McDONALD’S: Successful Franchising3." remain market leader everything we do is driven through the eyes of our customers, and understanding what their needs and desires are is indispensable,"

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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

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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.

PRONUNCIATION: Using Contractions

For natural sounding English it is important to use contractions. Here are some common examples.

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?

Auxiliary Form Contraction With Pronouns

Contractions with Nouns

Contractions with Question Words

Am I’m working this morning

I’m on a training course

Is He's going to come. Mary’s on the phone. Who’s on the phone? What’s he doing?

Are You're doing a great job

What’re you going to do?

Has He’s been to Milan twice.

The Manager’s a big man.

What’s she been doing?

Have I've finished my work.

They’ve a franchise in France

Where’ve you been all day? (spoken only)

Had He'd been waiting for three hours.

They’d a deal with McDonald’s

Where’d you been when I saw you yesterday?

Will I'll get you something to eat.

What’ll we do?

Will Not He won’t understand Won’t you be lonely? Would She’d like a Big Mac

and milkshake Where’d you like to go?

(spoken only)

1. What was the important thing the McDonald brothers perfected? 2. What was Ray Kroc’s original job? 3. Why did Ray Kroc pay $2.7 million in cash to the McDonald’s brothers? 4. In what year did Kroc have 700 stores in America? 5. What was part of Ray Kroc’s genius?

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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

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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. 1. The company was and sold in sections when it went bankrupt. 2. Due to low sales McDonald’s wants to its investment in Italy. 3. The company was by union power in Germany. 4. KFC 20% of its work force last year 5. The company a new range of healthy products in August. 6. After the low profit warning McDonald’s non-essential expenditure. 7. 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?

Scale down – put off – lay off – bring out – pull out of – break up – cut back on

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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

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."

so as to - in order to – so as not to - for

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.

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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 … 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?

with – out – of - into – for – on - in

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Lead in Question: What threats does McDonald’s face? Listening 2:

Listen and answer the questions. NOTE: the questions are not in chronological order.

Ray Kroc, the man who made McDonald’s a global name.

1. How much have the shares increased in value? 2. What issues are there for McDonald’s in the US? 3. Why is it easier for McDonald’s to expand through global strategy? 4. What is the advantage of franchises over ownership? 5. What were McDonald’s worldwide sales in 2006?

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.

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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.

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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

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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 5. For the store to open by May 23rd 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.

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