Acknowledgement
In the
name of God , the most kind and most merciful.
First of
all I m grateful to ALMIGHTY GOD, who bestowed me with health, abilities and
guidance to complete the project in a successful manner, and without HIS help I
was unable to perform this task.
More than
anybody else, I would like to acknowledge my project adviser, for his never
ending support and untiring efforts. He was always there to guide me whenever I
felt stuck off and his encouragement always worked as moral booster for me. I
have found him very helpful while discussing the tricky issues in this
dissertation work
Abstracts:
The McDonald’s Corporation is one of the most successful
global restaurant chains around the world. They have used effective management
and global expansion strategies to enter new markets and gain a share of the
foreign fast food market. This case presents how McDonald’s has achieved this
enormous success, its best practices in the global food industry, international
growth trends and challenges, and various lessons that have been learned from
their expansion in foreign countries. Overall, the case provides a discussion of
how McDonald’s creates both customer and brand loyalty for their products and
services. This case focuses on McDonald’s SWOT Analyses, 4P’s(Marketing Mix),
Quality Assurance and Safety policies are also included.
History:
In October 1948, after the McDonald brothers realized that most of
their profits came from selling hamburgers, they closed down their successful
carhop drive-in to establish a streamlined system with a simple menu of just
hamburgers, cheeseburgers, French fries, shakes, soft drinks, and apple pie.
The carhops were eliminated to make McDonald's a self-serve operation. Mac and
Dick McDonald had taken great care in setting up their kitchen like an assembly
line to ensure maximum efficiency. The restaurant's name was again changed, this
time to simply "McDonald's". and reopened its doors on December 12,
1948.
In 1953, the McDonald brothers began to franchise their successful
restaurant, starting in Phoenix, Arizona and Downey, California; the latter is
today the oldest surviving McDonald's restaurant. The McDonald brothers created
Speedee to symbolize the quick and efficient service system that they had
devised.
In 1954, Ray Kroc, a seller of Multi-mixer milkshake machines,
learned that the McDonald brothers were using eight of his machines in their
San Bernardino restaurant. He went to San Bernardino to take a look at the
McDonalds' restaurant. He was joined by good friend Charles Lewis who had
suggested to Kroc several improvements to the McDonald's burger recipe.
Believing that the McDonalds' formula
was a ticket to success, Kroc suggested that they franchise their restaurants
throughout the country. When they hesitated to take on this additional burden,
Kroc volunteered to do it for them. He returned to his home outside of Chicago
with rights to set up McDonald's restaurants throughout the country, except in
a handful of territories in California and Arizona already licensed by the
McDonald brothers. Kroc's first McDonald's restaurant opened in Des Plaines,
Illinois, near Chicago, on April 15, 1955, the same day that Kroc incorporated
his company as McDonald's Systems, Inc. (which he would later rename McDonald's
Corporation). Ray Kroc's first McDonald's was demolished after many remodels in
1984.
McDonald’s
is the leading global food service retailer with more than 34,000 local
restaurants serving approximately 69 million people in 121 countries each day.
At year end 2013, 80% of McDonald’s restaurants were franchised of the total
McDonald’s restaurants worldwide.
The
strength of the alignment among the Company, its franchisees and suppliers
(collectively referred to as the System) has been key to McDonald’s
success. This business model enables
McDonald’s to deliver consistent, locally-relevant restaurant experiences to
customers and be an integral part of the communities it serve. In addition, it facilitates the ability to
identify, implement and scale innovative ideas that meet customers’ changing
needs and preferences.
Donald Thompson
President and Chief Executive Officer
During
his 23 years at McDonald’s, Thompson has helped drive business results and
global strategic innovation across the organization. Since joining as an
electrical engineer in 1990, he has held a variety of key leadership positions
within the company including Regional Vice President, Division President and
Chief Operating Officer. Between 2006 and 2010, Thompson served as President of
McDonald’s USA, the company’s largest business segment. Most recently as
President and COO of McDonald’s Corporation, Thompson and his leadership team
established three global growth priorities in support of the McDonald’s Plan to
Win: to optimize the menu, modernize the customer experience and broaden
restaurant accessibility.
In
July 2012, Thompson became President and CEO and is leading the company on its
mission to become “our customers’ favorite place and way to eat and drink.”
A
true advocate of collaboration and believer in the strength of the McDonald’s
three legged stool, Thompson and his leadership team work closely with the
5,000 independent owner/operators, corporate staff and restaurant employees
around the world as well as countless McDonald’s suppliers.
Chairman of Board of Directors
Andrew J. McKenna
McDonald’s Pakistan
history
McDonald’s Pakistan is part of the Lakson
Group of Companies, a leading business house in Pakistan.
McDonald’s
first restaurant opened its door to the people of Pakistan in September 1998 in
Lahore. This launch was met with unprecedented enthusiasm from the citizens of
Lahore, who are known for their liveliness, vigor and penchant for quality
food. Karachi opened its first restaurant a week after Lahore.
Ever since we opened the doors of our
restaurants both in Karachi & Lahore, we have been proud to provide our
customers the same great taste, outstanding value and superior service that is
synonymous with the Golden Arches all over the world.
There
are now 27 restaurants in 8 major cities of Pakistan. (11 in Karachi, 1 in
Hyderabad, 10 in Lahore and 1 in Faisalabad, 1 in Kala Shah Kaku, 1 in Sialkot,
1 in Islamabad & 1 in Rawalpindi)
Today
millions of Pakistanis place their trust in McDonald’s every day- trusting the
company to provide them with food of a very high standard, quick service and
value for money. So next time you walk into one of our restaurants, please
remember, McDonald’s Pakistan is here now, to put a smile on your face, each
and every time you visit us.
McDonald’s
is firmly committed to giving back to the community where it operates. We are
happy to become involved because we recognize that organizations have a role to
play in helping communities to work successfully. The contribution we enjoy
most is the experience of working together with others in the community to
achieve worthwhile benefits for those who need it most.
McDonald’s
Pakistan
Being a
responsible corporate citizen, McDonald’s firmly believes in giving back to the
communities it operates in. We love to provide support and encouragement to the
people who need it the most. All our restaurants contribute to their local
community and every year we help set up and support numerous educational,
sporting and charity programs designed to help a wide range of people.
RESTAURANT
STRUCTURE
The hierarchical
structure for the restaurant for Main Boulevard Branch, Lahore is:
The above three
levels in the structure, i.e., up to Second Assistant level, are from
management side, while lower three levels in the hierarchy are filled from the
crew.
FUNCTIONS
AT THE RESTAURANT
Ø
Raw Materials Acquisition
All the inputs are
imported from different countries like Saudi Arabia, South Africa, UAE and
Malaysia; only the buns used in burgers are procured locally from Dawn Bread.
Ø Ordering
Raw Materi
Based on the demand
forecast by the Restaurant Manager, the First Assistant orders the Venus
Distributors on daily basis. Venus Distributors is independent to acquire
the raw material from wherever it desires but it remains limited only by the
strict specifications of materials by McDonald's. Venus Distributors
stores all the raw materials, in its own cold stores and delivers only one-day
material to the restaurant.
Ø
Storing
Raw Materials
Main Boulevard
Branch has its own cold storage facility, which is used to store the
daily-procured raw material, so that the raw materials remain fresh and
nutritious Uptill they are delivered in the form of finished goods (burgers,
french fries, ice cream, etc.) to the customers.
Ø
Cooking
The cooking
procedure and recipe is documented so that the products become standardized and
customers get the similar taste, quantity and quality to whichever restaurant
they go. It is the policy of McDonald's to throw away any burger if they
remain on heated grill for 15 minutes.
Ø Restaurant
Maintenance
All the utensils and
equipment used in cooking are washed at the closing of restaurant every night,
with anti-microbial fluid. Kitchen, floor, washrooms and all other restaurant
areas are cleaned after every half an hour.
Ø Self
Service
When customers enter
the restaurant, they go to the counter, give their order, which they are served
within a single minute. Now customers take away the tray in which the
order is served, and take their seats themselves, in the big hall with a
sitting capacity of 200 persons.
Ø Drive-Thru
The McDonald's Main
Boulevard, Lahore is one of the few McDonald's restaurants, which are having
the facility of Drive-Thru, i.e., you will go to the counter, here you will
order, pay for that, and get the token while sitting in your car. Now
driving your car, you will go to next counter, give token and pick up the food
you have ordered.
Ø Play
Place
With its
state-of-the-art design, the Play Place offers kids a real thrilling
time. This should come as good news for parents who can enjoy their
delicious McDonald's meal while the kids have fun! In terms of an
eating-out experience, McDonald's means different things to different
people. For some, it’s a family outing, for others it may be a place to
grab a bite in very little time. For children, it’s a great place to visit
for meals and to play.
While talking about
children, RAZA ALI said, “The idea is to provide with a Play Place – a secure
state-of-the-art design offering kids thrill and fun without any extra
charges. The young girls who are trained in Singapore look after
the children who come to play there. We give our children
gifts besides the happy meals, which at present include mighty dinos – classy
high quality stuff.”
Target market of
McDonald’s:
“Do
not buy market share Figure out how to earn it”
Broad speaking
McDonald’s wants to attract as many customers as it can. But the main targets
of the efforts by McDonald’s are following groups:
Children
Youngsters
High –income groups
Families
Broadly speaking,
McDonald’s want’s to attract the whole market. McDonald’s was targeting the
high –income social class uptil now but now McDonald’s is introducing some new
product’s to penetrate into low income groups e.g. McDonald’s cone for Rs. 15/-
is an effort to attract middle income class and lower –income class as well.
Currently, market of
McDonald’s is local market of Lahore. So we can say that McDonald’s is involved
in local marketing i.e. its marketing programs are being tailored to the needs
and wants of local customers groups.
Herarchy in Pakistan
Locations in Pakistan
— 329 & 330 -
B, Satyana Road Peoples Colony
— 111244622
— Plot No.,
A-1/1, Main Autobham Road, Unit No.3 Latif Abad
— 111244622
— F-9 Park,
Jinnah Avenue F-9
— 051111244622
— SD-1, Block A
North Nazimabad
— 111244622
— 172-B, Block 2,
Tariq Road P.E.C.H.S
— 111244623
— Park Towers,
Shop No. GR-23, Plot No. 1, Survey Sheet No. CF 1-5, Clifton Quarters Clifton
— 111244622
— Shop No. 8
& 9, Ground Floor, Clifton pride, Plot No., G-3/1, Block 8, Main Clifton
Road Clifton
— 111244622
— Stadium Road,
Plot No. SB-9, KDA Scheme No.1 (EXT.), Opp. National Sports Stadium, KDA Scheme
— 111244622
— Plot No. P-58,
DHA Beach, Phase V DHA
— 111244622
— Parking Lot,
Jinnah Terminal Complex
— 111244622
— Plot 486/ B,
Sector Y, Phase III, LCCHS DHA
— 042111244622
— Plot 5, Block
G, Sector G, Phase I, LCCHS, DHA
— 042111244622
— 23-Phase II,
Govt. Employees Cooperative Housing Society Ltd. Township Link Road Model Town
— 042111244622
— 13 Kashmir
Block Allama Iqbal Town
— 042111244628
— 89-B Jail Road
042111244622
— 63, Main
Gulberg, Gulberg
042111244622
— Opposite Khyber
Block ,Fotress Stadium, Cantt, Lahore Cantt
042111244622
— Shop# 21E/ 21F,
First Floor, Park Lane Tower, Wellington The Mall, Lahore Mall Road
042111244622
— Jinnah Park,
Police Line, Opp., Kacheri Road Cantt
111244622
