Global Business Management Report: Corporate Universities Analysis

This report provides an in-depth analysis of corporate universities, specifically focusing on McDonald's Hamburger University and Disney University. It begins with an executive summary outlining the significance of these institutions in the 20th century, highlighting their role in employee training and knowledge management within multinational organizations. The report delves into the background of both universities, detailing their establishment, objectives, and training programs. It explores the reasons behind the creation of corporate universities, emphasizing their importance in addressing employee knowledge gaps and aligning training with business goals. The report also discusses the potential benefits, including strategic alignment, employee recruitment and retention, and the establishment of a learning culture. Furthermore, it examines the role of corporate universities in knowledge management, presenting relevant theories and practical applications. The report concludes with a discussion of the advantages and disadvantages of corporate universities and provides recommendations for improvement.

Running head: GLOBAL BUSINESS MANAGEMENT
Global Business Management
Name of the Student
Name of the University
Author Note

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Executive summary
This following report aims at the different factors related to corporate universities. These
corporate universities have come into existence in the 20th century. Various multinational
organizations have set up these corporate universities so they can train their employees through
the mode of learning. There are numerous employees who face difficulties in sectors because of
lack of proper knowledge. These organizations have worked proactively to set up corporate
universities that would cater to the need of organizational objectives. Through this organizational
learning process, employees will become motivated and perform better so they can fulfill their
responsibilities. The two organizations or corporate universities that have been chosen in this
paper are Hamburger University and Disney University. The reasons for setting up these
universities have been discussed with the worthiness for investments. The several advantages
and disadvantages have been highlighted and recommendations have been given on how to
improve the entire process.

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Table of Contents
Introduction......................................................................................................................................3
Background of two universities.......................................................................................................4
Reasons for setting up corporate universities..................................................................................5
Potential benefits of corporate universities......................................................................................6
Business goals and strategic alignments......................................................................................6
Recruitment of employees and their retention.................................................................................6
Maintenance of a global quality..................................................................................................7
Establishment of a learning culture.............................................................................................7
Corporate universities and knowledge management.......................................................................8
Worthiness of corporate universities...............................................................................................9
Advantages and disadvantages of corporate universities..............................................................10
Advantages................................................................................................................................10
Disadvantages............................................................................................................................11
Recommendations..........................................................................................................................11
Conclusion.....................................................................................................................................12
References and Bibliography.........................................................................................................13

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Introduction
The aim of the following report is to find an idea of the role of the corporate universities
in gaining of knowledge and developing the business ideas. Competitive advantage is a term i.e.
generally ascribed to the business context. Business organizations will always need to be at the
forefront of the industry by supreme knowledge gaining. In this scenario, the role of the
corporate universities is huge. They provide the opportunities to all learners for a better future,
ensuring job placements and creating a better knowledge based enterprise for advancements. No
organization in this competitive business environment can proceed towards success without
proper knowledge management. The employees should always be cautious about the issues that
create troubles within the industry.
Therefore, they have to find the ways how corporate universities can solve these
problems. In this report, two corporate universities will be chosen and their backgrounds with the
proper reasons for their establishments. Some of the potential benefits of setting up these
universities will also be discussed in this paper. The role that these corporate universities play in
inculcating knowledge management will be discussed as well. Some recommendations will be
given to judge whether these corporate universities are good investments for the various
renowned multinational corporations (Dalkir 2013). The impact of these universities on
knowledge management on learners will be analyzed.
These issues are of supreme importance for the overall benefits of the organization. The
two universities chosen for this paper are McDonald’s Hamburger University and Disney
University. These universities are a challenge for those multinational corporations for proper
knowledge management.

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Background of two universities
At first, a brief description will be given on the Disney University (DU). This university
has been set up by Disney for knowledge management programs for all employees Disney who
are also known as Cast Members (Disneyinstitute.com. 2019). Through the knowledge
management programs, Disney has ensured the growth of learning for all of their employees. The
employees are taught about the heritage and traditions of Disney. The employees will be highly
benefitted with these traditions since this will surely enhance their capabilities and provide better
services for their customers. The courses for learning help employees to become experts through
their personal and professional developments. The on job training will also be given to the
employees so they can perform better and meet the requirements of their clients. The classroom
sessions are organized by mentors within the company who train all employees to gain a better
knowledge about proceedings of the company. There are several university buildings that are
located in Walt Disney Orlando, Disneyland Paris, Team Disney Headquarters and other places
(Disneyinstitute.com. 2019).
The second university to be discussed here is McDonald’s Hamburger University. It is a
corporate university that was established in 1961. The campus area of this university is around
80 acres. It is located at Chicago, Illinois in the United States (Corporate.mcdonalds.com. 2019).
Many training sessions are taken in this university for the employees of the company. Various
types of trainings are given to them so they can satisfy their clients and improve their processes
of delivery. All restaurant employees are given a training of 32 hours to refine their skills and
sharpen their knowledge. It is extremely essential for employees as more than 2 million
employees have been graduates from this university since its establishments

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(Corporate.mcdonalds.com. 2019). This helps all employees to gain proper knowledge about
how to manage difficult situations.
Reasons for setting up corporate universities
Corporate universities are regarded as the central factors for enhancement of knowledge
management of the employees of multicultural organizations. These multicultural organizations
have faced problems of ignorance of employees many times (Dalkir 2013). This has been posed
as a challenge for them as well. Employees have faced numerous difficulties when they operate
the processes of their companies. This is why organizational leaders have thought of establishing
corporate universities that would surely enhance the opportunities for organizations.
Organizational learning has been one of the most crucial aspects for employees.
If they are unable to adjust to the organizational environment, culture and process
systems, they are surely in need of thorough learning. This is the primary purpose of setting up
several corporate universities by organizations (Dalkir 2013). Generally organizations have
training programs for employees. Sometimes, these training programs are not helpful or
beneficial for employees. In this scenario, organizations have created universities where
employees can gain both theoretical and practical knowledge for their betterment. This kind of
training program is arranged in classroom sessions and these are very much effective at some
point of time (Wiig 2012). McDonalds observed that their employees were not able to perform as
per the needs of their clients. This is why they set up this Hamburger University so it could meet
the desires of their customers.
Every company wants stability in their business environment. These training programs in
classroom sessions will improve the understanding and learning of employees. This factor will

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be very much motivating for them as well. The powerful model for learning that corporate
universities have provided can enhance the knowledge of employees. The learning professionals
are in the core of improving employee knowledge (Kumaraswamy, Kowta, and Chitale 2012).
Company like Disney has to implement several techniques regarding technology. If employees
are not able to understand these implementations, it will effect negatively on benefits of
company. Thus, it will hamper their financial stability as well. So, apparently this is the reason
for setting up the corporate universities by companies like Disney and McDonalds.
Potential benefits of corporate universities
Corporate universities have yielded several good impacts on the organizations. Some
benefits that could be attributed to corporate universities are:-
Business goals and strategic alignments
Every company has their own business goals. Disney and McDonalds are not exceptions
as well. Both these companies are frontrunners in their respective industries (Wiig 2012). This is
why employees need to be treated with best kind of motivation so their activities can be aligned
with the business goals of the company. These corporate universities that are being talked about
are driven by a particular mission (Hislop and Helms 2018). These missions have to be achieved
by organizations through organizational learning of employees. The training courses of these
universities aim to achieve some specific objectives for business like Disney and McDonalds.
Recruitment of employees and their retention
Employee recruitment is a very crucial component for success of organizations.
Employees should always be trained in such a manner that they can compete with their rivals and

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outlast them with their high potentials (Kumaraswamy, Kowta, and Chitale 2012). The learning
professionals give an idea of organizational culture and environment to the future employees in
these corporate universities. Therefore, they thrive to work for a long time with these
universities. The chances for business sustainability will automatically rise if the organization
can retain their long term employees (Firestone and McElroy 2012). Their effectiveness and
experience will surely act in a better manner. The talents of these employees can be utilized by
Disney and McDonalds for creating a better tomorrow. If these employees show their
competence in managing difficulties, the training process of corporate universities will surely
turn out to be fruitful (Dixon 2017).
Maintenance of a global quality
Both these organizations, McDonalds and Disney are very much reputed and they need to
maintain it to keep up their reputation in the global sphere (Hislop and Helms 2018). The
trainings that are given to employees in these corporate universities always motivate employees
to the fullest (Firestone and McElroy 2012). Employees are always charged up to perform at
their highest potential. The learning professionals also become motivators and good speakers.
Thus they have come up to be people with professional capabilities of being a good leader. The
challenges in good and fruitful leadership are taught through these theories as well (Jarvis 2013).
Establishment of a learning culture
A proper culture for learning is set up with the promotion of these corporate universities.
The focus of employees is on learning so a learning environment is established in this situation.
The learning professionals who go on to teach in these corporate universities are very high with
their self-esteem and their positions in society (Firestone and McElroy 2012). The learning
culture of organizations like Disney and McDonalds will have a greater influence on customers

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as well. The faculty members of these universities can also opt to enhance their knowledge so
they can teach other employees how difficult it is to cope up with several difficulties in their
business industry (Becerra-Fernandez and Sabherwal 2014). Corporate universities are also used
as tools change initiatives can be driven.
Corporate universities and knowledge management
Corporate universities are the basic components for the integration of knowledge
management. Employees always need to mix up within the organizational culture and
environment so they can get the maximum benefits from their activities (Dixon 2017). The
organizations must take up several steps to make the knowledge management in a faster and
safer manner. These corporate universities like Hamburger University and Disney University
have always taken up the pleasure to meet the needs of employees for further knowledge
management (Becerra-Fernandez and Sabherwal 2014). There are some theories related to
knowledge management that can be discussed within this scenario. These are Organizational
Knowledge Management theory, Ecological Knowledge Management theory and Techno-centric
theory. These theories have been very much effective for the organizations (Jarvis 2013).
Corporate universities are designed in a way that they can manage issues of the
organization and train employees on the basis of organizational culture and organizational
hierarchy. The techno-centric theory focuses on enabling the designs for technology among
organizations (North and Kumta 2018). Disney University will be largely benefitted by this
theory since they have to manage several things related to technology. Therefore, corporate
university like Disney University will have to think about implementing techno-centric theory
for betterment of their practices (Wheeler 2012). These theories will be highly important to be

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followed by the corporate universities. They must measure their target market and use
technological platforms for their benefits. Knowledge management theory can be implemented
by Hamburger University to educate their employees for further benefits. Social media will also
play a vital part in this context as well. The learning professionals would get an advancement of
learning relating to economic knowledge management theory. The relationships between learners
and learning professionals will develop and this will surely result in best outcomes for the
company. After getting efficient training, employees would feel that that they can always
perform in a better manner and satisfy needs of their clients effectively (Rolfe 2012).
Employees will learn on how they can cope up with several difficulties. The
organizational cultures of the Disney and McDonalds will be shaped in a new manner altogether.
The knowledge sharing would be made better and this will enrich the knowledge of employees
and professionals (North and Kumta 2018). All the information about the organization should be
shared by learning professionals. This course is highly effective in certain cases since
McDonalds have a huge range of employees and most of them need proper education about the
products, services and other offers that their company provides to customers. Thus McDonalds
should try to make some advancement in their processes with the knowledge and experience
shared by the faculty of their corporate universities (Namada 2018).
Worthiness of corporate universities
The investment in corporate universities by the multinational organizations is regarded as
a very worthy one. This concept has evolved a lot in the last few decades. In fact, organizations
can make higher profits if they can implement the knowledge of their employees in their
processes. These corporate universities primarily were introduced to the reply of rising academic

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business graduate schools and colleges (Rolfe 2012). In the beginning of these universities, they
tend to focus on educating their employees about products and procedures of theirs. The faculty
members of these corporate universities were indeed highly trained and they motivate employees
to perform better in the organization.
The conventional academic universities always ignored the trends of industries and their
business practices (Namada 2018). In this way, employees began to more knowledge about
products and procedures. Thus it has been a cost-effective process for multinational
organizations to establish corporate universities. This will save their time as employees will gain
better knowledge and implement them in their work process. Faculty members will create a sort
of influence on the learners and train employees on the basis of needs and wishes of the
particular organization only (Wagner and Hollenbeck 2014). Apparently it has really been an
effective factor for organizations to focus on corporate universities.
Advantages and disadvantages of corporate universities
Advantages
 Knowledge of employees can be enhanced based on the needs of their processes.
 The branded learning of employees often helps them to overcome difficulties of the
procedures.
 Stakeholders will be pleased by this process since it will cut down the costs of employee
education.
 Faculty members of corporate universities always emphasize on motivating employees so
they can fulfill the business objectives (Wagner and Hollenbeck 2014).

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Disadvantages
 The proper management of corporate universities is becoming very critical because
leaders have to handle both the improvements of knowledge management through
learning and their performance measure after going through the courses (Rolfe 2012).
 It is very difficult to grow corporate universities in developing countries because of
availability of limited sources (Kumaraswamy, Kowta, and Chitale 2012).
 Employees have very little time because of the lack of proper work-life balance.
Recommendations
Some recommendations should be given on how these corporate universities can develop
their processes and make their knowledge management facilities better.
 Multicultural organizations should appoint faculty members on the basis of their
experience. Those faculty members should move away from the culture of training and
adopt the culture of learning.
 Faculty members should look to enhance the knowledge of their employees by focusing
on practical situations rather than theoretical concepts.
 Corporate universities should always determine the efficiency of their workforce and
maintain a proper channel for the flow of their knowledge.
 Faculty members should have the knowledge to identify challenges that are faced by
employees and try to eradicate them through their learning process.
 Employee experience should be made better and actual learning needs of employees
should be dealt with properly.