Contents

McDonald’s..................................................................................................................................... 2
INTRODUCTION TO MCDONALD’S .............................................................................................. 3
MCDONALD’S PAKISTAN: ............................................................................................................. 3
MCDONALD’S FAISALABAD: ........................................................................................................ 4
MCDONALD’S MISSION STATEMENT .......................................................................................... 5
HIERARCHY OF MCDONALDS ...................................................................................................... 5
PLANNING ...................................................................................................................................... 6
ORGANIZING .................................................................................................................................. 6
LEADING ........................................................................................................................................ 7
BENEFITS ....................................................................................................................................... 7
DOCUMENTS .................................................................................................................................. 8
HUMAN RESOURCES DEPARTMENT ........................................................................................... 9
CONTROLS: .................................................................................................................................. 9
EMPLOYEES’ APRAISAL PROCEDURES: ............................................................................... 9
CONTROLS: .................................................................................................................................. 9
FINANCE DEPARTMENT ............................................................................................................ 11
RESPONSIBILITIES OF FINANCE MANAGER: ..................................................................... 11
GOALS TO BE ACHIEVED ....................................................................................................... 11
PRODUCTION DEPARTMENT..................................................................................................... 12
SUPPLY CHAIN DEPARTMENT .................................................................................................. 13
MARKETING DEPARTMENT....................................................................................................... 14
 Product .................................................................................................................................. 15
 Price ...................................................................................................................................... 16
 Place ...................................................................................................................................... 16
 Promotion:............................................................................................................................. 16
PRODUCTS ................................................................................................................................... 16
SERVICES...................................................................................................................................... 17
CONCLUSION ............................................................................................................................... 21
THANK YOU…!.......................................................................................................................... 23

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McDonald’s

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 INTRODUCTION TO MCDONALD’S

MCDONALD'S fast food restaurant is one of the largest franchises in the United
States as well as aboard. Their top menu items include: HAMBURGERS,
CHEESEBURGERS, MCNUGGETS, AND FRENCH FRIES. There are more
than 32,000 McDonald's restaurants serving in 117 countries. More than 75% of
McDonald's restaurants worldwide are owned and operated by independent
owners.
McDonald's has several ethical and social responsibility policies in place
throughout their solely owned and franchised companies. These policies include
placing the customer experience at the core of what they do, committing to their
employees by nurturing their talent and rewarding their achievements, maintaining
high standards regarding the conduct for business, and giving back to the
communities in which they are established. All of these values are infiltrated
through all levels of the company, which keeps McDonald's thriving as a
successful fast food chain restaurant.

MCDONALD’S PAKISTAN:

MCDONALD’S is the largest and best known global food services retailer with
more than 30,000 restaurants in 121 countries. Our 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. We plan to expand our leadership position
through great tasting food, superior service, everyday value and convenience.
MCDONALD’S Pakistan is part of the Lakson Group
of Companies, a leading business house in Pakistan.
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

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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 we opened the doors of our restaurants both in Karachi & Lahore, we
have been proud to provide our customers the same great taste, outstanding value
and superior service that is synonymous with the Golden Arches all over the world.
There are now 27 restaurants in 8 major cities of Pakistan. (11 in Karachi, 1 in
Hyderabad, 10 in Lahore and 1 in Faisalabad, 1 in Kala Shah Kaku, 1 in Sialkot, 1
in Islamabad & 1 in Rawalpindi)
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. So next time you walk into one of our restaurants, please
remember, McDonald’s Pakistan is here now, to put a smile on your face, each and
every time you visit us.
McDonald’s is firmly committed to giving back to the community where it
operates. We are happy to become involved because we recognize that
organizations have a role to play in helping communities to work successfully. The
contribution we enjoy most is the experience of working together with others in the
community to achieve worthwhile benefits for those who need it most.

MCDONALD’S
FAISALABAD:

McDonald’s
Faisalabad is one of
the biggest fast foods
restaurants which
offer the great taste in
the most elegant
environment. People
love to go
McDonald’s with
their families

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especially children. The target market of McDonald’s
Are the families with small children because children love to play. Teenagers love
McDonald’s because it is serving the best quality fast food in Faisalabad.
Moreover, the services of McDonald’s attract the customers and they satisfy their
customer as much as they can and keep trying to maintain their standards.
McDonald’s is famous because of its standards that are very strict. They say that
there is no compromise on standards. Their main focus is their customers and they
are working for 100% CUSTOMER SATISFACTION.
MC DONALD’S is located at 329 & 330 - B, Peoples Colony, Satyana Road,
Faisalabad, Pakistan.

MCDONALD’S MISSION STATEMENT

“McDonald's mission is to be our customers' favorite place and way to eat with
inspired people who delight each customer with unmatched quality, service,
cleanliness and value every time ...we invite you to be the part of this winning team
and give yourself an opportunity to grow with the family of people striving to
create smiles on the faces of millions of people everyday”

HIERARCHY OF MCDONALDS

At McDonald’s Faisalabad on the top there is a BRANCH MANAGER

Branch Manager is followed by an ASSISTANT MANAGER
Then there is a SHIFT MANAGER also called 2ND ASSISTANT MANAGER
Then there is a FLOOR MANAGER who manages these three major areas:
 COUNTER AREA
 PRODUCTION AREA
 SERVICE AREA

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 Crew Members work
under FLOOR
MANAGER.

PLANNING

 What will be the Market

size
 Who the customers will be
 Planning about the strategies to set the level of prices
 The target of one month production and sales is achieved or not
 Plan about training sessions for employees in customer service
 To plan that how the strategies will be implemented to get organizational
goals

ORGANIZING

 Identifying problems and their solutions

 Finding alternatives to solve different problems
 Empower people to make decisions
 Specialization and division of work
 How employees will do the work

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LEADING

 Develop and train the employees

 Develop high performing teams.
 Help teams reach their full potential.
 Achieve high food quality standards.
 Develop an improvement plan

CONTROLLING

 To check whether the resources in the making of burgers are utilized

properly or not
 To divide the resources among all the departments in an appropriate manner.
 To check the complete production process of burgers and other food items
 To check the employees performance
 How we are making efforts to provide a clean and friendly environment
 To control the situation if monthly production decreases
 To check the level of advertising and promotion of McDonald’s
 To control and check the purchase of all necessary equipment including
ovens, stoves, fryers, refrigerators, booth and table seating, cash registers
and fixtures.

BENEFITS

 McDonald’s enable people to consume ready-to-eat, fresh, healthy foods.

 Food served at McDonald’s is within reach. Burgers are available anytime of
the day.
 McDonald’s aim to provide delicious meals so that their customers will keep
on coming back. Their menu satisfy their cravings

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  Customers can save time as there is very low or no waiting time for food to
be served.

“All these benefits can only be provided if McDonald’s make efforts for
customer feedback and take it positively”

DOCUMENTS

 License from Food Ministry

As assigned we made a visit to Mc Donald’s Faisalabad and had meeting with the
MANAGER. It was no doubt an excellent experience and we learned a lot about
their working procedures and internal control system.
Their major departments are:

 HR Department,
 PRODUCTION Department,
 SUPPLY CHAIN Department,
 FINANCE Department,
 MARKETING Department,

So we have visits of these areas and ask the manager different questions according
to our knowledge and got the answers of those questions. First we’ll tell about:

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HUMAN RESOURCES DEPARTMENT

MC DONALD’S is an employee based organization. The selection and training of

employees is very important. There are some controls which are implemented to
make sure that McDonald’s is hiring good Human Resource.

CONTROLS:

 Minimum FA will be the qualification of the employee.

 Employee should know to speak and understand English Language.
 2 Interviews are conducted by the manager
 4 days OJE Own Job Evaluation is conducted. The employees are checked in
the real environment. This is done because the employees have to work in
the real environment.
 The principle of JOB ROTATION is used. The employee’s job is changed
after 1 month if he/she had performed well in the previous job.
 If any crew member want to get transfer in any other franchise that
employee is checked in that environment and if the performance is good
than the manager of the other franchise approved that member, he is shifted
to that franchise.
 Employees are highly valued. That’s why they are not called as Waiters etc.
They are called the CREW MEMBER.

EMPLOYEES’ APRAISAL PROCEDURES:

Customer Service is the main function of McDonald’s. McDonald’s is very keenly

focused on improving their customer service. For this purpose there are some
controls or measures taken by them. The AIM is to PROVIDE BEST SERVICES
TO THE CUSTOMERS.

CONTROLS:
 EMPLOYEE TRAINING SESSIONS: The employee training sessions
held every month. In which the training team from Malaysia give training to

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 the employees and work on polishing their skills or improving their
performance. The Crew Member who performed well in the training session
is also rewarded with MC REWARDS. MC REWARDS are based on the
employees’ performance in the training session. THE MC MONEY is the
prize for the employee.

 STARS ON THE UNIFORM OF THE CREW MEMBERS: There are

stars on the uniform of the crew members. Their performance is checked by
the shift manager the whole month. And after one month, according to the
performance of employee the stars are increased or decreased. The appraisal
system motivates the employees and they give their best in the customer
service. And if an employee is consistently performing well, he/she will be
awarded with some gift like IPod etc.
 SURPRISE VISITS: The boss of the organization can have surprise visit
any time. And the performance of crew members and manager can be
checked.

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FINANCE DEPARTMENT

The finance department is thought to be at the heart of MacDonald’s,

encompassing a variety of functions that go beyond its traditional financial
reporting role.
In finance department:
 A centralized accounting center is responsible for processing all accounts
receivable and payable transactions, banking income, managing working
capital and also for the maintenance of the fixed asset registers.
 The accounting center provides day-to-day support to every McDonald’s
restaurant.
 Treasury and tax experts ensure compliance with tax laws and make sure the
company has sufficient cash flow and appropriate finance in place in order
to meet business requirements.

RESPONSIBILITIES OF FINANCE MANAGER:

 Preparation of financial reports for MacDonald’s

 Monthly sales and general ledger close processes
 Financial presentation and analytical support
 Utilize analytical skills to prepare deliverables as requested by the group and
Finance Management
 Financial risk analysis

GOALS TO BE ACHIEVED

 To create and monitor not only your overall company budget, but a variety
of functional or departmental budgets, as well.
 To ensure to get the best quality at the lowest price for materials.
 Keep an eye on credit use, including interest amount that is being
generating, the scheduling of payments and the status of credit report and
scores.
 Use proactive strategies to lower your tax burden.

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PRODUCTION DEPARTMENT
The Production area is the most important or core department on Mc Donald’s.
The production area where these products are stored, cooked and meal is prepared
are the main areas. The AIM of this area is to provide HYGIENIC AND
QUALITY MEAL TO THE CUSTOMERS TO ACHIEVE THERE
SATISFACTION.
And for this purpose their controls are the following:
1. TEMPRATURE: There are two types of areas where food is stored
for further processing.
*The freezer: There is a room where products are stored and kept
frozen or chilled. The temperature of that room is kept 0 to -10 F.
*The store room for dry items: The temperature where dry or normal
Food items are kept is 60 to 70 F. This temperature is normal room
Temperature.
*The kitchen area: The temperature of this area is kept high to keep
The meal hot till it reaches the customer.
2. ASSEMBLY LINE: The process of making meal is followed in an
assembly line. One person heat the buns, the other put ketchup, mayo,
cabbage etc, the other person place cheese on burger, the next person
put patty on the burger and in this way a burger gets ready.
3. CLEANLINESS: The cleanliness is the major competitive advantage
of Mc Donald’s. The shelves where food is placed and heat up are
cleaned with the special Towels containing a special K chemical (both
things are imported). This process is done exactly after HALF AN
HOUR. This process keeps the place free from BECTERIA.
4. Physical Access: There is the physical access of every employee
related to cooking purpose to the stores.
5. Inventory Check: The initial inventory check is done by the shift
manager along with specialized persons. They check the
manufacturing date of the products and determine the expiry date of
the product on the basis of some special calculations (secret). And
daily the inventory is checked by shift Managers. Inventory theft is
not possible because:

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  There are 16 hidden security cameras.
 Secondly, the uniforms of the crew members are pocket less.
 Moreover the shift manager have physical access to the lockers of drew
members.
6. Fresh food: To keep the standard of the products fresh Mc Donald’s
waste the cooked patties after 20 minutes of their cooking if not
served.

SUPPLY CHAIN DEPARTMENT

Supply chain is a system of organizations, people, technology, activities, information and

resources involved in moving a product or service from supplier to customer. Supply chain
activities transform natural resources, materials and components into a finished product that is
delivered to the end customer.
Mc Donald’s Pakistan import their products from Malaysia, potatoes are
exclusively imported from New Zealand. The products are imported by the plant of
mc Donald’s in Lahore and are stored in a bulk quantity. The required stock is sent
to Faisalabad. The buns are made in Lahore in the private plant. The machines
making drinks, Frying machines and other machinery is imported from Malaysia.
The recipe of food is standardized and could not be changed. Halal food is supplied
in Pakistan.

Supply Chain Management involves the planning and management of all activities involved in
sourcing and procurement, conversion, and all logistics management activities. Importantly, it
also includes coordination and collaboration with channel partners, which can be suppliers,
intermediaries, and customers. Supply Chain Management is an integrating function with
primary responsibility for linking major business functions and business processes within and
across companies into a cohesive and high-performing business model. The orders are
placed as the raw material comes to near finish. McDonalds maintain no
inventory levels for perishable goods.

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MARKETING DEPARTMENT

The marketing department of McDonald’s is well efficient in making the

marketing strategies and implementing them to deliver superior value to its
customers. Infect the people McDonald’s identifies as likely customers are known
as KEY AUDIENCES. McDonald’s Faisalabad focuses a lot on its Customers. It
knows well that “CUSTOMER IS BOSS”. For this purpose, McDonald’s
marketing department adopts the segmentation, targeting and positioning
strategies.
Mcdonald’s uses demographic segmentation strategy with age as the parameter.
The main target segments are children, youth and the young urban family. If they
take children into consideration, children are more attracred towards toys and
delicious meals. Nowadays Mconalds has done partnership with ‘3 Bahadur’. As a
result, McDonald’s has launched the Bahadur Meal, which comes with a Bahadur
branded bag and a sticker sheet. Also a lucky draw will be held, through which
customers can win free ‘3 Bahadur’ movie tickets every day.

Today’s youth prefer such places like Mcdonald’s for their entertainment and the

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urban families select Mcdonald’s on various occasions like birthday party, treat to
their children etc.
The McDonald’s marketing department focuses on the following information:
 Which products are well received
 What prices consumers are willing to pay
 What TV programs, newspapers and advertising consumers read and view

For this McDonald’s marketing department has to do market research. Market

research identifies different types of customers. For example:

For the effective marketing, McDonald’s focuses on 4P’s:

 Product
McDonald’s always tried to provide good quality burgers and fries to satisfy its
customers. While introducing the new deals, it focuses on customer needs, wants
and demand. When that deal is offered to customers, a feedback card is given to
them to give their feedback. In this way, McDonald’s adopts such strategies that
not only increase their profits but also satisfies its Key Audiences.

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  Price
McDonald’s marketing department conducts a research for setting prices.
McDonald’s has certain value pricing and bundling strategies such as happy meal,
combo meal, family meal to increase overall sales of the product.

 Place
McDonald’s marketing department focus on adopting those marketing strategies
that can create competitive advantage against its competitor (Hardees) at Satiyana
road.

 Promotion:
One of the methods employed by McDonald’s is advertising. Advertising is
conducted on TV, social media, using poster sites and in the press for example in
newspapers and magazines.
“The more McDonald’s knows about the people it is serving, the more it is
able to communicate messages which appeal to them.”

PRODUCTS

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  Spicy Chicken Burger with Regular Fries
and Drink
 Value McArabia with Regular Fries and
Drink
 Mini McRoyale with Regular Fries and
Drink
 Mcflurry
And much more!

SERVICES

 THE PLAY AREA:

Mc Donald’s is very famous in children because of its play area. A specific
area is dedicated to children for playing purpose. The area also had some
Safety Controls. The main AIM of this area is to provide safe
PLACE WHERE CHILDREN CAN MAKE FUN.

 MC DELIVERY SERVICE: 1112-44-622 and say I’m Lovin’ it…!

This service is very famous and used by many customers. The customers just
make a call and order his desired meal. The meal is delivered to him at his
home.

 THE DRIVE THRU SERVICE:

The drive through services is a very well known

service. The customers not have to come out of their car. But while driving

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 through a path they are entertained with services. The main AIM of this
service is to SAVE THE TIME of the customers.

STRENGTH

 Largest fast food market share in the world

 Brand recognition
 Partnerships with best brands

WEAKNESS
 Low innovation in products

OPPORTUNITY

 Increasing demand for healthier food

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  Customer loyalty

THREATS

 New competitors
 Negative publicity
 Local fast food restaurant chains

PROBLEMS & THEIR SOLUTIONS

MARKETING PROBLEMS: In little over a decade, the operations in Pakistan

have not been all smooth sailing. The first threat faced by the company was to
convince the public that “HALAL” meat or chicken is used for preparation of
products. Soon after the launch, in 2005, the bird flu had to be combated followed
by,” mad cow” fear. These epidemics effected sales but did not deter the company
to lose heart. Rising raw material cost is difficult to cope up without increasing the
prices but had to be kept compatible with the disposable incomes of the average
customers. There is intense competition from newer formatted chains like
HARDEES, SUBWAY, COFFEE SHOPS and GRILLED OUTLETS, which
are perceived healthier.
HR PROBLEMS: Finding the right human resource compatible with the values of
McDonald was another issue that required adroit handling. The workforce in fast
food the world over is composed of college students of both genders. In Pakistan,
this was not so; but in a short span of time this perception was corrected. Today
most staff comprises of young well-groomed boys and girls who perfectly emulate
a typical McDonald’s employee. In 1990s, waitresses were unheard of in a local
restaurant but the McDonald culture prevailed and educated girls ventured into this
profession without inhibitions. McDonalds requires employees to be always
smiling while interacting with customers. Such a requirement strikes many
employees as artificial. The Company has learnt to encourage managers to probe
employees and assign troubled workers to be in kitchen rather than to the order

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counters. Today McDonalds Pakistan has 1200 employees performing different
functions. With stringent measures on Q.S.C&V and training, McDonalds Pakistan
meets the corporate standards and extends service to customers with fewer
employees as compared to its competitors.

DEALS OFFERED FROM TIME TO TIME

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CONCLUSION

To compete with the competitors mc Donald’s keep itself up to date according to

the customer needs and their satisfaction. Mc Donald’s is famous in keeping up
with its standards. Every type of standards is strictly followed. It was an awesome
experience of visiting Mc Donald’s. The manager was very cooperative and gave
as much info as he could. Many things were confidential and he hadn’t told us
about that information. He simply said “sorry, I am not allowed to tell you about
this”. Overall it was a good practice. He appreciated this activity of Punjab Group
of Colleges.

RECOMMENDATIONS:

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We suggest him to increase the space given to kitchen, freezer, store room,
common room for crew members because it was very congested area. And it was
not airy. He said, “We are planning to expand the area”.
Secondly, the temperature of kitchen was high than any other area. We were
sweating after 5 minutes. We asked him that we are unable to stand here then how
your employees work here. He said that they are used to. We suggested him to
make the computerized assembly line so that the work can become much easier.
Manager replied “it is very costly.” But at the same time he told us that in other
countries the process of putting drinks in the glasses has become computerized.

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THANK YOU…!

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