and competences. McDonald's recruitment policy holds each individual restaurant responsible for recruitments. Several recruitment avenues are used, including advertising in the restaurant. Other than this, McDonald's also uses local job centers, career fairs and other local facilities to get the word of the hiring process out. Incidentally, any recruitment exercise often generates more applications than there are positions available.

For many young people, a job at McDonald's is their first job, with over 60% of restaurant crew aged 20 or under. A well-run interview identifies an applicant's potential to be a successful McDonald's employee using an interview guide that helps the company predict how an applicant's past behavior is likely to influence future performance. A fact-based decision-making process is used that looks at actual events or situations rather than allowing applicants to give a general or theoretical response. In short, interviewers look for behavioral evidence that fits with the requirements of the job. After rating candidates on their responses, jobs are offered to those who earn the highest ratings. Unsuccessful candidates are notified in writing and all new employees are inducted through a Welcome Meeting, which they must attend. The Welcome Meeting gives an overview of the Company, including their job role, food, hygiene and safety training, policies and procedures, benefits and training and development programs. New employees will also meet their trainer, and tour the restaurant. After a 3-week probationary period, employees are rated on their performance and are either retained or have their employment terminated. McDonald's future managers come from two main sources. More than half of all salaried management positions are taken up by hourly-paid employees who earn promotion. McDonald's encourages applicants to apply online but if that is not possible, applicants can call the Recruitment Hotline, or pick up a pre-paid Business Reply Card from a McDonald's restaurant. The selection process includes an initial online psychometric test after which the applicant then attends a first stage interview and is offered "On Job Experience" (OJE). This is a 2-day assessment process and if successfully completed it will lead to a final interview, after which the manager decides whether or not to hire the applicant. Well-trained crew and managers are critical to McDonald's sustained success. McDonald's training programs are aimed at enabling a 'first job' employee to move to a senior management position through meritorious promotions. Initial and ongoing training is key to the development of employees and this is done via a structured development program that provides training in all areas of business.

From running the operational elements to managing the restaurant, the majority of training is floor based, or "on-the-job" because people learn more and are more likely to retain information if they are able to practice as they learn.

McDonald's Management Development Curriculum takes new recruits from trainee manager to Restaurant Manager and offers a direct route into restaurant management, through an intensive structured training program. The Management Development Curriculum focuses on:

• Shift Management
• Systems Management
• Restaurant Leadership
• Business Leadership

McDonald's success is built on the highest standards of quality, service and cleanliness delivered to customers in each of its restaurants, but having well-trained crew and managers are the first step to achieving these standards. The success of McDonald's recruitment process can be seen in the fact that half of all McDonald's future managers were previously hourly-paid employees that earned a promotion, and it's no wonder that they're loving it!

Required:

• Executive Summary Viewpoint
• Main Problem
• SWOT Analysis
• Alternative Courses of Action

n/b answer all questions

Determinants of supply and demand

What are the approaches of demand for money

What are the main motives for holding money discuss porters five forces

Alberto runs a small but very successful coffee shop inside a busy mall in Peterborough. His wife and he run this coffee shop 7 days a week from 11 am to 8 pm. Other shop owners at the mall love their coffee and have become loyal customers of their business. Sonia, who runs a chain of flower shops in several malls, including theirs, have approached them with an idea to expand their business to other malls in the area. She claims to have a lot of connections with financial intermediaries who may be able to help fund the expansion. In fact, she promises to share with Alberto, the financial information and business proposal prepared by one of her competitors who successfully applied for a loan few months ago. According to her, she is best friends with Caroline who is working for a local bank as a manager and can help them get the required amount even without any documentation. She is asking for a promise to pay 5% of the loan amount to her as "fees" for her services.

Required:

Given your understanding of the business ethics, what is your advice to Alberto and his wife? Explain with reference to the moral leadership concept that we discussed in class. (5 marks)

Question:
1. A corporate treasurer is designing a hedging program involving foreign currency options. What are the pros and cons of using (a) NASDAQ OMX and (b) the over-the-counter market for trading?

2. Suppose that a European call option to buy a share for $100.00 costs $5.00 and is held until maturity. Under what circumstances will the holder of the option make a profit? Under what circumstances will the option be exercised? Draw a diagram illustrating how the profit from a long position in the option depends on the stock price at maturity of the option.

3. Suppose that a European put option to sell a share for $60 costs $8 and is held until maturity. Under what circumstances will the seller of the option (the party with the short position) make a profit? Under what circumstances will the option be exercised? Draw a
diagram illustrating how the profit from a short position in the option depends on the stock price at maturity of the option.

4. Describe the terminal value of the following portfolio: a newly entered-into long forward contract on an asset and a long position in a European put option on the asset with the same maturity as the forward contract and a strike price that is equal to the forward price
of the asset at the time the portfolio is set up. Show that the European put option has the same value as a European call option with the same strike price and maturity.

5. A trader buys a call option with a strike price of $45 and a put option with a strike price of $40. Both options have the same maturity. The call costs $3 and the put costs $4. Draw a diagram showing the variation of the trader's profit with the asset price.

6. Explain why an American option is always worth at least as much as a European option on the same asset with the same strike price and exercise date.

7. Explain why an American option is always worth at least as much as its intrinsic value.

8. Explain carefully the difference between writing a put option and buying a call option.

9. The treasurer of a corporation is trying to choose between options and forward contracts to hedge the corporation's foreign exchange risk. Discuss the advantages and disadvantages of each.

10. Consider an exchange-traded call option contract to buy 500 shares with a strike price of $40 and maturity in 4 months. Explain how the terms of the option contract change when there is: (a) a 10% stock dividend; (b) a 10% cash dividend; and (c) a 4-for-1 stock split.