Management project by Arid aggriculture Bscs 2B students

[1]

MANAGEMENT

PROCESS

MCDONALD,S CORPORATION

UNIVERSITY OF ARID AGRICULTURE RAWALPINDI

UINIVERSITY INSTITUTE OF INFORMATION

TECHNOLOGY (UIIT)

[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

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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 gratitude 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.

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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.

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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

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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 and 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

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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

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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

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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 about 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

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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.”

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(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 problems

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

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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 meal 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 alcohol ics. 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.

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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.

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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

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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

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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

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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

[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 in 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 supply 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

[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.

[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

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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

[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.

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• 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

[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.

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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.

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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

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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 research 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.

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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

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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

[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 requirement 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.

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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

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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.

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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.

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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

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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

[36]

References 1. McDonald's publication. "Corporate FAQ". McDonald's Corporation.

http://www.mcdonalds.ca/en/aboutus/faq.aspx. Retrieved 2007-11-24.

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