McDONALD’S:
Successful Franchising:
Advanced Level:
•
Listening: McDonald’s - Origins & Business Model
•
Pronunciation: Contractions
•
Business Vocabulary: Phrasal verbs - recession
•
Reading: McDonald’s Reputation and Success
•
Grammar: Clauses of Purpose – so as, in order that
•
Functional Language: Verb + Preposition
•
Cultural Awareness: Business Lunch Etiquette
•
Role Play: Developing a Franchise Model
1
www.ibeschool.com
INTRODUCTION: Discuss these questions:
What do you know about McDonald’s? How did the company start?
•
LISTENING 1:
Listen to a spokesperson talk about McDonald’s, and answer these questions.
1.
2.
3.
4.
5.
What was the important thing the McDonald brothers perfected?
What was Ray Kroc’s original job?
Why did Ray Kroc pay $2.7 million in cash to the McDonald’s brothers?
In what year did Kroc have 700 stores in America?
What was part of Ray Kroc’s genius?
PRONUNCIATION: Using Contractions
For natural sounding English it is important to use contractions. Here are some
common examples.
Auxiliary Form
Am
Is
Are
Has
Have
Had
Will
Will Not
Would
Contraction With
Pronouns
I’m working this
morning
He's going to come.
You're doing a great
job
He’s been to Milan
twice.
I've finished my
work.
He'd been waiting for
three hours.
I'll get you something
to eat.
He won’t understand
She’d like a Big Mac
and milkshake
Contractions with
Nouns
I’m on a training
course
Mary’s on the phone.
Contractions with
Question Words
The Manager’s a big
man.
They’ve a franchise in
France
They’d a deal with
McDonald’s
What’s she been doing?
Who’s on the phone?
What’s he doing?
What’re you going to do?
Where’ve you been all
day? (spoken only)
Where’d you been when
I saw you yesterday?
What’ll we do?
Won’t you be lonely?
Where’d you like to go?
(spoken only)
EXERCISE: Say these sentences using the appropriate contractions
1. The manager has been to the meeting, so I will know the result soon.
2. I would have sold at that price but it would have been a mistake.
3. Why are you all still here? You should have left the office hours ago.
4. She will call the boss later, and then he is going to have a problem.
5. I think the client would like to speak to the director. What shall we do?
2
www.ibeschool.com
GRAMMAR PRACTICE:
Clauses of Purpose & Results
FORM: Clauses of purpose are subordinate clauses.
NOTE: A clause is a group of words with a subject and a verb. There are two types that you
need to be able to distinguish:
A main (independent) clause: one that can stand alone and express a complete thought
A subordinate (dependent) clause: one that depends on another element for its meaning
e.g. I eat at different McDonald’s in order to check on consistency
Main clause
subordinate clause
Clauses of purpose include:
A subordinating conjunction followed by a finite verb:
They use a different oil so that it produces less smoke
Infinitive + to
McDonald’s has bought sites in China (in order) to enter the market.
For + noun followed by infinitive + to
For the targets to be met by 2008 they need to open 1,000 new franchise stores
For + ing to talk about the purpose of a thing, or to define it:
This is good for advertising the new product.
The cooker is made for frying at high temperatures.
The main subordinating conjunctions are:
So that - in order that - that
Before the infinitive + to you can put:
In order (to) - so as (to)
Note the negative form:
So as not to waste money we do a lot of research on a location
USES: Clauses of purpose answer the question ‘why?’ or ‘what for?’ They present
the purpose of the information in the main clause:
A: Why are we talking about franchise costs?
B: In order to make a decision on pricing
A: What are we travelling to Tokyo for?
B: So that we can visit our franchises
To, in order to, and so as to + infinitive are used to talk about purpose.
• McDonald’s has cut prices to attract more customers (the purpose of the price
cut is to attract more customers).
That, so that, in order that are used where the subject of the clauses is different.
• They began selling only chicken so that we could concentrate on beef
To + infinitive is used to talk about the purpose of something
• The presentation is to demonstrate the new business model
3
www.ibeschool.com
EXERCISE 1: Correct the mistakes in these sentences:
1. The company opened a store in Dubai for enter the market
2. The store opened at 6 a.m. for attracting the early customers
3. The meeting is enable both sides to present their ideas
4. We have modified the burger so as that it meets the health standard
5. For opening the store by May 23rd we will need to work very hard
EXERCISE 2: Fill the gaps with an appropriate word or phrase in these
sentences:
1.
to survive they had to move production to China.
2. They introduced the Speedee Service
to be different from other
restaurants.
3. McDonald’s buys 200 tonnes of fish a year
meet customer demand.
4.
waste time the management started talking about profit and
loss immediately.
5. The report is
reading and then acting upon, not ignoring.
Business Vocabulary: Phrasal Verbs - Recession
EXERCISE: Place the phrasal verb in its correct form into the gaps below.
Scale down – put off – lay off – bring out – pull out of – break up – cut back on
1.
2.
3.
4.
5.
6.
7.
The company was
and sold in sections when it went bankrupt.
Due to low sales McDonald’s wants to
its investment in Italy.
The company was
by union power in Germany.
KFC
20% of its work force last year
The company
a new range of healthy products in August.
After the low profit warning McDonald’s
non-essential expenditure.
The contract was signed so they could not
the deal.
SPEAKING EXERCISE: Discuss in pairs
•
•
•
What do you need to cut back on in your diet?
What puts you off about fast food?
Does your company lay off workers?
4
www.ibeschool.com
Lead in Questions:
Why do some people dislike McDonald’s? Are they right?
READING – McDonald’s Global Reputation
Read the text & fill in the gaps with a word from the box & explain the words in bold
so as to - in order to – so as not to - for
Global impact - Countries with McDonald's stores
McDonald's has become a symbol of globalization, sometimes referred to as the
"McDonaldization" of society. Because McDonald's is closely identified with American
lifestyle, its international expansion has been seen as part of the cultural imperialism
of the United States, and is often derided by anti-capitalism groups.
Since 1955 McDonald's has spread out across the globe, with over 40,000 outlets
worldwide, and the stores seem to be sprouting up everywhere. 1.
the
public to see the impact of this they only have to look at the USA. The stores are in
the countryside, the suburbs, the cities, the shopping centres, the schools, hospitals
and airports, even the airplanes and parks.
2.
counter this image of McDonaldization the company tries hard to work
with each region and adapts local dishes to the menu.
3."
remain market leader everything we do is driven through the eyes of
our customers, and understanding what their needs and desires are is
indispensable," says Global Marketing Officer, Mary Dillon.
In 2006, McDonald’s set out to appeal to mothers, and one-third of its restaurants
have been upgraded, and local influenced dishes, premium-priced salads and
chicken meals have been added. In 2007, McDonald's global brand value rose a
healthy 6%, and its market capitalization grew by $2 billion.
The campaign ("I'm lovin' it") includes TV ads, and new packaging. 4.
fall
behind health care trends there is a series of Ronald McDonald videos teaching
children how to eat well and stay active. Says Dillon: "One of the fun things about
McDonald's is that it is always looking to include the local community, to innovate
and to improve the brand."
SPEAKING PRACTICE: in pairs, try to think of a new meal that McDonald’s
could sell from your region. Try to think of name for the meal, and how
McDonald’s could present and price it.
5
www.ibeschool.com
FUNCTIONAL VOCABULARY:
Dependent Prepositions
EXERCISE: Match the verb with its dependent preposition and then put a correct
preposition in the gaps.
1. To put money …
with – out – of - into – for – on - in
2. To decide …
3. To identify …
4. To trust …
5. To agree …
6. They have a good relationship
the local council.
7. This logo stands
consistency and quality.
8. They pulled
of the deal at the last moment.
9. We want to be associated
such a prestigious company
10. Can we rely
them to deliver the products by Friday?
CULTURAL AWARENESS POINT:
BUSINESS LUNCH ETIQUETTE
The Business Lunch
•
•
•
Depending on the industry sector the British take an average of 30 minutes
to one hour for lunch. A light meal and a non-alcoholic drink is a typical
lunch, and then it is back to work.
In some businesses, for example, the financial district of London, workers
frequently do not have a lunch break, having only enough time for a
sandwich in front of the computer. This is normal practice.
When a client visits the company the British managers often entertain at a
restaurant and the lunch can last for hours.
DISCUSS:
What is a typical lunch in your country? What is more important, lunch or
dinner? Do you think lunch should be longer or shorter than the British style?
Why?
6
www.ibeschool.com
Lead in Question: What threats does McDonald’s face?
Listening 2:
Listen and answer the questions.
NOTE: the questions are not in chronological order.
1.
2.
3.
4.
5.
How much have the shares increased in value?
What issues are there for McDonald’s in the US?
Why is it easier for McDonald’s to expand through global strategy?
What is the advantage of franchises over ownership?
What were McDonald’s worldwide sales in 2006?
Ray Kroc, the man who
made McDonald’s a global name.
ROLE-PLAY - WHAT IS FRANCHISING?
A franchise is a legal and commercial relationship between the owner of a
trademark, service mark, trade name, and an individual or group seeking the right to
use that Identification in a business. Generally, a franchisee sells goods or services
that are supplied by the franchiser or that meet the franchiser's quality standards.
In its simplest form, a franchise often provides a full range of services, including.
Site selection – Training - Product supply - Marketing plans - Financing
ROLE-PLAY EXERCISE:
In small groups decide on a business you would like to set up as a franchise. This
could be an established business that does not franchise at the moment e.g. a
famous store like Ikea, a service provider such as a private hospital, a shop like
Harrods, etc., or a new business
Discuss the range of services above, and think of how much profit will be made and
what you can charge. Then present it to the class. Other groups should ask
questions about the plan.
NOTE: While talking you should practice the grammar, vocabulary and
pronunciation you have learnt in this module.
7
www.ibeschool.com
Audio-script 1 – McDonald’s Adv
McDonald's was started by two brothers, Dick and Mac McDonald, as a small hamburger bar
in San Bernardino, California, in 1940. Today it is a global corporation.
In order to make the restaurant different from the typical American fast-food drive-in at that
time, they perfected a system where each meal would be put together in an assembly line
and would take less than one minute before the customer had their order in their hands. It
was called the “Speedee Service System.”
The introduction of the system established the principles of the modern fast-food restaurant. A
milkshake machine salesman, called Ray Kroc, was curious when the brothers bought 18
machines instead of the usual 1 or 2. he immediately saw the potential of this ‘Speedee
Service System’ and bought the rights to franchise the model across the USA.
For the restaurants to have a consistent level of quality Kroc devised ‘the McDonald’s
Method’ a 75-page manual that explained how the restaurant should be run - from how much
meat to include in a hamburger to how to cut the french fries, to how often to clean the
restaurant.
Kroc’s first McDonald’s was opened in Chicago in 1955. He ensured that the restaurant was
spotlessly clean and used it as a show model to sell his franchises. Kroc’s model meant he
collected 2.5% of sales, and after his first year in operation, he sold 18 McDonald’s
franchises. In 1961, with expansion growing rapidly, Kroc decided he wanted to be the boss
of the whole operation. In order to achieve this he had to pay $2.7 million in cash to the
McDonald brothers for ownership of the brand.
Kroc then set a goal to establish 1,000 restaurants in the USA. By 1965, he had over 700
restaurants and McDonald’s was the first company in the fast-food industry to go public on the
stock market. The share price quickly rose, making Kroc a millionaire.
Part of Kroc’s genius was his ability not to invent something new, but to take an existing
product and refine the business model to the point where it could be immensely profitable.
Audio-script 2 – McDonalds Adv
So as to retain its position as the number one fast food business McDonald’s needs to meet
the new challenges of healthy living and strong competition.
McDonald’s worldwide sales in 2006 were $41 US billion, which is up from the $38 billion in
2005. In addition, shares went up by 42%. That makes 2006 one of McDonald’s most
successful years, but most of the growth came outside America.
Despite Americans being big supporters of the McDonalds franchise the company is finding it
difficult to grow in its homeland. Within the US McDonald’s faces the problems of a saturated
market and the current healthy lifestyle trend. McDonald’s has made some effort to change
the menu and chicken is now a popular feature, with nuggets, wraps and premium
sandwiches rivaling hamburgers for revenue, but there is still a long way to go.
The real growth is coming from foreign markets. The company aims to franchise nearly 1,600
restaurants in Latin American and the Caribbean, and reduce the number of outlets it owns.
Franchises are easier to control, and generate more profit per metre than ownership, and
investors like to put money into a market leader.
The company will be opening 800 new restaurants in 2007 in places like China, Japan and
Russia. The opening of new restaurants overseas as well as their association with the
popular “hip hop” culture is driving customers to their counters. Since many of the countries
have few McDonalds already in existence the company’s easiest and cheapest method of
growth is through a global strategy.
8
www.ibeschool.com
LESSON PLAN – McDonald’s – Advanced
Key objectives – to practise aural and oral Business English
INTRODUCTION: Ask the students what they know about McDonald’s, and what
makes a Winner.
Teacher (T) – Students (SS) 5 mins
LISTENING 1: Next tell students they are going to hear a spokesman talking about
McDonald’s. They need to answer the questions at the end. Play the listening and
ask students the questions. (T) – (SS) 10 mins
PRONUNCIATION: Ask the students to pronounce the contracted words and do the
exercise. (T) – (SS) 5 mins
GRAMMAR
Go through the Clauses of Purpose, and do the exercise that follows. Ask students to
read the questions and answers out loud. (S) – (T) 10 mins
BUSINESS VOCABULARY: Ask the students the lead in questions and go through
the exercise about business growth metaphors. (S) – (T) 5 mins
READING: Find out if the students the lead in question. Go through the reading and
gap fill exercise. Engage the students in the speaking practice that follows.
Encourage them to use the grammar and the functional vocabulary. (S) – (T) 15 mins
FUNCTIONAL VOCABULARY: Put students in pairs and ask them to come up with
the correct preposition for the verb and to form a sentence with it (T) – (SS) 10 mins
CULTURAL AWARENESS POINT: read the text and discuss the cultural
differences. (SS) – (T) 10 mins
LISTENING 2: Tell students they are going to hear the 2nd part of the listening. Play
the listening and students answer the questions (SS) – (T) 10 mins
ROLE PLAY: Go through the instructions and begin the role-play. Make sure they
practice the grammar and vocabulary learnt in the lesson and to try and use the case
study material in their argument. Get the other students to discuss and offer
feedback. (SS) – (SS) 20 mins
9
www.ibeschool.com
EXERCISE ANSWERS – McDonald’s Adv
LISTENING 1:
1. The Speedee Service System.
2. A milkshake machine salesman.
3. For complete ownership of the brand.
4. 1965
5. His ability not to invent something new, but to take an existing product and refine the business
model to the point where it could be immensely profitable.
PRONUNCIATION:
1. The manager’s been to the meeting, so I’ll know the result soon.
2. I’d have sold at that price but it would’ve been a mistake.
3. Why’re you all still here? You should’ve left the office hours ago.
4. She’ll call the boss later, and then he’s going to have a problem.
5. I think the client’d like to speak to the director. What’ll we do?
GRAMMAR EXERCISE1:
1. The company opened a store in Dubai to enter the market
2. The store opened at 6 a.m. to attract the early customers
3. The meeting is to enable both sides to present their ideas
4. We have modified the burger so that it meets the health standard
rd
5. For the store to open by May 23 we will need to work very hard
EXERCISE 2:
1.
In order to survive they had to move production to China.
2.
They introduced the Speedee Service in order to be different from other restaurants.
3.
McDonald’s buys 200 tonnes of fish a year in order to meet customer demand
4.
So as not to waste time the management started talking about profit and loss immediately.
5.
The report is for reading and then acting upon, not ignoring.
BUSINESS VOCABULARY
1. The company was broken up and sold in sections when it went bankrupt.
2. Due to low sales McDonald’s wants to scale down its investment in Italy.
3. The company was put off by the strength of union power in Germany.
4. KFC laid off 20% of its work force last year
5. The company is bringing out a new range of healthy products in August.
6. After the low profit warning McDonald’s cut back on non-essential expenditure.
7. The contract was signed so they could not pull out of the deal.
READING EXERCISE:
1.For 2.In order to 3.So as to 4.So as not to
FUNCTIONAL VOCABULARY:
1. To put money into
2. To decide on
3. To identify with
4. To trust in
5. To agree to/with
6. They have a good relationship with the local council.
7. This logo stands for consistency and quality.
8. They pulled out of the deal at the last moment.
9. We want to be associated with such a prestigious company
10. Can we rely on them to deliver the products by Friday?
LISTENING 2:
1. 42%
2. A saturated market and the current healthy lifestyle trend.
3. Many of the countries have few McDonalds already in existence
4. Easier to control, and generate more profit per metre than ownership.
5. $41 billion.
10
www.ibeschool.com