McDonalds 2001 Annual Report Download - page 6

greater role clarity in our hamburger busi-
ness. We created a single point of leadership
for our Partner Brands to help us capture
more meal occasions outside the reach of
McDonald’s. We also elevated the role of
corporate strategy and business development
in order to accelerate ideas for growing our
existing businesses and to identify new busi-
ness opportunities.
In addition, we implemented a number of
initiatives around the world in 2001 that are
expected to generate ongoing annual savings
of about $100 million in selling, general and
administrative expenses, starting this year.
In the U.S., we have streamlined the respon-
sibilities of our field staff so they can focus
more attention on the Quality, Service and
Cleanliness that our customers receive. We
have improved training for our restaurant
managers to enhance their ability to adapt
to changing situations in their day-to-day
restaurant environments. We are compiling
more objective customer perspectives and
using an enhanced national restaurant
evaluation system. And, we are providing
more menu variety and are implementing
programs to improve customers’ perception
of the value we represent. Importantly, we
are linking employee compensation more
directly to customer satisfaction, as well as
to financial performance.
We won’t see the results of these U.S. initiatives
overnight. But our customers will begin to see
a noticeable difference as the year progresses.
In 2001, we implemented a similar change
initiative across Europe. Called EuroMission,
the goal is to increase sales and transactions
by collaborating on strategies and implement-
ing programs that drive employee satisfaction,
customer service and value.
With consumer concerns regarding the safety
of the European beef supply largely behind
us, our management team is moving quickly
to take advantage of improved business
conditions.
On the other hand, we expect the weak eco-
nomic conditions in many Asian and Latin
American markets to continue for some time.
Yet, these countries represent an enormous
long-term opportunity for McDonald’s, given
their potential for economic growth and their
large populations. Accordingly, in the short
term, we are focusing on increasing our
affordability and building our brand.
While attractive prices are important every-
where, they are especially important in coun-
tries experiencing economic difficulties and
where income levels are often low. To prof-
itably support the great value we offer in
these challenging—yet promising—countries,
we have been, and continue to be, focused
on improving our cost structures. And since
attractive prices alone are not enough, we are
intent on strengthening the preference for
McDonald’s by delivering on the basics of
cleanliness, quality and speed of service and
by providing experiences that build bonds
with kids and families.
Fortune magazine ranked
McDonald’s among America’s
Most Admired Companies in the
area of social responsibility.
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