INTRODUCTION

McDonald's Corporation (NYSE: MCD) is the

world's largest chain of hamburger fast food
restaurants, serving nearly 47 million customers daily.
At one time, the largest global restaurant chain, it has
since been surpassed by Yum!, operator of KFC and
other chains, and Subway.
In addition to its signature restaurant chain,
McDonald’s Corporation held a minority interest in
Pret A Manger until 2008, and owned the Chipotle
Mexican Grill until 2006 and the restaurant chain
Boston Market until 2007. The company has also
expanded the McDonald's menu in recent decades to
include alternative meal options, such as salads and
snack wraps, in order to capitalize on growing
consumer interest in health and wellness.
Each McDonald's restaurant is operated by a
franchisee, an affiliate, or the corporation itself. The
corporations' revenues come from the rent, royalties
and fees paid by the franchisees, as well as sales in
company-operated restaurants. McDonald's revenues
grew 27% over the three years ending in 2007 to
$22.8 billion, and 9% growth in operating income to
$3.9 billion.
The business began in 1940, with a restaurant opened
by brothers Dick and Mac McDonald in San
Bernardino, California. Their introduction of the
"Speedee Service System" in 1948 established the
principles of the modern fast-food restaurant. The
original mascot of McDonald's was a man with a
chef's hat on top of a hamburger shaped head whose
name was "Speedee." Speedee was eventually
replaced with Ronald McDonald in 1963.

FIRST McDONALDS: The first

McDonald's restaurants opened in the United States,
Canada, Costa Rica, Japan, the Netherlands,
Germany, Australia, France, El Salvador and Sweden
in order of openings.
 FOOD
McDonald's predominantly sells
hamburgers, various types of chicken
sandwiches and products, French fries,
soft drinks, breakfast items, and
desserts. In most markets, McDonald's
offers salads and vegetarian items,
wraps and other localized fare. Portugal
is the only country with McDonald's
restaurants serving soup. This local
deviation from the standard menu is a
characteristic for which the chain is
particularly known, and one which is
employed either to abide by regional
food taboos (such as the religious
prohibition of beef consumption in
India) or to make available foods with
which the regional market is more
familiar (such as the sale of McRice in
Indonesia).
 PROMOTION
Promotion has also been a strength for
McDonald’s. They have always focused
promotion around good food, friendly folks,
and fun. They have also spent a
considerable amount of money on
promotional programs such as Monopoly,
Happy Meals, and the Big Mac. In addition
to these promotions, McDonald’s signed a
ten-year contract with Disney combining
promotions for food items with Disney
movies. They also continue the successful
Beanie Baby promotion that is credited as
the company’s most successful promotion
ever. On October 25 they introduced the
American Trio Collection of Beanie Babies
that celebrate the American Political
Process. In addition to promotion,
McDonald’s has also been successful at
placing restaurants in every available
position. The increase of outlets per year
has remained at 5% for the last two
decades despite a falling increase in sales.

STRENGHTS
The secret of McDonald’s success is its
willingness to innovate, even while striving to
achieve consistency in the operation of its many
outlets. For example, its breakfast menu, salads,
Chicken McNuggets, and the McLean Deluxe
sandwich were all examples of how the company
tried to appeal to a wider range of consumers.
The company has also made convenience its
watchword, not only through how fast it serves
customers, but also in the location of its outlets.
Freestanding restaurants are positioned so that you
are never more than a few minutes away by foot
in the city or by car in the suburbs. Plus
McDonald’s is tucking restaurants into schools,
stores, and more.
The strength of McDonald has been their product
strategy. Throughout the past three decades they
have simply been a hamburger and fries
Restaurant. Growing customer wants and needs
along with increased competition has forced them
to alter and improve their menu to better fit the
environment. Factors such as growing competition
and consumers becoming more health conscious
have forced them to make these changes. Today
McDonald’s offers a wide variety of products that
consist of 26 items.
McDonald's is helping low-income individuals
save money.
McDonalds add up to a meal that's largely devoid
of the vital nutrients
 WEAKNESS
The key threats to McDonald’s domestically are
the lack of growth opportunities. The market is
well saturated, and it would difficult to achieve
double-digit growth. Other concerns are a
newfound emphasis on healthier eating. Most of
McDonald’s most popular fare probably in some
small way contributes to the increasing incidence
of cancer, heart disease, and diabetes among the
population.

Their biggest weakness is the negative image of

their food. Their food doesn’t have a good public
image. For example, the movie “Super Size Me”
did not do well for McDonald’s public image.

McDonald’s are everywhere, the dining

experience is never special. And as Baby Boomers
age and become more affluent, it is likely that
they will leave behind their fast-food ways, if only
to step up to moderately priced restaurants like
Olive Garden, Bennigans, and Pizzeria Uno.
These chains have the added advantage of serving
higher-margin alcoholic drinks. McDonald’s,
meanwhile, has to continually battle Burger King
and Wendy’s, which leads to an erosion of
margins for everyone. Even alliances with toy
manufacturers, while popular with consumers, do
little for the bottom line because the cost to run
these promotions can be quite expensive.

Creation and implementation of new products

costs millions of dollars
 McDONALDS IN INDIA
SUPPLIERS
Cold Chain was one of the unique concepts of
McDonalds supply chain in India, on which it
had spent more than six years to get the
system into place. This system brought about a
veritable revolution, immensely benefiting the
farmers at one end and enabling customers at
retail counters get the highest quality food
products, absolutely fresh and at great value.

The following list of suppliers, who build up the

major supply chain of McDonalds, reveal how
this ‘Cold Chain’ works and contributes towards
the efficiency of McDonalds.

Dynamix Dairy Industries (Supplier of Cheese)

Trikaya Agriculture (Supplier of Iceberg Lettuce)

Vista Processed Foods Pvt. Ltd. (Supplier of Chicken

and Vegetable range of products including Fruit Pies)
Radhakrishna Foodland (Distribution Centres for Delhi
and Mumbai)

Amrit Food (Supplier of long life UHT Milk and Milk

Products for Frozen Desserts)

RESPECT FOR INDIAN

CULTURE:McD is well known around the
world its high degree of respect to the
local culture.mcd has selectrd menu
especially for the Indian people with
vegetable items .Only vegetable oil is uEd
as a cooking medium.der is so much
separation in veg n non-veg items that
even items like mayonesse n soft serve
are 100%veg.

FRANCHISES
McDonalds in India is classified as partnership
operated by Indians. Hardcastle Restaurants Private
Limited owns and manages McDonald's restaurants in
the west of India, while the northern territory
restaurants are owned and managed by Vikram
Bakshi’s Connaught Plaza Restaurants Private
Limited.

CONCLUSION
McDonald’s faces some difficult challenges. Key to
its future success will be maintaining its core
strengths—an unwavering focus on quality and
consistency—while carefully experimenting with
new options. These innovative initiatives could
include launching higher-end restaurants under new
brands that wouldn’t be saddled with McDonald’s
fast-food image. The company could also look into
expanding more aggressively abroad where the
prospects for significant growth are greater.
The company’s environment efforts, while
important, should not overshadow its marketing
initiatives, which are what the company is all about.
McDonald’s has done well with establishing a plan
for future growth and expansion. As long as they
continue to build awareness for their other brands,
expand internationally, and better manage product
introduction in existing McDonald’s restaurants,
they will continue to be number one.
 THREATS
 The recession negatively impacts the holding
position of the firm regarding its revenue
streams, even though they are quite
diversified.
 Foreign currency fluctuations are regarded
to be a major problem as it uses standard
pricing for its food items
 More restaurants that are increasing their
food offering and declining the price.
 Health issues regarding the fast food chain.
 Heavy investments on promotional campaigns
which decrease the gaining of market share.
 Some parents criticize the firm’s ‘cradle to
grave’ marketing strategy that focuses on kids,
who later on take it as a trend to their
adulthood.
 Sued various times for unhealthy food,
usually with addictive additives.
 Emergence of major fast food competitors:
Burger King, Starbucks, Wendy’s, Taco Bell,
KFC.
 The expansion has made the firm
vulnerable to the slow economies of the other
countries.
 OPPORTUNITIES
 It can adapt to the needs of the societies
and undergo an innovative product line.
 It can research ways to use ‘green’ energy
and packaging which will work as a part of
their promotional effort as well as fulfill their
social responsibility.
 It can create new product offerings, use
mobile text messaging to offer services that
appeal to consumers.
 It can upscale some of its restaurant
settings at luxurious locations to attract more
customers.
 It can adapt to the needs of the societies
and undergo an innovative product line.
 It can research ways to use ‘green’ energy
and packaging which will work as a part of
 their promotional effort as well as fulfill their
social responsibility.
 It can create new product offerings, use
mobile text messaging to offer services that
appeal to consumers.
 It can upscale some of its restaurant
settings at luxurious locations to attract more
customers.
 ESSENTIAL FACTS
1948: McDonald's first restaurant opens in San
Bernardino, California

1961: The golden arches introduced as company

logo

1963: Ronald McDonald makes his first TV

appearance

1965: McDonald's becomes a public company

1968: The Big Mac goes on sale

1973: The Egg McMuffin is introduced

1975: The first drive-through restaurant opens in

Sierra Vista, Arizona

1990: McDonald's opens in Russia

 PRESENTED BY
 TAHER RANGWALA 24
 ZEESHAN RAKHNGI 23
 NIKESH RATHOD 25
 JAY JAIN 12
 DHARMESH CHHABRA 04
 MANOHAR GADDAM 06
 HITESH SOLANKI 44
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