Task 5. Compose a summary of the text in 80 words. MCDONALD’S CORPORATION

MCDONALD’S CORPORATION

Ray Kroc, more than any other person, was responsible for making McDonald’s what it became by the 1980s. In 1954 52-year-old Ray Kroc’s attention was focused on a particularly successful restaurant in San Bernardino, California. He was very impressed with a number of factors he saw at that small restaurant. They included the quality of food, fast service, cleanliness and inexpensive prices. Kroc approached the owners, Richard and Maurice McDonald, with a proposal to sell franchises for their fast-food restaurant concept.

McDonald’s new chief executive, Kroc took note of several significant demographic trends. The American middle-class popula­tion was relocating to the suburbs in a massive migration. Kroc believed these factors pointed to the need for a chain of restaurants that could provide uniform quality, cleanliness and quick service. McDonald has developed the concept of QSC – quality, service and cleanliness. Quality meant fresh, good-tasting meals using quality ingredients and served hot. Service meant fast, friendly service by trained McDonald’s personnel. Cleanliness meant that the store’s interior and exterior were free from dirt and trash.

At the end of 1984, McDonald’s had 8,304 fast-food restaurants: 6,598 of them in the USA and 1,706 in other countries. The original McDonald’s units did not have inside seating. The first restaurant with inside seating was opened in 1966. The first restaurant with drive-thru window was built in 1975. By the mid 1980s, drive-thru window orders accounted from 10 to 45 percent of the sales for the usual McDonald’s restaurant.

McDonald’s prices were extremely competitive and value oriented. Its various hamburgers were priced equal to or cheaper than most of its food competitors.

McDonald’s advertisements relied upon a variety of media. McDonald’s began some network television advertising in 1967. McDonald’s was the official fast-food restaurant sponsor of the 1984 Olympic Games.

Until 1984, the focus of McDonald’s marketing efforts had been to target the baby boom market. In the late 1980s and early 1990s that market segment was expected to minimise. A challenge, which McDonald’s faced, was how to adapt to a new generation of older, more health-conscious consumers. In view of healthy food trend, fast-food chains were experiencing stabilising customer counts and slackening income growth.

The company undertook extensive testing of chicken and other types of sandwiches and salads. This helped to screen out new products that had limited chances for success. New introductions often led to innovation in the production equipment used by McDonald’s. McDonald’s had pioneered a number of innovations:

· a clam shell grill that cooked patties simultaneously on both sides;

· wireless communication headsets used by customers as they came through the drive thru;

· energy management systems to reduce air-conditioning and related electrical costs by optimising running times of compressors in response to outside temperatures;

· lighting control panels to automatically regulate the operation of all exterior lighting and signs;

· laser disc point-of-purchase displays;

· a Ronald Room for young customers where Ronald McDonald wall decorations lit up, then moved, played music and even spoke to children.

McDonald’s had consistently followed a policy of promotion from within. Training for all new employees was done on the job. A new crewmember was trained for at least ten hours before serving his first customer. In addition, new crewmembers read training manuals that provided them with further job know-how.

McDonald’s plans for future include adding new restaurants all over the world, maximising sales, emphasising international expan­sion and profitability.

UNIT 3

Task 1. Read the text “Latin America’s Economies: Here We Go Again!” and translate it.

Task 2. Find answers to the following questions in the text and write them down:

1. What happened after the collapse in Argentina in 2001?

2. Did the financial markets in Latin America’s biggest economy come close to panic in 2002? Why?

3. What are the similarities and differences between Brazil and Argentina?

4. May the rich countries and the IMF decide whether to swallow their doubts and organise large-scale financial support?

5. What two things would help to stabilise the situation?