My Own Views: Marketing Research project on McDonalds

Acknowledgements

We take this opportunity to express my profound gratitude and deep regards to Almighty Allah and then to our Professor Saqib Masood for his exemplary guidance, monitoring and constant encouragement throughout the course of this project. The blessing, help and guidance given by him time to time shall carry me a long way in the journey of life.

We also take this opportunity to express a deep sense of gratitude to McDonalds’ Shift manager Miss Shazia for her cordial support, valuable information and guidance, which helped us in completing this task through various stages.

Lastly, we thank our parents and friends for their constant encouragement without which this project would not be possible.

McDonalds’ Pakistan

Being a responsible corporate citizen, McDonald’s firmly believes in giving back to the communities it operates in. We love to provide support and encouragement to the people who need it the most. All our restaurants contribute to their local community and every year we help set up and support numerous educational, sporting and charity programs designed to help a wide range of people.

McDonald's has a proactive approach to charities and sponsorships. We believe these help inspire and support the people of Pakistan, especially the underprivileged ones, to live a better life. We are dedicated to delivering great experiences through our Amin Lakhani

ongoing community support programs.

McDonalds’ History

Everything has started when Patrick McDonald opened “The Airdrome” in 1937. This restaurant was located at the Monrovia Airport in Monrovia, California. At that time prices were much lower than it is today. Back to then the hamburgers were sold only for 10cents, and all-you-can-drink orange juice cost only 5cents. After 3years, in 1940 his two sons Mac and Dick (Maurice and Richard), relocate the whole building and open the restaurant with new name “McDonald’s Bar-B-Que Restaurant” in San Bernardino, California. It was a typical drive-in featuring a large menu and car hop service.

Ray Kroc always portrayed himself as the company's founder, but McDonalds’ was actually started by two brothers (Dick and Mac)

In 1954, Ray Kroc, malted-milk mixing machine salesman, acquired the exclusive franchising rights to a successful California-based hamburger chain from brothers Dick and Maurice (Mac) McDonald. He had visited the brothers at their first restaurant in San Bernardino, California, after hearing that their restaurant used eight multi-mixers – more multi-mixers than any other similar size restaurant.

In 1955, Ray Kroc opened his first restaurant in Des Plaines, Illinois (near Chicago), and the McDonald's Corporation was created.

In 1957, Quality, Service, Cleanliness and Value (Q.S.C. & V.) became the company motto.

In 1961, Kroc bought out the McDonald brothers’ interest in the business in 1961. Kroc convinced the McDonald brothers to sell the business rights to him for a sum $2.7milion.

The McDonald brothers (Dick right and Mac left)

http://www.mcspotlight.org/company/company_pix/history_mcdbrothers.gif

In 1961, Ray Kroc bought all rights to the McDonald's concept from the McDonald's brothers for $2.7 million.

In 1966, McDonald's listed on the New York stock exchange on the 7th May.

In 1968, The Big Mac was introduced.

In 1972, Assets exceeded $500 million and sales surpassed $1 billion.

In 1974, The 3,000th McDonald's restaurant was opened in Woolwich (south east London) in October, the first in the UK. The company admitted that NOBODY went in and later decided to target children with TV ads.

In 1976, McDonald's first UK TV advertisement was broadcast.

In 1978, The 5,000th restaurant opened in Kanagawa, Japan and it made US $1 million in its first year.

In 1984, founder Ray Kroc dies.

In 1996, the first Indian restaurant was opened.

1997–2003 is a threatening period for McDonalds corporation.

In 2003, the company launched the ‘I’m lovin’ it’ campaign.

In 2005, McDonald’s started its McDelivery service in Singapore.

1n 2013, one of the best food centres in the world..

Where it all began:

In 1965 McDonald's went public with the company's first offering on the stock exchange. A hundred shares of stock costing $2,250 dollars that day would have multiplied into 74,360 shares today, worth over $2.8 million on December 31, 1998.

Local history of McDonalds

McDonald’s is the largest chain of food retail in the world; it has 30,000 restaurants in 121 countries.

The qualities of McDonald’s are its widespread popularity of its brands, expert management, supreme quality food, best locations, developed operations and global presence.

McDonald’s first restaurant opened its door to the people of Pakistan in September 1998 in Lahore. This launch was met with unprecedented enthusiasm from the citizens of Lahore, who are known for their liveliness, vigor and penchant for quality food.

Karachi opened its first restaurant a week after Lahore. Ever since McDonalds’ opened the doors of restaurants both in Karachi and Lahore, they have been proud to provide customers the same great taste, outstanding service that is synonymous with the Golden Arches all over the world.

There are now 21 restaurants in Pakistan.

Cities	No of Branches
Karachi	11
Lahore	8
Faisalabad	1
Islamabad	1
Rawalpindi	1

Today millions of Pakistanis place their trust in McDonald’s every day trusting the company to provide them with food of a very high standard, quick service and value for money.

Almost every restaurants of McDonald’s has the play zone for kids and there are fun zones for elders as well.

McDonald’s in Faisalabad

McDonald’s in Faisalabad is located in Peoples Colony; Satyana Road, Faisalabad, Pakistan

It is one of the biggest fast foods restaurants which offer the great taste in the most elegant environment. It offers Baby friendly, Disabled Access, Air conditioned, Seating with Smoking, Non-Smoking areas and home delivery in Faisalabad. McDonald’s offers inspiring tasting foods and better quality service to it respected clients.

McDonald’s is one of the best fast food restaurants not in Faisalabad but also around the world. So let’s come and enjoy the scrumptious taste of foods at McDonald’s Faisalabad with some exclusive deals and offers.

Location in Faisalabad

About McDonald’s:

· Company : Private Limited

No. of Branches : 33000 +

· Industry : Food restaurants

· Founded : 15 may 1940

· Founders : Richard and Maurice McDonald’s & Ray Krock

· Head Quarters : Oar brook Illinois

· Revenue : US $ 22.6 billion

· Website : www.McDonalds.com

All the franchises of McDonalds in Pakistan are owned by Lakson Group of Companies

McDonald’s Mission:

“McDonald’s mission is to open a food center on mars.”

McDonald’s Vision:

“McDonald’s is vision is to be the world’s best quick service restaurant experience being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile.”

OPERATIONS OF MCDONALD’s

Raw Material Acquisition:

All the inputs are imported from different countries like Saudi Arabia, South Africa, UAE and Malaysia. Only the buns used in burgers produced locally from Dawn Bread.

Ordering Raw Materials:

Based on demand forecast by restaurant manager, the first assistant order the Venus distributor on daily basis. Venus distributor is independent to acquire raw material from wherever it desires but it remains limited only by the strict specifications of materials by McDonald’s.

Cooking:

The cooking procedure and recipe is documented so that the products become standardized and customer get similar taste, quality, quantity to whichever restaurant they go. It is the policy of McDonald’s to throw away any burger if they remain on heated grill for 15 minutes.

Restaurant Maintenance:

All the equipment used in cooking are washed at the closing of restaurant every night with anti microbial fluid. Kitchen, floor, washrooms and all other restaurant areas are cleaned after every half an hour.

Self Service:

When customer enters the restaurant, they go to the counter, give their order which they are served in a single minute. Now customer take away the tray in which the order is served and take their seat themselves in a big hall.

Play Place:

The play place offers kids a real thrilling time. This should come as good news for parents who can enjoy their delicious McDonald’s meal while the kids have fun. McDonald’s means different things to different people. For some, it is family outing, for others it may be a place to grab a bite in very little time, for children it is a great place to visit for meal and to play.

International Organization Structure

Brand Social Media

CFO Control

Human resources Diversity

Legal & Secretaries

Restaurant

CEO Central Division

East division

Operations west division

Supply chain & Franchising

COO

Chairman of Board 11 Directors

At the top chairman, Chief Executive Officer and Chief Operating Officer.

Below that, the departments are broken down into: corporate affairs, marketing, human resources, national operations, regional managers, finance, information, and strategic planning.

January 31^st, 2011 McDonald’s Corporation is the World largest chain of hamburger fast food restaurants, serving more than 58 million customers daily. In addition to its signature restaurant chain, McDonald’s Corporation held a majority interest in Pret.

McDonald’s Organizational Structure in Pakistan:

In Pakistan, there are two setups.

First is for Punjab and NWFP, and this are headed by Mr. Ghous Akbar (CEO),

While the second region in Sindh and Baluchistan and CEO for this region is Mr. Amin Muhammad Lakhani.

There is General Manager at Headquarters level and under the General Manager, above mentioned departments work. This is setup at Headquarters level. In Pakistan, some departments are missing, i.e., R&D; research and development are done at corporate level only.

Shift Manager effectively managed the all members in McDonald Total 87 workers in McDonald In Faisalabad in which 57 are Crew Members and remaining 30 are the Delivery Riders.

Relationship with Employees:

McDonald’s build friendly relationship with their employees and create friendly environment in their Restaurant. McDonald’s motivate their employees to do their work efficiently and effectively.

McDonald use Centralized Structure in which Top managers make all the decisions, and Lower-level managers merely carry out their directives

McDonald’s Operation strategy

McDonald’s utilizes an excellent operation strategy in order to gain a larger market share and increase value to the shareholders. The corporation specially focuses on speed, standardization, quality and affordability.

So McDonald’s competes on three main bases mainly to make their customers happy that are as follows

1. Speed

2. Standardization

3. Affordability

To offer high quality products at low cost requires efficient processes throughout the entire McDonald’s organization. This goal is built into their vision statement when they claim. We will be the most efficient provider so that we can be the best value to the most people.

McDonalds’ products

The products produces by McDonald’s can be divided in several groups:

1. Hamburgers

2. Chicken

3. Fish

4. French fries

5. Soft drinks

6. Healthy items such as salads and Desserts.

There is no doubt that McDonald’s main products are hamburgers. There is a high variety of this type of food. To begin with, the simplest one and the most common is Cheeseburger then Double Cheeseburger (which has two ground beef patties and two slices of cheese), McDouble, Big N’Tasty, McNifica, etc. The names and consistent varies according to the countries.

Chicken, fish and pork products such as McChicken, Premium chicken sandwiches, Snack wrap, Chicken McNuggets, etc. are another products in McDonald’s restaurants.

French fries are considered to be one of the most sellable items. The main reason for this is that no matter what other product the consumer is willing to buy, but in every set French fries are included automatically.

Other products such as salads are relatively new in this restaurant. The first salads were added to its menu in 1985. Nowadays more and more people are concerned about their health so, McDonald’s puts its all efforts to achieve more and not lose any of the potential customers.

Big Mac

Happy meal

Deals

Zinger burger

Desserts

Drinks

New promotion

Product prices

Breakfast - Ala Carte	In-store & Drive thru
Chicken Sausage McMuffin with Egg	280
Egg McMuffin	250
Chicken Sausage McMuffin	225
Egg & Cheese McMuffin	180
Hash Browns (Single)	75
2 pcs Hot Cakes	240
3 pcs Hot Cakes	300
Orange/Tropical Juice Small	120
Orange/Tropical Juice Tall	160

Product prices

Breakfast - Meals	In-store & Drive thru
Big Breakfast	495
Chicken Sausage McMuffin with Egg + Hash Browns + Small Cappuccino	395
Egg McMuffin + Hash Browns + Small Cappuccino	375
Chicken Sausage McMuffin + Hash Browns + Small Cappuccino	350
Egg & Cheese McMuffin + Hash Browns + Small Cappuccino	320
Chicken Sausage McMuffin with Egg + Small Cappuccino	345
Egg McMuffin + Small Cappuccino	325
Chicken Sausage McMuffin + Small Cappuccino	300

Product prices

Small Sandwiches	In-store & Drive thru
Beef Burger	125
Cheese Burger	140
Spicy Chicken Burger	140
Double Cheese Burger	310
File-O-Fish	280
6 Pcs Chicken McNugget	285

Product prices

Large Sandwiches	In-store & Drive thru
McRoyale	360
Quarter pounder with cheese	350
Big Mac	320
9 Pcs Chicken McNuggets	370
20 Pcs Chicken McNuggets	620
Spicy McCrispy Chicken Deluxe	360
McArabia Chicken	350
McChicken	270
Chicken Big Mac	315
Big Tasty	470

Product prices

MEDIUM EVM's	In-store & Drive thru
Filet-O-Fish	425
Double Beef n cheese	425
6 Pcs Chicken McNuggets	425
McChicken	435
Big Mac	495
Chicken Big Mac	495
Quarter pounder with cheese	515
9 Pcs Chicken McNuggets	495
McRoyale	525
McArabia	515
Spicy McCrispy Chicken Deluxe	490
Cheese Burger	515

Product prices

LARGE EVM's	In-store & Drive thru
Filet-O-Fish	445
Double Beef n cheese	445
6 Pcs Chicken McNuggets	445
McChicken	455
Big Mac	515
Chicken Big Mac	515
Quarter pounder with cheese	535
9 Pcs Chicken McNuggets	515
McRoyale	545
McArabia	535
Spicy McCrispy Chicken Deluxe	510
Cheese Burger	535
Big Tasty	610

Product prices

Happy Meal	In-store & Drive thru
Happy Meal Beef Burger	195
Happy Meal Cheese Burger	210
Happy Meal Chicken Burger	210
Happy Meal 4 Pcs Nuggets	210

Product prices

Drinks	In-store & Drive thru
Coke / Sprite / Fanta
Regular - 12 oz cup	80
Medium - 16 oz cup	90
Large - 21 oz cup	100

Hot Drinks	In-store & Drive thru
Cappuccino (Small/Tall)	150/170
Latte (Small/Tall)	160/180
Mocha (Small/Tall)	175/195
Hot Chocolate (Small/Tall)	200/220
Long Black (Small/Tall)	125/145
Tea	80
Water		In-store & Drive thru
Nestle Pure Life 0.5 Liter		45

Product prices

Shakes	In-store & Drive thru
Regular Chocolate Shake	140
Regular Vanilla Shake	140
Regular Strawberry Shake	140
Medium Chocolate Shake	180
Medium Vanilla Shake	180
Medium Strawberry Shake	180
Large Chocolate Shake	215
Large Vanilla Shake	215
Large Strawberry Shake	215

Product prices

Desserts	In-store & Drive thru
Sundae Chocolate	140
Sundae Strawberry	140
Regular Cone	65
Regular choco Cone	80
Large Cone	80
Large Choco Cone	95
Apple Pie	140
Blueberry Custard Pie	140
McFlurry Oreo	195
McFlurry Cornetto Chocolate	215
McFlurry Cornetto Strawberry	215

Product prices

Special Offers	In-store & Drive thru
Spicy Chicken with Reg Drink (4pm - 7pm)	150
4 Pcs Chicken Nuggets with Reg Drink (4pm - 7pm)	150
Apple Pie with Tea (4pm - 7pm)	150
Strawberry Custard Pie with Tea (4pm - 7pm)	150
Medium Fries with Medium Drink (4pm - 7pm)	150

CULTURE OF MCDONALDS

“WE SERVE GLOBLY AND ACT LOCALY”

(this picture shows the different websites for different countries)

From the start, McDonalds’ have been committed to doing the right thing. And they’ve got the policies, programs and practices in place that allow them to use our size and scope to help make a difference.

Because what's good for us, is good for us all.

RAY KROC:

The McDonalds philosophy of quality, services, cleanliness, and value

(QSC&V) is the guiding force behind its services to the customers. All McDonald products are prepared sing the most current state of the art cooking equipment to ensure a quality and safety. At McDonald the customer always comes first. McDonald Pakistan provides fast friendly services the hallmark of McDonald that set it restaurant a parts from others. McDonald’s restaurant provides a clean comfortable environment especially suited for families.

Value:

McDonald's has an open-door culture; any employee can go to the Restaurant Manager and can discuss any problem or new ideas for the improvement of the restaurant. Nobody has any hang-ups; everybody does everything.

McDonald’s also believes in value to the customer, that is, why prices are value oriented as Amine Mohammad Lakhani put it in his word; “… nothing sells forever unless it is value for money.”

Keeping culture alive:

Firstly during the selection process they will have to ensure that the right people are selected to handle and serve the food to the customers. They will also have to take cognisance of the typical stereotypes that may exist regarding certain cultures.

· A strong desire to succeed, work hard and be part of a winning team.

· Integrity and the ability to work well within a franchised organization.

· A willingness to personally devote full-time efforts to the day-to-day operations of the McDonald's restaurant.

· A strong and successful background with emphasis on interpersonal skills

McDonald’s understands the value of both its employees and its customers. It understands the fact that a happy employee can serve well and result in a happy customer.

McDonald continuously does Internal Marketing.

This is important as it must precede external marketing. This includes hiring, training and motivating able employees. This way they serve customers well and the final result is a happy customer.

The level of importance has changed to be in the following order (the more important people are at the top):

1. Customers

2. Front line employees

3. Middle level managers

4. Front line managers

The punch line “I’m loving it” is an attempt to show that the employees are loving their work at McDonalds and will love to serve the customers.

Value to sustain with customer:

The customers are the reason for our existence. McDonalds’ demonstrate appreciation by providing the customers with high quality food and superior service in a clean, welcoming environment, at a great value

Culture factor for training in McDonald:

During the actual training program, care should be taken that nobody is offended and that they respect the customs in this country, which includes the roles of men and women, the food served during the training, the training schedule etc. A good idea may be to ensure that they make use of locals or people used to the customs in this country to provide the training.

McDonalds’ operate our business ethically:

Sound ethics is good business. At McDonald’s they hold and conduct their business to high standards of fairness, honesty and integrity. They are individually accountable.

TEAM OR GROUP PROPERTIES

TEAM WORKAT MCDONNALDS:

While not all employees can be superstars, McDonald’s owes is success to its team functionality rather than the efforts of one individual. McDonald’s does not have very highly integrated teamwork, but they would be unable to deliver their products and service without sufficient team unity and cooperation. The team on the floor of a McDonald’s restaurant is best described as a functional team. Team members have one area that they focus on during their shift. If they leave their post or are not productive, other line members will not be able to accomplish their jobs and the production line will suffer.

McDonald’s restaurant team is sequentially interdependent. Without everyone working together and having sufficient motivation to provide good and quick service. All members of the team fail. As a result of one person losing motivation or failing to perform his duties, customers may complain and business can be lost. Even though most employees are trained to

perform multiple tasks at various stations, they are not usually able to perform all of these tasks simultaneously.

The typical team was not self-reliant and required constant, direct input from the manager. We observed that often times when morale began to wane, the manager was able to reinvigorate the team and increase efficiency. However, we also noticed that if the manager grew tired and lost motivation the rest of the team quickly followed suit. Managers were also instrumental in helping out struggling team members by motivating them. This attitude kept the production line moving adequately. The team effectiveness is directly related to the manager’s leadership efforts.

Rewards:

In addition to offering competitive wage and promotion programs, McDonalds recognizes a reward hard work, delectation, motivation and results. Appreciation comes in many forms, from a single thank you for a job well done to restaurant wide recognition through programs such as ‘employee of the month’.

Flexible Schedules:
At McDonald's, they know that you have responsibilities and interests outside of work. They recognize the importance of work/life balance. That's why they offer flexible schedules to help you choose hours that best fit your life.

Criteria for giving status:

They give status to their employees on the bases of ability and capacity of employees to do work. Depending upon the nature of task they assign the goals to employees collectively or may be individually. They also encourage the employees to make delivery of single order in 60 to 70 seconds. For employees the qualification criteria is metric and for managers is at least masters

A Great Team:

Each person at McDonalds plays an important role. Crew and manages work together, constantly communicating and supporting each other in a team atmosphere that is busy and challenging, but always aims to be co-operatives and fun.

Norms:

· Ensuring healthy and safe work environment .

· Satisfying customers.

· Delivery of single order in 60 seconds.

· McDonalds’ make safety a part of everything.

· Provide healthy or peaceful environment.

· Ethical standards and procedures for making food is clearly communicated and reinforced daily.

Team Efficiency:

As in any assembly line, the employee’s performance is heavily measured by his or her efficiency level. It amounts to how many items the worker delivered in a given period, following a certain quality standard. Of course, there are others important points to be considered in order to determine who the best employees are. Initiative could be a means of distinguishing the workers in this sort of environment. This could be exhibited by a cashier who cleans the counter if idle, a cook who starts cleaning the kitchen earlier, or even a manager who presents to the company a new product or service concept. Also, cooperation plays a big role, because McDonald’s relies on groups and teams. Each employee relies on another line worker in the assembling process. In the end, any worker who demonstrates these qualities could have his/her picture hung on the wall as the “employee of the month” – this is a classic example of how McDonald’s stores motivate and reward their employees.

Diversification

In McDonalds 100% diversity is followed in McDonalds (ratio depends on market) No discrimination Worker diversity resulting in higher profits.

Diversity of languages

Around 44% speak Punjabi, 15.5% speak Pashto, 15.5% speak Sindhi, 10.5% Saraiki, 7.5% Urdu, 3.5% Balochi and 3.5% other languages (Hindko, Brahui etc.) as their first language

McDonald’s is the leading global foodservice retailer with more than 34,000 local restaurants serving approximately 69 million people in 118 countries each day. More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local men and women.

LEADERSHIP PERSPECTIVE

OVERALL LEADERSHIP:

A leader must have these core skills: cultural sensitivity, diversity management, adaptability and innovation, profitability and productivity management, continuity. These involve, many other things, understanding and the acceptance of other cultures, employment of people coming from diverse groups, keeping pace with and adapting to rapid changes, avoiding losses, and continuous survival and growth.

In continuation to what was observed in the visited McDonald’s stores, one cannot neglect to address the leadership style displayed by the line managers in these restaurants. Conforming to the informal and relaxed atmosphere emphasized by the manager’s calm attitude and the McDonald’s “100% customer satisfaction” goal; one could expect a “middle-of-the-road” type of management in which the leaders behave as compromisers, exhibiting both people and task oriented behavior.

McDonald’s Corporate believes its success is attributed in part to the talented restaurant crew. Also, Corporate claims to be engaged in talent management: attracting, developing and retaining talented people from all level. The leader behavior observed in the McDonald’s stores corresponds to the employment experience values promoted on their website. From the field study experience, we can surmise the McDonald’s leader-follower relationship as the following:”The task is simple. They provide all necessary tools for you to accomplish your job. Show commitment and perform your duties properly. I am here to help if necessary. I will not trouble you”. For the McDonald’s case, a comfortable and friendly environment reinforced by the line manager is paramount for the employee’s satisfaction.

In terms of McDonalds leader CEO philosophy Employees, the key ingredient play a vital role each day in shaping our overall employment

image through their performance behavior. Realizing people strength they provide the best employment experience to employees in order to achieve the goal of giving the world’s best quick-service restaurant experience to valued customers. McDonalds’ strive to recruit the best, hire the best, and

provide best place to work. McDonald’s corporate management believes in training and leadership at all levels. 7

Chairman of the Board

Andrew McKenna

Director Director Director Director

Robert Eckert Richard Lenny Susan Arnold CaryMcMillan

Director Director

Sheila Penrose Jeanne Jackson

Director

Enrique Hernandez

Director

Roger Stone

Director

Walter Massey

Director

Miles White

Director

John Rogers

CEO

James Skinner

President USA

Jeff Stratton

President europe

Doug Goare

President Asia, pasific ,middle east, africa

Dave Hoffmann

President canada and latin america

Edgardo Navarro

Chief financial officer

Peter Bensen

Human Resources

Richard Floersch

Legal & Secretary

Gloria Santona

Chief Restaurant Officer

Jeff Stratton

Inclusion & Diversity

Pat Harris

CEO of Franchising worldwide

Jose Armario

CBO

Steve Easterbrook

The business is managed as distinct geographic segments that include:

· US

· Europe

· Asia/Pacific, Middle East and Africa (APMEA)

· Other Countries & Corporate(OCC) including Canada, Latin America and Corporate

LOCAL LEADERSHIP:

While McDonald’s is a large multinational organization, the CEO is often seen as a leader and symbolic driver of the corporate initiatives and ideals. The CEO of McDonald’s in Pakistan is Amin Lakani.

McDonald’s is the largest and best known global food services retailer with more than 30000 restaurants in 121 countries.

The outstanding brand recognition, experienced management, high-quality food, site development expertise, advanced operational systems and unique global infrastructure ensure a position that enables us to capitalize on global opportunities.

McDonalds plan to expand their leadership position through great tasting food, superior services, everyday value and convenience.

McDonalds is comprised of more than 30000 local restaurants and serves 52 million people in more than 100 countries each day. McDonald’s has developed programs and strategies for motivating employees and teaching leadership. As a result, our group believes that McDonalds presented an excellent opportunity to observe organizational behavior in action.

McDonald’s employees demonstrate quality leadership and that the organization as a whole puts significant effort into motivating and working for its employees.

The work culture of McDonalds seems to be highly dependent upon particular management in charge at any given point in time. One would imagine that the manager would almost always use position power and would use a telling style of leadership since the typical employee

At restaurant level

There are basically two structures. One is the senior management side; the other is the restaurant side.

Operation director

Operation consultant

Area supervisor

General Manager

Restaurant Manager

1st Assistant Manager

2nd Assistant Manager

Shift Running Manager

Floor Manager

Staff Training Crew

Crew Members

Departmentalization

Functional departmentalization

Functional

Operation finance marketing R&D

PROCESS DEPARTMENTALIZATION.

Process

Rinsing

Cutting

Marinating

Frying

Packing

serving

So mcdonalds use process,functional and geografical departmentlization.

For the restaurant to be operating well, it is really important for all members of the restaurant team to work together and follow the system in place to ensure that the best quality food and services is provided to customers. New employees are selected on the base of their ability to work as part of team and teamwork forms a large part of our training programs and performance appraisals .when working in the restaurant employees can be a part of a amber of dedicated teams, for example the front counter, kitchen , dining area, drive thru and management.

EXTERNAL ENVIRONMENT ANALYSIS

Political factors

The international operations of McDonald’s are extreme under influence of a policy of the separate state put into practice by each government. For example, there are certain groups in Pakistan which demand the acts of governmental power concerning medical values of meal of fast food. They have specified that harmful elements as cholesterol and negative influences as fatness are concerning consumption of products of fast food.

On the other hand, the company operates the separate policy and instructions of operations. The certain markets concentrate on various areas of anxiety, such as various area of health, protection of the worker, and environment. All these elements are noticed in the state control of licensing of restaurants in the corresponding states. For example, there is a hung dispute can cause in McDonald’s in Pakistan if certain infringement of rights and infringement of the religious laws concerning halal of meal. As any business enterprise, these McDonald's stores should argue with problems of procedures of employment just as their tax obligations to succeed in the foreign market.

Economic factors

The organizations in the fast food industry aren't excused from any disputes and problems. Definitely, they really have the separate problems involving business factors. Branches and privileges of networks of the enterprises of fast service as McDonald’s has a tendency to experience difficulty in cases where the economy of the corresponding states is amazed by inflation and changes in exchange rates. Clients hence face a survey stalemate through their separate budgets, whether they should spend more on these foreign networks of the enterprises of fast food. Hence, to these chains, possibly, it is necessary to take out problems of effects of economic environment. Especially, their problem depends on the answer of consumers to these main principles and how it could influence their general sales. In an estimation of operations of the company, food chains as McDonald’s tend to import the biggest part of the raw materials to

certain territory if there is a delivery lack. Exchange rate fluctuations will also play an essential role in company’s operations.

As it is declared in the paragraph above, stores of McDonald should take a big reason concerning their microenvironment. The company’s international supply as well as the existing exchange rates is merely a part of the overall components needed to guarantee success for the foreign operations of McDonald’s. It is besides obligatory, that the company has been informed on the existing tax requirements needed by the separate governments on which they operate. It basically guarantees smooth operations of McDonald’s privileges. In the same relation the company should consider also a state economic situation on which they influence on. Level at which the economy of special state grows, defines purchasing capacity of consumers in that country. Hence, if the privilege works in the especially economically weak state, then their products should cost above than other existing products in the market, these privileges should take certain regulators to support economy at the expense of manufacture growth

Socio-Cultural factors

Articles about the international strategy of McDonald’s, apparently, function on several areas to guarantee profitable returns for the organization. To illustrate, the organization changes to the best an establishment of positive thinking from their basic consumers. McDonald’s indulges a special variety of consumers with certain types of persons. Also it has been noticed that the company has given the markets, such as the Pakistan, a choice concerning their lunch requirements. Specified that McDonald’s beginnings considerably valued set of meal which offers a reliable degree of quality for the corresponding market where it works. In addition, those who are elderly only below a bracket of thirty five as said are the most frequent consumers of McDonald’s privileges.

Many-sided character of business is reflected now in sharp value of the information about the existing market. This procedure is essentially identified in area as market research. Information concerning the reference and potential areas of the market would double as a barrier to success of

the company if this area of operations neglected. In case of McDonald’s they establish good system in determining of requirements of the market. The company uses concept of consumer individuality of a product of behaviour and decisions on purchase to its advantage. It is said, to have the main influence on understanding of prospective result of the organization in the particular market.

Technological factors

McDonald’s makes a demand for their products. The key tool of the company for marketing is by means of TV advertisings. There are some requirements that McDonald’s is inclined to interest the younger population more. Existence of game stains also toys in the meal offered by the company shows this validity. Other demonstration of such marketing strategy is obvious in advertising they use. They use recovered descriptions of the characters as Grimace and Ham burglar. Other advertising operations employ popular celebrities to promote their products. Similar became endorsees for McDonald’s all over the world “loving’ it” campaign. Besides, operations of McDonald’s have considerably been infused with new technology. Elements as the system of stock and management of the value chain of company’s creation consider easy payments for the suppliers and other sellers with which the person supplies in the corresponding agreement on the markets. Technology integration into operations of McDonald’s tends to increase cost of their products. Basically it is shown in improvements on its chain of creation of value. Improvement of stock system just as its systems of deliveries allows the company to work in the international context.

Legal factors

There was a current roar against the fast food industry. It has forced McDonald’s to apply more close examination on their corporate social responsibility. As a whole it has addressed to requirement of the company to generate its corporate reputation to more positive and the more socially responsible company. The reputation of McDonald’s is obviously a huge

question. Noticed on company’s web site, seems, that they have got steps to take in hand the key social condemnation that they abused them in the last decades. The company gave to their clients the corresponding data in which they need the relation of food essence of their products. This is to attend to the arguments of obesity charged against the products of the company. In the same way consumers have provided freedom in a choice, whether they want to buy the meal.

It is connected with socio-cultural market signs which they influence. For example, operations in predominantly Muslim countries demand, that their meat corresponded to Halal requirements of the law. In the same regard, those that operate in countries in the European Union should correspond to the existing laws forbidding usage of genetically modified meat products in their meal. Other legal concepts as tax obligations, employment standards, and requirements to a degree of quality are only a few of important elements on which the company should consider. Otherwise, smooth operations should be difficult to reach.

Environmental factor

Social responsibility of McDonald’s on the state influences to company operations. They involve charges of harm to environment. Among the reasons why they are accused of such requirements, is that the work of substances is not decomposed by microorganisms for their drinks glasses and treasury of expanded polystyrene for meal.

ANALYSING COMPETITORS

1. Kentucky Fried Chicken (KFC)

Kentucky Fried Chicken, better known as KFC, is the largest chicken restaurant chain worldwide with almost 10,000 outlets located in well over 70 countries. Headed by CEO, David Rodgers, it is part of the Artal Group, which is a large multibillion-dollar food conglomerate.

Said to be the second most famous and largest fast food franchise in the world is No. 1 brand in Asia with market leadership in Japan, China, Malaysia, Indonesia and Korea.

Historical Background Of KFC

In1952 Pete Harman in Salt Lake City becomes the first Kentucky Fried Chicken franchisee. 1982 KFC becomes a subsidiary of R.J.Reynolds Industries when Heublein Inc. is acquired by RJR (now RJR Nabisco, Inc.). 1986 KFC becomes a subsidiary of PepsiCo, Inc. for $840 million. 1993 KFC adds non-fried chicken to menus in the U.S. and Australia. 1994 KFC officially opens its 9,000th restaurant in the world- in Shanghai, China- and announces a $200 million investment over the next four years for 200 restaurants in 48 Chinese cities.

KFC Arrives in Pakistan

In 1998, KFC entered the market under the banner of Artal, a European food conglomerate that has invested heavily in the food sector in Pakistan. This unique step was taken out of special concern for middle and lower-middle class income groups who had so far being neglected by brand name franchises in their areas. Entrance of KFC in food industry has resulted in numerous positive developments in various areas. Each KFC restaurant employs roughly 50 local people, which would total to about 500 direct employees in all – taking in all 10 restaurants in Pakistan.

Future Plans

Artal’s plan including opening a total of 20 outlets by the end of next year, which is expected to increase to 30 by the year 1999, 45 outlets by the year 2000 and 65 outlets by the year 2001 and another 40 outlets by 2003. The first of these outlets was opened in Karachi during its first month attracted an average of 5,000 consumers per day, while the second outlet was opened in the largest amusement park of the city in the month of April. The third one was opened in Lahore in the middle of the year.

2. PIZZA HUT

It was started by two American brothers who were stationed in Italy and while there they got to love Italian cooking particularly pizza. So they setup a small place, but after having put the billboard and having painted the word ‘Pizza’ on it, they ran out of space and all they could add was the Hut. So, we had Pizza Hut and the name just got on and it is now known in 83 countries throughout the world as franchisee.

Pizza Hut’s International History

1958 The first Pizza Hut® restaurant opens in Wichita, Kansas, started by two college-aged brothers who borrowed $600 from their mother. 1965 "Putt-Putt to Pizza Hut" musical jingle developed for Pizza Hut's first television commercial. PRIVATE "TYPE=PICT;ALT=movie reel"1967 a

restaurant was built in five days by franchisees at the Oklahoma State Fair. 1968 International market entered with opening of Pizza Hut restaurant in Canada. Pizza Hut serves a million people a week at its 310 locations.

1971 Pizza Hut became the number one pizza restaurant chain in the world in both sales and number of restaurants. 1976 The 100th international Pizza Hut restaurant is opened in Australia. Pizza Hut opens its 3,000th unit in Arlington, Texas. 1979 Units open in Kuwait and Abu Dhabi.

Two Customer Satisfaction programs initiated: a 1-800 Customer Satisfaction Hotline and a Customer Call-Back Program, which takes the pulse of 50,000 customers per week.

The Deliver Me Home™ program is created by Pizza Hut and the National Center for Missing and Exploited Children and is tested at the Dallas/Fort worth International Airport. 1996 Pizza Hut delivers 30% of the 12 million pizzas delivered on Super Bowl Sunday. On May 30, Pizza Hut introduces two varieties of chicken-topped pizza... Italian Chicken and Chicken Supreme.

Pizza Hut Arrives in Pakistan

1st foreign franchisee came to Pakistan and became regular business in our country. It now has 4 branches in the city, Clifton, Tariq Road, I. I. Chundrigar Road, and Gulshan, and 2 in Lahore, on the Mall, and in Gulberg. But be it Karachi or Lahore two cities with distinctively different vibes, Pizza Hut pizza, tastes just the same, and costs the same too. Manzar Riaz who is one of the three entrepreneurs responsible for bringing Pizza Hut to Pakistan under the banner of MCR (Pvt.) Ltd., comments, “Pakistan has great potential, we have a huge market of young people and our spending power is growing. Now Pizza Hut just took the plunge and others got on to the bandwagon.

Future Plans

Pizza Hut plans to have 40 restaurants in Pakistan by year 2003, a significant jump from its 10 restaurants which are currently operating.

3.Hardees

Hardees Pakistan

Islamabad= F-7

Karachi= North Nazimabad

Lahore= DHA, Phase III

Multan= Gulgasht Colony

Faisalabad= At Batala Colony, Faisalabad

Website URL:

http://hardees.com

History in Pakistan

The first Hardee's restaurant in Pakistan opened at M.M. Alam Road, Lahore in 2009. We have since grown to 3 locations with more than 12 Hardee’s restaurants to be developed over the next three years by MDS Foods Pvt. Ltd. coming soon. Hardee's is known for our Hand-Scooped Ice Cream Shakes and charbroiled 100% Beef Thickburgers.

The core strengths of the Hardee’s brand are our premium quality, best-in-class menu, premium service and delivery systems, premium facilities, innovative menu offerings, youthful brand image and edgy, “cut-through”

advertising. Our value proposition for consumers is based on offering authentic, premium quality American Style burgers at a price that consumers are willing to pay for better quality, better service and better hospitality in a premium Quick-Service Restaurant (QSR) environment. We offer “made fresh to order” products, partial table service, all you can drink beverage bar with free, unlimited refills and the best quality products in our segment. At Hardee's, we concentrate on being the best versus being the biggest, delivering premium products and the ultimate dining experience to guests.

Supplying the highest quality food to the customers is a core focus for our brand. Our burgers are made with 100% Pure Beef and are charbroiled, cooked on an open flame, sealing in the flavorful charbroiled tastes and delivering juicier burgers. All products are “made fresh to order” using the highest quality ingredients, delivering the freshest, best tasting products imaginable. That is why Hardee’s is known as the ultimate destination for burger enthusiasts, who crave big, unique, delicious burgers and other sandwiches.

Objectives of McDonalds’

“We are the world’s favorite restaurant because we give customers what they want — great food and great experience.”

Michael Quinlan, Chairman McDonald’s

McDonald's objective is to attain QSCV at all of its restaurants, where:

· Q is Quality

· S is Service

· C is Cleanliness

· V is Value

Quality

Quality standards regarding each and every aspect of food and service is documented, to provide consistency and to achieve the high level of quality at all the McDonald's restaurants.

It is due to documentation that a consumer will get the same taste from a McDonald's whether he is in New York or Moscow or in Lahore.

The raw materials acquired are required to pass a stringent specification test about factors from the freshness to vitamins contained in them. Then there is documented recipe and cooking requirement regarding utensils to temperature.

Service

At McDonald's everyone serves quickly with a smile. There is less than a minute the time the customer orders and the food served to him. If somebody has any problem, it must be sorted before coming to the counter.

It is the McDonald's culture that the customer is doing them a favor by being there and not the staff so he should be received and returned this feeling the same way.

Cleanliness

McDonald's is cleanliness fanatic. There is even a joke that explains McDonald's philosophy that, “If there is the time to lean then there is time to clean.”

The restaurant is thoroughly cleaned and sanitized after the closure, the cooking utensils are disassembled every night for washing and then reassembled, and the floors, washrooms, etc. are cleaned every half hourly during the restaurant timing.

Value

McDonald's also believes in value to the customer, that is, why prices are value oriented as Amin Mohammad Lakhani put it in his word; “… nothing sells forever unless it is value for money.”

McDonald's Franchising

A Franchising Company

McDonald's has always been a franchising Company and has relied on its franchisees to play a major role in its success. McDonald's remains committed to franchising as a predominant way of doing business. Approximately 70% of McDonald's worldwide restaurant businesses are owned and operated by independent businessmen and women, our franchisees.

A Recognized Premier Franchising Company

McDonald's continues to be recognized as a premier franchising company around the world. Perhaps the fact that McDonald's management listens so carefully to its franchisees has something to do with McDonald's being perennially named as Entrepreneur Magazine's number one franchise.

A Partnering Relationship

McDonald’s franchising system is built on the premise that the Corporation can be successful only if our franchisees are successful first. We believe in a partnering relationship with our owner/ operators, suppliers and employees. Success for McDonald's Corporation flows from the success of its business partners.

What McDonald is Looking For?

McDonald’s selection of prospective candidates is based on an assessment of overall business experience and personal qualifications. We look for individuals with good "common business sense", a demonstrated ability to effectively lead and develop people, and a history of previous success in business and life endeavors. A restaurant background is not necessary. We franchise only to individuals, not to corporations, partnerships, or passive investors.

Integrity and the ability to work well within a franchised organization.

v A willingness to personally devote full-time efforts to the day-to-day operations of the McDonald's restaurant.

v A strong and successful background with emphasis on interpersonal skills.

v A strong desire to succeed, work hard and be part of a winning team.

MCDONALD CORPORATE SOCIAL RESPONSIBILITY POLICY.

We take our social responsibilities very seriously. For example, we're always looking for ways to reduce, reuse and recycle in our restaurants and across our whole business.

1. We use low energy LED light bulbs energy saving equipment

2. Recycle used cooking oil into biodiesel to fuel more than half of our delivery trucks.

3. Also recycle the cardboard boxes used in more than 89% of our restaurants, and more than 85% of our packaging is made from renewable resources

4. Promote clean and healthy environment.

5. Import halal food.

6. Help in fund raising for different NGO’s and charity causes.

Swot Analysis

On the basis of environmental analysis of McDonald's, the structural analysis of fast food industry, and the assessment of internal resources of the company, following strengths, weaknesses, opportunities and threats are there for McDonald's:

Strengths of McDonald’s

Taking into consideration that McDonald’s is a global company, working its capital in many countries worldwide and known for almost all people in the world, we can point out such strengths of this franchise:

McDonald’s is a strong competitor for all sit-down restaurants because of its size, worldwide extent and famousness.
„McDonald’s is the market leader in both the domestic and international markets”
The size of McDonald’s, as it was mentioned before, is enormous and it has an advantage of economies of scale, which is crucial for every business.
Diversifying business worldwide in various countries let to reduce or at least to verify the risk of business and find best advantages of different countries economies.
McDonald’s also takes an advantage of a long-term economic growth as an international company.
It is also known that McDonald’s has a strong real estate portfolio, which is also considered as strength of a company.
“The company’s outlets are located in areas that are highly known for visibility, traffic volume and ease of access.”
The brand of McDonald’s is easy recognised among competitors and is very strong.
“Through aggressive market planning, MacDonald’s has been able to recapture its youth market once again.”
Strongest International Presence in 120 Countries
Leader in Quick Service as Food Industry World’s Largest Burger Chain Over 30,000 Stores, $41 billion in sales
Easily Recognizable Product Big-Mac as Trademark

Weaknesses of McDonald’s

Even though McDonald’s has a huge extent in the world, has a strong strategy, well known brand and feels comfortable in a market, however, as all business it faces some difficulties or some threats and as all business has some internal weaknesses, which actually cannot be always visual for individual eyes, but can be identified only by professional economists. The summary of McDonald’s weaknesses might be:

“Looming market saturation which can lead to difficulties in advertising new products.
Fast growing and competitive market. That makes company to face income problems.
Income problems and huge competition do not let the range of production rise into value ones but makes to diversify a range of cheap and quickly made ones.
McDonald’s is also a low innovative company. Not attentive to customer’s needs
No Flexible Timings for employees in Time Working hours and environment.
Failed of healthy menu/low fat products.
High Employee Turnover Nature of Industry at 300%

In more simple view the McDonald’s might have weaknesses because of huge competition in fast food industry. Nevertheless, fast food industry is not a respected industry in most of nowadays point of view because of rising number of various diseases caused by fast, unhealthy food. Moreover, McDonald’s food might seem more unhealthy and fatty food, rather than delicious. And there the price seemed as low doesn’t help in case of quality of food.

Opportunities

· McDonald’s is a huge industry of franchise companies all over the world.

· It is diversified almost in all countries of the world and has a huge power in the market because of it’s responsiveness to customers and substantial quality of a product.

· As it is the only one brand in this company, it serves actually many segments of the customers.

· The product diversity is quite high and serves the widest segments of a society.

· The product diversifies not only for different groups of customers with different tastes and needs but also for different groups of customers in different countries. This makes segmentation more complex, as a matrix and contributes to business huge successes.

· Over the years of operation this company has achieved its recognition and name and is a strong outstanding company from its competitors. “The business is ranked number one in Fortune Magazine's 2008 list of most admired food service companies.

· Marketing efforts in McDonald’s Corporation is huge. From advertisements, which includes television, audiovisual, posters and other, also includes sponsorships of famous events, such as Olympic.

· McDonald’s is a community oriented, socially responsible company. They run Ronald McDonald House facilities, which provide room and board, food and sibling support at a cost of only $10 a day for families with children needing extensive hospital care

· The new segment of a customer has been found recently, when the boom of healthy food came into society, people became more aware of unhealthy fast food, which McDonalds is serving. So its production of “McFeast” of whole bread burgers attracted more people with different tastes and lifestyle, not as fast food eaters.

· The first opportunity that can be realized in this company is new segments identification. Of course there are no limits in business to expand and there is no business that could survive without any

growth or promotion. It is a very good opportunity to define some new needs or tastes of customers, despite all those diet cokes or healthy bread burgers that McDonalds already included, there are so many other different needs that people have.

· The other more specific opportunity for McDonalds would be new technology adoption. Not talking about those new high technology cash-registers that are based on computer programs, McDonalds could include new technological ways in product making, that could make the process itself more fast or special products more tasty and with higher quality (like for example ice-cream or fresh juice machines).

· The internal strategy improvement has never gone to bad. As McDonalds already has a good strategy and employees training and promotion, it can make it more efficient and more productive by applying some new ways of motivation or work organization. As the food is made in lines, it can be somehow more diversified to achieve the more efficient operation.

· „Provide optional allergen free food items, such as gluten free and peanut free.That would be a great success of concentration to people, who have serious health problems and have to avoid fast food.

· Also McDonalds could consider new brands development. As it is a franchise, it doesn’t mean that it hasn’t opportunity of brands extent. It could make another niche where it would sell some other kind of products, like chocolate bars or other kind of sweats.

This shows that McDonald’s tries to achieve every spot of attention, what makes this business more successful.

Threats

Their test marketing for pizza failed to yield a substantial product. Leaving them much less able to compete with fast food pizza chains.
High employee turnover in their restaurants leads to more money being spent on training.
They have yet to capitalize on the trend towards organic foods.
McDonald's have problems with fluctuations in operating and net profits which ultimately impact investor relations. Operating profit was $3,984 million (2005) $4,433 million (2006) and $3,879 million (2007). Net profits were $2,602 million (2005), $3,544 million (2006) and $2,395 million (2007).

The industry of fast food restaurants is huge and so do the competition in it. Some companies get old and boring in time and so can happen to McDonalds if it won’t get adapt to new changes in trends and lifestyles. “Major competitors, like Hardees, pizza hut, KFC and any mid-range sit-down restaurants.
Another huge threat is the threat of human health deterioration. The industry of fat food is huge in the world and especially in most developed countries. People become more aware of unhealthy additives and processed foods that are included in McDonald’s food production. Also the extreme rate of fat people in some countries can raise some disciplines in fast food making or prevent it at all.
Another threat of going into franchising is reputation. It is essential to maintain a good reputation of your name; otherwise no one will buy your franchise.

Pest analysis

Pestle is an analysis of the external macro and micro environment in which a business operates. Pestle stands for political, economical, social, technological, environmental and legal factors.

Political environment

In general terms the government policies do not affect the company much nor do the changes in the government influence the organization of the company. Mostly what company obligation to the government is the paying of different taxes which include payroll taxes and business taxes? McDonald’s enjoys an added advantage in countries where consumer protection laws are not very strong. In countries like US, where the consumer protection laws are very strong, there are great costs associated with a breach in quality or service in the form of litigations and lawsuits.

Economical Environment:

There are many factors which can affect the operation of a company. In Pakistan McDonalds offer the food at higher rates in comparison to the local food restaurants. Most of the people in Pakistan fall in the category of middle class and it is not affordable for them to have McDonalds at regular basis. Due to layoffs and other economic downturn of the current recession period the profits of McDonalds might have dwindles people consider it as a luxury to go and eat out at some foreign QSR.

Social Environment:

When McDonalds entered the Pakistani market people were not very much into fast food eating style but now the business has been influenced by the changes made in the society especially changes in the eating habits among young people who helped in the acceptance of the fast food idea but also the rapid change of way of life which is very quick now as everyday people

are running out of time, QSR is the way out for them. This in turn has helped the company to grow and to increase its profits. As McDonalds offer Hilal food majorly so there are no religious, ethical or cultural issues associated with the operations. A negative aspect of a social factor happening in Pakistan is sometimes the fact that many times anti Americans feelings rising for different reasons may a lot or a little affect the company by boycotting Americans goods. For the rising importance of corporate social responsibility recently McDonald's has announced that it is giving further backing to Rainforest Alliance certification by offering a cup of tea with a conscience in all of its 1,200 restaurants in the UK.

Technological Environment:

Pakistan is a developing country and new technology gadgets and techniques are always welcomed. McDonalds’s introduced new food production techniques in Pakistan which were later adopted by the local QSRs. Food made with the help of machines is considered more hygienic. However, the continuous developments in the technology sector needs McDonalds to be updated regularly but as in Pakistan food making technology is still in the development stage so McDonalds has an edge over others in this regard. It is natural that technology has helped McDonald and especially its employees as they have to serve quick services. Computers and smart cashiers are used by theemployees so they would not get confused and they are provided with customized database management system.

Financial analysis

6 year summary

Five year total return

Goodwill

Consolidated balance sheet

2012 highlights

McDonalds CSR

Our community

1.Beautification Green Park in Islamabad: A lush green park located in the beautiful F-9 Sector in Islamabad has been designed and developed and is maintained by McDonald’s. Covering an area of about 5 acres, the park was inaugurated in 2006. It serves as a favourite relaxation and recreation spot for residents of the capital city, who visit it regularly for jogging and sightseeing, while kids have a great time on the swings.

Lahore: McDonald’s has developed and maintains Defence Recreational Park in DHA, Lahore, making it one of the city’s most popular and attractively landscaped parks.

Karachi: McDonald’s, along with Defence Housing Authority, has adopted the park around Corniche,

Seaview. Its maintenance and beautification is done by McDonald’s as a social responsibility and community service. A beautiful addition to the Clifton beach, it has become a recreational facility and an option for people who don’t want to go out on the sand.

Litter Patrol A McDonald’s litter patrol has been set up for picking up litter around the neighbourhood for the education of the locality in maintaining environmental cleanliness.

Beach Cleaning The Marine environment is not taken seriously in our society. McDonald’s has taken steps to create awareness about this environment, especially among kids, with regular visits to the beach where they clean it with their own hands.

Walk for Cruelty against Animals Walks are organized for Cruelty against Animals. Kids are made aware of the existing treatment of animals in our society, and a humane way to treat them.

World Children’s Day November 20th, better known as World Children’s Day, is an international occasion held to celebrate children, their uniqueness and innocence and create awareness about the problems that

children face around the world. McDonald’s celebrates this day in full spirit with the intention of collecting funds for child welfare projects. In line with the initiative, various activities are planned every year and the funds collected are donated to charity. In Karachi, the funds go to helping the mentally challenged children of Dar-ul-Sukoon, while in Lahore donations are made to the Chaman House.

Support for Thalassaemia Society Pakistan In keeping with its commitment to support charitable causes, McDonald’s participated in Thalassaemia Society Pakistan’s brave mission by providing them with support and encouragement on their unique walk to the base camp of the K2 mountain range. The walk included volunteers and supporters determined to conquer terrain running from the Karakoram Highway all the way to the base camp of the mighty K2.

Chaman House McDonald’s commitment to serving the community is evident with Chaman House, a project which is part of Chaman Treatment, Training and Rehabilitation Centre for Special Children which McDonald’s has funded. This 16-bed hostel is fully furnished and equipped with the latest amenities, including a wall-to-wall carpeted TV lounge and common room. With this project, McDonald’s hopes to continue bringing smiles to many young faces and provide the best care and comfort to those children who need it the most.Cheque presented to Chaman House as part of Ramadan Charity Program, 2007. This was a part of regular support extended to Chaman House.

Transportation for Rising Sun School McDonald’s Pakistan has gifted a 10-seater van to the Rising Sun School for blind learners. The van was donated as part of continuous support to various children’s charities around the country.

A Home for SOS Village McDonald’s Lahore announced a donation of Rs 1 million for a new house in SOS Children’s Village, Lahore. A McDonald’s Food Charity event at SOS Children’s Village. Supporting Innovative Education McDonald’s made donations to the computer education department of Jinnah Foundation School in Model Town, Lahore

Dar-ul-Sukoon Dar-ul-Sukoon is the largest charitable organization in Karachi, dedicated solely to the welfare and rehabilitation of special children. McDonald’s, as part of its on-going commitment to work for the betterment of children worldwide, supports Dar- ul-Sukoon, not only through its fund-raising efforts on the World Children’s Day, but throughout the year as well.

Millennium Dreamers Award To commemorate the new millennium and recognize the contributions of youngsters to their communities, McDonald’s announced the Millennium Dreamers Awards Program in association with Walt Disney and UNESCO on a global basis. Under the program, 2,000 children were selected to represent their countries at the Global Children’s Summit held at the Walt Disney World Resort in Orlando, Florida, USA, from May 8 to 10, 2000.

Annual Wheelchair Race McDonald’s sponsors the Annual Wheelchair Race for Handicapped Children to mark the International Handicapped Day and distributes free burgers, drinks and gifts to all contestants. McDonald’s holds Marathon for Disabled Persons

McDonalds sponsored the first ‘Handi Marathon’ in Islamabad to celebrate the International Day of Persons with Disabilities, on December 3, 2008. It was organized by Payam Foundation in collaboration with the Islamabad Traffic Police.

Disabled persons from across the country, especially those from the earthquake-affected areas, participated in the 1,500 meter wheelchair race. Students and people from all walks of life from Islamabad and Rawalpindi had assembled in large numbers to cheer the racers who competed with great enthusiasm and were in high spirits. Various dignitaries, including Senator Muhammad Talha Mehmood, MNA Anjum Aqeel Khan, National Highways and Motorway Police Chief Raffat Pasha, AIG Dr. Sultan Azam and Islamabad Traffic Police Chief, SSP Zubair Hashmi, also witnessed the event and appreciated the efforts of McDonald’s in making the event possible.

Orphanage Parties The less fortunate are not forgotten at McDonald’s. It is customary to open a new McDonald’s restaurant anywhere in the world with an orphanage house party. For McDonald’s, joy and community service work hand in hand.

Hospital Help Helping others has always been part of the McDonald’s corporate policy. McDonald’s has donated funds to both the Aga Khan Hospital and Al-Shifa Hospital for financial assistance of Lahore-based patients.

Support for Roshni Homes Trust There are at present 18 million children in Pakistan who do not have the means to afford a school education. McDonald’s has extended its support to Roshni Homes Trust by joining hands with its Kifalat Program for education of orphan children as a part of its CSR initiative.

Under the program, McDonald’s is facilitating its customers to donate cash to the Kifalat Program through all its restaurants in Pakistan. Support can be extended to an orphan child’s education with as little as Rs.10. For its part, McDonald’s has contributed Rs. one million to support the program.

Roshni Homes Trust is a private charitable organization run by a board of trustees based in Gujranwala. It supports orphan and abandoned children by providing them with good quality education and an opportunity to develop values of caring, sharing and being responsible citizens. World Aids Day

McDonald’s & Savior Faire have together been spreading the Aids awareness in Pakistan for the past three years. World AIDS day was observed at McDonald’s restaurants last year too, banners & posters were displayed and our crew also tied red ribbons on their uniforms to support the cause.

Inside McDonalds Factory

We all have eaten many a times various products on the menu of McDonald. Have you ever wondered how & where McDonald's food is made? We assume it was made in proper conditions & these images just seem to confirm our assumption.

So here the process end when the stores receives the imported products from china.

Human Resource Management

SelectionProcess:

After advertising for the job in the papers or in any other way whenapplications are received, these steps are followed:

1.Screening of Applicants

After building a pool of candidate’s applications, short listing of selective applications is done by the HR manager.

2.Written Test

The reason for the written test is to assess that whether the recruits are ableenough to fulfill the general practical requirements of the job. The HR department designs and conducts the tests as and when hiring needs arises.

3.Initial Interview

The ONE to ONE structured interviews are conducted by RestaurantManager after the written test.

4.Aptitude Tests

These are those tests, which are done for the training managers.

5.Reference Checks

They are to make sure that references provided by the candidates are valid sothat no confusion remains.

6.Final Interview

Candidates who give the best results are called for the final interview. A panel of five or six interviewers does interview.

Training inMcDonald’s:

Relocation

After final interview, it is decided which candidates to select for which job to make sure who is the best so that the standard of McDonald’s is maintained.Training and development activities are supplemented with moretraditional education and training courses by HR department,universities and private trainers. As more companies expand their international involvement, experience abroad will becomes an evenmore important development activity. These are concerned withassisting employees to develop up-to-date skills, knowledge andabilities.The employees in McDonald’, are provided with training to achieve.high standards in the organization.The training period for a crewmember is three months and for others it is one month or 10-15 days.

Training involves :

Direct Training

This is that training which is given directly after the selection so that anemployee can understand the position he will be working for and itsresponsibilities.

Training Abroad

Different programs are arranged so that other qualified people can trainemployees at different levels abroad so that they can understanddifferent standards and can improve their own capabilities.

Methods of Training

The different methods of Training used by McDonald’s are :

Orientation

This is a way of direct training which provides new employees with basic background information they need to perform their jobsatisfactorily. New employees get a handbook:-

Working hours

Performance reviews

Vacations

Employee benefits

Personnel policies

Safety measures and regulations

The orientation is performed by the HRD Manager and the employeesare introduced to their supervisors. There is a different orientation process for every type of employee. But the common orientation for allthe employees is

On-the-Job Training

On-the-job training is to train a person to learn a job by actually doing it.Every day, around the world; restaurant members receive on-the-jobtraining and coaching in skills and procedures essential to their work.

Classroom Training

Classroom courses, developed and led by training experts, prepareoutstanding restaurant employees for advancement

Computer-Based Training:

A new computer-based training system is bringing interactive learningexperiences to crew members and managers right in the restaurants. There are two levels of training at McDonald’s:

Crew Member’s Training:

At McDonald's, training never stops. Crew members are trainedextensively on all food safety and food handling processes. Traineeswork while they learn the operational skills necessary for running eachof the 25 positions in restaurant - from front counter to the grill area.

Manager’s Training:

McDonald's is dedicated to professional training and development. Theaverage McDonald's restaurant manager spends more than 2,000 hoursover four years in training of one kind or another. This is about the sameamount of time that a typical four-year college student spends in theclassroom.

Courses At McDonalds’

1.Floor Management Course (FMC):

The FMC is geared towards improving the trainee's ability to deliver Q,S,C & V as a Floor Manager.

2.Management Development Program (MDP):

The MDP series is designed to help you become the most effectivemanager that you can be.

3.Operations Consultant Course (OCC)

4.Training Consultant Course (TCC).

McDonalds’ Performance Appraisals

Levels of PerformanceAppraisals:

It is a process by which the performance of an employee is evaluated.McDonald’s conducts performance review semi-annually. Somestandards are made and defined according to which the employees haveto perform. Then after 6 months all the employees are evaluated thatwhether they come up to our standards or not.

AnOJE(onjobevaluation) is performed in order to evaluate the employees. If anemployee does not perform well then feedback is provided to them sothey can improve.

The appraisal process in McDonald’s includes PA forms for every particular job which involves:

1.International McDonald‘s standards.

2.Assessing the employees’ actual performance relative to thesestandards.

3.Providing feedback to the employees.

There are four levels to evaluate the performance of employees:

•Out Standing

•Excellent

•Good

•Need Improvement

After giving the total grade to the employee the appraiser writes downabout the strength and the areas needing improvement of the employee.

Incentives from McDonalds’

Types of Incentives

Performance-based pay approach that is designed to increase output, based on the performance of individuals or groups. Incentives inMcDonald’s are given to employees on basis of performance.

1.Cash Based

2.Non Cash Based

Cash Based Incentives

•Attendance Allowance• Annual Allowance• Medical Allowance• Hard Soft Furnishing [HSF]:Once in every year certain categories of employees can furnish their houses with thecarpet, furniture, curtains etc at the McDonald’sexpense.• Leave Fair Assistance [LFA]:Once in two year managerial level employees areallowed to choose any area for tourism inPakistan with family for 10 days.

Non Cash Based Incentives

•Crew of the Year • Crew of the Month• Branch of the Year • Access to gift certificates• Merchandise• Free food.

Benefits

When employee joins the McDonald's management team, he willreceive the following:

Profit Sharing:

Fully funded by McDonald's. Share in the profits of the most successfulquick service restaurant in the world.

Vacation:

Increased vacation time per years of service.

Leaves:

McDonald's employees can also apply and obtain a leave of up to twomonths for personal reasons or to study for examinations or school projects.

Company Car:

Restaurant managers are eligible for a company vehicle after only threeyears of service.

Educational Assistance:

McDonald's offers an educational assistance program for its employees.

Social Activities:

Enjoy a variety of activities with his team which could include anannual Convention, summer picnic or outing, Eid Party etc.

Uniform:

All the employees accept those working in the offices are givenuniforms.

Flexible hours:

The restaurant opens for business 18 hours a day and that means work atMcDonald's can fit into anyone's schedule. Schoolwork, family or personal activities can be scheduled around working hours.

Conclusion

The operative philosophy of the McDonald's system is based on the Quality,Service, Cleaning and Value for 44 years. The company offers a standardmenu, although it develops in each culture special products that are adjustedto the pleasure of the community. McDonald's is successful because it has asystem of corporate norms and individual opportunities, to all the Franchisesthey are integrated in the same philosophy of values and clear expectations.McDonald's guides all the actions according :

•to organizational values as working in team,

•to feel passion for the work always offering the best of themselves,

•to be committed with the partners and with the mission of thecompany,

•to be entire in each one of the actions, to be leaders.

•McDonald's also provide employee recognition awards such as employee of the month, quarter and year in many restaurants.

McDonald’s understands the value of both its employees and its customers. It understands the fact that a happy employee can serve well and result in a happy customer. During the Service Delivery Process, each moment of interaction between the firm and the customer, called “Moments of Truth”, helps understand the opportunities that a firm has to win or lose the customer. Managing these “moments of truth” is a great challenge in Service Marketing especially due to customer’s involvement as a co-producer of services (e.g. McDonald’s self-service concept where in the customer not only collects the order but also cleans the table after consuming the food). However, McDonald's has been able to create a great experience for its customers by understanding the nature of the entire Service Delivery Process and the various stages in the process that are exposed to the customers. So its Culture give flexibility, opportunity, equality and diversity to his employees. McDonald's is successful because it has a system of corporate norms and individual opportunities, to all the Franchises they are integrated in the same philosophy of values and clear expectations.

McDonald’s is a multinational corporation, which is perceived as many different things to different people. Some people see McDonald’s as a decent, fast and inexpensive meal. Others may view the company chain as a low quality restaurant that employs uneducated and unskilled people. Nevertheless, McDonald’s has a cheery corporate image that prides itself on quality and cleanliness, as well as good food and good service. The company employs state-of-art technology to help its workers in their tasks and makes the production process faster, attending to the customers in a prompt manner. In terms of leadership, McDonald’s makes a strong corporate effort to develop leaders. There are growth opportunities within the corporation for those who are willing to work hard and develop their leadership skills. There is a great upward mobility for Macdonald’s employees. From what we observed in our field study, the work culture displayed in the McDonald’s stores is aligned with the firm’s corporate values.

McDonald’s has remained one of the standout fast food restaurants in Australia and globally, despite a crowded field of tough competition. The owners and management have stayed true to the restaurant’s original menu, even though there have been additions from time-to-time. With the strength of its marketing and advertising, and an array of possibilities with improvements and developments, McDonald’s knows it must be the same yet change when need be to keep not only its customers, visitors and the general public happy, but also its management and staff. It is the external activities of McDonald’s, such as its sales and marketing and community involvement, that have made the restaurant, not just its great food, and the company needs to continue, build on and further this.

McDonald's promote their food as 'nutritious', but the reality is that it is junk food - high in fat, sugar and salt, and low in fibre and vitamins. A diet of this type is linked with a greater risk of heart disease, cancer, diabetes and other diseases. Their food also contains many chemical additives, some of which may cause ill-health, and hyperactivity in children. Don't forget too that meat is the cause of the majority of food poisoning incidents. In 1991 McDonald's were responsible for an outbreak of food poisoning in the UK, in which people suffered serious kidney failure. With modern intensive

farming methods, other diseases - linked to chemical residues or unnatural practices - have become a danger to people too.

SUGGESTION FOR IMPROVEMENTS:

1. Teach the food handlers how to use sanitary gloves to protect the health of customers.

2. Although McDonald’s spent years developing its new cooking system, consumers continue to complaint that the food is not served hot enough. Its staples burgers and fries are widely regarded as the fast foods where temperature is especially critical to good taste.

3. In order to speed service, he says, the stores must be permitted to make some food ahead of time "so that folks can grab it and go."

4. Use healthier food without additives and preservatives.

5. use more fresh fruits and vegetables in your products.

6. Reduce salt in fries; use healthier oils to fry foods.

7. Offer other beverage choices than Coca Cola; which is essentially Sugar water spiked with phosphoric acid and Cocaine extract. Fresh squeezed fruit juices would be a healthy alternative to sugary carbonated soft drinks.

8. Make sure that delivery of food items is made within 60 seconds as per your aims.

9. Customers should not wait too much that he may get annoyed

10. Manager of the branch should also visit the branch at any time.so that employees have some threat.

11. Provision for part-time employees in the branch.

12. There should be more than one feedback session for improvement of performance of employees.

My Own Views

Wednesday 27 May 2015

Marketing Research project on McDonalds

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