McDonalds

How Culture Affects Production Trends in McDonalds

INTRODUCTION TO THE ACTIVITY

The fast food industry is amongst the most popular industries in Pakistan, and is a very huge industry. It includes a large number of corporations such as McDonalds, KFC, Pizza Hut, Pizza Next, Pizza Express, Papa Johns, Dunkin Donuts, Subway, Costa Coffee, Arizona Grill, Copper Kettle, Coffee Day, and Mr. Burger etc. This food industry is still extending, as it provides many opportunities and promises a lot of success. Many of the corporations are local as well as international. And they are all doing a really good business.

The fast food restaurants are characterized both by their fast food cuisine and by minimal table service. Food served in fast food restaurants is cooked in bulk in advance and kept hot to order; food is usually available ready to take away, though seating is provided. Fast food restaurants are usually part of a restaurant chain or franchise operation, which ships standardized foodstuffs to each restaurant from central locations.

While fast food restaurants usually have a seating area in which customers can eat the food on the premises, orders are also designed to be taken away, and traditional table service is rare. Orders are generally taken and paid for at a wide counter, with the customer waiting by the counter for a tray or container for their food. A "drive-thru" service can allow customers to order and pick up food from their cars. These types of services are provided by almost all of the fast food restaurants in Pakistan.

Nearly from its inception, fast food has been designed to be eaten "on the go" and often does not require traditional cutlery and is eaten as a finger food. Common menu items at fast food outlets include fish and chips, sandwiches,, fried chicken, French fries, chicken nuggets, pizza, and ice cream, although many fast-food restaurants offer "slower" foods like chili, mashed potatoes, and salads.

Modern commercial fast food is highly processed and prepared on a large scale, with bulk ingredients and standardized cooking and production methods. It is usually rapidly served in cartons or bags or in a plastic wrapping, in a fashion which minimizes cost. In most fast food operations, menu items are generally made from processed ingredients prepared at a central supply facility and then shipped to individual outlets where they are reheated, cooked (usually by microwave or deep-frying) or assembled in a short amount of time. This process ensures a consistent level of product quality, and is key to being able to deliver the order quickly to the customer and eliminate labor and equipment costs in the individual stores.

The fast food industry in Pakistan is very developed, and is expanding at a great speed. All over Pakistan, we can find an outlet of McDonalds, KFC, Pizza Hut, Dunkin Donuts and Subway at every corner, located at such locations where they can be easily accessible to their customers.

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INTRODUCTION TO THE ORGANIZATION

McDonald's a Global Phenomenon

Formed in 1954, McDonald's brand is the leading global foodservice retailer with more than 30,000 local restaurants serving nearly 50 million people in more than 120 countries each day. Its rich history began with the founder Ray Kroc's vision and his commitment, transformed in its talented executives, and will continue to keep the shine on McDonald's arches for years to come.

McDonald’s has become the best-known fast food brand in the world. McDonald’s has revolutionized the food industry, affecting the lives both of the people who produce food and the people who eat it. It is the world's largest chain of fast-food restaurants, primarily selling Cheeseburgers, Chicken, French fries, and Soft Drinks. The business began in 1940, with a restaurant opened by siblings Dick and Mac McDonald in San Bernardino, California. Kroc later purchased the McDonald brothers' equity in the company and led its worldwide expansion.

With the successful 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.

The largest fast food corporation in the world now has over 30,000 franchise outlets in 121 countries, and serves about 46 million people a day. It has become a symbol of the American way of life, now adjusting to different cultural patterns of different countries. It was once suggested by a journalist, who called it “the Golden Arches Theory of Conflict Prevention”, that no two countries with branches of McDonalds had gone to war.

McDonald's Mission

McDonald's mission is to be its customers' favorite place and to provide an environment with inspired people who delight each customer with unmatched quality, service, cleanliness and value, every time. McDonalds invites its customers to be the part of this winning team and gives everyone an opportunity to grow with the family of people striving to create smiles on the faces of millions of people everyday.

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Bright Move Forward

At McDonald's they never take their enviable success and that of their franchisees, for granted. They have become the leading brand that's known throughout the world through constantly moving with the times.

As lifestyles change so does McDonalds By keeping in tune with the ever-changing marketplace and ensuring that they have the ability to swiftly react, McDonalds brand keeps its competitive edge, and is more than ready to meet any challenges that are thrown their way.

McDonald's in Pakistan

Aiming to be the world's best quick service restaurant experience, McDonald's started its operations in Pakistan in 1998, and is a leading fast food service retailer for its valued customers since then. With a strong belief in the phrase when it's green it's growing, McDonald's Pakistan is growing with the focus to provide friendly and quick service restaurant experience to all its customers, countrywide. Currently McDonald's Pakistan is operating in various cities of Pakistan, including Lahore, Faisalabad, Karachi, Hyderabad, Islamabad & Rawalpindi, with plans to cover the customer base in various other cities of the country.

Lakson Group

McDonald's Pakistan is a part of the Lakson Group of Companies, with a regional office in Lahore and the main Head Office in Karachi. McDonalds is operating with a network of restaurants to reach its customers for providing friendly services in all different regions of the country.

The Team

To realize the McDonald's service vision, they believe in strengthening its team and to ensure that the right skills and knowledge are delivered to the right person for getting the right job done. McDonald’s strength for making its strong team players to shine under the Golden Arches lies in the People Practice and Development Program, which they focus to deliver.

McDonald Outlets

Most standalone McDonald's outlets offer both counter service and drive-through service, with indoor and sometimes outdoor seating. McDonalds also provides free delivery to its customer’s right at their doorstep. It is the world's largest chain of fast-

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food restaurants, primarily selling burgers, nuggets, French fries, milkshakes, pies, sundaes, children’s meal ensembles and soft drinks. McDonald offers food products for breakfast, lunch, dinner and everything in-between. Loaded with choices for every appetite, taste and occasion, its ever-expanding menu has been created to be great-tasting and just right for the lifestyle of Pakistan.

At McDonald's, they have always believed in the basics: beef, potatoes, fish, poultry, eggs, bread, vegetables and dairy products - the same wholesome foods their customers use at home. They are proud of the food they serve and they take very seriously the responsibility they have, to their customers to deliver hot, safe, freshly prepared and tasty food - every time and every day whenever their customer likes.

From McChicken to McFlurry desserts, every menu item meets McDonald’s quality standards and provides its customers with the great taste they expect from McDonald's.

INTRODUCTION TO THE TOPIC OF RESEARCH

The topic that I have researched on is “How Culture affects production trends in McDonalds”. In this research I have compared McDonald in different countries with

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the McDonalds in Pakistan, and how a same restaurant must change its production methods in order to meet the different cultural patterns of these countries.

By conducting this research I got to learn that how important it is to keep the cultural differences in mind when opening any type of business in different countries. These cultural patterns can be a major reason why businesses flourish in some countries and demolish in other countries.

McDonald's, a noted fast-food supplier, opened its first franchised restaurant in the US in 1955 (1974 in the UK). It has become a phenomenally successful enterprise in terms of financial growth, brand-name recognition, and worldwide expansion. Ray Kroc, who bought the franchising license from the McDonald brothers, pioneered many concepts which emphasized standardization. He introduced uniform products, identical in all respects at each outlet, to increase sales. At the same time, Kroc also insisted on cutting food costs as much as possible, eventually using the McDonald's Corporation's size to force suppliers to conform to this ethos.

In spite of a number of other fast food restaurants in Pakistan such as KFC, Pizza Hut, Dunkin Donuts, Mr. Burger, Papa Johns, Dominos, Pizza Express etc, McDonalds has maintained its image as the number one fast food restaurant in Pakistan, catering to people of all ages.

McDonalds has been popular for its quality, customer service and novelty, even though they are often the targets of popular anger towards American foreign policy or globalization more generally. Many consumers nonetheless see them as symbols of the wealth, progress and well-ordered openness of Western society and therefore become trendy attractions in many cities around the world, particularly among younger people with more varied tastes. This is also the case in Pakistan, and is one of the reasons why McDonalds is considered the number one hangout spot for teenagers.

McDonald also offers a value meal, which is a group of menu items offered together at a lower price than they would cost individually. They are very common at almost all the fast food restaurants in Pakistan. Value meals are a common merchandising tactic to facilitate bundling, up-selling, and price discrimination. Value Meals are basically considered a source of advertising which attracts customers and boosts up sales for these restaurants.

By conducting this research I got to know the different methods that fast food restaurants use to promote themselves, as well as how important culture is for their success, in terms of a large number of satisfied customers.

DATA/ STATISTICS ABOUT MCDONALDS

Consolidated Operating Results

Comparable Sales - McDonald's Restaurants

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Increase/(Decrease)

U.S. Europe APMEALatin

America Canada Total

2006 5.2% 5.8% 5.5% 14.6% 4.7% 5.7%

2005 4.4% 2.6% 4.0% 11.6% 0.3% 3.9%

2004 9.6% 2.4% 5.6% 13.0% 5.4% 6.9%

Systemwide Sales - McDonald's Restaurants

Increase/(Decrease)

U.S. Europe APMEA Latin America Canada

2006 6% 8% 5% 21% 12%

2005 5% 4% 6% 21% 8%

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Total Revenues

Total Revenues (11 years)

(in millions)

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Total revenues

$10,687 $11,409 $12,421 $13,251 $14,172 $14,738 $15,201 $16,825 $18,594 $19,832 $21,586

Total Revenues by Segment

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(in millions)


America CanadaCorporate &

Other Total

2006 $7,464 $7,638 $3,053 $1,659 $1,081 $691 $21,586

2005 $6,955 $7,072 $2,815 $1,327 $948 $715 $19,832

2004 $6,525 $6,737 $2,721 $1,008 $898 $705 $18,594

2006 Revenues by Segment

Segment $ Millions Percent

U.S. $7,464 35%

Europe $7,638 35%

APMEA $3,053 14%

Latin America $1,659 8%

Canada $1,081 5%

Corporate & Other $691 3%

Total $21,586 100%

Operating Income/ Net Income

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Operating Income (11 years)

(in millions)

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Operating Income

$2,633 $2,808 $2,762 $3,324 $3,352 $2,721 $2,128 $2,837 $3,538 $3,992 $4,445

Net Income (11 years)

(in millions)

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Net Income

$1,573 $1,642 $1,550 $1,948 $1,977 $1,637 $893 $1,471 $2,279 $2,602 $3,544

Restaurant Numbers

Systemwide Restaurants by Segment

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America CanadaCorporate &

Other(2) Total

2006 13,774 6,403 7,822 1,656 1,391 621 31,667

2005 13,727 6,352 7,692 1,617 1,378 631 31,397

2004 13,673 6,287 7,567 1,607 1,362 656 31,152

Systemwide Restaurants by Type (11 years)

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FranchisedCompany-Operated Affiliated Total

2006 18,687 8,785 4,195 31,667

2005 18,326 8,802 4,269 31,397

2004 18,240 8,811 4,101 31,152

2003 18,125 8,661 4,038 30,824

2002 17,859 8,773 4,244 30,876

2001 17,392 8,204 4,320 29,916

2000 16,795 7,548 4,260 28,603

1999 15,949 6,022 4,301 26,272

1998 15,086 5,433 3,994 24,513

1997 14,197 4,887 3,844 22,928

1996 13,374 4,294 3,216 20,884

COMPARISON WITH FOREIGN MARKET

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Introduction

McDonald’s has become the best-known fast food brand in the world. It has 30,000 restaurants in 120 countries, and for many years has come to symbolize the hopes and the fears of the Americanization of global culture. McDonald’s revolutionized the food industry, affecting the lives both, of the people who produce food and the people who eat it.

McDonald's continues to do what it does best: offers its customer a "good, nutritious, quickly served meal in a clean and pleasant atmosphere at a reasonable price". This is evident from the McDonalds outlets situated all around Pakistan. The standards set by McDonald's are higher than anyone else. They thoroughly check their products before offering it to the customers. They require up to 40 quality assurance tests per batch of burger patties. Every batch is numbered and ready within 20 minutes, McDonald's can trace any product produced for their restaurants from "harvest to consumption".

In order to ensure that quality doesn't become a series of mindless checks and balances, staff is held directly accountable for hygiene and quality standards in their duties. Temperatures of the refrigerated trucks are double checked for accuracy before product is loaded. This is done again on delivery to restaurants, and the staff throughout the process takes responsibility for ensuring the cold chain is not broken.

In the restaurant, product control procedures are geared towards McDonald's delivering on its 90-second order according to its delivery promise that McDonalds has made with its customers, while maintaining strict hygiene standards. The staff at McDonalds washes their hands every hour and sanitizes every half-hour.

The McDonald's forecasting programme allows each restaurant to accurately predict how many of each item will be sold throughout the day. Ready-to-go items are held for a limited number of minutes in anticipation of a sale, and thrown out once the holding time expires.

Summary of Country Activities- Key Markets

Within the global framework of menu choice, McDonald’s is working to support balanced, active lifestyles in different ways around the world, depending on the needs and opportunities present in local markets. The following capsules highlight some of the activities undertaken by McDonalds in each of the Major Markets.

Australia

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The people of Australia are more weight conscious and are very much health conscious. Therefore to cater the needs of such people, McDonalds make the following modifications in its menu:

Salads Plus MenuIn August 2003, McDonald’s Australia launched Salads Plus, a new eight-item menu platform that includes a Chicken Foldover, Roast Chicken Salad, Berrynice Yogurt Crunch, Raspberry Muffin Lite, Orange and Poppyseed Muffin Lite, Vege Burger, Garden Mixed Salad and apples. The Salads Plus items all feature 10 grams of fat or less per serving.

Deli ChoicesMcDonald’s Australia introduced Deli Choices, a sandwich menu introducing a new taste and freshness to the South Australian market. Deli Choices consist of toasted rolls with premium fillings made upon order. The Deli Choices range includes Bacon and Egg, Classic Ham, Chicken Caesar, Vege Plus, Italian Supreme, Chicken Tandoori and Turkey and Cranberry.

Happy Meal ChoicesMcDonald’s Australia also launched a new Happy Meal option available for breakfast and afternoon meals. The new option includes a toasted cheese and tomato sandwich, sultanas (raisins) and orange juice and contains fewer than 6 grams of fat per serving.

Canada

Saladsplus and Protein PlattersMcDonald's Canada launched the Lighter Choices menu consisting of products with significant reductions of calories or fat – and most often both. The menu has since evolved to meet the changing tastes of Canadians and today, the re-branded saladsplus menu category, includes three entrée salads, one side garden salad, a Fruit ‘n Yogurt Parfait and Chicken Fajitas. Since the launch of saladsplus, McDonald’s Canada has sold more than 5.5 million entrée salads and more than 1.5 million side salads.

Happy Meal ChoicesMcDonald’s Canada launched Happy Meal Choices, offering customers more options to choose from when ordering their favorite Happy Meal. Happy Meal Choices offers customers a choice of a hamburger, cheeseburger, Chicken McNuggets made with white meat or a grilled cheese sandwich, accompanied by a small-size french fry order, drink and a featured toy.

China

Happy Meal ChoiceMcDonald’s China added several choices to their Happy Meal offerings, including two new Happy Meal main course options – a cheese and egg sandwich on a steamed bun, and potato and Chicken Dino McNuggets, and a new drink option – milk.

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Europe – France, Germany, Spain, United Kingdom

Through the work of the European Nutrition Task Force and the assistance of the Nutritionist Steering Group and other expert consultants, McDonald’s Europe has developed a common approach to support balanced, active lifestyles and several shared activities for the region that take into account differing customer needs in Europe.

Salads Plus16 countries in Europe launched Salads Plus, a set of new menu options designed to enhance the choice and variety of products available to McDonald’s customers. The Salads Plus launch offering included two meal-size Premium Salads topped with grilled or crispy chicken, a mixed side salad, a grilled chicken sandwich on olive and sun dried tomato ciabatta bread, a fruit and yogurt parfait with vanilla yogurt and an apple and grape fruit bag. Among those aware of the Salads Plus range, almost 70% agree that Salad Plus is a positive addition to the McDonald’s menu.

The European Nutritionists Steering Group recognized the Salads Plus options as providing even more choice for McDonald’s customers. For example, the group noted that it offers several items that contribute one or two portions of the recommended five portions of fruit and vegetables a day and three chicken items that are good sources of protein.

Happy Meal ChoicesAcross Europe, a variety of new choices have been introduced to McDonald’s Happy Meals, and more are planned. In early 2005, McDonald’s UK announced that five new food and drink items would be added to the Happy Meal menu, bringing more variety and making fruit, vegetable and no-added-sugar choices fun alternatives for children.

Japan

Menu ChoicesMcDonald’s Japan offers customers a range of different side items to choose from when ordering Extra Value Meals, including hotcakes (pancakes) and a garden salad. In March 2004, the Company added Fish McDippers.

Happy Meal ChoiceMcDonald’s Japan offers both breakfast and lunch/dinner Happy Meals. Customers have a choice of four main dish choices at breakfast, including petite pancakes, and five main dish choices at lunch/dinner, including a four-piece Fish McDippers. Happy Meal beverage choices include 100% orange juice, 100% apple juice, a 50% fruit – 50% vegetable juice blend, oolong tea (which accounts for over 60% of beverage choices), milk and carbonated beverages.

USA

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Premium SaladsIn March 2003, McDonald’s USA introduced three entree-size Premium Salads topped with grilled or crispy chicken breast, each paired with Newman’s Own® dressings. A side salad is also offered. Each Premium Salad provides two servings of vegetables, and the side salad provides one serving of vegetables, based on the serving size defined by the U.S. Department of Agriculture’s Food Guide Pyramid. The salads in the US, equate to 600 million servings of vegetables.

First Ever Go Active! Happy Meal for AdultsFrom May through July 2004, McDonald’s US business offered the “Go Active! Happy Meal for Adults”, nationwide. This adult Happy Meal contained a Stepometer™, a Step with It!™ booklet developed by noted exercise physiologist, personal trainer to Oprah Winfrey and best-selling author Bob Greene, a McDonald’s Premium Salad and bottled water or a soft drink. The Go Active! Happy Meal for adults was available nationally in May 2004.

Other Menu ChoicesMcDonald’s USA also offers a Chicken McGrill sandwich, Fruit 'n Yogurt Parfaits, Minute Maid 100% orange juice, 1% low-fat white and chocolate milk and, at many restaurants, soup. customers may also special order menu items to help meet their nutritional needs. In November 2003, McDonald’s introduced new Chicken McNuggets made with white meat.

McDonald’s restaurants in the U.S. have a national core menu in place that simplifies restaurant operations and provides a balance of choices for customers.

Pakistan

Menu Choices

McDonalds in Pakistan also launches new products from time to time, in order to cater to the changing tastes of its customers. Until now, McDonald has launched the McSpicy Burger, McFish Burger, Big Mac (both chicken and beef), McArabia, McNuggets, and McCheesedips. People in Pakistan are fonder of eating chicken than

beef; therefore many products offered by McDonalds in Pakistan are chicken products. McDonalds launched the McFish Burger, in order to cater to the people who are vegetarians and do not eat meat, and also the more health conscious people.

McDonalds also offers different types of desserts because people are as fond of sweet dishes in Pakistan as they are of Chicken. McDonalds has launched the apple pie, Chocloate and Vanilla Sundaes with nuts or icing, the McFlurry Ice Cream in both oreos and M&M flavour. McDonalds also offers different ice cream shakes, such as mango, strawberry etc, depending on the season.

McDonalds in Pakistan

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The basic aim of McDonalds is to attract a large number of customers and to retain them by offering them high-quality service and by satisfying their demands. In order to meet up with its aim McDonalds is opening up its outlets around the whole world. Nowadays we can find McDonalds almost everywhere, in any country.

Even in Pakistan McDonalds has opened up its outlets countrywide, in almost all of the major cities. There are now approximately 20 restaurants around Pakistan, satisfying the needs of thousands of people around Pakistan. McDonalds is more popular among children than adults in Pakistan, and this is mostly because of its friendly and comfortable environment. Clean and bright, it offers its customers just the cafe-style experience they have been looking for where they can relax, chat and eat. Quite simply, it fits in with their lifestyles.

McDonald's in Pakistan also feature large indoor playgrounds, called "McDonald's PlayPlace"]. The PlayPlace provides the children with the familiar crawl-tube design with ball pits and slides, providing the children with a place to play and enjoy themselves while the adults relax and enjoy the pleasant, friendly environment.

McDonalds in Pakistan offers a lot more than just its comfortable and unique interior. Even the service provided at all the outlets of McDonalds is top class. The employees work very hard and are very friendly and helpful. The people working in the McDonald’s chain are represented by their service, hospitality, and pride. The staff employed in McDonald’s is continuously trained and retained in the company.

The appeal now of McDonald’s is aimed deliberately at children, because they are the main customers. If they are successful in attracting the children, then the children would bring their whole families along with them, thus increasing McDonald’s customer base.

The logo for McDonald’s is the golden arches of the letter M on a red background. Market research has found that children can recognize a brand logo before they can recognize their own name. That is why the logo has been printed in such colors to attract the children. The design of McDonald’s includes the traditional McDonald's yellow and red colors, but the red is muted to terra cotta, the yellow is golden for a more "sunny" look, and olive and sage green is added. To warm up the look, the

restaurants have less plastic and more brick and wood, with modern hanging lights to produce a softer glow. There is a playground, in bright primary colors. There is sweet, salty, fatty food you eat with your fingers. There is a clown called Ronald McDonald to greet you, and there’s the prospect of free film and TV tie-in toys with the “Happy Meal”. This is how McDonalds attracts its customers.

These are the different tactics and props used by McDonalds in Pakistan, to attract new customers and to retain its old customers.

Comparison of McDonalds around the World

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The wind of change is blowing through the empire of fast food. The vision of endless growth through new markets across the planet for fast food companies now looks unsustainable when it’s not what people want anymore. When fashions, styles and tastes change, it’s time to adapt or die. As the fast food companies have expanded around the world, they have had to adapt to local sensitivities.

In the old days, no franchise holder could deviate from the 700 page McDonald’s operations manual known as “the Bible”. But that policy has to be changed, keeping in mind the different cultures of the different countries where McDonalds is operating now. McDonalds around the world typically modifies it menu to cater to local tastes. McDonald's in India, for example, uses lamb rather than beef in its burgers because Hinduism traditionally forbids eating beef. In Israel, the majority of McDonald's restaurants are kosher and respects the Jewish Shabbat, there is also a kosher McDonald's in Argentina. In Egypt and Saudi Arabia, all menu items are halal.

In all the restaurants located all over Pakistan all the food items are made from Chicken, Beef or Fish only. There were disturbances in Pakistan when it was learned that the Chicken being used at McDonald’s was not Halal. But this misconception was cleared by McDonalds to the Pakistan public that the chicken being offered was not only halal but was being brought to them in a very hygienic manner. All chicken products at all the branches of McDonalds offered to its customers were halal. These include chicken nuggets, chicken selects, chicken McPremiere, McChicken and chicken snack wrap. Likewise, McDonald’s in Pakistan also offers three spicy “McMaza meals”, Chatpata Chicken Roll, Chicken ' Chutni Burger and Spicy Chicken Burger. All three are served “with Aaloo fingers and a regular drink”. These changes were made keeping in mind the culture or Pakistani people. Pakistanis usually prefer spicy food items, and therefore food items such as Chatpata Chicken Roll and Chicken Chutni Burger were added by McDonalds in their food menu, to keep up with the publics demand.

Even though animal welfare is very important to McDonalds, still it slightly changed its morals by accepting the culture of Muslims and allowing animal slaughter. Ritual slaughter is something that McDonalds would never have considered before opening its branches in the Muslim countries. In Pakistan at the point of slaughter a qualified Muslim slaughter officer offers a prayer before slaughtering the animal.

According to the officials at McDonalds, they were always looking to see how as a business they could meet the demands of their customers. And in order to meet the demand of the Muslim population they altered their values by allowing animal slaughter in order to serve halal food.

Similarly in the 34 restaurants in India, the “Maharaja Mac” is made of mutton, and the vegetarian options contain no meat or eggs. There were disturbances in India when it was learned that McDonald’s french fries were precooked in beef fat in the USA, because Hindus revere cows and cannot eat beef. Therefore McDonalds makes sure that it doesn’t serve any meat item in any of its branches in India in order to show respect towards their culture and beliefs.

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Similarly in the United States people enjoy eating ham, therefore McDonalds offers hamburgers there. Ham is forbidden in Islam therefore it is not sold in any of the Muslim countries, including Pakistan. McDonalds respects the different cultures and the beliefs of different religions, therefore it alters its beliefs and values in order to meet up to the demand of its customers, and makes sure not to disappoint them in any way.

McDonalds also offers halal food in many of its restaurants around the world including at two restaurants in Melbourne, Australia, and also in some restaurants in the United States. Sales were significantly boosted when the Muslim customers were told that their food was halal and that their hamburger meat was slaughtered and blessed in accordance with Islamic rules laid down in the Koran. Halal meat is from animals that have been stunned and bled facing Mecca and blessed using the name of Allah.

Cows into Burgers

A hamburger is not usually made of ham but of ground-up beef, shaped into a patty, which is then grilled and placed between the two halves of a sesame seed bun.

According to McDonalds in United States, it takes a lot of cows to provide the country’s hamburgers, and turning so many cattle into so much beef meat needs an industrial process. Cattle eat grass at pasture or on the range, but in the USA many are specially fattened up for their last three months before slaughter.

When the cattle are driven into the slaughterhouse, the “knocker” shoots each one in the head with a compressed air stunner that drives a steel bolt into its brain, knocking the beast unconscious. The cow falls down, and another worker attaches a chain round a rear leg which then hauls the animal into the air upside-down. The “sticker” then severs the carotid artery in the neck, one every ten seconds. The whole carcass is then carried on down the disassembly line past other workers with chain-saws, hooks and knives who carve it up further into the bits for retail.

While in Pakistan, the cows are slaughtered in the traditional manner. In Pakistan at the point of slaughter a qualified Muslim slaughter officer offers a prayer before slaughtering the animal. The animals are stunned and bled facing Mecca and are blessed using the name of Allah. This is the traditional manner of slaughtering animals according to Islam, and is also followed by McDonalds in Pakistan too.

Chicken into Burgers and Nuggets

In 1979, when poultry was becoming more fashionable to eat and sales of beef were wilting, Fred Turner, the Chairman of McDonald’s had an idea for a new meal. “I want a chicken finger-food without bones, about the size of your thumb. Can you do it?” he asked.

After six months of research, the food technicians and scientists managed to reconstitute shreds of white chicken meat into small portions which could be breaded,

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fried, frozen then reheated. They used chemical stabilizers but also beef fat to enhance their taste.

Test-marketing the new product was positive, and in 1983 they were launched in the USA under the name Chicken McNuggets and burgers such as Spicy McChicken and Chicken Big Mac.

These were so successful that within a month McDonald's became the second largest purchaser of chicken in the USA, after Kentucky Fried Chicken.

Similarly in Pakistan, the demand for chicken has revolutionized the poultry industry. McDonalds in Pakistan keeps up with the demand of its customers by offering various chicken food items such as Chicken n McCheese, McChicken, McNuggets, Spicy McChicken and Chicken Big Mac. People in Pakistan are very fond of eating chicken and a large number of people prefer eating chicken rather than beef. Therefore McDonalds satisfies this large number of people by offering Chicken food items in the form of different burgers and nuggets.

Nowadays, Pakistanis are eating more chicken than beef, including children. Children love the McNuggets provided at McDonalds, maybe because they are soft and are easier to eat.

Fries are Divine

French Fries are considered to be the most famous food of any restaurant, let it be a fast food restaurant or an elite restaurant. People love eating fries, especially children. French fries are thought to be the most popular, and the most eaten food among people. But at McDonalds, even French fries are prepared with a lot of care, keeping in mind the different culture patterns in different countries.

In June 2002 McDonald's was forced to pay out US$10 million to Hindu and vegetarian groups in the USA because it had misled them about whether its French fries were vegetarian. Hindus do not eat beef for religious reasons. And the McDonald's fries, groups of Hindus and vegetarians had eaten had been pre-cooked in beef tallow –which had been described as “natural flavoring.” After this incident the people at McDonalds India were very careful in preparing the French fries in vegetable oil only and not in any other oil. They were also cautious that no beef flavoring was added to the potatoes during the production of fries.

Meanwhile, in the United States French fries production includes a small amount of beef flavoring, which is added during potato processing - at the plant. After the potatoes are washed and steam-peeled, they are cut, blanched, dried, par-fried, and frozen. It is during the par-frying process at the plant that the natural flavoring is used. These fries are then shipped to the different McDonalds restaurants. Then the French fries are cooked in vegetable oil at the restaurants.

On the other hand in Pakistan the French fries are produced wholly at the McDonalds outlets. They use fresh potatoes, which are cut by the workers in the outlets and are

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not sent to any factory for potato processing. When the potatoes are peeled and cut, no flavoring of any type is added to them. They are just fried in the best and low cholesterol vegetable oil, keeping in mind the health of its customers. The fries are provided to the customers in three sizes ranging from small, medium to large.

Fish Burger

Keeping in mind the traditional culture of Pakistan, McDonalds has also introduced the fish burger in Pakistan, known as the Filet-O-Fish. The people of Pakistan are very fond of seafood, with fish taking the top position. Not only is it enjoyed by people but it is also very healthy. Therefore McDonalds introduced this burger to keep its customers satisfied and to provide them with something that relates to their culture. This burger was introduced especially for the people of Pakistan.

Beverages and Dessert

In beverages McDonalds offers the usual Coca Cola, Sprite and Fanta. But apart from these McDonalds also offers milkshake, mango shake and chocolate shake. The people of Pakistan are fonder of drinking such drinks rather than the usual soft drinks.

In dessert McDonalds offers ice cream cones, sundaes and apple pie. The ice cream cones are more famous among children. For the children, McDonalds has also introduced a new type of ice cream called McFlurry, which has Oreo biscuits or M&M’s floating in plain vanilla ice cream. It has become very famous among children.

ANALYSIS OF DATA

The global comparable sales of the McDonald's Corporation rose 8.1% in August. System wide sales for McDonald's restaurants worldwide increased 12.3% for the month (9.3% in constant currencies).

McDonald's Chief Executive Officer Jim Skinner said, "Our worldwide sales momentum continues, thanks to our customer-focused emphasis on menu variety and value, convenient service, innovative marketing and contemporary restaurants. It is clear that customers are looking for a simple, easy and enjoyable restaurant experience, and we are pleased that more and more customers are finding that experience at McDonald’s."

U.S. comparable sales rose 7.4% in August due to the ongoing strength of the Company’s breakfast business, beverages and new food offerings.

Sustained positive sales growth in France, the U.K. and Germany drove Europe’s comparable sales up 6.1% for the month. Special summertime menu offerings, along with relevant marketing, resonated with customers.

Comparable sales increased 12.4% in Asia/Pacific, Middle East and Africa due to

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robust sales in Japan, Pakistan, India, Australia and China. Locally relevant menu promotions, extended hours and breakfast, along with constant modifications in the products offered by McDonalds, contributed to this performance.

Total Revenue shows the total revenue earned by McDonalds from its outlets situated all around the world, in USA, Europe, Asia/ Pacific, Middle East, Africa, Latin America, Canada, etc. The revenue earned is also shown in segments that how much revenue is earned by each segment.

Comparable sales represent sales at all McDonald's restaurants in operation at least thirteen months including those temporarily closed, excluding the impact of currency translation. Some of the reasons restaurants may be temporarily closed include road construction, remaking or remodeling, and natural disasters. Management reviews the increase or decrease in comparable sales compared with the same period in the prior year to assess business trends.

Systemwide sales include sales at all McDonald's restaurants, including those operated by the Company, franchisees and affiliates. Management believes Systemwide sales information is useful in analyzing the Company's revenues because franchisees and affiliates pay rent and/or royalties that generally are based on a percent of sales with specified minimum rent payments.

Operating/ Net Income shows the profit earned by McDonalds by deducting all the expenses incurred by McDonalds from the total revenue earned by it. It shows the profit derived from the operations carried on by McDonalds around the world.

CONCLUSION

McDonald’s represents the homogenization of the world due to its success over the decades in spreading its arches across the globe. McDonald’s has provided millions of jobs throughout the world and participated in programs to improve the community.

McDonalds understands that keeping the restaurants clean and well maintained is just as crucial as serving quality food. McDonald’s believes in ensuring that it offers brilliant customer service and a safe, and a fun environment that McDonald’s customers expect.

McDonald believes in keeping everything super clean and running smoothly. That is why all the employees are made to work in such a way that McDonald’s image as a “Safe, and fun restaurant providing quality food”, is maintained.

All the employees working at McDonald’s are made to follow a routine, which they must follow. This ensures that work is done without any hassle and difficulty. McDonald's products are adapted to suit each country. In India, for example, mutton and veggie burgers replace beef burgers. In the United States where nutritional content is a big issue, leaflets and pamphlets indicate a breakdown of ingredients and

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calorie content. In South Africa fries are made with 100% pure sunflower oil with no additives. Fries in the United States are made with oil to which a minute amount of meat flavoring has been added. This is a result of the type of potatoes available there, as well as the preference of consumers.

McDonald takes extra care in the general and detail cleanliness of the restaurant and parking lot. It ensures daily filtering to ensure quality products, along with maintaining offloads, check-in and organizing deliveries. It takes care of minor equipment troubleshooting and repair. It ensures rooftop cleanliness and maintenance.

McDonald’s approach to supporting balanced, active lifestyles differs around the world, but its goals remain the same - to continue to address the wishes of its customers by offering even more menu choice, providing access to user-friendly nutrition education and information, supporting physical activity and communicating the importance of energy balance. Children and families are valued customers of McDonald’s, and therefore McDonalds will continue to work hard to earn and keep their trust with responsible communications and quality food.

As the needs and demands of the customers change, McDonalds will continue to evolve its approach and programs. McDonald believes this will help its customers to continue to make McDonald’s a part of reaching their balanced active lifestyle goals.

RECOMMENDATIONS

McDonalds Pakistan should have a proper website, providing its customers with proper information regarding their quality, service and products.

McDonalds should pursue ways to add further choice to its menu, particularly new choices for children and more fruit and vegetable items.

McDonalds should explore new ways to deliver nutrition and energy balance information to its customers.

McDonalds should demonstrate responsible leadership in its marketing and communications practices.

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McDonalds

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