MCDONALDS CHENNAI

8/7/2019 MCDONALDS CHENNAI

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MCDONALD

McDonald's, also known as "Mickey D's", or "McD's, is the

world's best known fast-food chain. With its familiar golden arches

logo, McDonald's has 31,886 restaurants worldwide serving Big Macs,

Chicken McNuggets, salads and French fries.

The largest fast food chain in the world was founded as

a barbecue drive-in in 1940 by Dick and Mac McDonald. The first

McDonald's restaurant was located in San Bernardino.

Ray Kroc, a milk shake machine salesman, found the greatness

of the restaurant and purchased the rights from the brothers. Kroc

opened his first McDonald's restaurant in Des Plaines, IL in 1955 and

preached cleanliness in them. His very basic step paved the path to

glory. A clean atmosphere separated McDonald's from the rest of the

competitors and attributes to their great success. The Big Mac was

introduced the system wide in 1968. It was the brainchild of Jim

Delligatti, who by the late 1960s operated a dozen stores inPittsburgh. Herb Peterson in 1973 developed the Egg McMuffin.

By 1984, McDonald's served 17 million customers a day that

was equivalent to serving lunch to the entire population of Australia

and New Zealand. By 1996, McDonald's opened a store in Belarus, its

100th country. The same year McDonald's and Disney announced a deal

giving McDonald's exclusive rights to use characters from Disney films

in its promotions around the world for 10 years. Commentators called it

the biggest global marketing alliance yet devised. From small bricks to

mansion today McDonald's has become emblematic of globalization,

sometimes referred as the "McDonaldization" of society.

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Today, approximately 70% of McDonald's restaurants

are operated by independent franchisers. The number of restaurants in

the U.S. has reached saturation. Most new McDonald's are now being

opened in Europe, Middle East and Asia. In order to be a franchisee, an

individual must have at least $175,000. There are about 2,400 owner/

operators system wide. McDonald's is looking to boost sales by opening

restaurants 24 hours a day. An estimated 30% of store revenue comes

from breakfast sales alone. In 2006, the company had record revenues

of $21.6 billion, a 9% increase from the previous year and the net

income recorded was $4.4 billion.

Quality Suppliers:

Coca-Cola, the right well-known drink, has been with McDonald's from

the beginning supplying beverages. McDonald's is increasingly using its

leverage to capitalize upon global purchasing practices. New

restaurants throughout Europe feature tabletops from Belgium; chairs,

floors and tiles from Italy; doors from Austria etc. All using low-cost,quality suppliers.

Made For You:

McDonald's 'new 'Made for you' preparation food system will

allow it to serve hotter, fresher food.

When a burger is being created the bottom bun and the meat is

heated up together in the microwave, than the cheese, ketchup, mustard

and pickles are being put on and covered up with the other half of the

bun. The whole finished burger is then wrapped up into special paper

and market with the time. New cookers are being added which grill the

burger meat faster. Everything is then put in special storage cupboard,



which additionally holds the food warm for no more than 10 minutes,

after that the burger is eliminated. When the customer orders his/her

food is straightaway served. The quest for variety to satisfy the

growing number of customers was attracting ultimately led to new items

being added to the Classical menu (hamburger, cheeseburger,

milkshake and coffee, soft drinks and fries).

In addition many new products are always under development

in McDonald's test Kitchens for evaluation in selected markets. The

menu is often enchanted with promotional products to add variety on

limited time bases. The group constantly examines their menus around

the world in light of changing customer's taste, as well as local customs.

In addiction to traditional favorites, customers will find special menu

offerings in some countries outside the U.S.

Examples: It includes the popular Teriyaki Burger in Japan and

vegetable Nuggets in India. Also in a large Muslim populations, such as

Malaysia and many Middle East countries, their menu is Halal,

prepared in keeping with Muslim guidelines.

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Other Services:

Customers come to McDonald's for signature products they can't

find anywhere else. In addition many families visit the restaurants

because of their unique ability to put smiles on their children's faces.

Happy meal combine wholesome food whit a toy; Ronald McDonald is a

special friend; play places provide safe and fun recreation and the

alliance with Walt Disney Company let the children's shout even more.

MCDONALDS Training Center:

The most attractive side of McDonald's' activity is the training

that stands as background in every single employee. McDonald's

corporation started his fortune training people on how to be kind, fast,

precise and effective: it has been an absolute pioneer in this field.

Hamburger University is McDonald's worldwide management

training centre located in Oak Brook, Illinois. Designed exclusively to

instruct personnel employed by McDonald's Corporation or employed

by McDonald's Independent Franchisees in the various aspects of the

business. All training programs begin with one essential ingredient: The

Basics of McDonald's Operations.

McDonald's also manages ten international training centres,

including Hamburger Universities in England, Japan, Germany and

Australia. Today, more than 50,000 managers in McDonald's

restaurants have graduated from Hamburger University, located in a

130,000 square foot, with a faculty of 30 resident professors.

McDonald's believes that his quick-service format would be lost



if service at the order desk was not courteous and efficient, to avoid this

problem some detailed video tapes have been created to train every

single worker who had to have direct contact with the customers. The

tapes cover every aspect of dealing with the customers during his 15

seconds at the counter. Crewmen are instructed to initiate each order

with a polite question: 'May I have your order, please?' The success of

these service methods cannot be questioned. Competitors soon realized

the benefit of classroom instruction too. Now all major fast-food chains

have training schools. Yet, non-has come close to matching the

resources McDonald's continues to devote to formal instruction.

Factors Affecting McDonalds :

There were three factors that were chosen to outline the success of

McDonald’s corporation.

• The first factor is GLOBALIZATION, which is define as closer

contact between different parts of the world, with increasing

possibilities of personal exchange, mutual understanding and

friendship between "world citizens".

• DIVERSITY, the difference among people and cultures, is the

second factor discussed in the paper.

• The final factor is ETHICS, which can be defined as a set of

principles of right conduct.



Globalization:

In today’s society, corporations and enterprises are expanding

their businesses in the global markets. Globalization is necessary for

success and survival in the worldwide market.

When considering the foreign market, companies need to

consider there are risks. There must be local marketing to appeal to the

local consumers and also to build relationships and trust. Therefore, the

strategic planning for marketing has to be effective. McDonald’s caters

its menu in other countries to the cultures of the regions.

For example, in India, the non-vegetarian menu includes chicken

and fish items only. Beef is not on the menu in India because are

considered sacred. Global marketing decisions are no different than

those made domestically but the decisions are unique to each country.

Diversity:

McDonald’s commitment to diversity is established on the

foundational belief that diversity is not just a moral and ethical issue,

but also a business issue. Due to the global expanse of McDonald’s

business, diversity has become an integral part of the internal company

culture. McDonald’s has over 30,000 restaurants around the world,

which means franchise owner/operators, employees, and customers

represent just about every culture, religion or ethnicity on earth. In

addition, McDonald’s promotes the use of local suppliers and based on

their policies of diversity, expects and retains suppliers that have a

similar diversity culture. Knowing and understanding the local customs

and traditions of the communities where McDonald’s has established

businesses, integrating people from these communities into the



company, and adapting locally to the tastes and cuisines of the

community, has made McDonald’s the leader in their industry.

McDonald’s realizes that having diversity as an asset greatly

enhances the profitability of the company. Diversity is a direct reflection

of a company’s interpersonal relationships. These relationships, if

positive, result in a rewarding venture. Conversely, if the relationships

are negative, the company’s morale declines and if not addressed, leads

to the deterioration of the company. This deterioration directly impacts

the company’s income and the community’s acceptance of the business.

Ethics:

In addition to their community involvement,

• McDonald's has a long-standing commitment to environmental

protection. Restaurants around the world have innovative

programs for recycling, resource conservation, and waste

reduction.

• McDonald's is also an equal opportunity employer. As an equal

opportunity employer McDonald’s ensures that employees and

job applicants are selected, trained, and promoted without

discrimination to race, gender, sexual orientation, age or

disability. The company promotes their employees based on their

relevant skill, talents, and performance.

• McDonald's promotes and sustains a working environment, which

is free from unlawful discrimination, harassment and bullying.

Employees are regarded as members of a team where everyone's

opinion is valued and respected. The Human Resources



department monitors the effectiveness of the discrimination

policies at regular intervals and takes corrective action as

necessary to ensure that they being complied with. Employees

who feel that they have been treated unfairly are encouraged to

use the remedies outlined in the Company's handbooks.

McDonald’s ethical standards, as well as their strategies for

globalization and diversity are instrumental to the overall success of

the company.



MCDONALDS CHENNAI:

Mc Donalds started their business in 1990.

It's in Ascendas IT park, Taramani, Velachery.

Products of MC DONALDS:







Happy Meals Happy Price Menu

Soft Serve Regular Hot & Cold Beverages

Pricing In MC DONALDS:

Price is High compared to other countries like U.S.A, California etc.,

McChicken + fries cost around Rs. 120; they have something called

"chicken maharaja", that maharaja costs Rs. 165 if it comes with fries.

It’s like Big Mac of America, but u get chicken instead of beef. It’s little

spicy though. If you order cheese, that will cost you additional Rs. 10

and kind of mess up the taste.

Advertising and promotion:

McDonald's is recognized as one of the best marketers of the

world, investing some hundreds of millions of dollars every year for

advertising and promotion of its image. In 1967 the franchisees created

the Operators National Advertising (OPNAD). Fund by pledging to

contribute 1 % of their individual restaurants sales to a national

co-operative advertising program in addition to the 2 or 3 % they were



contributing to their local advertising-co-operatives. McDonald's has

always shown bits of real life in their commercials that seems to have

become a standard for them. Their marketing efforts go far beyond

advertising, including special food promotions, games, videos,

cassettes, tapes, videos, CDs that we couldn't get anywhere else for

the value. Because of the diversity of customers that go to McDonald's,

they developed segmented marketing programs as various key

audiences.

Place:

MC Donalds is Situated in Ascendas IT park in Chennai. The

surroundings are ok (if you don't mind sitting in a food court of an IT

park). Outside customers are allowed inside, but you need to park your

vehicle outside the complex, sign in with the security, then you need to

go to food court. That’s really inconvenient for people. “Why the heck I

should jump security check just to get the damn chicken burger?”



Competitors:

• Pizza Hut

• Dominos

• Burger King

Industries Where McDonald's Corporation Competes:

• Fast-Food & Quick-Service Restaurants

• Leisure

• Restaurants & Cafes.

Loyout of McDonald’s :

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