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PROJECT REPORT

MCDONALD’S

 Name of the Institute : Institute of business and management uet lhr 

Group members : Khurram Hayat

Adnan Madni

  Fiza Murtaza

Fatima Zahra

  Maryam Rafiue

!lass : M"A #$%

&ubmitted 'o : &ir Imtiaz ul ha

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ACKNOWLEDGEMENT

I ha(e ta)en efforts in this pro*e+t$ Ho,e(er- it ,ould not ha(e been possible,ithout the )ind support and help of many indi(iduals and organizations$ I

,ould li)e to e.tend my sin+ere than)s to all of them$

I than) my God for pro(iding me ,ith e(erything that I reuired in +ompleting

this pro*e+t$

I ,ould li)e to e.press my gratitude to,ards my parents for their )ind +o/operation and en+ouragement ,hi+h helped me in the +ompletion of this pro*e+t$

I ,ould li)e to e.press my spe+ial gratitude and than)s to industry persons for gi(ing me su+h attention and time$

My than)s and appre+iations also go to my +lassmates in de(eloping the pro*e+t

and to the people ,ho ha(e ,illingly helped me out ,ith their abilities$

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FA&' F001 R2&'A3RAN'An IN'R013!'I0N

A fast food restaurant- also )no,n as a ui+) ser(i+e restaurant 45&R6 ,ithin

the indus try i tsel f- i s a spe+i fi + type o f restaurant  +hara+terized both by

its fast food +uisine and by minimal table ser(i+e$ 

Food ser(ed in fast food restaurants typi+al ly +aters to a 7 meat/s,eet diet7

and is offered from a l imited menu8 is +oo)ed in bul) in ad(an+e and )ept

hot8 is finished and pa+)aged to order8 and is usually a(ailable ready to ta)e

a,ay- though seating may be pro(ided$

Fas t food res tauran ts a re usual ly par t o f a restaurant +hain or f ran+hise

opera tion - ,hi+h p ro(i sions s tandard ized ingredien ts and 9o r par ti al ly

 prepared foods and supplies to ea+h restaurant through +ontrolled supply

+hannels$

Arguably the first fast food restaurants origin ated in the 3nited

&tates ,ith A; in <=<> and ;hi te !as tl e in <=?<$ 'oday- Ameri+an/founded fast food +ha ins su+h as M+1onald@s and KF! are multinational

+orporations ,ith outlets a+ross the globe$

ar iat io ns o n th e f as t f oo d r es ta ura nt + on +e pt i n+ lu de f as t + as ua l

restaurants and +atering tru+)s $ Fast +asual restaurants ha(e higher s i t/ in

ratios- and +ustomers +an sit and ha(e their orders brought to them$ !atering

tru+)s often par) *ust outside ,or)sites and are popular ,ith fa+tory ,or)ers$

&ome tra+e the modern history of fast food in Ameri+a to Buly C- <=<?- ,ith

the opening of a fast food restaurant +a lled the Automat  in Ne, Dor)$ 'heAutomat ,as a +afeteria ,ith its prepared foods behind small glass ,indo,s

and +oin/operated slots $ Boseph Horn and Fran) Hardart had already opened

the f ir st Ho rn H ar da rt   A ut oma t i n E hi la de lp hi a i n < = ?- b ut t he ir  

Automat a t " road,ay and <#th & tree t- i n Ne, Dor) ! ity- + reated a

sensat ion$ Numerous Automat restaurants ,ere buil t around the +ountry to

deal ,ith the demand$ Automats remained e.tremely popular throughout the

<=?s and <=#s $ 'he +ompany a lso popular ized the not ion of ta)e/out

food- ,ith their slogan ess ,or) for Mother$

Modern +ommer+ia l fas t food i s h ighly pro+essed and prepared on a la rge

s+a le f rom bul) ingred ient s using s tandardized +oo)ing and p rodu+t ion

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methods and euipment$ It is usually rapidly ser(ed in +artons or bags or in a

 plasti+ ,rapping- in a fashion ,hi+h redu+es operating +osts by al lo,ing

rapid produ+t identif i+at ion and +ounting- promoting longer holding t ime-

a(oiding transfer of ba+teria - and fa+i l i tat ing order fulf i lment $ In most fast

food operat ions- menu i tems are general ly made from pro+essed ingredients prepared at a +entral supply fa+il it ies and then shipped to indi(idual outlets

,here they a re +oo)ed 4usua lly by g ri ll - m i+ ro,a(e - o r deep/ frying6 o r  

assembled in a short amount of time either in anti+ipation of up+oming orders

4i $e$ - 7 to sto+)76 or in response to a+tual orders 4 i $e $- 7 to order76 $ Follo,ing

s tandard opera ting p ro+edures- p re /+oo)ed p rodu+t s a re monitored for  

freshness and disposed of i f holding t imes be+ome e.+essi(e$ 'his pro+ess

ensures a +onsis tent le(el of produ+t ual i ty - and i s )ey to de l i(er ing the

order ui+)ly to the +ustomer and a(oiding labour and euipment +osts in the

indi(idual stores$

'o ma)e ui+) ser(i+e possible and to ensure a++ura+y and se+uri ty- many

fast food restaurants ha(e in+orporated hospitality point of sale systems $ 'his

ma)es i t possible for )i t+hen +re, people to (ie, orders pla+ed at the front

+ounter or dri(e through in real t ime$ ;ireless systems allo, orders pla+ed at

dri(e through spea)ers to be ta)en by +ashiers and +oo)s$ 1ri(e through and

,al) through +onfigurations ,ill allo, orders to be ta)en at one register and

 paid at another$ Modern point of sale sys tems +an operate on +omputer 

n et ,o r) s u si ng a ( ar ie ty o f s of t, ar e p ro gr am s$ & al es r e+ or ds + an b e

generated and remote a++ess to +omputer reports +an be gi(en to +orporateoffi+es- managers- trouble/shooters- and other authorized personnel$

The aim of this project is to conduct a market study on a thriin! fast

food restaurant" !oin! deep into its formation" history and !ro#th$ then

to ana%yse the reason that make i t so popu%ar&

In this pro*e+t ,e ,il l be +ondu+ting a mar)et s tudy on the global fast food

giant M+1onaldJs$

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MCDONALD'(

AN )NT*OD+CT)ON

M+1onald @s !orpora t ion 4 ND&2: M!16 is the ,orld@s largest +hain

of hamburger  fast food restaurants - ser(ing around > million +ustomers daily

in <<= +ountries$

Headuartered in the 3nited &tates- the +ompany began in <=L as a barbe+ue

res tauran t ope ra ted by Ri+hard and Mauri+e M+1onald8 in <=L they

reorganized their business as a hamburger stand using  produ+tion

line prin+iples$ "usinessman Ray Kro+ *oined the +ompany as a f ran+hi se

agent in <=%%$

Ray Kro+ subseuently pur+hased the +hain from the M+1onald brothers ando(ersa, its ,orld,ide gro,th$

A M+1onald@s restaurant is operated either by a fran+hisee- or an affiliate- or 

the +orpora tion i tsel f$ ' he +orpora tion @s r e(enues +ome f rom the r en t-

royal ties and fees pa id by the f ran+hisees - as ,ell as sa les in +ompany/

operated restaurants$

M+1onald@s re(enues gre, ?C per+ent o(er the three years ending in ?C to

??$ billion- and = per+ent gro,th in operating in+ome to #$= billion$

M+1onald@ s p rimari ly sel ls hamburgers- +heese burgers -  +hi+)en- Fren+h

fries-  brea)fast  i tems- soft dr in)s - mil)sha)es and desserts$ I n r es po ns e t o

+ han gin g + on su mer t as tes - th e +o mp an y h as e .p an de d it s me nu t o

in+lude salads- ,raps- smoothies and fruits$

In Buly ?<<- M+1onald@s announ+ed that their largest restaurant in the ,orld

,i ll be bui l t on the ?<? ondon 0lympi+s  si te $ 'he restaurant ,il l +ontain

o(er <-% seats and is half the length of an Ameri+an Footbal l f ield$ 0(er 

LC staff ,il l be employed ser(ing on a(erage 4during the ?<? 0lympi+s6

<- port ions of f r ies - % - "ig Ma+s and #- Mil)sha)es $ 'his

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restaurant ,il l o(ershado, the +urrent largest M+1onald @s in the ,orld in

Mos+o,- Russia$ In Banuary ?<?- the +ompany announ+ed re(enue for ?<<

rea+hed an al l / t ime high of ?C bi l l ion- and that ?L restaurants ,ould be

updated and <# ne, ones opened ,orld,ide$

,)(TO*- O. MCDONALD'(

'he M+1onald@s r es ta ur an t + on +e pt , as i nt ro du +e d i n &an "ernardino-

!alifornia by 1i+) and Ma+ M+1onald of Man+hester- Ne, Hampshire $ It ,as

modif ied and e.panded by thei r business partner - Ray Kro+- o f 0a) Ear)-

Illinois- ,ho later bought out the business interests of the M+1onald brothers

in the +on+ept and ,ent on to found M+1onald@s !orporation $

Ear%y history

In <=#C- Eatri+) M+1onald opened 7'he Airdrome7- an o+tagonal food stand-

on Huntington 1ri(e in Monro(ia- !alifornia $ In <=L- his t,o sons- Mauri+e

and Ri+hard   47Ma+7 and 7 1i+)76- mo(ed the entire building to <#= North 2

& tr ee ts i n &an "ernard ino- !al ifornia $   ' he r es tau ra nt ,a s r en ame d

7M+1onald@s Famous "arbeue7 and ser(ed o(er fort y barbeued items$

I n < =% #- t he M +1 on al d b ro th er s b eg an t o f ra n+ hi se t he ir s u+ +e ss fu l

restaurant - s tar t ing in Ehoeni.- Arizona and 1o,ney and !ali fornia $ 'h e

M+1onald brothers +rea ted &peedee to symbolize the ui+) and eff i+ient

ser(i+e system that they had de(ised$ 1o,ney@s &peedee is one of only a fe,

remaining and 1o,neyJs restaurant is the oldest operating M+1onald@s in the

,orld$

Re+ognizing the histori+ and nostalgi+ (alue of the inta+t <=%# stru+ture- the

M+1onald @s !orporat ion a+uired the store in <== and rehabil i tated i t to a

modern but nearly original +ondition$

In <=%L- Ray Kro+- suggested that they fran+hise their restaurants throughout

the +ountry$ He got the rights to set up M+1onald@s restaurants throughout the

+ountry- e.+ept in a handful of terr i tories in !alifornia and Arizona already

li+ensed by the M+1onald brothers$

Kr o+ @s f ir st M +1o na ld @s r es ta ura nt o pe ned in 1 es E la in es - I ll in oi s-

near !hi+ago- on Apr i l <% - <=%%- the same day tha t Kro+ in+orpora ted his

+ om pa ny a s M +1 on al d@ s & ys te ms - I n+ $ 4 ,h i+ h h e ,o ul d l at er r en am eM+1onald@s !orporation6$

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"y <=%- there ,ere #L restaurants $ In <=%=- ho,e(er- Kro+ opened > ne,

restaurants- bringing the total to <? lo+ations$

Phenomenal growth in the 1960s and 1970s

In <=>- the M+1onald@s ad(ertising +ampaign 7oo) for the Golden Ar+hes7

ga(e sales a big boost In <=>?- M+1onald@s introdu+ed its no, ,orld/famous

Golden Ar+hes logo$ A year later- the +ompany sold i ts bi l l ionth hamburger 

and introdu+ed Ronald M+1onald - a red/haired +lo,n ,ith part i+ular appeal

to +hildren$

In the early <=>s- M+1onald@s really began to ta)e off$ In <=>< Kro+ bought

out the M+1onald brothers for ?$C million- aiming at ma)ing M+1onald@s the

number one fast/food +hain in the +ountry$

I n < => %- M +1 on al d@ s ! or po ra ti on , en t p ub li +$ I n < = %- M +1 on al d@ s

!orpora t ion be+ame one of the # +ompanies tha t ma)e up the 1o, Bones

Industrial A(erage$

M+1onald @ s su++ess in the <=>s ,as in la rge par t due to the +ompany @s

s)ilful mar)eting and fle.ible response to +ustomer demand$ In <=> the no,

legendary "ig Ma+ made i ts debut - and in <=>= M+1onald@ s sold i ts f i(e

 bil lionth hamburger$ ',o years later- M+1onald@s restaurants had rea+hed all

% states$

In <=>- M+1onald @s opened i ts <-th restaurant8 Kro+ be+ame +hairman

and remained !20 until <=C#$

"y the late <=>s- many of the +andy/striped Golden Ar+hes stores had been

modified ,ith en+losed ,al)/up order areas and l imited indoor seat ing$ "yBune <=>=- 7mansard roof 7 bui lding design featuring indoor seat ing be+ame

the standard for M+1onald@s restaurants$

'he +ompany pioneered brea)fast fast food ,ith the introdu+tion of the 2gg

M+Muffin  in <=C? and fi(e years later M+1onald@s added a full brea)fast l ine

to the menu$

In <=C%- M+1onald@ s opened i ts f ir st dri(e/thru ,indo, in &ierra ista-

Arizona$ 'his ser(i+e ga(e Ameri+ans a fas t - +on(enient ,ay to pro+ure a

ui+) meal $ 1r i(e/thru sa les e(entual ly a++ounted for more than half of  M+1onald@s system,ide sales$

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Surviving the 1980s "Burger Wars"

In the late <=Cs- +ompeti t ion from other hamburger +hains su+h as "urger 

King and ;endy@s  began to in tensi fy$ A period of aggress i(e ad(er ti s ing

+ampaigns and pri+e slashing in the early <=s be+ame )no,n as the 7burger ,ars $ 7 "urger King sugges ted to +us tomers : 7ha(e i t your ,ay78 ;endy @s

offered i tself as the 7fresh al ternat i(e7$ "ut M+1onald @s sales and mar)et

share +ontinued to gro,$

1uring the <=s- M+1onald @s further di(ersif ied i ts menu to sui t +hanging

+onsumer tastes$ 'he +ompany introdu+ed the M+!hi+)en  in <=$ I t pro(ed

to be a s ales disappointment and ,as repla+ed ,ith series of different +hi+)en

sand,i+hes a year later $ !hi+)en M+Nuggets ,ere in(ented in <=C=$ "y the

end of <=#- M+1onald @s ,as the se+ond larges t re ta ile r of +hi+)en in the

,orld $ In <=%- ready/to/ea t sa lads ,ere in trodu+ed to lure more heal th/

+ on s+ io us + on su me rs $ 'h e < = s , er e t he f as te st /p a+ ed d e+ ad e ye t$

2ffi+ien+y- +ombined ,ith an e.panded menu- +ontinued to dra, +ustomers$

M+1onald @s - a l ready entren+hed in the suburbs - began to fo+us on urban

+entres and introdu+ed ne, ar+hite+tural s tyles$

1espite e.perts @ +laims that the fast/food industry ,as saturated- M+1onald@s

+ontinued to e.pand$ 'he first generation raised on restaurant food had gro,n

up$ 2at ing out had be+ome a habi t ra ther than a brea) in the rout ine - and

M+1onald@s relentless mar)eting +ontinued to impro(e sales$

M+1onald@s gro,th in the 3nited &tates ,as mirrored by its stunning gro,th

abroad$ "y <==<- #C per+ent of sys tem ,ide sa les +ame f rom res taurants

outs ide the 3nited & tates$ M+1onald@ s opened i t s f i rs t fore ign restaurant

in "ritish !olumbia- !anada- in <=>C$ "y the early <==s the +ompany had

estab li shed i tsel f i n % foreign +ount r ie s and opera ted more than # ->

restaurants outside the 3nited &tates- through ,holly o,ned subsidiaries-

 *oint (entures- and fran+hise agreements$ Its strongest foreign mar)ets

,ere Bapan- !anada- Germany- Great "ritain-  Australia- and Fran+e$

"raille menus ,ere introdu+ed in <=C=- and pi+ture menus in <=$

2.per iments ,ere +ondu+ted to f ind ne, te+hnology and to resear+h ne,

mar)ets to )eep M+1onald @s in front of i ts +ompeti tion$ Ne, lo+at ions su+h

as hospitals and military bases ,ere tapped as sites for ne, restaurants$

1990s: Growing pains

'he <-th unit ,as opened in April <=$I t too) M+1onald @s ## years to

open its first <- restaurants$ In+redibly- the +ompany rea+hed the ?-/

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restaurant mar) in only eight more years- in mid/<==>$ "y the end of <==C the

total had surpassed ?#-- and by that t ime M+1onald @s ,as opening ?-

ne, restaurants ea+h year- an a(erage of one e(ery fi(e hours$

In <==#- a ne, region ,as added to the empire ,hen the f i rs t M+1onald @s in

the Middle opened in 'el A(i(- Israel$

As the +ompany entered ne, mar)ets - i t sho,ed in+reasing f le.ibi l i ty ,ith

respe+t to lo+al food preferen+es and +us toms$ In Is rae l - for e.ample - the

first )osher  M+1 on al d@ s o pe ne d i n a Berusalem s ub ur b i n < == %$ I n Ar ab

+ountries- the restaurant +hain used 7 Halal7 menus$

McDona%d/s entered )ndia for the first time in 0112" #here it offered a 3i!

Mac made #ith %am4 ca%%ed the Maharaja Mac&

0(erall - the +ompany deri(ed in+reas ing per+entages of i t s re(enue and

i n+ om e f ro m o ut si de t he 3 ni te d & ta te s$ I n < == ? a bo ut t ,o /t hi rd s o f  

system,ide sales +ame from 3$&$ M+1onald @s - but by <==C that f igure ,as

do,n to about %< per+ent$ &imilarly- the operating in+ome numbers sho,ed a

redu+tion from about > per+ent deri(ed from the 3nited &tates in <==? to

L?$% per+ent in <==C$

'he +ompany made se(eral notable blunders in the 3nited &tates in the <==s$

A seemingly ,ea)ened M+1onald@s ,as the ob*e+t of a "urger King offensi(e

,hen the r i(al fast/food ma)er laun+hed the "ig King  sand,i+h- a "ig Ma+

+lone$ Mean,hile- internal taste tests re(ealed that +ustomers preferred the

fare at ;endy@s and "urger King$

In response to these diffi+ulties- M+1onald@s drasti+ally +ut ba+) on its 3$&$

e.pansion$ E lans to open hundreds of smal ler restaurants in ;al/Mart and

gasol ine s ta t ions ,ere abandoned be+ause tes t s i tes d id not meet ta rgeted

goals$

ailed turnaround: late 1990s

Follo,ing the diffi+ulties of the early and mid/<==s- se(eral mo(es in <==

seemed to indi+ate a rein(igorated M+1onald @s $ Announ+ements ,ere made

that M+1onald@s ,ould impro(e the taste of se(eral sand,i+hes and introdu+e

se(eral ne, menu items$

M+1onald @s also said that i t ,ould o(erhaul i ts food preparat ion system ine(ery 3$&$ restaurant $ 'he ne,  *ust/in/time system- dubbed 7Made for Dou-7

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,as in de(elopment for a number of years and aimed to deli(er to +ustomers

7fresher- hotter food78 enable patrons to re+ei(e spe+ial/order sand,i+hes 4a

 per) long offered by ri(als "urger King and ;endy@ s68 and allo, ne, menu

i te ms t o b e m or e e as il y i nt ro du +e d t ha n) s t o t he s ys te m@ s e nh an +e d

fle.ibility$

!eur#ishing and $reating a healthier image: %arl& '000s

M+1onald@s ,as sued in ?< after i t ,as re(ealed that for fla(oring purposes

a small amount of beef e.tra+t ,as being added to the (egetable oi l used to

+oo) the fren+h fries$

M+1onald@s soon apologized for any 7+onfusion7 that had been +aused by itsuse of the beef f la(our ing- and in mid/?? i t rea+hed a se t t lement in the

l i t igat ion- agreeing to donate < mil l ion to Hindus- (egetarians- and other  

affe+ted groups$

M+1onald@s also had to in+reasingly battle its publi+ image as a pur(eyor of 

fatty- unhealthy food$ M+1onald@s responded by introdu+ing lo,/+alorie menu

items and s,it+hing to a more healthful +oo)ing oil for its Fren+h fries$

M+1onald@s +ontinued to +urtail store openings in ?L and to +on+entrate on

 building business at e.isting restaurants$ M+1onald@s also aimed to pay do,n

debt by L mil l ion to C mil lion and to return appro.imately < bi l l ion

to shareholders through di(idends and share repur+hases

;ith the ne, 7Fore(er Doung7 design 4adopted in ?>6 - the f i rs t ma*or  

redesign sin+e <=>=- M+1onald @s turned a ne, page for i tself $ Most of ne,

and remodelled restaurants feature dining zones ,ith three se+tions or zones$

Free ,if i a++ess points ,ere a lso granted$ Also - harsh +olours and hard

 plasti+s ha(e been repla+ed ,ith +ustom earth tones and fle.ible padded

fabri+$ 'he M+1onald @s menu has been t,ea)ed to offer a larger (ariety of  ,hat the +orporation refers to as more healthy food$

'010s

In Buly ?<<- M+1onald@s announ+ed that their largest restaurant in the ,orld

,i ll be bui l t on the ?<? ondon 0lympi+s  si te $ 'he restaurant ,il l +ontain

o(er <-% seats and is half the length of an Ameri+an Footbal l f ield$ 0(er 

LC staff ,il l be employed ser(ing on a(erage 4during the ?<? 0lympi+s6

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<- port ions of f r ies - % - "ig Ma+s and #- Mil)sha)es $ 'his

restaurant ,il l o(ershado, the +urrent largest M+1onald @s in the ,orld in

Mos+o,- Russia$ In Banuary ?<?- the +ompany announ+ed re(enue for ?<<

rea+hed an al l / t ime high of ?C bi l l ion- and that ?L restaurants ,ould be

updated and <# ne, ones opened ,orld,ide$

L)(T O. 5*OD+CT(

3ur!ers

All beef patties are seasoned- +onsisting primarily of salt and bla+) pepper$

3i ! Mac6 Along ,ith the 5uarter Eounder ,ith +heese- this is one of the t,o

M+1onald @s s ignature menu i tems- introdu+ed in <=>C as a response to theflagship burger at "ig "oy  restaurants$ ',o <$>/oun+e ground beef   patties-

spe+ial "ig Ma+ sau+e- shredded i+eberg lettu+e- +heese- t,o gher)in sli+es-

and re/hydra ted onions on a toas ted sesame seed bun- ,i th an addi t ional

middle bun separating both beef patties$

3i! N/ Tasty 6 'he "ig N@ 'asty +onsists of a seasoned uarter/pound beef  

 patty ,ith )et+hup- mayonnaise- sli(ered onions- t,o dill pi+)le sli+es- leaf 

lettu+e- and one tomato sli+e on a sesame seed bun$

7uarte r 5ounde r6 Along ,ith the "ig Ma+- this is one of the t,o

M +1 on al d@ s s ig na tu re me nu i te ms $ L /o un +e o f ground bee f   pat ty , ith

)et+hup- mustard - s l i(ered onions- t,o gher)in s l i+es- and t,o s l i+es of  

+heese$

,am 4ur!e r and chees e4ur!er6 A L % g g ro un d b ee f p att y- , ith )et+hup-

mustard- a single dill pi+)le - re/hydrated onions- on a toasted bun$ Also sold

as a double or triple- adding an e.tra pi+)le sli+e for ea+h beef patty added

Dou4%e Cheese4ur!er6 I t has t,o L% g ground beef pa t ties- ,i th )et+hup-mustard - t,o s l i+es of di l l pi+)le-   re/hydrated onions- a nd t ,o p ie +e s o f  

+heese on a toasted bun$

McDou4%e6 I t s imilar to a 1ouble !heeseburger- but ,ith *ust one sl i+e of  

+heese$ I t ,as reintrodu+ed as a permanent dollar/menu i tem in 1e+ember 

?$

Dai%y Dou4%e6 &imilar to the double +heeseburger- ho,e(er the toppings are

different $ 'he 1aily 1ouble is made ,ith let tu+e- tomato- s l i(ered onions-

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and mayonnaise $ I t a l so has only one s l i+e of +heese - ra ther than the t,o

sli+es that are on the double +heeseburger$

The 3i! N / Tasty 6 It ,as introdu+ed in <==C and has beef patty ,ith )et+hup-

+heese- mayonnaise ,ith a gri l l f la(ouring- di+ed onions- t,o pi+)les- leaf  

let tu+e- )ebab meat and a tomato sl i+e- on a toasted bun$ I t ,as de(ised to

resemble "urger King@s ;hopper  sand,i+h$

Mc.east6 A hamburger ,ith let tu+e- tomato- and mayonnaise- the M+Feast

+onta ins a uar ter pounder pa tty- le ttu+e - and modif ied mayonnaise ,i th

lemon *ui+e- )et+hup- onion and tomato$

Chicken" .ish" 5ork

McChicken 6   It is a mildly spi+y +hi+)en sand,i+h$ Made from ground ,hite

meat +hi+)en- mayonnaise- and shredded let tu+e- on a toasted bun$ I t s t i l l

remains one of the biggest sellers- *ust behind the "ig Ma+$

5remium chicken sand#iches6   ' he ! lass i + i s a rebranding of the !r ispy

!hi+)en and !hi+)en M+Grill sand,i+hes- ,ith mayonnaise- leaf lettu+e- and

a tomato sl i+e$ All are ser(ed on a ,hole/grain rol l - ,ith ei ther a gri l led or  

+rispy +hi+)en breast$

(outhern (ty%e Chicken (and#ich 6   A southern/style fr ied +hi+)en breast

filet- on a steamed bun- dressed ,ith butter and t,o pi+)les$

(nack Wrap 6   M+1onald @s (ersion of a ,rap made ,ith ,hite meat  +hi+)en

 breast - lettu+e- shredded !heddar +heese and Monterey Ba+) +heese- and a

sau+e- ,rapped in a soft flour tortil la$ 'here is also a Ma+ &na+) ;rap ,hi+h

features the f i.ings of the "ig Ma+- but ,ithout the bun and ,rapped in a

tortil la shell - and uses one half of a pie+e of uarter meat$

Chicken .ajita6   !hi+)en- +heese- red and green  bell peppers-   and di+ed

onions in a flour tortil la$ !omes ,ith Ei+ante sau+e pa+)ets on reuest- ,hi+h

is a(ailable in mild and spi+y$

Chicken McNu!!ets6   Introdu+ed in <= as a repla +e ment for the

M+!hi+)en- these are smal l +hi+)en +hun)s ser(ed ,ith d ipping sau+es

of "arbe+ue- &,eet n@ &our - Honey- and Hot Mustard$ In ?<<- L ne, dipping

sau+es ,ere introdu+ed and added to the lineup: &,eet !hili - Honey Mustard-

&pi+y "uffalo- and !reamy Ran+h$

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Chicken (e%ects 6  M+1onald@s (ersion of +hi+)en strips$ 'hey in+lude +hoi+es

of spi+y buf fa lo - + re am y r an +h- Honey Mus ta rd - and !hipotle barbe+ue

d ip pi ng s au +e s8 s au +e s el e+ ti on s i n t he 3K a re & mo )e y  barbe+ue- sour 

+ream and s,eet +hilli sau+e $

.i%et8O8.ish6   I t is a ,hitefish  f i l let ,ith tartar sau+e a nd a h al f s li +e o f  

+heese- on a steamed bun$

Mc*i4 6   I t i s a sand,i+h fea tu ring boneless por) , ith barbe+ue sau+e -

sli(ered onions- and pi+)les$

McAra4ia 6   'here are t,o (ers ions of the M+Arabia : Gr i l led +hi+)en and

grilled )ofta 4beef , ith spi+es6 $ "oth a re ser(ed , ith l et tu+e - t omatoes-

onions - and gar l i+ mayonnaise in addi t ion to t,o smal l pa t t ies of gr i l led

+hi+)en or )ofta- all ,rapped in an Arabi+ style pita bread$ 'he M+Arabia has been (ery ,ell re+ei(ed throughout the Middle 2ast$

Chicken Mc3ites 6   'hey are Eop+orn +hi+)en breas t ,i th 7home/s tyle

seasoning$ 1 ipping sau+es in+ lude ran+h - &,eet n @ &our- 'angy ""5-

!hipotle ""5- and Honey Mustard$

.ish Mc3ites6 &imi lar to the !hi+)en M+"ites - these are smal l p ie+es of  

fla)y ,hitefish dipped in batter and fried until golden bro,n- and ser(ed ,ith

tartar sau+e for dipping$

 (a%ads and side orders

M+1onald@s first introdu+ed salads to its menu in <=%$ 'he Eremium &alads

all are a mi.tur e of i+eberg le ttu+e and a spe+ial l et tu+e assor tment-

,ith +herry tomatoes a nd d iffer en t to pp in gs t o d iffer en ti ate th em8

additionally all salads +an be topped ,ith ,arm grilled or +rispy +hi+)en$ All

of its salads are part of M+1onald@s mo(e to,ards +reating a healthier image$

M+1onald@s sells Fren+h fries  as its primary side order$ 'hey also sell potato,edges- a type of Fren+h fry that is thi+) +ut and ,edge shaped- fr ied onion

 pie+es and onion rings$

CO*5O*ATE O9E*9)EW

.acts and fi!ures

M+1onald@s restaurants are found in <<= +ountries and territories around the

,orld and ser(e % mil l ion +ustomers ea+h day$ M+1onaldJs operates o(er 

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#<- restaurants ,orld,ide- employing more than <$% million people$ 'he

+ompanies also operate other restaurant  brands- su+h as Eiles !af$

Fo+using on its +ore brand- M+1onald@s began di(esting itself of other +hains

i t had a+u ired dur ing the <==s $ ' he +ompany o,ned a ma*or ity s ta)e

in !hipo tl e Me.i+an Gri ll u nt il 0 +t ob er ? >- , he n M +1 on al d@ s f ul ly

di(ested from !hipotle through a sto+) e.+hange$ 3ntil 1e+ember ?#- i t

also o,ned 1onatos Eizza$ 0n August ?C- ?C- M+1onald@ s sold "oston

Mar)et to & un ! ap it al E ar tn er s$ No ta bl y- M+1 on al d@ s h as i n+r eas ed

shareholder di(idends for ?% +onse+uti(e years- ma)ing it one of the &E %

1i(idend Aristo+rats$

Types of restaurants

Most standalone M+1onald@s restaurants offer both +ounter ser(i+e  and dri(e/

through ser(i+e - ,i th indoor and somet imes outdoor seat ing$ 1r i(e/'hru-

Auto/Ma+- Eay and 1ri(e- or 7M+1ri(e7 as i t is )no,n in many +ountr ies-

often has separate s tat ions for pla+ing- paying for - and pi+)ing up orders-

though the latter t,o steps are freuently +ombined8 it ,as first introdu+ed in

Arizona in <=C%- follo,ing the lead of other fast/food +hains$ 'he first su+h

restaurant in "ritain opened at Fallo,field- Man+hester  in <=>$

In some +ount ri es - 7M+1r i(e7 lo+at ions nea r high,ays o ffer no +ounter  ser(i+e or seating$ In +ontrast- lo+ations in high/density +ity neighbourhoods

of ten omit dri(e/through ser(i+e $ ' here a re a lso a f e, lo+at ions - l o+a ted

mostly in do,nto,n distri+ts that offer ;al)/'hru ser(i+e in pla+e of 1ri(e/

'hru$

'o a++ommodate the +urrent trend for high uality +offee and the popularity

of +of fee shops in general - M+1onald@ s i nt rodu+ed M+!af- a +af/style

a++ompaniment to M+1onald @s restaurants in the style of &tarbu+)s$  M+!af

is a +on+ept +rea ted by M+1onald @ s Aust ra l ia - s tar t ing ,i th Melbourne in

<==#$ 'oday- most M+1onald@s in Australia ha(e M+!afs lo+ated ,ithin the

e.isting M+1onald @s restaurant$ In 'asmania- t he re a re M+!afs in e(e ry

store- ,ith the rest of the states ui+)ly follo,ing suit $ After upgrading to the

ne, M+!af loo) and feel - some Austral ian stores ha(e noti+ed up to a >O

in+rease in sal es $ As o f the end o f ?# the re ,ere o(er > M+!afs

,orld,ide$

&ome lo+ations are +onne+ted to gas stations9+on(enien+e stores - ,hile others

+a lled M+2.press ha(e l imi ted seat ing and9or menu or may be lo+ated in

a shopping mall$  0ther M+1onald@s are lo+ated in ;al/Mart stores$ M+&top is

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a lo+ation targeted at t ru+)ers and tra(el lers ,hi+h may ha(e ser(i+es found

at tru+) stops$

&in+e <==C- the only Kosher M+1onald @s in the ,orld that is not in Israel  is

lo+ated in the 7 Abasto de "uenos Aires7- Argentina$

G%o4a% operations

M+1onald @s has be+ome emblemati+ of globalization-   sometimes referred to

as the 7M+1onaldization7 of so+iety$

The Economist  ne,spaper uses the 7"ig Ma+ Inde.7: the +omparison of a "ig

Ma+@s +ost in (arious ,orld +urren+ies  +an be used to informally *udge these+urren+ies@  pur+hasing po,er parity $ Nor,ay has the most e.pensi(e "ig Ma+

in the ,orld as of Buly ?<<- ,hile the +ountry ,ith the least e.pensi(e "ig

Ma+ is India $

&ome obser(ers ha(e suggested that the +ompany should be gi(en +redit for  

in+ reasing the s tandard o f ser(i+e in mar)e ts tha t i t enter s$ A group o f  

anthropologists in a s tudy ent i t led Golden Arches East   loo)ed at the impa+t

M+1onald@s had on 2ast Asia- and Hong Kong in parti+ular$

;hen it opened in Hong Kong in <=C%- M+1onald@s ,as the first restaurant to

+onsistently offer +lean restrooms- dri(ing +ustomers to demand the same of 

other restaurants and institutions$

M+1onald @s has ta)en to partnering up ,ith &inope+-   the se+ond largest oi l

+ompany in the Eeople @ s Republ i+ of !hina - as i t ta)es ad(antage of the

+ountry @s gro,ing use of personal (ehi+les by opening numerous dri(e/thru

restaurants$

M +1 on al d@ s h as o pe ne d a M +1 on al d@ s r es ta ur an t a nd M +! af o n t heunderground premises of the Fren+h fine arts  museum- the ou(re$

'he +ompany stated it ,ill open (egetarian/only restaurants in India by mid/

?<#$

*edesi!n

In ?>- M+1onald@s introdu+ed its 7Fore(er Doung7 brand b y redesigning all

of i ts restaurants - the f i rs t ma*or redesign sin+e the <=Cs$ M+1onald @s has

in(ested < billion to redesign nearly all of the <L- restaurants b y ?<%$

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' he g oa l o f t he r ed es ig n i s t o b e m or e l i) e a + of fe e s ho p- s im il ar t o

&tarbu+)s$ 'he design in+ludes ,ooden tables- fau./leather +hairs- and muted

+olours8 the red is muted to terra +ot ta - the yel lo, ,as turned golden for a

more 7sunny7 loo)- and oli(e and sage green ,ere also added$

'o ,arm up i t s loo)- the res taurants ha(e less p las t i+ and more br i+) and

,ood- ,ith modern hanging lights to produ+e a softer glo,$

Many restaurants no, feature free ;i/Fi and flat s+reen 's$ 0ther upgrades

in+lude double dr i(e/ thrus - f la t roofs ins tead of the angled red roofs - and

repla+ing f ibre glass ,ith ,ood$ Also- instead of the famil iar golden ar+hes-

the restaurants no, feature 7semi/s,ooshes7 4half of a golden ar+h6- similar 

to the  Ni)e s,oosh$

Business model

M+1onald@ s !orpora tion earns r e(enue as an in(es to r in p ropert ie s- a

fran+hiser of restaurants- and an operator of restaurants$ Appro.imately <%O

o f M +1o na ld @s r es ta ur an ts ar e o, ned a nd o pe ra ted b y M +1 on al d@ s

!orporation dire+tly$ 'he remainder are operated by others through a (ariety

of fran+hise agreements and *oint (entures$

'he M+1onald@s !orporation@s  business model is s l ight ly different from that

of most o ther fas t / food +hains $ In addi t ion to ordinary fran+hise fees and

mar)eting fees- ,hi+h are +al+ulated as a per+entage of sales- M+1onald @s

may also +olle+t rent- ,hi+h may also be +al+ulated on the basis of sales$

As a +ondit ion of many fran+hise agreements- ,hi+h (ary by +ontra+t - age-

+ountry- and lo+at ion- the !orporat ion may o,n or lease the propert ies on

,hi+h M+1onald@ s f ran+hi ses a re lo+ated $ In mos t- i f not a ll +ases - t he

fran+hisee does not o,n the lo+ation of its restaurants$

'he 3nited Kingdom and Ireland business model is different than the 3$&- in

that fe,er than #O of restaurants are fran+hised- ,ith the ma*ority under theo,nership of the +ompany$ M+1onald@ s t rains i t s f ran+hisees and others

at Hamburger 3ni(ersity  in 0a) "roo) - Ill inois$

In other +ountr ies- M+1onald@s restaurants are operated by *oint (entures of  

M+1onald@s !orporation and other- lo+al entities or go(ernments$

As a mat ter of pol i+y - M+1onald @ s does not ma)e di re+ t sa les of food or  

materials to fran+hisees- instead organizing the supply of food and materials

to restaurants through appro(ed third party logisti+s operators$

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A++ording to Fast Food Nation  by 2ri+ &+hlosser - nearly one in eight ,or)ers

in the 3$&$ ha(e at some t ime been employed by M+1onald @s $ I t a lso states

that M+1onald@s is the largest pri(ate operator of playgrounds in the 3$&$- as

,ell as the single largest pur+haser of  beef -  por) -  potatoes- and apples$ 'he

sele+ tion o f mea ts M+1onald@ s uses (ar ie s , ith the +ul tu re o f the hos t+ountry$

MA*KET)NG M):

'he mar)eting mi. of a +ompany +onsists of the (arious elements as

follo,s ,hi+h form the +ore of a +ompanyJs mar)eting system and

hen+e helps to a+hie(e mar)eting ob*e+ti(es$ 'he mar)eting mi. of

M+1onaldJs is as follo,s:/

5roduct: / M+1onaldJs pla+es +onsiderable emphasis on de(eloping a

menu ,hi+h +ustomers ,ant$ Mar)et resear+h establishes e.a+tly ,hat

this is$ Ho,e(er- +ustomersJ reuirements +hange o(er time$ In order

to meet these +hanges- M+1onaldJs has introdu+ed ne, produ+ts and

 phased out old ones- and ,ill +ontinue to do so$ !are is ta)en not to

ad(ersely affe+t the sales of one +hoi+e by introdu+ing a ne, +hoi+e-

,hi+h ,ill +annibalise sales from the e.isting one 4trade off6$

M+1onaldJs )no,s that items on its menu ,ill (ary in popularity$

'heir ability to generate profits ,ill (ary at different points in their+y+le$ In India M+1onalds has a di(ersified produ+t range fo+ussing

more on the (egetarian produ+ts as most +onsumers in India are

 primarily (egetarian$ 'he happy meal for the +hildren is a great seller

among others$

5rice: / 'he +ustomerJs per+eption of (alue is an important

determinant of the pri+e +harged$ !ustomers dra, their o,n mental

 pi+ture of ,hat a produ+t is ,orth$ A produ+t is more than a physi+al

item8 it also has psy+hologi+al +onnotations for the +ustomer$ 'he

danger of using lo, pri+e as a mar)eting tool is that the +ustomer may

feel that uality is being +ompromised$ It is important ,hen de+iding

on pri+e to be fully a,are of the brand and its integrity$

In India M+1onalds +lassifies its produ+ts into ? +ategories namely

the branded affordability 4"A6 and branded +ore (alue produ+ts4"!6$ 'he "! produ+ts mainly in+lude the M+eggie and

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M+!hi+)en burgers that +ost Rs %/> and the "A produ+ts in+lude

M+Aloo ti))i and !hi+)en M+Grill burgers ,hi+h +ost Rs?/#$ 'his

has been done to satisfy +onsumers ,hi+h different pri+e per+eptions$

5romotion   :/ 'he promotions aspe+t of the mar)eting mi. +o(ers all

types of mar)eting +ommuni+ations $0ne of the methods employed is

ad(ertising- Ad(ertising is +ondu+ted on '- radio- in +ine ma- online-

using poster sites and in the press for e.ample in ne,spapers and

magazines$ 0ther promotional methods in+lude sales promotions-

 point of sale display- mer+handising- dire+t mail- loyalty s+hemes-

door drops- et+$ 'he s)ill in mar)eting +ommuni+ations is to de(elop a

+ampaign ,hi+h uses se(eral of these methods in a ,ay that pro(ides

the most effe+ti(e results$ For e.a mple- ' ad(ertising ma)es people

a,are of a food item and press ad(ertising pro(ides more detail$ 'his

may be supported by in/store promotions to get people to try the

 produ+t and a +olle+table promotional de(i+e to en+ourage them to

)eep on buying the item$

At M+1onalds the prime fo+us is on targeting +hildren$ In happy

meals too ,hi+h are targeted at +hildren small toys are gi(en along,ith the meal$ Apart from this- (arious s+hemes for ,inning pri+es by

,ay of lu+)y dra,s and also s+rat+h +ards are gi(en ,hen an order is

 pla+ed on the (arious mean +ombos$

5%ace: / Ela+e- as an element of the mar)eting mi.- is not *ust about

the physi+al lo+ation or distribution points for produ+ts$ It

en+ompasses the management of a range of pro+esses in(ol(ed in bringing produ+ts to the end +onsume r$ M+1onaldJs outlets are (ery

e(enly spread throughout the +ities ma)ing them (ery a++essible$

1ri(e in and dri(e through options ma)e M+1onaldJs produ+ts further

+on(enient to the +onsumers$

Other than the main four e%ements mentioned a4oe there are a

fe# other e%ements too in the marketi n! mi;" #hich are as fo%%o#s68

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5eop%e :/'he employees in M+1onaldJs ha(e a standard uniform and

M+1onaldJs spe+ially fo+uses on friendly and prompt ser(i+e to its

+ustomers from their employees$

5rocess:/'he food manufa+turing pro+ess at M+1onaldJs is

+ompletely transparent i$e$ the ,hole pro+ess is (isible to the

+ustomers$ In fa+t- the fast food *oint allo,s its +ustomers to (ie, and

 *udge the hygieni+ standards at M+1onaldJs by allo,ing them to enter

the area ,here the pro+ess ta)es pla+e$ 'he +ustomers are in(ited to

+he+) the ingredients used in food$

5hysica% eidence : / M+1onalds fo+uses on +lean and hygieni+

interiors of is ou tlets and at the same time the interiors are attra+ti(e

and the fast food *oint maintains a proper de+orum at its *oints$

&;0' ANAD&I&

(tren!ths

 

M+1onaldJs holds a (ery strong brand name ,orld,ide$

 

'hey ha(e large partnerships ,ith other +ompanies that pro(ide them ,ith

their desired produ+ts8 this in+reases the good,ill of the +ompany$

 

M+1onaldJs is one of the most reputed firms ,ho are so+ially responsible$

 

oyal employees management +ustomer are their biggest strength$

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M+1onaldJs ma)es sure that +ultural regional barriers are )ept in mind

,hile pro(iding food to different +ountries$

 

!lean en(ironment and play areas for +hildren ,here they +an en*oy their 

t ime$

Weakness 

• 'he ,ea)ness that hits the list of employee turno(er rate$ 2(ery year many

of their employees are fired out of the restaurant$

•

M+1onalds mos t ly ad(er ti ses p rodu+t s and food i tems tha t t arge ts+hildren$ 

• Health +ons+ious people often +omplain that they do not pro(ide us ,ith

the organi+ and healthy food$ 'his be+omes their ,ea)ness ,hen they get

in the +omplaints$

• 'hey also fa+e uality issue at t imes$ 'his affe+ts the business as they are

running the outlet ,orld,ide- if one fran+hise gets affe+ted others also get

a bad name$

Opportunities• I t +an open up online ser(i+es for their +ustomers so that they +an easi ly

order their desired meals sitt ing at home$

• 1is+ounts gi(en on e(ery food item may help them gain more +ustomers$

• 'hey +an go for a *oint (enture ,ith the retailers they ,or) ,ith$

• 'hey +an introdu+e healthy hamburgers and healthy drin)s for the people

,ho are health +ons+ious$

• In order to be en(ironment fr iendly- they +an use pa+)ing material ,hi+h

+an be re+y+led later or material that does not +reate pollution$

Threats• 2 merg ing +ompe ti tion o f s imil ar out le ts i s be+oming a p roblem for  

M+1onalds$

• Health issue also be+omes a problem ,hen it +omes to food$

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• As i t is a multinat ional food outlet - f lu+tuat ions in the +urren+y of other  

+ountries be+omes a problem for su+h +ompanies$

• R e+ es si on i n a ny + ou nt ry , ou ld d ef in it el y a ff e+ t t he , ho le o ut le t

,orld,ide$

• Eeople f a+ ing hea rt p roblems and obesi ty a++use M+1onalds for not

 pro(iding them ,ith the healthy food$

• 'hey ha(e a threat of lo+al food outlets in different +ountries$

• M+1onalds is operat ing in a ful ly f ledged e+onomy ,here +ompeti t ion is

in+reasing day by day therefore they should ,or) effe+ti(ely to o(er+ome

their dra,ba+)s be+ause of the re+ession$

()*P+,-.S /,+,(/+ /,)!*+/),

Company Name: *$2onald3s (orporationTicker Symbol: *(2Web Addre: www4m$donalds4$omCEO: *r4 2onald hompson

No! o" Employee: 5'0000Common #$e Type: (S%$ine Decrip&ion: *$2onald3s (orporation ran$hises and operates

*$2onald3s restaurants in the ood servi$e industr&4

 he (ompan& and its ran$hisees pur$hase ood

pa$aging euipment and other goods rom numerous

independent suppliers4

#nd$&ry LE#S'RE ( !estaurants

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#n"orma&ion:

 Price  Day Change  Bid  Ask  Open  High  Low  Volume 

87.8   -0.02 - - 87.43 87.43 86.76 3658828

 !arke" Cap #mil$ %hares Ou"s"anding #mil$ Be"a &P% DP% P'& (ield )*+,ks+-ange 87)*/.7  1,004.0 0.39 5.27 2.53 16.4 3.5 102.22 - 83.31

 

0&( 1234-&% #La"es" 5wel6e !on"hs +

L5!$

 (es"erdays Close 87./ 9

PE Ratio – LTM 16.4

Market Capitaliatio! 87,526.7 "il

Latet #$are %&tta!'i!( 1,004.0 "il

Ear!i!( p# )EP#* 5.27 +

ii'e!' p# )P#* 2.53

ii'e!' /iel' 3.5

ii'e!' Pao&t Ratio 48

Ree!&e per E"ploee 64,300 +

Eetie Ta Rate 31.3

loat 1,015.3 "illoat a o #$are %&tta!'i!( 99.9

orei(! #ale 18,478 "il

o"eti #ale 8,528 "il#elli!(, e!eral '"tie )#* a

o Ree!&e9.10

Reear$ elop"e!t )R* a o

Ree!&e0.00

ro Proit Mar(i! 44.7

E:;T Mar(i! 35.6

Pre-Ta Proit Mar(i! 29.1  et T&r!oer 0.8

Ret&r! o! et )R%* 16.1

Ret&r! o! E<&it )R%E* 39.2

Ret&r! o! Capital ;!ete' )R%C;* 20.4

C&rre!t Ratio 1.0

Leera(e Ratio )etE<&it* 2.4

;!teret Coer 16.6

Total e=tE<&it )eari!( Ratio* 0.96

LT e=tTotal Capital 48.0

>orki!( Capital p# 0.06 +

Ca$ p# 2.17 +

:ook-?al&e p# 13.83 +

Ta!(i=le :ook-?al&e p# 11.10 +

Ca$ lo@ p# 6.89 +

ree Ca$ lo@ p# 1.25 +

0&( 1234-&% #L5!$: Price in;o

Prie:ook Ratio 6.30

PrieTa!(i=le :ook Ratio 7.85

PrieCa$ lo@ 12.6

Prieree Ca$ lo@ 69.9

PE a o ;!'&tr ro&p 42.0

PE a o #etor #e("e!t 77.0

Balance %hee" #a" a glance$ in !illions

D2V2D&<D 2<1O

ii'e!' elare' ate 09202012

ii'e!' E-ate 11282012

ii'e!' Reor' ate 12022012

ii'e!' Pa ate 12162012

ii'e!' "o&!t 770

Tpe o Pa"e!t Ca$ Pa"e!t

ii'e!' Rate 3.08

C&rre!t ii'e!' /iel' 3.5

5-/ era(e ii'e!' /iel' 3.1

Pao&t Ratio 48.0

5-/ era(e Pao&t Ratio 53.0

%hare price per;ormance pre6ious = years

%hare price per;ormance in"raday

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P-2C&'VOL4!& High Low Close > Price Chg> Price Chg 6s.

!k".A6g. Daily Vol 5o"al Vol

,eek - - - 0.0 101 54,041 66,217

? ,eeks 87.43 83.31 84.74 2.7 101 57,129 856,929

= ,eeks 94.16 83.31 91.02 -4.4 98 61,288 3,554,700

*/ ,eeks 94.16 83.31 87.75 -0.8 93 59,419 7,189,758

)* ,eeks 102.22 83.31 98.03 -11.2 79 59,272 14,521,666

 (5D 102.22 83.31 - -13.2 77 59,774 13,807,695

!o6ing A6erage )+Days +Days +,eeks =+,eeks *+Days Be"a #/+!n"h$ Be"a #=/+!n"h$

86.61 86.31 88.25 89.31 91.74 0.39 0.31

3-O,5H

-A5&%

)+(ear 

3rowh

-@ o; )+(ear 

3row"h

=+(ear 

3row"h

-e6enue 3.81 77.6 6.66

2ncome 20.17 81.1 9.78

Di6idend 15.36 94.7 10.16

Capi"al %pending 6.97 A 10.52

-D 0.00 A 0.00

<ormalied 2nc. 11.58 A 9.79

CHA<3&% (5D 6s.

Las" (5D

Curr "r 6s.

"r +(r ago

Annual 6s.

Las" Annual

-e6enue > 2.1 -0.2 12.2

&arnings > -1.4 -3.5 11.3

&P% > 1.0 -1.4 15.1

&P% 9 0.04 -0.02 0.69

%OLV&<C( -A52O%

%HO-5+5&-! %OLV&<C( -A52O%

#L242D25($

Aet >orki!( Capital Ratio 2.71

C&rre!t Ratio 1.3

B&ik Ratio )i' Tet* 1.0

Li<&i'it Ratio )Ca$* 0.67

Reeia=le T&r!oer 21.5

 era(e Colletio! Perio' 17

>orki!( CapitalE<&it 6.2

>orki!( Capital p# 0.88

Ca$-lo@ p# 6.77

ree Ca$-lo@ p# 2.09

12<A<C2AL %5-4C54-& -A52O%

 lt"a! D-#ore Ratio 4.85

i!a!ial Leera(e Ratio )etE<&it* 2.3

e=t Ratio 56.4

Total e=tE<&it )eari!( Ratio* 0.87

LT e=tE<&it 0.84

LT e=tCapital ;!ete' 56.9

LT e=tTotal Lia=ilitie 65.2

;!teret Coer 17.3

;!teretCapital ;!ete' 1.67

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Ana%ysis of 5roductiity < )mproement at

McDona%d .ortress 3ranch

'here are ?< restaurants in C ma*or +ities of Ea)istan$;e ha(e done analysis on fortress

 bran+h of M+1onalds to find out ho, their produ+ti(ity le(el in+reased and impro(ed$ For

this ,e ha(e:

Analysed organizational +ulture

Analysed &ystems of M+1onald

Erodu+ti(ity identifi+ations

&olution of problems

)dentification of (ystem

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P4)4SPoint o"

Sale

;4<4S=;it$hen<ideo

S&stem "or

runner

;4<4S

"ordrin

drawer

>eattreat

 ou$htower

;e ha(e isited bran+h- ,hi+h is lo+ated 0pposite Khyber "lo+)- Fortress &tadium ahore-

Ea)istan$

;e got detail about old system and ne, one

Eurpose ,as to gather the information about

&ystem 91esign ayout

2uipment 9Ma+hinery

'ime used for pro+ess

abour 

for both pro+ess

Launchin! M.- (ystem in 5akistan

  First MFD in M+1onald fortress stadium bran+h ,as laun+h in % th May ?<<

Erodu+ti(ity and uality of produ+ts

'he most important stations in M+1onald

&er(i+e

Erodu+tion

'hese departments are dire+tly atta+hed to ea+h other 

M.- Workin! (ystem

  Ero+ess for ser(i+e of +ustomer8

  'he people on the ser(i+e +an

1rin) dra,er 

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 ) +(?S)*%!

  /* %

@ 90se$onds "romgreeting to$ompletionorder

 ) + (?S)*%!%AP%!/%,(

% /* %@ Bminutes B0se$onds

 ) + /, %  /* %

@ ' m inutes

0rder ta)er 9+ashier 

Runner 

5roductiity =in terms of time>

'ime is the main fa+tor ,hi+h ha(e impa+t for in+rease or de+rease in produ+ti(ity$

E?uipment for M.- system

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;4<4S9;it$hen

<ideoS&stem:

Bun tra& $art 1oasterCstea

mer

Prep ta#le

>404D9>eated0andingDone:

Grill

?4>4(9?niversal

>olding(a#inet:

#n & a&or

@ !ea$ta$$ording to the;<S andinsert#uns in

 oster

Aembler 

@ Prepareood Epla$e inthe >D

%a&c

cooker

@ Preparethe rawprodu$tssu$h asroFenprodu$ts$hi$en

5eop%es =for 5reparin! 5roduct>

'here are # peoples in produ+tion at

lo,

(olume

5roductiity !ain in Time

 No, produ+ti(ity gain in term of time is8

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/nitiatorrea$tion

@ =G se$

Bunstoasting

@ 17=19 se$

+ssem#ler

@ G=G0 se$

Toa&er@  emperature 60 degree

ahrenheit

@  oasting time 17 se$onds

Prep@  emperature 1'1=1B1

*L+ ,*ea&edLandin- +one.@  emperature 16

'*C ,'ni/eral*andlin- Cabine&.@ ried produ$t

temperature: '00 degreeahrenheit

@ Grilled produ$ttemperature 18

  The M.- system can 4e run

"y a single person ,hen lo, (olume and

In rush (olume *ust three peoples Are enough if they are properly trained$

E?uipment's @ones

Direct Gri%% (ystem

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  @  1  o  a  s  t  e  r  @   2  r  e  s  s i  n  g  t  a l  e  @   <  a  t  s  C  "  r  &  e  r0ried

S&a&ion

  @  1  o  a  s  t  e  r  @   2  r  e  s  s i  n  g  t  a  # l  e  @   G  r i l l1rilled

S&a&ion

  @  S  t  e  a   m  e  r

  @   2  r  e  s  s i  n  g  t  a  # l  e  @    r  &  e  r0i)(

0ille&

&a&ion

(tations for DG(

Fried produ+ts station

Grilled produ+t station

Fish fillet station

',o 'oasters for ea+h stations and steamer for fillet station$

'oaster timing ,as > se+onds so high as +ompared to MFD ,hi+h is <C se+onds$

Direct Gri%% (ystem

2uipment

Layouts

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ayout of 1ire+t grill system

Layout of M.- (ystem

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Comparison of %ayouts

*- S&stem2G

S&stem

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Comparison

Direct Gri%% (ystem Made .or -ou (ystem

 Cannot 4e operated #ithout 2

peop%es

 Can operate %ess than three

peop%es

 

5roducts a%ready prepared 

5roducts just prepared onorder

 Wasta!e #as so hi!h   Wasta!e is ery %o#

 7ua%ity of products is not

!ood

 7ua%ity of product is

e;traordinary hi!h

 5roducts took time to

prepared

 5roducts just prepared in 2

seconds

 On%y 4un toastin! time #as

2 second

 3un toastin! time just 0B

seconds

 E;tra products a%#ays

prepared

 No e;tra product is prepared

 

There is no !uarantee of freshproduct

 

0 !uarantee of freshproduct

 Critica% to operate   Easy to operate

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@ 90 se$onds or less rom thetime o order to deliver&SER2#CE

@ resh ood #& maintaining highualit& standards3'AL#T4 

@ /t is $onsistent and have allprodu$tion euipment near oea$h other

0OODPREPARAT#ON

@ /n$reased Ho# satisa$tion oremplo&eePEOPLE

@ !edu$ed $osts and in$reased$ustomer satisa$tionPRO0#TA%#L#T4

Ca%cu%ations

  M.- system hae

lo, energy e.pense

o, labour 4# people6

More produ+tion output

ess +ostly euipment

As +ompared to 1G& &ystem

'otal Erodu+ti(ity of In+rease by implementation is about ?<$C%O

.indin!s

MFD system in+reased produ+ti(ity of produ+tion department "e+ause of the !riteria8

Conc%usion

M+1onald in+reased ?</?%O produ+ti(ity by repla+ing 1G& ,ith MFD$

MFD system ha(e simple design and lo, euipment as +ompared to

1G&$

T,E TO5 .)9E *EA(ON( W,- MCDONALD'( )( (O 5O5+LA* 

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14 he S&stem

  'his is the f i rs t thing that ma)es M+1onald @s so su++essful - by ha(ing an

effe+t i(e and eff i+ient system in pla+e- ,hi+h e.ploi ts the minimum ,age

labour a(ailable- in the form of young teenagers ,ho are *ust loo)ing to ma)esome +ash or pi+) up fundamental *ob s)ills$

'4 (onvenien$e

'he se+ond reason ,hy M+1onald@s is so popular is be+ause it @s e(ery,here$

'here a M+1onald @ s a t e(ery +orner of the map- a t e(ery ma*or shopping

+entre- distri+t- high,ay- free,ay- e(ery pla+e ,hi+h attra+ts e(en- remotely

more than < people- ,i ll ha(e a M+1onald @s restaurant not too far f romthem$ M+1onald @s is ha(ing the best Real 2state lo+at ions around the ,orld

,hi+h ma)es it so popular around the globe$

4 ia#ilit& and amiliarit& he Golden +r$hes the Big *4 !onald *$2onald happiness and

unI all these are the asso$iations with *$2onald.s whi$h maes

it so amil iar #& #eing so amil iar to all age groups and toever&#od&4

54 he *enu

M+1onald@s has one of the most di(erse menus- targeting all ages from litt le

)ids to old pensioners- and e(eryone else in bet,een$ 'here @s "ig Ma+s for  

the b ig ) ids and *un io r burge rs for the l it tl e$ ' he menu@ s (er sa ti li ty i s

a++entuated ,hen they introdu+ed the 7heal thy t i+)7 +on+ept - ,hi+h target

those people ,ho ,ants to ,at+h ,hat they eat 4e(en though i t doesn@ t ma)e

sense to go to a fast food restaurant to eat healthy6$

4 (onsisten$&

 he last reason is *$2onald3s is so su$$essul #e$ause o its

$onsisten$&4 he eJpe$tations that we have a#out ever&thingsurrounding the store are ulKlled in almost ever& store

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nationwide worldwide4 So ever&#od& nows what the&3re

getting into #eore the& $ome to *$2onald3s and #& #eing so

$onsistent it has a solid reputation to uphold4  

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ogo o *$2onald.s

*$2onald3s world headuarters )a#roo ?nited States

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!a& ;ro$= he ran$hiser o *$2onald3s

 

 he Krst *$2onald.s restaurant opened #& Patri$ *$2onald in

197

*$2onald.s Speedee mas$ot

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2owne&.s restaurantI

the oldest operating *$2onald3s in the world4

World=amous Golden +r$hes logo

 he legendar& Big *a$

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 he (hi$en *$,uggets

 he *aharaHa *a$ whi$h is oLered in /ndia

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+n eJterior view o the world3s largest *$2onald3s restaurant #uilt

on '01' ondon )l&mpi$s site

 he Big *a$

 he Big n ast&

T)e premi$m c)icken and5ic)

T)e McDonald6 C)icken 0a7i&a

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McArabia

  McDonald’ Salad

McDonald’ 0renc) "rie

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+ map showing ever& $ontinent with at least

one *$2onald3s restaurant

  A modern McDonald’ re&a$ran& in

London