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  • 1. MANAGEMENT PROCESS MCDONALD,S CORPORATION UNIVERSITY OF ARID AGRICULTURE RAWALPINDI UINIVERSITY INSTITUTE OF INFORMATION TECHNOLOGY (UIIT) [1]
  • 2. Delivered Mr. Shahid Iqbal Develop By: Syed Rehan [09-arid668] M.Asad Iqbal [09-arid-636] M.Usman [09-arid-644] Irum Rashid [09-arid-620] Bs(CS)-2B-Morning [2]
  • 3. ACKNOWLEDGEMENT “In the name of Almighty Allah, the most beneficent and merciful to the mankind.” This project would not be possible without the encouragement and guidance of number of people. We feel highly obliged and want to express our deepest gratitu de to our respected sir Mr M. Shahid Iqbal for his advice, help and guidance throughout this semester. We would like to express our deepest gratitude to our parents and friends for their inspirations, love and constant support. [3]
  • 4. EXECUTIVE SUMMARY This project is about Mc Donald’s Pakistan, which is one of the largest and the best-known global food service retailer with more than 30,000 restaurants in 121 countries serving 47 million customers each day. First we have studied a brief history of the company worldwide. Then we have introduced McDonalds Pakistan, the organizations strategies and its structure. Basically, this project aims to have an overview of the McDonalds. [4]
  • 5. Table Of Contents Sr.No Topic Page# 01 Introduction 01 02 History 02 03 Organizational structure of McDonald’s 04 04 Organizational environment of McDonald’s 08 05 Social responsibilities 11 06 Mission Statement 15 07 Planning 15 08 Organizing 17 09 McDonald’s in Pakistan 18 10 Management Process 22 11 Human Resource Management(HRM) 25 [5]
  • 6. MCDONALDS 1. Introduction McDonald’s was founded in 1955 by Ray Kroc. Rooted in Ray Kroc’s founding principles of Quality, Service, Cleanliness & Value (Q.S.C.&V.). MacDonald’s headquarters are situated in Oak Brook, Illinois, USA. It have more than 35000 branches all over the world. It produces Fast Food. According to the survey of 2010 McDonald’s have more than 5,00,000 employee in its worldwide branches. McDonald’s management has always believed in being a leader in issues that affect their customers. This philosophy is evident in McDonald’s involvement in various community projects regarding education, health care, medical research, and rehabilitation facilities. These activities help the corporation to extend their image beyond fun and entertainment into social responsibility. However, in the late 1980s, McDonald’s began to face criticism for its environmental policies, especially those surrounding polystyrene clamshell containers. In 1987, McDonald’s replaced CFCs, the blowing agent used in clamshell production, with weaker HCFC- 22’s after facing public criticism that CFC usage was contributing to ozone depletion. But this change was not enough for many grass-roots environmental groups that, led by the Citizens Clearinghouse for Hazardous Waste (CCHW), united in establishing a “Ronald McToxic Campaign” consisting of restaurant picketers and an organized effort to mail clamshells back to Oak Brook headquarters. When McDonald’s later tested trash-to-energy on-site incinerators, CCHW quickly named the project “McPuff.” By 1989, school children, the backbone of McDonald’s customer base, founded a group called “Kids Against Polystyrene.” Although they were not the only fast- food restaurant facing criticism for disposable packaging, McDonald’s could not afford to let this situation escalate. One of their primary competitors is Burger King. McDonalds is the leading global foodservice retailer with more than 30,000 local restaurants serving 54 million people in more than 120 countries each day. All McDonald's restaurants offer a standard menu, which comprise food items such as hamburgers, cheeseburgers, chicken sandwiches, French fries, salads, milk shakes, desserts and ice cream sundaes. Some McDonald's restaurants offer additional food items to suit local taste and preferences. The company also operates restaurants under the brand name 'Boston Market'. In fiscal 2006, the company operated 31,667 fast food restaurants in over 119 countries in the following geographic segments: US; Europe; Asia Pacific, Middle East a nd Africa (APMEA); Latin America and Canada. McDonald's generates revenues through company operated restaurants and franchisee restaurants. Of the company's total restaurants, over 8,000 are operated by the company and over 18,000 are operated by franchisees. The remaining restaurants are operated by affiliates. The company's revenue comprises sales from company operated restaurants and fees as well as rent from franchisees and affiliates. The company and its franchisees as well as affiliates [6]
  • 7. source purchase food, packaging, equipment and other goods from approved suppliers. The company maintains quality standards through assurance labs around the world. A quality assurance board, including the company's technical, safety and supply chain specialists, provi de guidance on all aspects of food quality and safety. 2. 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 of globalization 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 consumer responsibility. McDonald's boasts its service to "99 billion customers". McDonald's restaurants are found in 119 countries [11] 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.[11] The company also operates other restaurant brands, such as Piles Café. Focusing on its core brand, McDonald's began divesting itself of other chains it had acquired during the [7]
  • 8. 1990s. The company owned a majority stake in Chipotle Mexican Grill until October 2006, when McDonald's fully divested from Chipotle through a stock exchange. [12][13] Until December 2003, it also owned Donatos Pizza. On August 27, 2007, McDonald's sold Boston Market to Sun Capital Partners.  McDonald’s Journey  1955- Ray Kroc opens his first restaurant in Des Plaines, Illinois and the McDonald's Corporation is created.  1957- Quality, Service, Cleanliness and Value (QSC& V) becomes the company motto.  1959- The 100th McDonald's opens in Chicago.  1961- Hamburger University opens in Elk Grove, near Chicago  1963- One billion hamburgers sold.  Ronald McDonald makes his debut.  1964- Filet-O-Fish sandwich is introduced.  1965- McDonald's Corporation goes public.  1967- The first restaurants outside of the USA open in Canada and Puerto Rico.  1968- The Big Mac is introduced. The 1,000th restaurant opens in Des Plaines, Illinois.  1972- A new McDonald's restaurant opens every day. The Quarter Pounder is introduced.  1973- Egg McMuffin is introduced.  1974- The first Ronald McDonald  1983- Chicken McNuggets is introduced. New Hamburger Unive rsity campus opens in Oak Brook, Illinois. Set in 80 wooded acres. Training is provided for every level of McDonald's management worldwide.  1984- 50 billionth hamburger sold. Ronald McDonald Children's Charities is founded in Ray Kroc’s memory to raise f funds in support of child welfare  1989- McDonald's is listed on the Frankfurt, Munich, Paris and Tokyo stock exchanges  1990- McDonald's opens in Pushkin Square and Gorky Street, Moscow.  1993- The first McDonald's at sea opens aboard the Silja Europa, the world's largest ferry sailing between Stockholm and Helsinki.  New Caledonia, Trinidad and United Arab Emirates, bringing the total to over 15,000 in 79 countries on 6 continents 1996- McDonald's opens in India – the 95th country.  1994-Restaurants open in Bahrain, Bulgaria, Egypt, Kuwait, Latvia, Oman. 3. Organizational Culture of McDonald’s  McDonald’s as an organization [8]
  • 9. Basically, an organization is a group of people intentionally organized to accomplish an overall, common goal or set of goals. Business organizations can range in size from two people to tens of thousands. There are several important aspects to consider about the goal of the business organization. These features are explicit (deliberate and recognized) or implicit (operating unrecognized, "behind the scenes"). Ideally, these features are carefully considered and established, usually during the strategic planning process. (Later, we'll consider dimensions and concepts that are common to organizations). Since McDonalds is a company which means it has a lot of employee who are working together to achieving a certain goal than it is considered an organization. McDonalds is the largest chain of fast food restaurants in the globe. McDonald's restaurants are found in 119 countries around the world that serves nearly 47 million customers per day. It has more than 31,000 restaurants worldwide, and employee over 1.5 million people. This business was found in 1940 under the name of “speedee” by the brothers McDonalds, and it was the first establishment and appearance of fast food restaurant, then the business transferred to Ray Kroc, who then expanded the business to nine branches, than into many international markets which reflected the way of American life style  McDonald’s globalization and culture. Globalization has affected almost every aspect of life in almost every nation. From economic to social to culture, this widespread exchange of goods, services and ideas have influenced changes around the world. Even though the cultural influence in globalization is of slight significance to policy makers, its power has tremendous consequences to the nations involved and its people. Food is an important element in defining culture. Britannica (2007). “Food is the oldest global carrier of culture.” Any changes in the foods that we eat, in its preparation, the way it is served and consumed diminishes the traditional beliefs of the people. One of the most influential changes came with the introduction of fast food restaurants like McDonald’s into foreign countries. Transformations have taken place which could be perceived as beneficial or corrupting to that culture. According to William Gould (1996), before the introduction of McDonald’s overseas “fast food was almost unknown. McDonald’s was the first company to try to export America’s love of fast food and changes in eating habits of other nations.” Catherine Schnaubelt (u.d.) in her study, has found that “McDonald’s has over 1.5 million franchises in the United States and about half of the total franchises are outside the U.S. in over 120 countries……Amidst all the fame and fortune of McDonald’s, there are concerns a bout how the spread of standardization of the franchise is affecting culture, attitudes and the environment.” The globalization of McDonald’s has raised many debates on both sides of the issue. The pro- globalization belief is that it enhances culture rather than adulterate. Radley Balko (2003), states that “In most communities, in fact, the McDonald’s has conformed to the local culture not the other way around. The McDonald’s corporation notes that most of its overseas franchises are [9]
  • 10. locally owned, and thus make efforts to buy from local communities. McDonald’s also alters its regional menus to conform to local taste.” There has been a loss of traditional values with the introduction of nontraditional food into the culture of foreign countries. The types of foods are symbolic to particular regions, religions and morés. In India, to the Hindu people, the cow is considered to be sacred as part of its religion. According to the AsianInfo.org (2007), “Diversity can be found in India’s food as well as its culture, geography and climate.” “Although a number of religions exist in India, the two cultures that have influenced Indian cooking and food habits are the Hindu and the Muslim tradition.” With the introduction of non traditional foods into this society, as with many others, there are adverse effects on the traditions it tries to uphold. McDonald’s is viewed as American and the movement away from traditional foods towards fast food is considered to be “Americanization” of the diet. This concept has more far reaching effects than is seen on the surface. The “Americanization” of the food also means that of the culture and a way of thinking which in not acceptable to many nations. Sebastian Mallaby (2007), writes that “Hyperpower invites backlash, and McDonald’s has not escaped such consequences. In 1999 a French farmer named Jose Bove ransacked a McDonald’s and became a hero of the anti- globalization.” (para.5). The restaurant stands as a symbol of an unwanted change sweeping across the borders of culture and tradition. The content of the McDonald’s diet has long been an issue of contention with nutritionist. In his book Fast Food Nation, Eric Schlosser (2002), states that “By eating like Americans people all over the world are beginning to look more like Americans, at least in one respect. The United States has one of the highest obesity rate of any industrialized nation in the world.” “As people eat more meals outside the home, they consume more calories, less fiber and more fat.”. The introduction of unhealthy eating habits as a result of the preamble of foreign foods into outside nations significantly affects the traditional culture. The World Health Organization (2002), believe that “within the next few years, no communicable disease will become the principal cause of morbidity and mortality…….The shift towards highly refined foods and towards meat and dairy products containing high levels of saturated fats,….contribute to rises in incidences of obesity and no communicable disease.” Not only has the content of the diet been an issue but also the way in which food is consumed. As the name implies it is “fast food” There is a movement away from a family oriented dining to individual dining. In a chart featured by Gardenswartz and Rowe (u.d.) shows that while mainstream American culture focuses on eating as a necessity and towards fast food other cultures view dining as a social experience with religion playing an important role in its practice. They value group orientation and conformity to facilitate harmony among families whereas American culture has a preference towards individualism and independence from each other. Gobalization of fast food culture has also proven desirable to the nations involved and their populations. Mallaby (2007), states that “As America’s car culture spread abroad, the hamburger followed. McDonald’s has opened restaurants in 119 countries and serves 52 million people daily.” [10]
  • 11. (para. 3). “The appeal of the American way seems to transcend all boundaries. When McDonald’s opened its first restaurant in Kuwait in 1994, 15,000 customers formed a seven mile line at the drive through.” These are just some of the concerns which affect the issue of food culture and globalization. Many more arise as a result of the introduction of fast food restaurants like McDonald’s into diverse cultures around the world. Some changes are embraced by the population while others are seen as a threat to the way of life that has been established for centuries. Some are adverse to the idea of globalization as a hold and perceive McDonald’s as a representation of this ideal and as a result hold them responsible. The question arises; does the globalization of McDonald’s adversely or positively affect the culture of different nations? Even though there has been many changes in the eating habits of the nations influenced by the introduction of McDonald's there has been many positive aspects. With the advancement of technology and communication the world itself seem to be moving at a faster pace. The advent of fast food into foreign cultures allows the opportunity to keep up with this fast pace. Culture is ever changing and thus McDonald's marks another step in the evolution of culture with the changes in has brought about. The menu has given people a new choice over the traditional foods eaten in the past. The McDonaldized institution has really spread across continents giving rise to a number of indigenous fast food chains. There is also the case of Asianization where Asian cuisine such as Fried rice is rapidly spreading all over the world. Unemployed youth are taking advantage of the McDonaldized institution to set up fast food businesses on the streets. This can be called fast food- street food. There are good and bad sides to this phenomena therefore we need to find out the bad sides and improve upon them. Some traditional foods may also come with pr oblems especially in terms of health so while we criticise fast food we should also analyze some traditional food at least for their nutritional importance.  What we can learn about ourselves and our culture from McDonald's Talking about culture and McDonald's is a great challenge. First, it will be said that there is no culture in McDonald's, except "junk" food, maybe too greasy and maybe bringing bad cholesterol. At least, that is the first image the word "McDonald's" will bring to my thoughts of European. As you can easily imagine it, we do not have, here in Europe, the same way to look at the culture brought by McDo than the one the Americans see. It is a whole lot different, and that comes from our culture, our respective culture. When I was a kid, there was no McDonald's in my town, neither next town, ... the nearest one was 2 hours drive away and I went there the first time I was already 14 years old! And my first visit to this place met the images I had made for myself from TV shows and movies... it wa s a great and fun experience. Then, once I had my driver's license, I went often to McDonald's with my cousins (twice a month I mean) and it was the good reason to spend a day out, having fun and doing "weird" stuffs. We loved it. And now, I am a mother and I do share with my kids the fun I had to go to McDonald's, eating American food, having fun. During years my kids had their birthday's parties at McDonald's and it was fun. And we usually go, once a month, just for the fun [11]
  • 12. and the pleasure. That's right, you can smoke at McDonald's and I hate that. Every single day I do wish that this law against smoke in restaurant will pass and be effective very soon. That's right, you can have a beer at McDonald's and my husband likes better to drink a beer with his me al than a coca or a sprite. But it is in our culture, in our European culture to drink beer or wine with meals. I don't often drink wine while eating but it doesn't seem wrong to me. In our culture, we have wine, beers, etc.. at home and we are not alcoholics. It is normal for us to have the choice. For myself, I love drinking coca or other sodas, as at home we - kids and I - do usually drink water or juice... but I do have the choice. But, I guess, that all around the world, in every place you will find a McDonald's, you will find signs, symbols of the culture of that place, mixed up with the culture of McDonald's. And that, represents the culture of the world, isn't that great ? Maybe, while visiting a "new" country, we should go first in a McDonald's, jus t to take good note of the differences with the American way... I'm sure we will learn a lot.  McDonald's Corporate Culture McDonald’s Corporation is the largest and most recognized global foodservice provider. McDonalds currently operates more than 30,000 restaurants in more than 120 countries. McDonalds s also boasts a team of experienced managers, one of the best recognized brand names in the world, superior operating systems, and a global infrastructure. McDonalds is all about corporate culture. From its Hamburger University (where managers and assistant managers are trained) to its vision statement of Quality, Service, Convenience, and Value (QSCV), McDonalds corporate culture is a shared value system that forms the basis of all company decisions. If we look at R. E. Spur gins components of corporate culture, we see them defined as such: A relatively enduring, interdependent symbolic system of values, beliefs, and assumptions evolving from and imperfectly shared by interacting organizational members that allows them to ascribe common meanings to stimuli encountered in the organizational context; these functions are accomplished through the mediation of implicitly and explicitly rules that act as cultural warrants. McDonalds vision statement creates the values by which are made all managerial and corporate decisions. These guiding values are exhibited in all aspects of business, from social responsibility and diversity to training and policies. McDonalds operates four Hamburger Universities in four countries. [12]
  • 13. 4. Organizational environment of McDonald’s i. External Environment External assessment on your selected department, group, division, function, or organization (for which you will create a strategic plan) that you began in week 2, including an assessment of the external remote, industry, and operating environments. Your environmental scan should describe the situation completely and accurately. You should identify any major changes that you expect to affect your remote, industry, or operating environments in the next 5-10 years. This will include the following subcomponents such as: Utilize a macroeconomic forecast of economic indicators from the external remote environment that will affect your chosen organization in the future and should be considered part of strategic planning. Analyze the non-economic factors in the external remote environment: 1)Social and Cultural 2)Political 3)Technological 4) Demographic Develop an assessment of the organization's external industry environment using Porter's "Five Forces", including an assessment of the future forces and trends in the industry. Identify strengths and weaknesses in the organization's operating environment that can be leveraged to capitalize on the emerging opportunities or minimize the threats that you identified thus far. Make sure to present a competitive assessment on how specific key competitors compare to the firm on the criteria you believe are most associated with marketplace success. Also be sure to assess the firm's key customer/market segments, and the key needs/demands of each (in particular look to see how these needs/demands might be evolving based upon some of your earlier research into future trends). Considering all of your external assessment findings, summarize the top three to four strategic opportunities and/or threats that are most important to consider in your later development of long-term objectives i. Marketing Environment Marketing environment means all the forces and factors outside the marketing that affects the marketing management ability to build a successful relationship with the target customers. When the McDonalds started it business in the Pakistan first they have to consider the market environment of the Pakistan. There are four considerable factors in the marketing environment of the Pakistan. These are product, price, place, and promotion. And other is micro and macro environment factors those have much influence on the marketing process of McDonalds are discuss below, a) Competitors The microenvironment factor has a lot of influence on McDonald. Because the McDonalds is a fast food restaurant chain and it has a large no of competitors in this field and to tackle its competitors MacDonald’s is trying to understanding the needs and wants of the target customers and providing them the superior services and products. [13]
  • 14. b) Demographic Environment. Demographic environment of a country include the study of characteristic such as age, gender, race, occupation and density of the people of that country. So the McDonalds find out and introduced their products in those areas where there products will be readily accepted. They also studied the buying power of people their age level and the intensity of population in different regions. And then McDonalds decided to offer different types of products satisfying each and every customer of fast food industry. c) Economic Environment The economic environment means buying power of the people. The fast food industry of Pakistan is increasing day-by-day this encourages McDonalds to start their new outlets in all the major cities of Pakistan. McDonalds also consider the infrastructure of fast food industry of Pakistan before starting its operation. The purchasing power of the individuals was also studied to decide that in which areas they should open their new outlets. d) Social and Cultural Atmosphere When McDonalds started its business in Pakistan nine years ago people of Pakistan were not font of eating fast food and McDonalds was not generating too much revenues at that time but with the passage of time the interest of people has developed towards fast food and it has become a culture specially for the high class to go and eat fast food from expensive restaurants like McDonalds. As McDonalds is an American base company so it is facing many problems in Pakistan in its operation. Sometimes people show hate against it for this reason. For example , At least 11 people were injured in two explosions in a KFC and a McDonalds outlet in Pakistan’s southern city of Karachi e) Political and Legal forces Political conditions of Pakistan are steady and this promotes the foreign investors to come in Pakistan and start their business or expand it. For those companies who are already operating in Pakistan. Government of Pakistan has imposed restriction for McDonalds to provide Halal food in Pakistan and McDonalds has to follow that restriction. Also 15% general sales tax is imposed by government which McDonalds is paying completely. ii. SEGMENTATION OF McDonald’s The process of dividing the large heterogeneous consumers market into smaller Portion is called as segmentation. In the same way the McDonald’s is also dividing its markets into the smaller Segments. McDonald’s is segmenting its market on the following basis . a) GEOGRAPHIC SEGMENTS [14]
  • 15. b) DEMOGRAPHIC SEGMENTS c) PSYCHOGRAPHIC SEGMENTS d) BEHAVIORAL SEGMENTS a) GEOGRAPHIC SEGMENTATION Dividing the market into different geographic units such as nations, countries, Cities. Countries McDonalds is segmenting the consumers of different countries by different ways. McDonald’s is introducing the products according to the needs and wants of the countries and its culture. NATIONS McDonald’s also take care the nations and their beliefs such PAKISTAN is the Muslims countries so they are introducing only halal foods here. In INDIA McDonald’s are not using the meet of cow. Because this is against their beliefs. CLIMATE McDonald’s also take care the climate of different regions while segmentation. For example:-in those countries where the climate is hot, they introduced the cold Items such as ICE_CREAMS, SHAKS, and JUICES more like in the PAKISTAN. And the countries where the climate is cold they introduced more teas and coffees Etc. b) DEMOGRAPHICAL SEGMENTATION Its mean dividing the market on the basis of variable such as age, gender, Family size income, race generation etc. AGE McDonalds is segmenting the customers especially on the basis of the age. They have different products for the different age groups. Such as for the children’s they have many special items and play areas those Attract them more. FAMILY SIZE They also offers the deals for the different family size and offer them discount on buying products in bulk quantity. EDUCATION [15]
  • 16. Education enhance awareness so they targeting the educated people as shown in their advertisement. GENDER McDonald’s also segmented the market on the basis of gender on the basis of some factors. RACE Mc also segmented their customers on the basis of race such as ASIAN, HISPANICS BLACK and WHITE, and provides products according to their Taste. c) PSYCHOGRAPHIC SEGMENTATION. Its mean dividing the markets on the basis of social class, life style etc. SOCIAL CLASS MC in PAKISTAN is only segmenting their market for the upper class, Lower upper class and upper middle class LIFE STYLE The people who are health conscious McDonalds also target them as walls Satisfying your healthy life. d) BEHAVIORAL SEGMENTATION Its mean dividing the market on the basis of the occasions, benefits, user status, User Rate, loyalty status etc. OCCASIONS McDonald’s also segment the market on the occasions such as VALENTINE DAY, MOTHER DAY, and their sales is increases on these occasions. BRAND LOYALITY In the world there are so many people who love with the McDonalds. And they are loyal with the brand name of McDonalds 5. Social Responsibilities “Social Responsibility is not a program that begins and ends. Acting responsibly has always been a part of who we are and will continue to be the way McDonald’s does business. It’s an [16]
  • 17. ongoing commitment,“ said McDonald’s CEO Jim Cantalupo. “I am proud of what o ur company has accomplished, and we continue to do more.” It is a very special treat to announce that McDonald’s Polska, part of the world’s No. 1 restaurant chain, has become a member of the Foundation for Corporate Social Responsibility, and will be awarded the Foundation’s Gold Seal of Approval as a Socially Responsible Company at our First Annual Awards Dinner – Dance on November 3rd. Back in 1954, as a 52-year-old salesman, Ray Kroc was an exclusive distributor for "Multimixer" milkshake machines when he came across the small hamburger stand of Dick and Mac McDonald in San Bernardino, California. He took one look at the rapidly moving line of customers buying bags of hamburgers and French fries and thought, "This will go anyplace. Anyplace!" Fifty years later, McDonald’s has 31,000 restaurants in 119 countries on 6 continents, feeds 46 million customers a day, and employs 1.5 million people. Poland is the most important market in the region for McDonald’s. With over 12 years in Poland, McDonald’s Polska has opened 205 restaurants and made investments worth zl.650 million on the local market. In 1992, the first year of its activity in Poland, McDonald’s opened three restaurants. In the following years the company developed exponentially, opening 20 outlets a year on average. Presently, McDonald’s restaurants operate in a large number of Polish cities, with a record of 35 locations in Warsaw. McDrive restaurants constitute a special category apart from the traditional dining room with a drive-through window for customers. Today there are 144 such restaurants of this type in Poland. Today McDonald’s Polska employs 10,000 people and has no intention to reduce employment anytime soon. In fact the company’s presence on the labor market is much bigger than company employees. Each investment undertaken by McDonald’s means a major increase in Polish jobs in the construction industry, interior furnishings, and among suppliers of goods. Meals at McDonald’s restaurants are almost exclusively prepared using Polis h products. At the end of September 2003, McDonald’s Polska started a new image campaign. Conducted on all markets under the common slogan "I’m lovin’ it," the campaign is part of the new global strategy of McDonald’s. The launch of the "I’m lovin’ it" campaign is a milestone for McDonald’s in its process of refreshing its brand. For the first time in the company’s history, one set of advertisements and one slogan is being used all around the world simultaneously.  A Socially Responsible Company McDonald’s founder Ray Kroc built the company on the principle of giving back to the communities in which they do business. That same basic philosophy still holds true at McDonald’s today. A McDonald’s franchisee and his/her team can be found supporting various local schools, youth athletic teams, senior citizens’ groups, safety awareness campaigns, literacy programs, environmental projects and other local fundraising initiatives in their communities. McDonald’s national, registered charity, Ronald McDonald Children’s Charities (RMCC), was established in 1982. It has one simple objective: to help children in need. Ronald McDonald Children’s Charities [17]
  • 18. supports Ronald McDonald Houses & other registered charities that help improve the physical and emotional quality of life for children with life-threatening illnesses or disabilities and their families. This month marks the 30th anniversary of the first Ronald McDonald House®, which opened its doors on October 15, 1974, to provide temporary lodging for families with chi ldren receiving medical treatment at nearby hospitals. What began with one House in Philadelphia, PA, has now expanded, due to the dedication of Ronald McDonald House Charities® (RMHC®) and the need of families worldwide, to nearly 240 House programs in 24 countries around the world. Close to 20 new Houses are scheduled to open in 2005. The Polish chapter of RMHC (Fundacja Ronalda McDonalda) was registered in April, 2002. In one of my early discussions with McDonald’s Polska Director of Corporate Affairs Krzysztof Kłapa, he expressed his delight in the fact that the Foundation for Corporate Social Responsibility will work with their entire company, and not just the front office staff. He said, "I look forward to the first Corporate Social Responsibility Seminar with McDonald’s administrators and employees. McDonald’s Polska carries out many valuable programs for local communities. The Foundation for Corporate Social Responsibility could be an excellent platform for sharing such best practices and joining forces to help people in need” adds Kłapa. We welcome McDonald’s Polska to our growing Foundation of Socially Responsible Companies. McDonald’s says, “I’m lovin’ it,” … well, McDonald’s, “We’re lovin’ you.” Corporate social responsibility (CSR) or corporate citizenship entails companies behaving in a socially responsible manner, and dealing with other business parties who do the same. With growing public awareness and demand for socially responsible businesses, it is little wonder that companies of today take corporate social responsibility into account when planning future socially responsible business operations. This case study on McDonald’s social responsibility examines one such example of corporate social responsibility exemplified by McDonald’s . McDonald’s is the world's largest chain of hamburger fast food restaurants. According to the McDonald’s Corporate Social Responsibility website, McDonald’s take on corporate social responsibility or CSR of McDonalds is about taking action, achieving results and always maintaining open lines of communication with its customers and other key stakeholders .  Sustainable Supply Chain Strategy McDonald’s works with its suppliers to promote socially responsible practices i n its supply chain as part of its supply chain strategy. This is part of its wider Framework for Corporate Social Responsibility. As described on its corporate social responsibility website, it has its own Code of Conduct for Suppliers which describes how McDonald’s expects its suppliers to treat their employees. It has also sought to extend social accountability throughout its suppl y chain as part of its supply chain strategy. McDonald’s has succeeded in supporting suppliers who are phasing out sow gestation crates in their supply chain. According to its website, currently, more than 50% of all Cargill's contracted hog farms are in new-generation systems that do not use gestation stalls. For example, McDonald’s embarked on a sustainability project to improve conditions for farm workers [18]
  • 19. in the Florida tomato industry in 2007, which in turn promotes good environmental practices in its land-based agricultural supply chain and makes the farm a sustainable business. Although McDonald’s purchases only 1.5% of Florida's tomatoes annually, McDonald’s and its suppliers instituted industry-leading grower standards that improved working conditions in these farms and made the farm a sustainable business.  Engaging the Community through Community-based Projects One approach to engaging in corporate social responsibility is through community-based development projects. Community-based and community-driven development projects have become an important form of development assistance among global socially responsible companies. An economic relationship implies a strategy of engaging the wider community into the core business activity of the company so that communities become embedded in corporate supply chain strategy to create a sustainable business.  McDonald’s at Canada At McDonald's Canada, we are committed to doing what is right, to being a good neighbour and a valued partner in every community in which we live and work. At McDonald's, giving back to the community is more than simply a commitment -- it is the foundation upon which our company has been built. These ongoing commitments are demonstrated through numerous McDonald's Canada activities. We are proud to support a wide range of programs and initiatives that benefit communities large and small right across Canada. Here in Canada and around the world, our major charitable commitment is to Ronald McDonald House Charities (RMHC). In addition to RMHC, McDonald's Canada also supports a wide variety of local community programs, initiatives that support the environment as well as animal welfare, all of which are highlighted in the 2006 Canadian Corporate Social Responsibility Report. Corporate Social Responsibility is the foundation upon which our company has been built. McDonald's founder, Ray Kroc, set a lasting example half a century ago by recognizing the importance of giving back to the communities in which we do business. At McDonald's Canada, we are proud to continue that tradition. Our Corporate Social Responsibility reports represent the evolution of McDonald's and the way we have adapted our business practices to meet the needs of the ever-changing world, understanding that while we are a local restaurant, our position as a global brand brings with it significant responsibilities. Corporate Social Responsibility is the foundation upon which the company has been built. McDonald's Corporation founder, Ray Kroc, set a lasting example half a century ago by recognizing the importance of giving back to the communities in which we do business. At McDonald's Canada, we are proud to continue the tradition. We have always been proactive leaders in our industry and will continue to evolve and improve our programs and practices to address emerging technologies, consumer wants, new global priorities and local developments. [19]
  • 20.  McDonald's and corporate social responsibility It is a mélange of homilies, generalities, and soft assurances that do not provide hard metrics of the company, its activities or its impacts on society and the environment. While movements towards corporate transparency and disclosure are to be applauded, there is little of either in the report. This is not a report about stakeholder rights, as McDonalds would have one believe. It is a report about how a corporation that's been severely stung by bad publicity, poor service, dirty restaurants, and declining earnings now wants to plead its case to its critics. It states that critics don't want to make things better, but it ignores what their critics care about. Instead, the McDonald's Social Responsibility Report is like Ronald McDonald: a fantasy. It presupposes that we can continue to have a global chain of restaurants that serves fried, sugary junk food produced by an agricultural system of monocultures, monopolies, standardization and destruction, and at the same time find a path to sustainability. Having worked in the field of sustainability and business for three decades, I can reasonably say that nothing could be further from the idea of sustainability than the McDonald's Corporation. 6. Mission Statement "McDonald's vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile." 7. Planning In planning phase we have define the following :  Goals McDonald’s needed to develop a worldwide enterprise system to reach all “McFamily” audiences including employees, franchises, suppliers and business partners. They also required improved publishing efficiencies through consistent global content management processes. This included the deployment of multiple sites with localized content using minimal resources. A system with extensive brand management and graphics capabilities was also needed to ensure consistent messaging and branding for all possible audiences. The solution also needed the flexibility to adapt to McDonald’s many future online plans.  FUTURE GOALS In the next few years, we aim to advance our balanced, active lifestyle efforts by:  Continuing to develop new menu offerings that provide our customers with a range of choices that correspond to their needs and preferences and can fit into a balanced diet [20]
  • 21.  Develop more Happy Meal choices, including new entrée offerings and non-carbonated beverages without added sugar.  Sticking to our timetable for phasing in our new nutrition information initiative for core packaging items  Continuing to assess, listen, learn and evolve our policies and marketing and communication practices so that we can continue our special regard for young people  Expanding our engagement with experts to ensure that we are guided by the best scientific information and insight  Vision ”A supply system that profitably yields high-quality, safe food products without supply interruption while creating a net benefit for employees, their communities, biodiversity, and the environment”  Objective “To satisfy the internal customers because they are the window to the external customers.”  Mission  I AM IN LOVE WITH IT.  Mission of MC DONONALD is to provide the customer fast food and  beverages with friendly services in clean and convenient location.  Challenges The new global system had to easily integrate McDonald’s existing applications (FileNet, Oracle, Integrity and Verity among others). With public and employee sites all over the world, the system also needed extensive multi lingual support. Standards compliancy and adaptability (XML, J2EE, etc.) were also important in McDonald’s decision to invest in Communiqué.  Recent Projects McDonald’s corporation has built a whole range of systems such as intranets, wireless applications or innovative kiosk systems, all based on Day’s Commu niqué. In their most recent initiative, the company migrated their global internet presence mcdonalds.com to our platform. This communication channel is, of course, a key element in McDonald’s global rollout of their new “I’m loving it” campaign. We are very proud of the fact that McDonald’s Corporation chosen Day [21]
  • 22. as the provider for this highly important, strategic initiative. This decision documents the strength, performance and reliability of our technology in business critical global content scenarios . 8. Organizing  Organizational Structure of McDonald’s McDonald's are structured along functional lines. Their Chief Executive oversees five major areas of activity: 1. Operations (equipment and franchising) 2. Development (property and construction) 3. Finance (supply chain and new product development) 4. Marketing (sales marketing) 5. Human Resources (customer services, personnel, hygiene and safety).  McDonald’s Structure in Pakistan The structural hierarchy of McDonalds Pakistan is as follows • Trainee Business Manager: The trainee business manager should have the right skills and qualities, in order to operate McDonald’s. • 2nd Assistant: At this level the second assistant really begins to develop his/her management skills and learns what goes into running a shift. • 1st Assistant: At this level the first assistant brings together operations and management skills and gets grip with finance, human resource and training. • Restaurant Manager: The restaurant manager has all responsibility for people, profitability and every other aspect of running the restraint. • Area Supervisor: A team of restaurant managers looks to the area supervisor for advice and guidance for everything from the recruitment of staff to local marketing initiatives. [22]
  • 23. • Operations consultant: As operations consultant is an experienced manager, he will be involved in the long term planning for the restaurants. • Operations manager: Acting as a business consultant, the input of an operations manager plays a major part in the performance of as many as 10 restaurants.  Programs of McDonald’s Every customer has some expectation from fast food restaurants and the restaurants try to make their environment according to their expectation. McDonald’s has a programmer of CHAMS, which are the six expectations of costumers from fast food restaurants.  Cleanliness.  Hospitality.  Accuracy.  Maintainins of facility.  Product quality.  Speed of services. 9. McDonald’s in PAKISTAN: MCDONALDS the world’s best quick service restaurant was introduced in Pakistan in the September 1998 at Lahore and now there are 20 restaurants of MCDONALDS in Pakistan in six major cities with a strong belief in the ray Kroch phrase when you are green you are growing. In Pakistan Mc Donald’s has an aggressive plan to expand its business in all other cities of the Pakistan. And in Pakistan it is focusing to provide friendly and quick services restaurants . This launch was met with unprecedented enthusiasm form the citizens of Lahore who are known for their liveliness, vigor and penchant for quality food. Today millions of Pakistanis place their trust in McDonald’s to provide them best quality food, quick service and value for money. World famous French fries, Big Mac, Quarter Pounder, Chicken McNuggets and egg McMuffin are not only kids' favorites but also lure in the customers of all ages. McDonald’s is firmly committed [23]
  • 24. to give back to the community where it operates. They are happy to become involved because they recognize that organizations have a role to play in helping communities to work successfully.  MARKETING MIX FOR MCDONALDS : In Pakistan MCDONALDS is try to manage all the four elements (4PS) of the marketing mix those are PRODUCT, PRICE, PLACE, and PROMOTION. MCDONALDS is trying to full fill the needs of 4ps to increase its revenues and profits and also market share as compare to the other fast restaurants in Pakistan. i. ELEMENT OF MARKETING MIX 1: Product of McDonald’s At first MCDONALDS original restaurants in San Bernardino California served only Ham burger, milk shakes, and French fries, But with the passage of time a large no of things are add in the menu of the MCDONALDS. MC Donald’s worldwide menu is broad similar to that of united states and the big Mac is a product of the McDonald’s which is available in whole world. McDonald’s is also providing their product according to the taste and cultural issues of the people of different region. For example, because the Pakistan is a Muslim country and in this country pork is not served due to Muslim dietary laws and the ham burger is called the beef burger.  Product of McDonald’s in whole world In the world Mc Donald’s is offering different product during Breakfast, lunch and dinner timing.  BURGER. Such as big Mac is the most important product of Mc Donald’s menu some other important type of burger, are flag ship burger, hamburger and cheese burger etc. Mc Donald’s is also providing chicken, fish and pork sand witches.  CHICKEN MC NUGGETS. They are introduced in 1983, these are small chicken chunks served with a dipping sauce available in 4,6,10,20 pieces they are made by white chicken strips introduced in 1955 for a limited time and offer again in 2003.  Other product  Fish Mac dipper. [24]
  • 25.  Mc Rib.  Mc Muffins (for breakfast).  Biscuits cookies.  Beverages. Mc Donald’s primary soft drinks supplies is coco Cola Company McDonald’s is offering also  Cold and hot iced coffee.  Hot and iced tea.  Hot chocolate.  Various juices.  Milk shakes.  Ice cream.  Desserts  Product in Pakistan: In Pakistan Mc Donald’s is offering different types of burgers nuggets, shapes, ice cream, French fries, platters etc. And in soft drinks coke products. In Pakistan Mc Donald’s is trying to introduce more and more product according to the taste of the people of Pakistan to attract more and more customers. 2:PRICE Price is the most important factor of the marketing mix because price counts much in the sale of the product. Mc Donald’s in Pakistan is also trying to adjust its prices according to the prices of other competitors in the fast food field. But the price of Mc Donald’s are little bit high as compare to the other competitors. The reason of high prices of Mc Donald’s is many such as costly location, superior services, high govt taxes etc. But the McDonald’s is also trying that its prices are not be too much high that people cannot afford it and most of Mc Donald’s product are also for the people of the high gentry on the basis of prices Mc Donald’s is offering different deals such as  Kids deals.  Family deals.  Lunch deals. [25]
  • 26.  Mid Night deals etc. 3: PLACEMENTS. McDonald’s restaurants are present about more than 120 countries and restaurants are increasing continuously. In the Pakistan there are about 20 restaurants of McDonald’s.  LOCATION IN PAKISTAN:  In the Lahore there are 8 branches of Mc Donald’s at the best location  1 in Faisalabad,  1 in the Rosalinda  1 in Rawalpindi  1 in Islamabad  1 in Hyderabad  7 branches in the Karachi. Mc Donald’s is trying open the restaurants at such location where there target customers can reached easily. The target customers of the McDonald’s are people of upper-upper class and upper – lower classes so most of branches are in upper class market and areas. Two best location of Mc Donald’s in Lahore are branches of Jail road near the race Course Park and Main Blue ward. 4:PROMOTION. Promotion is also an important factor of marketing mix. In the world the McDonald’s is using different sources for its advertisement and promotion. McDonald’s has for decades maintain an extensive advertising camping in addition to the usual media (Television, Radio, and News paper). The company makes significant use of bill board, and signage, sponsor, sporting events from ranging from little league to the Olympic game. None the less, television has always played a central role in the company’s advertising strategy. McDonald’s has used 23 different slogans in United States advertisement as well as a few other slogan for select countries and regions. McDonald’s is also doing advertisement for attracting the children because they are a main category of their customers and for this purpose they are making play group in each restaurants. This is also a good effort for the promotion. In the Pakistan McDonald’s use media excessively for the promotion for all the times especially when they introduced some product. For this purpose [26]
  • 27. they give ads in news paper, magazines and internet. They are not emphasizing on too much promotion in Lahore and Islamabad. Because they know that McDonald’s is famous already in these cities. They are paying more attention on small cities for their promotion. 10. Management Process McDonald’s management process has a lot to do with the following managerial steps. I. Planning A plan can play a vital role in helping to avoid mistakes or recognize hidden opportunities. Preparing a satisfactory plan of the organization is essential. The planning process enables management to understand more clearly what they want to achieve, and how and when they can do it. A well-prepared business plan demonstrates that the managers know the business and that they have thought through its development in terms of products, management, finances, and most importantly, markets and competition. Planning helps in forecasting the future, makes the future visible to some extent, it bridges between where we are and where we want to go. Planning is looking ahead. At McDonald’s, planning is done with great concentration keeping all the environmental aspects in view. Planning at McDonald’s is done before taking up every step like before entering into a new market. setting up a new franchise requires the management to look at the determinants of demand and supply in that particular region. Market resea rch is conducted by research and development department. A thorough survey is conducted about the demographics and behavioral aspects of the market’s potential customers. in Punjab acceptance level of fast food is higher than other provinces and so McDonald’s planning seeks to figure out the existing market trends in Punjab so to be in a better position to capitalize upon the opportunities. Consumers taste patterns and cultural variables are brought into consideration and then a decision is made which region McDonald’s should enter into and which area can be left alone. Apart from entering into new markets, existing markets are constantly under observations, and planning is done before launching any new product. The appropriate match between the consumers taste and product is judged by the management by product testing. R&D department takes the responsibility of such planning. Operational planning is another key area in McDonald’s. Plans are laid out while deciding about selection of suppliers. What resources McDonald’s should create for itself and which resources should be outsourced are planned out. Financial planning, as told by the McDonald’s management, is a vital area for its economic success. Finance department has hired qualified and skilled accountants who plan and approve of the marketing, HR and production budgets. All the planning done by finance department is sent to higher management for further study and approval. [27]
  • 28. II. Organizing Organizing at McDonald’s is done by every department on its own based on the activities performed. However mutual coordination and communication is intense so to keep the objectives of all the departments in alignment. McDonald’s management does organizing by work specialization to minimize the interference of unconcerned people which causes a delay in implementation of planning. For example, the finance department organizes its work among accountants, auditors, and forecasters. Marketing department has allocated certain tasks to certain people. Brand managers are there to work in association with R&D department to keep a check on brand performance by conducting brand audits and brand tracking. Regional managers are there to look at the regions sales, take the problems into account, taking immediate action within the authori ties, forwarding the problems to concerned authorities, for example if sales trend in a region goes down without overt reasons, brand management is informed to seek out the reasons and suggest solutions. Branch managers are made responsible for keeping command over operational activities. Customer cares, branch maintenance, secure transaction, security checks, and sustaining healthy environment is their responsibility. All of these activities are in mutual coordination and the interdepartmental mobile communication channel is held responsible for upholding the highest level of coordination among departments. III. Leading Every organization needs strong leaders who can lead the employees by motivating, guiding and directing them. McDonald’s has been blessed with efficient employees as ensured by its strong recruitment and selection policy. First of all the leadership qualities of a branch manager are vitally important for McDonald’s the ground staff who are in direct contact with customers need to be motivated i n order to deliver high service standards. The standardization of service criteria of McDonald’s requires high competencies of employees who are working close to the customer as they are the one who will please or displease a customer on the spot. So in this case the leadership quality of a branch manager comes out to be more important. He needs to guide, direct, and keep the staff motivated by setting high examples of commitment and professionalism. He has to be vigilant as well as tenacious for that. McDonald’s training and development staff ensures to transfer good leadership tactics to the branch managers. The managing director of McDonald’s holds special events and personally meets those employees who get the best performance awards at all 20 restaurants countrywide. This inspires [28]
  • 29. the ground employees to work harder and show high performance. Another way of leading is to set high performance standards. IV. Controlling Controlling becomes a vital phenomenon in an organization as grows larger and larger. With expanding resources and areas of business becoming bigger brings some serious concerns for management to keep control over all the facets of the organizational resources and dimensions of business. McDonald’s has become a multinational working in more than 100 countries and running more than 30,000 restaurants around the world. This is huge! Controlling in this case becomes a pulse for the business. There has to be a system in place for controlling factor and all the management has to be on its toes in order to make sure the smooth and right running of the business. McDonald’s in this area has excelled over the period of time feeling and realizing the need of having tight control over its resources and processes thereby providing the highest level of value to its precious customers. In controlling, McDonald’s emphasizes seriously on financial control. Budgets are allocated to critical success factors appropriately. For that the finance department works in coordination with marketing department. Marketing men pose recommendations to add value in its supply chain to get greater margins. Finance department then considers the feasibility of implementation of those recommendations from financial point of view. For that the financial analysts and chartered accountants are there. Finance department again asks marketing department to review the recommendation and points out the key areas where cost can be controlled. Marketing then again analyses the situation and ponders upon the areas which can be foregone to come in balanced state where maximum value can be created for appropriate costs. Once the budgets are made with areas defined, the execution patterns are transferred through high communication to lower levels where the actual work has to be done. if the budgets are not communicated properly, there is a high chance of misallocation of financial resources and hence mismanagement. Head of marketing takes over the matters and senior marketing executive and marketing executives are given the charge. They ensure the right use of budgets. If something goes wrong on lower level or even on the same hierarchy, respective personals take actions. Operational controls in another area where serious emphasis has to be made. McDonald’s delivers the faster burger and other foods delivery to its customers. for that efficiency has to be achieved through proper operations and deployment of skilled employees. Customers concerned are directly conveyed to branch manager who takes on the steps to rectify the matter. No one has to be slack. This is the key. Everyone on the job has to put on the socks. Improvements in operations are constantly made through proper control. For that right training has to be given to the employees. At McDonald’s, training and development of employees is a vi tal hand of gaining control over operations. If the employees are rightly trained, they will function in the most efficient manner. Human resource management requires control as well. Having to know [29]
  • 30. the right requirement of human resources depends on the right forecasting of personals. The right selection and recruitment is done through tough criterion. Once the selection is done, controlling comes into play by providing the employees with right compensation and keeping an eye on their training needs. Training and development department is constantly responsible for providing training. 11. Human Resource Management(HRM). I. HRM in McDonald’s McDonald’s is divided in to five regions in the world, which are further divided into sub regions. As this organization is internationally owned, so all its decision is taken from the head office, but they are somehow changed to suit the different cultural backgrounds of the region. As an organization is known by its well groomed and intelligent staff at to support and maintain its best quality at every level, So McDonald is also very careful when hiring for an employee. For that reason, its HR department is very efficiently working to make sure the best is hired. Here 95%of the workforce is restaurant based while 5%of it is in the official running of the organization. I. Equal Employment Opportunity Laws McDonalds is a responsible company, who believes on EEO laws and is an equal opportunity employer committed to a diverse work force. McDonalds might be a global business but it is made up of individuals, everyone of whom brings their own unique skills and qualities to the team. There is no limit to how far you can progress here without gender discrimination. II. Job Analysis As HR activities grow in scope and complexity, many duties, such as recruitment and selection, performance appraisals, training, discovering unassigned duties are delegating to the HR department. But HR specialist does not know the details of job as well as operating managers do. Knowledge about job and their require ment must be collected through a process known as job analysis. III. Job Description Candidate Profile: MBA / PGDBA with specialization in Marketing must be willing to travel. Must have 2-4 years of experience in the areas mentioned below preferably from the retail industry. [30]
  • 31. Job description: Identify priority restaurants, develop sales building plans and evaluate results for priority restaurants, map business opportunities and challenges for restaurant, event marketing, assist with the development of mini-market marketing plans, provide input on marketing needs from customer viewpoint, monitors the proper execution and impact of all marketing activities. IV. Recruitment: There are two types of recruitment. McDonald’s corporation fills its positions by. Internal sources External sources Types of recruitment: Internal sources Filling open positions with current employees are often best source of candidates. At Macdonald’s job posting technique is used which means it publicizes an open job to employees (often by literally posting it on intranets and bulletin boards) and listing the job’ attributes like qualification, work schedule and pay rates External sources Eternal sources used by McDonald’s are: Advertisement in Newspapers: Advertisements are done in all the leading papers so that every eligible candidate can apply for the job. Advertisement on Web Site: Sometimes advertisement is also done on website so that the opportunity can’t be missed by anyone. Internships Sometimes students get jobs while doing internship in McDonald. V. selection At McDonald’s, people are the most important factor. They seek only those people, who can think, feel, express themselves, learn, teach and hence grow. Their growth is the company’s growth [31]
  • 32. Fresh People McDonald’s provides thorough In-house training to fresh people relatively inexperience people. Hiring people having no previous work experience also helps them greatly in adjusting to the distinct culture of the organization. Justified Selection The selection is entirely based on merit, which conform the selection criteria without any bias towards gender, religion, race, color, nationality, age. VI. Selection Process: After advertising for the job in the papers or in any other way when applications are received, these steps are followed: Screening of Applicants After building a pool of candidate’s applications, short listing of selective applications is done by the HR manager. Written Test The reason for the written test is to assess that whether the recruits are able enough to fulfill the general practical requirements of the job. The HR department designs and conducts the tests as and when hiring needs arises. Initial Interview The ONE to ONE structured interviews are conducted by Restaurant Manager after the written test. Aptitude Tests These are those tests, which are done for the training managers. Reference Checks They are to make sure that references provided by the candidates are valid so that no confusion remains. Final Interview Candidates who give the best results are called for the final interview. A panel of five or six interviewers does interview. [32]
  • 33. II. SWOT ANALYSIS i. STRENGHTS Global brand McDonald’s has a well-established global brand that appeals to all age groups and customer segments. In 2005, McDonald’s placed ninth in the top 100 global brands ranking of Business Week magazine and Interbrand, a branding consultancy. Strong operational capabilities McDonald’s has strong operational capabilities which allow it to provide high quality products and customer service across its restaurants. The company has a world-class supply-chain and standardized processes to deliver products of uniform quality across restaurants, regardless of their location or nature of operation (company-owned or franchisee-operated). The company and its partners purchase food and related items from an approved group of suppliers. [33]
  • 34. Successful items Some of its products such as Big Mac, and Chicken McNuggets and have become brands in their own right. Strong brand draws customers to the company’s restaurants and provides it with a recognized ’brand currency’ in new markets. Quality Products McDonalds is the symbol of quality with respect to its offering. ii. WEAKNESS Weak revenue growth Low revenue growth suggests that the company has not been able to expand customer traffic at existing restaurants thanks mainly to the maturation and saturation of its key markets. Weak product development McDonalds faces a strong competition and its weak product development creates problem. iii. OPPORTUNITIES Expansion McDonalds is serving only in few cities of Pakistan. There is a large market for McDonalds still to serve. Furthermore it has few outlets within cities in which it is currently serving, so McDonalds also has opportunity to expand within cities. Franchisee-operated restaurants McDonald’s intends to sell about company-operated restaurants in the Pakistan to franchisees. The operating margin of franchisee-operated restaurants is higher than that of company-operated restaurants. The sale of company-operated restaurants to franchisees is likely to increase the overall profitability of McDonald’s Pakistan’s business. Growing dining-out market As the lifestyle trends of consumers are changing, the dining out market is growing, that would serve as an opportunity for the McDonalds iv. THREATS Intense competition [34]
  • 35. McDonald’s restaurants face intense competition from international, national, regional and local retailers of food products. The company competes on the basis of price, convenience, service and quality of food products. The company’s competition includes restaurants, quick service eating establishments, pizza parlors, coffee shops, street vendors, convenience food stores, delicatessens and supermarkets. Growing health consciousness As the education level in Pakistan has increased in last few years, health consciousness has also increased .A growing consciousness of health matters could reduce McDonald’s revenues Increased Sales Tax Sales tax has increased which results in the increased customer prices and reduced sales level. [14] I. BCG Matrix [35]
  • 36. References 1. McDonald's publication. "Corporate FAQ". McDonald's Corporation. http://www.mcdonalds.ca/en/aboutus/faq.aspx. Retrieved 2007-11-24. a bcd e 2. Overview of McDonald's key financial metrics via Wikinvest, retrieved 9/28/2009 3. Joe Bramhall. "McDonald's Corporation". Hoovers. http://www.hoovers.com/mcdonald's/-- ID__10974--/free-co-factsheet.xhtml. Retrieved 2009-03-25. 4. "www.breitbart.com/article.php?id=CNG.aec4920fe8094fdd0baaeab2ed126bf1.741&show _article=1". http://www.breitbart.com/article.php?id=CNG.aec4920fe8094fdd0baaeab2ed126bf1.741 &show_article=1. 5. "Chipotle, McDonald's Complete Separation". http://phx.corporate- ir.net/phoenix.zhtml?c=194775&p=irol-newsArticle&ID=916004&highlight. 6. "MCD 10-K 2007, Item 1, pg. 1". http://www.shareholder.com/mcd/EdgarDetail.cfm?CIK=63908&FID=1193125-08- 37220&SID=08-00#D10K_HTM_TOC84398_8. 7. "MCD 10-K 2007, Item 6, pg. 9". http://www.shareholder.com/mcd/EdgarDetail.cfm?CIK=63908&FID=1193125-08- 37220&SID=08-00#D10K_HTM_TOC84398_8. 8. "McDonald's history 1954-1955". www.mcdonalds.com. http://www.mcdonalds.com/corp/about/mcd_history_pg1.html. Retrieved 2008-06-22. 9. "McDonald's history 1965-1973". www.mcdonalds.com. http://www.mcdonalds.com/corp/about/mcd_history_pg1/mcd_history_pg3.html. Retrieved 2008-06-22. 10. McDonaold's history from Route-66.com[dead link] 11. ab http://www.mcdonalds.ca/en/aboutus/faq.aspx, retrieved May 8, 2008 12. Brand, Rachel. (2006-12-23) "Chipotle founder had big dreams" Rocky Mountain News. retrieved on 2009-10-07. 13. "McDonald's sets October deadline to sell Chipotle stock". Denver Business Journal. BizJournals.com. July 25, 2006. http://denver.bizjournals.com/denver/stories/2006/07/24/daily20.html. Retrieved 2009- 08-10. 14."McDonald's Wraps Up Boston Market Sale". Dow Jones & Company, Inc. News Services. 2007-08-27. http://www.smartmoney.com/bn/ON/index.cfm?story=ON- 20070827-000332-1731&hpadref=1. Retrieved 2007-08-28. [36]