Question

McDonald’s Corporation is the world’s largest fast-food restaurant chain. Using the Internet, evaluate the quality of the corporation in terms of management, the board of directors, and shareholder activism. Are the issues you list favorable or unfavorable for sound corporate governance? Choose an article from BusinessWeek, Fortune, Forbes, Fast Company, or any other well-known publication that deals with a corporation that has undergone a significant change in its strategic direction. What are the implications for the structure of this organization?

Answer 1

Active Oversight of Company Strategy.

The Company’s Board of Directors is comprised of a diverse group of committed and highly qualified individuals who care deeply about McDonald’s, and have skills and expertise that are aligned with the Company’s strategy. More than one-third of the Directors joined the Board within the last four years, bringing fresh perspectives and unique skills that contribute to the overall effectiveness of the Board.

The Board provides active oversight of the Company’s strategy. The Velocity Growth Plan is discussed at each Board meeting, and the Board’s Public Policy & Strategy Committee, established in last year, was actively engaged in the development of the Board’s annual “deep dive” strategy session. The United Kingdom market has had over 10 years of steady growth, and they experienced many of the Velocity Growth Plan’s accelerators firsthand in the restaurants there.Company also engaged with the global leadership team and the UK management team, participating in open and robust discussions about the opportunities and challenges that will help to evolve the Company’s strategic direction as they move forward.

The Board continuously monitors the Company’s strategy, leadership and operations in light of an ever-changing business environment. They also carefully examine with management the different ways McDonald’s can continue to create value for shareholders. Company believe the Directors’ experiences and perspectives have helped evolve McDonald’s culture and focus on the Company’s strategic initiatives, and look forward to continued progress

Velocity Growth Plan.

McDonald’s strategic plan focuses on a long-term outlook to deliver meaningful growth and increase guest counts, a reliable measure of the Company’s strength that is vital to growing sales and shareholder value. They are targeting opportunities at the core of McDonald’s — food, value and the customer experience. The Velocity Growth Plan has aligned the McDonald’s System, and made substantial progress in last year

CEO Steve Easterbrook, has re-vitalized McDonald’s. He continues to lead a cultural transformation — one that is customer obsessed, working together to make a difference for our business, our people and our communities, and aspiring to be a leading, world-class organization. Steve and his management team are passionate about McDonald’s, well-positioned to build on the success.

Ongoing Shareholder Outreach.

The Company believes in the importance of feedback from shareholders and management regularly reports to the Board on its engagements with a wide variety of shareholders. Topics of interest from shareholders over the past year have included the Velocity Growth Plan, business and financial performance, governance practices, sustainability initiatives, and the link of the Company’s executive compensation programs to growth strategy. This feedback, as well as voting results from previous annual meetings, are valuable perspectives during our boardroom deliberations.

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