Origin and History

Ray Kroc was the founder of McDonald's Corporation.

Back in 1954 as a 5!"year"old sales#an Ray Kroc was an e$clusi%e distri&utor for
'Multi#i$er' #ilkshake #achines when he ca#e across the s#all ha#&ur(er stand of
Dick and Mac McDonald in )an Bernardino California. *e took one look at the rapidly
#o%in( line of custo#ers &uyin( &a(s of ha#&ur(ers and +rench fries and thou(ht ',his
will (o anyplace. -nyplace.'
-fter the McDonald &rothers e$plained that they didn't ha%e the personal desire to
o%ersee the e$pansion of their concept across the nation Ray Kroc &eca#e their
e$clusi%e franchisin( a(ent for the entire country. - (reat sales#an had disco%ered his
ulti#ate product. Kroc for#ed the new franchisin( co#pany on March ! 1955 under the
na#e of McDonald's )yste# /nc. ,his was the start of McDonald's as we know it today.
By the mid-1950s, their little hamburger factory enjoyed annual revenues of $350,000
almost double the volume of their previous drive-in business at the same location. It was
not unusual for 150 customers to crowd around the tiny hamburger stand during peak
periods. Word of their success spread quickly, and a cover article on their operations in
AmericanRestaurant Magazine in 1952 prompted as many as 300 inquiries a month from
around the country. Their first franchisee was Neil Fox, and the brothers decided that his
drive-in in Phoenix, Arizona would be the prototype for the chain they envisioned. The
resulting red-and-white tile building with a slanting roof and the Golden Arches on the
sides &eca#e the #odel for the first wa%e of McDonald0s restaurants to hit the country
and an endurin( sy#&ol of the industry.
/n 1911 Kroc &ou(ht out the McDonald &rothers. By 1912 McDonalds e$panded its
operations to countries outside the 3.).-. ,his unyieldin( e$pansion led the Corporation
to open !4555 McDonald's restaurants in 115 countries in 1994 producin( 64.4 &n in
annual re%enues. )i#ilarly McDonald's ser%es a&out 17 of the world's population on
any (i%en day throu(h its !4555 restaurants internationally. Bi( Mac the world's #ost
sold ha#&ur(er was de%eloped &y 8i# Delli(utti in 1912 to feed construction workers.
'Bi( Mac' is the &i((est attraction and &ack&one of the corporation. By 1915 there were
#ore than !55 McDonald's outlets across the country a rapid e$pansion fueled &y low
franchisin( fees. Ray Kroc had created one of the #ost co#pellin( &rands of all ti#e. But
he was &arely turnin( a profit. 3lti#ately it was his decision to use real estate as a
financial le%er that #ade McDonald's a %ia&le operation. /n 1951 Kroc set up the
+ranchise Realty Corporation &uyin( up tracts of land and actin( as a landlord to ea(er
franchisees. 9ith this step McDonald's &e(an to (enerate real inco#e and the co#pany
took off. Kroc then introduced national ad%ertisin( pro(ra#s to support the rapidly
proliferatin( franchises and when it appeared that (rowth in the co#pany's ho#e
territory was slowin( in the early 1925s he started an ener(etic and successful push to
#ake McDonald's a (lo&al presence. ,hrou(hout the co#pany's spectacular (rowth Kroc
#aintained a delicate &alancin( act i#posin( ri(orous syste#"wide standards while
encoura(in( an entrepreneurial spirit that welco#ed ideas fro# all le%els. Many of these
ideas contri&uted to the co#pany's astonishin( success.
/nstead of si#ply supplyin( franchisees with #ilk"shake for#ula and ice crea# Kroc
wanted to sell his new partners an operatin( syste#. /n other words he &randed a ser%ice.
-nd this was the re%olutionary #eans McDonald's would use to create a chain in which a
store in Delaware and a store in :e%ada could ser%e &ur(ers of the e$act sa#e si;e and
<uality each containin( the sa#e nu#&er of pickle slices and topped with the sa#e"si;e
dollops of #ustard and ketchup each arrayed on si#ilar tray alon(side potatoes deep"
fried for the e$act sa#e len(th of ti#e. -s Kroc recalled '=erfection is %ery difficult to
achie%e and perfection was what / wanted in McDonald's. >%erythin( else was secondary
for #e.' But the e$actin( de#ands ser%ed a strate(ic (oal. '?ur ai# of course was to
insure repeat &usiness &ased on the syste#'s reputation rather than on the <uality of a
sin(le store or operator' Kroc said.
McDonald's has co#e a lon( way e%er since its &e(innin( in 1955. *ere are a few #ilestones of the
McDonald's @ourney ...

1955
Ray Kroc opens his first restaurant in Des
=laines /llinois and the McDonald's
Corporation is created.
1957 Auality )er%ice Cleanliness and Balue
CA)CD BE &eco#es the co#pany #otto.
1959 ,he 155th McDonald's opens in Chica(o.
1961 *a#&ur(er 3ni%ersity opens in >lk Fro%e
near Chica(o.
1963 ?ne &illion ha#&ur(ers sold.
Ronald McDonald #akes his de&ut.
1964 +ilet"?"+ish sandwich is introduced.
1965 McDonald's Corporation (oes pu&lic.
1967 ,he first restaurants outside of the 3)-
open in Canada and =uerto Rico.
1968 ,he Bi( Mac is introduced.
,he 1555th restaurant opens in Des =laines
/llinois.
1972 - new McDonald's restaurant opens e%ery
day.
,he Auarter =ounder is introduced.
1973 >(( McMuffin is introduced.
1974 ,he first Ronald McDonald *ouse opens in
=hiladelphia.
,he *appy Meal is launched.
1983
Chicken Mc:u((ets is introduced.
:ew *a#&ur(er 3ni%ersity ca#pus opens
in ?ak Brook /llinois. )et in G5 wooded
acres. ,rainin( is pro%ided for e%ery le%el of
McDonald's #ana(e#ent worldwide.
1984 55 &illionth ha#&ur(er sold.
Ronald McDonald Children's Charities is
founded in Ray Kroc0s #e#ory to raise
funds in support of child welfare.
1989 McDonald's is listed on the +rankfurt
Munich =aris and ,okyo stock e$chan(es.
1990 McDonald's opens in =ushkin )<uare and
Forky )treet Moscow.
1993 ,he first McDonald's at sea opens a&oard
the )il@a >uropa the world's lar(est ferry
sailin( &etween )tockhol# and *elsinki.
1994 Restaurants open in Bahrain Bul(aria
>(ypt Kuwait Hat%ia ?#an :ew
Caledonia ,rinidad and 3nited -ra&
>#irates &rin(in( the total to o%er 15555
in 29 countries on 1 continents.
1996 McDonald's opens in /ndia I the 95th
country.
McDonald's - A Global Phenomenon
9hile McDonald0s was astoundin( the e$perts with the rapid (rowth of its ha#&ur(er
chain in the 3nited )tates our co#pany had another &i( surprise &rewin( I international
e$pansion.
,hey opened their first restaurant outside the 3.). in Canada on 8une 1 1912 in
Rich#ond and the race was on. Canada today has #ore than 1455 restaurants.
?ne of the #ost dra#atic e$a#ples ca#e in 8apan where Den +u@ita who owned
an i#port co#pany speciali;in( in hand&a(s shoes and apparel &eca#e
McDonald0s @oint %enture partner in 1921. +u@ita opened his first restaurant on
8uly !5 1921 in a tiny 555"s<uare"foot restaurant in a pri#e location in ,okyo0s
Fin;a shoppin( district I a site that only allowed 49 hours for construction that
nor#ally took three #onths. ?n its first day the restaurant ran( up 64555 in
sales and +u@ita has ne%er looked &ack.
,hey also opened our first restaurants in Fer#any and -ustralia in 1921. ,oday
Fer#any has #ore than 1!55 restaurants and -ustralia has so#e 255
McDonald0s locations.
-fter enterin( +rance and >n(land in the early 1925s McDonald0s today runs
so#e 9G5 restaurants in +rance and #ore than 1!55 restaurants in the 3nited
Kin(do#.
,hese si$ countries I Canada 8apan Fer#any -ustralia +rance and >n(land I are
known as McDonald0s JBi( )i$K &ecause co#&ined they pro%ide a&out G5 percent of
international operatin( inco#e. McDonald0s international operations are playin( an
increasin(ly i#portant role in our co#pany0s results. /n 1995 for e$a#ple 2545
restaurants in G9 countries produced sales of 614 &illion. -fter a few false starts in the
Cari&&ean and the :etherlands I where they tried a #ore
hands"off style and atte#pted to co#pro#ise their #enu for local tastes I their reali;ed
thatwhat had worked so well in the 3.). could tra%el %irtually anywhere. - stron( local
partner fully trained and totally in%ol%ed in the &usiness...the traditional McDonald0s
#enu...and our detailed operatin( procedures for A)CDB were the for#ula for success.
McDonald's operates o%er 45555 restaurants worldwide e#ployin( #ore than 1.5
#illion people./t operates in #ore than 155 countries on si$ continents.
McDonald's opened its doors in /ndia in ?cto&er 1991. ,here are 51 McDonald's
restaurants in /ndia e#ployin( around !555 /ndians. >%er since then our fa#ily
restaurants in Mu#&ai Delhi =une -h#eda&ad Badodara Hudhiana 8aipur :oida
+arida&ad Doraha Manesar and Fur(aon ha%e proceeded to de#onstrate #uch to the
deli(ht of all our custo#ers what the McDonald's e$perience is all a&out.
McDonald0s in /ndia is a 55"55 @oint %enturepartnership &etween McDonald0s
Corporation L3)-M and two /ndian &usiness#en. -#it 8atia0s co#pany *ardcastle
Restaurants =%t. Htd. owns and operates McDonald's restaurants in 9estern /ndia. 9hile
Connau(ht =la;a Restaurants =%t. Htd headed &y Bikra# Bakshi owns and operates the
:orthern operations.-#it 8atia and Bikra# Bakshi are like"#inded %isionaries who share
McDonald's co#plete co##it#ent to Auality )er%ice Cleanliness and Balue CA)CDBE.
*a%in( si(ned their @oint"%enture a(ree#ents with McDonald's in -pril 1995 they
trained e$tensi%ely alon( with their /ndian #ana(e#ent tea# in McDonald's restaurants
in /ndonesia and the 3.).-. &efore openin( the first McDonald0s restaurant in /ndia.
Dynamics
Respect for local culture
McDonald's /ndia has de%eloped a special #enu with %e(etarian selections to suit /ndian
tastes and preferences. McDonald's does not offer any &eef or pork ite#s in /ndia. ?nly
the freshest chicken fish and %e(eta&le products find their way into our /ndian
restaurants./n addition they ha%e re"for#ulated so#e of their products usin( spices
fa%oured &y /ndians. -#on( these are McBe((ieN &ur(er Mc-loo ,ikkiN &ur(er
Be(. =i;;a Mc=uffN and Chicken McFrillN &ur(er. ,hey also created e((less sandwich
sauces for %e(etarian custo#ers. -ll our %e(etarian products are 1557 %e(etarian. >%en
their #ayonnaise was specially de%eloped for /ndian consu#ers and hence does not
contain any e((. -dditionally the soft ser%es too do not contain any e(( and they take
(reat efforts to ensure that our %e(etarian products are kept distinctly fro# our non"
%e(etarian products ri(ht fro# our supplier0s end till they are ser%ed to our custo#ers.
?%er the years McDonalds has adapted itself to the country re<uire#ents and culture and
offered what is e$actly needed &y the respecti%e country. +or e(O McDonalds doesn0t
ser%e water alon( with the food anywhere &ut reali;in( the fact that /ndians are too used
to the a%aila&ility of water in all dinin( places they do ser%e water on de#and. Hikewise
in places like /taly they ser%e wine an so on thus craftin( their policies accordin( to the
respecti%e country.
-lthou(h McDonald's always insisted on plantin( its ri(id operatin( syste# in forei(n
soil when it ca#e to other aspects of the restaurants' operation the co#pany was #ore
fle$i&le. +or e$a#ple to #ake the chain's na#e #ore easily pronouncea&le for 8apanese
consu#ers it was chan(ed to Makudonaldo, and its #ascot &eca#e Donald MacDonald.
*a#&ur(er Central also allowed local operators to de%ise uni<ue pro#otional ca#pai(ns.
'?ur na#e #ay &e -#erican &ut we're all /rish' ran one pro#otional ca#pai(n for
outlets in Du&lin.
,oday e%en the #enus at McDonald's restaurants in forei(n locations clearly reflect
differences that do not e$ist at the co#pany's -#erican outlets. 9hile the stores offer
fare like ha#&ur(ers french fries and #ilk shakes there ha%e &een so#e additionsO for
e$a#ple when McDonald's restaurants opened in Fer#any in the early 1925s they
started ser%in( &eerP in the =hilippines they offer Mc)pa(hetti noodles while :orwe(ian
franchises offer a sal#on fillet sandwich the MacHak.
/nternational standards
McDonald's /ndia's local suppliers pro%ide us with the hi(hest <uality freshest
in(redients. Co#plete adherence to the /ndian Fo%ern#ent re(ulations on food health
and hy(iene is ensured while #aintainin( our own reco(ni;ed international standards.
+ast friendly ser%ice " the hall#ark of McDonald's restaurants the world o%er is the
#antra they a&ide &y. )trin(ent cleanin( standards ensure that all ta&les chairs
hi(hchairs and trays are sanitised se%eral ti#es each hour. )uch #eticulous attention to
cleanliness e$tends &eyond the lo&&y and kitchen to e%en the pa%e#ent and i##ediate
areas outside the restaurant.
)er%in( our custo#ers (reat tastin( hi(h <uality food is our top priority. -ll #enu ite#s
at McDonald's are prepared for our custo#ers under a carefully #onitored process usin(
specialised e<uip#ent.+or e$a#ple they conduct a series of tests and restaurant audits
e%ery day to ensure that the procedures are &ein( followed and our hi(h standards are
&ein( #et.,hey train their crew #e#&ers e$tensi%ely on all food safety and food
handlin( processes. ,rainees work shoulder"to"shoulder with crew trainers while they
learn the operational skills necessary for runnin( each of the !5 positions in our
restaurant I fro# front counter to the (rill area.
)trict procedures are followed not only at the restaurant le%el &ut also at the supplier end.
-ll suppliers adhere to /ndian (o%ern#ent re(ulations on food health and hy(iene while
continuously #aintainin( McDonald's reco(nised standards. -s the in(redients #o%e
fro# far#s to processin( plants to the restaurant McDonald's Auality /nspection
=ro(ra##e CA/=E carries out <uality checks at o%er !5 different points in the Cold Chain
syste#. )ettin( up of the Cold Chain has also ena&led us to cut down on operational
wasta(e.
,rainin(
-t McDonald's trainin( ne%er stops. ,rainin( policies are &ased on the philosophy of our
founder Ray Kroc who &elie%ed that J/f you take care of your people the &usiness takes
care of itselfK.,rainin( is a co#&ination of on"floor and classroo# trainin( pro%ided
throu(h our Hearnin( and De%elop#ent ,ea# with e$posure to the %arious aspects of the
&usiness.Crew#e#&ers are trained e$tensi%ely on all food safety and food handlin(
processes. ?ur trainees work shoulder"to"shoulder with crew trainers while they learn the
operational skills necessary for runnin( the restaurant I fro# the front counter to the (rill
area.
Yese!da", #elson Mandela and $M%& 'oda", Des(n"'s )h(ld and McDonalds...
+ro# =R :ewswire " /n ?ct !554McDonald's announced a #ulti"di#ensional (lo&al
partnership with RDB super (roup Destiny's Child. ,he trio of Beyonce Knowles Kelly
Rowland and Michelle 9illia#s will play an inte(ral role in the McDonald's worldwide
&rand ca#pai(n " 'i'# lo%in' it' " &rin(in( a new e$citin( ener(y and attitude to
McDonald's on(oin( approach of connectin( with custo#ers in fresh rele%ant ways.
'9e're lo%in' the chance to work with McDonald's and know that to(ether we'll create
lots of fun and cool surprises' said Beyonce Knowles foundin( #e#&er of Destiny's
Child. 'McDonald's shares our passion for #usic so we can't wait to start connectin( to
our fans " McDonald's custo#ers " all o%er the world.'
+or s#aller enterprises what can &e learnt fro# McDonaldsQ ,hey sold you three
products with one transaction. ,hey ha%e deli%ered con%enience to the custo#er and
a#on( other thin(s they ha%e created a satisfyin( &rand e$perience.
+ro# a lo(istics point of %iew they ha%e si#plified their orderin( and plannin( process
ena&lin( the# to keep costs down. ,he 'Meal Deal' reduces transaction and lo(istics costs
and stren(thens the &rand franchise " attri&utes worth adoptin( in #ost &usinesses.

Competitive Analysis
%ho a!e he !eal com*e(o!s o+ McDonalds, $-!.e! /(n. and %end"'s o+ co-!se,
b- 0ha abo- P(11a 2-, A!b"'s, Da(!" 3-een, 4-b0a", 5he! hamb-!.e! *laces
a!e d(!ec com*e(o!s and ohe! "*es o+ +oods co-ld be cons(de!ed seconda!"
com*e(o!s&
Burger King
Bur(er Kin( is one of Mcdonalds #a@or co#petitors. Bur(er Kin( is the R! fast food
chain. 9hich fa#ous ite# such as the whopper and whopper @unior. /t has o%er 11555
resturants in e%ery 3) state and 15 countries. ,hey sell o%er 1.2 &illion &ur(ers a year
",he for#er C>? of northwest airlines is now the C>? of Bur(er Kin(

Wendys
9endy's another McDonald's co#petitors. 9endy's is the R4 fast food chain. 9hich is
fa#ous for it founders Da%e ,ho#as. 9ho can &e seen on al#ost e%ery 9endy's
co##ercials in a&out 255 ads o%er a ten year period. ,here are a&out 1555 restaurants
worldwide.9endy's is fa#ous for its frosty and .99 cent %alue ite#s
Bur(er Kin( McDonalds and 9endys""now openly attack one another and #ake e$plicit
co#parisons of co#petin( products.
19G4 e$a#ple of '9here's the Beef' ca#pai(n of 9endys""attacked other ha#&ur(er
chains as ha%in( #uch s#aller ha#&ur(ers.?ne"way to &oost one's own sales was not
@ust throu(h positi%e appeals to own product &ut ne(ati%e attacks on other &rands.
Subway
/n the year !554 the )3B9-ST chain entered its 49
th
year of operation. /t is the
world0s lar(est su&#arine sandwich chain with #ore than !1555 restaurants in 25
countries. -s a #atter of fact the )3B9-ST chain operates #ore units in the 3)
and Canada than McDonald0sT does.
Hardees
*ardee's another of Mcdonalds co#petitors in the fast food industry. *ardee's is
fa#ous for its star &ur(er. ,here are !9555 restaurants in 44 states in the us and 11
countries.


McDonald's has two types of co#petitors in the He&anese #arketO ./ndirect and
Direct /ndirect Co#petitorsO
/ndirect co#petitors O refers to fir#s producin( one or two products that co#pete
with McDonald's products and therefore &e a threat to the co#pany. 9e ha%e
identified four indirect co#petitorsO Henry J. Beans, T.G.I. Friday, K. F. C. and
Popeye's
*enry 8. Beans offers ha#&ur(ers and fries on its #enu therefore co#petin( with
McDonalds for custo#ers of these products. *owe%er *enry 8. Beans also known as
*ank's is a #ore of a &ar restaurant and therefore a han( out place as a result
char(in( #ore #oney for its products. *ank's tar(ets #iddle to upper class
custo#ers so where #ost of these custo#ers o%erlap are in the #iddle class. ,.F./
+riday is another indirect co#petitor reflectin( the sa#e characteristics as *enry 8.
Beans. ?ther indirect co#petitors are K. +. C. and =opeye's &oth co#petin( for the
chicken nu((ets and fries custo#ers. /n &rief *ank's and ,.F./. +riday's co#petes
with McDonald's &y offerin( ha#&ur(ers and fries whereas K. +. C. and =opeye's
co#pete with McDonald's &y offerin( chicken nu((ets and fries.
Direct Co#petitorsO Direct co#petitors refers to fir#s producin( the sa#e
products or ser%ices as McDonald's does. *ere we found that McDonald's has
three direct co#petitors: Burger King, Wendy's and Hardee's as discussed
a&o%e.
Customer Analysis
A 0an (s a des(!e +o! a s*ec(+(c *!od-c o! se!6(ce o sa(s+" he -nde!l"(n. need&
Consider this e$a#pleO
Consu#ers need to eat when they are hun(ry.
9hat they an! to eat and in what kind of en%iron#ent will %ary enor#ously. +or so#e
eatin( at McDonalds satisfies the need to #eet hun(er. +or others a #icrowa%ed ready"
#eal #eets the need. )o#e consu#ers are ne%er satisfied unless their food co#es ser%ed
with a &ottle of fine Chardonnay.Consu#er wants are shaped &y social and cultural
forces the #edia and #arketin( acti%ities of &usinesses.
'h(s leads ono anohe! (m*o!an conce* - ha o+ c-some! demand&
,hus analy;in( custo#ers needs and proper se(#entation and tar(etin( is %ery i#portant
Custo#ers are those who pay #oney to ac<uire an or(ani;ation's (oods or ser%ices. +or
#any years McDonald's #ostly tar(eted the youn( people howe%er this has chan(ed in
this decadeP McDonald's has turned towards a #ore (eneral #arket. By doin( this
McDonald's concentrates on the fa#ily tar(etin( a di%erse #arket which includes
consu#ers ran(in( fro# children to elderly people usin( products such as the 'happy
Meal' for children and '>(( McMuffin' for the elderly. McDonald's also reali;ed the
chan(in( world we li%e in and the need for healthier food since there is an e%er chan(in(
de#o(raphic (roup who de#and fast top <uality food that is low in calories.
McDonald's responded to this opportunity and introduced a new and inno%ati%e product.
,his new product was a re(ular ha#&ur(er that tasted like the real thin( &ut was #ade of
plant #aterial like )oya &eans. ,his sa#e product also tar(ets another de#o(raphic
(roup %e(etarians. McDonald's #ostly uses psy"#ograp#i" se(#entation tar(etin( the
workin( and #iddle classes. ,hese are the people that are #ore suscepti&le to enter a fast
food restaurant since these are the people that lead a fast #o%in( life and thus re<uire a
fast #eal. ,hey #ana(e the &usiness &ased on geograp#i" se(#entsO 3nited )tatesP
>uropeP -siaU=acific the Middle >ast and -frica C-=M>-EP Hatin -#erica and Canada.
/n addition throu(hout this report we present a se(#ent entitled '?ther' that includes
non"McDonald's &rands. ,he 3.). and >urope se(#ents account for appro$i#ately 257
of total re%enues. /n &rief McDonald's custo#ers are of all classes &ut lar(ely workin(
and #iddle classes and people of all a(es.
Sou will see McDonald's ads tar(etin( children senior citi;ens parents with s#all
children sin(le people and so forth. :o one ad%ertise#ent will appeal to e%eryone. /f you
need to reach a nu#&er of audiences desi(n different ad%ertise#ents for each of those
audiences.
?ne possi&le way to reach a wide audience is to create ads that ha%e different #essa(es.
+or e$a#ple McDonalds has $onald M"%onald and Happy Meals for the kids &ut also
tells adults that they '%eser&e a 'reak !oday.' ,his strate(y allows the consu#er not only
to treat the kids &ut also to (i%e hi# or herself a well"deser%ed reward too. /nterestin(ly
happy #eals and toys not only @uice up the kids to &uy McDonalds products &ut also
they #ay entice older people to &rin( in their (randchildren. McDonalds are classin(
their chicken salads %e((ie &ur(ers yo(hurts and lite #uffins as their ran(e of healthier
foods.
,ar(etin( the peckish tra%ellers
MCD?:-HD) the fast food chain that has &eco#e synony#ous with ur&an li%in( is all
set to &reak &oundaries and (o national./t is doin( this throu(h the arteries of the country
V the national hi(hways and e$pressways.
=eckish tra%ellers ;ippin( fro# city to city will no lon(er ha%e to &e content with dha&as
offerin( dal"roti. ,hey can look forward to &itin( into &ur(ers french fries Mc=uffs et
all.
+or hun(ry dri%ers on the run the co#pany pro#ises to deli%er within 15 seconds after
an order is placed. ,heoreticaly one can &e &ack on the hi(hway in @ust two #inutes.
?f course the practical reality is that placin( the order itself could take a little &it #ore
than the said two #inutes. McDonald0s is pro@ectin( an inco#e of 15 to !5 per cent fro#
dri%e"throu(h &usiness on e$pressways in the i##ediate future. ,his is e$pected to (row
to 45 per cent in the ne$t fi%e years.Dri%e throu(h restaurants are only one of the options
to #eet McDonald0s tar(et of G5 restaurants across /ndia &y !554 with an in%est#ent of
Rs G55 crore. /nternationally 45 per cent of the co#pany0s &usiness is fro# e$press
hi(hways.
,he tar(eted #arketin( approach is especially i#portant to the restaurant industry since
knowled(e of the custo#er is %ery low in #ost cases. Custo#er interface plans ha%e &een
put into place with use of #ore electronic kiosks data capture and pay#ent syste#s that
allow the consu#er to do"it"the#sel%es.
McDonald0s has launched kiosks for order entry. ,hey ha%e put credit card swipes in
front of their custo#ers at the dri%e"thru and at the )onic Dri%e"in spots. J,he #o%e#ent
has &een hot for a&out three years with early #o%ers in all of these consu#er facin(
areasK stated Barry )pan(ler a consultant on retail syste#s.
Custo#ers in the spotli(ht
McDonalds has tailor #ade its #enus accordin( to the re<uire#ents of the custo#ers. /n
/ndia there no &eef products a%aila&le. )i#ilarly it has introduced -loo"tikki &ur(ers and
pi;;a #c puffs keepin( in #ind the taste of custo#ers.
Business ?&@ects has &eco#e the sin(le source of infor#ation for McDonald's in the 3K.
Restaurant #ana(ers can now <uickly (et the infor#ation they need and spend #ore ti#e
on the floor with staff and custo#ers helpin( McDonald's to retain its position as the
world's &est <uick ser%ice restaurant.Auality and consistency of product and ser%ice ha%e
underpinned the success of the McDonald's restaurant chain since its inception. ,o
achie%e this consistency the co#pany sets #any Key =erfor#ance /ndicators CK=/sE
&oth <uantitati%e and <ualitati%e to which its restaurants ai# to co#ply.
McDonald's is usin( &usiness intelli(ence fro# Business ?&@ects Can initiati%e known
internally as )>>RE to pro%ide rapid access to this infor#ation to ena&le proacti%e
#ana(e#ent and i#pro%ed &usiness understandin( which will there&y help in ser%in(
custo#ers &etter.
+urther#ore &y pro%idin( restaurants with a fast and easy to use syste# the co#pany's
-ccounts depart#ent has reduced the ti#e spent durin( the #onth"end process &y 555
#an"hours each #onth. /n addition area restaurant #ana(ers now spend less ti#e
collectin( infor#ation and #ore ti#e concentratin( on custo#er ser%ice.,ar(eted
#ana(e#ent has underpinned si(nificant i#pro%e#ents in custo#er contacts.
McDonald's has a (oal of no #ore than two co#plaints per restaurant per #onth. 3sin(
Business ?&@ects to hi(hli(ht pro&le#s early such as staffin( le%els so#e 555 stores
ha%e achie%ed ;ero co#plaints for #ore than two consecuti%e #onths.
,his focus on ser%ice is enhanced &y infor#ation fro# the three 'Mystery )hopper' %isits
to each restaurant #onthly. ,his <ualitati%e infor#ation reported %ia Business ?&@ects
includes a#on(st other criteria whether or not there was a friendly (reetin( whether the
ser%er was wearin( a na#e &ad(e as well as the o%erall cleanliness of the restaurant.
McDonald's %ision for the future is to &e the world's &est fast"food ser%ice co#pany. ,he
(oal is to ser%e hot food <uickly to e%ery custo#er e%ery ti#e.
/t is i#portant to &e particularly adept at reco(ni;in( opportunities of %alue for which
custo#ers are willin( to pay. +or e$a#ple )unny +resh a di%ision of Car(ill /nc.
de%eloped the e(( for the McDonald0s >(( Mc#uffin sandwich &y payin( acute attention
to the custo#er0s needs.Car(ill sells the pasturi;ed food safe e(( patty to the# fresh.
,his reduces la&orious tasksP no #ore crackin( e((s open at McDonalds e%ery #ornin(.
-lso it #ini#i;es possi&le food &orn illness in the e(( sandwich. McDonalds %alues
process opti#i;ation and food safety i#pro%e#ents. Car(ill was rewarded for their
custo#er "focused solution with sole supplier arran(e#ent within the 3nited )tates. ,his
arran(e#ent is #utually &eneficial.
Strengths
=hilosophy
J9e take the &ur(er &usiness #ore seriously than anyone else.' 9hen McDonald's
founder Ray Kroc #ade that #e#ora&le state#ent he was lettin( the world in on the
philosophy and secret &ehind McDonald's pheno#enal success.
?ur %ision to &e /ndia0s '&est' <uick ser%ice restaurant e$perience is supported &y a set of
principles and core %alues
,he principles that (uides McDonaldsW
Auality )er%ice Cleanliness D Balue " /t is an unflinchin( McDonald's ideolo(y
that our custo#ers #ust always (et <uality products ser%ed <uickly and with a
s#ile in a clean and pleasant en%iron#entP and all at a fair price
9e are co##itted to e$ceedin( our custo#ers' e$pectations in e%ery restaurant
e%ery ti#e.
9e ha%e a passion and a responsi&ility for enhancin( and protectin( the
McDonald's &rand.
9e &elie%e in a colla&orati%e #ana(e#ent approach e#ployin( a #utually
respectful &usiness philosophy.
McDonald0s =eople =ro#ise.
%e'!e no 7-s a hamb-!.e! com*an" se!6(n. *eo*le8 0e'!e a *eo*le com*an"
se!6(n. hamb-!.e!s
+or McDonald's to achie%e our (oal of &ein( the world's &est <uick ser%ice restaurant
e$perience we #ust ha%e the &est e$perience for all McDonald's e#ployees. )o we
for#ali;ed our &eliefs into our =eople Bision and our =eople =ro#ise.
?ur =eople =ro#ise is how we re#ind our people what they can e$pect and how hi(h our
(oal isO ,o &e the the &est e#ployer in each co##unity around the world.
McDonald0s Corporate Responsi&ility
-t McDonald0s responsi&ility #eans stri%in( to do what is ri(ht &ein( a (ood nei(h&or
in the co##unity and inte(ratin( social and en%iron#ental priorities into our restaurants
and our relationships with suppliers and &usiness partners. /t also #eans co##unicatin(
a&out our efforts to address social and en%iron#ent issues that #atter to our custo#ers.
Corporate responsi&ility is part of our herita(e datin( &ack to our founder Ray Kroc. /t
is also an inte(ral part of our &usiness strate(y. ?ur custo#ers0 trust is a precious asset
and one we stri%e to preser%e and &uild e%ery day. 9e know we #ust ha%e that trust to
achie%e our %ision of &ein( Jour custo#ers0 fa%orite place and way to eat.K
McDonald0s Di%ersity
McDonald's is the world's co##unity restaurant. 9e are proud of our lon("standin(
co##it#ent to a workforce that is di%erse. 9e &elie%e in de%elopin( and #aintainin( a
di%erse workforce that will stren(then the McDonald's syste#. Di%ersity at McDonald's
is understandin( reco(ni;in( and %aluin( the differences that #ake each person uni<ue.
McDonald's is co##itted to reco(ni;in( the talents and @o& perfor#ance of all
e#ployees and %alues the contri&utions that co#e fro# people with different
&ack(rounds and perspecti%es.
McDonald's has been recognized for its many contributions in the following areas:
,op !5 Co#panies for =eople with Disa&ilities
Best >#ployer for -sians
,op 55 =laces for *ispanic 9o#en to 9ork
+ortune Ma(a;ine " ,op =laces for Minorities to 9ork
9orkin( Mother Ma(a;ine " ,op 15 Di%ersity Cha#pions
*ispanic Ma(a;ine " ,op 55 Corporate 9o#en in -#erica
McDonald0s Balanced acti%e lifestyle initiati%es
McDonald0s cares a&out the well"&ein( issues that are so i#portant to #any of our
custo#ers. 9ith our &alanced acti%e lifestyles initiati%es we are offerin( a %ariety of
hi(h"<uality #enu options pro#otin( physical acti%ity and pro%idin( infor#ation and
education to help our custo#ers around the world #ake s#art choices for the#sel%es and
their fa#ilies.
Mission -nd Bision
'9e ser%e people with (ood <uality food fast and at low cost.' McDonald's %ision is to
do#inate the (lo&al food"ser%ice industry. Flo&al do#inance #eans settin( the
perfor#ance standard for custo#er satisfaction and increases #arket share and
profita&ility throu(h successfully i#ple#entin( our con%enience %alue and e$ecution
strate(ies. ,*>)/) ),-,>M>:,O ,o ha%e a clear picture of McDonald's corporation
we need to look at its ,ask >n%iron#ent which includes itsO Custo#ers Co#petitors
)trate(ic -llies )uppliers Re(ulators.9e shall also e$plore McDonald's 9orkforce
Di%ersity and its ,otal Auality Mana(e#ent.
)trate(ic alliances
McDonald's has for#ed a strate(ic alliance withO 9al#art Che%ron -#oco Disney and
Coca"Cola. 9al#art which is a lar(e shoppin( #all chain in the 3..). and se%eral
nei(h&orin( countries is allied with McDonald's which offers (reat opportunities for
&oth co#panies. McDonald's has restaurants in each 9al#art offerin( its custo#ers
con%eniences and e$cellent fast food at a low cost ease of accessi&ility. McDonald's
corporation descri&es it &est in this scenarioO '/#a(ine a &usy shoppin( day at your local
9al#art and ha%in( the a&ility to sit down with the kids and en@oy #any of our
McDonald's fa%orites like 'Bi( Mac' sandwiches world fa#ous fries and kids fa%orite
'*appy Meal'. McDonald's understands your &usy lifestyles and the de#ands on your
ti#e. ,hat's why we are #akin( it easier for you to do #ore thin(s in less ti#e.'
McDonald's is en(a(ed in an alliance with two petrol co#panies Che%ron and -#oco.
,his alliance represents the ulti#ate in con%enience. -t these locations one finds a full"
#enu McDonald's restaurant with dinin( roo# ser%ice. :othin( can &e #ore con%enient
&ecause one can fill up the car with (as and (et a #eal all in one stop. -nother i#portant
alliance that McDonald's has is with Disney.
,op Auality Mana(e#ent
Auality is the totality of features and characteristics of a product or ser%ice that &ear on
its a&ility to satisfy stated or i#plied needs. +or McDonald's total <uality #ana(e#ent
C,AME in%ol%es that the e#ployees are at work on ti#e are neatly dressed and are clean.
,he e#ployees #ust #ake sure that the custo#ers constantly recei%e safe food which
i#plies that the e#ployees #ust wash their hands often to re#ain clean. Moreo%er the
e#ployees #ust follow certain )tandard ?perational =rocedures so the custo#ers always
recei%e e$ceptional <uality and ser%ice. ,his includes the e#ployees usin( plastic (lo%es
when they prepare the food that the #eat and fries are properly fried and that the
%e(eta&les are thorou(hly washed when used in the food. -nother ,AM is that the
e#ployees rely on tea#work and hi(h ener(y to (et the @o& done so that the custo#ers
do not ha%e to wait lon( for their food. +urther#ore McDonald's #ana(e#ent
e#phasi;es that their restaurants should &e clean.
Areas Where Weaknesses can be transformed
into strengths
*ere are a few points which can &e looked into O
McDonald's recently tried unsuccessfully to introduce us to adult foods with
their (r"# %elu)e sandwich line. ,ryin( to #o%e away fro# what and who you
are is ne%er a (ood idea.
/n the 3) recently McDonalds was sued &y so#e o%erwei(ht teena(ers &ecause
they 'didn'! reali*e !#a! ea!ing e&ery +eal a! M"%onalds +ig#! +ake !#e+ ,a!.'
,heir ar(u#ent was that McDonald's only talks a&out how it's a fun fa#ily place
they ne%er said their food was lethal for the a%era(e heart. ,hus /t should look
into the #atter of #akin( #ore health free ite#s.
-ccordin( to Claire Ba&rowski chief operatin( officer at McDonald's a co##on
co#plaint a#on( McDonald's custo#ers is that !#e ,ood doesn'! !as!e as good as
i! used !o. +urther research re%ealed that custo#ers @ust want food ser%ed hotter.
,he co#pany is now #akin( hotter fresher food ser%ed faster its central focus.
/nstead of co#in( up with new products such as the failed -rch Delu$e or new
in(redients McDonald's now #arkets 'Made for Sou.' ,his #eans freshly
toasted &uns #oist #eat and no #ustard if the Custo#er does not want it.
)ounds si#ple ri(htQ 9ell this is a tre#endous chan(e fro# the lined"up
precooked &ur(ers of McDonald's past.
/n ?cto&er !55! there was #ore contro%ersy a&out !#e oil i! as "ooking ,ren"#
,ries in -M"%'s #ad ,or years said i! as &ege!a'le, 'u! #ad !o dis"lose i! as
ani+al a,!er all./ declinin( custo#er satisfaction scoresP dis(runtled franchiseesP
&efuddle stockholdersP and that's not e%en the half of it. ,hou(h it's still one of
the #ost reco(ni;ed &rands in the world unfortunately what it's reco(ni;ed for is
not e$actly (ood.
9hen it co#es to a #arketin( strate(y M"%onald's sorely needs !o look a! !#e
!arge!ing de"ision. +or far too lon( it has focused pri#arily on super hea%y users
and also followed an occasion"&ased se(#entationCi.e. one se(#ent (oes for a
#eal for the#sel%es one (oes as a special treat one (oes &ecause the kids
&e((ed to (oE. But %irtually e%eryone in the cate(ory focuses on super hea%y
users and as we'%e seen ti#e and ti#e a(ain super hea%y users are often price"
conscious deal"prone and conse<uently disloyal to the &rands they &uy. -nd
occasion"&ased se(#ents are not #utually e$clusi%eVone person (oes &ecause
of the kids on ,uesday &ut after a hard day on ,hursday (oes for a special treat
on the way ho#e fro# workVso it offers little in the way of concrete (uidance
on who# the #ost profita&le custo#ers are and how to #oti%ate the# to &uy.
)enior #ana(e#ent has to reco(ni;e that i(norance is not &lissP there is a serious
ser&i"e pro'le+ at the restaurants that can't &e co%ered up with a coat of paint or
new unifor#s. )uperficially addressin( the pro&le# isn't (oin( to help
perceptions of taste and <uality if ser%ice re#ains poor and the restaurantVin
particular the restroo#sVre#ain cluttered and dirty. Custo#ers won't &e fooled
and they'll wonder why McDonald's @ust doesn't (et it. Mandatin( so#e &asics
like clean restroo#s needs to happen i##ediately and McDonald's can use
infor#ation a&out its #ost profita&le tar(et to &uild a ser%ice or(ani;ation around
#eetin( the needs of these custo#ers #ost efficiently.
-s a restaurant industry analyst for Credit )uisse +irst Boston recently said McDonald's
has 'always looked for the easy answers ne%er #akin( the hard choices.' But if it wants
to restore the (randeur of the Folden -rches McDonald's needs to #ake the hard choice
to stop speculatin( on its future with copy"cat tactics and in%est the ti#e and #oney in
fi$in( what is clearly &roken.
Brand dentification
Brand /dentification is not reser%ed for +ortune 555 co#panies. Re(ardless of the si;e of
your co#pany &uild in &rand identification. ,hat identification &e(ins with a consistent
font a consistent 'look and feel' to your ads. Sou want custo#ers to re#e#&er the na#e
of your co#pany and reco(ni;e the i#a(e anywhere. +or &randin( to work the
identifyin( #arks Clo(os product pictures na#e indi%idual products etcE of the &rand or
product line Cor RealtorTE -:D what the product Cor RealtorTE stands for need to &e
dri%en ho#e si#ultaneously throu(h fre<uency and clarity to the consu#er.
8ust as national &rands use a consistent i#a(e for &rand reco(nition like McDonalds
(olden arches you can use a consistent look to fi$ your &usiness's i#a(e in potential
custo#ers' #inds. ,he si(n on your truck your Sellow =a(es ads &rochures handouts
and other ad%ertisin( should unifor#ly represent your &usiness. you are likely to #ake
#any of the followin( associations with the &rand0s identity syste# O Bi( M lo(oRonald
Bi( Mac Mc na#ed #enu ite#s Red and Sellow...
,he way / descri&e a stron( &rand identity is when a ! year old son says
'MucDonulds Daddy0as they are dri%in( alon(
*e has seen the lar(e yellow M and relates it to McDonalds. ,hrou(h their
ad%ertisin( they ha%e co##unicated the pushed the yellow M so #y son will
re#e#&er it.
-s the ho#e pa(e of Mcdonalds appears we i##ediately understand that we are
in the italian McDonald's we& site &ecause the whole pa(eClike e%ery pa(e of this
we& siteE is co#pletely &ased on the Mcdonald's lo(o and on the colors of the
&randO Red and Sellow
- &i( yellow M is crossed &y two hori;ontal &ars which su&di%ide the space into
so#e na%i(ation Cthe na%i(atorsE and the#atic areasCthe teasers in ho#e pa(e and
the title of the sections in the inner pa(esE.9e i##ediately understand that the
sender is the chain of McDonald's fast food restaurants &ecause of the presence of
the lo(oCthe yellow ME do#inatin( the center of the pa(e and occupyin( the
canonical position Cup to the leftE.
Fraphics is li%ely thanks to the presence of %ery e#otional colours the red and
the yellow of the &rand that are hi(li(hted &y a dark &lue &ack(round and the
choice of i#a(es that are fresh and happy. +urther#ore the we& site faithfully
follows the typical style of the a#erican restaurants co#pany so that it is %ery
i#pro&a&le that the ones who lo%e McDonald's world do not feel at ease in this
en%iro#ent.
:o co##unicati%e Metaphor has &een used. ,he choice of the colors the
notoriety and the predo#inance of the product would ha%e #ade the the use of
any #etaphor superfluous.
McDonald's " 'Hincoln +ry'
,he two co##ercials a&out a (uy who finds fa#e &ecause he found a McDonald's
+rench fry that looked like the head of -&raha# Hincoln were created to (enerate 9e&
site traffic as / understand it. >arly reports su((est that this tactic worked &ut / still don0t
(et it.,here was no appetite appeal. ,he &rand identification was not particularly stron(. /
could not fi(ure out how or why these co##ercials would encoura(e #e to eat at
McDonald's.
Ronald Mcdonald
-part fro# its lo(o another i#portant &rand identifier for
McDonalds is Ronald Mcdonald. /n the 3) after )anta Claus Ronald McDonald of
McDonald0s is a ritual. ,here is a tre#endous cra;e for hi# a#on( kids and youn(sters.
Ronald McDonald *ouse Charaties
,he Ronald McDonald *ouse Charaties helps children and their fa#ilies to co#forta&le
wile the children are challen(ed with #edical ordeals and helps pro%ide (rants for
children in need. ,he RM*C is affiliated with o%er 124 local charaties in 4! countries.
Ronald McDonald house pro%ides a ho#e away fro# ho#e. ,he first house was &uilt in
=hiladelphia in 1924. +red and +ran *ill's dau(hter was under(oin( treat#ent for
leuke#ia . ,he fa#ily (rew tired of eatin( %endin( food and sleepin( in hosptial
&eds+red who was a player for the =hiladelphia. +red was a player with the =hiladelphia
>a(les and (ot his tea##ates and #ana(er to support hi# anlo( with Dr. -udrey >%ans
fro# ,he Children's *ospital fo =hiladelphia and a local McDonald's franchise to &uild
the first Ronald McDonald *ouse. :ow there are !51 houses in 19 countries.
Ronald McDonald D friends
Ronald McDonald has #any friends. -s far as can &e re#e#&ered Ronald #akes friends
e%ery where he (oes. Ronald has kept the sa#e friends o%er a nu#&er of years. :o
#atter how old a person e%eryone has a fa%orite character in McDonald land whether it
&e ,he *a#&ur(ler of the +ry Fuys.,hese na#es are re#e#&ered &y the youn( and old.
McDonald land was a place to (o where you would always ha%e a friend.


,ie"/nsO =artnerships &etween co#panies to cross #arket each others' products.
,hus !cDisney refers to the fact that !cDonalds and Disney ha%e an on(oin(
a(ree#ent where all Disney fil#s auto#atically create toys that are (i%en out with
kids' #eals at !cDonalds and the association &etween the two co#panies and
their products is thus esta&lished. Kids think !cDonalds and Disney in one &reath
which is an add on to the identification of the &rand.
,he Folden -rches are said to &e #ore widely reco(ni;ed than a Christian cross. -ll
thanks to Ronald McDonald.
McDonald's represents capitalistic i#perialis# at its &est pushin( ha#&ur(lars and
cheese&ur(lars into countries where people used to %alue thin(s like kosher products
low"fat foods and %e(etarianis#. -nd the $enopho&ic clown won't &e stopped.
+ro# the product &randin( of the Bi( Mac *appy Meal the Auarter =ounder and #ore
to the corporate &randin( of the Folden -rches and a cheerful carin( Ronald McDonald
the corporation has fashioned a &rand that #eans 'food folks and fun' "" a total &rand
strate(y that supports e%ery aspect of corporate identity.