“One world, One Burger”- McDonald’s

WELCOME TO
THE WORLD OF McDonald’s
 Hi, friends I am
Ronald’s
Guess !!!!!! Why I am here in ICMHRD
YES, I am here to tell you about
my story.
Story of McDonald's

But
Friends,

These are my three friends who

help me to tell you my story
Let me introduce them
Let me introduce to my friends, They are from Dual A

Hi, this Is
Dhiraj
Hi!!!! I am
Gaurav

Hi, I am
Puneet And,I am
Ramandeep
 So, Let’s go, Listen My story, Agenda of My story is

AGENDA
• HISTORY
• SOME FACTS ABOUT
McDONALD’S
• VISION
• PAST AND PRESENT
STRATEGY
• SWOT ANALYSIS
• 7 P’S
• CRM
• ORGANISATIONAL
STRUCTURE
McDonald's Mission Statement

"McDonald's vision is to be the world's

best quick service restaurant
experience. Being the best means
providing outstanding quality, service,
cleanliness, and value, so that we make
every customer in every restaurant
smile."
One’s upon a time
When I
was Baby
 Mcdonald’s History
 McDonald's was started as a drive-in
restaurant by two brothers, Richard
and Maurice McDonald in California,
US in the year 1937. The business,
which was generating $200,000 per
annum in the 1940s, got a further boost
with the emergence of a revolutionary
concept called 'self-service.'
 The brothers used assembly line
procedures in their kitchen for mass
production. Prices were kept low. Speed,
service and cleanliness became the
critical success factors of the business. By
mid-1950s, the restaurant's revenues had
.
reached $350,000.
 As word of their success spread, franchisees started showing
interest. However, the franchising system failed because the
 McDonald’s History
• At this point, Ray Kroc (Kroc), distributor for
milkshake machines.Expressed interest in the
business, and he finalized a deal with the
McDonald brothers in 1954.

•He established a franchising company, the

McDonald System Inc. and appointed
franchisees.

•In 1961, he bought out the McDonald brothers'

share for $2.7 million and changed the name of
the company to McDonald's Corporation. In
1965, McDonald's went public...

Currently McDonald's operates in 121 countries &

having more than 30000 restarunt and serving 53 Mn
customers everyday
 De
k
a IA
h
C ND
I

McDonald’s in India
McDonald’s History INDIA
• Entered in India 1996

• McDonald's India is a 50 – 50 JV
partnership between MCDONALD’S
CORPORATION (U.S.A) and two Indian
businessman Amit Jatia and Vikram
Bakshi

• Localisation:
 DON’T OFFER ANY BEEF OR PORK ITEM
IN INDIA
 IN PRODUCT LIKE MCVEGGIE, PIZZA
MCPUFF ETC.THEY USE SPICES
FAVOURED BY INDIANS
 SOFT SERVES AND MCSHAKES ARE
EGGLESS

• Actively Involver in many social activities likegi

CHILD EDUCATION, PULSE POLIOiesetc.
 History in India

• 1996 …the first McDonald’s restaurant opened on Oct.

13, at Basant Lok, Vasant Vihar, New Delhi. It was also
the first restaurant in the world not serving beef on its
menu
• 1997…the first Drive –Thru restaurant at Noida
• 1999…the first Mall location restaurant at Ansal Plaza –
New Delhi
• 2000…the first highway restaurant at Mathura
• 2001…the first thematic restaurant at Connaught Place
• 2002…the first restaurant in a food court at 3C’s,
Lajpat Nagar and the first restaurant at the Delhi Metro
Station at Inter State Bus Terminus
 McDonald’s SWOT Analysis
 Brand Equity…world-wide  International expansion
 42% of US fast-food hamburger  Only serving 1% of the world’s
business population
 Consistency of food  Growing dining-out market
 Successful items: Fries, Happy
Meal, Aloo tikki, Egg McMuffin,
Promotions
 Overseas market
 Balance sheet position

 Declining market share  Mature/overstored industry

 Weak product development  Strength of competition
 Quality and taste of products  More health-conscious
consumers
 Fluctuation of foreign exchange
rates; Economies
Next
 Income Trends
Returns
20.0%
18.0% 17.7%

16.0% 16.6%
14.7%
14.7% 14.4%
14.0%
13.0% 14.6%
12.0% 12.3%
10.2%
10.0%
9.1%
8.0%
6.7%
6.0%
4.0% 4.5%

2.0%
0.0%
1994 1995 1996 1997

Revenue Net Income Profit margin SWOT

 Whose food do Americans really like best?

Best-tasting food? Best-tasting burgers?

Wendy’s 36%* Burger King 42%

Wendy’s 32%
Burger King 32% McDonald’s 17%
McDonald’s 21%

SWOT
* Percent of respondents
 Mc -Strategies

 International Growth
 Forward Integration
-Distribution through Franchisees
 Backward Integration
-Local Sourcing, Cold Chain, Suppliers

 Market penetration & Development

- McDelivery
 New Product Development
- Aloo Tikki, Salad
 Our Products

Veg- Menu Beverages

Non- Veg Menu Frozen Desserts

Add ons Check our Meals

Next
 Beverages

Cold Coffee

Ice Tea

Soft Drinks

Mc Shakes

Hot Serves

Menu
 Cold-Coffee

Menu
 Hot Serves
Cappucino, Café Mocha, Plain Tea,
Cardamom Tea, Hot Chocolate
Nutrition at glance

Pr Ca Ca
Se Fa
ote lori rb.
rvi t
in es
ng Pr in
in in in Ca Fa
Type siz ote gm
gm kC gm rb t
(Quantity) e in s/
s/ al / s/ % %
in % se
se se se
gm rv
rv rv rv
s e
e e e

15 3
Cappucino 4 4 2 50 3 1
0

15
Café Mocha 4 4 2 47 3 3 1
0    

15
Plain Tea 2 8 1 46 1 5 0
0
15
Cardamom Tea 2 8 1 47 1 5 0
0
15
Hot Chocolate 4 17 1 90 3 11 0
0
Menu
 Ice-Tea

Menu
 McShakes
McShakes™

Nutrition at glance

Pr Ca Ca
Se Fa
ote lori rb.
rvi t
in es
ng Pr in
in in in Ca Fa
Type siz ote gm
gm kC gm rb t
(Quantity) e in s/
s/ al / s/ % %
in % se
se se se
gm rv
rv rv rv
s e
e e e

27 29
5 8
7 52 7 3 19 3
Chocolate 40 43
10 75 10 3 19 3
(S/M/L) 0 3
13 94 13 3 19 3
50 54
0 1
27 27
5 0
7 46 7 2 17 2
Strawberry 40 39
10 67 10 2 17 2
(S/M/L) 0 3
12 84 12 2 17 2
50 49
0 1

Menu
 Coca-Cola
Nutrition at glance

Pr
Ca Ca
Se ot Fa
lor rb.
rvi ei t
ies
ng n Pr in
in in
siz in ot g Ca Fa
Type kC g
e g ei m rb t
(Quantity) al m
in m n s/ % %
/ s/
g s/ % se
se se
m se rv
rv rv
s rv e
e e
e

30 12
0 6 0
0 32 0 11 0
Coca Cola 40 12 0
0 42 0 11 0
(S/M/L) 0 8 0
0 53 0 11 0
50 21
0 0

30 15
0 6
0 39 0 0 13 0
Fanta 40 20
0 52 0 0 13 0
(S/M/L) 0 8
0 65 0 0 13 0
50 26
0 0
30 14
0 4
0 36 0 0 12 0
Sprite 40 19
0 48 0 0 12 0
(S/M/L) 0 2
0 60 0 0 12 0
50 24
0 0

Menu
 Frozen Desserts

Soft Serve Cone

Mc Swirl

Soft Serve

Flavor Burst

Floats

Menu
Flavour Burst

Menu
Floats

Menu
 McSwirl
Nutrition at glance
Serving Protein Calories Fat
Carb.
size in gms / in kCal / Protein% in gms / Carb% Fat %
in gms / serve
in gms serve serve serve
81 3 20 7 159 4 24 9

Menu
 Soft Serves
Nutrition at glance
Calorie
Protein Carb. Fat
Servin s
in Protein in in Fat
Type g size in Carb%
gms / % gms / gms / %
in gms kCal /
serve serve serve
serve
Soft Serve with Hot Fudge (Small) 86 3 25 3 140 4 29 4
Soft Serve with Hot Fudge (Medium) 143 6 43 5 241 4 30 4
Soft Serve with Strawberry (Small) 86 3 23 3 126 3 26 3
Soft Serve with Strawberry (Medium) 143 4 39 4 208 3 27 3

Menu
 Soft Serve Cone
Nutrition at glance

Protein Calories Fat

Serving size Carb.
in gms / in kCal / Protein% in gms / Carb% Fat %
in gms in gms / serve
serve serve serve
71 2 16 2 95 3 22 4

Menu
 Non- Veg Menu

Chicken Maharaja Mac

McChicken

Fiet-O-Fish

Chicken Mexican Wrap

Chicken McGrill

Chicken McCurry

Menu
 Filet-O-Fish
Filet-O-Fish™

Fried, breaded fillet of fish, with a

half slice of processed cheddar
cheese, special tartar sauce served
between steamed buns.

Nutrition at glance

   
Serving size Protein Carb. Fat
in gms in gms / serve in gms / serve in gms / serve

145 13 49 23

Calories
Protein% Carb% Fat %
in kCal / serve

462 9 34 16

Menu
 Chicken Maharaja Mac
Chicken
Maharaja Mac™

2 Grilled chicken patties with a smoke-

flavoured mayonnaise, fresh onions,
tomatoes, processed cheddar cheese in a
toasted sesame seeded bun.

Nutrition at glance

Serving size Protein Carb. Fat

in gms in gms / serve in gms / serve in gms / serve

255 32 54 26

Calories
Protein% Carb% Fat %
in kCal / serve

573 12 21 10

Menu
 Chicken McCurry Pan
Chicken McCurry Pan™
[Chicken ‘n’ Tomato]

A blend of Italian tomato curry

sauce tempered with thyme, basil
and oregano mixed with chicken
and capsicum, freshly baked on a
rectangular spiced bread and
topped with cheese.
Nutrition at glance

Protein Carb. Fat

Serving size
in gms / in gms / in gms /
in gms
serve serve serve

190 18 48 11

Calories
in kCal / Protein% Carb% Fat %
serve

365 10 25 6
Menu
 McChicken
McChicken™

Specially seasoned, breaded & fried

chicken patty, with lettuce, veg.
mayonnaise and toasted sesame seed
bun.

Nutrition at glance

Protein Carb. Fat

Serving size
in gms / in gms / in gms /
in gms
serve serve serve

172 17 48 23

Calories
in kCal / Protein% Carb% Fat %
serve

470 10 28 14

Menu
 Chicken McGrill
Chicken McGrill™

Grilled chicken patty flavoured with

mint mayonnaise, and dressed with
fresh onions and tomatoes in a
toasted bun.

Nutrition at glance

Protein Carb. Fat

Serving size
in gms / in gms / in gms /
in gms
serve serve serve

140 16 35 12

Calories
in kCal / Protein% Carb% Fat %
serve

309 11 25 8
Menu
 Chicken Mexican Wrap
Chicken Mexican Wrap™

A traditional Mexican soft flat bread that

envelops crispy golden brown chicken
encrusted with a Mexican Cajun coating,
and a salad mix of iceberg lettuce, carrot,
red cabbage and celery, served with
eggless mayonnaise, tangy Mexican Salsa
sauce and cheddar cheese
Nutrition at glance

Protein Carb. Fat

Serving size
in gms / in gms / in gms /
in gms
serve serve serve
192 14 37 21
Calories
in kCal / Protein% Carb% Fat %
serve
392 7 19 11

Menu
 Veg Menu
                  
McVeggie™

McAloo Tikki™

Paneer Salsa Wrap

Crispy Chinese

Veg McCurry Pan™

Pizza McPuff™

Menu
 Crispy Chinese
Crispy Chinese

A crispy patty that is seasoned with

oriental flavours, topped with a
creamy vegetarian Schezwan sauce
and crunchy iceberg lettuce and
served between two fresh buns.
Nutrition at glance

Protein Carb. Fat

Serving size
in gms / in gms / in gms /
in gms
serve serve serve

144 7 50 19

Calories
in kCal / Protein% Carb% Fat %
serve

400 5 34 13

Menu
 McALOO Tikki
McAloo Tikki™

Fried breaded potato & peas patty

that is flavoured with a special spice
mix, fresh tomato slices, onion, and
veg. tomato mayonnaise between
toasted buns.

Nutrition at glance

Serving Protein Carb. Fat

size in gms / in gms / in gms /
in gms serve serve serve

150 6 53 15

Calories
in kCal / Protein% Carb% Fat %
serve

367 4 35 10
Menu
 McCurry Pan
Paneer Salsa Wrap™

A traditional Mexican soft flat bread

that envelops crispy golden brown
cottage cheese encrusted with a
Mexican Cajun coating, and a salad
mix of iceberg lettuce, carrot, red
cabbage and celery, served with
eggless mayonnaise, tangy Mexican
Salsa sauce and cheddar cheese.
Nutrition at glance

Protein Carb. Fat

Serving size
in gms / in gms / in gms /
in gms
serve serve serve

194 16 39 27

Calories
in kCal / Protein% Carb% Fat %
serve

463 8 20 14
Menu
 McVeggie
McVeggie™

Breaded fried vegetable patty consist

of peas, carrots, green, beans, red
capsicum, potatoes, onions, rice and
seasoning.  The burger also includes
lettuce, eggless mayonnaise in a
toasted sesame seed bun.

Nutrition at glance

Protein Carb. Fat

Serving size
in gms / in gms / in gms /
in gms
serve serve serve
172 8 60 25
Calories
in kCal / Protein% Carb% Fat %
serve
491 4 35 14

Menu
 Pizza McPuff
Veg McCurry Pan™
[Brocolli ‘n’ Mushroom]

A rich Béchamel eggless sauce

mixed with exotic vegetables like
broccoli, baby corn, mushrooms, red
capsicum and freshly baked on
rectangular spiced bread with a
cheese topping.
Nutrition at glance

Protein Carb. Fat

Serving size
in gms / in gms / in gms /
in gms
serve serve serve

190 18 48 11

Calories
in kCal / Protein% Carb% Fat %
serve

365 10 25 6

Menu
 Paneer Salsa Wrap
Pizza McPuff™

Mixed vegetables (carrot, beans,

capsicum, onion and green peas),
mozzarella cheese mixed with
tomato sauce and spice blend
coated with a savoury dough.

Nutrition at glance

Protein Carb. Fat

Serving size
in gms / in gms / in gms /
in gms
serve serve serve
80 4 26 14
Calories
in kCal / Protein% Carb% Fat %
serve
245 5 33 17

Menu
 Past Mc Product Strategies

• Product Development
– Successes: Fries, Happy Meal, Big Mac, Egg
McMuffin, Promotions
– Failures: McPizza, Fajita, Carrot Sticks,
McLean, and the Arch Deluxe
I Love Children

I Have Gifts
For them,
They Can play
Games also
I Love Children- Happy Meal
Pro
m otio
n
World Location Year wise
 Place

McDonald's opened its doors in India in October 1996. Ever since then, our
family restaurants in Mumbai, Delhi, Pune, Ahmedabad, Vadodara,
Ludhiana, Jaipur, Noida Faridabad, Doraha, Manesar and Gurgaon have
proceeded to demonstrate.
 McDonald’s Outlets
• The ambience and the environment is same at
all the outlets of McDonald's.
Pepole

• Each outlet is headed by a

Restaurant Manager . He is
responsible for the daily operation
and customer interaction.

• Delivery Crew Member carries

basic operation of a restaurant.
Ensures customer satisfaction at
the restaurants.

• In order to motivate there

employees they give them stars as
per their performance.
 Training At Hemburger
Hamburger University – McDonald’s Center of Training Excellence

Since its inception, training at Hamburger University has emphasized

consistent restaurant operations procedures, service, quality and
cleanliness. It has become the company’s global centre of excellence for
McDonald’s operations training and leadership development
 February 24, 1961, Hamburger Universities first class of 14 students
graduated
 Today, more than 5,000 students attend HAMBURGER UNIVERSITY
each year
 Since 1961, more than 80,000 restaurant managers, mid-managers
and owner/operators have graduated from this facility
Organizational Chart
 Physical Evidence

Cleanness, speed, Quality

and transparency of
process is biggest evidence
Social Events sponsored by McDonald's
 Supply Chain

Our growth plan for the next three years is more a function of getting our
logistics and cold chain right rather than going to far off places.“

- Amit Jetia, managing director, McDonald's India, Mumbai Joint Venture,

Supply Chain

Overview Cold Chain LocalSourcing Suppliers

 Supply Chain

Suppliers Mfg Dist. Retai Customer

Material Flow
Supply Chain
Trikaya Agriculture - Supplier of Iceberg
Lettuce.
successfully grows speciality crops like iceberg lettuce, special
herbs and many oriental vegetables. Farm infrastructure
features:

A specialized nursery with a team of agricultural experts.

Drip and sprinkler irrigation in raised farm
beds with fertilizer mixing plant.

Pre-cooling room and a large cold room for post harvest
handling.
A large cold room and a refrigerated van for transportation where the
temperature and the relative humidity of this crop is maintained
between 1º C and 4º C and 95% respectively

Vista Processed Foods Pvt. Ltd. - Supplier of

Chicken and Vegetable range of products.
A joint venture with OSI Industries Inc., USA, and McDonald's India Pvt.
Ltd. Vista Processed Foods Pvt. Ltd. produces a range of frozen chicken and
vegetable foods.  A world class infrastructure at its plant at Taloja,
Maharashtra, has:
 Separate processing lines for chicken and vegetable foods.
 Capability to produce frozen foods at temperature as low as -35 Degree
Celsius to retain total freshness.
 International standards, procedures and support services.
Supply Chain
Dynamix Diary - Supplier of Cheese.
Dynamix has brought immense benefits to farmers in
Baramati, Maharashtra by setting up a network of milk
collection centres equipped with bulk coolers.  Easy
accessibility has enabled farmers augment their income by
finding a new market for surplus milk.  The factory has:
 Fully automatic international standard processing
facility.
 Capability to convert milk into cheese, butter/ghee,
skimmed milk powder, lactose, casein & whey protein
and humanised baby food.
 Stringent quality control measures and continuous
Research & Development.

Radhakrishna Foodland -
Distribution Centre.
An integral part of the Radhakrishna Group, Foodland
specialises in handling large volumes, providing the
entire range of services including procurement, quality
inspection, storage, inventory management, deliveries,
data collection, recording and reporting.  Salient
strengths are:
 A one-stop shop for all distribution management
services.
 Dry and cold storage facility to store and transport
perishable products at temperatures up to - 22 Degrees
Celsius.
 Effective process control for minimum distribution
cost.
 CRM
• They have a feedback And suggestion form available at each
outlet.
• For the techno savy Customers they have a online Feed back form.
• All the upcoming product and related info are posted on there
website-
www.McDonald's.com
 Jumbo King — The branded vada pav chain

Introduced automation, packaging and Created a

Brand

 Jumbo King is a food chain that has branded

Mumbai’s favorite snack, The Vada pav.
 Vada pav is an INR 500 million market in
Mumbai itself, out of which jumbo king’s share is
more than 100 million
 Jumbo king has broken the stereotype method
Dheraj Gupta and introduce hygienic manhandled vadapv.
 It has become Mumbai's most visited brand
with over 40,000 customers per day
 Jumbo king considers McDonald's it’s “guru”
and aims to become India’s McDonald’s.
Income Trends
Last 12
5 Year Growth
Months

Sales 22.8 Bil 7.7%

Income 1.7 Bil 11.9%

Dividend Rate 1.00 34.17%

Dividend Yield 2.03% 1.90%

More financials

Fundamental Data
Debt/Equity Ratio 0.54
Gross Margin 32.78%
Net Profit Margin 7.25%
Total Shares Outstanding 1.2 Bil
Market Capitalization 59.30 Bil
Earnings/Share 1.67
 Balance sheet of McDonald’s
PERIOD ENDING 30-Jun-07 31-Mar-07 31-Dec-06 30-Sep-06

Assets
Current Assets

Cash And Cash Equivalents 2,142,100   2,438,400   2,136,400   4,282,700  

Short Term Investments -  -  -  - 

Net Receivables 784,600   848,000   904,200   812,500  

Inventory 1,055,500   143,700   149,000   144,500  

Other Current Assets 379,200   449,300   435,700   596,000  

Total Current Assets 4,361,400   3,879,400   3,625,300   5,835,700  

Long Term Investments 1,060,100   1,064,400   1,036,200   1,032,300  
Property Plant and Equipment 20,106,600   20,975,200   20,845,700   20,526,200  
Goodwill 2,198,300   2,254,300   2,209,200   2,156,100  
Intangible Assets -  -  -  - 
Accumulated Amortization -  -  -  - 
Other Assets 1,268,500   1,300,200   1,307,400   1,278,900  
Deferred Long Term Asset Charges -  -  -  - 

Total Assets 28,994,900   29,473,500   29,023,800   30,829,200  

Liabilities
Current Liabilities
Accounts Payable 2,120,900   2,451,000   2,739,000   4,122,100  
Short/Current Long Term Debt 288,200   613,500   17,700   454,200  
Other Current Liabilities 1,020,500   -  251,400   - 

Total Current Liabilities 3,429,600   3,064,500   3,008,100   4,576,300  

Long Term Debt 7,885,500   8,199,900   8,416,500   8,569,400  
Other Liabilities 1,652,500   1,471,000   1,074,900   1,154,300  
Deferred Long Term Liability Charges 941,600   971,100   1,066,000   1,002,900  
Minority Interest -  -  -  - 
Negative Goodwill -  -  -  - 

Total Liabilities 13,909,200   13,706,500   13,565,500   15,302,900  

Stockholders' Equity
Misc Stocks Options Warrants -  -  -  - 
Redeemable Preferred Stock -  -  -  - 
Preferred Stock -  -  -  - 
Common Stock 16,600   16,600   16,600   16,600  
Retained Earnings 25,881,200   26,592,500   25,845,600   24,585,700  
Treasury Stock (14,832,700) (14,371,900) (13,552,200) (11,858,500)
Capital Surplus 3,957,000   3,731,300   3,445,000   3,228,200  
Other Stockholder Equity 63,600   (201,500) (296,700) (445,700)

Total Stockholder Equity 15,085,700   15,767,000   15,458,300   15,526,300  

Net Tangible Assets $12,887,400   $13,512,700   $13,249,100   $13,370,200  

 Contribution to Economic Growth

• McDonald's India has already

contributed directly & indirectly
Rs. 95 crore (approx. 16 per cent
of total turnover) as revenue to
the Center and the State towards
Sales Tax, House tax and Income
Tax in the last seven years. By
2005 this amount shall see an
increase of more than 30 per cent
per annum.
BYE BYE SEE U AT McDonald’S