Background Of Mcdonald And Kfc

Published Date: 02 Nov 2017

The story of McDonald’s first began in 1955 when Ray Kroc opened the first restaurant in Des Plaines, Illinois. It then grew on to be a worldwide corporation spanning 117 countries and serving more than 60 million customers every day. In December 1980, Golden Arches Restaurants Sdn. Bhd (GARSB) won the licensed to operate McDonald’s in Malaysia. The first McDonald’s restaurant subsequently opened its doors at Jalan Bukit Bintang on 29 April 1982. The global business is managed by McDonald’s Corporation as distinct geographic segments: United States; Europe; Asia Pacific, Middle East and Africa (APMEA); Latin America; and Canada. McDonald’s Malaysia operates under the umbrella arm of the APMEA group. As of December 2009, McDonald’s Malaysia has 200 restaurants located nationwide, serving 10 million customers a month and expanding at about 20-25 restaurants annually. McDonald’s Malaysia is fully owned by McDonald’s Corporation, and the restaurants throughout Malaysia are either operated by GARSB or franchisees. McDonald’s Malaysia and our franchisees employee more than 8,000 locals with 150 support staff at the headquarters managing the day-to-day operations of the business. McDonald’s Malaysia has employees more than 12 000 local people. The company named as AON-Hewitt Best Employers in Malaysia in 2009 and 2011, as well as AON-Hewitt Best Employers in Asia Pacific in 2011.

1.2 Kentucky Fried Chicken (KFC)

The first KFC restaurant was opened in 1973 on Jalan Tunku Abdul Rahman. Today there are more than 390 KFC Restaurants nationwide and still counting. Great tasting chicken has become synonymous with KFC; and has been enjoyed by Malaysians ever since. In fact, KFC Malaysia has developed a distinctive Malaysian personality of its own.

Especially for Malaysians

We are an establishment that is run by Malaysians and managed by Malaysians; we took it upon ourselves to create a selection of food that would make Malaysia proud on the international scene. Kentucky Nuggets, for example, was conceived in Malaysia and then found its way to KFC worldwide. Today, Kentucky Nuggets is one of KFC's successes. "Meals on Wheels" was also developed in Malaysia. It was created for the purpose of bringing great tasting chicken to places where a KFC Restaurant might not be available. So, any offices or companies can hold functions at any place and anytime! All our achievements add to our Malaysian identity.

McDonald’s article

"GOTONG-ROYONG"- A MISSION OF LOVE AT RONALD McDONALD HOUSE - HOSPITAL UKM

Kuala Lumpur (Saturday, 25 June) – Volunteers and donors came together at a special "Gotong–Royong" event at the Ronald McDonald House-HUKM situated on the grounds of the Hospital Universiti Kebangsaan Malaysia in Cheras. This mission of love was aimed at making the house a cleaner and more comfortable home-away-from-home for the seriously ill children who need to undergo outpatient treatment at the hospital, and their parents.

Present to lend their helping hand were Datin Azizar Othman, Chairman of the Ronald McDonald House, Puan Fadillah Yakin, President of RMHC, Professor Dr. Mohammad Abdul Razak, Director of Hospital Universiti Kebangsaan Malaysia, Encik Mohamed Shah B. Tan Sri Abdul Kadir, Managing Director and Joint Venture Partner of McDonald’s Malaysia, Ako Mustafa, Malaysia’s popular Malay artiste and officials of HUKM and McDonald’s Malaysia.

The event was held to celebrate the sixth anniversary of the house and gave an opportunity for everyone to get together and spend some time with the children and their parents while at the same time cleaning the premises. Volunteers and donors who have supported the activities of the house for the past 6 years were given special recognition at the event. Among the loyal supporters of the house are HUKM, Nestle, Coca-Cola, MacFood, Havi Food, Utusan Melayu, and McDonald’s Malaysia. Cleaning chemicals supplier Kay Chemicals made a special donation of cleaning and sanitizing products for the day’s event and pledged a continuous supply of the cleaning aids needed by the house.

Ronald House Chairman Datin Azizar Othman said, "We are very grateful for the commitment and contributions made by the loyal supporters of this house. Their contributions mean a great deal to us and we hope that we will be able to help more children in need for many years to come." Datin Azizar Othman presented tokens of appreciation to the donors and supporters.

As part of the sixth anniversary celebration, three special children who were among the first occupants of the house were invited to cut the anniversary cake. The children - Nurul Aqeelah, Mohd Syafiq Kondar and Tan Jin Yau who have since recovered from various illnesses still stay at the house whenever they have to go to the hospital for their periodic check-ups.

President of Ronald McDonald Children’s Charities Puan Fadillah Yakin said "Since its opening in 1999, the house has provided shelter to more than 250 families. The objective of RMH is to serve as a home away from home for the children who suffer from life threatening illnesses such as cancer. The house gives these children a great chance of pulling through their illnesses simply because they have their own parents staying with them while they are undergoing treatment in hospital."

The RM 2.5million Ronald McDonald House-HUKM is a twenty bedroom facility. All rooms are twin bedded and have attached bathrooms. There are 5 common areas for the use of the residents. These include a kitchen, kids’ playroom, a laundry area, a TV area and a lounge. A resident doctor helps with emergencies after office hours.

KFC’s article

Finger-licking good times for kids

Article from the star online (Friday October 28, 2011)

KFC, through its 53rd Projek Penyayang programme, visited Rumah Keluarga Kami in Kajang recently in conjunction with Deepavali.

The home was abuzz with excitement as the children were excited to receive goodie bags and enjoy a special KFC and Pizza Hut treat.

The 36 children from the home, aged between five and 17 were also entertained by a special 1Malaysia dance and clown performance.

They children had a fantastic time dancing together with the dance troupe.

More than 20 staff from QSR Brands Bhd, the operator of KFC, was on hand at the event to serve the children and help with the line-up of events.

"KFC has successfully carried out the Projek Penyayang programme and it is now in its 14th year. We plan to carry out this project for many years to come and aim to continuously improve and develop it further," said QSR Brands Bhd managing director Jamaludin Md Ali.

In festive mood: The children from Rumah Keluarga Kami in Kajang posing with the visitors from QSR Brands.

"At KFC, we believe that as a large corporate organization, it is paramount that we always give back to society. In our CSR efforts, orphans, underprivileged children and disadvantaged children have always occupied a very special place in our hearts. We believe that it is our responsibility to always remember those in need, especially during festivities such as Deepavali," he added.

Also present were Pizza Hut and KFC Malaysia Division vice-president M.J. Ling, Group Corporate Communications general manager Rosniza Baharum, legal and corporate services general manager Uthaya Kumar Marimuthu and KFC Operations deputy general manager Danny Nesan.

The Projek Penyayang feeding programme is KFC’s way of giving back to the community through providing free KFC ‘So good’ meals. It is carried out four times a year, usually in conjunction with major festivals such as Hari Raya Aidilfitri, Chinese New Year, and now Deepavali.

"We would like to thank everyone from KFC and Pizza Hut for joining us and bringing cheer and joy to our home this evening", said Rumah Keluarga Kami president Joseph Netto.

Other representatives from the home were its administrator John Santnasamy, teachers and caregivers.

The evening ended on a happy note, with the children performing a rendition of Smiling Children that brought a smile to everyone’s faces.

2.0 Three Primary and Secondary Stakeholders;

2.1 McDonald

A primary stakeholder is a person or group of people who directly affect or benefits from the operation of business activity. Primary stakeholders are also known as internal stakeholders.

• Datin Azizar Othman, Chairman of the Ronald McDonald House

• Puan Fadillah Yakin, President of RMHC

• Professor Dr. Mohammad Abdul Razak, Director of Hospital Universiti Kebangsaan

Malaysia

• Encik Mohamed Shah B. Tan Sri Abdul Kadir, Managing Director and Joint Venture Partner of McDonald’s Malaysia

• officials of HUKM and McDonald’s Malaysia

Secondary stakeholder is the one who indirectly involved in the business activity and them also known as external stakeholders.

• Utusan Melayu

• Nestle

• Coca-Cola

• Havi Food

• Kay Chemicals (supplier)

• Volunteers

• Parents and Children

2.2 Kentucky Fried Chicken (KFC)

As we all know KFC and Pizza Hut are in one roof of big company formerly known as QSR Brand Sdn Bhd. And now the name of the company changes into Triple Platform Sdn Bhd.

If we go through this article we can see, KFC is the primary stakeholder of the ‘Finger-licking good times for kids’ along with Pizza Hut. But this event was dominated by KFC, through its 53rd Projek Penyayang programme. More than 20 staff of the QSR Brands Sdn Bhd and operator of KFC also included as a primary stakeholders because they were helping to serve better for the children at the event. Not to forget KFC and Pizza Hut Division vice president, M.J Ling, Group Corporate Communications general manager, Rosniza Baharum, legal and corporate services general manager, Uthaya Kumar Marimuthu and KFC Operations deputy general manager Danny Nesan. Lastly is QSR Brands Bhd managing director Jamaludin Md Ali.

KFC & Pizza Hut (QSR Brands Sdn Bhd. staff)

QSR managing director; Jamaludin Md Ali

Secondary stakeholders of KFC are those who indirectly involved in the business activity. These are KFC’s secondary stakeholders from the article above;

1 Malaysia Dancers

Clowns

The Star newspaper (for publishing this article to the public readers)

3.0 Type of CSR program

3.1 McDonald

Funding and Sponsorship

McDonald is funding to the Ronald McDonald house at the ground in HUKM, Cheras. they also sponsoring those children from low income families in the collaboration with Ministry of Education. They have named the sponsorship program as Tunas Wawasan. They have sponsored those children who have excelled in their studies. McDonald believes that by their assistance will enable these students to concentrate in their studies with the financial support provided so that they would have the opportunity to excel in their studies and will be the future leaders in the country. Moreover, McDonald has also built the Sensory Room at the learning difficulties center for the learning difficulties children. The sensory rooms are equipped with multi-sensory equipment from the United Kingdom which stimulates the five primary senses in an atmosphere of trust, relaxation and fun. It has been proven to be beneficial to special children. Over time, this would help these children in their cognitive skills and builds self-confidence. 3.2 Kentucky Fried Chicken (KFC)

Type of CSR that was conducted by KFC on this article is social/community projects. Because Projek Penyayang programme is a program that giving back to the society, they believe orphans, disadvantages & underprivileged children are also important. To prove to the children that the society does care about them and they are not alone. The only difference that the orphans have with us is that they have been growing up without the love of their parents showered to them like we have. The word parents itself isn’t familiar to them. That is why KFC is making the event every year for fours special occasion such as, Hari Raya Aidilfitri, Christmas, Chinese New Year and now, Deepavali. At least, to show them how they actually mean to the society. Even though our love is not equal with a love from a parent, we are still brothers and sisters who live in the same society and care for them

4.0 Five basic steps

4.1 McDonald

Identify Issue

The issue is Ronald McDonald House Hospital held an event with the theme of (GOTONG ROYONG) venue in Hospital Kebangsaan University in Cheras. The main purpose of the event is to celebrate the sixth anniversary and at the same time through GOTONG ROYONG activities will provide a cleaner and more comfortable home-away-from-home for the seriously ill children who need to undergo outpatient treatment at the hospital, and their parents which can boost up in term of moral support.

Setting priorities

The objective of opening Ronald McDonald House is to serve the ill children who suffer from cancer. The house gives these children a great chance of pulling through their illness as their parents are allowed to stay with them in that house no matter what the best cure for pain is a parent’s love. Ronald McDonald House believes by providing the parents to stay with their ill children, it will give the children the sense of a moral boost in undergoing their treatment. At the same the event is done also to acknowledge and give recognition to the loyal supporters and donor which have supported the activities of the house for the past six years.

Identify stakeholders

The identify stakeholders that which involve in the event is Datin Azizar Othman, Chairman of the Ronald McDonald House, Puan Fadillah Yakin, President of RMHC, Professor Dr. Mohammad Abdul Razak, Director of Hospital Universiti Kebangsaan Malaysia, Encik Mohamed Shah B. Tan Sri Abdul Kadir, Managing Director and Joint Venture Partner of McDonald’s Malaysia, Ako Mustafa, Malaysia’s popular Malay artiste and officials of HUKM and McDonald’s Malaysia. Besides that other stakeholder which received recognition for volunteering and donors which support the house activity for the past six year are also identify stakeholders which is are HUKM, Nestle, Coca-Cola, MacFood, Havi Food, Utusan Melayu, and McDonald’s Malaysia.

 

Setting out strategy

Ronald Mc Donald rely on the publicities of the event to attract public attention which shows McDonald organization do care about the people by providing a house shelter which shelter ill children that undergo treatment in the hospital and the shelter cost around 2.5millionringgit.The main picture of the event is putting the picture of three children representing the Ronald McDonald house is to valid Ronald McDonald efforts in giving the children shelter . Besides that the main purpose of the event is so that the volunteers and donors can clean the house and at the same time spend time with the sick children which in generally give heartwarming sense in the house of Ronald McDonald.

4.2 Kentucky Fried Chicken (KFC)

Identify issue

Projek Penyayang programme by KFC have to make sure they can sustain their relationship with the unfortunate children to make sure they have a good relationship with them and can give good impression to the society. If KFC keep on doing what they’re been doing now, future of KFC with the society will boost up.

Setting priorities

Projek Penyayang programme by KFC have to set their priorities high for this year. They need to do something extraordinary that can give huge impact to the society. That can make the society remember on the good deeds that KFC have done. How about KFC open their own orphanage house, to shows society how valuable the orphans are for them. Instead of doing, an event for every four special occasion every year on any random orphanage houses.

Identify stakeholders

The main stakeholders are the children and other stakeholders involve in the event are more than 20 staff of the QSR Brands Sdn Bhd and operator of KFC also included as a stakeholders. They were helping to serve better for the children at the event. Not to forget the 1 Malaysia dancer and clown events are also the stakeholder for the event because there were assign to entertain the children. KFC and Pizza Hut were providing their specialties in foods. And the media, the star newspaper were covering on Finger-licking good times for kid’s event.

Setting out strategy

The process of this event is, basically representative of the Projek Penyayang, will plan a visit to their place to talk about the event that they planned. Explaining the process on how to conduct an event like this at their place and the reason why they want to conduct an event and tell them that they have done this event for every year, four times for the last 14 years. Explain to them the understanding and benefits of this event.

Select resources

KFC and Pizza Hut are the one that giving foods for this event. QSR staff is the one that make this event become successful by giving their times and energy. Not to forget the 1 Malaysia dancers and clown that entertains the children. The time that they need is only a day to make the event successful.

Delivering methods

5.1 McDonald

• Letter

The Chairman of the Ronald McDonald House Datin Azizar Othman have sent an invitation letter to Encik Mohamed Shah earlier to inform him about the ‘gotong-royong’ program which will held at the Ronald McDonald House at HUKM. Datin thinks that by sending letter to the loyal supporters will be more professional than other forms of communication and it won’t cost much.

• Phone Call

TheRonald McDonald House Chairman, Datin Azizar Othman has directly called the main volunteers, donors, and supporters of the Ronald McDonald House as their presence are very important for this program. The management would like to invite Encik Mohamed Shah B. Tan Sri Abdul Kadir, Managing Director and Joint Venture Partner of McDonald’s Malaysia to this program as he is the main supporter for all the programs which they have conducted.

• Personal Visit

Encik Mohamed Shah B. Tan Sri Abdul Kadir, Managing Director and Joint Venture Partner of McDonald’s Malaysia has brought along the officials of McDonalds Malaysia to the program to give morale support to them as usual. Encik Mohamed Shah has visit with his staffs to deliver his viewpoint. By this personal visit, the loyal supporters, volunteers and donors will get to know or keep in touch with each other much better.

• Plant Tour

Plant tour is a great opportunity for the sponsors to build a strong relationship with Ronald McDonald House. The Chairman of the Ronald McDonald has appreciated the loyal supporters for their contribution and commitment. By the contribution they get, they will be able to help more children in need for the upcoming years. Besides that, the loyal supporters were given special recognition at the event.

5.2 Kentucky Fried Chicken

Personal Visit

QSR Brands Sdn Bhd. managing directors Jamaludin Md Ali were at the event to shows his support. With his presence at the event, the society will now get to know him a little bit better and can keep in touch in the future. Jamaludin Md Ali spent his time at the Rumah Keluarga Kami just to make sure the event was successful and the kids were happy with the event.

Plant Tour

Plant tour is a good opportunity for KFC to show the society that they can also have a good relationship with them. Giving both sides an opportunity to know each other well so that, it will not lead the society and the organization in a bad relationship. KFC really need a to build relationship with the society so that they can run their business well.

6.0 Three benefits of the programs

6.1 McDonald

By doing this Corporate Social Responsibility (CSR) program, McDonald will gain reputation and good images for the company and it will create good perception in public’s mind towards your company.

McDonald feels more comfortable and satisfied by contributing some portions of their profits to Ronald McDonald House. So that, the management of the house can upgrades the house facilities or help more children in the future.

The involvement of McDonald in this CSR program will make the public’s to have a look of appeals of Ronald McDonald House. In a way, it would also less down the burden of McDonald by having more supporters to contribute to the house. So that, McDonald can use their remaining profits to lend their to any orphanages or old folks home

6.2 Kentucky Fried Chicken (KFC)

Shows that how concern KFC are about society. Because they have been conducted this event for 14 years in a row. And this kind of event will surely continue every year, said QSR Brands Bhd managing director Jamaludin Md Ali.

With this event that they conducted every year, their relationship with the society will become good every single year. They need to be in a good shape with the society so that they can have a better future with the society. They can gain a lot of profits if they maintain the good relationship with the society.

Benefits on the event that they conducted, staffs can be close to the unfortunate children and get real life stories of them. They can share their love to these children. Even staff between staff can also bond with each other since they spent their time together at the event.

7.0 Three challenges of the programs

7.1 McDonald

There are still lack of supporters, donors and volunteers that willing to help the people those who need their help with full heart. If we have more kind hearted people who are willing to support us we can even build more Ronald McDonald House in more places. Moreover, the contributions also can be useful to enlarge the building in order to take more patients’ parents to fit in the house.

We have faced many difficulties by grouping up all the supporters, donors, and volunteers together at the same as everyone have some important work to be done. Moreover, most of our supporters are from the well-known companies and most of the companies are from private companies. But somehow they have tried their level best to manage their time well and have attended the program and make it successfully.

Usually, publics’ doesn’t pay much attention on this kind of CSR program. Moreover, certain public are not encouraging the program because to them this program is not very much important on their busy schedule. However, some people have managed their time to attend this program even though they are busy with other schedules.

7.2 Kentucky Fried Chicken (KFC)

A challenge that may occur on the program is the workers can’t take leave on the Deepavali celebration. Even Indian workers can’t take a leave for their own festival.

The manpower that they use for the whole day to give a very good impact for the children and also society. To make sure these children feel the love that they spread by conducting this event. So that these kids feel special. There are no one neglected them.

Mostly publics’ do not care about this kind of event, they are busying thinking about themselves and wanted to celebrate their festival with their own family. What they don’t realize they’re children that need their attention too.

8.0 Important of the program & how to enhance reputation

8.1 McDonald

The Ronald McDonald was built on 21st June 1999. The house offers many families an affordable and comfortable accommodation in the grounds of the Pusat perubatan Universiti Kebangsaan Malaysia (PPUKM). It helps to reduce burdens of many families who have travel far from home to Kuala Lumpur to obtain the treatment for their seriously ill children. This program is important because making the house a cleaner and more comfortable home-away-from-home for the seriously ill children who need to undergo outpatient treatment at the hospital, and their parents. We should always prefer to stay on the cleanest surrounding so that we can stay far from the serious illness.

This program can help the company to enhance its reputation by serving to those people who need help in correct time. However, the public’s perception towards McDonald are too bad because they only knows that the McDonald’s have delivering the fast food which will affected the health condition highly and riskily. But quite less people only knows about the Ronald McDonald House which is located at the ground of HUKM hospital in order to help the patience’s parents who is suffering from serious illness. The purpose of this house built is to help many families that travel far from Kuala Lumpur to obtain treatment for their seriously ill children. Usually, the costs of pediatric medical treatment will be costly and putting up at hotels in the city would add to the financial and emotional stress. By this we can notice that McDonald have also concern about the public’s health condition and take some actions to reducing the public’s burden by building this house.

8.2 Kentucky Fried Chicken (KFC)

This program is important primarily because to show that KFC (QSR Sdn Bhd.) really care about the society. To show that they really care about our society, they make sure every year this event will be successful like previous year. It is easy for them to conduct this event because they kept on doing the same event for the past 14 years and turn out very well. To enhance their reputation, KFC (QSR Sdn Bhd.) have to think of something else to do besides conducting the same event for the past 14 years. To boost up their reputation I suggest that KFC should open their own orphan’s house. In this way KFC will increasingly change the society perception towards KFC differently.

9.0 Comparison table

McDonald

KFC

Benefits

McDonald will gain reputation and good images for the company

the management of the house can upgrades the house facilities or help more children in the future

McDonald can use their remaining profits to lend their to any orphanages or old folks home

Shows that how concern KFC are about society

their relationship with the society will become good every single year

Staff between staff can also bond with each other since they spent their time together at the event.

Challenges

still lack of supporters, donors and volunteers that willing to help the people those who need their help

many difficulties by grouping up all the supporters, donors, and volunteers together

publics’ doesn’t pay much attention on this kind of CSR program

The workers can’t take leave on the Deepavali celebration. Even Indian workers can’t take a leave for their own festival.

The manpower that they use for the whole day to give a very good impact for the children and also society

Mostly publics’ do not care about this kind of event

Impacts

house offers many families an affordable and comfortable accommodation

to help many families that travel far from Kuala Lumpur to obtain treatment

McDonald concern about the public’s health condition & decided public’s burden by building this house

show that KFC really care about the society

This event was successful since they do it for every year

The kids were excited and thrill knowing that they are not alone during their special festival

10.0 Conclusion

As for conclusion, we have underlined each of the programs that have been conducted by both companies in conjunction to Corporate Social Responsibilities (CSR). Based on the research that we have done, we can say that McDonald’s aware that they have been serving fast food which is an unhealthy food to the society. In that case, they have ensured to change the public’s perceptions towards their company positively by conducting these programs through Ronald McDonald’s House. The programs show that McDonald’s do concern about the society.

As for KFC, they are concern about the society as well. They have been conducting the same event for the past fourteen years which is Projek Penyayang. In order for them to enhance their company’s reputation, they should build the same programs that have been conducted by McDonald’s where they have their own house for charity. We can see that both companies facing the same challenges in enhancing the company’s reputation where in return they gain benefits through these programs.

Furthermore, by the effort both companies in conducting these programs it clearly strengthens up the relationship between both internal and external stakeholders and also not to forget the society. As we can see, both companies have done tremendous job through programs that have been conducted by both of them in order to build a good image towards society.