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Presented To: PROF AWAIS

Presented By: Ahsan Arshad 11

Taimor Malik 24

Arslan Zaheer 32

Afnan Khalid 03

Sidra Shah 42

Maryam Aslam 15

CHAMPION’s LEAGUE

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ContentsIntroductionHistoryVision StatementMission StatementOrganizational StructureResourcesCultureEnvironmentMotivationOrganization GoalsPlanningSwot AnalysisComparative situationLast Five Years Performance

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Introduction

The McDonald's Corporation is the world's largestchain of hamburger fast food restaurants, servingaround 68 million customers daily in 119 countriesacross 35,000 outlets.McDonald's primarily sells hamburgers,cheeseburgers, chicken, French fries, breakfastitems, soft drinks, milkshakes, and desserts. Inresponse to changing consumer tastes, thecompany has expanded its menu to include salads,fish, smoothies, fruit, and seasoned fries.

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History

Dec 1948: The first McDonald’s restaurant isopened in San Bernardino, California bybrothers Richard and Maurice McDonald. Offersburgers, fries, milk shakes, soft drinks, andapple pie.•1954: Ray Kroc, a milkshake machinesalesman, suggests nationwide franchising andacts as a franchising agent for the brothers.•1955: The first restaurant run by Ray Krocopens in Des Plaines.

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Ray Kroc Formula for

Success:

•Quality•Service•Cleanliness•Value

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Ray Kroc- Business Model

•Ray Kroc- Developed a businessmodel known as “The Three LeggedStool.” Owner/Operator, Suppliersand Employees

•Just as all three legs of a stool needto be equal to support the weight, allthree elements of the McDonald’ssystem are equally importantpartners in McDonald’s success.

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History (cont.)

•1959: Kroc opens 68 new restaurants. They beginadvertising on billboards..•1964:McDonalds issues its first annual report.•1966:The first public shareholders meeting is held.•1968:McDonalds opens its 1000 restaurants andFred.L-Tumer became the companies president andchief administrative officer. Kroc became chairman andremained CEO until 1973.•The big Mac hamburger made its Debut.

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History (cont.)

•1973: The Egg McMuffin is added to the menuas a breakfast item.•1976:Sales exceeded 3 billion, and the 4000restaurants is opened. Directors declare thefirst cash dividend.•1979:Happy meals are added to the menu.

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History (cont.)•1991: The McLean Deluxe sandwich is introduced andadded to the menu after years of research. Thecompany for the, introducing indoor playgrounds withthe first in Chicago.•1996: The first Indian McDonalds isopened.Mcdonalds.com is launched.•1998:McDonalds first restaurant opened in door tothe people of Pakistan in Lahore.•Karachi opened its first restaurant a weak afterLahore•McDonalds Pakistan is the part of Lakson group ofcompanies.

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History (cont.)

There are now 30 restaurants in the 8major cities of Lahore. 11 in Karachi,10 inLahore,1 Hydrabad,1Faisalabad,1 Kala shahkako,1 Islamabad,1 Rawalpindi.2010:McDonalds introduces real fruitsmoothies and oat meal to its menu.

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Vision Statement

•We aspire to end hunger one meal at a time byproviding low cost- high quality nutritional foodglobally.

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Mission Statement

McDonald's brand mission is to "be our customers'favorite place and way to eat." Our worldwideoperations have been aligned around a globalstrategy called the Plan to Win centering on the fivebasics of an exceptional customer experience –People, Products, Place, Price and Promotion. Weare committed to improving our operations andenhancing our customers' experience.

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Resources Of McDonalds

Human Resources

Don Thompson: Don Thompsonis the President and ChiefExecutive Officer of McDonalds.During his 24 years atMcDonald’s, Thompson hashelped drive business results andglobal strategic innovation acrossthe organization.

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Resources Of McDonalds

Mike Andres

President, McDonald's USA

Peter J. Bensen

Chief Administrative Officer

Richard Floersch

Executive Vice President and Chief Human Resources Office

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Resources Of McDonalds

Physical Resources

Headquarter: McDonalds headquarter is located in Oak BrookIllinois US. Physically.Physical Locations: McDonald’s is now in 116 countries. it has 35000 locations world wide.

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Resources Of McDonalds

Physical Resources

List Of Countries First Outlet Location Current Operating Outlets

US San Barnadino,California

14267

Canada Richmond, British Columbia.

1427

Japan Tokyo 3164

China Shenzhen 2000+

Pakistan Lahore 30

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Resources Of McDonalds

Financial Resources:Approximately 70% of McDonald’srestaurants worldwide are ownedand operated by independent,local businessmen and women.

Total assets36,626,300 201135,386,500 201232,989,900 2013

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Culture Of McDonalds

Change And Innovation: McDonalds is allthe time trying to be in time with new trends,demand or technology even while trying toachieve consistency in the operation of itsmany outlets.Training: McDonalds trained 55000 employseach year. the company also have the strongtradition and belief that the training haveknown for their values as the bottom line fortheir business.

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Culture of McDonalds

Team Work: McDonalds business demandteamwork.Motivation: McDonalds is motivating employs forbetter performance. Incentive pay system.Bonuses.Standard: The McDonalds established thesequences of strict and detailed working standardsthat can ensure for every product must be highquality.

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Environment Of McDonalds

Suppliers: Coca-Cola ,wholesale food processors andthe packaging manufacturers are the main suppliersof the company. They are making impact onMcDonalds.Law: Different countries got on law which isimpacting McDonalds. E.g.. All Muslim restaurants inthe Muslim region are halal approved.Competitors: Wendy's , burger king and Subway arethe main competitors of the McDonalds. They aremaking impact the McDonalds.

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Competitors

Trademarks are property of respective brands

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Environment Of McDonalds

Globalization: McDonalds is aninternational world wide restaurant that'swhy globalization is affected McDonaldscorporate strategyShareholders: Shareholders impactingMcDonalds because they invest money onthat's why if McDonalds do good businessthen price of share will increases.

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Motivation

The 'McDonalds' company applies three components ofthe motivation system: financial encouragement,non financial encouragement, and social policy. Allthe three factors are described in Maslow'smotivation theory. However, Maslow states that all

the needs must be fulfilled one after another.

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Motivation

Wages:One-function employees might get paid more forthe same job that another functions employees aredoing.. The company believes that the employeesmake the dream of the organization come true.Rewards:In an effective organization, rewards are used well.Rewarding means recognizing employees,individually and as members of groups, for theirperformance and acknowledging their contributionsto the agency's mission.

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Motivation

Service awards recognizing employees service at

five year intervals.

President award global scheme for support staff.

Ray Kroc award for business managers.

Champion of the month ultimately feeding into

employees into year scheme.

Restaurant bonus schemes, one for all employees

and one for managers based on restaurant

performance.

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Organization goals

Real Goals:

Certainly the first goal is to make money at the

franchise level and at corporation.

Another goal of the corporation is to maintain and

improve the brand reputation.

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Organization goals

Strategic Goals:

To maintain the leadership in fast food restaurant industryTo serve the customer with good food in a friendly and fun environmentProviding the quality food and value of money to the customerProviding the shareholder a positive return on their investmentsTo meet the social and ethical responsibility.

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Organization goals

Financial GoalsDon Thompson. "Today, the Plan to Win continuesto guide the evolution and execution of our globalgrowth priorities as we strive to become evenbetter and bigger."McDonald's reaffirmed its long-term averageannual constant currency growth targets:System wide sales growth of 3% to 5%Operating income growth of 6% to 7%Return on incremental invested capital in the highteens.

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Organization goals

Stated Goals:McDonald’s said in the report it can’tguarantee it will achieve the stated asoperational goals by 2020, but stressed itis committed “to putting forth good-faithefforts to make progress towards thesegoals, to report on an annual basistangible progress and measurements,where possible, and to explain bothsuccesses and challenges along thisjourney.”

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Organization Planning

McDonald's has bold plans to evolve the customer experiencefor the digital era, and the Global Digital team is at the centerof this aggressive change. Our team is leading the worldwideeffort to develop and orchestrate digital initiatives across everyfacet of our interactions with customers. This includes newbrand engagement, e-commerce, service delivery, and digitalcontent capabilities.With the fast emerging digital environment, this team isfocused on innovation across the customer journey in andoutside our restaurants, identifying the most meaningfulopportunities for our customers, and developing capabilities tobring them to life. We do this in partnership and teamworkwith our IT organization and the Markets around the world.

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Opportunities

1. New Products & Services2. Beverage Market3. Growth of Franchise Restaurants4. Demand for Organic Products5. International Expansion6. Conservation (going green)

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Threats

1. Change in Commodity Prices2. Food Safety and Food Borne Illness

Concerns3. Economic Slowdown4. Growing Health Consciousness5. Intense Competition (dine-in restaurants,

Burger King)6. Legal Challenges (McDonald’s faces many

lawsuits)

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Strengths

1. Strong Global Presence (located in over-100 countries)

2. Strong Real Estate Portfolio3. Brand Recognition4. Revenue Growth 9% (Above Industry

Average of 7.5%)5. The Ronald McDonald House (Children

Charity)6. Systemization and Duplication

(Consistency)

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Weaknesses

1. Public Perception (perceived as a contributor to societies obesity problem)

2. Product Innovation3. Advertising (targets young children)4. Customer Service5. Market Saturation (more difficult to add

new stores)6. Labor Turnover

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Competitive Situation

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Last Five Years Performance Of McDonalds

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Last Five Years Performance Of McDonalds

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Ending Quote

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