Dayan v. McDonald’s Corp: Case Study
1. Client: Dayan
2. Background:
Dayan is a is an exclusive franchisee of McDonald’s restaurants in Paris, France. The franchise agreement requires that the franchisee meets all quality, service, and cleanliness (QSC) standards set by the franchisor, McDonald’s, which Dayan, the franchisee, agreed not to vary without prior written approval.
(Schaffer, Agusti, &, Dhooge, p.9)
3. Problem:
After several years of quality and cleanliness violations, McDonald’s sought to terminate the franchise with Dayan. As an investor and businessman, what is best course of action for Dayan operate smoothly and prevent infringement allegations from its’ business partner?
Alternative courses of action:
1. Dayan could …show more content…
In terms of investing in capital, it may be less risky to invest in a franchise, as it already has access to the market, operations systems, and has already established reliability.
• Unlike a franchise, a traditional business will not have access to a support team (the franchisor) who will assist in providing resource.
2. Dayan could have employed its’ own manager to oversee operations instead of relying on Maycock, a McDonald’s trained-employee, to run local operations
Advantages:
• Hiring its’ own manager would have allowed Dayan to have better control of its’ business and have its’ best interests in mind.
• Hiring his own staff would ensure continuity of the training and adherence to QSC provided by McDonald’s, regardless whether he still chooses to hire Maycock or not.
Disadvantages:
• Hiring a new operations man may mean that he/she may not have a “McDonad’s background”. Hence, he/she will still need to undergo QSC and product training by McDonald’s.
• There is a risk that Dayan might not hire the right employee fit for the role. There is a risk that he/she may not share the same values, behaviors and performance standards expected by …show more content…
This provides the company with more information to address the immediate problem of QSC violations by getting to know who is responsible for key tasks, and track the progress of its’ execution. By providing the company with an idea of employees who may be slacking off, and committing the violations, the company will be able to eliminate these “risks” and implement programs to improve adherence to standards. Given this information, in the long term, I would also recommend training and incentive programs (ACA #4) in order to motivate and encourage employees to, at their own level, do their functions exceptionally with minimal supervision. By providing training, members will get to know the standards, procedures, and the “do’s and don’ts”, which provide them with confidence to do their tasks. By decentralizing tasks, equipped with a strong incentive program, employees will be motivated to do well, expecting that they will receive rewards for good performance. While running incentive schemes can incur additional cost, I would recommend to tie this incentive scheme to multiple factors, including sales, productivity, cost savings, waste reduction and also QSC standards. The savings from these areas would be able to generate necessary funds to provide incentives to
1. Client: Dayan
2. Background:
Dayan is a is an exclusive franchisee of McDonald’s restaurants in Paris, France. The franchise agreement requires that the franchisee meets all quality, service, and cleanliness (QSC) standards set by the franchisor, McDonald’s, which Dayan, the franchisee, agreed not to vary without prior written approval.
(Schaffer, Agusti, &, Dhooge, p.9)
3. Problem:
After several years of quality and cleanliness violations, McDonald’s sought to terminate the franchise with Dayan. As an investor and businessman, what is best course of action for Dayan operate smoothly and prevent infringement allegations from its’ business partner?
Alternative courses of action:
1. Dayan could …show more content…
In terms of investing in capital, it may be less risky to invest in a franchise, as it already has access to the market, operations systems, and has already established reliability.
• Unlike a franchise, a traditional business will not have access to a support team (the franchisor) who will assist in providing resource.
2. Dayan could have employed its’ own manager to oversee operations instead of relying on Maycock, a McDonald’s trained-employee, to run local operations
Advantages:
• Hiring its’ own manager would have allowed Dayan to have better control of its’ business and have its’ best interests in mind.
• Hiring his own staff would ensure continuity of the training and adherence to QSC provided by McDonald’s, regardless whether he still chooses to hire Maycock or not.
Disadvantages:
• Hiring a new operations man may mean that he/she may not have a “McDonad’s background”. Hence, he/she will still need to undergo QSC and product training by McDonald’s.
• There is a risk that Dayan might not hire the right employee fit for the role. There is a risk that he/she may not share the same values, behaviors and performance standards expected by …show more content…
This provides the company with more information to address the immediate problem of QSC violations by getting to know who is responsible for key tasks, and track the progress of its’ execution. By providing the company with an idea of employees who may be slacking off, and committing the violations, the company will be able to eliminate these “risks” and implement programs to improve adherence to standards. Given this information, in the long term, I would also recommend training and incentive programs (ACA #4) in order to motivate and encourage employees to, at their own level, do their functions exceptionally with minimal supervision. By providing training, members will get to know the standards, procedures, and the “do’s and don’ts”, which provide them with confidence to do their tasks. By decentralizing tasks, equipped with a strong incentive program, employees will be motivated to do well, expecting that they will receive rewards for good performance. While running incentive schemes can incur additional cost, I would recommend to tie this incentive scheme to multiple factors, including sales, productivity, cost savings, waste reduction and also QSC standards. The savings from these areas would be able to generate necessary funds to provide incentives to