also made it a frequent topic of public debates about obesity, corporate ethics and consumer

responsibility.

Corporate Overview
Facts and figures:
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.
Focusing on its core brand, McDonald's began divesting itself of other chains it had acquired
during the 1990s. The company owned a majority stake in Chipotle Mexican Grill until
October 2006, when McDonald's fully divested from Chipotle through a stock
exchange. Until December 2003, it also owned Donatos Pizza. On August 27, 2007,
McDonald's sold Boston Market to Sun Capital Partners.

Types of restaurants:
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 first
introduced in Arizona in 1975, following the lead of other fast-food chains. In some
countries, "McDrive" locations near highways 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.
Specially themed restaurants also exist, such as the "Solid Gold McDonald's," a 1950s rockand-roll themed restaurant. In Victoria, British Columbia, there is also a McDonald's with a
24-carat (100%) gold chandelier and similar light fixtures.
To accommodate the current trend for high quality coffee and the popularity of coffee shops
in general, McDonald's introduced McCaf, a caf-style accompaniment to McDonald's
restaurants in the style of Starbucks. McCaf is a concept created by 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 the new McCafe 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 McExpress have limited seating and/or menu or may be located in a shopping mall.
Other McDonald's are located in Wal-Mart stores. McStop is a location targeted at truckers
and travelers which may have services found at truck stops.

Play grounds:
Some McDonald's in suburban areas and certain cities feature large indoor or
outdoor playgrounds. The first PlayPlace with the familiar crawl-tube design with ball pits
and slides was introduced in 1987 in the USA, with many more being constructed soon after.
Some PlayPlace playgrounds have been renovated into "R Gym" areas.
"R Gyms" are in-restaurant play areas that feature interactive game zones designed for
children aged four to 11. They are equipped with stationary bicycles attached to video games,
dance pads, basketball hoops, monkey bars, an obstacle course, and other games which
emphasize physical activity.
The "R Gym" features the Toddler Zone, an active play environment with age-appropriate
games that develop physical coordination and social skills; the Active Zone, designed for
children aged four to eight that promotes physical fitness through fun play; the Sports Zone
which features a series of sports-oriented activities to promote aerobic exercise for children
aged nine to 11; the Parent Zone which features seating and provides a monitoring area for
their children; and the Dining Area which allows families to eat.

Redesign:
In 2006, McDonald's introduced its "Forever Young" brand by redesigning all of their
restaurants, the first major redesign since the 1970s.
The design includes the traditional McDonald's yellow and red colors, but the red is muted to
terra cotta, the yellow was turned golden for a more "sunny" look, and olive and sage green
were also added. To warm up their look, the restaurants have less plastic and more brick and
wood, with modern hanging lights to produce a softer glow. Contemporary art or framed
photographs hang on the walls.
The exterior has golden awnings and a "swish brow" instead of the traditional doubleslanted mansard roof.

The restaurants feature areas:

The "linger" zone offers armchairs, sofas, and free Wi-Fi connections.

The "grab and go" zone features tall counters with bar stools for customers who
eat alone; plasma TVs offer them news and weather reports.

The "flexible" zones are targeted toward families and have booths featuring fabric
cushions with colorful patterns and flexible seating.

Different music targeted to each zone.

Branches in the United Kingdom have an even more contemporary look and feel to the stores,
replacing the red with a deep British racing green and overall making the stores look more
casual, similar to a Starbucks branch. Branches in Germany have also been redesigned to
have a more contemporary style and green exterior. Additionally, in Germany, the traditional
"golden arches" over red sign is being changed to "golden arches" over green.

Business model:
McDonald's Corporation earns revenue as an investor in properties, a franchiser of
restaurants, and an operator of restaurants. Approximately 15% of McDonald's restaurants are
owned and operated by McDonald's Corporation directly. The remainder is operated by
others through a variety of franchise agreements and joint ventures. The McDonald's
Corporation's business model is slightly different from that of most other fast-food chains. In
addition to ordinary franchise fees and marketing fees, which are calculated as a percentage
of sales, McDonald's may also collect rent, which may also be calculated on the basis of
sales. As a condition of many franchise agreements, which vary by contract, age, country, and
location, the Corporation may own or lease the properties on which McDonald's franchises
are located. In most, if not all cases, the franchisee does not own the location of its
restaurants.
The UK business model is different, in that fewer than 30% of restaurants are franchised,
with the majority under the ownership of the company. McDonald's trains its franchisees and
others at Hamburger University in Oak Brook, Illinois.
In other countries, McDonald's restaurants are operated by joint ventures of McDonald's
Corporation and other, local entities or governments.

As a matter of policy, McDonald's does not make direct sales of food or materials to
franchisees, instead organizing the supply of food and materials to restaurants through
approved third party logistics operators.
According to Fast Food Nation by Eric Schlosser (2001), nearly one in eight workers in
the U.S. have at some time been employed by McDonald's. (According to a news piece on
Fox News this figure is one in ten.) The book also states that McDonald's is the largest
private operator of playgrounds in the U.S., as well as the single largest purchaser
of beef, pork, potatoes, and apples. The selection of meats McDonald's uses varies with the
culture of the host country.

Shareholder dividends:
McDonald's has increased shareholder dividends for 25 consecutive years making it one of
the S&P 500 Dividend Aristocrats with the highest annual dividends of publicly traded
companies in the fast food industry.

Controversies:
As a prominent example of the rapid globalization of the American fast food industry,
McDonald's is often the target of criticism for its menu, its expansion, and its business
practices.
The McLibel Trial, also known as McDonald's Restaurants v Morris & Steel, is an example
of this criticism. In 1990, activists from a small group known as London Greenpeace (no
connection to the international pressure group Greenpeace) distributed leaflets
entitled What's wrong with McDonald's?, criticizing its environmental, health, and labor
record. The corporation wrote to the group demanding they desist and apologize, and, when
two of the activists refused to back down, sued them for libel in one of the longest cases in
British civil law. A documentary film of the McLibel Trial has been shown in several
countries.
The term "McJob" was added to Merriam-Webster's Collegiate Dictionary in 2003, over the
objections of McDonald's. In an open letter to Merriam-Webster, Jim Cantalupo,
former CEO of McDonald's, denounced the definition as a "slap in the face" to all restaurant
employees, and stated that "a more appropriate definition of a 'McJob' might be 'teaches
responsibility.'" Merriam-Webster responded that "we stand by the accuracy and
appropriateness of our definition." McJob is defined by Merriam-Webster's Online
Dictionary as "a low-paying job that requires little skill and provides little opportunity for
advancement".

In 1999, French anti-globalisation activist Jos Bov vandalized a half-built McDonald's to

protest against the introduction of fast food in the region.
In 2001, Eric Schlosser's book Fast Food Nation included criticism of the business practices
of McDonald's. Among the critiques were allegations that McDonald's (along with other
companies within the fast food industry) uses its political influence to increase its profits at
the expense of people's health and the social conditions of its workers. The book also brought
into question McDonald's advertisement techniques in which it targets children. While the
book did mention other fast-food chains, it focused primarily on McDonald's.
In 2002, vegetarian groups, largely Hindu, successfully sued McDonald's for misrepresenting
their French fries as vegetarian.
Morgan Spurlock's 2004 documentary film Super Size Me said that McDonald's food was
contributing to the epidemic of obesity in society, and that the company was failing to
provide nutritional information about its food for its customers. Six weeks after the film
premiered, McDonald's announced that it was eliminating the super size option, and was
creating the adult happy meal.
The soya that is fed to McDonalds chickens is supplied by agricultural giant Cargill and
comes directly from Brazil. Greenpeace alleges that not only is soya destroying the Amazon
rain forest in Brazil, but soya farmers are guilty of further crimes including slavery and the
invasion of indigenous peoples lands. The allegation is that McDonald's, as a client of
Cargill's, is complicit in these activities.

Arguments in defense of McDonald's:

In response to public pressure, McDonald's has sought to include more healthy choices in its
menu and has introduced a new slogan to its recruitment posters: "Not bad for
a McJob". (The word McJob, first attested in the mid-1980s and later popularized by
Canadian novelistDouglas Coupland in his book Generation X, has become a buzz word for
low-paid, unskilled work with few prospects or benefits and little security.) McDonald's
disputes the idea. In 2007, the company launched an advertising campaign with the slogan
"Would you like a career with that?" on Irish television, outlining that their jobs have many
prospects.
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 beansand 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, aconservation 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's organic milk output.
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 contains 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.

Environmental record:
In April 2008, McDonald's announced that 11 of its Sheffield restaurants have been using a
biomass trial that had cut its waste and carbon footprint by half in the area. In this trial, waste
from the restaurants were collected by Veolia Environmental Services and used to produce
energy at a power plant. McDonald's plans to expand this project, although the lack of
biomass power plants in the U.S. will prevent this plan from becoming a national standard
anytime soon. In addition, in Europe, McDonald's has been recycling vegetable grease by
converting it to fuel for their diesel trucks.
Furthermore, McDonald's has been using a corn-based bioplastic to produce containers for
some of their products. Although industries who use this product claim a carbon savings of
30% to 80%, aGuardian study shows otherwise. The results show that this type of plastic
does not break down in landfills as efficiently as other conventional plastics. The extra energy
it takes to recycle this plastic results in a higher output of greenhouse gases. Also, the plastics
can contaminate waste streams, causing other recycled plastics to become unsaleable.
The U.S. Environmental Protection Agency has recognized McDonald's continuous effort to
reduce solid waste by designing more efficient packaging and by promoting the use of
recycled-content materials. McDonald's reports that they are committed towards
environmental leadership by effectively managing electric energy, by conserving natural
resources through recycling and reusing materials, and by addressing water management
issues within the restaurant.
In an effort to reduce energy usage by 25% in its restaurants, McDonald's opened a prototype
restaurant in Chicago in 2009 with the intention of using the model in its other restaurants
throughout the world. Building on past efforts, specifically a restaurant it opened in Sweden
in 2000 that was the first to intentionally incorporate green ideas, McDonald's designed the
Chicago site to save energy by incorporating old and new ideas such as managing storm
water, using skylights for more natural lighting and installing some partitions and tabletops
made from recycled goods.
When McDonalds received criticism for its environmental policies in the 1970s, it began to
make substantial progress towards source reductions efforts. For instance, an average meal
in the 1970sa Big Mac, fries, and a drinkrequired 46 grams of packaging; today, it
requires only 25 grams, allowing a 46% reduction. In addition, McDonalds eliminated the

need for intermediate containers for cola by having a delivery system that pumps syrup
directly from the delivery truck into storage containers, saving two million pounds of
packaging annually. Overall, weight reductions in packaging and products, as well as the
increased usage of bulk packaging ultimately decreased packaging by 24 million pounds
annually.

Legal cases:
McDonald's has been involved in a number of lawsuits and other legal cases, most of which
involved trademark disputes. The company has threatened many food businesses with legal
action unless they drop the Mc or Mac from their trading name. In one noteworthy case,
McDonald's sued a Scottish caf owner called McDonald, even though the business in
question dated back over a century (Sheriff Court Glasgow and Strathkelvin, November 21,
1952). On September 8, 2009, McDonald's Malaysian operations lost a lawsuit to prevent
another restaurant calling itself McCurry. McDonald's lost in an appeal to Malaysia's highest
court, the Federal Court.
It has also filed numerous defamation suits. For example, in the McLibel case, McDonald's
sued two activists for distributing pamphlets attacking its environmental, labor and health
records. After the longest trial in UK legal history, McDonald's won a technical victory for
showing that some allegations were untrue. But it was a massive public relations disaster,
since the judge also found that more than half of what was on the pamphlet was truthful, or
were simply the opinions of the activists and therefore non-prosecutable.
McDonald's has defended itself in several cases involving workers' rights. In 2001 the
company was fined 12,400 by British magistrates for illegally employing and overworking child labor in one of its London restaurants. This is thought to be one of the largest
fines imposed on a company for breaking laws relating to child working conditions (R v 2002
EWCA Crim 1094). In April 2007 in Perth, Western Australia, McDonald's pleaded guilty to
five charges relating to the employment of children under 15 in one of its outlets and was
fined AU$8,000.
Possibly the most infamous legal case involving McDonald's was the 1994 decision in The
McDonald's Coffee Case.
In a McDonald's American Idol figurine promotion, the figurine that represents "New Wave
Nigel" wears something that closely resemblesDevos Energy Dome, which was featured on
the band's album cover, Freedom of Choice. In addition to the figurine's image, it also plays a
tune that appears to be an altered version of Devo's song "Doctor Detroit." Devo copyrighted
and trademarked the Energy Dome and is taking legal action against McDonald's.

Headquarters:
The McDonald's headquarters complex, McDonald's Plaza, is located in Oak Brook, Illinois.
It sits on the site of the former headquarters and stabling area of Paul Butler, the founder of
Oak Brook. McDonald's moved into the Oak Brook facility from an office within the Chicago
Loop in 1971

Scope of operations

Field of activities:
McDonald's is the largest food service company in the world. The company regards itself as
the leading global food service retailer. With more than 30,000 restaurants serving more than
47 million people each day in 121 countries it is hard to argue! In 1974 McDonald's opened
its first restaurant in the UK. As of 31 December 2001, McDonald's and its franchisees
operated over 1,184 restaurants in the UK.
McDonald's original restaurant in San Bernardino, California served
only hamburgers, milkshakes, and french fries. While still based on hamburgers, today's
menu includes numerous other items that have been added through the years. Below are listed
the basic items sold by the company.

Burgers:
All beef patties are grilled, with seasonings, consisting primarily of salt and black pepper.
Big Mac: Along with the Quarter Pounder with cheese, this is one of the two
McDonald's signature menu items. Introduced in 1968 as a response to the flagship
burger at Big Boy restaurants. Two 1.6-ounce (45 g) (approx. uncooked
weight) ground beef patties, special Big Mac sauce (similar to Thousand Island
dressing), re-hydrated onions, two pickle slices, shredded iceburg lettuce, and cheese,
on a toasted bun, with an additional middle bun (called a "club layer") separating both
beef patties.

Quarter Pounder: Along with the Big Mac, this is one of the two McDonald's
signature menu items. 4-ounce (113 g) (approx. uncooked weight) ground beef patty
with ketchup, mustard, slivered onions, two pickle slices (many countries don't
include pickles), and two slices of cheese. The Quarter Pounder was invented by Al
Bernardin, a franchise owner and former McDonald's Vice President of product

development, at his McDonald's in Fremont, California, in 1971. In some markets

unfamiliar with Imperial measurements (such as France), it is known as a Royal
Cheese, or variants thereof, such as McRoyale . Also available as the Double Quarter
Pounder with Cheese, which includes another patty of the same proportions and a
slice of cheese, or as a quad sandwich in parts of Australia.

Hamburger and cheeseburger: a 1.6-ounce (45 g) ground beef patty, with

0.125 ounces (3.5 g) ketchup,mustard, a single dill pickle, re-hydrated onions, on a
toasted bun. At one time early in McDonalds history, the pickle was removed from
the sandwich. Also sold as a double or triple, adding an extra pickle slice for each
beef patty added. The double cheeseburger was originally offered as a promotional
item in the 1950s, and was added to the regular menu in 1965. A triple burger and a
bacon double cheeseburger are optional items and are not always available in all
restaurants or markets. A green chili double cheeseburger with chili peppers is offered
in New Mexico.

Double Cheeseburger has two 1.6-ounce (45 g) ground beef patties, with
0.125 ounces (3.5 g) ketchup, mustard, two slices of dill pickle, re-hydrated onions,
and two pieces of cheese on a toasted bun.

McDouble, made its debut in 2009, similar to a Double Cheeseburger, but with just
one slice of cheese.

The Big N' Tasty is a 4-ounce (113 g) beef patty with ketchup, mayonnaise with a

grill flavoring, diced onions, two pickles, leaf lettuce, and a tomato slice, on a toasted
bun. It was devised to resemble Burger King's Whopper sandwich.[4] It is also known
as the Big Xtra in most ofCanada; the McXtra in Qubec, Canada; the McFeast
Deluxe
in Australia;
the
Big
Tasty
(without
the
'N')
in Brazil, Bulgaria, France,Germany (without
ketchup), The
Netherlands, Poland, Sweden, the United Kingdom; the Quarter Pounder Deluxe
in South Africa; and the McNifica (a play on Spanish magnifica, 'wonderful')
in Mexico and Latin America. However in many Latin American countries the
McNifica and Big n Tasty are two different burgers where the McNifica does not have
the special grill mayonnaise.
Angus Third Pounders - There are three sandwiches: the Angus Deluxe

(American cheese, sliced red onions and sliced red tomatoes, iceberg lettuce, pickles,
mustard, and mayonnaise); Angus Mushroom and Swiss (sauted mushrooms, Swiss
cheese and mayonnaise); and Angus Bacon and Cheese (bacon, American cheese,
sliced red onions, mustard, ketchup and pickles). An Angus Chipotle BBQ Bacon
sandwich was later added to the lineup. In Ontario it is the called the Angus Deluxe,
with or without bacon, cheese, or both. Cheddar cheese is used on the Angus Deluxe
in Canada instead of American cheese. In Australia, only two Angus burgers are sold;
The Grand Angus (which is a clone of the Angus Deluxe) and the Mighty Angus
(which resembles the Angus Cheese and Bacon, but with no pickles and mayonnaise
and onion relish replacing the ketchup and mustard). Both sandwhiches are on toasted
sourdough buns, unlike in America where they are on sesame seed buns.
Cheddar McMelt - Only in Brazil
In most European markets, a wrap called the Greek Mac is sold. It consists of
two burger patties wrapped in a pita with yogurt sauce, tomato slices, iceberg lettuce
and onions. The sandwich is offered in Belgium, Bulgaria, the Czech
Republic, Cyprus, Poland, Portugal,Russia, Serbia (seasonal), Spain, and selected
outlets in the United Kingdom.

Chicken, fish and pork:

McChicken - A mildly spicy chicken sandwich. Made from 100% white meat
chicken. mayonnaise, and shredded lettuce, on a toasted bun. It was introduced in
1980, then later removed, but then later reintroduced in 1988. In some markets it

is not spicy, and in others a cajun spiced version is also offered. It still remains
one of the biggest sellers, just behind the Big Mac.
Premium chicken sandwiches - The Classic is a rebranding of the Crispy
Chicken and Chicken McGrill sandwiches, with mayonnaise, leaf lettuce, and a
tomato slice. The Ranch BLT contains ranch sauce instead of mayonnaise and
includes bacon. The Club is similar to the Classic with added bacon and a piece of
Swiss cheese. In Latinoamerica, there are the Classic, the Club but instead of the
BLT, a Honey-mustard sandwich. All are served on a honey-wheat roll, with either
a grilled or crispy chicken breast.

Southern Style Chicken Sandwich - A southern style chicken breast, on a

steamed bun, dressed with butter and two pickles. Nearly identical to a Chick-filA chicken sandwich
Snack Wrap - McDonald's version of a wrap made with white meat chicken
breast (crispy or grilled), lettuce, shredded Cheddar cheese andMonterey Jack
cheese, and a sauce (Spicy Buffalo, Ranch, Honey Mustard, Chipotle barbecue, or
Salsa Roja, the breakfast sauce on theMcSkillet), wrapped in a soft flour tortilla.
Officially launched on July 1, 2006. Chipotle BBQ is the most recent flavor.
Available
in
the United
States,The
Netherlands, United
Kingdom, Canada, Australia and Brazil.[5][6][7] There is also a Mac Snack Wrap

which features the fixings of the Big Mac, but without the bun and wrapped in a
tortilla shell, and uses a quarter of a piece of quarter meat.
Chicken Fajita - Chicken, cheese, red and green bell peppers, and diced onions

in a flour tortilla. Comes with Picante sauce packets on request, which are
available in mild and spicy. Available in only a few markets.
Chicken McNuggets - Introduced in 1980 as a replacement for the
McChicken, these are small chicken chunks served with dipping sauces
of Barbecue, Sweet n' Sour, Honey, and Hot Mustard. Available in 3, 4, 6, 10
(originally 9), or 20 pieces. Up until 2003, they were a combination of liquified
white and dark meat, now they are made with only liquified white meat.

Chicken Selects - McDonald's version of chicken strips. They were introduced

in 2002 for a limited time and offered again as a permanent part of the menu in
2004. They are sold in 3, 5, or 10 pieces sizes and include choices of spicy
buffalo, creamy ranch, Honey Mustard, andChipotle barbecue dipping sauces;
sauce selections in the UK are smokey barbecue, sour cream and sweet chili
sauce. Sold in theUnited States, Canada, Israel and the UK. Available in Australia
under the name Chicken McDippers.
Filet-O-Fish - A whitefish fillet with tartar sauce and a half slice of cheese, on
a steamed bun. It was introduced in Cincinnati in 1963 when it was discovered
that many Roman Catholics chose to eat at Frisch's Big Boy on Fridays and
during Lent, as it offered a fish sandwich so they could go without meat.

McRib - A sandwich featuring boneless pork smothered in barbecue sauce, diced

onions, and pickles. First seen in test-market stores near interstate highways
around Milwaukee andMadison, Wisconsin, in the late 1970s (along with early
tests of personal-sized pizza) the McRib was more widely released in 1981, but
later pulled from menu. Now released annually in the US as a limited time
promotion. Since 2005, the McRib has reappeared in late October and stays on the
menu for one month. This limited time marketing stategy was parodied on The
Simpsons, with the "Krusty Burger Ribwich". The McRib was recently released in
Canada as a promotional sandwich from March 18 through April 8, 2008. The
McRib is presently on some European menus, e.g. Germany.

Other products

McDonald's first introduced salads to its menu in 1985. Since that time, they have

restructured their salad lines several times. In the U.S., the newest salad offerings
are part of the McDonald's Premium line. First introduced in 2003, the Premium
Salads all are a mixture oficeberg lettuce and a special lettuce assortment
(romaine, etc.), with cherry tomatoes and different toppings to differentiate them;
additionally all salads can be topped with warm grilled or crispy chicken. All of its
salads are part of McDonald's move towards creating a healthier image.
The Happy Meal. McDonald's created the concept of a children's meal when it

introduced the first Happy Meal in 1979. The meal includes anentre, a side order,
beverage and a toy. The toy is usually a product tie-in with a movie or
popular television show.
In the U.S., the entre is a choice of hamburger, cheeseburger, or a four or six

piece order of Chicken McNuggets; the sides are a choice of fries or sliced apple
with caramel dip. Milk, chocolate milk, boxed apple juice, and the traditional soda
are choices for drinks.
In the UK, the entre is a choice of hamburger, cheeseburger, four Chicken
McNuggets, or three fish fingers; the sides are a choice of fries, carrot sticks or
sliced apples and grapes. Milk, Tropicana orange juice, apple and
blackcurrant Robinsons Fruit Shoot, milkshakes,water and the traditional soda are
the choices for drinks.

McDonald's line of larger chicken sandwiches (The Classic, Club and Ranch

BLT), which are part of the McDonald's Premium line were introduced in July
2005 as part of McDonald's menu revamp.
The Classic includes Lettuce, Tomato, and Mayo.
The Club also has Lettuce Tomato and Mayo, but also comes with Swiss

cheese and bacon.

The Ranch BLT comes with a creamy ranch sauce, Bacon, Lettuce and Tomato.
All three can be chosen with either crispy or grilled chicken and all are served on

a honey wheat roll.

Deli Choices is a line of deli-style sandwiches that are sold internationally. It is

targeted
at
health-conscious
customers
and
is
available
inAustralia, Austria, Canada, Germany, New Zealand and Britain, and is testing in
the United States. It is similar to the McHero sandwich, sold in parts of the United
States.
McDonald's sells French fries as its primary side order. Until 1967, French fries

were never frozen, but were cut on-site from potatoes and immediately fried. In
international locations, they sell potato wedges, a type of French fry that is thick
cut and wedge shaped and fried onion pieces that are similar to onion rings.
Many
McDonald's
locations
in Wal-Mart stores
offer
freshly-

popped popcorn and soft pretzels in addition to the normal menu.

McLobster - Some McDonald's restaurants in New England and the Canadian

Maritimes offer lobster rolls as a seasonal menu item, called the McLobster.
McCrab - In response to the McLobster, McDonald's along the southern coast of

the Delmarva peninsula (comprising parts of Delaware, Maryland and Virginia)

developed the McCrab sandwich, a McDonald's version of the Chesapeake
crabcake.
Poutine - In Quebec, a Canadian province, McDonald's also
offers Poutine which consists of French fries and cheese curds, covered
withbrown sauce.

Brownie Melt - similar to a Cinnamelt, it is a rich chocolate brownie with

chocolate and white frosting.

McRice - Most McDonald's restaurants in countries in Asia serve the product
due to customers demand. It is just normal rice.

Breakfast:
From 1940 until 1977, McDonald's did not serve breakfast. McDonald's introduced breakfast
foods for the first time in 1977.

Egg mcmuffin:

McDonald's primary breakfast offerings are breakfast sandwiches.

o McMuffins are McDonald's signature breakfast sandwich, first sold at select
restaurants in 1972 as the Egg McMuffin, just 5 years before breakfast
officially went into effect, it consists of a fried egg, Canadian Bacon, and
American cheese on a toasted English muffin. Sausage or bacon McMuffins
are also available.
o McDonald's offers a line of breakfast sandwiches: bagels, biscuits, and a
special type of maple flavoredpancake called McGriddles. All can all be
ordered with sausage, ham or bacon, with an optional choice of cheese and/or
egg. Regional meat offerings include fried chicken, steak and bacon.
o The McDonald's Hamdesal is a new breakfast sandwich which consist of a

slice of ham on pandesal, which can be ordered plain, with eggs or with
cheese. This sandwich is currently available in the Philippines.
There are two styles of breakfast burritos available. The Sausage Burrito is made with

a flour tortilla, sausage, shredded cheese, eggs, onions and peppers. The new
McSkillet wrap adds potatoes and salsa. Chicken and steak variants of the McSkillet
exists in limited areas. Outside the US, the breakfast burrito may be called a breakfast
wrap.
Additional breakfast items include hotcakes; several breakfast platters with eggs, hash

browns and meats or breads; a type of cinnamon roll called a Cinnamon Melt; and
Danish. Biscuits and gravy are available in parts of the southern US.
Waffles with the maple syrup already baked in (similar to the McGriddle pancakes)

were introduced in some markets in 1999.

Hawaii and Guam McDonald's offers local breakfast items such as Spam, Portuguese
sausage and fresh cut pineapple.

Beverages:
(Varies regionally):
McDonald's primary soft drink supplier is the Coca-Cola Company, except in
restaurants which fall under an overall contract with PepsiCo. For example:

the Mall of America and the University of Maryland, College Park Student Union.
In the US and Canada, Cadbury-Schweppessupplies Dr Pepper.
S&D Coffee, Gavina and Kraft supply McDonald's Premium Roast Coffee for

McDonald's US restaurants besides the New England area.Green Mountain Coffee

Roasters supplies Newman's Own branded coffee for McDonald's New England
area restaurants.
Hot and iced tea (supplied by S&D Coffee in the US), hot chocolate,

various juices and other regional beverages are available in various markets.
The McCafe is an umbrella term for lattes, espresso, iced coffee, hot
chocolate, mocha, and other coffee drinks that are sold in several markets
worldwide.

Milkshakes are available in all of McDonald's US and global markets. Permanent

flavors are vanilla, strawberry, and chocolate; regional or seasonal flavors include
Caramel, Coffee, Cherry, Eggnog (Limited Time Offer shake for Christmas),
Banana, Pumpkin (during Halloween), Strawberry Banana, Mango Raspberry,
Honeycomb, Arctic Orange (sherbet), Shamrock Shake (a green, peppermint
Limited Time Offer shake for St. Patrick's Day), Chocolate Mint, and Rolo
(available only in Canada and the UK. This flavoured milkshake was also
available in the Republic of Ireland during the summer of 2007 for a limited time
only). In June 1975, 13 months before the celebration of the United States

Bicentennial, McDonald's introduced a blueberry-flavored shake in order to

advertise "Red, White, and Blueberry Shakes" for independence day celebrations,
and lasting through August of that year. The run was repeated in summer 1976,
but not since.
Beer of different brands (varies locally) is available at McDonald's in France,

Germany, Spain, Portugal, Czech Republic, and Italy.

Irn-Bru is available in most Scottish McDonald's locations.
McDonald's also offers 1% milk, 1% chocolate milk, and apple juice, most often
as replacements for fountain drinks in Happy Meals.

Desserts:

A soft

including sundaes, cones (either vanilla, chocolate (Most McDonalds have

discontinued to sell it, due to it being an "optional" item) or chocolate-dipped),
and as the primary ingredient in the McFlurry. As with many other formulations of
soft serve, cellulose gum is utilized as an extender and thickener.
The McFlurry is a vanilla ice cream dessert that has pieces of candy, fruit

serve ice

cream product

is

available

in

several

forms,

or cookies mixed into it. The mixing blade for the dessert is actually a specially
designed spoon with a hollow handle that attaches to the mixer spindle. The blade
is used once then given to the customer to use to eat the product. Available in most
of its markets.

McDonaldland Cookies: McDonaldland cookies are traditionally available and

are similar to animal crackers, except the shapes of the cookies are of Ronald
McDonald, Grimace, Birdie the Early Bird, the Hamburglar, and the Fry Guys.
Freshly Baked cookies: "Freshly" baked cookies manufactured by Nestl are

available in some markets.

Pies: McDonald's pies are

of apple, cherry and other seasonal or limited-time-only flavors such aspumpkin

pie and haupia pie in Hawaii. In Canada, in the 1970s, blueberry was standard, as
was the Great Fruit Pie. During some seasonal promotions, cherry and strawberry
are an available pie flavor in Canada. Currently McDonald's is selling S'mores pie,
for a limited time. In Thailand and Guam, Taro pie is featured occaisionaly. Other
regional flavors include Coconut, Holiday, and Tuna (all in Guam as limitedtime), and Corn in Japan.
The Fruit and Yogurt Parfait - a mix of frozen strawberries and blueberries and

vanilla yogurt, sold with a package of granola topping.

Smoothies are available in some locations, wild berry, strawberry banana, mango

actually turnovers and

come

in

choice

and strawberry flavors.

Discontinued menu items:

McDogs - McDonald's version of hot dogs.

Hulaburger: A Ray Kroc invention, it featured a slice of pineapple instead of meat.

Originally intended for Roman Catholics who were not allowed to eat meat on
Fridays during Lent. It was test-marketed in 1963.
McFeast: A hamburger with a slice of ham and cheese, in certain markets in the late

1970s. The name McFeast lives on though in the Nordic countries, where a McFeast
has been served since the mid-1980s in Sweden and later introduced to the rest of the
Nordic countries, the McFeast in Sweden contains a quarter pounder patty, lettuce,
modified mayonnaise with lemon juice, onion and tomato. In the rest of the countries,
the McFeast also contains ketchup, but not in Sweden. The same burger was sold
under the name Mega Feast in New Zealand for several years during the 1990s, but
has since been discontinued. The McFeast was sold in Australia until late 2009 and
contained: mustard, ketchup, large onions, McChicken sauce, lettuce, 1 tomato slice,
regular cheese and a 4:1 quarter pounder patty served in a Quarter
Pounder/McChicken Bun.
McDLT: The McDLT (McDonald's Lettuce and Tomato) was sold in a novel form of

packaging. The meat and bottom half of the bun were prepared separately from the
lettuce, tomato, American cheese, pickles, sauces, and top half of the bun. Both were
then packaged into a specially designed two-sided container. The consumer was then

expected to finalize preparation of the sandwich by combining the hot and cool sides
just prior to eating.
McChicken LT (McDonald's Chicken Lettuce and Tomato) was the chicken

version of the McDLT featuring the same two-sided container as the McDLT except
the packaging was yellow instead of white. It was introduced about the same time as
the McDLT in the mid-1980s. The chicken was a grilled, unbreaded chicken breast
placed on the heel of the bun in one of the compartments. The toppings were shredded
lettuce, tomato and mayonnaise assembled on the top half of the bun in the other
compartment. Cheese was an optional addition for an extra US$0.10. The grilled
chicken breast was then basted with a brushing of melted butter. As with the McDLT,
the consumer would finalize preparation of the sandwich by combining the hot and
cool sides just prior to eating. The McChicken LT was discontinued in the Fall of
1987.
Beefsteak Sandwich - test-marketed in New York and other East Coast markets in

1980 and as far west as Chicago were part of a McDonald's "Dinner Menu", offered
only after 4:00 p.m. The Beefsteak Sandwich was essentially an elongated hamburger
of a different quality served on a short French roll, similar to a sub or hero roll.
Packets of steak sauce (A1 sauce in Chicago) were available for the sandwich.
In 1993, McDonald's tested a bigger burger called the Mickey D in about 100

restaurants in the Midwest. Weighing in at 5.3 ounces, it was the largest burger on the
menu, topping the Quarter Pounder and Big Mac, which weigh 3.2 ounces each. The
Mickey D sold in test markets for US$2.29. It had a one-third-pound beef patty on a
crusty roll, Cheddar cheese, diced tomatoes, red onions and a special spicy sauce.
Testing of the Mickey D began in early January 1993. It expanded nationwide during
the summer of 1993 and was discontinued that fall.
Onion Nuggets - introduced at the same time as the Beefsteak Sandwich as the side
item for the Dinner Menu. Onion Nuggets were chopped onions shaped into small
solid pieces, dipped in batter and deep-fried.

McLean Deluxe - A lower-calorie Quarter Pounder-type sandwich (introduced in

1991). This item was otherwise identical to the Big N' Tasty and the McDLT.
Triple Ripple - A mixed cone with strawberry, vanilla, and chocolate, topped with a

plastic top.
Arch Deluxe - An attempt to produce a "luxury" hamburger, promoted by a high-

profile advertising campaign (introduced in 1996). It featured a quarter-pound beef

patty on a potato roll, with leaf lettuce, tomato, red onion, cheese, and a honey
mustard-type sauce; peppered bacon was also offered for an extra charge.
Torta - In 2000, the company released their own version of tortas, a Mexican

sandwich, in southern California on a trial basis.

McStuffin - a pocket sandwich available with various fillings.
Chicken McGrill - Same as the Crispy Chicken, but with a marinated, grilled chicken

breast. Also replaced with a premium chicken sandwich in July 2005, but is still
available in Canada and India.
McGrilled Chicken Classic - A sandwich featuring a grilled chicken breast portion

that was produced before being replaced by the Grilled Chicken Deluxe/Chicken
McGrill.
Spicy Chicken - Chicken breast with spicy breading introduced in 2006
McWraps - Chicken Caesar, Chicken and Garden Salad wraps served toasted in a

thick herb flat bread.

Fried Roast Beef

an Arby's sandwich, the sandwich failed due to the costs of getting roast beef slicers,
no matter how many sandwiches they could sell, it would never turn a profit.
Philly Cheesesteak - Slices of steak and Swiss cheese with onions. Served until

August 2007 at Australian and American McDonalds. This sandwich is still available
in Canada, made with cheese spread instead of Swiss, and with green bell pepper.
Pizza / McPizza - McDonald's has also attempted pizza at various times, with an

Sandwich

Inspired

by

franchisee's

version

of

apple-pielike McPizza and more conventional McDonald's Pizza. A line of personalsized pizzas was first seen in the late 1970s in test-market stores near interstate
highways around Milwaukee and Madison. In British Columbia, Alberta,
Saskatchewan, Manitoba, Ontario, Newfoundland & Labrador, Prince Edward Island,
and Nova Scotia (c. 1992-1997), the pizza originally began as a family-sized pizza
that was brought out to the table by an employee and placed on a raised rack in the
centre of the table. Later it was scaled down to a personal-sized pizza. However,
variations have found their way into some international markets such as India (the
pie-like "Pizza McPuff"). McDonald's also test marketed a 14-inch, round, traditionalstyle pizza in Evansville, Indiana, and nearby Owensboro, Kentucky, in 1989. By

1991, the McDonald's test markets for pizza had grown to over 500 McDonald's
locations before the pizza test was placed on hold.
Hot Dogs - In his 1977 autobiography CEO Ray Kroc prohibited the company from

selling hot dogs, regardless of potential demand, as he regarded them as unhygienic;

however, hot dogs were introduced in the late 1990s at some Midwestern located
stores (at the option of the franchise-holder) as a summer item. UK stores sold hot
dogs during the late nineties on the McChoice menu (later PoundSaver). Also, at least
one American restaurant offered Oscar Mayer hot dogs at some time, notably in
Bethel Park, Pennsylvania, and McDonald's locations at Toronto Metro
Zoo and SkyDome in Toronto offered hot dogs until 1999. In Tokyo locations, hot
dogs were available in 2001, and have been reintroduced for 2009, dubbed the
"McHot Dog."
Bratwurst - For a few years during the 1990s, Johnsonville brand brats were sold in

some US markets for a limited time each fall.

Corn dogs - For a brief time in 2001, Columbus, OH, area McDonald's offered a

multi-pack of mini corn dogs without sticks.

Grilled Chicken Flatbread Sandwich - Grilled chicken strips, lettuce, tomato,

grilled onions, pepper jack cheese, and a creamy herb sauce served wrapped in a
heated flatbread. Served briefly in June 2002, and brought back in December 2002January 2003.
Chicken Platter - A grilled chicken burger served with lettuce and tomato on the

HotCakes tray.
Big 33 or McJordan Special - A quarter pound burger with bacon and special

barbecue sauce named after basketball players Larry Bird and Michael Jordan,
respectively.
Triple-Double Burger - A burger featuring 3 beef patties and 2 slices of cheese,
served on the same 6 inch (15.2 cm) sesame seed roll as theMcRib. This was sold
under the names of local sports stars in at least five markets in the 1990s:
The Jason Kidd Burger - Downtown Phoenix, Arizona, franchises had an

Limited Time Offer burger named after NBA player Jason Kidd, while he
played for the Phoenix Suns.
Boselli Burger - Jacksonville, Florida, franchises also featured the Triple-

Double Burger in 1998, named after Jacksonville Jaguars tackleTony Boselli.

The Michael Dean Perry burger, for the then Cleveland Browns star.
The Rory Sparrow burger was sold in the Sacramento area. It was named

after the Sacramento Kings star.

The Hockey Hero burger, in Canada.

Beef Wennington - A burger solely offered in the Chicago area in 1998-1999, named

after former Chicago Bulls player Bill Wennington. It featured a single patty topped
with cheese, onions, barbecue sauce and a slice of Canadian bacon.
Dinner Menu - After testing pasta in the South in 1989, McDonald's began testing a

pasta-based menu at 40 units across Rochester, N.Y., in September 1991, including

lasagna, fettuccine alfredo, and spaghetti with meatballs. In the early 1990s, a new
Dinner Menu was tested for 612 months at two locations in New York and
Tennessee. It consisted of the above mentioned pizza but also included lasagna,
spaghetti, fettuccine alfredo, and roasted chicken as entrees. The side dishes included
mashed potatoes and gravy and a vegetable medley. For the dessert, it included a
brownie la mode.
Chicken Fajitas - The Chicken Fajitas consisted of a small soft tortilla, a grilled

vegetable medley, and grilled chicken. The fajita was in the traditional thin wrapping
paper and given that way. These are still available in British Columbia, Saskatchewan
and Manitoba at certain locations and at all non-Walmart McDonald's in Ontario.
Salad Shakers - A salad of lettuce, croutons and other vegetable in a tall dome shaped

plastic container. Salad Shakers are still available in Brazil.

Daily Double - Similar to the double cheeseburger, however the toppings were

different. The Daily Double was made with lettuce, tomato, slivered onions, and
mayonnaise. It also had only one slice of cheese, rather than the two slices that are on
the double cheeseburger.
Happy Meal Breakfast - The Happy Meal Breakfast was a meal that was smaller

than the traditional breakfast that lasted from the 1980s to 2009. It was discontinued
by advice of the Nutrition department at the Corporate Headquarters in Oak Brook,
IL, because it wasn't made for kids and so forth. Still sold in Hong Kong.
Grilled Cheese Happy Meal - There was a Happy Meal introduced during the early

part of the 2000s that contained a grilled cheese sandwich. It was discontinued the
same summer it was released but is still sold in some Canadian markets.
Chicken Parmesan Sandwich - A chicken breast covered in bread crumbs and

topped with tomato sauce and mozzarella on a toasted bun.

Mighty Wings - Deep fried spicy chicken wings, large and meaty. McDonald's began

selling these in the mid/late 1990s and stopped selling them in the early 2000s.
Australia sold a limited edition burger called the "Double Beef and Cheese" which

was like a double cheeseburger but with only one slice of cheese.
Australia sold a Lean Beef Burger which contained ketchup, onions, tatsoi lettuce, a
slice of tomato, a slice of cheese, and a beef patty. It was discontinued in late 2009.

Australia sold a burger called the "Deluxe Cheeseburger" which was sold as part of

their "Value Picks" selection. It contained McChicken Sauce, onions, iceburg lettuce,
a slice of cheese, and one 10:1 beef patty. It was discontinued in late 2009.
Derby Burger - A single patty hamburger with American Cheese, lettuce, tomato,
ketchup, mayonnaise, and bacon. It was a regional item sold in the mid-1990's in
Louisville, Kentucky only during the spring to coincide with the Kentucky Derby.
Discontinued in the early 2000s.

COMPETITORS /
MARKETING
ASPECTS

Marketing:
By combining fundamentally sound operational practices with innovative marketing
strategies, Ray
Kroclaid
the
foundation
for
McDonald's
global
success.
Today, McDonald's values transcend borders and cultures. Each and every day, 47 million
consumers worldwide visit McDonald's because they know and love the Golden Arches,
Ronald McDonald and Big Mac sandwiches. From one restaurant in 1955, to more than
31,000 locations in 119 countries, McDonald's has become not only the leading global
foodservice company, but also one of the strongest and most recognized brand names in the
world.
history:
Ray Kroc, at 52 years old, invested his entire life savings to become the exclusive distributor
of a milk shake maker called the Multimixer. Hearing about the McDonald's hamburger stand
in California owned by Dick & Mac McDonald running eight Multimixers at a time, he
packed up his car and headed West. It was 1954. Ray Kroc had never seen so many people
served so quickly. He pitched the idea of opening up several restaurants to the McDonald
brothers, 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?"
Ray Kroc opened the Des Plaines, Illinois restaurant in 1955 and never looked back. In 1965
McDonald's went public with the company's first offering on the stock exchange. In 1967, the
first McDonald's restaurant outside the United States opened in Richmond, British Columbia.
In 1968, the Big Mac sandwich was introduced, followed by the Egg McMuffin breakfast
sandwich in 1973.Milestones and accomplishments have followed ever since.
Today, there are tens of thousands of McDonald's restaurants serving millions of people daily
around the world. The incredible growth and success of McDonald's can be summed up with
the first thought that went through Ray Kroc's mind when he first saw McDonald's: "This will
go anyplace."

A History of McDonald's Advertising Themes

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, including:

McDonald's is Your Kind of Place (1967)

You Deserve a Break Today (1971)
We Do it All for You (1975)
Twoallbeefpattiesspecialsaucelettucecheesepicklesonionsonasesameseedbun (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)
It's a Good Time for the Great Taste of McDonald's (1984)
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
i'm lovin' it (2003)
Consumer Promotions
Promotion

Date

McDonalds "Customer Satisfaction Survey" Sweepstakes

2010

December
2009

Official
Rules

James Cameron's Avatar Experience

December
2009

Website

McDonalds Big Mac Fanatic Contest OFFICIAL RULES

December
2009

Official
Rules

McDonalds "Customer Satisfaction Survey" Sweepstakes

December
2009

Winners

2009 MONOPOLY Game at McDonalds OFFICIAL

RULES

October 2009

Official
Rules

Suppliers:
McDonald's suppliers play a pivotal role in our success, providing quality products at
competitive prices. This philosophy, established by our founder, Ray Kroc, is often described
as a three-legged stool. One of the legs is McDonald's, a second leg is our franchisee partners
and the third leg is our supplier partners. The stool is only as strong as its three legs.
McDonald's Canada works closely with more than 100 Canadian leading suppliers, striving to

source products and supplies locally. Together, suppliers and the Company, along with
franchisees, create new products, help reduce costs and ensure our customers receive the
same great taste of McDonald's in every community across Canada.
In 2005, McDonald's purchased more than $700 million worth of food and paper goods from
Canadian suppliers. This represents more than 90 per cent of McDonald's Canada's total
purchases for that year.
In essence, we shop where our customers shop - our shopping basket is just a bit bigger!
McDonald's buys and serves the same wholesome foods our customers use at home, supplied
by brand name companies Canadians know and trust.
McDonald's suppliers include leading Canadian companies such as Coca-Cola, Danone,
Heinz, McCain, Minute Maid, Mother Parkers, Nestle, Newman's Own, Quaker and Saputo.
Sports sponsorship:
McDonalds in Sports
McDonald's has always stayed close to its customers and to what is important to them. Our
sports involvement is no exception. McDonald's focuses on sports reflective of our own
values: universality, accessibility and team spirit.
McDonald's has been involved in all levels of sports, from the International Olympic Games
to local community soccer clubs, and from professional hockey to local pick-up leagues.
McDonald's is a strong believer of sports, encouraging our children to incorporate physical
activity and sports into their everyday lives.
Over the years, McDonald's Canada has supported a wide range of amateur athletes, and is
still involved with legends like Wayne Gretzky, Silken Laumann and Cassie Campbell, and
Canadian champions Alexandre Despatie and Karen Furneaux.
Olympics
McDonald's first became involved with the Olympics in 1968 by airlifting hamburgers to
athletes competing in Grenoble, France.
McDonald's became an Official Sponsor of the Olympic Games for the first time during the
1976 Olympic Games in Montreal. From 1988 to 1994, McDonald's was the sponsor in
several countries around the world of National Olympic Committees.
In 1996, McDonald's extended its long-standing commitment to the Olympic Movement by
joining the Top Olympic Program (TOP) and becoming a Worldwide Sponsor. This was the
first time in the history of the Games that a branded restaurant operated in the Olympic
Village.
Since that time, McDonald's has provided food service for athletes around the world at the
Summer and Winter Games. In fact, we send our own crew members from around the world

to each Olympic Games to work in our McDonald's restaurant in the Olympic Village serving
athletes.
Hockey
McDonald's is also strongly involved with Canada's number one sport. A long-time partner of
the NHL and the NHLPA, proud sponsor of the CHA and most NHL teams in the country,
and also involved in several junior and minor hockey leagues across the country, McDonald's
brings hockey to Canadians through a series of programs, including our popular hockey
trading cards.
Soccer
McDonald's is also a strong supporter of soccer, as the fastest-growing sport in North
America. On the international front, McDonald's is a sponsor of the FIFA World Cup. On a
Canadian level, McDonald's proudly supports local minor soccer teams in all regions of the
country.
McDonalds cards:
he McDonald's Card is the fast and convenient way to enjoy the great taste of McDonald's.
Its the perfect way to share the gift of McDonalds with people you love. Forget carrying
change, just load, swipe and go! It's the little card that can carry a Big Mac sandwich, our
World Famous Fries, Coca-Cola , or anything else you love from McDonalds .
Pick up your McDonald's Card at participating McDonald's, load the card with your desired
amount and it's ready to use. You can currently load or reload your card and check your
balance at participating McDonald's restaurants* in Canada.
* At selected locations you will not be able to load or reload your card and only $10 preloaded cards will be available for purchase.
2009 McDonalds. /TM Coca-Cola Ltd., used under license.
Sports themed Cards available for a limited time only. Quantities limited vary by design.
While supplies last. At participating McDonalds restaurants in Canada. Ask which cards
are available. Some cards may not be available.

McDonalds strategic marketing mix:

When the Dick and Mac McDonald opened their first restaurant in San Bernardino,
California in 1948, they never could have imagined the extraordinary growth their company
would experience (McDonald's Corporation FAQ, 2005; Armstrong, D., Hemphill, C., Saeed,
M., & Methvin-Terry, J , 2004; Murray, B., n.d.). From modest beginnings, they found a
winning formula selling high quality products quickly and low-cost. It was not until 1955
when Ray Kroc, a salesman from Chicago, became involved in the business
that McDonald's really
began
to
flourish.
Kroc
realized
the
same

successful McDonald'sformula could be exploited throughout the United States and beyond
with the use of franchising (www.mcdonalds.com, n.d.; Murray, B., n.d.). A franchise is an
agreement or license to sell a company's products exclusively in a particular area, or to
operate a business that carries that company's name.
In 1955, Kroc knew that the key to success was through rapid expansion; thus, the best way
to achieve this was through offering franchises. Today, over 70 percent
of McDonald's Restaurants are franchises. In 1986, the first franchised McDonald's opened in
the United Kingdom. Now, there are over 1,150 restaurants, employing more than 49,000
people, of which 34 percent are operated by franchisees (Armstrong, D. et. al., 2004; Nelson,
J., 2003; www.mcdonalds.com, n.d.). Moreover, there are over 30,000 these restaurants in
more than 119 countries, serving over 47 million customers around the world. In 2000
alone, McDonald's served over 16 billion customers. For perspective, that number is
equivalent to providing a lunch and dinner for every man, woman, and child in the
world! McDonald's global sales were over $40 billion, making it by far the largest food
service company in the world (Armstrong, D., et. al., 2004; Nelson, J., 2003;
www.mcdonalds.com, n.d.; Murray, B., n.d.).
Because of the invention of franchising and the development of some of the most creative
marketing and branding campaigns, McDonald's is one of the world's most well-known,
valuable brands holding a leading share in the globally branded, quick service restaurant
segment of the informal dining-out market in virtually every country in which they do
business. As a leader in the fast food industry, McDonald's is often targeted. Some of the
ways McDonald's handles the attacks of the media and competition is by creating a marketing
mix to highlight the positive impacts the organization. McDonald's must keep the strategic
nature of its marketing efforts to stay on top and provide what customers want.

Marketing Mix
Marketing mix must focus on the product, pricing, promotion, and placement of item in order
to make it successful (Ferrel, O. C., & Hartline, M. D., 2005; Newman, E., 2002). Marketing
strategies must feature customer orientation, input, and accessibility in the fight to the top of
the market. McDonald's is no different. An example of this is illustrated with a comparison of
McDonalds and Wendy's. At first glance, they may appear to have roughly the same
marketing mix and target markets. Both are fast food and provide similar products. However,
looking closer, one can recognize that McDonald's primary target market is children ages 311 and their parents. McDonald's understood that the parent was making the purchasing
decision, most likely based on price.
What McDonald's marketing executives did was ingenious. They put a $.50 toy in with the
hamburger, french fries, and drink and gave it a special name, the "Happy Meal". Then
McDonald's marketed the Happy Meal to the kids. If you have you ever asked your child
where to buy a Happy Meal, they will tell you that there is only one place you can buy one,
and that is at Fun McFactsWhen Was Your McDonald's

Favorite Introduced?
1955
Hamburgers, cheeseburgers, fries, shakes, soft drinks, coffee and milk
1963
Filet-O-Fish
1968
Big Mac and Hot Apple Pie
1973
Quarter Pounder and Egg McMuffin
1974
McDonaldland Cookies
1977
Breakfast Menu
1978
Sundaes
1979
Happy Meals
1983
Chicken McNuggets
1986
Biscuit Sandwiches
1987
Alads
1998
McFlurry Desserts
1999
Breakfast Bagels

2000
Chicken McGrill and Crispy Chicken
2001
Big N' Tasty
003
Premium Salads, Newman's Own salad dressings and McGriddles
2004
2004 Chicken Selects Premium Breast Strips
(Nelson, J., 2003)

McDonald's.
McDonald's has Ronald McDonald, playgrounds or PlayPlaces, "Happy Meals," and fun
advertisements with brightly colored "Fry Guys" or the "Cheese Burgerler". Contrastingly,
Wendy's targets a more adult market and the restaurants represent a more mature atmosphere
with carpet floors and Dave Thomas advertisements (Armstrong, D., et. al., 2004; Nelson, J.,
2003; www.mcdonalds.com, n.d.). Wendy's does have children's meals that offer a toy, but
overall the atmosphere attracts a different demographic group. McDonald's restaurants have a
variety of strategies that apply to product, placement, promotion, and price that makes them
one of the most successful, well-recognized organizations in the world.
Product Strategies. McDonald's marketing strategies should be looked at historically in order
to see the larger picture of the firm's success. There have been so many strategies since the
inception of the firm that it is difficult to account for them all, the two most memorable are
the development of the "Golden Arches" and "Ronald McDonald". These two icons have
given customers a mental image of what to look for when they want quality food for a low
price fast.
The firm revolutionized the fast food industry and positioned itself as the market leader with
low-priced, quality food and provided an entertaining atmosphere for the children (2004;
Nelson, J., 2003; www.mcdonalds.com, n.d.; Murray, B., n.d.). These things were what that
the market wanted at the time and the firm answered in spades.
The perceived secret of McDonald's success is the willingness to innovate, even while
striving to achieve consistency in the operation of its many outlets. For example, its breakfast
menu, salads, Chicken McNuggets, and the McLean Deluxe sandwich were all examples of
how the company tried to appeal to a wider range of consumers. The long history of
innovation and experimentation resulted in new profit centers like Chicken McNuggets and
the breakfast menu. Innovation and experimentation also produced some disappointments
like the McLean Deluxe, but inevitably experimentation in limited outlets provides

McDonald's a way to retain its key strengths-quality and consistency-while continuing to

evolve. The use of franchising, again, provides various perspectives that, in turn, lead to
innovation for products and solutions.
Franchisees agree to operate their restaurants in the "McDonald's way" but there remains
room for innovation. Many ideas for new menu items come from franchisees responding to
customer demand. Developing new products is crucial to any business even those that
successfully relied on a limited menu for many years. As consumer tastes change, menu
innovation injects enthusiasm allowing the firm to explore markets previously overlooked or
ignored. The "Egg McMuffin", for example, was introduced in 1971. This item enabled
McDonald's to accommodate consumers of the breakfast market. Filet-o-Fish, Drive-thrus,
and Playlands were all products or concepts developed by franchisees (Armstrong, D., et. al.,
2004; Nelson, J., 2003; www.mcdonalds.com, n.d.). McDonald's tries a few new concepts
simultaneous in different parts of the country to find the most promising new menu item.
Those with the most potential could be rolled out further, while the ineffective ideas could be
left to die quickly. This strategy may be expensive, but the potential to unleash new areas of
growth in a maturing market seems to be right in line with what McDonald's has always
done.
In addition to the local flavors that have been created in the US, McDonald's international
restaurants have been conforming to local, regional, and ethnic tastes, too (Armstrong, D. et.
al, 2004; www.mcdonalds.com, n.d.). In a recent McDonald's case study this was explained
further: "For example, 'Maharaja McBurger' is a vegetarianburger marketed in India. The
special requirements for 'Kosher' foods are followed in Israel. Similarly, McDonald's offers
'Halal' food in Muslim countries such as Saudi Arabia, UAE, Kuwait, Indonesia, Malaysia,
Pakistan, and Bangladesh. During promotions, McDonald's also introduces several other
products. For example, its 'Prosperity Burger' is popular in China, Taiwan, Hong Kong, and
Singapore at the time of the Chinese New Year celebrations. In order to respond to the
growing phenomenon of health consciousness, McDonald's has moved in favor of lean
ground beef, 100% vegetable oil, 1% low-fat milk, low sodium, and low fat (Armstrong, D.
et. Al, 2004).
This product strategy shows that McDonald's is interested in becoming part of the culture and
is looking for ways to appeal to the market internationally.
McDonald's menu is based on five main ingredients: beef, chicken, bread, potatoes and milk.
Their main products are hamburgers, chicken sandwiches, fries, and beverages. In addition,
they serve a variety of breakfast items and desserts. Every McDonald's is uniform; you know
exactly what you will get no matter what store you go in to (www.mcdonalds.com, n.d.).
Although McDonald's has thousands of restaurants around the world, it standardizes menus
and operating procedures in these restaurants to insure consistency throughout.
To maintain consistency in the current menu while the firm tests new products to expand the
product line, McDonald's relies on test marketing new menu items in pilot locations
(Armstrong, D., et. al., 2004; Nelson, J., 2003; www.mcdonalds.com, n.d.). New products are
rigorously market tested so that the franchisee will have a reasonable idea of its potential

before it is added to the menu. The introduction of new products, which have already been
researched and tested, considerably reduces the risk for the franchisee. The franchisees
additionally benefit from the extensive national market research programs that assess
consumer attitudes and perceptions (Armstrong, D., et. al., 2004; Nelson, J., 2003;
www.mcdonalds.com, n.d.). What products do they want to buy and at what price? How are
they performing compared to their competitors?
This approach allows the firm to identify which items are likely to prove popular with
consumers while ensuring that the company can deliver new products with consistent quality
nationwide (Armstrong, D., et. al., 2004; Nelson, J., 2003; www.mcdonalds.com, n.d.).
McDonald's already has a history of doing this so it will not require major changes to its
operations strategy-at least initially. If the product line-up gets too large, then the task of
maintaining quality becomes exponentially harder. The trick is to consider how to eliminate
some of the existing menu items when you introduce new ones, while making sure the staff is
fully trained in how to execute these products successfully.
McDonald's serves the world some of its favorite foods - Fries, Big Mac, Quarter Pounder,
Chicken McNuggets, and the Egg McMuffin (Armstrong, D., et. al., 2004; Nelson, J., 2003;
www.mcdonalds.com, n.d.). To this end, McDonald's had done well with a limited product
range. Declining per unit sales and competitors gaining ground, may indicate that
McDonald's menu needs a face-lift. One way to do that is by inserting a couple of new, highly
promoted menu items. This would refresh the product menu and provide new, satisfying
experience for dinner consumers.
McDonald's has the opportunity to apply its core competencies of rigorous adherence to
quality standards and continual promotion of experimentation in new venues (Armstrong, D.,
et. al., 2004; Nelson, J., 2003; www.mcdonalds.com, n.d.). Imagine McDonald's opening a
new casual dining restaurant under a different name, like Mac's, and sliding away from
the fast food industry. The firm could franchise that concept nationwide and target the market
of consumers who have grown past fast food. McDonald's, or Mac's, meticulous approach to
operations would ensure that consumers everywhere would experience the same dining
experience at each restaurant. This consistency presents a wonderful advantage for consumers
who don't want to be surprised with a bad meal. Consumers would expect the same as they do
currently with McDonald's-the Big Mac inMinneapolis is the same as the one in Beijing
(Armstrong, D., et. al., 2004; www.mcdonalds.com, n.d.).
Placement Strategies. McDonald's focuses on store placement and are always looking for
the best locations. This strategy created some weakness in the last 10 years because it seemed
that too many stores were put in some areas, cannibalizing sales from the other McDonald's
(Armstrong, D., et. al., 2004; Nelson, J., 2003.). The company has also made convenience a
focus, not only through how fast it serves customers, but also in the location of its outlets.
Freestanding restaurants are positioned so that you are never more than a few minutes away
by foot in the city or by car in the suburbs. In addition, McDonald's is tucking restaurants into
schools, stores, and more (Armstrong, D., et. al., 2004; Nelson, J., 2003;
www.mcdonalds.com, n.d.).

Because McDonald's has pretty well saturated the U.S. market, it's only real opportunities for
growth lie abroad, where the competition is not so cutthroat or by introducing new restaurant
concepts under brands other than McDonald's. The organization's overall objective is to
increase market share. In this instance, the focus is purely on localization with different
strategies for different countries. Pricing could not possibly be standardized across the globe
without alienating many countries with poorer economies, thus defeating the initial objective.
McDonald's set an appropriate price for their product by looking at its competitors in each
country. McDonald's is attempting to localize marketing communications due to the
realization that it couldn't possibly appeal to all countries at the same time. The firm sees the
necessity to "brand globally, act locally". For example, in Chinait was recognized that
advertising on television would be a waste of money because commercials between programs
are generally ignored. Instead, McDonald's uses newspapers and magazines to promote its
image. Similarly, in East Asia, McDonald's targets children in order to gain optimum results.
Of course, the ultimate message (brand) is the same; the medium is what is strategically
modified.
Pricing Strategies. McDonald's strategy is to offer quality food quickly to customers at a
good value (www.mcdonalds.com, n.d.). The pricing structure for McDonald's over years has
supported this message. The company strives to differentiate itself from other fast
food restaurants by offering a variety of menu items that appeal to a variety of people from
those who just want great hamburgers, to those who just want a quick healthy meal.
McDonald's differentiates itself by offering a dollar menu, combination meals, and a free toy
with Happy Meals (Armstrong, D. et. al., 2004; www.mcdonalds.com, n.d.).
McDonald's, over the years, has also ran many promostions to increase traffic or product
sales. For instance, the most recent roll out has been the 2004 Chicken Selects premium
Breast Strips. Right now, you can go to your local McDonald's and "try them free." With this
new product is offered a variation of the "usual" sauces for the Chicken Nuggest - a
Chipotle Barbeque sauce is most commonly advertised (www.mcdonalds.com, n.d.). Another
promotion was the "Campaign 55" where diners could buy a featured sandwich, like the Big
Mac in April, for 55 cents when purchased with fries and a drink. This campaign wasn't as
successful as the fast foodgiant found would have hoped (Commins, P., 1997).
Many other promotions with food, toys, collectibles, videos, and other prizes have been
used by McDonald's restaurants over the past 50-plus years. These promotions, some better
than others, have helped to keep McDonald's growing and gaining in the fast food world.
Value has been an area in which McDonald's has strengthened over time, not only with
customers, but within their distribution, channel management, and logistics strategies as well
(Armstrong, D., et. al., 2004; Nelson, J., 2003; www.mcdonalds.com, n.d.).
Distribution, Channel Management, and Logistics. A company the size of McDonald's
requires the value chain to be increasingly important. Not only does McDonald's want to add
value for the customers, but also the firm looks for ways to improve the operations that
makes McDonald's a more efficient business.

McDonald's is constantly striving to add value to the firm for their customers, and in doing
so, the firm has created efficiency in getting the products to the customers quickly and as
fresh as possible. McDonald's is constantly looking for ways to improve and is successful
because of the continuous updates on equipment, improvement on serving time, and in
finding more ways than one to satisfy customers (Armstrong, D. et. al., 2004; Nelson, J.,
2003; www.mcdonalds.com, n.d.). McDonald's constantly works to satisfy customers by
developing new products to appeal to customers of various regions, and backgrounds.
Recently, McDonald's introduced a variety of salads to appeal to the healthier conscious
customers. In addition, they alter their menu to fit into various countries cultures. For
example, they offer beer, a cultural staple, to consumers who frequent the restaurants in
Germany.
McDonald's value chain is unique because of the rare need to depend upon other companies
for supplies. The firm owns nearly every portion of the value chain including warehouses,
delivery trucks, and the real estatewhere their restaurants built (Armstrong, D. et. al., 2004;
www.mcdonalds.com, n.d.). Restaurant chains encounter many obstacles in maintaining their
business, but the most common obstacle is the logistical planning in getting food and
supplies. McDonald's established warehouses within a reasonable proximity to all of their
restaurants to solve some of the logistical problems it had experienced. This, along with
owning the warehouses allows the restaurants to get all of the needs met in one shipment and
not deal with multiple suppliers (Armstrong, D. et. al., 2004; www.mcdonalds.com, n.d.).
This, of course, does not eliminate the need for suppliers, but it has eliminated the need to
coordinate paper products deliveries with meat deliveries.
Suppliers are a critical part of the value chain. McDonald's considers product quality to be
the most important aspect and sets its standards among the highest in the food industry built
(Armstrong, D. et. al., 2004; www.mcdonalds.com, n.d.). The firm's mutual effort with
suppliers and franchisees to develop and improve products and production techniques enables
McDonald's to meet the high quality standards; thus sharing in the growth and success of the
restaurant. This growth and continued success, and the elimination of too many
intermediaries, has allowed McDonald's to pass that value along to the customer. Every dollar
spent in getting the goods to the customer causes prices to rise (Ferrel, O. C. & Hartline, M.
D., 2005; Bateman, T. S. & Snell, S. A., 2004; Newman, E., 2002; Mansell, J. (n.d.)).
Promotion Strategies. McDonald's knows that some customers go to its stores to take a
quick break from their day's activities and not because McDonald's made the food ten
seconds faster than their competitors could. Therefore, McDonald's marketing executives
then put together the phrase, "Have you had your break today?" They continued to develop
this idea with "You deserve a break today," and now are in the "I'm Lovin' It!" mantra. "I'm
Lovin' It!" doesn't seem to have as much punch as the earlier catch phrase, which still seems
to be the favorite. McDonald's sees the use of these catch phrases and the use of the Golden
Arches as a very successful way of differentiating the restaurants from other fast food
competitors. McDonald's has taken price competition out of the picture because the customer
feels they have gotten quality, convenience, service, and value - and McDonald's still makes
you feel like you are getting a break in your hectic day. Creating catch phrases are only one

kind of promotion, and McDonald's uses many kinds of promotions to keep the restaurants at
the top of the industry.
With the rise of health consciousness it has become more difficult McDonald's to compete
because their reputation brands them as cheap food served fast (Nelson, J., 2003;
www.mcdonalds.com, n.d.). The firm's response to obesity claims against the organization
and other unfavorable public sediment is to add healthier items to their menu and promote
and offer health-conscious alternatives to the "would you like fries with that" legacy. In
addition, McDonald's has modernized their advertisements, pamphlets, and website to include
nutritional information and addressing diet restrictions (McDonald's Corporation FAQ, 2005;
www.mcdonalds.com, n.d.). Breaking the unhealthy association is difficult on its own, but
with media and movies such as "Supersize Me" adding to the fray, McDonald's has had to
look for alternative strategies to keep consumers happy.
Another promotional strategy McDonald's uses is the huge investment in sponsorship. This is
also a central part of the image building process. Sponsorship of the 1998 football World
Cup, the Premier League and the European Championships increases awareness of
McDonald's brand (McDonald's Corporation FAQ, 2005; www.mcdonalds.com, n.d.).
However, McDonald's still follows Ray Kroc's community beliefs today, supporting the Tidy
Britain Group and the Groundwork Trust, as well as local community activities. McDonald's
has become a known community partner with Ronald McDonald Houses across the nation for
the use of families whose children are hospitalized and getting treatment far from home
(McDonald's Corporation FAQ, 2005; www.mcdonalds.com, n.d.). This organization has
created an image of partnership and community investment with these and other kinds of
philanthropic activities (www.mcdonalds.com, n.d.).
Rob Leavitt, ITSMA e-zine editor, reported in the June 2004 edition that Larry Light,
McDonald's Chief Marketing Officer, railed against those claiming brands must have only
one identity that appeals to increasingly fragmented audiences. Leavitt also reported,
"Identifying one brand positioning, communicating it in a repetitive manner, is old-fashioned,
out-of-date, out-of-touch brand communication,'' he said. "A brand is multidimensional. No
one communication, no one message can tell a whole brand story.'' According to Light,
marketers that continue to follow a simplistic mass marketing approach are committing
"brand suicide". (Leavitt, R., 2004).
Determining which way to market McDonald's and its products is a very important decision
that can either cause products to fail or take flight. These same decisions must be made in
regards to the marketing of the company as a whole. Strategy is the name of this game.
Leaders Become Targets
Fast Food Wars. McDonald's has been the long-time leader in fast food wars since its
inception, but in the early 1990's, the restaurant came to a crossroads. Domestically, sales and
revenues began to plateau as competitors began eating into its margins through promotions
and value pricing strategies. In addition to its traditional rivals, Burger King, Wendy's, and
Taco Bell, the restaurant encountered new challengers such as Sonic, Rally's, Olive Garden,

and Chili's (Armstrong, D., et. al., 2004; Nelson, J., 2003; www.mcdonalds.com, n.d.).
Restaurants like Sonic and Rally's used a "back-to-basics" approach of quickly serving up
burgers and limiting their menus to compete with the "Golden Arches" (Nelson, J., 2003).
Olive Garden and Chili's restaurants became effective competitors in the quick service field
by appealing to diners looking for something a little more enticing and in taking dollars away
from McDonald's. McDonald's remained steady in fast food. The firm had not altered its
menu to accommodate families looking for a more upscale dining experience.
Social Factors. In addition to these fast food wars, the late 1980s proved more frustrating to
McDonald's. The Golden Arches was the beneficiary of criticism from environmentalists who
complain about the amount of litter and solid waste the restaurant generated each day.
McDonald's recognized the importance of maintaining public favor regarding the
environment. To counter some of this criticism, McDonald's surveyed consumers to find that
some respondents would not purchase McDonald's products because of the unknown effect
the product packaging would have on the environment. One 1990 study found that "each
McDonald's generated 238 pounds of on-premise solid waste per day" (Nelson, J., 2003). In
response, McDonald's collaborated with the Environmental Defense Fund (EDF) to explore
new ways to make its operations more environmentally friendly (Armstrong, D., et. al., 2004;
Nelson, J., 2003; www.mcdonalds.com, n.d.). To improve the public opinion on the
restaurant, it is no surprise that McDonald's sought a way to reduce its solid waste while
providing a more environmentally acceptable face to the public.
Together, EDF and McDonald's considered its impact on a wide range of stakeholderscustomers, suppliers, franchisees, and the environment. Some of the solutions that came from
the collaboration include the use of brown paper bags, high in recycled content; solicitation
of suppliers to produce corrugated boxes with more recycled content; and leaving behind the
polystyrene clamshell containers in favor of new paper-based wraps (Nelson, J., 2003;
www.mcdonalds.com, n.d.). Any successes, even if only incremental improvements, would
have major ramifications because of the sheer size of McDonald's operations. McDonald's
partnership with EDF will continue to pay off with the growing concern for ecology. It makes
sense to be a good corporate citizen and receive all the accolades that go along with such an
alliance. This partnership has also helped with the bottom line by reducing shipping costs for
supplies as well as garbage removal fees (Nelson, J., 2003; www.mcdonalds.com, n.d.).
Conclusion
McDonald's marketing mix is strategic because of the diverse approaches that are used. First,
in identifying the "four P's" of marketing addressed earlier (product, price, promotion, and
placement), research shows that McDonald's is very careful in making decisions that effect
each area and/or how each area effects the other (Ferrel, O. C. & Hartline, M. D., 2005;
www.mcdonalds.com, n.d.). McDonald's is concerned about how the firm will fulfill the
needs and wants of its customers and in the activities associated with maintaining
therelationships with its stakeholders. McDonald's stakeholders include customers,
franchisees, suppliers, employees, and the local communities surrounding them.

McDonald's has shown care for customers through the decisions to add more healthful foods
to the menus, by changing how products are packaged or how foods are prepared, and by
philanthropic contributions and sponsorships. The restaurant has developed competitive
advantages in the industry of serving quality fast food at a low cost. In addition to these
decisions, the development of the Golden Arches or Ronald McDonald has provided
consumers with memorable icons that are associated with quality, service, and value, just like
the McDonald brothers and Ray Kroc intended.
McDonald's faces some difficult challenges in moving away from the fast food king to a
more health conscious provider for customers who care about what they eat. The keys to its
future success will be maintaining its core strengths-an unwavering focus on quality and
consistency-while carefully experimenting with new options. The company's environmental
efforts, while important, should not overshadow its marketing initiatives. Though there are
many opportunities for this fast food giant, McDonald's must keep the strategic nature of its
marketing efforts to stay on top and provide what customers want.

The 7 Ps of Marketing
Once you've developed your marketing strategy, there is a "Seven P Formula" you should use
to continually evaluate and reevaluate your business activities. These seven are: product,
price, promotion, place, packaging, positioning and people. As products, markets, customers
and needs change rapidly, you must continually revisit these seven Ps to make sure you're on
track and achieving the maximum results possible for you in today's marketplace.

Product
To begin with, develop the habit of looking at your product as though you were an outside
marketing consultant brought in to help your company decide whether or not it's in the right
business at this time. Ask critical questions such as, "Is your current product or service, or
mix of products and services, appropriate and suitable for the market and the customers of
today?"
Whenever you're having difficulty selling as much of your products or services as you'd like,
you need to develop the habit of assessing your business honestly and asking, "Are these the
right products or services for our customers today?"
Is there any product or service you're offering today that, knowing what you now know, you
would not bring out again today? Compared to your competitors, is your product or service
superior in some significant way to anything else available? If so, what is it? If not, could you
develop an area of superiority? Should you be offering this product or service at all in the
current marketplace?

Prices:
The second P in the formula is price. Develop the habit of continually examining and
reexamining the prices of the products and services you sell to make sure they're still
appropriate to the realities of the current market. Sometimes you need to lower your prices.
At other times, it may be appropriate to raise your prices. Many companies have found that
the profitability of certain products or services doesn't justify the amount of effort and
resources that go into producing them. By raising their prices, they may lose a percentage of
their customers, but the remaining percentage generates a profit on every sale. Could this be
appropriate for you?
Sometimes you need to change your terms and conditions of sale. Sometimes, by spreading
your price over a series of months or years, you can sell far more than you are today, and the
interest you can charge will more than make up for the delay in cash receipts. Sometimes you
can combine products and services together with special offers and special promotions.
Sometimes you can include free additional items that cost you very little to produce but make
your prices appear far more attractive to your customers.
In business, as in nature, whenever you experience resistance or frustration in any part of
your sales or marketing activities, be open to revisiting that area. Be open to the possibility
that your current pricing structure is not ideal for the current market. Be open to the need to
revise your prices, if necessary, to remain competitive, to survive and thrive in a fastchanging marketplace.

Promotion:
The third habit in marketing and sales is to think in terms of promotion all the time.
Promotion includes all the ways you tell your customers about your products or services and
how you then market and sell to them.
Small changes in the way you promote and sell your products can lead to dramatic changes in
your results. Even small changes in your advertising can lead immediately to higher sales.
Experienced copywriters can often increase the response rate from advertising by 500 percent
by simply changing the headline on an advertisement.
Large and small companies in every industry continually experiment with different ways of
advertising, promoting, and selling their products and services. And here is the rule:
Whatever method of marketing and sales you're using today will, sooner or later, stop
working. Sometimes it will stop working for reasons you know, and sometimes it will be for
reasons you don't know. In either case, your methods of marketing and sales will eventually
stop working, and you'll have to develop new sales, marketing and advertising approaches,
offerings, and strategies.

Place:
The fourth P in the marketing mix is the place where your product or service is actually sold.
Develop the habit of reviewing and reflecting upon the exact location where the customer
meets the salesperson. Sometimes a change in place can lead to a rapid increase in sales.
You can sell your product in many different places. Some companies use direct selling,
sending their salespeople out to personally meet and talk with the prospect. Some sell by

telemarketing. Some sell through catalogs or mail order. Some sell at trade shows or in retail
establishments. Some sell in joint ventures with other similar products or services. Some
companies use manufacturers' representatives or distributors. Many companies use a
combination of one or more of these methods.
In each case, the entrepreneur must make the right choice about the very best location or
place for the customer to receive essential buying information on the product or service
needed to make a buying decision. What is yours? In what way should you change it? Where
else could you offer your products or services?

Packaging:
The fifth element in the marketing mix is the packaging. Develop the habit of standing back
and looking at every visual element in the packaging of your product or service through the
eyes of a critical prospect. Remember, people form their first impression about you within the
first 30 seconds of seeing you or some element of your company. Small improvements in the
packaging or external appearance of your product or service can often lead to completely
different reactions from your customers.
With regard to the packaging of your company, your product or service, you should think in
terms of everything that the customer sees from the first moment of contact with your
company all the way through the purchasing process.
Packaging refers to the way your product or service appears from the outside. Packaging also
refers to your people and how they dress and groom. It refers to your offices, your waiting
rooms, your brochures, your correspondence and every single visual element about your
company. Everything counts. Everything helps or hurts. Everything affects your customer's
confidence about dealing with you.
When IBM started under the guidance of Thomas J. Watson, Sr., he very early concluded that
fully 99 percent of the visual contact a customer would have with his company, at least
initially, would be represented by IBM salespeople. Because IBM was selling relatively
sophisticated high-tech equipment, Watson knew customers would have to have a high level
of confidence in the credibility of the salesperson. He therefore instituted a dress and
grooming code that became an inflexible set of rules and regulations within IBM.
As a result, every salesperson was required to look like a professional in every respect. Every
element of their clothing-including dark suits, dark ties, white shirts, conservative hairstyles,
shined shoes, clean fingernails-and every other feature gave off the message of
professionalism and competence. One of the highest compliments a person could receive was,
"You look like someone from IBM."

Positioning:
The next P is positioning. You should develop the habit of thinking continually about how
you are positioned in the hearts and minds of your customers. How do people think and talk
about you when you're not present? How do people think and talk about your company?
What positioning do you have in your market, in terms of the specific words people use when
they describe you and your offerings to others?

In the famous book by Al Reis and Jack Trout, Positioning, the authors point out that how
you are seen and thought about by your customers is the critical determinant of your success
in a competitive marketplace. Attribution theory says that most customers think of you in
terms of a single attribute, either positive or negative. Sometimes it's "service." Sometimes
it's "excellence." Sometimes it's "quality engineering," as with Mercedes Benz. Sometimes
it's "the ultimate driving machine," as with BMW. In every case, how deeply entrenched that
attribute is in the minds of your customers and prospective customers determines how readily
they'll buy your product or service and how much they'll pay.
Develop the habit of thinking about how you could improve your positioning. Begin by
determining the position you'd like to have. If you could create the ideal impression in the
hearts and minds of your customers, what would it be? What would you have to do in every
customer interaction to get your customers to think and talk about in that specific way? What
changes do you need to make in the way interact with customers today in order to be seen as
the very best choice for your customers of tomorrow?

People:
The final P of the marketing mix is people. Develop the habit of thinking in terms of the
people inside and outside of your business who are responsible for every element of your
sales and marketing strategy and activities.
It's amazing how many entrepreneurs and businesspeople will work extremely hard to think
through every element of the marketing strategy and the marketing mix, and then pay little
attention to the fact that every single decision and policy has to be carried out by a specific
person, in a specific way. Your ability to select, recruit, hire and retain the proper people, with
the skills and abilities to do the job you need to have done, is more important than everything
else put together.
In his best-selling book, Good to Great, Jim Collins discovered the most important factor
applied by the best companies was that they first of all "got the right people on the bus, and
the wrong people off the bus." Once these companies had hired the right people, the second
step was to "get the right people in the right seats on the bus."
To be successful in business, you must develop the habit of thinking in terms of exactly who
is going to carry out each task and responsibility. In many cases, it's not possible to move
forward until you can attract and put the right person into the right position. Many of the best
business plans ever developed sit on shelves today because the [people who created them]
could not find the key people who could execute those plans.

THE 7 P's Of Mc DONALDS'

PRODUCT:
Mc Donalds product portfolio primarily comprises of vegetarian and non-vegetarian
burgers. The vegetarian burgers like Veg surprise, salad sandwich, Mc Aloo Tikki Burger, Mc
veggie burger are offered to the customers. Non-vegetatarian burgers include Chicken Mc
grill, Mc chicken burger, Fliet of fish and chicken maharaja burger. Along with these frenchfries, veg pizza mc puff, wrap chicken Mexican, wrap paneer salsa, potato wedges, soft serve

pineapple and choclate ice creams, Mc swirl soft drinks, coffee and Mc shakes are also
offered to increase the variety in the product portfolio. Mc Donalds also provides mean
combos with medium fries and medium soft drink, happy mean with small soft drink, econo
meals with small soft drink and value meals with potato wedges and small soft drink.

PRICE:
Mc Donalds vegetarian burgers are priced between Rs 20 and Rs 48. Wrap paneer salsa is
priced at Rs 45-50. The non vegetarian burgers are priced between Rs 30 and Rs 60. Wrap
chicken Mexican is priced at Rs 55. Medium French fries are priced at Rs 28, potato wedges
at Rs 20, soft serves at Rs 35, mc swirl at Rs 12, medium soft drinks at Rs 20 and medium
shakes at Rs 45.

PROMOTION:
At Mc Donalds the prime focus is on targeting children. In happy meals too which are
targeted at children small toys are given along with the meal. Apart from this, various
schemes for winning prices by way of lucky draws and also scratch cards are given when an
order is placed on the various mean combos. In fact, the various econo meals and value meals
also signal to the customer that buying separate items results in greater value for money for
the customer.

PLACE:
Mc Donalds outlets are very evenly spread throughout the NCR region. Mc Donalds does not
offer home delivery but its outlets are very readily accessible. Mc Donalds also offers take
away drive through facilities.

PEOPLE:
The employees in Mc Donalds have a standard uniform and Mc Donalds specially focuses on
friendly and prompt service to its customers from their employees.

PROCESS:
The food manufacturing process at Mc Donalds is completely transparent i.e. the whole
process is visible to the customers. In fact, the fast food joint allows its customers to view and
judge the hygienic standards at Mc Donalds by allowing them to enter the area where the
process takes place. The customers are invited to check the ingredients used in food.

PHYSICAL EVIDENCE:
Mc Donalds focuses on clean and hygienic interiors of is outlets and at the same time the
interiors are attractive and the fast food joint maintains a proper decorum at its joints.

McDonalds Vs Burger King Who's Better:

You knew this comparison was coming eventually and should we compare it since we all
know that McDonald's is doing better than Burger King? Although that is true in numbers
McDonalds Vs Burger King is more than just profits. Consider this Burger King arrived

much later on the fast food market and McDonald was the first fast food franchise ever
invented. So how is it possible for Burger King to go up against history itself? Surprisingly
they did and even though McDonald is still the best fast food franchise Burger King is
trailing by not too far. Does that mean the edge McDonald had over Burger King is fading?
I strongly doubt that because both fast food restaurants a very competitive and strive to
provide the best burgers and services to their customers. It is very impressive for Burger King
to have reached McDonald in a competitive way because McDonald has always been setting
the first that so how does somebody who follows the steps can become so important to the
eyes of the customers. Lower prices maybe? I strongly doubt so because in a competitive
market such as this one price is already at its lowest possible. Lower than that means they
would be selling for free.
One of the reasons why Burger King was so successful includes many factors but one of them
was location. One of the best way to explain it is Burger King has always found outlets where
there is a large concentration of people but that wasn't there only strategy because they also
had the great idea of going head-to-head with McDonald across the street. By setting outlets
in front or near a McDonald outlet they were guaranteeing visibility of their franchise.
McDonald can come up with new marketing ploys and new food but it couldn't have the
advantage of location like Burger King.
Remember both of them are fast food franchises so for the common customer the closest
franchise is enough. In most cases people who have ate at McDonald's have tried Burger
King and people who ate at Burger King have tried McDonald and that's completely normal.
At the end of the day there isn't much difference except for the name of every meals. If you
look at it both franchises have the same types of combo which includes a hamburger, fries
and a soft drink. The process may vary a little bit but in general you'll be eating the same
thing at both outlets.
McDonalds Vs Burger King has been going on for a long time now and it's completely
normal for the best franchise to be competing against the second-best franchise in order to
keep its champion title. But don't forget there are far more franchises out there so both
McDonald and Burger King have other competition to worry about such as Wendy's, Taco
Bell, A&W and much more.

Quality of management team

How is implemented the Quality System?

Quality is the totality of features and characteristics of a product or service that bear on its ability
to satisfy stated or implied needs.

Quality Service

The Employees
The Food
The Restaurant

Quality Control

The Employees :

Are at work on time , are neatly dressed , and are clean

Must make sure that the customers constantly receive safe food , which implies that
the employees must wash their hands often to remain clean
Must follow certain Standard Operational Procedures , so the customers always
receive exceptional quality and service (like using gloves)
Employees rely on teamwork and high energy to get the job done
Keep the smile up when serving
o
The Food :

Meat and fries have to be properly fried

Vegetables are thoroughly washed when used in the food

o
The Restaurant:
Should be clean
Have to be tidy , sparkling and spotlessly clean
Food delivers fast, accurate and friendly service
o
Quality Control McDonald's pledge to its customers
o
Quality, Service & Cleanliness (QSC) is our Pledge: QSC represents
McDonald's 100% commitment, that of its employees & suppliers to deliver the best &
safest quality to its 47 million customers visiting over 30,000 stores in 121 countries around the
world.
o McDonald's thrives on customers feedback to continuously improve quality & service.
o
Quality at the Source : some of which reach to over 40 years encouraging an everhigher industry standards.
o Continuous Training : offer training to McDonald's staff as well as suppliers' staff.
o Stay in Touch With Scientific Development : maintain close ties with the members of the
scientific community on food safety & quality to stay abreast of new developments.
o McDonalds employees are trained to prepare and present meals according to very specific
procedures that are strictly enforced. For example, a ten-minute holding time for sandwiches
ensures maximum quality and freshness to each customer.

McDonalds even designs our restaurants to meet the ultimate in hygiene

specifications , including hand-washing procedures. In addition, the staff is also trained to
maintain the right procedures, food quality and safety, especially in the preparation and handling
of raw and cooked products.

Face-to-face management
Wilson is a board-elected senior vice-president of the Coca-Cola Company, where he serves as
president of the global McDonald's division, and is also co-author of the book Managing Brand You.

He observes: "People are starved for actual human interactions, and quickie digital contacts
make poor substitutes. In today's fast-paced digital world, face-to-face interactions are more
important than ever."
Information relayed digitally can be unreliable or misleading, believes Wilson: "Grammatical
errors abound, and redirected e-mails with completely incorrect information or aimless
oration are sent around like free candy," he explains. "This clutter drives incalculable
productivity loss for any organisation."
However, Wilson insists face-to-face interactions allow people in the workplace to discuss
issues thoroughly and are more conducive to identifying and addressing potential problems
and solutions as well as discovering alternative approaches. What's more, nonverbal cues can
be read during real-life meetings to assess true reactions to an idea or opinions.
Wilson adds: "Creativity can be explored during such discussions, and decisions have a
greater probability of moving ahead successfully. Ambiguity can be sorted out immediately,
resulting in alignment of priorities and direction. None of this is so easy to do in digital
space."
Managers who excel in face-to-face interaction are good listeners and are able to understand
or empathise with their colleagues.
Wilson summarises by saying: "While it is easy to click and send, face-to-face interactions
can have great impact. They lead to more consensual decisions and the building of trust and
high-performance teams. It all begins and ends with the people. People who do not have
regular and credible interactions with others are missing the potential of personal growth."

Corporate responsibility of McDonalds:

In Jan. 2010, McDonald's released the latest Corporate Responsibility Report to share
information about what we are doing to address issues that are important to the well-being of
our customers and our communities.

Balanced, active life style:

McDonalds is an industry leader on the well-being

issues our customers care about. Helping people
achieve the right balance between the energy they
consume as food and the energy they burn in physical
activity calls for involvement and collaboration by
many
sectors.
We have a responsibility to lead. But more
important, we can and will make a difference. Jim
Skinner, Vice Chairman & CEO

McDonald's Passport to Play

Chicago school children playingrayuela, a
Colombian game

Passport to Play
To help motivate and engage children in physical activity, McDonalds has developed a
unique physical education curriculumPassport to Play. The curriculum has been used by PE
teachers in 40,000 elementary schools across the country. With the guide and materials we
provide, approximately eleven million children in grades 35 will learn about and play games
from 15 countries around the world, including Australia, Congo, France, Mexico, India, and
the Netherlands.
Passport to Play is one of the many initiatives we have launched to support balanced, active
lifestyles in the U.S. and around the world. The curriculum was reviewed by teachers,
physical activity experts, district curriculum directors, and experts at Baylor College of
Medicine in Houston. It is supported by the United States Olympic Committee, the National
Association for Sport and Physical Education, Scripps Reasearch Institute, Produce for Better
Health Foundation and the MidContinental Research Education Laboratory (McREL). For
more information on Passport to Play, please visit www.passport2play.com.

Nutrition Information Initiative

As part of our global commitment to promote balanced, active lifestyles, much of
McDonald's food packaging gives our customers essential nutrition information in an easy-tounderstand icon and bar chart format. This is a first for our industry.

Produce for Better Healths Campaign for Children's Health

Since 2004, Produce for Better Health has been a valued resource to McDonalds by helping
further our commitment to providing customers with a wide menu variety and quality choices
that lend well to Balanced, Active Lifestyles. Over the past two years, we have worked with

PBH to incorporate their Fruit and Veggies - More Matters brand messages into programs
and communications. Fruits and Veggies - More Matters is a health initiative that encourages
consumers to add MORE fruits and vegetables to every eating occasion. To visit their web
site,
please
go
to www.fruitsandveggiesmorematters.org
In 2008, McDonalds became a sponsor of Produce for Better Healths Campaign for
Children's Health, a program that encourages the nation's children to eat more fruits and
vegetables for better health. PBH's goal for the Campaign for Children's Health is to raise $3
million in funding to be used for programs to provide parental know-how, resources, and
motivation that will make increased fruit and vegetable consumption a reality among our
children today.

Balanced, Active Lifestyles Overview

On an ongoing basis, we support balanced, active lifestyles by:

Providing nutrition facts for your favorite McDonald's Meal at Bag a McMeal.

Maintaining strict standards of quality and safety, so that our customers can feel
comfortable fitting any of our food products into their personal eating styles.

Serving a variety of nutritious, high-quality food products and portion sizes,

including premium salads, fruit & yogurt parfait, and apple dippers in Happy Meal
choices.

Providing nutrition information to help our customers make smart choices that
address their individual lifestyle needs.

Informing our customers about energy balance and fun, practical ways to
incorporate physical activity into their everyday lives.

Motivating kids to be active by engaging Ronald McDonald as our ambassador for

play and activity.

Supporting local youth sports programs.

Sponsoring major sports competitions, including the Olympics and the FIFA World
Cup soccer matches.

Community
Giving Back.Our founder, Ray Kroc, built McDonalds on a foundation of ethical business
conduct and involvement in our local communities. McDonalds owner/operators and

company-operated restaurants fulfill these vital commitments every day in many ways.

Support for Breast Cancer Services:

McDonalds takes great pride in supporting the organizations and causes that are important
to our employees and customers. In 2009, McDonalds returns as national presenting
sponsor of Breast Cancer Network of Strengths Mothers Day Walk to Empower events
taking place in 16 cities across the country Chicago, Cleveland, Washington, D.C., New
Haven, Atlanta, Chattanooga, Miami, Houston, Tulsa, Denver, Phoenix, San Diego, Los
Angeles, Sacramento, San Francisco and Seattle. Sponsorship of this national Mothers Day
tradition continues McDonalds heritage of giving back to our communities and our longstanding commitment to breast cancer awareness and education support. For more
information regarding the events or to find more breast cancer information and resources,
visit www.networkofstrength.org.

World Children's Day:

Since 2002, McDonald's restaurants around the world have hosted an annual simultaneous
fundraiser for children in their communitiesWorld Children's Day. The event benefits
local Ronald McDonald House Charities Chapters and other programs for children. In
2008, our U.S. restaurants raised more than $8 million and since the program's inception,
World Children's Days has raised more than $150 million around the world. The funds
mean additional support for RMHC, its 157 local Chapters across the country, and their
core programsRonald McDonald House, Ronald McDonald Family Room, and Ronald
McDonald Care Mobile. They also help support the RMHC U.S. Scholarship Program and
grants to other organizations that directly improve the health and well-being of children.
Growing Communities. McDonalds in the community means jobs for local residents,
opportunities for local suppliers, and revenues for local projects and services. Our
restaurants are often key elements in neighborhood stability and revitalization.
McDonalds in New York City
Owner/operator Irwin Kruger created a unique customer experience
and helped revitalize a key urban center when he opened his
restaurant in New York Citys legendary Times Square. The threestory, 300-seat restaurant occupies a historic landmark building and
celebrates the theatrical tradition of the neighborhood.
Broadway-themed Times
Square restaurant

McDonalds in Florida
In 2009, McDonalds 832 Florida restaurants collectively:

Provided jobs for nearly 39,415 local residents.

Spent more than $961.5 million dollars in their communities,

or more than $2.6 million per day.

Returned more than 45 cents of every dollar earned to the local economy.

Had a combined investment of nearly $1.2 billion in the area.

Created nearly 102,475 additional jobs and nearly $2.8 billion in spending.

Supporting Education. McDonalds owner/operators support education in many ways.

They develop and co-sponsor local programs, host fundraisers for their local schools, and
provide scholarships and other education assistance for their employees. They are key
sources of support for the RMHC scholarship programs.
Camp Mickey Ds
Texas owner/operator Sybel Pici reached out to a local school district to
create Camp Mickey Dsan innovative program that helps students
learn about workplace values and the connection between school and
work. The program is now sponsored by the Greater San Antonio
McDonalds Owner Association and now serves 38 high schools in 14
school districts. Sybel and her husband and fellow owner/operator Bob
also pay for tutoring for their restaurant student employees.
Scholarships for Restaurant Crew
Birmingham, Alabama owner/operators Max Cooper and Ed Levins
provide college scholarship bonuses for their restaurant crew
members. Over the years, thousands of crew members have received a
total of approximately $500,000 in financial assistance. Cooper says,
This is our way of helping our employees achieve their dreams.

Crew member
Mary Elligan
shows Mickey
Ds camper
Maria Pena how
to work the
register

McDonalds Corporation Programs

Working with The Field Museum in Chicago, McDonalds is making it possible for the
public to experience and learn about "Sue," the world's largest, most complete, and bestpreserved Tyrannosaurus rex fossil.* We have sponsored two touring life-size replicas, a
program for elementary schools, and state-of-the-art fossil preparation laboratories, where
the public can view the continuing restoration process. We originally helped the Field
Museum purchase Sue, so that she would be available to researchers and the public.
We have created and make available educational resources to enrich elementary and
secondary classroom studies. Most were developed in collaboration with prominent
organizations like the National Wildlife Federation, the American School Counselor
Association, the Partnership for a Drug-Free America, and Scholastic magazine.
McDonalds Corporation sponsors a National Employee Scholarship Program for
qualifying restaurant employees. We also fund National Merit Scholarships for children of
employees and others within the McDonalds System.
McDonalds is a contributing company in the Upromise network, a revolutionary college
savings accelerator for customers.
RMHC. Ronald McDonald House Charities creates, finds, and supports programs that

directly improve the health and well-being of children in the U.S. and around the world.
McDonalds and McDonalds owner/operators provide ongoing support for RMHC.
To help parents keep their children healthy, RMHC teams up with the American Academy
of Pediatrics on a childrens immunization programImmunize for Healthy Lives. This
program, now in its eleventh year, brings local health care providers, local RMHC
Chapters, and McDonalds restaurants together to educate parents on the importance of
timely vaccinations for their children.
For information about RMHC programs, grant procedures, and local contact information,
visit theRMHC Web site.
* Sue at The Field Museum is made possible by McDonald's Corporation. Additional
support for Sue provided by Walt Disney World Resort, the Illinois Department of Natural
Resources/Illinois State Museum, and the Elizabeth Morse Charitable Trust.
McDonald's Educational Resources
McDonald's applauds your countless efforts in developing and inspiring our nation's youth.
As one of the largest employers of America's young people, we share your commitment to
educating children.
We've created a variety of materials to enhance your classroom studies. To help us select
timely, useful topics that complement your curriculum, we talk with thousands of educators
every year, and you've helped us make significant contributions to the resources in this
catalog.
Most of these programs also reflect relationships we are privileged to share with renowned
organizations such as the National Wildlife Federation, the American School Counselor
Association and the Society for Nutrition Education. We're proud to work with these
groups, which offer invaluable guidance in their areas of expertise.
Our restaurants are committed to the communities we serve, and supporting teachers and
schools is always a top priority. Our franchisees and restaurant managers have a rich
tradition of forming valuable partnerships with their local schools, and are available to help
you and your students.
Please let us know what you think of our materials -- what works, what needs to be changed
and what additional resources you can use. Together, we can help ensure the success of our
nation's students and future leaders.
Please note, there are costs associated with purchasing of these items, and prices are
subject to change.
Classroom Materials
SCIENCE AND ENVIRONMENT
Colossal Fossil Education Program
(Grades 3 - 5) Motivate your students to learn more about science
with this inquiry-based study of Sue, the most complete T. rex
dinosaur fossil ever discovered. These comprehensive materials
teach students about discovery, excavation and preparation of this
significant scientific specimen, which was acquired by The Field

Museum in Chicago, with help from McDonald's and other

partners. Item #MCD83656. To order, call (800) 627-7646.
Amazing Animals Bookmarks
(Grades Pre-K - 3) Introduce your students to eight Amazing
Animals and their habitats with this pack of 40 colorful
bookmarks developed with the National Wildlife Federation. Item
#MCD52685B. To order, call (800) 627-7646.
SAFETY
Plan to Get Out Alive Video
(All Grades) Help your students develop a plan for home fire
safety with the simulated drills and tips offered in this video. Item
#FM.13. To order, call (800) 627-7646.
LITERACY AND STUDY PROGRAMS
Ronald McDonald School Shows
(Grades K - 5) Create inspirational lessons for your students with these programs hosted by
Ronald McDonald. Each show offers a fresh approach to communicating core messages
about building good character, reading, ecology and safety. Contact the Ronald McDonald
coordinator at your local McDonald's restaurant to find out which shows are available in
your area.
Tuskegee Airmen Documentary and Discussion Guide
(Grades 6 - 12) Let the Tuskegee Airmen, World War II's African-American bomber
squadron, take your students on a flight through aviation history with this 23-minute video.
Item #FM.29. To order, call (800) 627-7646.

SUICIDE PREVENTION
Team Up to Save Lives CD-ROM
(For Educators of Grades 7 and up) Prepare your school to address a major public health
problem - adolescent suicide. Ronald McDonald House Charities teamed up with the
University of Illinois to create this interactive suicide prevention program that educators,
counselors and administrators can use to help identify and intervene with at-risk students.
Developed through extensive research with school personnel, this model suicide prevention
plan can be modified to meet the needs of your school community. Copies of the program
can also be printed from the CD-ROM and distributed at educator in-services, workshops,

etc. Item #MCD63255E. To order, call (800) 627-7646.

McDonald's Materials
NUTRITION
McDonald's Nutrition Facts Brochure
(All Grades) Contains useful, easy-to-read nutrition information for McDonald's standard
USA menu items. To request copies, contact the McDonald's Customer Satisfaction
Department, (800) 244-6227.
RONALD MCDONALD HOUSE CHARITIES
The Spirit of Helping Children Video
(All Grades) Learn about Ronald McDonald House Charities (RMHC) in this video
featuring the "Hearts and Hands" song and information about RMHC's mission and
grantmaking, Ronald McDonald House and much more. Item #TVT2032.V. To order, call
(800) 627-7646.
RMHC Teams Up for Immunization Education
Vaccine-preventable diseases like measles, chicken pox, polio,
and hepatitis B are still a threat to children, according to the
American Academy of Pediatrics (AAP). So its important to
immunize children on time. To help children and families, Ronald
McDonald House Charities (RMHC) has teamed up with the AAP
and healthcare providers around the United States on Immunize
for Healthy Lives, an immunization education program in
existence since 1993.
August is the back-to-school vaccination time period, when most parents take their schoolaged children to be immunized before returning to the classroom. But health professionals
recommend that vaccinations begin at infancy to protect against meningitis and pneumonia.
By age two, children can be protected from more than 11 preventable diseases.
RMHC is committed to the health and well-being of children and families. By working with
health care providers around the country, the Immunize for Healthy Lives initiative helps
educate parents on the importance of timely immunizations so they can help their children
stay healthy.
More information on the RMHC Immunize for Healthy Lives program is available from
local RMHC Chapters. The RMHC Web site has a searchable list of local Chapters, with
contact information.
For comprehensive and current information on immunization, including a 2005
immunization schedule, visit the American Academy of Pediatrics Web site.
McDonald's USA Can Help You Save For College
McDonald's is proud to be a Upromise contributing company.
Upromise is a free service that allows you to earn college rewards

on eligible purchases with participating companies, on things like

shopping, eating out, filling the gas tank, buying groceries and
more.
In addition to McDonald's, you can get college rewards at Exxon
and Mobil locations, Bed Bath & Beyond, The Sharper Image,
more than 8,000 local restaurants, over 550 online retailers, and
with over 3,400 grocery and drug store products. These companies
and many more will contribute a portion of your eligible spending
with them into your Upromise account.
Millions of families have already joined Upromise to help save and pay for the college
education of their children, grandchildren, friends and family. Best of all, it's free to join,
and easy to start saving. Here's how:
1. Join Upromise for free at www.upromise.com
2. Buy gift certificates at McDonalds restaurants or by clicking here. Enter the code
found on the back of the Arch Card, or the code found on the inside back cover of
each book of gift certificates at www.upromise.com/mcdonalds. (You can enter the
coupon numbers before you use the gift certificates themselves.)
3. Purchase an Arch Card at any store and register it in your Upromise account
atwww.upromise.com/mcdonalds
You'll earn college savings each time you enter gift certificate codes, and when you load
and re-load your registered Arch Card.

Visit the Upromise website for details and to learn all the ways you can save.Legal: Terms
and conditions apply for each companys contributions. Visit upromise.com for details.
Environment
With millions of customers around the world, McDonalds recognizes the importance of

conserving natural resources and the benefits they provide for current and future
generations. We also recognize that our long-term business goals will be better served if we
help protect the natural and community resources that support and are affected by our
activities.
We have a long-standing record of industry leadership in environmental conservation. Our
achievements have been recognized by such organizations as the Audubon Society,
Conservation International, Keep America Beautiful, the National Recycling Coalition, and
the U.S. Environmental Protection Agency.
Our approach focuses strategically on our major environmental impacts and is guided by
world-recognized independent experts.
Our Neighborhoods. As good citizens and good neighbors,
McDonald's and our independent owner/operators help keep the
local environment clean and attractive.

Our standard operating procedures include regular litter

patrols of the areas around our restaurants.

Owner/operators and regional company organizations McDonalds volunteers

support local clean-up days with free meals for volunteers clean up forest
preserve in DuPage
and promotional incentives for participation.
County, Illinois
Our Restaurants. At McDonalds, environmental preservation at
the restaurant level involves a broad range of initiatives to
conserve natural resources and minimize pollution.

Solid Waste Management

Since 1990, McDonalds has worked with the Environmental Defense Fund to reduce waste
in our operations. We have learned to control solid wastes by:

Reducing the amount of materials we use initially.

Recycling what we can.

Using products made from recycled materials.

The many changes we have made have produced large savings in natural resources and
reductions of waste.

Elimination of more than 300 million pounds of packaging.

Reduction in the weight of the 42 oz. polypropylene cup, saving nearly 350 tons of
resin per year.

Nearly 80 percent of our packaging is made from renewable materials, with more than
30 percent coming from post-consumer generated fiber.

Electrical Energy Conservation

Electrical energy conservation is an important part of our environmental program. We know
that managing our energy uses will conserve energy sources like natural gas and coal and
help control greenhouse gas emissions that contribute to smog, acid rain, and global
warming.
During the 1990's, we significantly reduced electrical energy consumption in our restaurants
by replacing conventional lighting with more energy-efficient fluorescent lighting. We were
an early member of the U.S. Environmental Protection Agency's Green Lights program and a
recipient of the agency's Green Lights Partner of the Year award.
In 2007, the Environmental Protection Agency again recognized our energy conservation
efforts by naming us ENERGY STAR Partner of the Year.
Our goal is further signification reduction in electrical energy use. We are making progress
toward this goal by:

Providing owner/operators and restaurant managers with training, advice, and tools
for assessing electrical energy consumption and savings potentials.

Establishing optimal equipment maintenance procedures and schedules.

Installing additional energy-efficient equipment in new restaurants and during

renovations.

Testing innovative equipment that may produce further electrical energy savings
through new technologies.

Developing an electrical energy use tracking and benchmarking system for our
company-operated restaurants. This will help measure progress toward our energy
reduction goal.

Green Restaurants. LEED (Leadership in Energy and Environmental Design) is the nationally
accepted benchmark for the design and operation of green buildings. McDonalds currently has
three LEED certified restaurants in the U.S.

In 2010, McDonalds franchisee Ric Richards restaurant in Cary, N.C., was LEEDcertified.
In 2008, McDonald's opened its first company-owned LEED certified restaurant at 42nd
Street and Ashland Avenue in Chicago, IL.
In 2005, McDonald's franchisee Gary Dodd opened the first LEED-certified green
restaurant in Savannah, Ga.

Our Supply Chain. Taking our environmental commitment to the next level, we are
incorporating socially responsible practices into our supply chain.
Working with Conservation International, we have launched an initiative to integrate a broad
range of socially responsible practices into our worldwide food supply chain. This is a
significant strategic advance in our established responsible purchasing programs. The
guidelines that provide the framework for the initiative address key natural resources and

impacts, such as water, air, soil, and biodiversity.

We have opened the world's first HFC/HCFC/CFC-free restaurant, in Denmark, to test the
feasibility of using various types of equipment that use no refrigerants associated with global
warming.
Our Policies. McDonald's environmental programs and practices in the U.S. carry out
principles set forth in our global statement of our commitment to the environment. We also
have a specific rainforest policy that commits us to purchasing only beef that was not raised
on rainforest or recently cleared rainforest land.
Worldwide Environment Program. For information about McDonald's worldwide
environmental efforts, visit the Values in Practice section of mcdonalds.com.
People

Our People Principles. At McDonald's, we know that people are our most valuable resource.
In the U.S. and around the world, we are committed to a supportive, inclusive work
environment where employees can grow and contribute their diverse skills, energies, and
perspectives.
In addition to promoting the well-being of our own employees, we have developed guiding
principlesfor improving this countrys healthcare system.
Opportunity. McDonald's offers significant opportunities for career development.
Countless people in all walks of life started on the path to success in one of our restaurants.
There are also career ladders within the System.
More than 40% of the top 50 members of our worldwide management team started as crew
members, including:

Chief Restaurant Officer Jeff Stratton.

Jan Fields, President, U.S. business.

Two of our three U.S. Division presidents.

Training. We have formal learning and development programs in place worldwide and for
employees at every level.

Our structured Crew Development Program helps crew members learn to perform
each task safely, efficiently, and with customer service in mind.

Our award-winning e-Learning strategy is bringing interactive computerized courses

into our restaurants so employees can learn continuously, at their own pace.

Classroom courses move outstanding employees from crew positions through the
ranks of restaurant management and beyond.

Hamburger University, one of the best known corporate training centers in the U.S.,
provides operations and accredited business management training for restaurant

managers, mid-level managers, owner/operators, and corporate executives.

Further Higher Education Support.
We also provide support for college and university coursework.

Qualifying employees may receive partial reimbursement for tuitionup to $5,250

per yearfor courses relevant to their present or future jobs in the company.

We also support enrollment in approved business programs, even if not directly

applicable to a particular job.

Every year, McDonalds awards 52 scholarships to U.S. restaurant employees through

ourNational Employee Scholarship Program.

Diversity. At McDonald's we live by our founder Ray Kroc's lesson: None of us is as good as
all of us. We are proud of our record of promoting diversity throughout the System.

More than 55% of our headquarters and U.S. company workforce are members of a
racial or ethnic minority, and approximately 61% are women.

More than 40% of our U.S. owner/operators and an even higher percentage of the
people in training to become owner/operators are minorities and women.

We purchase more than $4 billion a year in food and paper products from U.S.
minority and women-owned businesses.

Our diversity record has earned numerous awards and other significant recognition,
including:

One of the Best Companies for Diversity in America (2005-2007) - Black Enterprise

Top Company for Hispanics (2005) - Hispanic Business Magazine

Best Company for Minorities (2003-2004) (also ranked among best in 2000-2002)
- Fortune

Among Top 50 Places for Hispanic Women to Work (2004) - Latina Style

PUSH-Excel Corporate Partner Award (2003) - Rainbow PUSH Coalition

Among 50 Best Companies for Minorities (2003) - National Hispanic Corporate

Council

Among Top Employers for People with Disabilities (2001-2002, 2004) - Careers &
the disabled

McDonald's USA National Employee Scholarship Program

The McDonald's National Employee Scholarship Program is one

of many examples of McDonald's commitment to employee
development and recognition The program recognizes and
rewards the accomplishments of McDonald's student-employees
who excel in their studies, serve their communities, and work
hard to deliver an outstanding experience for our customers.
Awards
Every academic year, the McDonald's National Employee Scholarship Program selects one
outstanding student-employee applicant from each state and the District of Columbia. They
each receive a $2,500 scholarship. In addition, three student-employees judged to
demonstrate the highest commitment to school, work, and community service will be selected
and named "McScholars of the Year" and awarded a $5,000 scholarship.
Scholarship winners may use their awards at any qualifying institution and for any field of
study they choose.
Eligibility
The McDonald's National Employee Scholarship Program recognizes the accomplishments of
outstanding students in the course of their employment at McDonald's. The following
eligibility requirements apply for this program:

Must be currently employed at a U.S. McDonald's restaurant and have at least four
months continuous employment at the time of application.

Must work a minimum of 15 hours per week.

Must be a high school senior planning to attend an accredited institution OR returning

college student who currently attends an accredited institution.

Must be employed by McDonald's or a U.S. McDonald's owner/operator at the time

the scholarship awards are announced.

Selection
Scholarship winners are selected on the basis of their documented academic achievement,
community involvement, and job performance. An independent panel of educators reviews all
complete applications and selects the winners. All decisions are final.
Applications for 2010 Awards

The 2010 scholarship program will open

January 1 and close on March 1. You will be
able to complete the scholarship application
online if you go to the McDonald's crew
website stationm.com.

McDonald's Health Care Principles

Overview
For years, many private-sector companies and government policymakers have recognized the
need to reform the U.S. health care system. McDonald's is also concerned and has been
working with other stakeholders on an effective solution. As an example, we were among the
first organizations to adopt the Four Cornerstones initiatives for the Executive Order on Value
Driven Health Care. In addition, McDonalds actively participates in associations and
coalitions, such as the HR Policy Association, the American Benefits Council, and the
National Retail Federation, which are developing plans to help resolve the health care
challenges that this country faces.
We believe that any resolution must recognize the many challenges that improving this
countrys health care system posesincluding access to care, improving quality of care,
affordability, ease of use, and education. In addition, any solution must support the current
voluntary market-based system, in which McDonald's, its owner/operators, and numerous
other companies offer health care benefits for their employees.
Guiding Principles

McDonalds recognizes that this countrys health care system needs improvement
on many fronts. These include inadequate and inconsistent access to health care, the
high cost of health care, the lack of generally accepted quality standards, the
complexity in using and understanding the health care system, and the lack of
education available on how to use the system appropriately.

McDonalds wants to participate in developing a solution. We are a socially

responsible company and committed to collaborating on solutions to major social and
economic issues. We are eager to continue to share our substantial experience in
providing health care benefits to a large and diverse workforce.

Greater cost-effectiveness must be part of the solution. Rising costs are severely
stressing both employer-sponsored and government health care programs. There must
be an emphasis on preventive health care, wellness programs, improved treatment
outcomes, greater transparency on prices and quality, and simplifying program
administration. In addition, we must recognize that all individuals also have a
responsibility, and any solution must create tools to educate individuals on areas such
as wellness, prevention, and effective use of health care.

Health care fixes should be addressed at the federal level, not piecemeal by
states, counties, municipalities, and other local jurisdictions. State and local

legislation will simply expand upon the existing patchwork of inconsistent benefits
and complex administrative requirements.
Responsible Purchasing
At McDonald's, we work continuously with our suppliers to promote socially responsible
practices in our supply chain. Our efforts include a supplier social accountability program,
which protects the health, safety, and human rights of workers.
Animal Welfare. McDonald's is an industry leader in animal welfare. Our program
includes:

Global Animal Welfare Guiding Principles for McDonald's programs worldwide.

An Animal Welfare Council to advise us on humane animal handling practices.

Onsite audits to ensure appropriate animal handling practices in our suppliers'

slaughterhouse facilities.

Laying Hen Guidelines for our U.S. egg suppliers.

Other local market-specific standards.

"McDonald's should be given credit for bringing about

improvements in animal welfare in the entire beef industry... I
have been in this business for more than 25 years, and I have
never seen such a transformation."
Dr. Temple Grandin
Prominent Animal Behavior Expert

Dr. Temple Grandin,

McDonalds chief
Antibiotics. McDonald's has taken a lead in preserving the
animal welfare advisor,
effectiveness of antibiotics that are important to human and animal
audits a supplier
health. Our Global Policy for Antibiotic Use in Food
facility
Animals helps address the problem of bacterial resistance by
establishing standards for antibiotics use that our applicable to our
"direct relationship" poultry suppliers.
Direct relationship suppliers are those that have facilities dedicated to producing products
for the McDonalds System and control the stages of production where antibiotics are most
likely to be used. Most of our direct relationship poultry suppliers are in North America and
Europe.
Our global antibiotics policy requires direct relationship poultry suppliers to:

Refrain from using, for the purpose of growth promotion, antibiotics that belong to
classes of compounds approved for use in human medicine.

Follow specific Guiding Principles for Sustainable Use.

Direct relationship poultry suppliers must annually certify their compliance with the policy.

As a next step, we have developed a trial reporting system to track antibiotics use and are
now testing it with our direct relationship poultry suppliers in the U.S.
To encourage broader adherence to the requirements, our policy indicates that voluntary
compliance will be a favorable factor in future purchasing decisions.
Safety. At McDonald's, nothing is more important than the safety of our customers and our
employees. A relentless focus on safety is integrated into every aspect of our operations.
Food Safety
McDonald's leads the industry in food safety. For many years, we have been out in front
with high standards and effective compliance programs.

We have food quality and safety standards in place in every critical area of our
supply chain, from farm to counter. Our standards meet or exceed federal
requirements.

HACCP (Hazard Analysis Critical Control Point) is a cornerstone of our approach.

HACCP is a globally-accepted method of preventing food-borne illinesses and has
been adopted by the U.S. Department of Agriculture as the basis for its regulations.

We require our food suppliers to have HACCP systems.

Food safety has been integrated into food handling procedures in our restaurants.
Staff conduct validations, on an ongoing basis, to verify adherence.

Toy Safety
McDonald's toy safety record far exceeds the record for the toy
industry overall. This reflects the high priority we place on toy
safety and our relationships with suppliers who share our
commitment and have the capabilities to fulfill it.

Our suppliers use state-of-the-art technology to analyze the

safety of toys and other promotional items developed for
Virtual Child,
the McDonald's System.
developed by RAM
Consulting for
Our Happy Meal toy designs undergo extensive reviews
McDonalds, tests toys
and testing by a team of safety experts, including
for potential
independent testing laboratories. Toys are tested before,
suffocation hazards.
during, and after production.
Shared with CPSC to
help improve their toy
With RAM Consulting, we shared state-of-the-art
safety testing.
equipment and technology with the U.S. Consumer
Product Safety Commission to help them better evaluate
toy safety and prevent injuries to children. CPSC awarded
us the prestigious Chairman's Commendation for our
contributions to product safety.

Play Place Safety

McDonald's is committed to offering our customers the safest play environment and the

most play value possible.

We work with the world's leading playground equipment manufacturers and installers and
with renowned safety consultants to ensure that the play equipment at our restaurants meets
our strict specifications.
Our commitment to safety goes beyond our own PlayPlaces. For example, we supported the
development of a National Playground Safety Institute training curriculum for people who
operate playgrounds with soft contained equipment.
Supplier Social Accountability. As a responsible citizen in every community where we do
business, McDonald's is committed to high standards of behavior on issues of corporate
responsibility. We hold our suppliers to these same high standards.
Our Code of Conduct for Suppliers describes how we expect our suppliers to treat their
employees. We hold our suppliers accountable for ensuring adherence to our standards in
their facilities and in subcontractor facilities that produce products for us.
Building on the Code, we have worked with our suppliers and other stakeholders on several
initiatives to extend social accountability throughout our supply chain. We are currently
exercising leadership in several collaborations to improve conditions for farm workers in
the Florida tomato industry.
Sustainable Supply Initiative. McDonalds has long promoted socially responsible
practices in our supply chain. We have now embarked on a more comprehensive, strategic
approach. It incorporates existing initiatives like our animal welfare program and our
supplier social accountability program and also new environmental guidelines and
performance measures.
We have developed a sustainable supply vision, principles, and target outcomes. Within this
framework, we have initiated two new programs. One focuses on responsible management
and marine conservation in our fish supply chain. The other seeks to promote good
environmental practices in our land-based agricultural supply chain.
Visit the Values in Practice section of mcdonalds.com for more information about our
sustainable supply programs.
Collaboration to Improve Conditions for Florida Tomato Workers
At McDonald's, we are committed to extending socially responsible practices throughout our
supply chain. Our long-standing Code of Conduct for Suppliers establishes expectations for
fair, safe, healthful working conditions in our suppliers' facilities worldwide. We continuously
work with our suppliers to ensure compliance and continuous improvement.
Building on this commitment, we have been intensively engaged in improving working
conditions for Florida's tomato workers. This has been a collaborative effort involving our
direct suppliers, growers, various produce associations, and advocacy groups, including the
Coalition of Immokalee Workers (CIW). The effort has produced significant results.

New Agreement with CIW and McDonald's Produce Suppliers

On April 9, 2007, we joined with CIW and our produce suppliers to announce another major
step forward toward the goals we all share. Specifically, we have all agreed to specific plans
to work together to address wages and working conditions for the farm workers who pick

Florida tomatoes. Under this agreement:

McDonalds USA, through its produce suppliers, will pay an additional penny per
pound for Florida round tomatoes supplied to its U.S. restaurants. The increase will
begin with the 2007 growing season. Our suppliers will establish a way for the
additional penny per pound to be paid to the farm workers.

CIW and our produce suppliers will work together to develop a new code of conduct
for Florida tomato growers. This code of conduct will build on the tomato grower
standards we and our suppliers established in 2006.

CIW and our produce suppliers will also collaborate on increasing farm worker
participation in monitoring supplier compliance, investigating worker complaints, and
resolving disputes.

In addition, CIW and our produce suppliers will work together toward developing and
implementing a credible third-party verification systemone that could be expanded
to include other willing members of the foodservice and retail food industry that buy
Florida tomatoes.

Former U.S. President and founder of the Carter Center, Jimmy Carter, has hailed the
agreement as "a welcome example of positive industry leadership" and a demonstration of both
"McDonald's leadership in social responsibility and CIW's importance as a voice for farm
worker rights.
Previous Leadership Initiatives to Improve Conditions for Florida Tomato Workers
The new agreement is the latest step in a series of collaborative initiatives to improve working
and living conditions for Florida's tomato workers.

In 2005, the Florida Fruit and Vegetables Association (FFVA) launched industry-wide
worker protectionsthe Socially Accountable Farm Employers (SAFE) program.
SAFE establishes standards and an external verification program to ensure that
participating growers provide lawful wages and workplace safety protections and that
workers are aware of their rights. We actively support this program and have
committed to purchasing tomatoes from suppliers that participate in it.

In 2006, we and our suppliers instituted industry-leading grower standards that go

beyond the SAFE standards. Under our grower standards, Florida tomato growers that
supply the McDonald's System must hire workers as employees, rather than day
laborers, provide them with opportunities to raise issues and offer suggestions, and
ensure they have access to safe, affordable housing (where available) and local health
screening and counseling services. Compliance with these standards must be verified
by reputable third parties.

Although we purchase only 1.5% of Florida's tomatoes annually, we hope these initiatives
and the new plans announced will drive change throughout the industry. We know that more

can be done, and we are deeply committed to collaboration and continuous improvement in
this area, as in all our corporate social responsibility efforts.

Summary of McDonald's USA Laying Hens Guidelines

In support of McDonald's Animal Welfare Guiding Principles and recommendations issued
by the Scientific Advisory Committee on Animal Welfare for United Egg Producers (UEP),
McDonald's has established guidelines that meet or exceed industry standards to ensure the
proper treatment of laying hens used for egg production.
McDonald's will purchase eggs from producers that support our corporate guidelines related
to animal welfare and the UEP Scientific Advisory Committee's recommendations.
Specifically, cages should be specified and designed to target a minimum of 72 square inches
of space and a minimum of 4 inches of feeder space with minor allowances for variation due
to construction. This enables simultaneous feeding for all birds. It is McDonald's
recommendation that non-dedicated facilities achieve these same guidelines.
McDonald's does not support the withdrawal of food or water to facilitate molting, as it
violates our Animal Welfare Guiding Principles.
McDonald's does not support improperly controlled and/or improperly managed "beak
trimming," as it violates our Animal Welfare Guiding Principles.
Additionally, in 2009, McDonalds USA teamed with leading animal welfare scientists,
academics, Non-Government Organizations (NGOs) and egg suppliers in a commercial-scale
study of housing alternatives for egg-laying hens in the U.S.. The study will look at the
sustainability impacts of different laying hen housing environments, including cage-free
housing, on animal health and well-being, safe and affordable food, the environment, and
worker welfare.
The research is being led by Michigan State University (MSU) and the University of
California, Davis (UC Davis). Along with McDonalds, the multi-stakeholder Coalition
advising the study includes the American Humane Association (AHA), American Veterinary
Medical Association (AVMA), USDAs Agricultural Research Service (ARS), Cargill
Incorporated, and the Center for Food Integrity (CFI).
The goal of the study is to understand the viability of alternate housing systems in the U.S.,
including cage-free and enriched housing, which includes nests and perches, as well as the
housing environments used by McDonalds current supply system in the U.S., which adheres
to McDonalds strict Laying Hen standards. Another goal is to provide scientific-based
research that will assist McDonalds and other companies in making more informed decisions
on sustainable egg purchases, taking into account their independent company values and
business needs.
The eggs produced during this study are expected to be used in McDonalds U.S. restaurants,

provided they meet stringent food safety and quality standards.

Financial Aspects

RATIO ANALYSIS

Symbol Company Name

Last

Change %
Volume
Change

MCD

MCDONALDS
CORP

70.31 0.39

0.56

5.53 M

BKC

BURGER KING
HLDGS INC

21.39 0.59

2.84

1.36 M

WEN

WENDYS
ARBYS GROUP
INC

5.44

2.06

4.35 M

0.11

Top competitors performance comparison

MCD

BKC

WEN

Analyst Recommendation

Buy

Hold

Hold

Last

70.31

21.39

5.44

Change

0.39

0.59

0.11

EPS (Mean)

4.436

1.356

0.166

Revenue

22.74 B

2.54 B

3.58 B

Market Capitalization

75.65 B

2.89 B

2.41 B

EPS Change vs. Year Ago

11.4573

-8.3784

-17.00

5 Year Annual EPS Growth

18.08582

48.97128

-12.6014

MCD

BKC

WEN

Price/Earnings (TTM)

15.19

12.72

469.00

Price/Cash Flow

13.70

9.02

8.34

Price/Sales (TTM)

3.04

1.01

0.61

Price/Book

4.79

2.39

0.91

Last Dividend

49.88

16.89

Book Value

13.03

7.83

5.16

EPS (TTM)

4.17

1.48

0.01

Revenue

22.74 B

2.53 B

3.58 B

EBIDTA

8.01 B

440.20 M

298.05 M

Operating Margin

28.82%

13.61%

5.70%

Profit Margin

20.01%

7.89%

0.14%

Gross Profit Margin

59.80%

32.93%

18.46%

Dividend Yield

2.97%

1.19%

1.13%

Payout Ratio

49.88

16.89

Annual Dividend (TTM)

0.00

Dividend Yield 5 Year

Average

2.62%

2.34%

Net Income

4.55 B

200.10 M

5.06 M

EPS (TTM)

4.17%

1.48%

0.01%

Revenue

22.74 B

2.53 B

3.58 B

PEG

1.48%

1.02%

1.80%

Quick Ratio (MRQ)

20.01

7.89

0.14

Current Ratio (MRQ)

1.14

0.81

1.85

LT Debt to Equity Ratio

(MRQ)

75.25

72.95

64.24

Total Debt to Capital (MRQ) 42.98

47.70

39.46

ROE

33.16

20.68

0.21

ROA

16.86

8.83

1.82

ROIC (Return on Invested

Capital)

20.16

12.98

2.38

Asset Turnover

0.77

0.94

0.72

Asset per Employee

77,100.51948 65,515.48887 73,709.86667

Inventory Turnover

72.83

100.86

114.47

SWOT Analysis

McDonalds Corporation
Strengths

McDonalds has built up huge brand equity. It is the No. 1 fast-food company by sales,
with more than 31,000 restaurants serving burgers and fries in almost 120 countries.
Sales, 2007 (11,4009 million), 5.6% sales growth
Good innovation and product development. It continually innovates to retain
customers in the business.

The McDonalds brand offers consumers choice, reasonable value and great service

Large amounts of investment have gone into supporting its franchise network, 75% of
stores are franchises
Loyal staff and strong management team.

It has a strong global presence and is considered as a market leader in both the
domestic as well as the international markets.

It is a global brand that owns 31,000 restaurants serving in 120 countries. Of these
31,000 restaurants at least14,000 restaurants are situated in the US.

It uses economies of scale for reducing the cost, as its huge expansion diversifies the
overall risk involved with the economic performance.

They own an active childrens charity by the nameThe Ronald McDonald House.

It takes steps in adjusting the Ingredients and product offerings in order to comply
with the upgraded health standards deemed necessary by the USDA.

It earns revenue by fast food sales as well as a property investor and a franchiser of
restaurants.

It has a firm real estate portfolio.

It has branded menu items i-e Big Mac, Chicken McNuggets, which further promote
McDonalds.

Its recognized as one of the worlds most recognized logos.

It is recognized as a socially responsible and community oriented firm.

It adas to the cultural differences regarding the region where the restaurant is set up.

It has located itself in major airports, cities, highways, tourist locations, theme parks.

It has an efficient food preparation style that follows the process in a systematic way.

It takes food safety extremely cautiously.

It was the first to provide the customers about nutrition facts.

Weaknesses

Core product line out of line with the trend towards healthier lifestyles for adults and
children. Product line heavily focused towards hot food and burgers[3].
Seasonal

Quality issues across the franchise network.

It uses advertising that mostly targets children.

High employee turn-over.

It has yet to accomplish going on the trend of organic food.

Price competition with the competitors resulting in low revenue.

Lack of innovative products.

Opportunities

Joint ventures with retailers (e.g. supermarkets).

Consolidation of retailers likely, so better locations for franchisees.
Respond to social changes - by innovation within healthier lifestyle foods. Its move
into hot baguettes and healthier snacks (fruit) has supported its new positioning.
Use of CRM, database marketing to more accurately market to its consumer target
groups. It could identify likely customers (based on modelling and profiles of
shoppers) and prevent brand switching

Strengthen its value proposition and offering, to encourage customers who visit coffee
shops into McDonalds.
The new formats, McCafe, having Wifi internet links should help in attracting
segments. Also installing childrens play-parks and its focus on educating consumers
about health, fitness.
Continued focus on corporate social responsibility, reducing the impact on the
environment and community linkages.
International expansion into emerging markets of China and India.
It can adapt to the needs of the societies and undergo an innovative product line.
It can research ways to use green energy and packaging which will work as a part of
their promotional effort as well as fulfill their social responsibility.
It can create new product offerings, use mobile text messaging to offer services that
appeal to consumers.
It can upscale some of its restaurant settings at luxurious locations to attract more
customers.
It can provide optional items that are regarded to be the basis of allergy for some.
It can slow down the level of expansion in order to increase the profitability of the
organization.

Threats

Social changes - Government, consumer groups encouraging balanced meals, 5 a day

fruit and vegetables.
Focus by consumers on nutrition and healthier lifestyles.
Competitive pressures on the high street as new entrants offering value and greater
product ranges and healthier lifestyles products. E.g. subway, supermarkets, M&S.
Recession or down turn in economy may affect the retailer sales, as household
budgets tighten reducing spend and number of visitors.
Pressure groups - environmental.
The recession negatively impacts the holding position of the firm regarding its
revenue streams, even though they are quite diversified
Foreign currency fluctuations are regarded to be a major problem as it uses standard
pricing for its food items.
More restaurants that are increasing their food offering and declining the price.
Health issues regarding the fast food chain.
Heavy investments on promotional campaigns which decrease the gaining of market
share.
Some parents criticize the firms cradle to grave marketing strategy that focuses on
kids, who later on take it as a trend to their adulthood.
Sued various times for unhealthy food, usually with addictive additives.

Emergence of major fast food competitors: Burger King, Starbucks, Wendys, Taco
Bell, KFC. The expansion has made the firm vulnerable to the slow economies of the
other countries.

FIVE FORCES MODEL

Rivalry among Firms:

Currently in the fast food industry, there is intense competition for growth in the market. The
market growth is rising because of the convenience factor and busy consumers not having
enough time to cook a meal. The restaurant industry is also growing rapidly due to
opportunities in other global markets. In McDonalds case, they actually have a competitive
advantage because they have already entered many different countries and are succeeding in
these countries. Each firm within the food-service industry is susceptible to losing customers
because there are relatively no switching costs for consumers, therefore the industry has to
rely heavily on their brand image and quality of products. McDonalds has a number of
competitors; however they are currently the leader of the industry in market capitalization
with a cap of $39.31 billion.

Threat of New Entrants:

The threat of new entrants in the fast food industry is high because there are no legal barriers
which would keep them from entering the industry. The major barriers in which a firm faces
in the industry are the economies of scale and the access of the distribution. In order for a
firm to enjoy success in the industry, they must spend a large amount of capital on advertising
and marketing. The industry is very competitive because firms are always attempting to steal
customers from each other. Access for distribution is crucial in the restaurant industry
because if the customer cant see you or access you easily its possible that they wont go out
of there way to eat there.
Franchise options also make is easier to enter the market, for example Subway has built their
strategic plan around franchise options. Therefore, initially the only cost to enter the market is
the starting capital required to open a restaurant. However, it can cost upwards of millions of
dollars for all the equipment, licensing, and the property. This costly barrier is the most
probable reason that people do not enter this business. The food-service industry doesnt have
any exit barriers, which allow firms to easily leave the industry if theyre not successful, at
virtually only the cost incurred.

Threat of Substitute Products:

McDonalds is known for their famous French Fries, Big Macs, and Happy Meals.
Competitors of the industry also try to compete with similar products; therefore, leading to
price wars. McDonalds created a Dollar Value Menu, in response to competitors such as
Wendys 99 cent menu. Overall, the industry has tried various product differentiations in
order to accumulate greater market share, but most consumers are drawn to the classics for
which the establishment is known for. However, growing concern to achieve a healthier
society has led McDonalds, as well as other competitors, to make extensive menu changes,
in order to conform to a more concerned society. McDonalds is doing more and more to

compete with health focused restaurants like Subway. Nutritionist and other leading experts
have been hired to join the McDonalds team in order to ensure that the correct items are
added to the menu, while still keeping and improving the classics that they are famous for.
For example, the chicken nuggets that we all grew up on are now 100% white meat.
McDonalds is flexible in their menu to conform to the changing tastes of society, but they
always serve with a smile!

Bargaining Power of Customers:

McDonalds, and the industry, has attempted to gain market capitalization, by keeping the
customer satisfied, due to the fact there are relatively no switching costs. For this reason, they
have adopted the slogan, the customer is always right. The industry must try to maintain a
hold on the market by conforming to a changing society as well as maintaining high quality.
One of the industrys most recent concerns is that of creating a healthier society and
prevention of obesity. McDonalds corporation has faced previous law suits on being held
accountable for obesity, similarly following the litigation process of cigarettes and tobacco
companies. The courts ruled against this issue in McDonalds favor, making this a remote
future risk factor.
McDonalds has had to paid legal fees in order to defend itself in this type of litigation;
however, even with this incremental cost they are still achieving a significant rate of earnings
growth. In addition, McDonalds, in its effort to be a more socially responsible corporate
citizen by supporting a healthier society, has developed light and healthy menu items in
order to give 10 customers additional eating options and in doing so, broadening the array of
its customer base while offering its existing customer base with healthier menu options.

Bargaining Power of Suppliers:

It can be said that McDonalds has a large bargaining power because of the fact that they
spend 4.852 billion dollars in food and paper in 2004. This can be argued that the companies
that McDonalds buys from could be largely dependent on McDonalds business. Although in
recent years the industry has had a small problem with beef, because of the outbreak of the
mad cow disease.
This problem raised the cost of beef in Europe tremendously but the cost actually went up
around the world because of the beef shortage in Europe. In this case it can be argued that the
suppliers of beef have a strong voice as well. The suppliers that sell to McDonalds have a
strong voice also because of the fact that the switching cost for McDonalds as a whole would
be so tremendous that they would not want to make that change, so any problems or disputes
would be worked out with there suppliers.

Also, with the competition and the number of buyers in the market place, losing a large
company like McDonalds could destroy any supplier but there are other prospects out there
to buy that product like Wendys, Jack in the Box, Burger King and a few others that they
may be able to salvage there losses. As for the paper goods that McDonalds buy from the
manufacturers, if McDonalds were to change manufacturers the supplier could easily change
there manufacturing to note book paper by just re-adjusting the machines but it would come
at a great cost.

Key Success Factors:

McDonalds key success factors are cost efficiency, product development, marketing, and
promotions. To ensure McDonalds remained consistent with these factors, they sold Donatos
Pizzeria, a company they owned for the past four and half years, due to the costly operations
of running the company. This allowed McDonalds to address the issues of slumping sales
they experienced in the past and focus their attention on their operations. In 2003,
McDonalds introduced a new revitalization plan aimed to help market itself to todays health
conscious consumers and to improve its financial position through discipline. In previous
years, McDonalds had been attempting to grow primarily by adding new restaurants. With
the limited success of this strategy, the McDonalds managers appeared they were more
interested in expanding the empire than generating shareholder wealth.
With the new campaign, McDonalds has begun to look like the worlds food service
industry leader once again. McDonalds has introduced new products like salads and chicken
options that have been well received by the more health conscience consumers. McDonalds
also streamlined and improved techniques its training and operations systems. This resulted
in an even more enjoyable customer experience.
Finally, McDonalds has practiced impressive levels of financial discipline lately. They have
paid down their own debt, reduced capital expenditures by starting less new restaurants, and
reducing other expenses. As a result, McDonalds was able to put more money in the pockets
of its shareholders in the form of dividends. Because of the success of its newly implemented
revitalization plan, McDonalds forecasts a 3% to 5% growth of its total sales and revenues
annually. We also expect McDonalds to benefit from this new plan and experience a steady
capitalization growth.

Global Operations

Global operations:
McDonald's has become emblematic of globalization, sometimes referred to as the
"McDonaldization" of society. The Economist magazine 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 power parity. Scandinavian countries lead the Big Mac
Index with four of the five most expensive Big Mac's. Norway has the most expensive Big
Mac in the world as of July 2008, whilst the cheapest country is Malaysia.
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 up
with Sinopec, China's second largest oil company, in the People's Republic of China, as it
begins to take advantage of China's growing use of personal vehicles by opening
numerous drive-thru restaurants. McDonald's reached a deal with the French fine
arts museum, the Louvre, to open a McDonald's restaurant and McCaf on its premises, by
their underground entrance, in November 2009.
This is a listing of countries with McDonald's franchises, followed by countries without
any. McDonald's is the largest chain of fast food restaurants in the world. It has a total of
more than 31,000 outlets worldwide.

Countries with McDonalds store:

Edition
of
location

Country

Date

Year Comments

# of currently operating
outlets

01

United States

May 15

1940

At The Airdrome building, San

Bernardino, California.

13,381 (source: May

2009)

02

Canada

June 1

1967

Outlet opens in Richmond, British

Columbia.

1,400 (source: March

2007)

03

Puerto Rico

November
First McDonald's in Latin America and in
1967
10
the Caribbean.

04

U.S. Virgin
Islands

September
1970
4

05

Costa Rica

December
1970
28

06

Guam

June 10

1971

07

Japan

July 20

With the opening of an outlet in Tokyo, the

1971 company established a presence in Asia for 3,598 (source: 2004)
the first time.

08

Netherlands

August 21 1971 The first McDonald's in Europe.

220 (source: 2009)

09

Panama

September
1971
1

37 (source: 2009)

10

Germany

First outlet in West Germany, outlets in

November
1971 the New Lnder(former GDR) opened in
22
1991.

1,343 (source: 2009)

First outlet in Oceania and first outlet

outside North America.

11

Australia

May 30

With the opening of an outlet in

the Sydney suburb ofYagoona the
1971 company established a presence on the
third new continent in the span of six
months.

12

France

June 30

1972

857 (source: 2004)

13

El Salvador

July 20

1972

11 (source: Sept 2009)

14

Sweden

October 23 1973 First outlet in Scandinavia.

230 (source: December

2009)

15

Guatemala

June 6

38 (source: 2007)

16

Netherlands
Antilles

1974

701 (source: 2004)

August 16 1974

17

England

October 12 1974 First outlet in the United Kingdom.

18

Hong Kong

January 8

1,250 (United Kingdom

wide, 784 company
owned, 465 franchised,
source: 2006)

1975 First outlet opened in Paterson

200 (source:2009)[3]
Street, Causeway Bay, Hong Kong Island. 177 (source: 2004)

[3]

19

Bahamas

August 4

1975

20

New Zealand

June 7

1976

149 (source: 2004)

21

Switzerland

October 20 1976

119 (source: 2004)

22

Ireland

May 9

1977

79 (source: February
2009)

23

Austria

July 21

1977

148 (source: 2004)

24

Belgium

March 21

1978

64 (source: 2004)

25

Brazil

February
13

With the opening of an outlet in Rio de

Janeiro the company established a presence
1979
560 (source: 2009)
on the continent of South America for the
first time.

26

Singapore

October 20 1979 At Liat Towers, Orchard Road.

121 (source: 2004)

27

Spain

March 10

1981

276 (source: 2004)

28

Denmark

April 15

1981

83 (source: December
2009)

29

Philippines

September
1981
27

30

Malaysia

April 29

31

Norway

November
1983
18

32

Taiwan

January 28 1984

33

Andorra

June 29

34

Wales

December
1984
3

1,250 (United Kingdom

wide, 784 company
owned, 465 franchised,
source: 2006)

35

Finland

December
1984
14

93 (source: 2004)

36

Thailand

February
23

1985

88 (source: 2004)

37

Aruba

April 4

1985

38

Luxembourg

July 17

1985

39

Venezuela

August 31 1985

140 (source: 2009)

40

Italy

October 15 1985

290 (source: 2004)

41

Mexico

October 29 1985

367 (source***: 2009)

42

Cuba

April 24

43

Turkey

October 24 1986

1982

235 (source: 2004)

McDonald's available in the
first Muslim country.

68 (source: December
2009)
Some consider this the first outlet in China
338 (source: 2004)
PR due to political reasons.

1984

1986

139 (source: 2004)

3 (source: 2009)

7 (source: 2009)

Available only in Guantanamo Bay and

inaccessible to Cuban citizens.

1 (source: 2009)
133 (source: 2004)

44

Argentina

November
1986
24

45

Macau

April 11

46

Scotland

November
1987
23

47

Yugoslavia

March 24

1988 First outlet in Serbia.

48

South Korea

March 29

1988

243 (source: 2004)

49

Hungary

April 13

1988

76 (source: 2004)

50

Soviet Union/
Russia

187 (source: 2009)

1987
1,250 (United Kingdom
wide, 784 company
owned, 465 franchised,
source: 2006)

January 31 1990 First outlet in Russia.

235 (source: 2009)

660 (December 2007)

51

China

October 8

52

Chile

November
1990
19

69 (source: 2009)

53

Indonesia

February
23

1991

75 (source: 2004)

54

Portugal

May 23

1991

91 (source: 2004)

55

With a opening of a outlet inBelfast,

Northern Ireland October 14 1991
McDonald's was now available UK-wide.

56

Greece

November
1991
12

57

Uruguay

November
1991
18

58

Martinique

December
1991
16

59

Czechoslovakia

March 20

1992 First outlet in Czech Republic.

60

Guadeloupe

April 8

1992

61

Poland

June 17

1992

62

Monaco

November
1992
20

63

Brunei

December
1992
12

64

Morocco

With the opening of an outlet

December
in Casablanca the company had expanded
1992
18
into Africa and had a presence on all
continents except Antarctica.

65

Northern
Marianas

March 18

1990 First outlet in Shenzhen.

1,250 (United Kingdom

wide, 784 company
owned, 465 franchised,
source: 2006)
48 (source: 2004)

225 (source: 2009)

1 (source: 2004)

1993

66

Iceland

September
Closed down in October 2009,
1993
3
see #Former locations

0 (source: 2009)

67

Israel

October 14 1993

131 (source: December

2007)
68

Slovenia

December
1993
2

16 (source: 2009)

69

Saudi Arabia

December
1993
8

60 (source: 2009)

70

Botswana

May 13

1994

71

Kuwait

June 15

1994

72

New Caledonia

July 26

1994

73

Oman

July 30

1994

74

Egypt

October 20 1994

50 (source 2003)

75

Bulgaria

December
1994
10

19 (source: 2005)

76

Bahrain

December
1994
15

8 (source: 2004)

77

Latvia

December
1994 First outlet in the Baltics.
15

78

United Arab
Emirates

79

Estonia

April 29

1995

7 (source: December
2009)

80

Romania

June 16

1995

50 (source: 2009)

81

Malta

July 7

1995

8 (7 in Malta, 1 in Gozo)
(source: 2009)

82

Colombia

July 14

1995

78 (source: November
2009)

83

Slovakia

October 14 1995

10 (source: 2004)

84

South Africa

November
1995
11

129 (source: 2009)

85

Qatar

December
1995
13

7 (source: 2003)

86

Honduras

December
1995
14

87

Saint Martin

December
1995
15

88

Croatia

February 2 1996

89

Western Samoa

March 2

1996

90

Fiji Islands

May 1

1996

2 (source: 2001)

91

Liechtenstein

May 3

1996

1 (source: 2009)

92

Lithuania

May 31

1996

6 (source: 2002)

93

Cyprus

June 12

1996

13 (source: 2004)

94

India

October 13 1996

46 (source: 2007)

37 (source: 2007)

9 (December 2009)

December
1994
21

16 (source: 2009)

95

Peru

October 18 1996

96

Jordan

November
1996
7

97

Paraguay

November
1996
21

98

Dominican
Republic

22 (source: 2009)

6 (source: 2009)

November
1996
30

99

French Polynesia

December
1996 First outlet in Tahiti.
10

100

Belarus

The company claimed this as McDonald's

December
1996 "100th country" although this calculation
10
included many non-sovereign territories.

101

Ukraine

May 28

102

Yemen

August 22 1997

103

Republic of
Macedonia

September
1997
6

1997

104

Ecuador

October 9

1997

105

Runion

December
1997
14

106

Isle of Man

December
1997
15

107

Suriname

December
1997
18

108

Moldova

April 30

1998
McDonald's outlets ceased operation
during the Nicaraguan civil war and re1998
established a presence in 1998 after an
absence of two decades.

109

Nicaragua

July 11

110

Lebanon

September
1998
18

111

Pakistan

September
1998
19

112

Sri Lanka

October 16 1998

113

Georgia

February 5 1999

114

San Marino

July 6

115

Gibraltar

August 13 1999

116

Azerbaijan

November
1999
6

117

French Guiana

February
22

118

American Samoa

September
2000
29

119

Kazakhstan

January 1

1999

2000

2003

57 (source: 2007)

10 (source: 2007)

25 (source: 2005)

120

Mayotte

May 1

2003

121

Montenegro

June 1

2004 First outlet in Podgorica.

122

Algeria

June 1

2006

123

Iraq

August 10 2006

124

Bosnia and
Herzegovina

October 9

One location in Baghdad, but there is a

knockoff calledMaDonal.

1 (source: 2006)

2009 First outlet in Sarajevo.

Former locations:
1. (1994 - two days) Iran
2. (1996 - six months) Barbados [1] - slow sales
3. (1997-2002) Bolivia [2] - closed due to slow sales and cost
4. (1997-2003) Trinidad and Tobago [3]
5. (1985-1995) Bermuda [4] - government influence
6. (1995-2005) Jamaica [5]

7. (1993-2009) Iceland [6] - Closed down by Icelandic affiliate Lyst ehf citing
prohibitive costs of importing foreign foodstuffs as required by McDonald's. Its
former McDonald's outlets will be re-branded as its own chain of Metro restaurants
offering similar service and menus with domestically produced ingredients.
8. (late 60's - early 70's) Canada A McDonalds outlet opened for a short period in
Toronto, at the corner of Yonge Street and Cummer Avenue. It failed and was sold.
The tops of the golden arches that surrounded the restaurant were sawed off, leaving
only the golden bases and the name was changed to Wimpy's Hamburgers. It was the
first attempt to open a McDonalds in Canada and failed.

Countries without McDonald's locations:

Ask Yahoo! compared the United States Department of State's list of independent states to a
list of franchises on the McDonald's website, and derived that the following countries don't
have McDonald's locations.
LATIN AMERICA AND THE CARIBBEAN (15 out of 35 countries):
Antigua
and
Barbuda, Barbados, Belize, Bolivia, Bermuda, Dominica, Grenada, Guyana, Haiti, Jamaica, S
aint Kitts and Nevis, Saint Lucia,Saint Barthlemy, Saint Vincent and the
Grenadines and Trinidad and Tobago

In addition there is a McDonald's restaurant in the Guantanamo Bay Naval Base, land leased
from Cuba that hosts a US Naval facility.
NORTH AMERICA (1 out of 23 countries):
Greenland
EUROPE (7 out of 50 countries):
Albania, Armenia, Northern Cyprus, South Ossetia, Iceland, Vatican City and Kosovo
THE MIDDLE EAST AND NORTH AFRICA (5 out of 19 countries):
Iran, Libya, Syria, Tunisia, and Western Sahara.
ASIA (17 out of 47 countries):
Afghanistan, Bangladesh, Bhutan, Burma (also
known
Myanmar), Cambodia, Kyrgyzstan, Laos, Maldives, Mongolia, Nepal, North
Korea,Palestine, Tajikistan, Timor-Leste, Turkmenistan, Uzbekistan and Vietnam

as

SUB-SAHARAN AFRICA (48 out of 53 countries):

Angola, Benin, Burkina
Faso, Burundi, Cameroon, Cape
Verde, Central
African
Republic, Chad, Comoros, Republic of the Congo,Democratic Republic of the Congo, Cte
d'Ivoire, Djibouti, Equatorial
Guinea, Eritrea, Ethiopia, Gabon, Gambia, Ghana, Guinea, Guinea-Bissau, Kenya, Lesotho,
Liberia, Madagascar, Malawi, Mali, Maseru, Mauritius, Mauritania, Mozambique, Namibia,
Niger, Nigeria, Rwanda,So
Tom
and
Prncipe, Senegal, Seychelles, Sierra
Leone, Somalia, Sudan, Swaziland, Tanzania, Togo, Uganda, Zambia, and Zimbabwe
OCEANIA (10 out of 15 countries):
Kiribati, Marshall
Islands, Micronesia, Nauru, Palau, Papua
Islands, Tonga, Tuvalu and Vanuatu

New

Guinea, Solomon

Golden Arches Theory of Conflict Prevention:

In Thomas L. Friedman's 1999 book The Lexus and the Olive Tree the following observation
was presented: "No two countries that both had McDonald's had fought a war against each
other since each got its McDonald's". While that statement was somewhat tongue-in-cheek,
his point was that due to globalization, countries that have made strong economic ties with
one another have too much to lose to ever go to war with one another. Regardless of whether
the statement is true, the conclusions to be drawn are unclear. The global expansion of
McDonald's restaurants is a relatively recent phenomenon when put into the context of the
history of warfare, and, with a few notable exceptions, has proceeded into relatively stable
markets.

The 2008 South Ossetia war between Russia and Georgia is a counterexample to the theory,
both countries having McDonald's at the time (started in 1990 and 1999, respectively).
[4]
Other conflicts that provide possible counterexamples, depending on what one considers "a
war", include the 1989 United States invasion of Panama, the bombing of Serbia, and
the Kargil War along with ongoing skirmishes between Indiaand factions of Pakistan over
the Kashmir region.
The appearance of McDonald's does not end an existing state of war: the states
of Lebanon and Israel have been under a state of war since 1973, with South Lebanon
occupied until May 2000 and a significant flareup in 2006, which did not hinder the
establishment of McDonald's franchises in Israel and Lebanon in 1993 and 1998,
respectively. The two countries engaged in a brief state of warfare in the summer of 2006.

McDonalization
The American sociologist George Ritzer has attracted wide attention with his concept
of "the McDonaldization of society" (expounded in his book of the same names). In his book,
Ritzer analyses the particular ways in which the success of the American hamburger chain
has impacted upon not only economic patterns, but in particular on a multitude of facets of
social life in general. Basing his analysis on Max Weber's theory of rationalization.
What in Ritzer's view is responsible for McDonalds' revolutionizing effect, is the fact
that its model offers four "alluring dimensions" to producer and consumer alike, namely
efficiency, calculability, predictability and control. Naturally all of these have led to
beneficial and irreversible changes which are not to be denied. Equally undeniable, however,
is the negative consequences: the ecological impact, the dehumanizing effect of ever more
automation, and the inescapable mistaking of quantity for quality.
McDonald's revolutionising influence on the fast-food industry not only in America,
but increasingly across the globe, has led to the establishment of dozens of clones in just
about every branch of the retail industry and has led to other social institutions adapting
McDonald's principles to their operations. The process by which these principles are coming
to dominate more and more sectors of society, is perceived by Ritzer to extend to education,
work, health care, travel, leisure, dieting and many more fields.
In essence, McDonaldization is the process of rationalization, albiet taken to extreme
levels. Rationalization is a sociological term that simply means the substitution of logically
consistent rules for traditional (or illogical) rules. One of the fundamental aspects of
McDonaldization is that almost any task can (and should) be rationalized.
The process of McDonaldization takes a task and breaks it down into smaller tasks.
This is repeated until all tasks have been broken down to the smallest possible level. The
resulting tasks are then rationalized to find the single most efficient method for completing
each task. All other methods are then deemed inefficient and discarded.

The result is an efficient, logical sequence of methods that can be completed the same way
every time to produce the desired outcome. The outcome is predictable. All aspects of the
process are easily controlled. Additionally, quantity (or calculability) becomes the
measurement of good performance.
The process of McDonaldization can be summarized as the way in which "the
principles of the fast-food restaurant are coming to dominate more and more sectors of
American society as well as of the rest of the world.
Since Mcdonalds standardization is a root cause of ritzers analogus comparison to
society focus would be put on such practices after understanding the dimension of
Mcdonaldization.

Dimensions of McDonaldization
Ritzers theory consists of four dimensions that are typical for fast food restaurants:

1. Efficiency:

Always choosing the optimal and fastest way to accomplish something, e.g. to make a
burger. It is an advantage for the consumers who can get what they need quickly and
without effort.
Efficiency means the choosing of means to reach a specific end rapidly, with the least amount of
cost or effort. The idea of efficiency is specific to the interests of the industry or business, but is
typically advertised as a benefit to the customer. Examples are plentiful: the drive-up window, salad
bars, fill your own cup, self-serve gasoline, ATM's, Voice Mail, microwave dinners and supermarkets
(versus the old-time groceries where you gave your order to the grocer). The interesting element here
is that the customer often ends up doing the work that previously was done for them. And the
customer pays for the "privilege." We end up spending more time, being forced to learn new
technologies, remember more numbers, and often pay higher prices in order for the business to
operate more efficiently (maintain a higher profit margin).

2. Calculability:
The idea that quantity is more important than quality. McDonalds equals quantity
with quality and wants to make the impression that a large amount of food, prepared
in a short amount of time, is the same as a high quality product. The costumer gets
more food, but its quality and uniqueness are low.
Perhaps it is in its dimension of calculability that the character of the McDonald's
model is best revealed. Exactly so many patties have to come from a pound of meat, the buns
must be of a certain exact size and the patties again have to have a certain limited fat content
so that, after being cooked, it will still have a larger diameter than the buns, the fries must be
of a certain thickness and the bags must never be too full or too empty. It is easy to see how
seemingly neutral measures, meant to ensure standardization, eventually lead to the reduction
of the processes of production to a game of numbers. Even though this may not be too
harmful in the case of hamburgers and fries, the spread of an attitude like this will in the case
of the majority of industries of necessity lead to depersonalisation of both customers and
workers. Another facet of calculability is the accent that is being put on size. In the case of
McDonald's the very example is the Big Mac, but a multitude of examples can be gathered
from just about every type of business, whether in America or elsewhere. This inevitably
leads to quantity being mistaken for quality.

3. Predictability:
The consumer always knows what kind of service and product he will get, because
taste of the burger and behavior of the workers towards customers are standardized
worldwide.
Predictability is maybe the one dimension of the McDonald's setup that is most
directly aimed at how it is perceived by its customers. It is imperative that the products must
be the same everywhere, so that being in Moscow or Peking (or Johannesburg, for that
matter) wouldn't be that big a problem if you get homesick: at least McDonald's would be the
same as it is back home. Naturally this would preclude any possibility of cus- tomers
expecting anything else than the standard McDonald's fare (in any case, why should they?)
and, more important, of any McDonald's employee showing a tendency towards innovation
or initiative.
4. Control:
Employees of a McDonalds restaurant have to follow strict rules for food
preparation, they have to dress uniformly and they need to smile when receiving orders from
customers. A lot of their work is replaced by machines that they can operate in only one way.
The McDonalds corporation controls the franchisee of the restaurant.

He has to follow the corporations rules, like getting the materials only from specific
suppliers. This includes bread and meat, but also cleaning agent and toilet paper.
The dimension of control, in so far as it has not been implied by the foregoing, is
attained "...especially through the substitution of nonhuman for human technology..." (Ritzer,
1996, p. 11). This tendency, by far not unique to McDonald's, enable the company to far
better control the uniformity of production and to at least partly eliminate the hassles of
having to deal with human beings. Even the implied threat of replacing human with other
technology enables further control over employees. But it is not only the employees that need
to be controlled, but also the customers. This is ac- complished by a range of subtle measures,
among which not the least is the restriction of menus to a limited number of items, the
utilization of customers to do work them- selves, such as carrying food to the tables and litter
away from it, and of course the availability of hard chairs which certainly does not encourage
customers to linger.
There are other dimensions of McDonaldization that Ritzer didn't include with the
main four, but are worthy enough for prime attention. They are:

Irrationality - A side effect of over-rationalized systems. Ritzer himself hints that this
is the fifth dimension of McDonaldization. An example of this could be workers on an
assembly line that are hired and trained to perform a single highly rationalized task.
Although this may be a very efficient method of operating a business, an irrationality
that is spawned can be worker burnout.
Deskilling - A work force with the minimum abilities possible to complete simple
focused tasks. This means that they can be quickly and cheaply trained and are easily
replaceable.
Consumer Workers - One of the sneakiest things about McDonaldization is how
consumers get tricked into becoming unpaid employees. They do the work that was
traditionally performed by the company. The prime example of this is diners who bus
their own tables at the fast food restaurant. They dutifully carry their trash to friendly
receptacles marked "thank you." (The extreme rationalization of this is the drive-thru;
consumers take their trash with them!) Other examples are many and include: ATM's,
salad bars, automated telephone menus, and pumping gas.

Supply chain the cause to the term Mcdonaldization

Supply Chain is one of the critical factors for the smooth functioning of any business.
And when we are talking about fast food business with McDonalds as the subject of the
study it can expected a Supply Chain model of one of the highest precisions. It is this
unmatched Supply Chain Structure, which not just ensures on time delivery of raw materials
and supplies to McDonalds but also enables it to cut down on its cost and maximize
profitability along with maintaining highest quality standards of its products. The level of
commitment of McDonalds can be gauged from the fact that even before it set up its first
restaurant in the country it infused Rs 400 Crore to set up its delivery mechanism.
McDonalds initiative to set up an efficient supply chain and deploy state-of-art technology
changed the entire Indian fast food industry and raised the standards of performance to
international levels.
McDonald's is committed to providing quality products while supporting other Indian
businesses. And so, we spent a few years setting up a unique Supply Chain, even before we
opened our first restaurant in India.
A Supply Chain is a network of facilities including - material flow from suppliers and
their "upstream" suppliers at all levels, transformation of materials into semi-finished and
finished products, and distribution of products to customers and their "downstream"
customers at all levels. So, raw material flows as follows: supplier - manufacturer
distributor retailer consumer. Information and money flows in the reverse direction. The
balance between these 3 flows is what a Supply Chain is all about.

When there is a balance in the finished product ordering, the Supply Chain operates at
its best. Any major fluctuation in the product ordering pattern causes excess / fluctuating
inventories, shortages / stock outs, longer lead times, higher transportation and manufacturing
costs, and mistrust between supply chain partners. This is called the Bullwhip Effect.
Depending on the situation, the Supply Chain may include major product elements,
various suppliers, geographically dispersed activities, and both upstream and downstream
activities. It is critical to go beyond ones immediate suppliers and customers to encompass
the entire chain, since hidden value often emerges once the entire chain is visualized. For
example, a diesel engine manufacturer may be able to integrate a GPS locator system into its
engine control system. Its immediate customer, a heavy truck manufacturer, may see no need
for this functionality. However, the downstream customer, a trucking company with a large
fleet, may be very interested in a locator system. Understanding the value to the downstream
customer is part of the supply chain management process.
McDonald's had been working critically on its supply chain part. Considering, an
international brand trying to make inroads into the Indian consciousness, its Indian supplier
partners were developed in such a manner that made them stay with the company from the
beginning. The success of McDonald's India is a result of its commitment to sourcing almost
all its products from within the country. For this purpose, it has developed local Indian
businesses, which can supply them the highest quality products required for their Indian
operations." As per today's standings, McDonald's India works with as many as 38 Indian
suppliers on a long-term basis, besides several others standalone restaurants working with it,
for various requirements.
McDonald's entered its first distribution partnership agreement with Radha Krishna
Foodland, a part of the Radha Krishna Group engaged in food-related service businesses. The
association goes back to July 1993, when it studied the nuances of McDonald's operations
and requirements for the Indian market.Better facilities and infrastructures were created along
with new systems by them to satisfy McDonald's high demands, which finally culminated
into an agreement with McDonald's India, for Radha Krishna Foodland to serve as
distribution centres for our restaurants in Delhi and Mumbai." As distribution centres, the
company was responsible for procurement, the quality inspection programme, storage,
inventory management, deliveries to the restaurants and data collection, recording and
reporting. Value-added services like shredding of lettuce, re-packing of promotional items
continued since then at the centres playing a vital role in maintaining the integrity of the
products throughout the entire 'cold chain'. The operations and accounting is totally
transparent and is subject to regular audits.
McDonald's had worked aggressively to attain the right suppliers and systems that
ensured that 90 per cent of yield was indigenous before the doors were opened to consumers.
The only products that we used to import were oil and fries, for which we have had made
arrangements to manufacture the oil in India. We ensured that the products developed locally
abide by global McDonald's standards,"

Over the last 10 years, the company has gained experience and adopted procedures
that helped in maintaining a continuous supply of food products irrespective of the climatic
conditions.Our logistics and warehousing system is robust that prepares us to deliver products
at the same temperature throughout, without a single break in the cold chain."

Two Task orientated strategies

The general approaches followed by Mcdonalds for purchasing and logistic

Purchasing

The 3 legged stool: Corporation Franchisees Suppliers

Exclusive, certified facilities

Handshake agreements, Trust

Long term win-win partnership, risk sharing

Rigorous product and service specifications

Strong focus on quality, product specification and environmental audits

Decentralized supplier structure, zone consolidation for multinational

suppliers

Distributor is wholesaler for Restaurants

Logistics

~100 sales items in the restaurant

~400 SKUs in the warehouse (Hubs: up to 1,500)

~200 restaurants per DC (~180 DCs globally)

Delivery frequency: ~3/wk, higher in urban areas

2-3 stops per route

Exclusive distributors (3PL)

Freight consolidation (via freight forwarders)

Long term partnerships with service providers, risk sharing

Strong quality focus (Cold Chain, HACCP, QIP)

McDonalds Logistics Standards

DQMP (Distributor Quality Management Process)
For over 50 years, McDonalds has been serving customers its famous sandwiches,
fries and salads. Thanks to its stellar food safety program, McDonalds delights each day over
50 million global citizens from young to old with confidence. In order to boost the level of
assurance in its food safety program, McDonalds Europe decided to outsource its supply
chain auditing. More specifically, McDonalds Europe targeted certification bodies to audit its
food suppliers against own standard SQMS (Supplier Quality Management System) or
distribution centres against DQMP (Distributor Quality Management Process). The company
required an unbiased view from certification leaders capable of evolving into veritable

partners for McDonalds and its suppliers. As a result, McDonalds Europe provided its
suppliers with a short-list of pre-approved certification bodies from which they could select
one to conduct required audits.For a certification company to make it onto the list, it had to
undergo a stringent
six-month approval process.
Key steps in our certification process are:
Definition of certification scope
Pre-audit (optional): audit of your current position against the standards requirement
On-site audit: including a traceability test
Central review of audit report and shipment to McDonalds Re-audit according to SQMS or
DQMP frequencies.

Quality Control (HACCP / QIP)

Hazard Analysis Critical Control Point (HACCP) is a systematic approach to
food safety that emphasizes prevention within our suppliers' facility and restaurants
rather than detection through inspection of illness or presence of microbiological data.
Based on HACCP guidelines, control points and critical control points for all
McDonald's major food processing plands and restaurants in India have ben
identified. The limits have been established for those followed by monitoring,
recording and correcting any deviations. The HACCP verification is done at least
twice in a year and certified.

Cold Chain standards

Cold Chain was one of the unique concepts of McDonalds supply chain in
India, on which it had spent more than six years to get the system into place. This
system brought about a veritable revolution, immensely benefiting the farmers at one
end and enabling customers at retail counters get the highest quality food products,

absolutely fresh and at great value. Through its unique cold chain, McDonalds has
been able to both cut down on its operational wastage, as well as maintain the
freshness and nutritional value of raw and processed food products. This has involved
procurement, warehousing, transportation and retailing of perishable food products,
all under controlled temperatures. The following list of suppliers, who build up the
major supply chain of McDonalds, reveal how this Cold Chain works and
contributes towards the efficiency of McDonalds.
Setting up extensive cold chain distribution system forms the lifeline of any
fast food business. In this regard, McDonald's incorporated state-of-the-art food
processing technology along with its international suppliers to pioneering Indian
entrepreneurs, who are today an integral part of the cold chain. and have imparted
technical training to all our suppliers on how to operate the imported machineries,
educated them on the McDonald's philosophy of Quality, Service, Cleanliness and
Value (QSCV) in order to provide standardised food to our customers."
The 'cold chain', on which the QSR major has spent more than six years for
setting up the same in India, has brought about a veritable revolution, immensely
benefiting the farmers at one end and enabling customers at retail counters.
McDonald's finding the factor of cold room being vital ensured that even before
vegetable from farms enters the refrigerated zones, they are locked in a pre-cooling
room to remove field heat. Vegetables are placed in the pre-cooling room within half
an hour of harvesting where rapid cooling decreases the field temperature of
vegetables to 2C within 90 minutes. Then a large cold room (a refrigerated van) is
used for transportation to the distribution centers. In the van, the temperature and
relative humidity of crop is maintained at 1-4C and 95 per cent, respectively and the
flavours and freshness are locked at -35C.

Hygiene Regulations
All suppliers adhere to government regulations on food, health and hygiene while
continuously maintaining McDonald's recognised standards. As the ingredients move from
farms to processing plants to the restaurant, McDonald's Quality Inspection Programme
(QIP) carries out quality checks at over 20 different points in the Cold Chain system. Setting
up of the Cold Chain has also enabled us to cut down on operational wastage

CONCLUSION
Mcdonalds had a strong homogeneous effect on the culture in its home country the
same cannot be said about the countries be said about the countries it expanded to. There its
localization process was rather about the countries it expanded to. There its localization
process was rather about assimilating into the cultural than to suppress it.
On the one side, Mcdonalds leads to a standardized and homogenous global
consumer culture, but on the other side , it brings variety ,diversity and innovation to many
parts of the world. It contributes to the creation of a hybrid global culture ,especially as we
saw in asia . When the localization process of Mcdonalds is viewed out of the customer , the
risk is leading towards a homogenous culture is smaller than the theory of Mcdonaldization
suggests.
The expration of mcdonalds into Germany did not earse local traditions, because it
was something completely new and thus needed its own category . anyway ,it changed
publics eating habits in Japan and replaced the traditional parks and teahouses as places for
old people to meet.
The spread of the fast food culture also bars some risks. Even though it did not lead
to a homogenous global culture yet, it could lead towards what is the case in the USA now in
just some decades. I think this is possible because the whole world is becoming more hectic
and because the values of family and having a home-cooked meal together are declining.
Other than culture, the spread of fast food corporations can lead to many economical
risks when they become a dominant factor in the local economy. As usual when it comes to
globalization, the average person will be the looser of such monopolies.

Bibliography

www.google.com

www.wikipedia.com

www.mcdonaldsabout.com

www.dailyfinalce.com

www.yahooanswers.com

www.scribd.com

www.slideshare.net