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One world,
One
Burger
McDonalds
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CERTIFICATE
This is to certify that this project is the original work of
ANKIT MEHTA of BBA III Semester A Section (Morning) who
has completed this project under my guidance.
This project has not been submitted as a part of any other
degree or course to any other university.
(Prof. P.K. Mukherjee)
Project Guide
ACKNOWLEDGEMENT
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Doing my Minor Project has been a great learning experience
for me, as it provided me with an opportunity to study and
understand various issues and concepts related to the brand
MCDONALDS. But this would not have been possible without
the help, co-operation and guidance of my guide Prof. P.K.
Mukherjee .
I am indeed grateful to my guide for providing me necessary
guidance and facility required for completion of the project and
for being an effective source of inspiration.
ANKIT MEHTA
TABLE OF CONTENTS
INTROUCTION TO MCDONALDS 6
COMPANY PROFILE 7-9
HISTORY OF MACDONALDS 10-17
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MCDONALDS AS SMALL SCALE
CORPORATION IN BEGGINING 18-20
AT INTERNATIONAL LEVEL 21-27
PRODUCTIVITY AND 28-33
QUALITY
MARETING STYLE:ADVERTISMNT 34-40
HUMAN FORCE 41-45
FINANCIAL ARENA 46-55
IMPORTS &EXPORTS 56-58
CORPORATE SOCIAL RESPONSIBILITY 59-64
MCDONALDS IN INDIA 65-69
MCDONALDS AND ITS COMPETITORS 70-73
o BURGR KING
o SUBWAY
METHODOLOGY 74
CONCLUSION 75
GALLERY 76-79
INTRODUCTION5 | P a g e
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Although the realm of accounting and finance has often been viewed as
dull bean counting, in todays modern and competitive business
environment, the finance department should be at the heart of any company,
encompassing a variety of functions that go beyond its traditional financial
reporting role. While it is still a priority for accountants to ensure a companys
financial statutory accounts meet legal requirements, dynamic companies
such as McDonalds have shifted the focus of their accounting and finance
function to additionally include the evaluation of past performance and
appraisal of future opportunities, helping to ensure the company maximises
its strategic capabilities.
McDonalds Restaurants UK Limited, a wholly owned subsidiary of
the U.S. parent company, opened its first UK restaurant in Woolwich in 1974.
There are now 1,200 restaurants operating in the UK which, despite
representing only 4% of the total number of McDonalds restaurants
worldwide, contribute 7% of global profits, making the UK a very important
financial market for McDonalds shareholders.
McDonalds understands the value of an integrated accounting and
finance function, extending from the restaurant floor up to the board of
directors. Each individual McDonalds restaurant is structured as an
independent business, with restaurant management responsible for its
financial performance, supported by the centralised Accounting & Finance
department.
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COMPANY PROFILE
McDonald's is the leading global foodservice retailer with more than 33,000
local restaurants serving more than 64 million people in 119 countries each
day. More than 80% of McDonald's restaurants worldwide are owned andoperated by independent local men and women.
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McDonalds is a leader in convenient foods and beverages, with revenues of
about $23 billion and over 1.6 million employees serving the customers
world wide. The company consists of the snack business of Beverages and
Foods. PepsiCo brands are available in nearly 115 countries having more
than 24,500 restaurants in the world providing 24 hour service , having about
1 billon customers to be served all over the world.
McDonaldss success is the result of superior products, high standards of
performance, distinctive competitive strategies and the high integrity of our
people. McDonalds is continuing to expand and introduce new alternative
beverages in the market. Approximately 85% of McDonalds restaurant
businesses world-wide are owned and operated by franchisees .All
franchisees are independent, full-time operators. McDonalds was namedEntrepreneurs Number-one franchise for 1997
Our mission is to be the world's premier consumer Products
Company focused on convenient foods and beverages. We seek to produce
healthy financial rewards to investors as we provide opportunities for growth
and enrichment to our employees, our business partners and the
communities in which
we operate. And in everything we do, we strive for honesty, fairness and
integrity you could now join our team. Greater variety and quality choices
surprise and delight customers with the food and beverage they desire.
McDonalds corp. is currently one of the most successful consumer
products company in the world with annual revenues exceeding $23 million
and has more than 1.6 million employees.
McDonalds products are recognized and are most respected all around the
globe. Currently, its divisions operate in all over the world in beverages,
snack foods, and restaurants. The corporations increasing success has been
based on high standards of performance, marketing strategies,
competitiveness, determination, commitment, and the personal and
professional integrity of their people, products and business practices.
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McDonalds believes their success depends upon the quality and value of
their products by providing a safe, whole some, economically efficient and a
healthy environment for their customers; and by providing a fair return to
their investors while maintaining the highest standards of integrity.
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HISTORY OF
McDonalds.
The McDonald's History - 1954 to 1955
Raymond Albert Kroc1902-1984, A Salesman
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Ray Kroc mortgaged his home and invested his entire life savings to
become the exclusive distributor of a five-spindled milk shake maker called
the Multimixer. Hearing about the McDonald's hamburger stand in
California running eight Multimixers at a time, he packed up his car and
headed West. It was 1954. He was 52 years old.
Dick and Mac McDonald's Restaurant, San Bernardino,
California
Ray Kroc had never seen so many people served so quickly when he pulled
up to take a look. Seizing the day, he pitched the idea of opening up several
restaurants to the brothers Dick and Mac McDonald, convinced that he
could sell eight of his Multimixers to each and every one. "Who could we
get to open them for us?" Dick McDonald said.
"Well," Kroc answered, "what about me?"
Where it all began, Des Plaines, Illinois
Ray Kroc opened the Des Plaines restaurant in 1955. First
day's revenues-$366.12! No longer a functioning restaurant,
the Des Plaines building is now a museum containing
McDonald's memorabilia and artefacts, including the Multimixer!
The McDonald's History - 1956 to 1963
100 million sold
McDonalds sold it 100millionth hamburgers.
Ray Kroc at work.
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"If you've got time to lean, you've got time to clean," Ray Kroc
preached to his troops. Heeding his own words, here the Chairman
of the Board cleans the parking lot of the first McDonald's
franchise in Des Plaines, Illinois.
Ronald McDonald, In Any Language He Means "Fun!"
"The smile known around the world," In his first TV
appearance in 1963 the happy clown was portrayedby none other than Willard Scott.
Fred Turner And Ray Kroc, Architects Of A Dream
Here Ray Kroc (right) and Fred Turner study the design
which would replace the red and white tile buildings
that had become landmarks throughout the U.S. Called
Kroc's first "grill man extraordinaire," Turner is today SeniorChairman of the Board.
The McDonald's History - 1965 to 1973
McDonald's Comes To Wall Street
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In 1965 McDonald's went public with the company's first offering on the
stock exchange. A hundred shares of stock costing $2,250 dollars that day
would have multiplied into 74,360 shares today, worth approximately $3.3
million on December 31, 2006. In 1985 McDonald's was added to the 30-
company Dow Jones Industrial Average.
A Big Idea Called "Big Mac"
"Introduced systemwide in 1968, the Big Mac was the
brainchild of Jim Delligatti, one of Ray Kroc's earliestfranchisees, who by the late 1960s operated a dozen
stores in Pittsburgh."
The Egg McMuffin
Introduced in 1973, the Egg McMuffin was developed by owner
operator Herb Peterson.
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The McDonald's History - 1987 to 1997
FRESH SALES ADDED
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The First Ronald McDonald House in Philadelphia, PA
In 1974 Fred Hill of the Philadelphia Eagles teamed up
with McDonald's to create Ronald McDonald House.Here the families of critically ill children have a place to
call home while they're away from home as the young
patients undergo treatment for their conditions.
The Happy Meal
Since 1979 the Happy Meal has been making kids
visits that much more special. Clubs the world over
collect Happy Meals toys and boxes.
The Future Begins Now
McDonald's Express for a world that can't slow
down!. McDonald's is popping up in more non-
traditional locations like Amoco and Chevron
stations, with full menu offerings and dining roomseating, just like you'll find in a traditional
McDonald's.
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Freshly tossed salads are added to the McDonalds national menu.
THE FAMOUS HAMBURGERS
Fortune magazine names McDonalds hamburgers
among the 100 products America makes best.
HAVE YOU HAD YOUR BREAKFAST TODAY?
The new advertising theme have you had
breakfast today?debuts.
The McDonald's HISTORY -2003 TO 2010
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PREMIUM SALADS ADDEDMcDonaldss premium salads are added to the national menu.
50TH ANNIVERSARY
McDonalds celebrates its golden jubilee.
McCAFE REAL FRUIT SMOOTHIES AND FRAPPES
Smoothies and mocha are now available.
FACTS & FIGURES
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1.6millionRestaurant employees System wide dedicated to serving our customers
540millionSnack Wraps were sold in 2007
24,500Restaurants around the world offer extended or 24-hour service
1billionMore customers were served in 2007 than in 2006
115Countries participated in one of McDonalds most successful promotions
ever
Our tie-in with DreamWorks Shriek the Third
ANALIYSIS ON
MCDONALDS AS A SMALL17 | P a g e
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SCALE CORPORATION IN
THE BEGINNING.
McDonalds is one of the leading restaurant chains in the world, touching
the lives of people everyday. The long journey of the burger brand started in
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1940, when two brothers, Dick and Mac McDonald opened the first
McDonalds restaurant in San Bernardino, California. Initially, they owned a
hotdog stand, but after establishing the restaurant they served around 25
items, which were mostly barbequed. It became a popular and profitable
teen hangout. In 1948, the brothers closed and reopened the restaurant to
sell only hamburgers, milkshakes and French fries.
As per the information of the McDonalds history, the major
revenue came from hamburgers, which were sold at a nominal price of 15
cents. The restaurant gradually became famous and the McDonald brothers
begin franchising their restaurant in the year 1953. The first franchise was
taken by Neil Fox and under it; the second Mc Donalds restaurant was
opened in Fresno, California. It was the first to introduce the Golden Archdesign. The third and fourth restaurants were opened in Saginaw, Michigan
and Downey, California, respectively.
The business began in 1940, with a restaurant opened by siblings
Dick and Mac McDonald in San Bernardino, California. Their introduction of
the "Speedee Service System" in 1948 established the principles of themodern fast-food restaurant. The original mascot of McDonald's was a man
with a chef's hat on top of a hamburger shaped head whose name was
"Speedee." Speedee was eventually replaced with Ronald McDonald in
1963.
The present corporation dates its founding to the opening of a franchisedrestaurant by Ray Kroc, in Des Plaines, Illinois on April 15, 1955 , the ninth
McDonald's restaurant overall. Kroc later purchased the McDonald brothers'
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http://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Ray_Krochttp://en.wikipedia.org/wiki/Des_Plaines,_Illinoishttp://en.wikipedia.org/wiki/Illinoishttp://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Ray_Krochttp://en.wikipedia.org/wiki/Des_Plaines,_Illinoishttp://en.wikipedia.org/wiki/Illinois7/31/2019 Brand Analysis on McDonalds
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equity in the company and led its worldwide expansion and the company
became listed on the public stock markets in 1965. Kroc was also noted for
aggressive business practices, compelling the McDonald's brothers to leave
the fast food industry. The McDonald's brothers and Kroc feuded over
control of the business, as documented in both Kroc's autobiography and in
the McDonald brothers autobiography. The site of the McDonald brothers'
original restaurant is now a monument.
With the expansion of McDonald's into many international markets, the
company has become a symbol ofglobalization 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 consumerresponsibility.
ANALIYSIS ON
MCDONALDS20 | P a g e
http://en.wikipedia.org/wiki/Dick_and_Mac_McDonald#Franchisinghttp://en.wikipedia.org/wiki/Dick_and_Mac_McDonald#Franchisinghttp://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/American_wayhttp://en.wikipedia.org/wiki/Obesityhttp://en.wikipedia.org/wiki/Business_ethicshttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Moral_responsibilityhttp://en.wikipedia.org/wiki/Dick_and_Mac_McDonald#Franchisinghttp://en.wikipedia.org/wiki/Dick_and_Mac_McDonald#Franchisinghttp://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/American_wayhttp://en.wikipedia.org/wiki/Obesityhttp://en.wikipedia.org/wiki/Business_ethicshttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Moral_responsibility7/31/2019 Brand Analysis on McDonalds
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CORPORATION AT
INTERNATIONAL LEVEL.
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McDonald's International through its wholly owned subsidiary McDonald's
India entered into two JVs, one with Connaught Plaza Restaurants Pvt. Ltd.
in the Northern & Eastern region and another with Hard Castle Restaurants
Pvt. Ltd. in the Western & Southern region.
McDonald's restaurants are found in 119 countries and territories
around the world and serve nearly 47 million customers each day.
McDonald's operates over 31,000 restaurants worldwide, employing more
than 1.5 million people. The company also operates other restaurant brands,
such as Piles Caf, and has a minority stake in Prt a Manger. The company
owned a majority stake in Chipotle Mexican Grill until completing its
divestment in October 2006. Until December 2003, it also owned Donators
Pizza. On August 27, 2007, McDonald's sold Boston Market to Sun Capital
Partners
Most standalone McDonald's restaurants offer both counter service
and drive-through service, with indoor and sometimes outdoor seating.
Drive-Thru, Auto-Mac, Pay and Drive, or McDrive as it is known in many
countries, often has separate stations for placing, paying for, and picking up
orders, though the latter two steps are frequently combined; it was firstintroduced in Arizona in 1975, following the lead of other fast-food chains. In
some countries "McDrive" locations nearhighways offer no counter service
or seating. In contrast, locations in high-density city neighborhoods often
omit drive-through service. There are also a few locations, located mostly in
downtown districts that offer Walk-Thru service in place of Drive-Thru.
Especially themed restaurants also exist, such as the "Solid Gold
McDonald's," a 1950s rock-and-roll themed restaurant. In Victoria, British
Columbia, there is also a McDonald's with a 24 carat (100%) gold chandelierand similar light fixtures.
Each McDonald's restaurant is operated by a franchisee, an affiliate, or
the corporation itself. The corporations' revenues come from the rent,
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http://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Pret_a_Mangerhttp://en.wikipedia.org/wiki/Chipotle_Mexican_Grillhttp://en.wikipedia.org/wiki/Divestmenthttp://en.wikipedia.org/wiki/Donatos_Pizzahttp://en.wikipedia.org/wiki/Donatos_Pizzahttp://en.wikipedia.org/wiki/Boston_Markethttp://en.wikipedia.org/wiki/Sun_Capital_Partnershttp://en.wikipedia.org/wiki/Sun_Capital_Partnershttp://en.wikipedia.org/wiki/Counter_servicehttp://en.wikipedia.org/wiki/Drive-throughhttp://en.wikipedia.org/wiki/Highwayhttp://en.wikipedia.org/wiki/Drive-throughhttp://en.wikipedia.org/wiki/Victoria,_British_Columbiahttp://en.wikipedia.org/wiki/British_Columbiahttp://en.wikipedia.org/wiki/British_Columbiahttp://en.wikipedia.org/wiki/Chandelierhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Pret_a_Mangerhttp://en.wikipedia.org/wiki/Chipotle_Mexican_Grillhttp://en.wikipedia.org/wiki/Divestmenthttp://en.wikipedia.org/wiki/Donatos_Pizzahttp://en.wikipedia.org/wiki/Donatos_Pizzahttp://en.wikipedia.org/wiki/Boston_Markethttp://en.wikipedia.org/wiki/Sun_Capital_Partnershttp://en.wikipedia.org/wiki/Sun_Capital_Partnershttp://en.wikipedia.org/wiki/Counter_servicehttp://en.wikipedia.org/wiki/Drive-throughhttp://en.wikipedia.org/wiki/Highwayhttp://en.wikipedia.org/wiki/Drive-throughhttp://en.wikipedia.org/wiki/Victoria,_British_Columbiahttp://en.wikipedia.org/wiki/British_Columbiahttp://en.wikipedia.org/wiki/British_Columbiahttp://en.wikipedia.org/wiki/Chandelier7/31/2019 Brand Analysis on McDonalds
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royalties and fees paid by the franchisees, as well as sales in company-
operated restaurants..
Individual franchise arrangements generally include a lease and a license
and provide for payment of initial fees, as well as continuing rent and
royalties to the Company based upon a percent of sales with minimum rent
payments that parallel the Companys underlying leases and escalations (on
properties that are leased). McDonalds franchisees are granted the right to
operate a restaurant using the McDonalds System and, in most cases, the
use of a restaurant facility, generally for a period of 20 years. Franchisees
pay related occupancy costs including property taxes, insurance and
maintenance. In addition, in certain markets outside the U.S., franchisees
pay a refundable, non interest-bearing security deposit. Foreign affiliates and
developmental licensees pay a royalty to the Company based upon a
percent of sales, as well as initial fees. The results of operations of
restaurant businesses purchased and sold in transactions with franchisees,
affiliates and others were not material to the consolidated financial
statements for periods prior to purchase and sale.
Key points: Restaurants are found in more than 119 countries.
Serve nearly 50 million customers each day.
Solid Gold McDonald's," a 1950s rock-and-roll themed restaurant"
Each McDonald's restaurant is operated by a franchisee, an affiliate, or
the corporation itself.
The results of operations of restaurant businesses purchased and sold
in transactions with franchisees, affiliates and others were not materialto the consolidated financial statements for periods prior to purchase
and sale.
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ANALIYSIS ON
MCDONALDS
GLOBAL OPERATIONS
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McDonald's has become emblematic ofglobalization, sometimes referred to
as the "McDonaldization" of society. The Economistnewspaper uses the
"Big Mac Index": the comparison of a Big Mac's cost in various
world currencies can be used to informally judge these currencies
purchasing. Norway has the most expensive Big Mac in the world as of July2011, while the country with the least expensive Big Mac is India (albeit for
a Maharaja Macthe next cheapest Big Mac is Hong Kong).[62]
Thomas Friedman once said that no country with a McDonald's had gone to
war with another. However, the "Golden Arches Theory of Conflict
Prevention" is not strictly true. Exceptions are the 1989 United States
invasion of Panama, NATO's bombing of Serbia in 1999, the 2006 Lebanon
War, and the 2008 South Ossetia war.
Some observers have suggested that the company should be given credit for
increasing the standard of service in markets that it enters. A group of
anthropologists in a study entitled Golden Arches East looked at the impact
McDonald's had on East Asia, and Hong Kong in particular. When it opened
in Hong Kong in 1975, McDonald's was the first restaurant to consistently
offer clean restrooms, driving customers to demand the same of other
restaurants and institutions. McDonald's have recently
taken to partnering upwith Sinopec, the second largest oil company in the People's Republic of
China, as it begins to take advantage of the country's growing use of
personal vehicles by opening numerous drive-thru restaurants. McDonalds
has opened a McDonald's restaurant and McCaf on the underground
premises of the French arts museum, the Louvre.
McDonald's has started to offer free wireless Internet access in many
countries
McDonald's is the largest chain offast food restaurants in the world. It has
more than 33,000 outlets worldwide. The list of countries follows the
company's own calculation, and contains several non-sovereign territories.
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http://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/McDonaldizationhttp://en.wikipedia.org/wiki/The_Economisthttp://en.wikipedia.org/wiki/Big_Mac_Indexhttp://en.wikipedia.org/wiki/Big_Machttp://en.wikipedia.org/wiki/Currencyhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Maharaja_Machttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/McDonald's#cite_note-61http://en.wikipedia.org/wiki/Thomas_Friedmanhttp://en.wikipedia.org/wiki/McDonalds_Rulehttp://en.wikipedia.org/wiki/McDonalds_Rulehttp://en.wikipedia.org/wiki/United_States_invasion_of_Panamahttp://en.wikipedia.org/wiki/United_States_invasion_of_Panamahttp://en.wikipedia.org/wiki/Kosovo_War#The_NATO_bombing_campaignhttp://en.wikipedia.org/wiki/2006_Lebanon_Warhttp://en.wikipedia.org/wiki/2006_Lebanon_Warhttp://en.wikipedia.org/wiki/2008_South_Ossetia_warhttp://en.wikipedia.org/wiki/Sinopechttp://en.wikipedia.org/wiki/Drive-throughhttp://en.wikipedia.org/wiki/Louvrehttp://en.wikipedia.org/wiki/McDonald'shttp://en.wikipedia.org/wiki/Fast_food_restauranthttp://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/McDonaldizationhttp://en.wikipedia.org/wiki/The_Economisthttp://en.wikipedia.org/wiki/Big_Mac_Indexhttp://en.wikipedia.org/wiki/Big_Machttp://en.wikipedia.org/wiki/Currencyhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Maharaja_Machttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/McDonald's#cite_note-61http://en.wikipedia.org/wiki/Thomas_Friedmanhttp://en.wikipedia.org/wiki/McDonalds_Rulehttp://en.wikipedia.org/wiki/McDonalds_Rulehttp://en.wikipedia.org/wiki/United_States_invasion_of_Panamahttp://en.wikipedia.org/wiki/United_States_invasion_of_Panamahttp://en.wikipedia.org/wiki/Kosovo_War#The_NATO_bombing_campaignhttp://en.wikipedia.org/wiki/2006_Lebanon_Warhttp://en.wikipedia.org/wiki/2006_Lebanon_Warhttp://en.wikipedia.org/wiki/2008_South_Ossetia_warhttp://en.wikipedia.org/wiki/Sinopechttp://en.wikipedia.org/wiki/Drive-throughhttp://en.wikipedia.org/wiki/Louvrehttp://en.wikipedia.org/wiki/McDonald'shttp://en.wikipedia.org/wiki/Fast_food_restaurant7/31/2019 Brand Analysis on McDonalds
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EXAMPLARY:
country date First outlet
location
Number of
currently
operatingoutlets
United
States
May 15, 1940 San Bernardino,
California.
13,381
Canada June 1, 1967 Richmond, British
Columbia.
1,400
Japan July 20, 1971 Tokyo 3,598
Netherlands August 21,
1971
Zaandam 225
Germany November 22,
1971
1,361
Australia May 30, 1971 Yangon,
New South Wales
780
England,
UK
October 1,
1974
Woolwich, London 2,600
China October 8,1990
Shenzhen 850
India October 13,
1996[Delhi 192
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http://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Netherlandshttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/List_of_countries_with_McDonald's_franchises#cite_note-McDonald.27s_India-17http://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Netherlandshttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/List_of_countries_with_McDonald's_franchises#cite_note-McDonald.27s_India-177/31/2019 Brand Analysis on McDonalds
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Recognized Premier Franchising Company
McDonald's continues to be recognized as a premier franchising company
around the world. Over 75% of their restaurants worldwide are owned and
operated by their Franchisees.
The following publications consistently recognize McDonald's as a top
franchisor:
Entrepreneur Magazine Every year, Entrepreneur Magazine listsits Franchise 500. Over the last several years McDonalds has been
recognized as one of the Top 10 Franchises.
Franchise Times Magazine McDonalds has been ranked #1 onits list of top 200 franchises.
USA Today McDonalds has been selected by the National MinorityFranchise Initiative (NMFI) as one of the 50 Top Franchises for
Minorities.
Black Enterprise Magazine McDonalds was listed as one of the40 best Franchises for African Americans.
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Analyzing MCDONALDSPRODUTIVITY & QUALITY.
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The site of the first McDonald's to be franchised by Ray Kroc is now a
museum in Des Plaines, Illinois. The building is a reproduction of the
original, which was the ninth McDonald's restaurant.
To accommodate the current trend for high quality coffee and the popularity
of coffee shops in general, McDonald's introduced McCafs. The McCaf
concept is a caf-style accompaniment to McDonald's restaurants. McCaf
is a concept of McDonald's Australia, starting with Melbourne in 1993.
Today, most McDonald's in Australia have McCafs located within the
existing McDonald's restaurant. In Tasmania there are McCafs in every
store, with the rest of the states quickly following suit. After upgrading to thenew McCaf look and feel, some Australian stores have noticed up to a 60%
increase in sales. As of the end of 2003 there were over 600 McCafs
worldwide.
Some locations are connected to gas stations/convenience stores, while
others called McDonald's Express have limited seating and/or menu or may
be located in a shopping mall. Other McDonald's are located in Wal-Martstores. McStop is a location targeted at truckers and travelers which may
have services found at truck stops. McDonald's announced on May 22, 2008
that, in the U.S. and Canada, it will be introducing cooking oil for its French
fries that contain no trans fats. The company will use canola-based oil with
corn and soy oils by year's end for its baked items, pies and cookies.
In a bid to tap into growing consumer interest in the provenance of food,
the fast-food chain recently switched its supplier of both coffee beans and
milk. UK chief executive Steve Easterbrook said: "British consumers are
increasingly interested in the quality, sourcing and ethics of the food and
drink they buy". McDonald's coffee is now brewed from beans taken from
stocks that have been certified by the Rainforest Alliance, a conservation
group. Similarly, milk supplies used for its hot drinks and milkshakes have
been switched to organic sources which could account for 5% of the UK'sorganic milk output. The company has also expanded the McDonald's menu
in recent decades to include alternative meal options, such as salads and
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snack wraps, in order to capitalize on growing consumer interest in health
and wellness. McDonald's predominantly sells hamburgers, various types of
chickensandwiches and products, French fries, soft drinks, breakfast items,
and desserts. In most markets, McDonald's offers salads and vegetarian
items, wraps and other localized fare. This local deviation from the standard
menu is a characteristic for which the chain is particularly known, and one
which is employed either to continue by regional food taboos (such as the
religious prohibition of beef consumption in India) or to make available foods
with which the regional market is more familiar (such as the sale of Mc Rice
in Indonesia). There have been continuous efforts to enhance variety in the
menu by developing more such products.
McDonald's has also re-engineered its operations repeatedly in its
11 years in India to address the special requirements of a vegetarian menu.
Vegetable products are 100% vegetarian; they are prepared separately,
using dedicated equipment and utensils. Only pure vegetarian oil is used as
a cooking medium. Cheese and sauces are completely vegetarian and egg
less. Separation of vegetarian and non-vegetarian food products is
maintained throughout the various stages of procurement, cooking and
serving.
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Giving their customers quality, Choice and value
Whether its a quick breakfast, lunch on the go or dinner with the kids,
customers come to McDonalds for quality food at a great value. Its goal is to
continuously improve their classic offerings and increase the number andvariety of new options that deliver the great taste and balance their
customers seek.
In addition to an evolving array of menu items, they also offer many ways for
customers to learn about the nutrition information of their food. They pay
particular attention to their offerings for children and how they communicate
about them to both children and their parents.
With guidance from their Global Advisory Council (GAC), they
Continue to evolve their overall approach, while supporting their individualmarkets in meeting the specific needs and requirements of their local
cultures and governments. Since 2004, the GAC has provided McDonalds
guidance on key areas such as global nutrition labeling, McDonalds what I
eat, what I do childrens well-being platform, the development of internal
metrics to gauge their progress, and approaches for motivating children to
eat more fruits & vegetables.
Feature: Farm to Front Counter
The taste & quality of every McDonalds menu items starts with its
integrants-where they are sourced, how they are handled and, ultimately-
how they are prepared in the restaurant.
They focus on every aspect of this journey in order to ensure quality and
safety, work towards greater sustainability and continuously create
opportunities for people and communities-all while delivering a great value to
customers.
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Taking potatoes as one example
From field to freezer to fryer, McDonalds potatoes are on a sustainability
journey of their own. They work with their suppliers to incorporate
sustainable practices at all stages of the supply chain and to ensure thateach potato meets their high standards of quality, safety, appearance and
taste.
AT FARM STAGE
Potatoes are planted, grown and harvested in farms around the world in
keeping with a set of good agricultural practices (GAP) developed by
McDonalds employees, suppliers and outside consultants
AT PRODUCION STAGE
Potatoes arrive and are washed, peeled, washed again and inspected for
blemishes. Potatoes are then cut into shoestring-style strips that are
inspected, and then blanched in hot water to preserve texture. After drying,
the potato strips are partially fried, then frozen and packaged for transport to
McDonalds Distribution Centers.
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AT RESTAURANTS
Fries are delivered to restaurants and stored in the freezer until use. Fries
are then cooked, salted and served crisp, hot and fresh to customers.
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ANALIYSIS ON
MCDONALDS
ADVERTISEMENT
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McDonald's has for decades maintained an extensive advertising campaign.
In addition to the usual media (television, radio, and newspaper), the
company makes significant use of billboards(outdoors, on which large
advertisements or notices are posted.) and signage, sponsors sporting
events from ranging from Little League to the Olympic Games, and makes
coolers oforange drink with their logo available for local events of all kinds.
Nonetheless, television has always played a central role in the company's
advertising strategy.
Over the years, McDonald's has developed TV advertising campaigns that
have become, like McDonald's, a part of our lives and culture. McDonald's
commercials have focused not only on product, but rather on the overall
McDonald's experience, portraying warmth and a real slice of every day life.
This "image" or "reputation" advertising has become a trademark of the
company and created many memorable television moments and themes.
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McDonald's has for decades maintained an extensive advertising
campaign.
sponsors sporting events from ranging from Little League to the
Olympic Games.
, television has always played a central role in the company's
advertising strategy.
McDonald's commercials have focused not only on product, but
rather on the overall McDonald's experience, portraying warmth
and a real slice of everyday life.
FEW MEMORABLE ARE:
-McDonald's is Your Kind of Place (1967)
- You Deserve a Break Today (1971)
- We Do it All for You (1975)
Twoallbeefpattiesspecialsaucelettucecheesepicklesonionsonasesamesee
dbun (1975)
-
- You, You're The One (1976)-Nobody Can Do It Like McDonald's Can (1979)
-Renewed: You Deserve a Break Today (1980 & 1981)- Nobody Makes Your Day Like McDonald's Can (1981)
- McDonald's and You (1983)- Its a Good Time for the Great Taste of McDonald's (1984)
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-Good Time, Great Taste, That's Why This is My Place
(1988)
-Food, Folks and Fun (1990)
- McDonald's Today (1991)-What You Want is What You Get (1992)
-Have you Had your Break Today? (1995)
-My McDonald's (1997)- Did Somebody Say McDonald's (1997)
- We Love to See You Smile(2000)
-There's a little McDonald's in Everyone (2001) - Canada Only
- Im lovin' it (2003)
McDonaldland
McDonaldland was a fantasy world used in
the marketingfor McDonald's restaurants. It was based on the "total concept
and feel" of Sid and Marty Krofft's H.R. Pufnstuf television program.[1]McDonaldland was inhabited by Ronald McDonald and other characters. In
addition to being used in advertising, the characters were used as the basis
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for equipment in the playgroundsattached to some McDonald's.
McDonaldland and the supporting characters have been abandoned in their
marketing, but Ronald McDonald is still seen in commercials and in Happy
Meal toys.
Ronald McDonald
Ronald McDonald is a clown character used as the primary mascot of
the McDonald'sfast-food restaurant chain. In television commercials, the
clown inhabits a fantasy world called McDonaldland, and has adventures
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with his friends Mayor McCheese, the Ham burglar, Grimace, Birdie the
Early Bird, and The Fry Kids. In recent years, McDonaldland has been
largely phased out, and Ronald is instead shown interacting with normal kids
in their everyday lives
MAKING FRUITS AND VEGETABLES FUN
In May 2010, McDonalds launched a Global Happy Meal promotion
featuring the characters from DreamWorks Shrek Forever After. The
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promotion ran in the majority of our major markets and was translated into
nine languages.
Advertising and packaging featured fruit, vegetable and dairy items such as
carrots, apple slices or milk. There were also interactive games such as a
pop-out Puss in Boots who makes drinking milk more fun.
McDonald's Marketing Guidelines
Talking with kids about food and nutrition is a responsibility that McDonald's
takes seriously. We have our own global Children's Marketing Guidelines
that include the following commitments:
Communicating balanced food choices that fit within a child's nutritional
needs
Using licensed characters and properties to encourage activity and
balanced food choices for children to make food, such as fruit and
vegetables, fun to eat
Promoting positive messages that support their well-being - mind, body
and spirit
Providing nutrition information on our food to help parents and families
make informed choices
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Engaging the support of experts and informed third parties to help
guide our efforts for children and families worldwide
MCDONALDS HUMAN
FORCE
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People make the difference at McDonalds
McDonalds and its independent franchisees employ more than 1.6 million
people worldwide they are the face of our brand and differentiate us fromthe competition. Our continued success requires that we develop and retain
a diverse, engaged and talented workforce. We must do this in a range of
cultural environments and in the face of often negative perceptions of
working in the quick service industry. Thats why we focus our people
programs and policies on three priority areas: respect and inclusion,
Employee Value Proposition (EVP) and talent management.
EMPLOYEE BENEFIT PLANS
The following information highlights McDonald's benefits for Staff (e.g., home
office, division or region office) employees.
McDonald's benefits program is designed to attract, retain and engage
talented people who deliver strong performance and help McDonald's
achieve their business goals and objectives.
For McDonald's Corporation employees at corporate, division and
region offices, many benefits are organized into four categories:
Health and Protection
Health and insurance benefits
Medical
Vision supplement plan Dental
Flexible spending accounts
Short and long term disability
Employee and dependent life insurance
Accidental death & dismemberment (AD&D)
Travel and business travel accident insurance
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Pay and Rewards
Compensation, reward and recognition programs
Base pay
Incentive pay
Long Term Incentives
Company car program
Recognition programs
Investing in Future
Savings, investment and financial management programs
Profit Sharing and Savings Plan (includes our 401(k) feature) MCDirect Shares
Mc$ave
Credit union
Financial planning services
Helping Balance Work and Life
Work/life benefits
Vacation
Holidays
Anniversary Splash
Sabbatical program
Summer Hours
Leave of absence
Alternative Work Approach Adoption assistance
Child care discount
Educational assistance
Matching gifts program
Employee Resource Connection
Auto and home insurance group discount program
McDonald's Fitness Discount Program
Beyond Work Internet discount program
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All in all, our benefits programs provide our McDonald's Corporation
employees with a valuable and compelling package. We believe you'll find
there's a lot to gain from being part of the McDonald's team.
The information contained on this site is highlights of McDonald's
Corporation benefits and policies for U.S. staff employees only. The official
Plan documents govern in case of any discrepancy between the Plan and
the descriptions on this site.
The Global Womens Initiative
The Global Womens Initiative is active in all Areas of the World and
sponsored by President and Chief Operating Officer, Don Thompson. TheGlobal Womens Initiative supports the recruitment, development, and
advancement of women at all levels within McDonalds while creating a
culture where women have the opportunity to succeed and grow.
Asia Pacific Middle East and Africa Women's Leadership Network
European Women's Leadership Network
Canada Women's Leadership Network
Latin America Women's Leadership Network
U.S. Women's Leadership Network
Employee Business Networks
McDonalds employees business networks are a resource providing
education, support, and advocacy on behalf of employees.
Current business networks are:
McDonalds African American Council (MA2C)
Asia-Pacific, Middle-Eastern Employee Business Network (APMEN) Hispanic Employee Business Network (HEBN)
Womens Leadership Network (WLN)
McDonalds Gay, Lesbian, and Allies Network (MGLAN)
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Education
McDonalds Intercultural Learning Practice is uniquely designed to promote
diversity and create a more inclusive environment. Some workshops
McDonalds offers its employees are as follows: Intercultural Learning Lab
Asian Career Development
Black Career Development
Hispanic Career Development
Lesbian Gay Career Development
Womens Career Development
REASON TO WORK WITH MCDONALDS
Fast-track Career Progression
Young , Energetic & Flexible Environment
Excellent learning Potential Dignity of Labour
World class Training Systems
Global Exposure
Good Benefits
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MCDONALDS FINANCIAL
ACCOUNTS ARENA
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The entire McDonalds System is thriving. Our world-class franchisees
continue to invest in their restaurants and their people in order to elevate the
entire customer experience, resulting in significant increases in cash flow.
Our suppliers perform what I like to call the McDonalds Daily Miracle
providing 32,000 restaurants an assured supply of safe, high-quality
products at competitive prices, with ever improving efficiency. Lastly, our
highly experienced company employees worked smarter to propel our
business forward. With the powerful alignment of our System and the Plan to
Win as the foundation, we will continue our winning formula: building on the
basics as we further modernize and differentiate the brand.
VIEW TO 2010 ANNUAL REPORT
The Company franchises and operates McDonalds restaurants. Of the
32,737 restaurants in 117 countries at year-end 2010, 26,338 were
franchised or licensed (including 19,279 franchised to conventional
franchisees, 3,485 licensed to developmental licensees and 3,574 licensedto foreign affiliates (affiliates) primarily Japan) and 6,399 were operated by
the Company.
HIGHLIGHTS FROM THE YEAR INCLUDED:
Comparable sales grew 5.0% and guest counts rose 4.9%, building on
2009 increases of 3.8% and 1.4%, respectively.
Revenues increased 6% (5% in constant currencies).
Company-operated margins improved to 19.6% and franchised margins
improved to 82.4%.
Operating income increased 9% (9% in constant currencies).
Earnings per share were $4.58, an increase of 11%.
Cash provided by operations increased $591 million to $6.3 billion.
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The Company increased the quarterly cash dividend per share 11% to
$0.61 for the fourth quarterbringing our current annual dividend rate to
$2.44 per share.
One-year ROIIC was 37.3% and three-year ROIIC was 38.3% for the
period ended December 31, 2010.
The Company returned $5.1 billion to shareholders through share
repurchases and dividends paid.
3-YEAR SUMMARY
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Dollars in millions, except per share
data 2010 2009 2008
Company-operated sales
$16,23
3
$15,45
9
16,56
1
Franchised revenues $ 7,842 $ 7,286
6,96
1
Total revenues
$24,07
5
$22,74
5
23,52
2
Operating income
$
7,473
$
6,841
6,44
3Income from continuing
operations
$
4,946
$
4,551
4,31
3
Net income $ 4,946 $ 4,551
4,31
3
Cash provided by operations
$
6,342
$
5,751
5,91
7
Cash used for investing activities
$
2,056
$
1,655
1,62
5
Capital expenditures
$
2,136
$
1,952
2,13
6Cash used for (provided
by)fin.activity
$
3,729
$
4,421
4,11
5
Treasury stock repurchased(11)$
2,648
$
2,854
3,98
1
Common stock cash dividends
$
2,408
$
2,235
1,82
3
Financial position at year end:
Total assets $31,975 $30,225
28,46
2
Total debt $11,505 $10,578
10,21
8
Total shareholders' equity $14,634 $14,034
13,38
3
Shares outstanding in millions
1,05
4
1,07
7
1,11
5
Per common share:
Income from continuing operations-
diluted $ 4.58 $ 4.11
3.7
6
Net income-diluted $ 4.58 $ 4.11
3.7
6
Dividends declared $ 2.26 $ 2.05
1.6
3
Market price at year end $ 76.76 $ 62.44
62.1
9
Company-operated restaurants
6,39
9
6,26
2
6,50
2
Franchised restaurants
26,33
8
26,21
6
25,46
5
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Franchised sales(12)$61,14
7
$56,92
8
54,13
2
McDonald's Consolidated Statement of Income
In millions, except
per share data
Years
ended
December
31,2010 2009 2008 REVENUES
Sales by Company-
operated restaurants $16,233.3
$
15,458.
5
$
16,560.
9Revenues from
franchised restaurants 7,841.3 7,286.2 6,961.5Total
revenue
s 24,074.6
22,744.
7
23,522.
4
OPERATING COSTSAND EXPENSES Company-operated
restaurant expensesFood
&
paper 5,300.1 5,178.0 5,586.1Payroll &
employee
benefits 4,121.4 3,965.6 4,300.1
Occupancy & other operating expenses
3,638.
0
3,507.
6
3,766.
7Franchised restaurants-
occupancy expenses 1,377.8 1,301.7 1,230.3Selling, general &
administrative expenses 2,333.3 2,234.2 2,355.5Impairment and other
charges (credits), net 29.1 (61.1) 6.0Other operating (income)
expense, net(198.2)
(222.3) (165.2)total
operating
cost and
16,601.5 15,903.
7
17,079.
5
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expensesOperating
income 7,473.1 6,841.0 6,442.9Interest expense-net of capitalized interest of $12.0, $11.7
and $12.3 450.9 473.2 522.6Nonoperating (income)
expense, net 21.9 (24.3) (77.6)Gain on sale of
investment (94.9) (160.1)Income before provision
for income taxes 7,000.3 6,487.0 6,158.0Provision for income
taxes 2,054.0 1,936.0 1,844.8
Net income $ 4,946.3
$
4,551.0
$
4,313.2
Earnings per commonshare-basic: $ 4.64
$4.17
$3.83
Earnings per common
share-diluted: $ 4.58
$
4.11
$
3.76Dividends declared per
common share $ 2.26
$
2.05
$
1.63Weighted-average shares
outstanding-basic 1,066.0 1,092.2 1,126.6
Weighted-average shares outstanding-diluted
1,080.
3
1,107.
4
1,146.
0
McDonald's Consolidated Balance Sheet
In millions, except per share data
Decembe
r 31,2010 2009
ASSETS Current assets
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Cash and equivalents
$
2,387.0
$
1,796.0
Accounts and notes receivable
1,179.
1
1,060.
4Inventories, at cost, not in excess of market 109.9 106.2Prepaid expenses and other current assets 692.5 453.7
Total current assets 4,368.5 3,416.3Other assets Investments in and advances to affiliates 1,335.3 1,212.7Goodwill 2,586.1 2,425.2Miscellaneous 1,624.7 1,639.2
Total other assets 5,546.1 5,277.1Property and equipment Property and equipment, at cost 34,482.4 33,440.5
Accumulated depreciation and amortization
(12,421.8
)
(11,909.0
)
Net property and equipment 22,060.6 21,531.5
Total assets
$
31,975.2
$
30,224.9
LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities
Accounts payable
$
943.9
$
636.0Income taxes 111.3 202.4Other taxes 275.6 277.4Accrued interest 200.7 195.8Accrued payroll and other liabilities 1,384.9 1,659.0Current maturities of long-term debt 8.3 18.1
Total current liabilities 2,924.7 2,988.7Long-term debt 11,497.0 10,560.3Other long-term liabilities 1,586.9 1,363.1Deferred income taxes 1,332.4 1,278.9Shareholders' equity Preferred stock, no par value; authorized - 165.0 million shares; issued - noneCommon stock, $.01 par value; authorized - 3.5 billion shares;
issued - 1,660.6 million shares 16.6 16.6
Additional paid-in capital 5,196.4 4,853.9Retained earnings 33,811.7 31,270.8Accumulated other comprehensive income 752.9 747.4Common stock in treasury, at cost; 607.0 and 583.9 million
shares
(25,143.4
)
(22,854.8
)Total shareholders' equity 14,634.2 14,033.9
Total liabilities and shareholders' equity 31,975.2 30,224.9
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INCOME TAX UNCERTAINTIES
The Company, like other multi-national companies, is regularly audited by
federal, state and foreign tax authorities, and tax assessments may arise
several years after tax returns have been filed. Accordingly, tax liabilities arerecorded when, in managements judgment, a tax position does not meet the
more likely than not threshold for recognition. For tax positions that meet the
more likely than not threshold, a tax liability may be recorded depending on
managements assessment of how the tax position will ultimately be settled.
The Company records interest and penalties on unrecognized tax benefits in
the provision for income taxes.
MCDONALDS IMPORT-
EXPORT.
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The business is managed as distinct geographic segments. Significantreportable segments include the United States (U.S.), Europe, and
Asia/Pacific, Middle East and Africa (APMEA). In addition, throughout this
report we present Other Countries & Corporate that includes operations in
Canada and Latin America, as well as Corporate activities and certain
investments. The U.S., Europe and APMEA segments account for 35%, 39%
and 16% of total revenues, respectively. France, Germany and the United
Kingdom (U.K.), collectively, account for approximately 60% of Europes
revenues; and Australia, China and Japan a 50%-owned affiliate accountedfor under the equity method), collectively, account for over 50% of APMEAs
revenues. These six markets along with the U.S. and Canada are referred to
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as major markets throughout this report and comprise over 70% of total
revenues. The Company continues to focus its management and financial
resources on the McDonalds restaurant business as we believe the
opportunities for long-term growth remain significant. Accordingly, during the
third quarter 2007, the Company sold its investment in Boston Market. The
Company disposed of its investment in Chipotle Mexican Grill (Chipotle) via
public stock offerings and a tax-free exchange for McDonalds common
stock.
In past years, both Boston Markets and Chipotles results of operations and
transaction gains have been reflected as discontinued operations for all
periods presented. In analyzing business trends, management considers a
variety of performance and financial measures including comparable sales
growth, System wide sales growth, restaurant margins and returns.
Constant currency results exclude the effects of foreign currency translation
and are calculated by translating current year results at prior year average
exchange rates. Management reviews and analyzes business results in
constant currencies and bases certain compensation plans on these results
because we believe they better represent the underlying business trends.
Comparable sales are a key performance indicator used within the retail
industry and are indicative of acceptance of the Companys initiatives as well
as local economic and consumer trends. Increases or decreases in
comparable sales represent the percent change in constant currency sales
from the same period in the prior year for all restaurants in operation at least
thirteen months, including those temporarily closed. Some of the reasons
restaurants may be temporarily closed include road construction, reimaging
or remodelling, rebuilding, and natural disasters. McDonalds reports on a
calendar basis and therefore the comparability of the same month, quarter
and year with the corresponding period of the prior year will be impacted by
the mix of days.
The number of weekdays, weekend days and timing of holidays in a
given timeframe can have a positive or negative impact on comparable
sales. The Company refers to this impact as the calendars shift/trading
day adjustment. This impact varies geographically due to consumer
spending patterns and has the greatest impact on monthly comparable
sales. Typically, the annual impact is minimal, with the exception of
leap years.
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System wide sales include sales at all restaurants, whether operated by the
Company, by franchisees or by affiliates. While sales by franchisees and
affiliates are not recorded as revenues by the Company, management
believes the information is important in understanding the Companys
financial performance because it is the basis on which the Company
calculates and records franchised and affiliated revenues and is indicative of
the financial health of our franchisee base.
MCDONALDS AT
CORPORATE SOCIAL
RESPONSIBILITY57 | P a g e
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McDonalds Corporate Responsibility = Values in
Practice
For McDonalds, corporate responsibility is about living their values each and
every day. Its about taking action, achieving results and always
maintaining open lines of communication with customers and other key
stakeholders.
Theyre determined to continuously improve their social and
environmental performance. They work hard, together with their
suppliers and independent restaurant franchisees, to strive toward a
sustainable future for company and the communities in which they
operate.
MCDONALDS VALUES
Placing the customer experience at the core of all they do
Customers are the reason for their existence. They demonstrate their
appreciation by providing them with high quality food and superior service, in
a clean, welcoming environment, at a great value. The goal is quality for
each and every customer, each and every time.
Commitment to people
It consists providing opportunity, nurturing talent, developing leaders and
reward achievement. They believe that a team of well-trained individuals with
diverse backgrounds and experiences, working together in an environment
that fosters respect and drives high levels of engagement, is essential to
continued success.
Believe in the McDonalds System
McDonalds business model, depicted by the three-legged stool of
owner/operators, suppliers, and company employees, is its foundation, and
the balance of interests among the three groups is key.
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Sound ethics is good business. At McDonalds, it hold themselves and
conduct business to high standards of fairness, honesty, and integrity. They
are individually accountable and collectively responsible.
Giving back to our communities
Taking seriously the responsibilities that come with being a leader. They
help their customers build better communities, support Ronald McDonald
House Charities, and leverage their size, scope and resources to help make
the world a better place.
Growing business profitably
McDonalds is a publicly traded company. As such, they work to provide
sustained profitable growth for shareholders. This requires a continuing
focus on customers and the health of system.
ENVIRONMENTAL RESPONSIBILITY
Doing more with less
Less is more when it comes to the environment less energy, fewer
emissions and less waste. At McDonalds, they seek to reduce their
environmental impact because it is not only good for our planet, but also
good for long-term financial success. Aim is to use less and spend less
through three areas of activity: sustainable packing and waste management,
energy conservation and green restaurant design.
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McDonalds continues to test and learn how to incorporate more green
elements into their buildings. There are green components already present
in their existing restaurant standards around the world, and they are working
to enhance these. Several of markets, including France, Canada, Germany,Brazil, Costa Rica and the U.S., currently have plans to install and track the
performance of new sustainable features to improve energy efficiency.
Waste Conscious
McDonalds uses an internal global scorecard tool called the Eco-Filter to
help them to make packaging decisions while keeping the environment in
mind. Over time, they have made changes aimed at reducing the amount ofpackaging and increasing their use of recycled materials. For example, in
2009, McDonalds France introduced a frappe cup and lid made out of 40%
recycled plastic (rPET). Using recycled materials reduces the amount of
virgin resin needed by 123 metric tons per year and reduces the amount of
landfill waste by an equivalent amount
Serving Up Quality, Affordability and the Power to Make the
Right Choices
McDonalds is committed to offering quality at an affordable price. Theyre
also committed to the well-being of customers. They work together with their
employees, franchisees and suppliers to serve a balanced array of quality
food products and provide the information needed to make individual
choices.
There continues concern about obesity rates and related risks to humanwell-being among consumers, governments, NGOs, and health and nutrition
experts. They take these issues seriously and are working to do what they
can to positively influence the situation.
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Giving Customers What They Want Choice and Regional
Variety at the Right Price
Many equate the Golden Arches with classics such as the Big Mac and
World-famous Fries. These consumer favourites are part of McDonalds coremenu, but they have continued to expand their selection of food and
beverage choices to meet the diverse needs and preferences of customers
in every country where they operate.
McDonalds has continued to develop new menu offerings to meet the needs
of diverse markets around the world. For example, McDonalds USA has
introduced Fruit and Maple Oatmeal, a wholesome new addition to the
breakfast menu featuring about cup of real fruit and 32 grams of wholegrains. (This is two-thirds of an individuals daily requirement.) Theyve also
introduced a line of new juices throughout Latin America that features 40%
fewer calories and less sugar while still providing the benefits of fruit juice. In
other markets, they continue to expand portable sandwich offerings with
additional wrap offerings, including grilled chicken with fresh lettuce and
tomatoes.
Regardless of the location, menu options are always developed with thecustomers lifestyle and financial needs in mind.
McDonalds Is Committed to Its People
It goes without saying that they support fundamental human rights for all
people. They comply with employment laws in every market where they
operate, and will not employ underage children or forced labourers. They
respect the right of employees to associate or not to associate with anygroup, as permitted by and in accordance with, applicable laws and
regulations.
But these things are just the greens fees to running a successful, sustainable
business in todays world.
Delivering on responsible food and customer expectations demands an
engaged, committed and talented workforce. McDonalds knows this, and so
do McDonalds franchisees. People are absolutely fundamental to brand andto building business.
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APPROACH
They have a modern, strategic approach to addressing these and otherchallenges. Business is strong and they need high-performing employees to
help them continue that trend. Their operations span a range of cultural
environments. Theyre diverse by design. People policies and programs are
designed to meet employee needs through the following priorities:
Respect - Create a diverse and inclusive culture where everyone feels
valued and respected.
Commitment Enhancement - Enhancing employment value propositionto drive high levels of employee commitment.
Talent Management - Attract, develop and retain the most talented
people at all levels.
Reaching out and giving back to the
Communities they serve
Giving back to the community is an essential part of McDonalds heritageand values it is part of our DNA. They are kind of committed to using
scope, people and profits to create lasting impact on the communities in
which they live and work. Across the globe, they seek to make a difference
through four primary avenues: support of Ronald McDonalds House
Charities and their childrens programs; local, regional and global
partnerships and sponsorships; involvement by their owner/operators in their
local communities; and disaster relief.
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MCDONALDS IN INDIA
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McDonalds India Pvt. Ltd (MIPL),the wholly-owned subsidiary of theUS-based fast-food giant, McDonald's Corporation, is likely to put on hold its
earlier declared expansion plan of opening 80 restaurants in India by 2003.
McDonalds has 132 restaurants in India of which 79 are in North & EastIndia and 53 in West & South India.
79 restaurants in North & East India:
33 in Delhi
22 in Uttar Pradesh Noida (5), Ghaziabad (4), Mathura (1)
(Highway and Drive Thru), Kanpur (2), Meerut (2), Lucknow (4),
Agra (1), Allahabad (1), Varanasi (2)
11 in Haryana - Faridabad (3), Manesar (1) (Highway and Drive- Thru), Gurgaon (5), Karnal (1) (Highway and Drive - Thru),
Panipat (1)
7 in Punjab - Chandigarh (2), Ludhiana (2), Doraha (1)
(Highway and Drive - Thru), Jalandhar (1), Patarsi (1) (Highway
and Drive - Thru)
3 in Rajasthan - Jaipur (3)
1 in Uttaranchal - Dehradun (1)
1 in West Bengal Kolkata (1) 1 in Himachal Pradesh- Jabli (1).
53 Restaurants in West & South India:
32 in Maharashtra Mumbai (23), Pune (8), Nasik (1)
7 in Gujarat Ahmedabad (4), Vadodara (2), Surat (1)
7 in Karnataka Bangalore(7)
4 in Andhra Pradesh Hyderabad (4) 3 in Madhya Pradesh Indore (3)
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McDonald's India Culturally Sensitive.!!!
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1996 The first McDonald's restaurant opened on Oct. 13, at Basant Lok,
Vasant Vihar, New Delhi. It was also the first McDonald's restaurant
in the world not serving beef on its menu
1997 The first Drive - Thru restaurant at Noida (UP)
The first disabled friendly store at Noida (UP)
1999 The first Mall location restaurant at Ansal Plaza (New Delhi)
2000 The first highway restaurant at Mathura (UP)
2001 The first thematic restaurant at Connaught Place (New Delhi)
2002 The first restaurant in a food court at 3C's, Lajpat Nagar (New
Delhi)
The first restaurant at the Delhi Metro Station at Inter State Bus
Terminus
The first annual fundraiser in association with ORBIS and Dr.
Shroff's Charity Eye Hospital.(Delhi)
2003 The first Dessert Kiosk - Faridabad (Haryana)
2003-04 Indigenous products like McAloo Tikki, McVeggie and Pizza McPuffexported to Middle East countries
2004 McDonald's Delivery Service (McDeliveryTM ) introduced in New
Delhi
2006 McDelivery on Bicycles flagged off at Chandni Chowk (Delhi)-
another first initiative by McDonald's India
100th McDonald's Restaurant in India
2007 The first Restaurant opened in the Eastern Region at Park Street,
Kolkata (West Bengal)
The first Restaurant opened at Airport.(Domestic Airport, New
Delhi)
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McDonald's worldwide is well known for the high degree of respect for the
local customs and culture. McDonalds has developed a menu especially for
India with vegetarian selections to suit Indian tastes and preferences.
Keeping in line with this, McDonald's does not offer any beef or pork
items in India. In the last decade it has introduced some vegetarian and
non-vegetarian products with local flavours that have appealed to the Indian
palate. There have been continuous efforts to enhance variety in the menu
by developing more such products.
McDonald's has also re-engineered its operations repeatedly in its 11 years
in India to address the special requirements of a vegetarian menu.
Vegetable products are 100% vegetarian, i.e.
They are prepared separately, using dedicated equipment and utensils.
Only pure vegetarian oil is used as a cooking medium.
Cheese and sauces are completely vegetarian and egg less.
Separation of vegetarian and non-vegetarian food products is maintained
throughout the various stages of procurement, cooking and serving.
McDonald's India - A decade of quality service
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For its unparalleled benchmarks established in the QSR sector
McDonalds India has been bestowed with many prestigious awards.
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Most Respected Company' for four consecutiveyears, 2003-2007 in the Food Services sector,
by Businessworld
Most Wanted Brand of the Year' Award 2003 &
2004 by Franchising Holdings India Ltd.
Retailer of the Year' Award for catering
services, 2004-2006 at the Images Retail
Awards.
The 'Most Preferred Fast Food Outlet' 2006 &2007 by Awaaz Consumer Award, hosted by
CNBC.
Star Retailer - The Consumer Way, Food
Services Retailer' of the Year 2006 & 2007, by
Franchise India
Amity Corporate Excellence Award'-in 2007 &
2008
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MCDONALDS AND ITS
COMPETITORS: THE
BRAND FIGHT
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McDonalds vs Burger King
MacDonalds have a few franchises where they have playgrounds tokeep kids busy with play while adults have their snacks. McDonalds
also have home delivery at some places.
As far as size of burger is concerned, Burger King wins with the size
of its burger being almost 20% bigger than that of McDonalds.
McDonalds is cheaper than Burger King, but this is to be expected with
a size difference.
Most of the customers who fluctuate between Burger King and
McDonalds feel that the quality of meat is slightly better at Burger King. There is a difference in taste also owing to Burger King Flame broiling
their meats. This gives a distinct flavour to foods in BK while at
McDonalds fry meats on a grill and then throw them on a holding pan
from where they are served, sometimes remaining there for more than
a few minutes thus becoming dry and flavourless.
Another difference that I feel is a genuine one is that McDonalds cater
more to kids tastes than adults as they believe it is kids who ask
parents to come to McDonalds. On the other hand, the flavour andtaste at burger king suggests it is primarily to cater to adults taste
buds.
The Marketing
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McDonald's single biggest accomplishment is their ability to market to
children. A great percentage of their business comes from
children asking begging their parents to take them to McDonald's. For
years, Burger King had no answer to this. It had a sad Kid's Club with B-level
promotions, while McDonald's co-marketed with children's hits such as
Disney, Mattel, and Barbie.
So how did Burger King gain ground on Ronald, Grimace, and
the Ham burglar?
By not competing with them at all, but by targeting a slightly older
demographic. It began with the "subservient chicken" ad campaign,
capturing the Adult Swim teen audience, and has continued with the "Creepy
King" and his Xbox games.
Another diversion in strategy for the two companies is what they are
advertising to adults. McDonald's has been advertising their salads, looking
to appease the mothers who bring their children into the golden-arched
restaurants, while Burger King has gone the other direction, promoting the
Stacker sandwich, a sandwich made of layers of meat and cheese stacking
up to four burgers high. This sandwich, I can imagine, caters more to the
young stoners that would play an Xbox game based on a fast-food brand.
Regardless, Burger King's strategy of avoiding McDonald's strengths has
paid off, and both chains and their shareholders are savouring the success.
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McDonald s vs Subway
McDonalds hamburger: patty (100% pure inspected beef; no additives,no fillers, no extenders.), bun, ketchup, pickle slices, onions (dehydrated),
seasoning-salt, pepper, partially hydrogenated vegetables oil(cottonseed
and soybean.)
Subway sub sandwich: turkey breast: sliced turkey breast and standard
vegetables (can be altered-iceberg lettuce, tomatoes, red onions, green
peppers, olives and pickles.
The ingredients are different
Subway6 inch turkey breast: 280 calories, 5 FAT (grams).
McDonalds Big Mac: 560 calories, 30FAT (grams).
A subway sandwich compared to a McDonalds Big Mac can save hundreds
of calories and at least 25 Grams of Fat.
It is clear that from above comparison, Subway always associate them with
The Biggest Loserwhile for most of the time, McDonalds is on the other
way round The Bigger Gainer.
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METHDOLOGY
This project is prepared with the help of theoretical knowledge as well as
practical knowledge & a crumb of advises & suggestions from the concerned
professors.
The theoretical pert taken from the various books & magazines
available on this subject. And other recent happing in marketing is taken
from magazines & news paper.
As far as practical is concerned, all the information about the companies
information available on net.
Overall this mission has been completed with the combination of al those
things & it had been with the best of my facts & information.
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CONCLUSION
TODAY, MCDONALDS HAS GROWN TO 25,000
RESTAURANTS IN ABOUT 120 COUNTRIES SERVING 50MILLION CUSTOMERS DAILY. BECOMING THE
LARGEST FAST FOOD CHAIN IN ALL OVER THE
WORLD
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PHOTO GALLERY
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BIBLIOGRAPHY
MAGAZINES:-
BUSINESS WORLD.
100 TOP BRANDS.
THE VALUABLE BRANDS OF INDIA.
WEB SITES:-
www.mcdonalds.com
www.mcdonaldsindia.com
en.wikipedia.org/wiki/McDonald's
www.mcdonaldsindia.net/
Scribd.com
Slideshare.com
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B Y EB Y ES E E U A TM c D o nS