“One world, One Burger” McDonald’s 2|Page
CERTIFICATE
This is to certify that this project “” is the original work of ANKIT MEHTA MEHTA of BBA III Semester Semester – A Section (Morning) (Morning) who has completed this project under my guidance. This project has not been submitted as a part of any other degree or course to any other university.
(Prof. P.K. Mukherjee) Project Guide
ACKNOWLEDGEMENT 3|Page
CERTIFICATE
This is to certify that this project “” is the original work of ANKIT MEHTA MEHTA of BBA III Semester Semester – A Section (Morning) (Morning) who has completed this project under my guidance. This project has not been submitted as a part of any other degree or course to any other university.
(Prof. P.K. Mukherjee) Project Guide
ACKNOWLEDGEMENT 3|Page
Doing my Minor Project has been a great learning experience for me, as it provided me with an opportunity to study and understand various issues and concepts related to the brand MCDONALDS. But this would not have been possible without the help, co-operation and guidance of my guide Prof. P.K. Mukherjee . I am indeed grateful to my guide for providing me necessary guidance and facility required for completion of the project and for being an effective source of inspiration.
ANKIT MEHTA
TABLE OF CONTENTS •
INTROUCTION INTROUCTION TO MCDONALDS MCDONALDS
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COMPANY PROFILE
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HISTORY OF MACDONALDS MACDONALDS
6 7-9 10-17 4|Page
MCDONALDS MCDONALDS AS SMALL SCALE CORPORATION CORPORATION IN BEGGINING BEGGINING
18-20
AT INTERNATIONAL INTERNATIONAL LEVEL
21-27
PRODUCTIVITY PRODUCTIVITY AND QUALITY
28-33
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MARETING STYLE:ADVERTISMNT STYLE:ADVERTISMNT
34-40
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HUMAN FORCE
41-45
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FINANCIAL ARENA
46-55
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IMPORTS &EXPORTS
56-58
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CORPORATE SOCIAL RESPONSIBILITY RESPONSIBILITY
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MCDONALDS MCDONALDS IN INDIA
65-69
MCDONALDS MCDONALDS AND ITS COMPETITORS COMPETITORS o BURGR KING o SUBWAY
70-73
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59-64
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METHODOLOGY
74
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CONCLUSION
75
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GALLERY
76-79
INTRODUCTION 5|Page
Although the realm of accounting and finance has often been viewed as dull ‘bean counting’, in today’s modern and competitive business environment, the finance department should be at the heart of any company, encompassing a variety of functions that go beyond its traditional financial reporting role. While it is still a priority for accountants to ensure a company’s financial statutory accounts meet legal requirements, dynamic companies such as McDonald’s have shifted the focus of their accounting and finance function to additionally include the evaluation of past performance and appraisal of future opportunities, helping to ensure the company maximises its strategic capabilities. McDonald’s Restaurants UK Limited, a wholly owned subsidiary of the U.S. parent company, opened its first UK restaurant in Woolwich in 1974. There are now 1,200 restaurants operating in the UK which, despite representing only 4% of the total number of McDonald’s restaurants worldwide, contribute 7% of global profits, making the UK a very important financial market for McDonald’s shareholders. McDonald’s understands the value of an integrated accounting and finance function, extending from the restaurant floor up to the board of directors. Each individual McDonald’s restaurant is structured as an independent business, with restaurant management responsible for its financial performance, supported by the centralised Accounting & Finance department.
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COMPANY PROFILE
McDonald's is the leading global foodservice retailer with more than 33,000 local restaurants serving more than 64 million people in 119 countries each day. More than 80% of McDonald's restaurants worldwide are owned and operated by independent local men and women.
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McDonalds is a leader in convenient foods and beverages, with revenues of about $23 billion and over 1.6 million employees serving the customer’s world wide. The company consists of the snack business of Beverages and Foods. PepsiCo brands are available in nearly 115 countries having more than 24,500 restaurants in the world providing 24 hour service , having about 1 billon customers to be served all over the world.
McDonalds’s success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of our people. McDonalds is continuing to expand and introduce new alternative beverages in the market. Approximately 85% of McDonald’s restaurant businesses world-wide are owned and operated by franchisees .All franchisees are independent, full-time operators. McDonald’s was named Entrepreneur’s Number-one franchise for 1997 Our mission is to be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity you could now join our team. Greater variety and quality choices surprise and delight customers with the food and beverage they desire. McDonald’s corp. is currently one of the most successful consumer products company in the world with annual revenues exceeding $23 million and has more than 1.6 million employees.
McDonald’s products are recognized and are most respected all around the globe. Currently, its divisions operate in all over the world in beverages, snack foods, and restaurants. The corporations increasing success has been based on high standards of performance, marketing strategies, competitiveness, determination, commitment, and the personal and professional integrity of their people, products and business practices. 8|Page
McDonald’s believes their success depends upon the quality and value of their products by providing a safe, whole some, economically efficient and a healthy environment for their customers; and by providing a fair return to their investors while maintaining the highest standards of integrity.
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HISTORY OF McDonalds.
The
McDonald's History - 1954 to 1955
Raymond Albert Kroc 1902-1984, A Salesman
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Ray Kroc mortgaged his home and invested his entire life savings to become the exclusive distributor of a five-spindled milk shake maker called the Multimixer. Hearing about the McDonald's hamburger stand in California running eight Multimixers at a time, he packed up his car and headed West. It was 1954. He was 52 years old.
Dick and Mac McDonald's Restaurant, San Bernardino, California Ray Kroc had never seen so many people served so quickly when he pulled up to take a look. Seizing the day, he pitched the idea of opening up several restaurants to the brothers Dick and Mac McDonald, convinced that he could sell eight of his Multimixers to each and every one. "Who could we get to open them for us?" Dick McDonald said. "Well," Kroc answered, "what about me?"
Where it all began, Des Plaines, Illinois Ray Kroc opened the Des Plaines restaurant in 1955. First day's revenues-$366.12! No longer a functioning restaurant, the Des Plaines building is now a museum containing McDonald's memorabilia and artefacts, including the Multimixer!
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McDonald's History - 1956 to 1963
100 million sold McDonalds sold it 100 millionth hamburgers. Ray Kroc at work.
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"If you've got time to lean, you've got time to clean," Ray Kroc preached to his troops. Heeding his own words, here the Chairman of the Board cleans the parking lot of the first McDonald's franchise in Des Plaines, Illinois.
Ronald McDonald, In Any Language He Means "Fun!" "The smile known around the world," In his first TV appearance in 1963 the happy clown was portrayed by none other than Willard Scott.
Fred Turner And Ray Kroc, Architects Of A Dream Here Ray Kroc (right) and Fred Turner study the design which would replace the red and white tile buildings that had become landmarks throughout the U.S. Called Kroc's first "grill man extraordinaire," Turner is today Senior Chairman of the Board.
The McDonald's History - 1965 to 1973 McDonald's Comes To Wall Street
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In 1965 McDonald's went public with the company's first offering on the stock exchange. A hundred shares of stock costing $2,250 dollars that day would have multiplied into 74,360 shares today, worth approximately $3.3 million on December 31, 2006. In 1985 McDonald's was added to the 30company Dow Jones Industrial Average.
A Big Idea Called "Big Mac" "Introduced systemwide in 1968, the Big Mac was the brainchild of Jim Delligatti, one of Ray Kroc's earliest franchisees, who by the late 1960s operated a dozen stores in Pittsburgh."
The Egg McMuffin Introduced in 1973, the Egg McMuffin was developed by owner operator Herb Peterson.
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The First Ronald McDonald House in Philadelphia, PA In 1974 Fred Hill of the Philadelphia Eagles teamed up with McDonald's to create Ronald McDonald House. Here the families of critically ill children have a place to call home while they're away from home as the young patients undergo treatment for their conditions.
The Happy Meal Since 1979 the Happy Meal has been making kids visits that much more special. Clubs the world over collect Happy Meals toys and boxes.
The Future Begins Now McDonald's Express for a world that can't slow down!. McDonald's is popping up in more nontraditional locations like Amoco and Chevron stations, with full menu offerings and dining room seating, just like you'll find in a traditional McDonald's.
The McDonald's History - 1987 to 1997 FRESH SALES ADDED 14 | P a g e
Freshly tossed salads are added to the McDonald’s national menu.
THE FAMOUS HAMBURGERS
Fortune magazine names McDonald’s hamburgers among the 100 products America makes best.
HAVE YOU HAD YOUR BREAKFAST TODAY?
The new advertising theme “have you had breakfast today?”debuts.
The McDonald's HISTORY -2003 TO 2010 15 | P a g e
PREMIUM SALADS ADDED McDonalds”s premium salads are added to the national menu.
50TH ANNIVERSARY McDonald’s celebrates its golden jubilee.
McCAFE REAL FRUIT SMOOTHIES AND FRAPPES
Smoothies and mocha are now available.
FACTS & FIGURES
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1.6million Restaurant employees System wide dedicated to serving our customers
540million Snack Wraps were sold in 2007
24,500 Restaurants around the world offer extended or 24-hour service
1billion More customers were served in 2007 than in 2006
115 Countries participated in one of McDonald’s most successful promotions ever – Our tie-in with DreamWorks’ Shriek the Third™
ANALIYSIS ON MCDONALDS AS A SMALL 17 | P a g e
SCALE CORPORATION IN THE BEGINNING.
McDonald’s is one of the leading restaurant chains in the world, touching the lives of people everyday. The long journey of the burger brand started in 18 | P a g e
1940, when two brothers, Dick and Mac McDonald opened the first McDonald’s restaurant in San Bernardino, California. Initially, they owned a hotdog stand, but after establishing the restaurant they served around 25 items, which were mostly barbequed. It became a popular and profitable teen hangout. In 1948, the brothers closed and reopened the restaurant to sell only hamburgers, milkshakes and French fries.
As per the information of the McDonald’s history, the major revenue came from hamburgers, which were sold at a nominal price of 15 cents. The restaurant gradually became famous and the McDonald brothers begin franchising their restaurant in the year 1953. The first franchise was taken by Neil Fox and under it; the second Mc Donald’s restaurant was opened in Fresno, California. It was the first to introduce the Golden Arch design. The third and fourth restaurants were opened in Saginaw, Michigan and Downey, California, respectively.
The business began in 1940, with a restaurant opened by siblings Dick and Mac McDonald in San Bernardino, California. Their introduction of the "Speedee Service System" in 1948 established the principles of the modern fast-food restaurant. The original mascot of McDonald's was a man with a chef's hat on top of a hamburger shaped head whose name was "Speedee." Speedee was eventually replaced with Ronald McDonald in 1963.
The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc, in Des Plaines, Illinois on April 15, 1955 , the ninth McDonald's restaurant overall. Kroc later purchased the McDonald brothers' 19 | P a g e
equity in the company and led its worldwide expansion and the company became listed on the public stock markets in 1965. Kroc was also noted for aggressive business practices, compelling the McDonald's brothers to leave the fast food industry. The McDonald's 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.
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.
ANALIYSIS ON MCDONALDS 20 | P a g e
CORPORATION AT INTERNATIONAL LEVEL.
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McDonald's International through its wholly owned subsidiary McDonald's India entered into two JVs, one with Connaught Plaza Restaurants Pvt. Ltd. in the Northern & Eastern region and another with Hard Castle Restaurants Pvt. Ltd. in the Western & Southern region. 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 restaurant brands, such as Piles Café, and has a minority stake in Prêt a Manger . The company owned a majority stake in Chipotle Mexican Grill until completing its divestment in October 2006. Until December 2003, it also owned Donators’ Pizza. On August 27, 2007, McDonald's sold Boston Market to Sun Capital Partners
Most standalone McDonald's restaurants offer both counter service and drive-through service, with indoor and sometimes outdoor seating. Drive-Thru, Auto-Mac, Pay and Drive, or McDrive as it is known in many countries, often has separate stations for placing, paying for, and picking up orders, though the latter two steps are frequently combined; it was first introduced in Arizona in 1975, following the lead of other fast-food chains. In some countries "McDrive" locations near highways offer no counter service or seating. In contrast, locations in high-density city neighborhoods often omit drive-through service. There are also a few locations, located mostly in downtown districts that offer Walk-Thru service in place of Drive-Thru. Especially themed restaurants also exist, such as the "Solid Gold McDonald's," a 1950s rock-and-roll themed restaurant. In Victoria, British Columbia, there is also a McDonald's with a 24 carat (100%) gold chandelier and similar light fixtures.
Each McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself. The corporations' revenues come from the rent, 22 | P a g e
royalties and fees paid by the franchisees, as well as sales in companyoperated restaurants..
Individual franchise arrangements generally include a lease and a license and provide for payment of initial fees, as well as continuing rent and royalties to the Company based upon a percent of sales with minimum rent payments that parallel the Company’s underlying leases and escalations (on properties that are leased). McDonald’s franchisees are granted the right to operate a restaurant using the McDonald’s System and, in most cases, the use of a restaurant facility, generally for a period of 20 years. Franchisees pay related occupancy costs including property taxes, insurance and maintenance. In addition, in certain markets outside the U.S., franchisees pay a refundable, non interest-bearing security deposit. Foreign affiliates and developmental licensees pay a royalty to the Company based upon a percent of sales, as well as initial fees. The results of operations of restaurant businesses purchased and sold in transactions with franchisees, affiliates and others were not material to the consolidated financial statements for periods prior to purchase and sale.
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Restaurants are found in more than 119 countries. Serve nearly 50 million customers each day. Solid Gold McDonald's," a 1950s rock-and-roll themed restaurant" Each McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself. The results of operations of restaurant businesses purchased and sold in transactions with franchisees, affiliates and others were not material to the consolidated financial statements for periods prior to purchase and sale.
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ANALIYSIS ON MCDONALDS GLOBAL OPERATIONS
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McDonald's has become emblematic of globalization, sometimes referred to as the "McDonaldization" of society. The Economist newspaper uses the "Big Mac Index": the comparison of a Big Mac's cost in various world currencies can be used to informally judge these currencies’ purchasing. Norway has the most expensive Big Mac in the world as of July 2011, while the country with the least expensive Big Mac is India (albeit for a Maharaja Mac—the next cheapest Big Mac is Hong Kong).[62] Thomas Friedman once said that no country with a McDonald's had gone to war with another. However, the "Golden Arches Theory of Conflict Prevention" is not strictly true. Exceptions are the 1989 United States invasion of Panama, NATO's bombing of Serbia in 1999, the 2006 Lebanon War , and the 2008 South Ossetia war . Some observers have suggested that the company should be given credit for increasing the standard of service in markets that it enters. A group of anthropologists in a study entitled Golden Arches East looked at the impact McDonald's had on East Asia, and Hong Kong in particular. When it opened in Hong Kong in 1975, McDonald's was the first restaurant to consistently offer clean restrooms, driving customers to demand the same of other restaurants and institutions. McDonald's have recently taken to partnering up with Sinopec, the second largest oil company in the People's Republic of China, as it begins to take advantage of the country's growing use of personal vehicles by opening numerous drive-thru restaurants. McDonald’s has opened a McDonald's restaurant and McCafé on the underground premises of the French arts museum, the Louvre. McDonald's has started to offer free wireless Internet access in many countries McDonald's is the largest chain of fast food restaurants in the world. It has more than 33,000 outlets worldwide. The list of countries follows the company's own calculation, and contains several non-sovereign territories.
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EXAMPLARY: country
date
First outlet location
United States Canada
May 15, 1940
San Bernardino, California. Richmond, British Columbia. Tokyo Zaandam
June 1, 1967
Japan July 20, 1971 Netherlands August 21, 1971 Germany November 22, 1971 Australia May 30, 1971 England, UK China India
October 1, 1974 October 8, 1990 October 13, 1996 [
Number of currently operating outlets 13,381 1,400 3,598 225 1,361
Yangon, 780 New South Wales Woolwich, London 2,600 Shenzhen
850
Delhi
192
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Recognized
Premier Franchising Company
McDonald's continues to be recognized as a premier franchising company around the world. Over 75% of their restaurants worldwide are owned and operated by their Franchisees. The following publications consistently recognize McDonald's as a top franchisor: Entrepreneur Magazine – Every year, Entrepreneur Magazine lists its Franchise 500. Over the last several years McDonald’s has been recognized as one of the Top 10 Franchises. •
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Franchise Times Magazine – McDonald’s has been ranked #1 on its list of top 200 franchises.
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USA Today – McDonald’s has been selected by the National Minority Franchise Initiative (NMFI) as one of the 50 Top Franchises for Minorities.
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Black Enterprise Magazine – McDonald’s was listed as one of the 40 best Franchises for African Americans.
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Analyzing MCDONALDS PRODUTIVITY & QUALITY.
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The site of the first McDonald's to be franchised by Ray Kroc is now a museum in Des Plaines, Illinois. The building is a reproduction of the original, which was the ninth McDonald's restaurant.
To accommodate the current trend for high quality coffee and the popularity of coffee shops in general, McDonald's introduced McCafés. The McCafé concept is a café-style accompaniment to McDonald's restaurants. McCafé is a concept of McDonald's Australia, starting with Melbourne in 1993. Today, most McDonald's in Australia have McCafés located within the existing McDonald's restaurant. In Tasmania there are McCafés in every store, with the rest of the states quickly following suit. After upgrading to the new McCafé look and feel, some Australian stores have noticed up to a 60% increase in sales. As of the end of 2003 there were over 600 McCafés worldwide.
Some locations are connected to gas stations/convenience stores, while others called McDonald's Express have limited seating and/or menu or may be located in a shopping mall. Other McDonald's are located in Wal-Mart stores. McStop is a location targeted at truckers and travelers which may have services found at truck stops. McDonald's announced on May 22, 2008 that, in the U.S. and Canada, it will be introducing cooking oil for its French fries that contain no trans fats. The company will use canola-based oil with corn and soy oils by year's end for its baked items, pies and cookies.
In a bid to tap into growing consumer interest in the provenance of food, the fast-food chain recently switched its supplier of both coffee beans and milk. UK chief executive Steve Easterbrook said: "British consumers are increasingly interested in the quality, sourcing and ethics of the food and drink they buy". McDonald's coffee is now brewed from beans taken from stocks that have been certified by the Rainforest Alliance, a conservation group. Similarly, milk supplies used for its hot drinks and milkshakes have been switched to organic sources which could account for 5% of the UK's organic milk output. The company has also expanded the McDonald's menu in recent decades to include alternative meal options, such as salads and 29 | P a g e
snack wraps, in order to capitalize on growing consumer interest in health and wellness. McDonald's predominantly sells hamburgers, various types of chicken sandwiches and products, French fries, soft drinks, breakfast items, and desserts. In most markets, McDonald's offers salads and vegetarian items, wraps and other localized fare. This local deviation from the standard menu is a characteristic for which the chain is particularly known, and one which is employed either to continue by regional food taboos (such as the religious prohibition of beef consumption in India) or to make available foods with which the regional market is more familiar (such as the sale of Mc Rice in Indonesia). There have been continuous efforts to enhance variety in the menu by developing more such products. McDonald's has also re-engineered its operations repeatedly in its 11 years in India to address the special requirements of a vegetarian menu. Vegetable products are 100% vegetarian; they are prepared separately, using dedicated equipment and utensils. Only pure vegetarian oil is used as a cooking medium. Cheese and sauces are completely vegetarian and egg less. Separation of vegetarian and non-vegetarian food products is maintained throughout the various stages of procurement, cooking and serving.
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Giving their customers quality, Choice and value
Whether it’s a quick breakfast, lunch on the go or dinner with the kids, customers come to McDonald’s for quality food at a great value. Its goal is to continuously improve their classic offerings and increase the number and variety of new options that deliver the great taste and balance their customers seek. In addition to an evolving array of menu items, they also offer many ways for customers to learn about the nutrition information of their food. They pay particular attention to their offerings for children and how they communicate about them to both children and their parents. With guidance from their Global Advisory Council (GAC), they Continue to evolve their overall approach, while supporting their individual markets in meeting the specific needs and requirements of their local cultures and governments. Since 2004, the GAC has provided McDonald’s guidance on key areas such as global nutrition labeling, McDonald’s “what I eat, what I do” children’s well-being platform, the development of internal metrics to gauge their progress, and approaches for motivating children to eat more fruits & vegetables.
Feature: Farm to Front Counter The taste & quality of every McDonald’s menu items starts with its integrants-where they are sourced, how they are handled and, ultimatelyhow they are prepared in the restaurant. They focus on every aspect of this journey in order to ensure quality and safety, work towards greater sustainability and continuously create opportunities for people and communities-all while delivering a great value to customers.
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Taking potatoes as one example From field to freezer to fryer, McDonald’s potatoes are on a sustainability journey of their own. They work with their suppliers to incorporate sustainable practices at all stages of the supply chain and to ensure that each potato meets their high standards of quality, safety, appearance and taste.
AT FARM STAGE
Potatoes are planted, grown and harvested in farms around the world in keeping with a set of good agricultural practices (GAP) developed by McDonald’s employees, suppliers and outside consultants
AT PRODUCION STAGE
Potatoes arrive and are washed, peeled, washed again and inspected for blemishes. Potatoes are then cut into shoestring-style strips that are inspected, and then blanched in hot water to preserve texture. After drying, the potato strips are partially fried, then frozen and packaged for transport to McDonald’s Distribution Centers.
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AT RESTAURANTS
Fries are delivered to restaurants and stored in the freezer until use. Fries are then cooked, salted and served crisp, hot and fresh to customers.
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ANALIYSIS ON MCDONALDS ADVERTISEMENT
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McDonald's has for decades maintained an extensive advertising campaign. In addition to the usual media (television, radio, and newspaper), the company makes significant use of billboards(outdoors, on which large advertisements or notices are posted.) and signage, sponsors sporting events from ranging from Little League to the Olympic Games, and makes coolers of orange drink with their logo available for local events of all kinds. Nonetheless, television has always played a central role in the company's advertising strategy.
Over the years, McDonald's has developed TV advertising campaigns that have become, like McDonald's, a part of our lives and culture. McDonald's commercials have focused not only on product, but rather on the overall McDonald's experience, portraying warmth and a real slice of every day life. This "image" or "reputation" advertising has become a trademark of the company and created many memorable television moments and themes.
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McDonald's has for decades maintained an extensive advertising campaign. sponsors sporting events from ranging from Little League to the Olympic Games. , television has always played a central role in the company's advertising strategy. McDonald's commercials have focused not only on product, but rather on the overall McDonald's experience, portraying warmth and a real slice of everyday life.
FEW MEMORABLE ARE :
-McDonald's is Your Kind of Place (1967) - You Deserve a Break Today (1971) - We Do it All for You (1975) Twoallbeefpattiesspecialsaucelettucecheesepicklesonionsonasesamesee dbun (1975) -
- You, You're The One (1976) -Nobody Can Do It Like McDonald's Can (1979)
-Renewed : You Deserve a Break Today (1980 & 1981) - Nobody Makes Your Day Like McDonald's Can (1981)
- McDonald's and You (1983) - It’s a Good Time for the Great Taste of McDonald's (1984) 36 | P a g e
-Good
Time, Great Taste, That's Why This is My Place
(1988) -Food, Folks and Fun (1990) - McDonald's Today (1991) -What You Want is What You Get (1992)
-Have you Had your Break Today? (1995) -My McDonald's (1997) - Did Somebody Say McDonald's (1997) - We Love to See You Smile(2000) -There's a little McDonald's in Everyone (2001) - Canada Only
- I’m lovin' it (2003)
McDonaldland
McDonaldland was a fantasy world used in the marketing for McDonald's restaurants. It was based on the "total concept and feel" of Sid and Marty Krofft's H.R. Pufnstuf television program. [1] McDonaldland was inhabited by Ronald McDonald and other characters. In addition to being used in advertising, the characters were used as the basis 37 | P a g e
for equipment in the playgrounds attached to some McDonald's. McDonaldland and the supporting characters have been abandoned in their marketing, but Ronald McDonald is still seen in commercials and in Happy Meal toys.
Ronald McDonald
Ronald McDonald is a clown character used as the primary mascot of the McDonald's fast-food restaurant chain. In television commercials, the clown inhabits a fantasy world called McDonaldland, and has adventures 38 | P a g e
with his friends Mayor McCheese, the Ham burglar, Grimace, Birdie the Early Bird, and The Fry Kids. In recent years, McDonaldland has been largely phased out, and Ronald is instead shown interacting with normal kids in their everyday lives
MAKING FRUITS AND VEGETABLES FUN
In May 2010, McDonald’s launched a Global Happy Meal promotion featuring the characters from DreamWorks’ Shrek Forever After. The 39 | P a g e
promotion ran in the majority of our major markets and was translated into nine languages. Advertising and packaging featured fruit, vegetable and dairy items such as carrots, apple slices or milk. There were also interactive games such as a pop-out Puss in Boots who makes drinking milk more fun.
McDonald's Marketing Guidelines
Talking with kids about food and nutrition is a responsibility that McDonald's takes seriously. We have our own global Children's Marketing Guidelines that include the following commitments: •
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Communicating balanced food choices that fit within a child's nutritional needs Using licensed characters and properties to encourage activity and balanced food choices for children to make food, such as fruit and vegetables, fun to eat
Promoting positive messages that support their well-being - mind, body and spirit Providing nutrition information on our food to help parents and families make informed choices 40 | P a g e
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Engaging the support of experts and informed third parties to help guide our efforts for children and families worldwide
MCDONALDS HUMAN FORCE
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People make the difference at McDonald’s
McDonald’s and its independent franchisees employ more than 1.6 million people worldwide – they are the face of our brand and differentiate us from the competition. Our continued success requires that we develop and retain a diverse, engaged and talented workforce. We must do this in a range of cultural environments and in the face of often negative perceptions of working in the quick service industry. That’s why we focus our people programs and policies on three priority areas: respect and inclusion, Employee Value Proposition (EVP) and talent management.
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EMPLOYEE BENEFIT PLANS
The following information highlights McDonald's benefits for Staff (e.g., home office, division or region office) employees. McDonald's benefits program is designed to attract, retain and engage talented people who deliver strong performance and help McDonald's achieve their business goals and objectives. For McDonald's Corporation employees at corporate, division and region offices, many benefits are organized into four categories:
Health and Protection Health and insurance benefits Medical Vision supplement plan Dental Flexible spending accounts Short and long term disability Employee and dependent life insurance Accidental death & dismemberment (AD&D) Travel and business travel accident insurance •
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Pay and Rewards Compensation, reward and recognition programs Base pay Incentive pay Long Term Incentives Company car program Recognition programs •
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Investing in Future Savings, investment and financial management programs Profit Sharing and Savings Plan (includes our 401(k) feature) MCDirect Shares Mc$ave Credit union Financial planning services •
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Helping Balance Work and Life Work/life benefits Vacation Holidays Anniversary Splash Sabbatical program Summer Hours Leave of absence Alternative Work Approach Adoption assistance Child care discount Educational assistance Matching gifts program Employee Resource Connection Auto and home insurance group discount program McDonald's Fitness Discount Program Beyond Work Internet discount program •
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All in all, our benefits programs provide our McDonald's Corporation employees with a valuable and compelling package. We believe you'll find there's a lot to gain from being part of the McDonald's team. The information contained on this site is highlights of McDonald's Corporation benefits and policies for U.S. staff employees only. The official Plan documents govern in case of any discrepancy between the Plan and the descriptions on this site.
The Global Women’s Initiative The Global Women’s Initiative is active in all Areas of the World and sponsored by President and Chief Operating Officer, Don Thompson. The Global Women’s Initiative supports the recruitment, development, and advancement of women at all levels within McDonald’s while creating a culture where women have the opportunity to succeed and grow. Asia Pacific Middle East and Africa Women's Leadership Network European Women's Leadership Network Canada Women's Leadership Network Latin America Women's Leadership Network U.S. Women's Leadership Network •
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Employee Business Networks McDonald’s employee’s business networks are a resource providing education, support, and advocacy on behalf of employees. Current business networks are: McDonald’s African American Council (MA2C) Asia-Pacific, Middle-Eastern Employee Business Network (APMEN) Hispanic Employee Business Network (HEBN) Women’s Leadership Network (WLN) McDonald’s Gay, Lesbian, and Allies Network (MGLAN) •
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Education McDonald’s Intercultural Learning Practice is uniquely designed to promote diversity and create a more inclusive environment. Some workshops McDonald’s offers its employees are as follows: Intercultural Learning Lab Asian Career Development Black Career Development Hispanic Career Development Lesbian Gay Career Development Women’s Career Development •
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REASON TO WORK WITH MCDONALDS • • • • • • •
Fast-track Career Progression Young , Energetic & Flexible Environment Excellent learning Potential Dignity of Labour World class Training Systems Global Exposure Good Benefits
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MCDONALDS FINANCIAL ACCOUNTS ARENA
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The entire McDonald’s System is thriving. Our world-class franchisees continue to invest in their restaurants and their people in order to elevate the entire customer experience, resulting in significant increases in cash flow. Our suppliers perform what I like to call the McDonald’s Daily Miracle — providing 32,000 restaurants an assured supply of safe, high-quality products at competitive prices, with ever improving efficiency. Lastly, our highly experienced company employees worked smarter to propel our business forward. With the powerful alignment of our System and the Plan to Win as the foundation, we will continue our winning formula: building on the basics as we further modernize and differentiate the brand.
VIEW TO 2010 ANNUAL REPORT The Company franchises and operates McDonald’s restaurants. Of the 32,737 restaurants in 117 countries at year-end 2010, 26,338 were franchised or licensed (including 19,279 franchised to conventional franchisees, 3,485 licensed to developmental licensees and 3,574 licensed to foreign affiliates (affiliates)— primarily Japan) and 6,399 were operated by the Company.
HIGHLIGHTS FROM THE YEAR INCLUDED: • Comparable sales grew 5.0% and guest counts rose 4.9%, building on 2009 increases of 3.8% and 1.4%, respectively. • Revenues increased 6% (5% in constant currencies). • Company-operated margins improved to 19.6% and franchised margins improved to 82.4%. • Operating income increased 9% (9% in constant currencies). • Earnings per share were $4.58 , an increase of 11%. • Cash provided by operations increased $591 million to $6.3 billion. 48 | P a g e
• The Company increased the quarterly cash dividend per share 11% to $0.61 for the fourth quarter–bringing our current annual dividend rate to $2.44 per share. • One-year ROIIC was 37.3% and three-year ROIIC was 38.3% for the period ended December 31, 2010. • The Company returned $5.1 billion to shareholders through share repurchases and dividends paid.
3-YEAR SUMMARY 49 | P a g e
Dollars in millions, except per share data
Company-operated sales Franchised revenues Total revenues Operating income Income from continuing operations Net income Cash provided by operations Cash used for investing activities Capital expenditures Cash used for (provided by)fin.activity Treasury stock repurchased (11) Common stock cash dividends Financial position at year end:
$16,23 3
2009 $15,45 9
$ 7,842 $24,07 5 $ 7,473 $ 4,946
$ 7,286 $22,74 5 $ 6,841 $ 4,551
$ 4,946 $ 6,342 $ 2,056 $ 2,136 $ 3,729 $ 2,648 $ 2,408
$ 4,551 $ 5,751 $ 1,655 $ 1,952 $ 4,421 $ 2,854 $ 2,235
2010
Total assets
$31,975
Total debt
$11,505
Total shareholders' equity
$14,634 1,05 4
Shares outstanding in millions Per common share: Income from continuing operationsdiluted
2008 16,56 1 6,96 1 23,52 2 6,44 3 4,31 3 4,31 3 5,91 7 1,62 5 2,13 6 4,11 5 3,98 1 1,82 3
28,46 $30,225 2 10,21 $10,578 8 13,38 $14,034 3 1,07 1,11 7 5 3.7
$ 4.58
$ 4.11
6 3.7
Net income-diluted
$ 4.58
$ 4.11
6 1.6
Dividends declared
$ 2.26
$ 2.05
3 62.1
Market price at year end Company-operated restaurants Franchised restaurants
$ 76.76 6,39 9 26,33 8
$ 62.44 6,26 2 26,21 6
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Franchised sales (12)
$61,14 7
$56,92 8
54,13 2
McDonald's Consolidated Statement of Income
In millions, except per share data
Years ended December 31,2010
2009
2008
REVENUES Sales by Companyoperated restaurants Revenues from franchised restaurants Total revenue s OPERATING COSTS AND EXPENSES Company-operated restaurant expenses Food & paper Payroll & employee benefits
$ 15,458. $16,233.3 5
$ 16,560. 9
7,841.3
7,286.2
6,961.5
24,074.6
22,744. 7
23,522. 4
5,300.1
5,178.0
5,586.1
4,121.4
3,965.6
4,300.1
Occupancy & other operating expenses Franchised restaurants1,377.8 1,301.7 1,230.3 occupancy expenses Selling, general & 2,333.3 2,234.2 2,355.5 administrative expenses Impairment and other 29.1 charges (credits), net (61.1) 6.0 Other operating (income) (198.2) (222.3) (165.2) expense, net total 16,601.5 15,903. 17,079. operating 7 5 cost and
3,638. 0
3,507. 6
3,766. 7
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expenses Operating income 7,473.1 6,841.0 6,442.9 Interest expense-net of capitalized interest of $12.0, $11.7 and $12.3 Nonoperating (income) 21.9 expense, net (24.3) (77.6) Gain on sale of investment (94.9) (160.1) Income before provision for income taxes 7,000.3 6,487.0 6,158.0 Provision for income 2,054.0 1,936.0 1,844.8 taxes $ $ Net income $ 4,946.3 4,551.0 4,313.2 Earnings per common $ $ share-basic: $ 4.64 4.17 3.83 Earnings per common $ $ share-diluted: $ 4.58 4.11 3.76 Dividends declared per $ $ common share $ 2.26 2.05 1.63 Weighted-average shares outstanding-basic 1,066.0 1,092.2 1,126.6 Weighted-average shares outstanding-diluted
450.9
473.2
522.6
1,080. 3
1,107. 4
1,146. 0
McDonald's Consolidated Balance Sheet In millions, except per share data ASSETS Current assets
Decembe r 31,2010
2009
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Cash and equivalents Accounts and notes receivable receivable Inventories, at cost, not in excess of market Prepaid expenses and other current assets Total current assets Other assets Investments in and advances to affiliates Goodwill Miscellaneous Total other assets Property and equipment Property and equipment, at cost Accumulated depreciation depreciation and amortization Net property and equipment Total assets
$ $ 2,387.0 1,796.0 1,179. 1,060. 1 4 109.9 106.2 692.5 453.7 4,368.5 3,416.3 1,335.3 2,586.1 1,624.7 5,546.1
1,212.7 2,425.2 1,639.2 5,277.1
34,482.4 33,440.5 (12,421.8 (11,909.0 ) ) 22,060.6 21,531.5 $ $ 31,975.2 30,224.9
LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities $ 943.9 111.3 275.6 200.7 1,384.9 8.3 2,924.7 11,497.0 1,586.9 1,332.4
Accounts payable Income taxes Other taxes Accrued interest Accrued payroll and other other liabilities Current maturities of long-term debt Total current liabilities Long-term debt Other long-term liabilities Deferred income taxes Shareholders' equity Preferred stock, no par value; authorized - 165.0 million shares; issued - none Common stock, $.01 par value; authorized - 3.5 billion shares; 16.6 issued - 1,660.6 million shares 5,196.4 Additional paid-in capital 33,811.7 Retained earnings 752.9 Accumulated other comprehensive comprehensive income (25,143.4 Common stock in treasury, at cost; 607.0 and 583.9 million ) shares Total shareholders' equity 14,634.2 Total liabilities and shareholders' equity 31,975.2
$ 636.0 202.4 277.4 195.8 1,659.0 18.1 2,988.7 10,560.3 1,363.1 1,278.9
16.6 4,853.9 31,270.8 747.4 (22,854.8 ) 14,033.9 30,224.9
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INCOME TAX UNCERTAINTIES The Company, like other multi-national companies, is regularly audited by federal, state and foreign tax authorities, and tax assessments may arise several years after tax returns have been filed. Accordingly, tax liabilities are recorded when, in management’s judgment, a tax position does not meet the more likely than not threshold for recognition. For tax positions that meet the more likely than not threshold, a tax liability may be recorded depending on management’s assessment of how the tax position will ultimately be settled. The Company records interest and penalties on unrecognized tax benefits in the provision for income taxes.
MCDONALDS IMPORTEXPORT. 54 | P a g e
The business is managed as distinct geographic segments. Significant reportable segments include the United States (U.S.), Europe, and Asia/Pacific, Middle Middle East and Africa (APMEA). (APMEA). In addition, throughout throughout this report we present “Other Countries & Corporate” that includes operations in Canada and Latin America, as well as Corporate activities and certain investments. The U.S., Europe and APMEA segments account for 35%, 39% and 16% of total revenues, respectively. France, Germany and the United Kingdom (U.K.), collectively, account for approximately 60% of Europe’s revenues; and Australia, China and Japan a 50%-owned affiliate accounted for under the equity method), collectively, account for over 50% of APMEA’s revenues. These six markets along with the U.S. and Canada are referred to 55 | P a g e
as “major markets” throughout this report and comprise over 70% of total revenues. The Company continues to focus its management and financial resources on the McDonald’s restaurant business as we believe the opportunities for long-term growth remain significant. Accordingly, during the third quarter 2007, the Company sold its investment in Boston Market. The Company disposed of its investment in Chipotle Mexican Grill (Chipotle) via public stock offerings and a tax-free exchange for McDonald’s common stock. In past years, both Boston Market’s and Chipotle’s results of operations and transaction gains have been reflected as discontinued operations for all periods presented. In analyzing business trends, management considers a variety of performance and financial measures including comparable sales growth, System wide sales growth, restaurant margins and returns. • Constant currency results exclude the effects of foreign currency translation and are calculated by translating current year results at prior year average exchange rates. Management reviews and analyzes business results in constant currencies and bases certain compensation plans on these results because we believe they better represent the underlying business trends.
• Comparable sales are a key performance indicator used within the retail industry and are indicative of acceptance of the Company’s initiatives as well as local economic and consumer trends. Increases or decreases in comparable sales represent the percent change in constant currency sales from the same period in the prior year for all restaurants in operation at least thirteen months, including those temporarily closed. Some of the reasons restaurants may be temporarily closed include road construction, reimaging or remodelling, rebuilding, and natural disasters. McDonald’s reports on a calendar basis and therefore the comparability of the same month, quarter and year with the corresponding period of the prior year will be impacted by the mix of days. •
The number of weekdays, weekend days and timing of holidays in a given timeframe can have a positive or negative impact on comparable sales. The Company refers to this impact as the calendars shift/trading day adjustment. This impact varies geographically due to consumer spending patterns and has the greatest impact on monthly comparable sales. Typically, the annual impact is minimal, with the exception of leap years. 56 | P a g e
• System wide sales include sales at all restaurants, whether operated by the Company, by franchisees or by affiliates. While sales by franchisees and affiliates are not recorded as revenues by the Company, management believes the information is important in understanding the Company’s financial performance because it is the basis on which the Company calculates and records franchised and affiliated revenues and is indicative of the financial health of our franchisee base.
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McDonald’s Corporate Responsibility = Values in Practice For McDonald’s, corporate responsibility is about living their values each and every day. It’s about taking action, achieving results and always maintaining open lines of communication with customers and other key stakeholders. They’re determined to continuously improve their social and environmental performance. They work hard, together with their suppliers and independent restaurant franchisees, to strive toward a sustainable future – for company and the communities in which they operate.
MCDONALD’S VALUES Placing the customer experience at the core of all they do Customers are the reason for their existence. They demonstrate their appreciation by providing them with high quality food and superior service, in a clean, welcoming environment, at a great value. The goal is quality for each and every customer, each and every time.
Commitment to people It consists providing opportunity, nurturing talent, developing leaders and reward achievement. They believe that a team of well-trained individuals with diverse backgrounds and experiences, working together in an environment that fosters respect and drives high levels of engagement, is essential to continued success.
Believe in the McDonald’s System McDonald’s business model, depicted by the “three-legged stool” of owner/operators, suppliers, and company employees, is its foundation, and the balance of interests among the three groups is key.
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Sound ethics is good business. At McDonald’s, it hold themselves and conduct business to high standards of fairness, honesty, and integrity. They are individually accountable and collectively responsible.
Giving back to our communities Taking seriously the responsibilities that come with being a leader. They help their customers build better communities, support Ronald McDonald House Charities, and leverage their size, scope and resources to help make the world a better place.
Growing business profitably McDonald’s is a publicly traded company. As such, they work to provide sustained profitable growth for shareholders. This requires a continuing focus on customers and the health of system.
ENVIRONMENTAL RESPONSIBILITY •
Doing more with less
Less is more when it comes to the environment – less energy, fewer emissions and less waste. At McDonald’s, they seek to reduce their environmental impact because it is not only good for our planet, but also good for long-term financial success. Aim is to use less and spend less through three areas of activity: sustainable packing and waste management, energy conservation and green restaurant design.
•
Learning with the Green buildings 60 | P a g e
McDonald’s continues to test and learn how to incorporate more green elements into their buildings. There are green components already present in their existing restaurant standards around the world, and they are working to enhance these. Several of markets, including France, Canada, Germany, Brazil, Costa Rica and the U.S., currently have plans to install and track the performance of new sustainable features to improve energy efficiency. •
Waste Conscious
McDonald’s uses an internal global scorecard tool called the Eco-Filter to help them to make packaging decisions while keeping the environment in mind. Over time, they have made changes aimed at reducing the amount of packaging and increasing their use of recycled materials. For example, in 2009, McDonald´s France introduced a frappe cup and lid made out of 40% recycled plastic (rPET). Using recycled materials reduces the amount of virgin resin needed by 123 metric tons per year and reduces the amount of landfill waste by an equivalent amount
Serving Up Quality, Affordability and the Power to Make the Right Choices McDonald’s is committed to offering quality at an affordable price. They’re also committed to the well-being of customers. They work together with their employees, franchisees and suppliers to serve a balanced array of quality food products and provide the information needed to make individual choices. There continues concern about obesity rates and related risks to human well-being among consumers, governments, NGOs, and health and nutrition experts. They take these issues seriously and are working to do what they can to positively influence the situation.
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•
Giving Customers What They Want – Choice and Regional Variety at the Right Price
Many equate the Golden Arches with classics such as the Big Mac and World-famous Fries. These consumer favourites are part of McDonald’s core menu, but they have continued to expand their selection of food and beverage choices to meet the diverse needs and preferences of customers in every country where they operate. McDonald’s has continued to develop new menu offerings to meet the needs of diverse markets around the world. For example, McDonald’s USA has introduced Fruit and Maple Oatmeal, a wholesome new addition to the breakfast menu featuring about ½ cup of real fruit and 32 grams of whole grains. (This is two-thirds of an individual’s daily requirement.) They’ve also introduced a line of new juices throughout Latin America that features 40% fewer calories and less sugar while still providing the benefits of fruit juice. In other markets, they continue to expand portable sandwich offerings with additional wrap offerings, including grilled chicken with fresh lettuce and tomatoes. Regardless of the location, menu options are always developed with the customer’s lifestyle and financial needs in mind.
McDonald’s Is Committed to Its People It goes without saying that they support fundamental human rights for all people. They comply with employment laws in every market where they operate, and will not employ underage children or forced labourers. They respect the right of employees to associate or not to associate with any group, as permitted by and in accordance with, applicable laws and regulations. But these things are just the greens fees to running a successful, sustainable business in today’s world. Delivering on responsible food and customer expectations demands an engaged, committed and talented workforce. McDonald’s knows this, and so do McDonald’s franchisees. People are absolutely fundamental to brand and to building business.
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APPROACH They have a modern, strategic approach to addressing these and other challenges. Business is strong and they need high-performing employees to help them continue that trend. Their operations span a range of cultural environments. They’re diverse by design. People policies and programs are designed to meet employee needs through the following priorities: •
•
•
Respect - Create a diverse and inclusive culture where everyone feels valued and respected. Commitment Enhancement - Enhancing employment value proposition to drive high levels of employee commitment. Talent Management - Attract, develop and retain the most talented people at all levels.
Reaching out and giving back to the Communities they serve •
Giving back to the community is an essential part of McDonald’s heritage and values – it is part of our DNA. They are kind of committed to using scope, people and profits to create lasting impact on the communities in which they live and work. Across the globe, they seek to make a difference through four primary avenues: support of Ronald McDonald’s House Charities and their children’s programs; local, regional and global partnerships and sponsorships; involvement by their owner/operators in their local communities; and disaster relief.
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MCDONALDS IN INDIA
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McDonald’s India Pvt. Ltd (MIPL), the wholly-owned subsidiary of the US-based fast-food giant, McDonald's Corporation, is likely to put on hold its earlier declared expansion plan of opening 80 restaurants in India by 2003. McDonald’s has 132 restaurants in India of which 79 are in North & East India and 53 in West & South India.
79 restaurants in North & East India: • •
•
•
• • • •
33 in Delhi 22 in Uttar Pradesh – Noida (5), Ghaziabad (4), Mathura (1) (Highway and Drive Thru), Kanpur (2), Meerut (2), Lucknow (4), Agra (1), Allahabad (1), Varanasi (2) 11 in Haryana - Faridabad (3), Manesar (1) (Highway and Drive - Thru), Gurgaon (5), Karnal (1) (Highway and Drive - Thru), Panipat (1) 7 in Punjab - Chandigarh (2), Ludhiana (2), Doraha (1) (Highway and Drive - Thru), Jalandhar (1), Patarsi (1) (Highway and Drive - Thru) 3 in Rajasthan - Jaipur (3) 1 in Uttaranchal - Dehradun (1) 1 in West Bengal – Kolkata (1) 1 in Himachal Pradesh - Jabli (1).
53 Restaurants in West & South India: • • • • •
32 in Maharashtra – Mumbai (23), Pune (8), Nasik (1) 7 in Gujarat – Ahmedabad (4), Vadodara (2), Surat (1) 7 in Karnataka – Bangalore(7) 4 in Andhra Pradesh – Hyderabad (4) 3 in Madhya Pradesh – Indore (3)
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1996
1997
The first McDonald's restaurant opened on Oct. 13, at Basant Lok, Vasant Vihar, New Delhi. It was also the first McDonald's restaurant in the world not serving beef on its menu The first Drive - Thru restaurant at Noida (UP) The first disabled friendly store at Noida (UP)
1999
The first Mall location restaurant at Ansal Plaza (New Delhi)
2000
The first highway restaurant at Mathura (UP)
2001
The first thematic restaurant at Connaught Place (New Delhi)
2002
The first restaurant in a food court at 3C's, Lajpat Nagar (New Delhi) The first restaurant at the Delhi Metro Station at Inter State Bus Terminus The first annual fundraiser in association with ORBIS and Dr. Shroff's Charity Eye Hospital.(Delhi)
2003
The first Dessert Kiosk - Faridabad (Haryana)
200304
Indigenous products like McAloo Tikki, McVeggie and Pizza McPuff exported to Middle East countries
2004
McDonald's Delivery Service (McDeliveryTM ) introduced in New Delhi
2006
McDelivery on Bicycles flagged off at Chandni Chowk (Delhi)another first initiative by McDonald's India 100th McDonald's Restaurant in India
2007
The first Restaurant opened in the Eastern Region at Park Street, Kolkata (West Bengal) The first Restaurant opened at Airport.(Domestic Airport, New Delhi)
McDonald's India…… Culturally Sensitive.!!!
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McDonald's worldwide is well known for the high degree of respect for the local customs and culture. McDonald’s has developed a menu especially for India with vegetarian selections to suit Indian tastes and preferences. Keeping in line with this, McDonald's does not offer any beef or pork items in India . In the last decade it has introduced some vegetarian and non-vegetarian products with local flavours that have appealed to the Indian palate. There have been continuous efforts to enhance variety in the menu by developing more such products. McDonald's has also re-engineered its operations repeatedly in its 11 years in India to address the special requirements of a vegetarian menu. Vegetable products are 100% vegetarian, i.e. They are prepared separately, using dedicated equipment and utensils. Only pure vegetarian oil is used as a cooking medium. Cheese and sauces are completely vegetarian and egg less. Separation of vegetarian and non-vegetarian food products is maintained throughout the various stages of procurement, cooking and serving.
McDonald's India - A decade of quality service
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Most Respected Company' for four consecutive years, 2003-2007 in the Food Services sector, by Businessworld Most Wanted Brand of the Year' Award 2003 & 2004 by Franchising Holdings India Ltd. Retailer of the Year' Award for catering services, 2004-2006 at the Images Retail Awards. The 'Most Preferred Fast Food Outlet' 2006 & 2007 by Awaaz Consumer Award, hosted by CNBC. Star Retailer - The Consumer Way, Food Services Retailer' of the Year 2006 & 2007, by Franchise India Amity Corporate Excellence Award'-in 2007 & 2008
For its unparalleled benchmarks established in the QSR sector McDonald’s India has been bestowed with many prestigious awards.
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MCDONALDS AND ITS COMPETITORS: THE BRAND FIGHT
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McDonalds vs Burger King
•
•
•
•
•
•
MacDonald’s have a few franchises where they have playgrounds to keep kids busy with play while adults have their snacks. McDonalds also have home delivery at some places. As far as size of burger is concerned, Burger King wins with the size of its burger being almost 20% bigger than that of McDonalds. McDonalds is cheaper than Burger King, but this is to be expected with a size difference. Most of the customers who fluctuate between Burger King and McDonalds feel that the quality of meat is slightly better at Burger King. There is a difference in taste also owing to Burger King Flame broiling their meats. This gives a distinct flavour to foods in BK while at McDonalds fry meats on a grill and then throw them on a holding pan from where they are served, sometimes remaining there for more than a few minutes thus becoming dry and flavourless. Another difference that I feel is a genuine one is that McDonalds cater more to kids’ tastes than adults as they believe it is kids who ask parents to come to McDonalds. On the other hand, the flavour and taste at burger king suggests it is primarily to cater to adults taste buds.
The Marketing
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McDonald's single biggest accomplishment is their ability to market to children. A great percentage of their business comes from children asking begging their parents to take them to McDonald's. For years, Burger King had no answer to this. It had a sad Kid's Club with B-level promotions, while McDonald's co-marketed with children's hits such as Disney, Mattel, and Barbie.
So how did Burger King gain ground on Ronald, Grimace, and the Ham burglar? By not competing with them at all, but by targeting a slightly older demographic. It began with the "subservient chicken" ad campaign, capturing the Adult Swim teen audience, and has continued with the "Creepy King" and his Xbox games. Another diversion in strategy for the two companies is what they are advertising to adults. McDonald's has been advertising their salads, looking to appease the mothers who bring their children into the golden-arched restaurants, while Burger King has gone the other direction, promoting the Stacker sandwich, a sandwich made of layers of meat and cheese stacking up to four burgers high. This sandwich, I can imagine, caters more to the young stoners that would play an Xbox game based on a fast-food brand. Regardless, Burger King's strategy of avoiding McDonald's strengths has paid off, and both chains and their shareholders are savouring the success.
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McDonald s vs Subway
McDonalds hamburger : patty (100% pure inspected beef; no additives, no fillers, no extenders.), bun, ketchup, pickle slices, onions (dehydrated), seasoning-salt, pepper, partially hydrogenated vegetables oil(cottonseed and soybean.) Subway sub sandwich: turkey breast: sliced turkey breast and standard vegetables (can be altered-iceberg lettuce, tomatoes, red onions, green peppers, olives and pickles.
The ingredients are different Subway6” inch turkey breast: 280 calories, 5 FAT (grams). McDonald’s Big Mac: 560 calories, 30FAT (grams).
A subway sandwich compared to a McDonalds Big Mac can save hundreds of calories and at least 25 Grams of Fat. It is clear that from above comparison, Subway always associate them with The Biggest Loser while for most of the time, McDonald’s is on the other way round The Bigger Gainer .
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METHDOLOGY This project is prepared with the help of theoretical knowledge as well as practical knowledge & a crumb of advises & suggestions from the concerned professors.
The theoretical pert taken from the various books & magazines available on this subject. And other recent happing in marketing is taken from magazines & news paper. As far as practical is concerned, all the information about the companies information available on net.
Overall this mission has been completed with the combination of al those things & it had been with the best of my facts & information.
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CONCLUSION…
TODAY, MCDONALDS HAS GROWN TO 25,000 RESTAURANTS IN ABOUT 120 COUNTRIES SERVING 50 MILLION CUSTOMERS DAILY. BECOMING THE LARGEST FAST FOOD CHAIN IN ALL OVER THE WORLD…
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PHOTO GALLERY
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BIBLIOGRAPHY MAGAZINES:• • •
BUSINESS WORLD. 100 TOP BRANDS. THE VALUABLE BRANDS OF INDIA.
WEB SITES:•
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www.mcdonalds.com www.mcdonaldsindia.com en.wikipedia.org/wiki/McDonald's www.mcdonaldsindia.net/ Scribd.com Slideshare.com
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