MCDONALD

McDonald's, also known as "Mickey D's", or "McD's, is the

world's best known fast-food chain. With its familiar golden arches
logo, McDonald's has 31,886 restaurants worldwide serving Big Macs,
Chicken McNuggets, salads and French fries.
The largest fast food chain in the world was founded as
a barbecue drive-in in 1940 by Dick and Mac McDonald. The first
McDonald's restaurant was located in San Bernardino.

Ray Kroc, a milk shake machine salesman, found the greatness

of the restaurant and purchased the rights from the brothers. Kroc
opened his first McDonald's restaurant in Des Plaines, IL in 1955 and
preached cleanliness in them. His very basic step paved the path to
glory. A clean atmosphere separated McDonald's from the rest of the
competitors and attributes to their great success. The Big Mac was
introduced the system wide in 1968. It was the brainchild of Jim
Delligatti, who by the late 1960s operated a dozen stores in
Pittsburgh. Herb Peterson in 1973 developed the Egg McMuffin.

By 1984, McDonald's served 17 million customers a day that

was equivalent to serving lunch to the entire population of Australia
and New Zealand. By 1996, McDonald's opened a store in Belarus, its
100th country. The same year McDonald's and Disney announced a deal
giving McDonald's exclusive rights to use characters from Disney films
in its promotions around the world for 10 years. Commentators called it
the biggest global marketing alliance yet devised. From small bricks to
mansion today McDonald's has become emblematic of globalization,
sometimes referred as the "McDonaldization" of society.
 Today, approximately 70% of McDonald's restaurants
are operated by independent franchisers. The number of restaurants in
the U.S. has reached saturation. Most new McDonald's are now being
opened in Europe, Middle East and Asia. In order to be a franchisee, an
individual must have at least $175,000. There are about 2,400 owner/
operators system wide. McDonald's is looking to boost sales by opening
restaurants 24 hours a day. An estimated 30% of store revenue comes
from breakfast sales alone. In 2006, the company had record revenues
of $21.6 billion, a 9% increase from the previous year and the net
income recorded was $4.4 billion.

Quality Suppliers:

Coca-Cola, the right well-known drink, has been with McDonald's from
the beginning supplying beverages. McDonald's is increasingly using its
leverage to capitalize upon global purchasing practices. New
restaurants throughout Europe feature tabletops from Belgium; chairs,
floors and tiles from Italy; doors from Austria etc. All using low-cost,
quality suppliers.

Made For You:

McDonald's 'new 'Made for you' preparation food system will

allow it to serve hotter, fresher food.

When a burger is being created the bottom bun and the meat is
heated up together in the microwave, than the cheese, ketchup, mustard
and pickles are being put on and covered up with the other half of the
bun. The whole finished burger is then wrapped up into special paper
and market with the time. New cookers are being added which grill the
burger meat faster. Everything is then put in special storage cupboard,
which additionally holds the food warm for no more than 10 minutes,
after that the burger is eliminated. When the customer orders his/her
food is straightaway served. The quest for variety to satisfy the
growing number of customers was attracting ultimately led to new items

being added to the Classical menu (hamburger, cheeseburger,

milkshake and coffee, soft drinks and fries).

In addition many new products are always under development

in McDonald's test Kitchens for evaluation in selected markets. The
menu is often enchanted with promotional products to add variety on
limited time bases. The group constantly examines their menus around
the world in light of changing customer's taste, as well as local customs.
In addiction to traditional favorites, customers will find special menu
offerings in some countries outside the U.S.

Examples: It includes the popular Teriyaki Burger in Japan and

vegetable Nuggets in India. Also in a large Muslim populations, such as
Malaysia and many Middle East countries, their menu is Halal,
prepared in keeping with Muslim guidelines.
Other Services:

Customers come to McDonald's for signature products they can't

find anywhere else. In addition many families visit the restaurants
because of their unique ability to put smiles on their children's faces.
Happy meal combine wholesome food whit a toy; Ronald McDonald is a
special friend; play places provide safe and fun recreation and the
alliance with Walt Disney Company let the children's shout even more.

MCDONALDS Training Center:

The most attractive side of McDonald's' activity is the training

that stands as background in every single employee. McDonald's
corporation started his fortune training people on how to be kind, fast,
precise and effective: it has been an absolute pioneer in this field.

Hamburger University is McDonald's worldwide management

training centre located in Oak Brook, Illinois. Designed exclusively to
instruct personnel employed by McDonald's Corporation or employed
by McDonald's Independent Franchisees in the various aspects of the
business. All training programs begin with one essential ingredient: The
Basics of McDonald's Operations.

McDonald's also manages ten international training centres,

including Hamburger Universities in England, Japan, Germany and
Australia. Today, more than 50,000 managers in McDonald's
restaurants have graduated from Hamburger University, located in a
130,000 square foot, with a faculty of 30 resident professors.

McDonald's believes that his quick-service format would be lost

if service at the order desk was not courteous and efficient, to avoid this
problem some detailed video tapes have been created to train every
single worker who had to have direct contact with the customers. The
tapes cover every aspect of dealing with the customers during his 15
seconds at the counter. Crewmen are instructed to initiate each order
with a polite question: 'May I have your order, please?' The success of
these service methods cannot be questioned. Competitors soon realized
the benefit of classroom instruction too. Now all major fast-food chains
have training schools. Yet, non-has come close to matching the
resources McDonald's continues to devote to formal instruction.

Factors Affecting McDonalds:

There were three factors that were chosen to outline the success of
McDonald’s corporation.

• The first factor is GLOBALIZATION, which is define as closer

contact between different parts of the world, with increasing
possibilities of personal exchange, mutual understanding and
friendship between "world citizens".

• DIVERSITY, the difference among people and cultures, is the

second factor discussed in the paper.

• The final factor is ETHICS, which can be defined as a set of

principles of right conduct.
Globalization:

In today’s society, corporations and enterprises are expanding

their businesses in the global markets. Globalization is necessary for
success and survival in the worldwide market.

When considering the foreign market, companies need to

consider there are risks. There must be local marketing to appeal to the
local consumers and also to build relationships and trust. Therefore, the
strategic planning for marketing has to be effective. McDonald’s caters
its menu in other countries to the cultures of the regions.

For example, in India, the non-vegetarian menu includes chicken

and fish items only. Beef is not on the menu in India because are
considered sacred. Global marketing decisions are no different than
those made domestically but the decisions are unique to each country.

Diversity:

McDonald’s commitment to diversity is established on the

foundational belief that diversity is not just a moral and ethical issue,
but also a business issue. Due to the global expanse of McDonald’s
business, diversity has become an integral part of the internal company
culture. McDonald’s has over 30,000 restaurants around the world,
which means franchise owner/operators, employees, and customers
represent just about every culture, religion or ethnicity on earth. In
addition, McDonald’s promotes the use of local suppliers and based on
their policies of diversity, expects and retains suppliers that have a
similar diversity culture. Knowing and understanding the local customs
and traditions of the communities where McDonald’s has established
businesses, integrating people from these communities into the
company, and adapting locally to the tastes and cuisines of the
community, has made McDonald’s the leader in their industry.

McDonald’s realizes that having diversity as an asset greatly

enhances the profitability of the company. Diversity is a direct reflection
of a company’s interpersonal relationships. These relationships, if
positive, result in a rewarding venture. Conversely, if the relationships
are negative, the company’s morale declines and if not addressed, leads
to the deterioration of the company. This deterioration directly impacts
the company’s income and the community’s acceptance of the business.

Ethics:

In addition to their community involvement,

• McDonald's has a long-standing commitment to environmental

protection. Restaurants around the world have innovative
programs for recycling, resource conservation, and waste
reduction.

• McDonald's is also an equal opportunity employer. As an equal

opportunity employer McDonald’s ensures that employees and
job applicants are selected, trained, and promoted without
discrimination to race, gender, sexual orientation, age or
disability. The company promotes their employees based on their
relevant skill, talents, and performance.

• McDonald's promotes and sustains a working environment, which

is free from unlawful discrimination, harassment and bullying.
Employees are regarded as members of a team where everyone's
opinion is valued and respected. The Human Resources
 department monitors the effectiveness of the discrimination
policies at regular intervals and takes corrective action as
necessary to ensure that they being complied with. Employees
who feel that they have been treated unfairly are encouraged to
use the remedies outlined in the Company's handbooks.

McDonald’s ethical standards, as well as their strategies for

globalization and diversity are instrumental to the overall success of
the company.
MCDONALDS CHENNAI:

Mc Donalds started their business in 1990.

It's in Ascendas IT park, Taramani, Velachery.

Products of MC DONALDS:
Happy Meals Happy Price Menu

Soft Serve Regular Hot & Cold Beverages

Pricing In MC DONALDS:

Price is High compared to other countries like U.S.A, California etc.,

McChicken + fries cost around Rs. 120; they have something called
"chicken maharaja", that maharaja costs Rs. 165 if it comes with fries.
It’s like Big Mac of America, but u get chicken instead of beef. It’s little
spicy though. If you order cheese, that will cost you additional Rs. 10
and kind of mess up the taste.

Advertising and promotion:

McDonald's is recognized as one of the best marketers of the

world, investing some hundreds of millions of dollars every year for
advertising and promotion of its image. In 1967 the franchisees created
the Operators National Advertising (OPNAD). Fund by pledging to
contribute 1 % of their individual restaurants sales to a national
co-operative advertising program in addition to the 2 or 3 % they were
contributing to their local advertising-co-operatives. McDonald's has
always shown bits of real life in their commercials that seems to have
become a standard for them. Their marketing efforts go far beyond
advertising, including special food promotions, games, videos,
cassettes, tapes, videos, CDs that we couldn't get anywhere else for
the value. Because of the diversity of customers that go to McDonald's,
they developed segmented marketing programs as various key
audiences.

Place:

MC Donalds is Situated in Ascendas IT park in Chennai. The

surroundings are ok (if you don't mind sitting in a food court of an IT
park). Outside customers are allowed inside, but you need to park your
vehicle outside the complex, sign in with the security, then you need to
go to food court. That’s really inconvenient for people. “Why the heck I
should jump security check just to get the damn chicken burger?”
Competitors:

• Pizza Hut

• Dominos

• Burger King

Industries Where McDonald's Corporation Competes:

• Fast-Food & Quick-Service Restaurants

• Leisure
• Restaurants & Cafes.

Loyout of McDonald’s :