Mc d Project

8/6/2019 Mc d Project

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Introduction

McDonald's Corporation (NYSE:MCD) is the world's largest chain of hamburgerfast food

restaurants, serving more than 58 million customers daily.

In addition to its signature restaurant chain, McDonalds Corporation held a minority interest

in Pret A Mangeruntil 2008, was a major investor in the Chipotle Mexican Grill until

2006, and owned the restaurant chain Boston Market until 2007.

A McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself.The corporation's 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.

McDonald's primarily sells hamburgers, cheeseburgers, chicken products, French

fries,breakfast items, soft drinks, shakes, and desserts. In response to obesity trends in

Western nations and in the face of criticism over the healthiness of its products, the company

has modified its menu to include alternatives considered healthier such as salads, wraps and

fruit.

McDonald's restaurants are found in 119 countries and territories around the world and serve

nearly 47 million customers each day. McDonald's operates over 31,000 restaurants

worldwide, employing more than 1.5 million people. The company also operates other

restaurantbrands, such as Piles Caf.

Focusing on its core brand, McDonald's began divesting itself of other chains it had acquired

during the 1990s. The company owned a majority stake in Chipotle Mexican Grill until


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October 2006, when McDonald's fully divested from Chipotle through a stock exchange Until

December 2003, it also owned Donatos Pizza. On August 27, 2007, McDonald's sold Boston

Market to Sun Capital Partners.


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History

The business began in 1940, with a restaurant opened by brothers Richard and Maurice

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 by 1967 when the

company first filed a U.S. trademark on a clown shaped man having a puffed out costume

legs.

McDonald's first filed for a U.S. trademark on the name McDonald's on May 4, 1961, with

the description "Drive-In Restaurant Services," which continues to be renewed through the

end of December 2009. In the same year, on September 13, 1961, the company filed a logo

trademark on an overlapping, double arched "M" symbol. The overlapping double arched

"M" symbol logo was temporarily disfavored by September 6, 1962, when a trademark was

filed for a single arch, shaped over many of the early McDonald's restaurants in the early

years. The modern double arched "M" symbol that continues to be in use today at

McDonald's restaurants did not appear until November 18, 1968, when the company filed a

U.S. trademark on the now famous symbol that continues to be in use through the end of the

year 2009.

The first McDonald's restaurants opened in the United States, Canada, Costa Rica, Panama,

Japan, the Netherlands, Germany, Australia, France, El Salvador and Sweden, in order of

openings.

The present corporation dates its founding to the opening of a franchised restaurant by Ray

Kroc, in Des Plaines, Illinois, on April 15, 1955,[8]

the ninth McDonald's restaurant overall.

Kroc later purchased the McDonald brothers' equity in the company and led its worldwide

expansion, and the company became listed on the public stock markets in 1965. [9]Kroc was

also noted for aggressive business practices, compelling the McDonald brothers to leave the

fast food industry. The McDonald brothers and Kroc feuded over control of the business, as

documented in both Kroc's autobiography and in the McDonald brothers' autobiography. The

site of the McDonald brothers' original restaurant is now a monument.[10]

With the expansion of McDonald's into many international markets, the company has become

a symbol ofglobalization and the spread of the American way of life. Its prominence has also

made it a frequent topic of public debates about obesity, corporate

ethics and consumerresponsibility.


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Products

McDonald's original restaurant in San Bernardino, California served only hamburgers,

milkshakes, and French fries. While still based on hamburgers, today's menu includes

numerous other items that have been added through the years. Below are listed the basic

items sold by the company.

Big Mac: Along with the Quarter Pounder with cheese, this is one of the two McDonald's

signature menu items. Introduced in 1968 as a response to the flagship burger at Big Boyrestaurants. Two 1.6-ounce (45 g) (approx. uncooked weight) ground beefpatties, special

Big Mac sauce (similar to Thousand Island dressing), re-hydrated onions, two pickle

slices, shredded iceberg lettuce, and cheese, on a toasted bun, with an additional middle

bun (called a "club layer") separating both beef patties.

McChicken - A mildly spicy chicken sandwich. Made from 100% white meat

chicken. Mayonnaise, and shredded lettuce, on a toasted bun. It was introduced in

1980, then later removed, but then later reintroduced in 1988. In some markets it is

not spicy, and in others a Cajun spicedversion is also offered. It still remains one of

the biggest sellers, just behind the Big Mac.

Premium chicken sandwiches - The Classic is a rebranding of the Crispy Chicken and

Chicken McGrill sandwiches, with mayonnaise, leaf lettuce, and a tomato slice. The

Ranch BLTcontains ranch sauce instead of mayonnaise and includes bacon. The Club is

similar to the Classic with added bacon and a piece of Swiss cheese. In Latin America,

there are the Classic, the Club, but instead of the BLT, a Honey- mustard chicken

sandwich. All are served on a honey-wheat roll, with either a grilled or crispy chicken

breast.

Chicken McNuggets - Introduced in 1980 as a replacement for the McChicken, these aresmall chicken chunks served with dipping sauces ofBarbecue, Sweet n' Sour, Honey, and

Hot Mustard. Available in 4, 6, 10 (originally 9), or 20 pieces. Up until 2003, they were a

combination of liquefied white and dark meat, now they are made with only liquefied

white meat.

Filet-O-Fish - A whitefishfillet with tartar sauce and a half slice of cheese, on a steamed

bun. It was introduced in Cincinnati in 1963 when it was discovered that many Roman


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Catholicschose to eat at Frisch's Big Boy on Fridays and during Lent, as it offered a fish

sandwich so they could go without meat.[11] They were replaced with the Fish Filet

Deluxe in 1996 and brought back in 1998 abiet a larger fish patty.

McVeggie- A mildly spicy veg burger containing patty, lettuce and sauce

The Happy Meal - McDonald's created the concept of a children's meal when itintroduced the first Happy Meal in 1979. The meal includes an entree, a side order,

beverage and a toy. The toy is usually aproduct tie-inwith a movie or populartelevision

show.

McDonald's first introduced salads to its menu in 1985. Since that time, they have

restructured their salad lines several times. In the U.S., the newest salad offerings are part

of the McDonalds. First introduced in 2003, the Premium Salads all are a mixture of

iceberg lettuceand a special lettuce assortment (romaine, etc.), with cherry tomatoes and

different toppings to differentiate them; additionally all salads can be topped with warm

grilled or crispy chicken. All of its salads are part of McDonald's move towards creating ahealthier image.

McDonald's sells French fries as its primary side order. Until 1967, French fries were

never frozen, but were cut on-site from potatoes and immediately fried. In international

locations, they sell potato wedges, a type of French fry that is thick cut and wedge shaped

and fried onion pieces that are similar to onion rings.

From 1940 until 1972, McDonald's did not serve breakfast. McDonald's introduced

breakfast foods for the first time in 1972.

Breakfast

McDonald's primary breakfast offerings arebreakfast sandwiches.

McMuffinsare McDonald's signature breakfast sandwich, first sold at select

restaurants in 1972 as the Egg McMuffin, just five years before breakfast

officially went into effect, it consists of a fried egg, Canadian Bacon, and

American cheese on a toasted English muffin. Sausage orbaconMcMuffins are

also available.

McDonald's offers a line of breakfast sandwiches:bagels,biscuits, and a special

type ofmapleflavoredpancakecalled McGriddles. All can all be ordered with

sausage, ham or bacon, with an optional choice of cheese and/or egg. Regional

meat offerings include fried chicken, steak and bacon.

BeveragesMcDonald's primary soft drink supplier is the Coca-Cola Company, except in restaurants

which fall under an overall contract with PepsiCo


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. S&D Coffee, Gavina and Kraft supply McDonald's Premium Roast Coffee for

McDonald's US restaurants besides the New England area. Green Mountain Coffee

RoasterssuppliesNewman's Own branded coffee for McDonald's New England area

restaurants.

Hot and iced tea (supplied by S&D Coffee in the US), hot chocolate, variousjuicesandother regional beverages are available in various markets.

The McCafe is an umbrella term forlattes, espresso, iced coffee, hot chocolate, mocha,

smoothies, and other drinks that are sold in several markets worldwide.

Milkshakes are available in all of McDonald's US and global markets(except for the

Paraguayan branches)[Permanent flavors are vanilla, strawberry, and chocolate; regional or

seasonal flavors include Caramel, Coffee, Cherry, Eggnog (Limited Time Offer shake for

Christmas), Banana, Pumpkin (during Halloween), Strawberry Banana, MangoRaspberry,

Honeycomb, Arctic Orange(sherbet),Shamrock Shake (a green, spearmint Limited Time

Offer shake forSt. Patrick's Day),ChocolateMint, and Rolo (available only in Canada and

the UK. This flavored milkshake was also available in the Republic of Ireland during thesummer of 2007 for a limited time only). In June 1975, 13

Desserts

A soft serveice creamproduct is available in several forms, including sundaes,

cones (either vanilla, chocolate (Most McDonalds have discontinued to sell it, due to it

being an "optional" item) or chocolate-dipped), and as the primary ingredient in the

McFlurry. As with many other formulations of soft serve, cellulose gumis utilized as an

extender and thickener.

TheMcFlurry is a vanilla ice cream dessert that has pieces of candy, fruit orcookies

mixed into it. The mixing blade for the dessert is actually a specially designed spoon

with a hollow handle that attaches to the mixer spindle. The blade is used once then

given to the customer to use to eat the product. Available in most of its markets.[18]

FreshlyBaked cookies:"Freshly" baked cookies manufactured byNestl are available in some

markets.

Pies: McDonalds pies are actually turnovers and come in a choice ofapple, cherryand other

seasonal or limited-time-only flavors such aspumpkin pieand haupia pie in Hawaii.

Discontinued menu itemsMcDogs, .Hulaburger, McFeast, Beefsteak Sandwich, Onion Nuggets McLean

Deluxe McStuffin Pizza / etc


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THE 7 P's Of Mc DONALDSPRODUCTPRICEPROMOTIONPLACEPEOPLEPROCESSPHYSICAL EVIDENCE


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Functions of material

Management in Mc Donald1. Materials planning and programming

2. Raw material purchase

3. Receiving, store keeping and warehousing 4. Issuing of material5. Inventory control

6. Transportation of materials7. Vendor development

8. Vendor rating9. Disposal of scrap and surpluses

10. Just in time

Procurement of raw

materialsy Vegetables from Ludhiana (Punjab)

y Chicken from Mumbai (Maharashtra)

y French fries from USA

y Valla Mine fish from New Zealand

The Primary VALUE- CHAIN Activities are:Inbound Logistics: The receiving and warehousing ofrawmaterials and their distribution to manufacturing as they are

required.

Operations: The processes of transforming inputs into finished products and services.

Outbound Logistics: The warehousing and distributionoffinished goods.

Marketing & Sales: The identification of customer needs and the generation of sales.

Service: The support of customers after the products and services are sold to them.

Technology development: Technologies to support value-creating activities.

INPUTSBreaded vegetable patty (peas, carrots, green beans, red capsicum, potatoes)Breaded chicken patty.Breaded Filet-O-Fish.Spicy bread with continental vegetablesSpicy bread with seasoned chicken cubesTortilla bread filled with spicy salsa


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LettuceSpecial sauceTartar sauceSpicy sauceEgg less sauceItalian tomato sauce

BunSesame seed bunProcessed cheddar cheeseMexican fried chickenTomatoesVegetable Oils

OUTPUTS

McChicken burgerFilet-o-fishVeg pizza McPuff

McVeggie burgerMcVeggie burger with cheese McCurryPan VegMcCurry non-vegWrap-vegWrap non-veg

McAloo tikki burger

Crispy Chinese

Beverages and hot beverages

Finger food

EquipmentsFRY MASTERGRILLER

TOAST MASTER

NON VEG FREEZER

VEG FREEZER

CHILLER

SANITIZER

PROCESSThe food manufacturing process at Mc Donaldsis completely transparent and the whole

process is visible to the customers.In fact, the fast food joint allows itscustomers to view and judge the hygienicstandards at Mc Donalds by allowing them to


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enter the area where the process takes place.The customers are invited to check the

ingredients used in food.

MC. DONALDS SWOT ANALYSIS

Strengths It has a strong global presence and is considered as a market leader in both the domesticas well as the international markets. It is a global brand that owns 31,000restaurants serving in 120 countries. Of these31,000 restaurants at least14,000 restaurants are situated in the US. It uses economies of scale for reducing the cost, as its huge expansion diversifies theoverall risk involved with the economic performance. They own an active childrens charity by the name The Ronald McDonald House. It takes steps in adjusting the Ingredients and product offerings in order to comply with

the upgraded health standards deemed necessary by the USDA. It earns revenue by fast food sales as well as a property investor and a franchiserof restaurants. It has branded menu items i-e Big Mac, Chicken McNuggets, which further promoteMcDonalds. Its recognized as one of the worlds most recognized logos. It is recognized as a socially responsible and community oriented firm. It adapts to the cultural differences regarding the region where the restaurant is set up. It has located itself in major airports, cities, highways, tourist locations, theme parks. It has an efficient food preparation style that follows the process in a systematic way.

Weaknesses It uses advertising that mostly targets children. High employee turn-over. It has yet to accomplish going on the trend of organic food. Price competition with the competitors resulting in low revenue. Lack of innovative products.

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 oftheir promotional effort as well as fulfill their social responsibility.

It can create new product offerings, use mobile text messaging to offer services thatappeal to consumers. It can upscale some of its restaurant settings at luxurious locations to attract more

customers. It can provide optional items that are regarded to be the basis of allergy for some. It can slow down the level of expansion in order to increase the profitability of theorganization.

Threats The recession negatively impacts the holding position of the firm regarding its revenuestreams, even though they are quite diversified.


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Foreign currency fluctuations are regarded to be a major problem as it uses standardpricing 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 gainingofmarket share.

Some parents criticize the firms 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, Wendys, Taco Bell,KFC. The expansion has made the firm vulnerable to the slow economies of the other countries.


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Advantage:

Reasonable- products of McDonalds are reasonable in rates.

Quick- they offer quick service and we can get our in a coupleof minute.

Always- McDonalds are always open so we can enjoy its mealwhenever we want.

It is everywhere McDonald shops are found almost everyregion.

Liked by everyone- Its product are liked by everyone fromkids to adults.

Wide variety- there is wide variety to choose from like burger,fries, sandwiches, beverages, desserts etc.

Cleanliness- McDonalds have a clean and hygienicsurrounding for processing and serving the food.

Leader- It is a leader in the market of fast food.


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Disadvantages:

Health- Like every fast food McDonalds is not too healthy as

it contains lot of calorie.

Queues at peak time- There is a lot of rush during peak hoursand we may have to wait to get a seat.

Not for pure vegetarians- It is not favorable to those whoprefer pure veg restaurants.

Impact on environment- It generates lot of waste which

includes waste paper, plastics etc. as all the products areserved in paper and plastic materials.


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Conclusion;

Through its continual interaction with the market and responding to thechanging market scenario, McDonalds has successfully managed to project itsWORLDS LEADING FAST FOOD ORGANIZATIO N image to its

customers through its journey until now.The basic factors driving their brand strategy could be observed as:

1. Strong market research and market understanding

2. Highly responsive management

3. Innovation

4. Social responsibility

Through its various promotions McDonalds is also successfully able to conveyits core value

proposition:

1. Food Quality

2. Service

3. Cleanliness

Mc d Project

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