3. McDonalds project
3
Introduction
The McDonald's Corporation is the world's largest
chain of hamburger fast food restaurants, serving
around 68 million customers daily in 119 countries
across 35,000 outlets.
McDonald's primarily sells hamburgers,
cheeseburgers, chicken, French fries, breakfast
items, soft drinks, milkshakes, and desserts. In
response to changing consumer tastes, the
company has expanded its menu to include salads,
fish, smoothies, fruit, and seasoned fries.
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History
Dec 1948: The first McDonald’s restaurant is
opened in San Bernardino, California by
brothers Richard and Maurice McDonald. Offers
burgers, fries, milk shakes, soft drinks, and
apple pie.
•1954: Ray Kroc, a milkshake machine
salesman, suggests nationwide franchising and
acts as a franchising agent for the brothers.
•1955: The first restaurant run by Ray Kroc
opens in Des Plaines.
6. McDonalds Project 6
Ray Kroc- Business Model
•Ray Kroc- Developed a business
model known as “The Three Legged
Stool.” Owner/Operator, Suppliers
and Employees
•Just as all three legs of a stool need
to be equal to support the weight, all
three elements of the McDonald’s
system are equally important
partners in McDonald’s success.
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History (cont.)
•1959: Kroc opens 68 new restaurants. They begin
advertising on billboards..
•1964:McDonalds issues its first annual report.
•1966:The first public shareholders meeting is held.
•1968:McDonalds opens its 1000 restaurants and
Fred.L-Tumer became the companies president and
chief administrative officer. Kroc became chairman and
remained CEO until 1973.
•The big Mac hamburger made its Debut.
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History (cont.)
•1973: The Egg McMuffin is added to the menu
as a breakfast item.
•1976:Sales exceeded 3 billion, and the 4000
restaurants is opened. Directors declare the
first cash dividend.
•1979:Happy meals are added to the menu.
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History (cont.)
•1991: The McLean Deluxe sandwich is introduced and
added to the menu after years of research. The
company for the, introducing indoor playgrounds with
the first in Chicago.
•1996: The first Indian McDonalds is
opened.Mcdonalds.com is launched.
•1998:McDonalds first restaurant opened in door to
the people of Pakistan in Lahore.
•Karachi opened its first restaurant a weak after
Lahore
•McDonalds Pakistan is the part of Lakson group of
companies.
11. McDonalds Project 11
History (cont.)
There are now 30 restaurants in the 8
major cities of Lahore. 11 in Karachi,10 in
Lahore,1 Hydrabad,1Faisalabad,1 Kala shah
kako,1 Islamabad,1 Rawalpindi.
2010:McDonalds introduces real fruit
smoothies and oat meal to its menu.
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Vision Statement
•We aspire to end hunger one meal at a time by
providing low cost- high quality nutritional food
globally.
13. McDonalds PROJECT
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Mission Statement
McDonald's brand mission is to "be our customers'
favorite place and way to eat." Our worldwide
operations have been aligned around a global
strategy called the Plan to Win centering on the five
basics of an exceptional customer experience –
People, Products, Place, Price and Promotion. We
are committed to improving our operations and
enhancing our customers' experience.
15. McDonalds Project 15
Resources Of McDonalds
Human Resources
Don Thompson: Don Thompson
is the President and Chief
Executive Officer of McDonalds.
During his 24 years at
McDonald’s, Thompson has
helped drive business results and
global strategic innovation across
the organization.
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Resources Of McDonalds
Mike Andres
President, McDonald's
USA
Peter J. Bensen
Chief Administrative
Officer
Richard Floersch
Executive Vice
President and Chief
Human Resources
Office
17. McDonalds Project 17
Resources Of McDonalds
Physical Resources
Headquarter: McDonalds head
quarter is located in Oak Brook
Illinois US. Physically.
Physical Locations: McDonald’s
is now in 116 countries. it has
35000 locations world wide.
18. McDonalds Project 18
Resources Of McDonalds
Physical Resources
List Of Countries First Outlet Location Current Operating
Outlets
US San
Barnadino,California
14267
Canada Richmond, British
Columbia.
1427
Japan Tokyo 3164
China Shenzhen 2000+
Pakistan Lahore 30
19. McDonalds Project 19
Resources Of McDonalds
Financial Resources:
Approximately 70% of McDonald’s
restaurants worldwide are owned
and operated by independent,
local businessmen and women.
Total assets
36,626,300 2011
35,386,500 2012
32,989,900 2013
20. McDonalds Project 20
Culture Of McDonalds
Change And Innovation: McDonalds is all
the time trying to be in time with new trends,
demand or technology even while trying to
achieve consistency in the operation of its
many outlets.
Training: McDonalds trained 55000 employs
each year. the company also have the strong
tradition and belief that the training have
known for their values as the bottom line for
their business.
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Culture of McDonalds
Team Work: McDonalds business demand
teamwork.
Motivation: McDonalds is motivating employs for
better performance. Incentive pay system.
Bonuses.
Standard: The McDonalds established the
sequences of strict and detailed working standards
that can ensure for every product must be high
quality.
23. McDonalds Project 23
Environment Of McDonalds
Suppliers: Coca-Cola ,wholesale food processors and
the packaging manufacturers are the main suppliers
of the company. They are making impact on
McDonalds.
Law: Different countries got on law which is
impacting McDonalds. E.g.. All Muslim restaurants in
the Muslim region are halal approved.
Competitors: Wendy's , burger king and Subway are
the main competitors of the McDonalds. They are
making impact the McDonalds.
25. McDonalds Project 25
Environment Of McDonalds
Globalization: McDonalds is an
international world wide restaurant that's
why globalization is affected McDonalds
corporate strategy
Shareholders: Shareholders impacting
McDonalds because they invest money on
that's why if McDonalds do good business
then price of share will increases.
26. McDonalds Project 26
Motivation
The 'McDonalds' company applies three components of
the motivation system: financial encouragement,
non financial encouragement, and social policy. All
the three factors are described in Maslow's
motivation theory. However, Maslow states that all
the needs must be fulfilled one after another.
27. McDonalds Project 27
Motivation
Wages:
One-function employees might get paid more for
the same job that another functions employees are
doing.. The company believes that the employees
make the dream of the organization come true.
Rewards:
In an effective organization, rewards are used well.
Rewarding means recognizing employees,
individually and as members of groups, for their
performance and acknowledging their contributions
to the agency's mission.
28. McDonalds Project 28
Motivation
Service awards recognizing employees service at
five year intervals.
President award global scheme for support staff.
Ray Kroc award for business managers.
Champion of the month ultimately feeding into
employees into year scheme.
Restaurant bonus schemes, one for all employees
and one for managers based on restaurant
performance.
29. McDonalds Project 29
Organization goals
Real Goals:
Certainly the first goal is to make money at the
franchise level and at corporation.
Another goal of the corporation is to maintain and
improve the brand reputation.
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Organization goals
Strategic Goals:
To maintain the leadership in fast food
restaurant industry
To serve the customer with good food in a
friendly and fun environment
Providing the quality food and value of
money to the customer
Providing the shareholder a positive
return on their investments
To meet the social and ethical
responsibility.
31. McDonalds Project 31
Organization goals
Financial Goals
Don Thompson. "Today, the Plan to Win continues
to guide the evolution and execution of our global
growth priorities as we strive to become even
better and bigger."
McDonald's reaffirmed its long-term average
annual constant currency growth targets:
System wide sales growth of 3% to 5%
Operating income growth of 6% to 7%
Return on incremental invested capital in the high
teens.
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Organization goals
Stated Goals:
McDonald’s said in the report it can’t
guarantee it will achieve the stated as
operational goals by 2020, but stressed it
is committed “to putting forth good-faith
efforts to make progress towards these
goals, to report on an annual basis
tangible progress and measurements,
where possible, and to explain both
successes and challenges along this
journey.”
33. McDonalds Project 33
Organization Planning
McDonald's has bold plans to evolve the customer experience
for the digital era, and the Global Digital team is at the center
of this aggressive change. Our team is leading the worldwide
effort to develop and orchestrate digital initiatives across every
facet of our interactions with customers. This includes new
brand engagement, e-commerce, service delivery, and digital
content capabilities.
With the fast emerging digital environment, this team is
focused on innovation across the customer journey in and
outside our restaurants, identifying the most meaningful
opportunities for our customers, and developing capabilities to
bring them to life. We do this in partnership and teamwork
with our IT organization and the Markets around the world.
35. McDonalds Project 35
Opportunities
1. New Products & Services
2. Beverage Market
3. Growth of Franchise Restaurants
4. Demand for Organic Products
5. International Expansion
6. Conservation (going green)
36. McDonalds Project 36
Threats
1. Change in Commodity Prices
2. Food Safety and Food Borne Illness
Concerns
3. Economic Slowdown
4. Growing Health Consciousness
5. Intense Competition (dine-in restaurants,
Burger King)
6. Legal Challenges (McDonald’s faces many
lawsuits)
37. McDonalds Project 37
Strengths
1. Strong Global Presence (located in over-
100 countries)
2. Strong Real Estate Portfolio
3. Brand Recognition
4. Revenue Growth 9% (Above Industry
Average of 7.5%)
5. The Ronald McDonald House (Children
Charity)
6. Systemization and Duplication
(Consistency)
38. McDonalds Project 38
Weaknesses
1. Public Perception (perceived as a
contributor to societies obesity problem)
2. Product Innovation
3. Advertising (targets young children)
4. Customer Service
5. Market Saturation (more difficult to add
new stores)
6. Labor Turnover