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Presented by-:
Manendra Shukla
OPERATION
HUMAN RESOURCE
MARKETING
FINANCE
Introduction
Key Employees
Andy McKennaChairman
Jim SkinnerChief Executive Officer
Ralph AlvarezPresident and Chief Operating Officer
Susan E. ArnoldPresident – Global Business Units
Gloria Santonacorporate secretary
Amit Jatia(West & South)
Vikram bakshiNorth & east
DICK & MAC MCDONALDS
Our vision to be world’s "best" quick service restaurant.
1940McDonalds’ Bar-B-Que
1948
McDonalds' as “SELF SERVICE DRIVE IN RESTAURANT”
MCDONALDS’ world famous FRENCH FRIES
1949
1954
1955
1956
Quality Value
Cleanliness
Service
1961
Hamburger university opens
1964
1966
First network TV advertisement “MCDONALD’S-WHERE QUALITY STARTS FRESH
EVERYDAY”
1966
1967
McDonalds goes international
1969
Golden arches updated
Hamburglar
Grimace
Mayor Cheese
Captain Crook
1971
Ronalds new friend
1974
1978
5000th restaurant
197 9
Happy meal debuts
1983
McDonalds in 32 countries
1984
Ray Kroc passes away
1987
Fresh salads added
1988
Fortune magazine names McDonald's hamburgers among the 100 products America makes best
1992
Warsaw location
199 6
McDonald .com launch
2008
Global packaging redesigned
Relaxed in Recession One of the most successful big companies during recession.
Mac Donald's sales increased by 6.8% in U.S, 4% in Europe and 4.1 % in Asia , middle east and Africa .
Mcdonald's was one of only two dow jones industrial Average stocks that ended 2008 with a gain.
Pundits say the company to be recession proof and that people will come due to its ease on the pocket menu.
Inspite of the fluctuations in the prices of the agro products ,the prices of Mac donald’s products remained constant.
2009
Philosophy
"We take the burger business more seriously than anyone else."
As of December 31, 2008, the company operated
31,967 restaurants in 118 countries,
25,465 were operated by franchisees;
6,502 were operated by the company.
50 million customers each day
$25.00billion -brand value
2004 -worlds biggest marketer of fast food
Fascinating McFacts
Earning love and respect of
Reasons for coming to India
132 restaurants in India(79 are in North & East India and 53 in West & South India)
2.5 lakh customers visit McDonald's TM every day
At McDonald’s India we have had a single mantra: providing 100% total customer satisfaction
McDonald’s in India is a 50-50 joint venture partnership between Amit Jatia’s (Western ) & Vikram Bakshi (Northern)
79 restaurants in North & East India:
33 Delhi
22 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 Haryana Faridabad (3), Manesar (1) (Highway and Drive - Thru), Gurgaon (5), Karnal (1) (Highway and Drive - Thru), Panipat (1)
7 Punjab Chandigarh (2), Ludhiana (2), Doraha (1) (Highway and Drive - Thru), Jalandhar (1), Patarsi (1) (Highway and Drive - Thru)
3 Rajasthan Jaipur (3)
1 Uttaranchal Dehradun (1)
1 West Bengal Kolkata (1)
1 Himachal Pradesh Jabli (1).
53 restaurants in West & South India
32 Maharashtra Mumbai (23), Pune (8), Nasik (1)
7 Gujarat Ahmedabad (4), Vadodara (2), Surat (1)
7 Karnataka Bangalore(7)
4 Andhra Pradesh Hyderabad (4)
3 Madhya Pradesh Indore (3)
ENTRY STRATEGIESWholly owned subsidiary-MIPL
Incorporated in 1993
Trained extensively along with their Indian management team, in McDonalds in Indonesia and US before launch.
Changes: to establish in India successfully• Size• Taste• Menu(75 %localized menu,33%asian countries &other countries
<5%)
Product adaption - the Indian challenge
Maharaja Mac replaced Big Mac, Chicken Patty instead of beef
McAloo Burger, Veg Salad Sandwich, McMasala & Mcimli Sauces
Garlic free sauces to get in “hard core” vegetarian customers
40%vegetarian-vegetarian selections to suit Indian taste
OPERATIONS
Front office operational process
Operation Transportation
InspectionDelay
Storage
Process Name Operation Transportation Inspection Delay
Operator taking the order
Work order wait in queue
Cashier complete transaction
Job carried to appropriate provider
Inspect the job item are placed or not
Order/job is picked by customer
Job is guided to the table
Job moves to table
Assistant always monitoring the job
Cleaning the table for the next job
Cleaning the floor
Supervising the whole process
PROCESS DESCRIPTION
SUPPLY CHAIN
MANAGMENT
SUPPLY CHAIN
OVERVIEW COLD CHAIN
LOCAL SOURCING
SUPPLIERS
RESTAURANT MANAGEMENT SYSTEM (RMS)
2 SEPARATE MENUS-GREEN- VEG;PURPLE –NONVEG
Separate Veg & Non Veg kitchen
Different uniform for kitchen crew to distinguish role
Clear segregation-kitchen staff
Printed broacher of RMS to customer
Customer kitchen tour to assure
Human Resource
Management
Co-ordination
Co-operation
Communication
Respect and Recognition
Values and Behaviours
Competitive Pay and Benefits
Resources To Get The Job Done
Training, Learning, Development and Personal Growth
Five People Principles
Hire restaurant crews with good work habits and courteous attitudes
Proper training a delivering customer satisfaction
Employees receive work experience that teaches skills and values
Perfect tools provided
Training, Learning, Development and Personal Growth
Employees at McDonalds' fall into 3 different categories
JOB STRUCTURE
RESTAURANT WORKERS
CORPORATE STAFF
FRANCHISEE OWNERS
MAC Card (McDonald's Gold Card membership) Haircut Discounts Wages increases
Life insurance Stock Purchase Plan McDirect Shares
Paid Vacation Bonus Scheme Education Support
Extracurricular Crew activities Scholarship Program Opportunities for advancement
BENEFITS
Function Of Human Resource
Planning
Leading
Organizing
Controlling
Human Resource
Policy
Growth opportunity
CompensationOffer wage rates that are equitable and non-discriminatory in every location
Competitive Compensation
Reward both individual and team performance
Motivation
Career opportunity
Create career opportunities;
Have flexible work hours for student employees.
"Learn while you earn"
“employee of the month “.
Giving them responsibility.
Marketing strategy
McStrategies
PastProduct DevelopmentMarket DevelopmentForward IntegrationJoint Venture: Franchisees
NewProduct Development: Focus on core businessJoint Venture (Franchisee): Change methods of dealing with franchisees
Market Penetration and Development
Horizontal Integration
StrengthsBrand Recognition
Leader in Quick Service Sandwich Industry
Strongest International Presence
Real-Estate Holdings
Variety Sources of Income
Franchise Business Model
Cost advantage
Market versatility
Weak product development
Dissatisfied franchisee
Value/Premium Items
Slow revenue and income growth
Weaknesses
Opportunities
Only serving 1% of worlds population
Growth in Global Food Service Industry
Initial Public Offerings in Other Countries
Acquisition of Other Restaurants
Retail Sales of Merchandises
Growing dining-out market
Threats
Increased Competition from Various Industries
Health Conscious Consumer Trend
Value-Conscious Consumer Trend
Saturation in fast-food Market
Slow Growth in Sandwich Segment
Price War Business Practices
Changing demography
Demographically :- 1] young family (<30years) 2]Urban upper & Middle class families.
Geographically :- 1]Mostly in urban towns and cities 2]Now opening in 2 and 3 tiers cities 3]Mostly situated in malls having independent franchises
Psychographic:- 1]Place to chill out with friends and families 2]Place for enjoyment of the kids
Segmentation
POSITIONING
MacDonald mein hain kuch baath-a place for an entire family to enjoy.
Mac Donald I’m lovin it.
DIFFERENTIATION
Highlighting Brand, Food & Variety.
Target market
Only < 10% population possible target market
Phase III
Phase II
Phase I
Product
Promotion
Place
$ Price
4 Ps 3 Ps
People
Process
Physical Evidence
Product Variation: Variety in products ranging from Burgers to softies
Product Innovation: Adapting to Indian conditions creating the “CHICKEN MAHARAJA”
Product Elimination: Removal of Beef flavored products
Menu: Veg, Non Veg, Frozen Desserts, Beverages
Successes: Fries, Happy Meal, Big Mac, paneer wrap , Pizza McPuffFailures:, Fajita, Carrot Sticks, McLean, and the Arch Deluxe
Product
Pricing includes the list of prices & discount available
Special offer such as happy meal ,Value meal & Combo meal.
Price
Fully owned outlets
Franchise owned outlets that does selling from different places
McDonald's mainly consists of the distribution channels the product is available to the customer at the right place, at the right time and in the right quantity
Offers hygienic environment good ambience and great service
Started giving internet facilities
Areas for children where they can play and enjoy with their Family and friends
Spend some quality time together
Place
Individual communication
Mass communication
Free distribution of children toys.
Some of the most famous marketing campaigns of McDonald’s are:
•“You Deserve a break today, so get up and get away- To McDonald’s”
• “Aap ke zamane mein ,baap ke zamane ke daam”.
•“Food, Folks, and Fun”
•“I’m loving it”.
Promotion
A History of McDonald's Advertising Themes
McDonald's is Your Kind of Place (1967) You Deserve a Break Today (1971) We Do it All for You (1975)
Twoallbeefpattiesspecialsaucelettucecheesepicklesonionsonasesameseedbun (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) 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)
"Speedee”
to promote McDonald's fast service
Hi ! I am Chief Happiness Officer at McDonalds
NEW PRODUCT LAUNCH
.Premium spicy chicken sandwich.
.Asian Salad.
NEW PRODUCT LAUNCH
.Drinkable breakfast enriched like yoghurt.
.Mc Nuggets (launched in India recently).
McDonalds Jumbo King Pizza hut
Mc Aloo Tikki - 20 Regular Vada Pav - 7 Simple Veg pizza-195
Mc Veggie - 45 Brown Bread Vada Pav-10 Veggie Supreme -345
Mac Chiken Maharaja-99 Butter Vada Pav - 10 Chicken Supreme-360
Value Meal - Chollee vada Pav - 13 Garlic bread platter-90
Happy Meal- Cheese Vada Pav - 16 Soup’s-45 to 80
French fries-38 Schezwan vada pav - 15 Pasta’s-110
Cold Coffee-39 Lassi - 10 Pepsi/7up/Mirinda -40
Iced tea - 25 Mango Lassi - 15 Pizza hut –Royale-80
Soft Serve - 20 Pepsi - 10 Almond Praline-45
PARAMETERS MCDONALD’S
SUBWAY
DOMINO’S
PIZZA HUT
KFC NIRULA’S
TOTAL MEAN
1. VALUE FOR MONEY 8.80 9.04 8.73 9.18 9.18 7.70 52.63
2. EASILY ACCESSIBLE 9.00 8.76 8.50 9.27 8.29 7.79 51.61
3. OVERALL AMBIENCE
9.16 8.60 8.35 9.24 8.92 8.03 52.30
4.HOSPITALITY OF STAFF
9.12 8.60 8.46 8.93 8.55 7.70 51.36
5. SPECIAL OFFER 8.80 8.24 8.38 8.80 8.92 7.60 50.75
6.STANDARDISATION OF F&S
9.24 8.68 8.46 8.84 8.84 8.41 52.47
7. QUALITY OF FOOD 9.88 8.80 9.00 8.87 8.55 7.98 53.08
8. TIME TAKEN TO PROCESS THE ORDER
9.56 8.72 8.88 8.30 8.59 7.75 51.80
9. VARIETY IN MENU 8.81 8.19 8.38 8.53 8.30 8.35 50.56
10. IS THE MENU DISPLAYED WELL
9.20 8.40 8.42 8.37 8.66 8.65 51.70
11. ARE VEG & NON-VEG ITEMS ARE DIFFERENTIATED
9.44 8.24 8.69 8.59 9.10 8.65 52.71
12. CLEANLINESS 9.64 8.65 8.77 9.45 9.17 8.57 54.25
CORPORATE STRATEGIES
To make food fast
Low cost
International expansion
Financial Managemen
t
INCOME STATEMENT In millions
2008 2007 2006
REVENUES
Sales by Company-operated restaurants 16,560.90 16,611.00 15,402.40
Revenues from franchised restaurants 6,961.50 6,175.60 5,492.80
Total revenues 23,522.40 22,786.60 20,895.20
OPERATING COSTS AND EXPENSES 17,079.50 18,907.60 16,462.20
Total operating costs and expenses 17,079.50 18,907.60 16,462.20
Interest expense– 12.3%, 6.9% and 5.4% 522.6 410.1 401.9
Nonoperating (income) expense, net (77.6) (103.2) (123.3)
Gain on sale of investment (160.1) -
Income from continuing operations 6,158.00 3,572.10 4,154.40Provision for income taxes@ 30%, 34.6%, 31% 1,844.80 1,237.10 1,288.30
Net Income from continuing operations 4,313.20 2,335.00 2,866.10
Income from discontinued operations 60.1 678.1
Net income 4,313.20 2,395.10 3,544.20
Balance Sheet In millions
ASSETS Dec-08 Dec-07 Dec-06
Current assets
Cash and equivalents 2,063.40 1,981.30 2128.1
Accounts and notes receivable 931.2 1,053.80 806.9
Inventories, at cost 111.5 125.3 112.4
Discontinued operations 194.7
Assets of businesses held for sale 1631.5
Prepaid expenses and other current assets 411.5 421.5 318.6
Total current assets 3,517.60 3,581.90 5192.2
Other assets
Investments in and advances to affiliates 1,222.30 1,156.40 1035.4
Goodwill 2,237.40 2,301.30 2073.6
Miscellaneous 1,229.70 1,367.40 1235.2
Total other assets 4,689.40 4,825.10 4344.2
Property and equipmentProperty and equipment, at cost 31,152.40 32,203.70 29722.9
Accumulated depreciation and amortization -10,897.90 -11,219.00 -10284.8
Net property and equipment 20,254.50 20,984.70 19438.1
Total assets 28,461.50 29,391.70 28974.5
LIABILITIES AND SHAREHOLDERS’ EQUITY In millions
Current liabilities Dec-08 Dec-07 Dec-06
Notes payable 1,126.60
Accounts payable 620.4 624.1 668.7
Income Tax 241.9
Other taxes 252.7 248 203.2
Accrued interest 173.8 148.4 135
Accrued payroll and other liabilities 1,459.20 1,486.90 1324.5
Current maturities of long-term debt 31.8 864.5 17.7
Liabilities of businesses held for sale 273.8
Discontinued operations 86.8
Total current liabilities 2,537.90 4,498.50 2951.6
Long-term debt 10,186.00 7,310.00 8389.9
Other long-term liabilities 1,410.10 1,342.50 1098.4
Deferred income taxes 944.9 960.9 1076.3
Shareholders’ equity 13,382.60 15,279.80 15458.3
Total liabilities and shareholders’ equity 28,461.50 29,391.70 28974.5
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
2005 2006 2007 2008
Net Income
Net Income
Cash Generated by Operation
0
1
2
3
4
5
6
7
2006 2007 2008
Figures are in $
in bil
lion
Cash returned to shareholders
4.4
4.6
4.8
5
5.2
5.4
5.6
5.8
6
2006 2007 2008
Figures are in$
In Bi
llion
19.520
20.521
21.522
22.523
23.5
In Billion
2006 2007 2008
Figures are in $
Revenue
cumulative shareholders' return
0
50
100
150
200
250
300
2003 2004 2005 2006 2007 2008
Mc Donald
S & P 500 Index
DJIA
Revenue from countries
8078
99234231
1290
U.S.
Europe
APMEA
Other countries & corporates
Market Cap
MCD, 59.48
BKC, 2.3
YUM, 16.1
DRI, 4.35
Starbucks, 13.72
Revenue
22.56
2.55
10.9
MCD
BKC
YUM
Net Income
4.25
0.1921.01
0
1
2
3
4
5
MCD BKC YUM
Net Income
Employees
400000
41000 50400
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
MCD BKC YUM
MCD
BKC
YUM
Earning Per Share
3.772
1.402
2.094
0 0.5 1 1.5 2 2.5 3 3.5 4
EPS
MCD
BKC
YUM
0
5
10
15
20
25
30
35
40
MCD BKC YUM
37.5533.13
24.9
In Percent
Gross Margin
0.550.67
1
1.51.67
0
0.5
1
1.5
2
2004 2005 2006 2007 2008
In Us dollar Per Share
Dividend Decared
2008 2007 2006
Current Ratio 1.4 1.073 1.8
Debt/Equity ratio 0.76 0.50 0.54
Liquid Ratio 1.2 0.70 1.65
Gross Margin 37.55% 33.13% 24.90%
ROI after tax 36.25% 27.68% 37.35%
Awards &
Achievement
Push-excel corporate partner award,
Corporate achievement and image award,
Nullities corporate award,
Corporate vision award,
The circle of inclusion award.
The halal journal awards 2008
Hall of fame award
Corporate citizenship award
Vince nichols memorial award
Mcdonald's UAE achievements awarded by
mcdonald's corporation
CFA presents inaugural lifetime achievement
award at 2008 recognition awards luncheon
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
McDonald's India - A decade of quality service
Received national recognition for diversity.
Push-excel corporate partner award.
Corporate achievement and image award.
Nullities corporate award.
Corporate vision award.
The circle of inclusion award.
•Take an active community
•Sponsor Ronald McDonald Houses: providing a home away from home for families of seriously ill children receiving treatment at nearby hospitals.
•Promote workforce diversity,
•Support education through student scholarships, teacher awards, and free instructional resources.
•Adopt and encourage environmentally friendly practices.
•Provide nutritional information on McDonald's products to customers.
CSR
ENVIRONMENTAL ACHIEVEMENTS
AUDUBON society,
Conservation international,
Keep America beautiful,
The national recycling coalition,
The U.S. Environmental protection agency
Reason Of
Success ??? Globalization
DiversityEthics
Coming up with new schemes that suits to every pocket at any time.
McDonald’s undertakes expansion; plans 40 new stores at Rs 150 cr investment in 2009
Mc-delivery has been started so everyone can be at home and enjoy McDonald's food
McDonald’s the Future..!!
CONCLUSIONCONCLUSION
CUSTOMER PROFIT
GREATER PROFITBUT
Key Learning
Operational excellence
Leadership marketing
Innovation” is key of success.
Focus on quality management.
Customer is first ,fulfill their expectation .
Satisfaction of employees is necessary to increase the productivity.
‘Taking initiative’ leads to success.
Think global , act local
Shall we go to McDonalds???
Wait………
Before making any conclusions,
have a look……..
REFERENCES
www.mcdonalds.comwww.macdonaldsindia.netwww.scribd.com4P’S Business &MarketingThe marketing warfareTimes of India.Business standard
BYE BYE SEE YOU AT McDonald's
Mac Donald's believe..