MC' Donald - Marketing Strategy

International Business Management
THESIS ON MARKETING STRATEGIES ADOPTED BY MC DONALDS
Submitted In Partial Fulfillment of the Requirement for the Award of Master of Business Administration (IB) (2006-2008)
SUBMITTED BY: Chandan Kumar
MAHARSHI DAYANAND UNIVERSITY ROHTAK
ACKNOWLEDGEMENT
I am sincerely thankful to all those people who have given me any kind of assistance in the making of this project report. I express my gratitude to Mr. XYZ'' who has through his vast experience and knowledge has been able to guide me, both ably and successfully towards the completion of the project. I express my gratitude to Mr. ABC. I would hereby, make most of the opportunity by expressing my sincerest thanks to all my faculties whose teachings gave me conceptual understanding and clarity of comprehension, which ultimately made my job more easy. Credit also goes to all my friends whose encouragement kept me in good stead. I am also thankful to authority of McDonalds for providing me the information. Last but not the least I would like to acknowledge my gratitude to the respondents without whom this survey would have been incomplete.
(Chandan Kumar)
PROJECT OUTLINE FOR THESIS
A study on Marketing strategies adopted by Title McDonalds (with particular reference to franchisee restaurant,) Name of the Company McDonalds Chairman Mr. JACK M.GREENBERG HARDCASTLE RESTAURANTS PVT. LTD, Address ASHIANA, 69-C, BHULABHAI DESAI ROAD, MUMBAI-400026. Specific Areas of Study MARKETING & INTERNATIONAL BUSINESS STRATEGIES.
RESEARCH METHODOLOGY (a) Primary Data Personal Interview and Structured Questionnaires
Annual Reports & Brochures, Business Magazines & (b) Secondary Data articles from internet
INDEX
Sl. No. 1 2 Topic Synopsis INTRODUCTION
The Indian Fast Food Market - An Overview
Page No. 1-2 3-4
3 4
INTRODUCTION TO PROBLEM Objectives & scope of the study

Research Objective Scope Of Study
5-6 7-8
Research methodology
Research Design Sample Design Data Collection
THEORETICAL CONCEPT
Industrialization Of Services Business Model Gap Analysis Gap Analysis And New Products Usage Gap Product Gap Competitive Gap Market Gap Analysis
10-18
DATA ANALYSIS & INTERPRETATION

Mcdonald's Corporation Mcdonald's Worldwide Mcdonald's India Marketing Strategy Use Of Sub-Strategies At Mcdonald's Job Structure Training And Education Mcdonalds India Supply Chain Corporate Social Responsibility Present Position Of Fast Food Industry Major Players In This Field Dominos Diversity Mission Statement A Brand With Bite Economical Porters Five Forces Model With Reference To Fast Food Joints Marketing Scenario At Mcdonalds Segmentation Customer Relationship Management International Business Strategies of Mcdonalds Policy And Functional Strategies Financial Analysis/Ratio Analysis Cost Analysis Environmental Analysis Of Mcdonalds External Environmental Analysis
19-82
Data Analysis, Findings And Observations From Questionnaire
83-99
9 9 10
Conclusions Recommendations Limitations
100 101-105 106
11 12
Bibliography Annexure
107 108-111
SYNOPSIS
Over the past few years the Indian economy has undergone drastic changes- changes that have had the market flooded with multinationals and a variety of products. There has been a sudden upsurge in the Indian industry and exponential growth in specific industries. Todays companies work in a war zone of rapidly changing competitors, technological advances, new laws, managed trade policies and diminishing customer loyalty. In todays world of cutthroat fierce competition, customer satisfaction is very essential to not only exist but also to excel in the market. Todays market is enormously more complex. Henceforth, to survive in the market, the company not only needs to maximize its profit but also needs to satisfy its customers and should try to build upon from there. The project title Marketing strategies and International Business strategies adopted by McDonalds is the analysis of the service Quality level of fast food industry. This project involves the service level provided by McDonalds and its competitors. The survey was conducted so as to analyze the service quality prevailing in the current industry and the improvement that can be made upon it. Market research study has been conducted in order to bring out the picture of service quality that exists in this industry and the difference in service quality that exists in the market. Like what are the customers preferences about the hospitality provided by the fast food industry.
International Business Management After this a comprehensive and comparative analysis has been made and conclusion has been made keeping in mind the detailed analysis of the findings, which has been collected through the market research.
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INTRODUCTION
The Indian Fast Food Market - An Overview
Up to the year 1995, Indian fast food market was predominantly dominated by the traditional dhabas, potential restaurants in the customers locality and some restaurants in a five star hotels. Having fast food i.e., burgers, pizzas etc., was considered to be an option for eating out. It was not at all synonymous with the American concept of fast food as a quick takeaway bite or a substitute for lunch. Apart from this fast food being available at the local restaurants and at some five star restaurants, Nirulas was the only fast food chain existing in the country with its restaurants expanding with every passing year since its inception. It has been almost 50 years now since its set up and there is hardly any one who doesnt know about Nirulas existence. Nirulas was the first one to bring fast food to India back in the 50s since then it has evolved into an eating-place with tremendous brand equity and brand recognition. It proved to be a perfect eating-place for an average middle class who wants to eat out at an affordable price that cant afford the five-star restaurants and would not want to go to the local dhabas. Nirulas almost had a monopoly for decades due to the way it has been positioned. It is a place where a person from an average middle class group to upper class group can go to eat out. Its popularity has increased over the decades. With the trends changing and the incomes rising almost anybody who can afford to eat out could go for snacks at Nirulas. However the year 1995-96 witnessed a drastic change. 1996 is considered to be the year of Indias entry into the world food market. International giants such as
International Business Management McDonalds, KFC, TGIF, Dominos, and Pizza Hut all bombarded the Indian fast food market. Before these, UK-based joint called Wimpys had established its chain in the country in 1990. By year 1996 it had about three to four joints established in Delhi. However it did not pose much of a threat to Nirulas reason being lack of variety and that Wimpys was looked at more of a hangout place rather than eating out with the family. Each of the foreign food joints that have come into the country have their own strategy lined up to differ from the rest. Each of these studied the Indian tastes and style and thereby targeted the Indian customer. An average Indian restaurant goes is no convenience eater, unlike the Americans. Customer is paying for food that tastes good (Spicy, soft, savory etc.), not for how pleasantly the stuff is served or how spotless the windows are, and wants good food for that can make him come back to the restaurant. An Indian food joint owner would definitely understand this but an American company, which comes and places itself directly without knowing the customer, is definitely in for trouble. Customer loyalty in a restaurant business is essentially low. A customer when comes to a restaurant usually looks at the quality of food, variety, ambience, speed of delivery and the location. The variety would influence the frequency of visits since taste is a dominating factor to the Indian customers. Almost all the fast food chains both Indian i.e., Nirulas and foreign i.e., McDonalds etc., are targeting the families. This serves to be an advantage because the turnaround time is short and family has higher propensity to spend because different members order larger variety of dishes. Each of these restaurants delivers quality, value and services in its own way through its line of strategies. The emphasis is on the value that the restaurant is delivering to the customers.
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INTRODUCTION TO PROBLEM
In todays era of Privatization and Globalization, as the economy is opening up the disposable income available per person is also increasing which in turn is increasing the use of fast good restaurants to get quick and hassle free meal. The fast food segment has witnessed a sea change over a past few years; virtually every big corporation in the world is busy tying a knot with the Indian partner. Hordes of multinationals and a couple of new Indian entrants are rushing headlong into markets. As a service is any act or performance that are party can offer to another that is essentially intangible and does not result in the ownership of anything its production may or may not be tied to a physical product. In Indian Fast food segment there is a Service gap in Ultimate consumer satisfaction and Fast food service providers. Service gap is a factor that causes the unsuccessful delivery. These are five gaps that cause the unsuccessful delivery: Gap between consumer expectation and management perception. Gap between management perception and service quality specification and service delivery. Gap between service delivery and external communication Gap between perceived service and expected service.
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PRESENT POSITION OF THIS INDUSTRY IN RESPECT TO SERVICE GAP

Gap between consumer expectation a management perception: While the management of pizza hut perceives that the consumers need better quality food, but the consumers may a clinically want better ambience, (Like, light, music) or work floor area. Gap between management perception Service-quality specification: The fast service provided by McDonald goes very well with its customer perceptions. Here the negotiation has perceived well what the customer wants but the main area where it lacks is that it has not specified its customer how to serve or what quality to be served. Gap Between service quality specifications & service delivery: The delivery personnel in McDonald are mainly fresh graduates without a personal degree in hotel management. If prospective customer visits except who recognize restaurant will find what have shown in media and what visible here is not same causing a difference. Gap between perceived service and expected service: The customer of McDonald and Nirulas want free home delivery but presently they are not providing, whereas Pizza Hut is providing home delivery to these customers. After this analysis we will come to know that there is service gap in this industry and there is ample scope for improvement.
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OBJECTIVE & SCOPE OF STUDY

RESEARCH OBJECTIVE
The primary objective of study was Marketing Strategies adopted by Mc Donalds. This objective is supported by four secondary objectives, achieving them will lead to the fulfillment of primary objective. They include: To find the service quality prevailing at McDonalds: To find out the service quality of McDonalds in the various areas and finding out the deficiencies prevalent in expected level of service. To Compare Service quality of Competitors vis--vis McDonalds: Comparing the service quality of McDonald along with that of Nirulas, Pizza Hut and other competitors. To find out the areas of improvement for McDonalds: To find out the ways by which McDonalds can improve upon its service quality and bring more satisfaction to customers and thus add value to its bottom line. To study the marketing strategies of McDonalds. To study how McDonalds sell their product & what they do in achieving their goals.
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SCOPE OF STUDY
This will lead to certain implications for the company as company can formulate its future strategies in order to increase their sales. Researcher had tried going in detail and studying the use of fast foods from different angles so as to analyze the issue from 360 degrees. The research tries to develop an understanding on the aspect on the whole which will help in understanding the market potential McDonalds in a holistic view.
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RESEARCH METHODOLOGY
RESEARCH DESIGN
The research process is carried out according to a designated series of steps required to be taken in a chronological order. Fundamental to the success of any research project is sound research design. It is the framework or plan for a study that guides the collection and analysis of data. The research design used for this project is exploratory in nature. The major emphasis is on the discovery of ideas. The exploratory study is also used to increase the analyst familiarity with the problem under investigation.
SAMPLE DESIGN
Target population: Customers who regularly visit the fast food restaurants. Sampling unit: Sample size: Delhi market is treated as sampling unit. 50 Customers
DATA COLLECTION
Primary Data: It will be collected from the customers visiting the restaurants
(McDonalds) with the help of questionnaire, personal interviews of the staff (McDonalds). Secondary data: It will be collected from the Newspaper Secondary data has been collected from the companys information brochure and Internet.
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THEORETICAL CONCEPTS
Marketing is the flow of goods and services from the producer to consumer. It is based on relationship and value. In common parlance it is the distribution and sale of goods and services. Marketing can be differentiated as: 1. Marketing of products 2. Marketing of services Marketing includes the services of all those indulged may it be then the wholesaler retailer, Warehouse keeper, transport etc. In this modern age of competition marketing of a product or service plays a key role. It is estimated that almost 50% of the price paid for a commodity goes to the marketing of the product in US. Marketing is now said to be a term which has no particular definition as the definitions change everyday. Services marketing is marketing based on relationship and value. It may be used to market a service or a product. Marketing a service-base business is different from marketing a product-base business. There are several major differences, including: The buyer purchases are intangible The service may be based on the reputation of a single person It's more difficult to compare the quality of similar services The buyer cannot return the service Service Marketing mix adds 3 more p's, i.e. people, physical environment, process service and follow-through are keys to a successful venture.
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International Business Management The major difference in services marketing versus regular marketing is that instead of the traditional "4 P's," Product, Price, Place, Promotion, there are three additional "P's" consisting of People, Physical evidence, and Process. Service marketing also includes the servicescape referring to but not limited to the aesthetic appearance of the business from the outside, the inside, and the general appearance of the employees themselves. Service Marketing has been relatively gaining ground in the overall spectrum of educational marketing as developed economies move farther away from industrial importance to service oriented economies. "Managing the evidence" refers to the act of informing customers that the service encounter has been performed successfully. It is best done in subtle ways like providing examples or descriptions of good and poor service that can be used as a basis of comparison. The underlying rationale is that a customer might not appreciate the full worth of the service if they do not have a good benchmark for comparisons. Developing a marketing strategy is much the same for products and services, in that it involves selecting target markets and formulating a marketing mix. Thus, Theodore Levitt suggested that "instead of talking of 'goods' and of 'services', it is better to talk of tangibles and 'intangibles. Levitt also went on to suggest that marketing a physical product is often more concerned with intangible aspects than with its physical properties. Charles Revson made a famous comment regarding the business of Revlon Inc.: In the factory we make cosmetics. In the store we sell hope.
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INDUSTRIALIZATION OF SERVICES BUSINESS MODEL

The industrialization of services business model is a business model used in strategic management and services marketing that treats service provision as an industrial process, subject to industrial optimization procedures. It originated in the early 1970s, at a time when various quality control techniques were being successfully implemented on production assembly lines. Theodore Levitt (1972) argued that the reason the service sector suffered from inefficiency and wide variations in quality were that it was based on the craft model. Each service encounter was treated as an isolated event. He felt that service encounters could be systematized through planning, optimal processes, consistency, and capital-intensive investments. This model was the foundation of the success of McDonalds and many other mass service providers in the 1970s, 80s, and 90s. Unfortunately, the application of assembly line techniques to service provision had several undesirable consequences. Employees found working under these conditions disempowering, resulting in low morale, high staff turnover, and reduced service quality. One of the most difficult aspects of this model for employees to deal with was the "smile incentives". Employees were instructed to put a smile on their face during the service encounter. This manufacturing and commercialization of apparent happiness has been criticised by many commentators, particularly Mundie (1987). Also many customers prefer the "personal touch". By the early 1990s most service providers turned their attention back to the human element and personalized their services. Employees were empowered to customize the service encounter to the individual characteristics of customers.
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GAP ANALYSIS
In business and economics, gap analysis is a business resource assessment tool enabling a company to compare its actual performance with its potential performance. At it's core are two questions: Where are we? Where do we want to be? If a company or organization is under-utilizing resources it currently owns or is forgoing investment in capital or technology then it may be producing or performing at a level below its potential. This concept is similar to the base case of being below one's production possibilities frontier. This goal of the gap analysis is to identify the gap between the optimized allocation and integration of the inputs and the current level of allocation. This helps provide the company with insight into areas that have room for improvement. The gap analysis process involves determining, documenting and approving the variance between business requirements and current capabilities. Gap analysis naturally flows from benchmarking and other assessments. Once the general expectation of performance in the industry is understood it is possible to compare that expectation with the level of performance at which the company currently functions. This comparison becomes the gap analysis. Such analysis can be performed at the strategic or operational level of an organization. Gap analysis' is a formal study of what a business is doing currently and where it wants to go in the future. It can be conducted, in different perspectives, as follows: Organization (e.g., human resources), Business direction, Business processes, Information technology. Gap analysis provides a foundation for measuring investment of time, money and human resources required to achieve a particular outcome (e.g. to 19
International Business Management turn the salary payment process from paper based to paperless with the use of a system). Note that GAP analysis has also been used as a means for classification of how well a product or solution meets a targeted need or set of requirements. In this case, 'GAP' can be used as a ranking of 'Good', 'Average' or 'Poor'.
GAP ANALYSIS AND NEW PRODUCTS

The need for new products or additions to existing lines may have emerged from the portfolio analyses, in particular from the use of the Boston Growth-share matrix or the need will have emerged from the regular process of following trends in the requirements of consumers. At some point a gap will have emerged between what the existing products offer the consumer and what the consumer demands. That gap has to be filled if the organization is to survive and grow. To identify the gap in the market, the technique of gap analysis can be used. Thus an examination of what profits are forecast to be for the organization as a whole compared with where the organization (in particular its shareholders) 'wants' those profits to represent what is called the planning gap this shows what is needed of new activities in general and of new products in particular. The planning gap may be divided into four main elements:
USAGE GAP
This is the gap between the total potential for the market and the actual current usage by all the consumers in the market. Clearly two figures are needed for this calculation: Market potential
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Existing usage
Market potential: The most difficult estimate to make is that of the total potential available to the whole market, including all segments covered by all competitive brands. It is often achieved by determining the maximum potential individual usage, and extrapolating this by the maximum number of potential consumers. This is inevitably a judgment rather than a scientific extrapolation, but some of the macroforecasting techniques may assist in making this estimate more soundly based. The maximum number of consumers available will usually be determined by market research, but it may sometimes be calculated from demographic data or government statistics. Ultimately there will, of course, be limitations on the number of consumers. For guidance one can look to the numbers using similar products. Alternatively, one can look to what has happened in other countries. The maximum potential individual usage, or at least the maximum attainable average usage (there will always be a spread of usage across a range of customers), will usually be determined from market research figures. It is important, however, to consider what lies behind such usage. Existing usage: The existing usage by consumers makes up the total current market, from which market shares, for example, are calculated. It is usually derived from marketing research, most accurately from panel research such as that undertaken by A.C. Nielsen but also from 'ad hoc' work. Sometimes it may be available from figures collected by government departments or industry bodies; however, these are often based on categories which may make sense in bureaucratic terms but are less helpful in marketing terms. The 'usage gap' is thus:
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USAGE GAP = MARKET POTENTIAL EXISTING USAGE

Many, if not most marketers, accept the 'existing' market size, suitably projected over the timescales of their forecasts, as the boundary for their expansion plans. Although this is often the most realistic assumption, it may sometimes impose an unnecessary limitation on their horizons. The original market for video-recorders was limited to the professional users who could afford the high prices involved. It was only after some time that the technology was extended to the mass market. In the public sector, where the service providers usually enjoy a `monopoly', the usage gap will probably be the most important factor in the development of the activities. But persuading more `consumers' to take up family benefits, for example, will probably be more important to the relevant government department than opening more local offices. The usage gap is most important for the brand leaders. If any of these has a significant share of the whole market, say in excess of 30 per cent, it may become worthwhile for the firm to invest in expanding the total market. The same option is not generally open to the minor players, although they may still be able to target profitably specific offerings as market extensions. All other `gaps' relate to the difference between the organization's existing sales (its market share) and the total sales of the market as a whole. This difference is the share held by competitors. These `gaps' will, therefore, relate to competitive activity.
PRODUCT GAP
The product gap, which could also be described as the segment or positioning gap, represents that part of the market from which the individual organization is excluded because of product or service characteristics. This may have come about because the market has been segmented and the organization does not have offerings in some
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International Business Management segments, or it may be because the positioning of its offering effectively excludes it from certain groups of potential consumers, because there are competitive offerings much better placed in relation to these groups. This segmentation may well be the result of deliberate policy. Segmentation and positioning are very powerful marketing techniques; but the trade-off, to be set against the improved focus, is that some parts of the market may effectively be put beyond reach. On the other hand, it may frequently be by default; the organization has not thought about its positioning, and has simply let its offerings drift to where they now are. The product gap is probably the main element of the planning gap in which the organization can have a productive input; hence the emphasis is on the importance of correct positioning.
COMPETITIVE GAP
What is left represents the gap resulting from the competitive performance. This competitive gap is the share of business achieved among similar products, sold in the same market segment and with similar distribution patterns - or at least, in any comparison, after such effects has been discounted. Needless to say, it is not a factor in the case of the monopoly provision of services by the public sector. The competitive gap represents the effects of factors such as price and promotion, both the absolute level and the effectiveness of its messages. It is what marketing is popularly supposed to be about.
MARKET GAP ANALYSIS

In the type of analysis described above, gaps in the product range are looked for. Another perspective (essentially taking the `product gap' to its logical conclusion) is to look for gaps in the 'market' (in a variation on `product positioning', and using the
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International Business Management multidimensional `mapping'), which the company could profitably address, regardless of where its current products stand.
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DATA ANALYSIS & INTERPRETATION

McDonald's CORPORATION
McDonald's is the largest and best-known global foodservice retailer with more than 30,000 restaurants in 121 countries. Yet on any day, even as the market leader, McDonald's serves about one billion people, which is less than one percent of the world's population. It claims to open on an average of three outlets every 24 hours at some place or the other in the world. Their outstanding brand recognition, experienced management, high-quality food, site development expertise, advanced operational systems and unique global infrastructure position the company to capitalize on global opportunities. More than 70% of McDonald's restaurants worldwide are owned and operated by independent local men and women. Is one of the worlds most well-known and valuable brands and holds a leading share in the globally branded quick service restaurant segment of the informal eating-out market in virtually every country in which they do business. Serves the world some of its favorite foods - World Famous French Fries, Big Mac, Quarter Pounder, Chicken McNuggets and Egg McMuffin.
McDonald's WORLDWIDE
History: Two brothers V Richard and Maurice McDonald pioneered McDonald's in the year 1948 at California, USA. They converted their bar-be-cue drive in with carhops into limited menu, self-service drive in. Later on seeing the success, the two brothers were having in running the outlet, Raymond Albert Kroc (1902-1984), also known as Ray Kroc, at the age of 52 years bought the exclusive franchising rights for USA in the year 1954 and hence came the McDonald's Corporation into existence. Ray Kroc opened the first McDonald's restaurant in Des Plaines, Illinois in 1955 now 25
International Business Management no longer a functioning restaurant, but the building is now a museum containing McDonald's memorabilia and artifacts. The company, since then, has been built worldwide on the concept of franchisee having about 70 percent of its outlets owned and managed by people who are its franchisees. About 14 percent of McDonald's $14.2 billion worldwide sales for the year 2006 came from Asia alone. Presently, the company plans to expand their leadership position through great tasting food, superior service, everyday value and convenience. This is gauged by the fact that the company's efforts to increase market share, profitability and customer satisfaction have produced good return to shareholders - a total compounded annual return of 12 percent for the ten years ended December 31, 2006. CORPORATE VISION 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 every customer in its every restaurant smiles. To achieve this vision, the company is focused on three worldwide strategies: Be the Best Employer: The Company believes that to give its customers, the best quick service restaurant experience it is necessary for them to first give its employees the best experience. So to pursue its belief, McDonald's has put down in writing its people's vision and peoples belief: 1. People's Vision to be the best employer for our people in each community around the world. Peoples Promise we value you, your growth and your contribution. 2. Deliver Operational Excellence: Deliver operational excellence to our customers in each of our restaurants.
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International Business Management 3. Achieve Enduring Profitable Growth: Achieve enduring profitable growth by expanding the brand and leveraging the strengths of the McDonald's system through innovation and technology. This helps in expanding the range of opportunities for all the people - employees, owner operators and suppliers - to freely invest human capital, ideas, energies, expertise and time. CORPORATE MISSION: To leverage the unique talents, strengths and assets of our diversity in order to be the World's best quick service restaurant experience.
McDonald's INDIA
1. A locally owned Company: McDonald's started its Indian operation in the year 1996 under the franchisee ship method. It has two joint venture partners in India: Connaught Plaza Restaurants Pvt. Ltd. a Delhi based 50:50 joint venture with McDonald's for its operations in North India. It is headed by Mr. Vikram Bakshi. Till date it has 100 outlets in and around Delhi, including one each in Noida, Delhi-Mathura highway, and Delhi-Jaipur highway. Hardcastle Restaurants Pvt. Ltd. a Mumbai based 50:50 joint venture with McDonald's for its operations in West India. It is headed by Mr. Amit Jatia. The company sources all its food products from the local suppliers. It also has a research and development department, which tries to incorporate the new and innovative food product into its menu after intensive research catering wholly to the taste of the local customers. Like in India, the company has renamed its world famous Big Mac burger to Maharaja Mac and incorporated major changes to its contents by using mutton instead of beef for its Indian customers.
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International Business Management 2. Local Sourcing is Key for Truly Indian Products: Around the world, McDonalds traditionally operates with local partners or local management. In India too, McDonalds purchases inputs from local suppliers. McDonalds constructs its restaurants using local architects, contractors, labour and - where possible - local materials. McDonalds hires local personnel for all positions within the restaurants and contributes a portion of its success to communities in the form of municipal taxes and reinvestment. Nearly 98% of the inputs are sourced from the domestic market. McDonalds sources food products from local companies. Mutton patties are supplied by Al-Kabeer Hyderabad, fresh lettuce comes from Pune, Ooty, Maharashtra and Dehradun; cheese from Dynamic Dairies, Baramati, Maharashtra; sesame seed buns and sauces from Cremica Industries Phillaur, Punjab, and pickles from VST Natural Foods, Hyderabad, Andhra Pradesh. 3. Setting Up of an Extensive Food Chain: For three years before the opening of the first McDonalds restaurant in India, McDonalds and its international supplier partners worked together with local Indian companies to develop products that meet McDonalds vigorous quality standards. These standards also strictly adhere to Indian Government regulation on food, health and hygiene. Part of this development involves the transfer of state-of-the-art food processing technology, which has enabled Indian business to grow by improving their ability to compete in todays international markets. For instance, Cremica Industries worked with another McDonalds supplier from Europe to develop technology and expertise, which allowed Cremica to expand its business from baking to also providing bread and batters to McDonalds India and other companies. Another
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International Business Management benefit is expertise in the areas of agriculture, which allowed McDonalds and its suppliers to work with farmers sharing, advanced agricultural technology and expertise like utilization of drip irrigation systems, which reduce overall water consumption, and agricultural management practices which result in greater yields. 4. Respect for the Indian Customers and Culture: McDonalds worldwide is well known for the high degree of respect to the local culture. McDonalds has developed a menu especially for India with vegetarian selections to suit Indian tastes and culture. Keeping in line with this McDonalds does not offer any beef or pork items in India. McDonalds has also re-engineered its operations to address the special requirements of a vegetarian menu. Vegetable products are prepared separately, using dedicated equipment and utensils. This separation of vegetarian and non-vegetarian food products is maintained throughout the various stages of procurement, cooking and serving. 5. Community Partnership: McDonalds believes in giving back to the communities it serves. Wherever McDonalds goes it becomes a part of the community it operates in and contributes towards the development of the locality. McDonalds has introduced the concept of Litter Patrol - McDonaldss employees go around the immediate vicinity of the restaurant every day, packing up garbage left behind not only by customers from McDonalds restaurants but also by other visitors to the area resulting in a cleaner neighborhood. 6. Quality, Service, Cleanliness and Value: The McDonalds philosophy of QSCV is the guiding force behind its service to the customers. All its suppliers
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International Business Management adhere to Indian government regulations on food, health and hygiene while continuously maintaining McDonalds own recognized standards. All McDonalds products are prepared using the most current, state-of-the-art cooking equipment to ensure optimal level of quality and safety. Working on Customer first policy McDonalds India provides fast and friendly service - the hallmark of McDonalds which sets its restaurants apart from others. McDonalds restaurants provide a clean, comfortable environment especially suited for families via McDonalds stringent cleaning standards, carefully adhered to. McDonalds menu is priced at a value that the largest segment of Indian consumers can afford. McDonalds does not sacrifice quality for price - rather McDonalds leverages economies of scale to minimize costs while maximizing value to customers.
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MARKETING STRATEGY
The first step in developing a marketing strategy is to understand your customers, enabling reaction to their changing needs and the changing dynamics of the market. To this end, McDonalds conducts several stages of in-depth customer research and audits of its brand. The research involves both quantitative and qualitative research methods. This research tells us a lot about how McDonald's is perceived and about trends that are taking place in the market. They also conduct research into the local area of their restaurants, into the general market environment, and into specific areas of their business (children for example). 1. Competitive Pricing: Being in touch with the pricing of its competitors allows McDonald's to price its products correctly, balancing quality with value. 2. Competitive Promotion: Before McDonald's communicates with it's customers it must be aware of what its competitors are communicating so that it can create a beneficial difference between itself and them. 3. Competitive Place: Distribution is key to any retailer or brand. 4. Competitive Product: Quick Service Restaurants are constantly expanding their menus. This can be done on a short-term promotional basis or as a long-term expansion strategy. Innovative marketing strategies clearly drive a business such as McDonald's. But the marketing program is not simply about food. They use it to enhance the customers experience, build the overall perception of McDonald's in the market place as the eat out restaurant of first choice and to let people, who perhaps have not yet experienced McDonald's, know what the company can do for
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International Business Management them and how the McDonald's experience continues to evolve to satisfy what the customers are asking them for. 5. Operational Mission: To provide product and service to the customers, maintaining the: Quality: Service: Cleanliness: Value: Only the best ingredients Friendly, pleasant, fast and efficient The highest standard for all the family Great food at great prices, combined with the unique McDonald's For this McDonald's Corporation has provided each franchisee with a detailed operations manual and the latter are supposed to adhere them strictly. The operations manual consists of: 1. 2. 3. 4. 5. Pre-opening procedures Supplies and inventory Supplier Administration Quality
Besides this the franchisees are supposed to go through the course at Hamburger University, USA that helps them prepare for the operation in their part of the world. Every minute detail is given in the menu items, exacting measures for all
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International Business Management recipes and the way it is to be served is also mentioned in the manual. McDonald's puts a great stress on the cleanliness and the quality of the food and takes care that the franchisee is strictly following to the operations manual. For this purpose, a team of people from McDonald's international meets all the outlets once in 4 months. 6. Back end operations at the outlet: The back end operations at the McDonalds restaurant are similar to the shop floor of a factory with separate spaces allocated to the various operations. It is basically divided into two parts - the basement level and the floor level. The Basement level: the floor space at the basement level is divided into a walk-in chiller used for storing ice creams; a walk-in freezer maintained at 0 to -10F is used for storing vegetarian and non-vegetarian food items; a coke dispensing machine consisting of the cylinder spaces for the syrup and the gas cylinders; a dry store used for storing the items such as cup, glasses, coffee syrup, and sauces, etc.; and the locker rooms for the employees. The raw materials are replenished every three days from its distribution center in Noida after rigorous quality checks. At every outlet, an inventory stock of three plus one day buffer stock is maintained to meet all exigencies. The Floor Level: the company has designed its kitchen like a shop floor of a factory where the different products made on different lines and one operation is conducted at one place. At the floor level, separate lines are followed for vegetarian and nonvegetarian food products to the extent that separate equipment's are placed at separate locations to avoid any contact between the two products.
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International Business Management People working on the two lines are identified by the different colored aprons they wear, like green apron for vegetarian products and black apron for non-vegetarian products. Every work in the kitchen is according to the clockwork and the time machine tells when to keep the burgers on the pan and when to pick them up. These and many more procedures are well laid down in a kitchen code book and followed at the outlets with same belief. No wonder that the burgers in every outlet of the McDonald's taste the same. The employees trash a burger not sold in ten minutes. Bin level charts are made for every day of the month, which is based on the actual sales on the same day of the same week in the previous month. The expected customers to arrive at the outlet are divided into hourly time slots starting from 1000 hours to 2300 hours and depending on the volume of the customers, the burgers are made. Also the volume of the customers are divided into six categories: Low: 0 - 30 persons Medium: 30 - 60 persons High: 60 - 90 persons Ultra : 90 - 120 persons Ultra 1: 120 - 150 persons Ultra 2 : 150 - 180 persons
Almost 95 percent raw materials are sourced from around the country. Since some products have very short life like peas loose half their sweetness in 24 hours after
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International Business Management harvesting, so to maintain the same taste and freshness, the products are frozen straightaway. The company uses cold trucks for transporting the raw materials to the distribution center in Noida, where they are stocked until distributed to the whole of North India wherever the outlets are after a rigorous quality checks to ensure the quality of the raw materials. Other than this every outlet has three sub divisions training, ordering, and scheduling, which takes care of the various needs of the production volume, capacity and the sales target at each outlet.
USE OF SUB-STRATEGIES AT McDonald's

1. Technology Strategy: McDonald's on the technology front has been a forerunner. The equipments used by the company at its outlets are latest state of the art and specifically designed for the perfect use. Take the example of ketchup dispensers; these are designed to fill the plate adequately in just one stroke downwards. Other than this the filling of the cheese and other ingredients is done by especially designed dispensers so that each time the layering on the burger spreads the same amount as has been calibrated. There are set procedures laid down in a code book of the McDonald's, the booklet contains the details of how to prepare the food products, to the methods of quality checks, to the manner in which the employees are supposed to behave in front of the customer, and various other such procedures. The people at McDonald's go through a rigorous training schedule before they are inducted in the company as crewmembers. The trainees are taught how to prepare food products, to the general kitchen manners and also service delivery techniques.
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International Business Management Use of Electronic Data Interchange (EDI) to link to the distribution center, inventory management systems, and various other production and sales forecasting techniques are just some of the things the outlets use to serve the customers better. 2. Capacity Strategy: Since McDonald's is into the business of fast food restaurants located in the market places and expects to cater to the customer's orders in flat 60-90secs. The capacity planning of each outlet should be designed in such a way to cater to the crowds coming in the outlet. Each of the outlets has to be independent on its own for serving the customers coming in, and hence the production capacity should be large enough to meet all the situations. 3. Facility Location Strategy: McDonald's restaurants buy vegetable supplies directly from the farmers and other supplies from the suppliers, who sell them at incredibly low prices. This difference in prices is something in the range of 40-55 percent cheaper than the market price. This is possible because McDonald's have reached an understanding with the suppliers about the future business prospects and because since each product is produced at a single place or factory the economies of scale permit the suppliers to sell the produce at the lower rates. On the front of the company, it is very encouraging to have the raw materials at such cheaper rates as this helps the company to price its products at lower rates. This helps the company in following its slow cost, high volume strategy and hence gain customers. 4. Process Strategy: At McDonald's there are different production lines for the vegetarian and the non-vegetarian food products. The production of these food
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International Business Management products is decided upon, based on the data collected on the previous days. The chart used for this purpose is the Bin Level Chart, which contains the data collected on the same day of the same week of the previous month, and contains details of the burgers to be produced depending upon the crowd rush and the time of the day. Besides different production lines for different classes of burgers, each operation is done only at one point. Hence the design of the production line is a mix of product layout and process layout. Further more the flexibility of the company to adapt to the local conditions and hence produce the products which are according to the taste and preferences of the customers. For this the company follows a mantra Think Global, Act Local and is able to position itself in the minds of the customers as a brand. Example: In India majority of population do not eat beef products, the company identified this much earlier and hence changed all the products containing beef products to products containing either mutton or chicken. In India, McDonald's after thorough research and development came out with its first egg less mayonnaise and it even offers complete vegetarian food products during the navratri festival. 5. Quality Strategy: McDonald's on the quality aspect is very strict. This can also been seen in the quality handbook which McDonald's has given to the franchisee. McDonald's claims that any typical burger undergoes about 54 different types of quality checks before served to customer. Nowhere, not even in the raw state, is any of the food touched by hand. Even after the raw food is harvested from the fields, it is taken care that none of the nutrition value of the food is lost due to the time factor and for this reason the company has employed Airfreight limited to take care of its logistics. Before the perishable products are sent to the outlets
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International Business Management another set of quality checks are conducted to make sure the quality of the raw materials. 6. Human Resource Strategy: For McDonald's its employees are its internal customers. To make sure that its external customers are satisfied to the fullest, it is imperative on the part of the company to see that its internal customers are motivated and encouraged to serve the customers well. For this the company employees full time trainers to make their employees competitive.
Job Structure
Employees of McDonald's fall into three groups: restaurant workers, corporate staff, and franchise owners. The first group is the biggest - a local McDonald's restaurant usually employs between 20-40 people. In the restaurants, crewmembers constitute the entry-level position and are by far the most numerous. A large majority are parttime workers, roughly three-quarters whose wages are low. Swing Managers constitute the first managerial position in the hierarchy, although their hourly wages are only slightly higher than crewmember wages. Assistant Managers and higher hierarchy are salaried. There is one Restaurant Manager per McDonald's restaurant. Wages are low partly because the company plays a major role in the recruitment of the newly or first-time employed. Turnover at the crew level is thus high. But it is important to point out that only about half of crew-level employees are teenagers. The remaining includes seniors, working mothers, and "transitional" workers in the 20-25age range. The prevailing image of promotion/appraisals at McDonald's is negative get a job as a crew person, and you are in a dead-end job. Company emphasizes that a majority of McDonald's restaurant management started as crew: 95% of swing managers, 70% of assistant managers, and 67% of restaurant managers. As well, 38
International Business Management nearly 50% of franchisees started as employees in the restaurants. Appraisal rates to higher positions are likely to be much lower than movement into store-level managerial positions.
Training and Education

Employee training at McDonald's is highly structured. Entry-level workers are first taken through the basic Crew Training System. The program consists of on-the-job training and is largely vocational. Each stage of advancement beyond the crew level then entails a new training program, with the skills becoming more complex and generalized. Training at McDonalds begins immediately with a one-hour orientation on the company. Each restaurant has 25 stations from the grill area to the front counter. Trainers use a series of checklists as new crewmembers move through the restaurant. A level of competency is demonstrated and the activity is checked off on the SOC Station Observation Checklist. There is a follow-up SOC to get certified on the station. The goal for each crew person is a 3/30 plan: in the first 30 days, a crew person learns 3 stations, and so on until all the stations are mastered. Large or complex organizations usually need to break the planning process down into manageable units. McDonald's developed its future scenarios around three strategiescustomer convenience, customer value, and optimal operations. For each of these strategies, there was already a full-time team that included both operations and systems development personnel from Carl Dill's organization. The digital strategy project team worked through these teams to generate the bold new ideas that Dill instinctively knew were there to be discovered.
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International Business Management 7. Information in Operation Strategy: For various uses and to disseminate information at various levels the company uses a number of forms, charts and computer-aided systems. For billing and inventory management level check, the company uses point of sale systems. This system consists of: Cash Drawer Central Monitoring Unit Printer PAR
The various reports generated are: Daily Sales Report, Monthly Sales Report, Daily Product wise Report, Monthly Product wise Report, Hourly Sales Report. Other than this Bin Level Chart, as already explained above, is produced daily to inform the production in-charge of the production schedule. Another report, Daily Product Safety Checklist, is produced three times a day for checking the quality of the food served duly signed by the restaurant manager.
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McDonalds INDIA SUPPLY CHAIN

A taste of freshness from all over India: Did you know that every year, Rs. 50,000 crore worth of food produce is wasted in India? This is mainly because of the lack of proper infrastructure for storage and transportation under controlled conditions. McDonald's is committed to providing quality products while supporting other Indian businesses. And so, McDonald's spent a few years setting up a unique Cold Chain. The cold chain is necessary to maintain the integrity of food products and retain their freshness and nutritional value. It refers to the procurement, warehousing, transportation and retailing of food products under controlled temperatures. Setting up the cold chain has involved the transfer of state-of-the-art food processing technology by McDonalds and its international suppliers to pioneering Indian entrepreneurs, who have now become an integral part of the cold chain.
CORPORATE SOCIAL RESPONSIBILITY

A Socially Responsible Company: McDonalds founder Ray Kroc built the company on the principle of giving back to the communities in which they do business which holds true at McDonalds today. A McDonalds franchisee and his/her team can be found supporting various local schools, youth athletic teams, senior citizens groups, safety awareness campaigns, literacy programs, environmental projects and other local fundraising initiatives in their communities.
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PRESENT POSITION OF FAST FOOD INDUSTRY

GLOBAL: - Globally this industry is witnessing erosion of customer base. This is due to the fact fast food contain and surplus amount of fats, oil, cholesterol, which increase the health related problems and the customers are becoming more and more Health Conscious and are becoming more conscious in there food habits. IN INDIA: - The consumer ignore the above mention factors provided if you added to this people tendency to adopt westernized culture, customers have helped fast food MNCs to increase there markets.
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MAJOR PLAYERS IN THIS FIELD

These day working executives are busy a lot they dont have the spare time to cook food, due to their high income and ever increasing aspiration levels they prefer to it out at this fast food outlets (McDonalds, Nirulas, Pizza Hut) where they find the match according to there aspirational level.
SUBWAY
DOMINOS
NIRULAS
WIMPY
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KFC
PIZZA HUT
1. PIZZA HUT
Pizza Hut is the largest pizza restaurant company in the world. It has 12700 outlets in 90 countries. Pizza Hut has an aggressive expansion plan for India. Pizza Hut is one of the flagship brands of Yum! Brands, Inc., which also has KFC, Taco Bell, A&W and Long John Silvers under its umbrella. Pizza Hut is the worlds largest pizza chain with over 12,500 restaurants across 91 countries. In India, Pizza Hut has 139 restaurants across 36 cities, including Delhi, Mumbai, Bangalore, Chennai, Kolkata, Hyderabad, Pune, and Chandigarh amongst others. Yum! is in the process of opening Pizza Hut restaurants at many more locations to service a larger customer base across the country. Pizza Hut will consolidate its presence in cities where it is already existing as an endeavor to create a major share of these profitable markets first before spreading to other markets. Pizza Hut is one of the largest pizza brands. Further, all new outlets in India would be franchisee owned resulting from the smooth functioning of the existing stores which are all franchisee
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International Business Management owned. Hence, the same arrangement will be followed in the future to ensure growthoriented results. The data written below represent what Pizza Hut is all about and gives a brief profile of the company. Their main quote: "Customers are the reason that we are here." No customers No Pizzas The 5 secret principles: Employees are our secret ingredients Show your "care" Say "yes" to customers Satisfied, capable teams create satisfied customers Satisfied customers create profit and growth
Today, Pizza Hut serves over a million pizzas a day in more than 12,689 restaurants in 88 countries making it the No.1 pizza brand in the world. The reason behind Pizza Hut's success all over the world is its steadfast belief and uncompromising drive in providing customers the best in terms of product quality, service, cleanliness and value. Pizza Hut pizzas are made with fresh dough baked daily and smothered with our very own Pizza Hut special tomato sauce, tender meat toppings, crunchy vegetables and a double layer of 100% pure imported Mozzarella cheese.
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International Business Management Service is an attitude in Pizza Hut. Crew members are trained to make customers feel appreciated. Customers are treated with courtesy, attentiveness, respect, and enthusiasm. Cleanliness is a must in Pizza Hut as much as giving customers the best value for their money. Today, Pizza Hut has a total of 22 DELCO, 39 RBD, 61 Restaurants, 1 Bistro and 1 Express. Another creation of Pizza Hut is the slice unit that caters to customers who want to avail of quick food service. This was conceptualized precisely for people on the go, individuals who want to eat pizza without the usual waiting time.
2. NIRULA'S
Nirulas today is a well-known name in the hospitality industry. Nirula family was the first to offer western style fast food in India. It came to Delhi in 1928. They realised the paucity of good eating places in and around New Delhi, and started Hotel India in 1934 with 12 rooms and a restaurant with a bar license. They also specialised in catering to parties and soon Nirulas catering became famous. Meanwhile, Nirulas had set up the India Coffee Shop in Janpath on request of the Coffee board. A few years later, the Coffee Board of India seeing the success of the international decided to run the business itself. It 1939, when the Second World war had started, Nirulas rented more space in Connaught Circus (what is currently the ground floor of Nirulas, L-block) and opened a Restaurant with music and serving a six course dinner for only Rs. 1. The restaurant
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International Business Management proved to be popular with both Indian and foreign guests. It also started serving Indian food and introduced ballroom dancing and cabaret. However, business fluctuated widely since it was dependent on the quality and reputation of that evenings performer. Hence, in 1950 the restaurant with the cabaret was given up in favour of the Brasserie. The Brasserie was a popular self-service restaurant serving beer and liquor with a limited menu of Indian and Western food. The Brasserie gave way to the Cafeteria, the first of its kind in India with a variety of Dishes and the guests could help themselves to whatever they fancied. Before 1947, Nirulas had also opened the first fruit preservation unit in Delhi. The jams and squash and other preserves were marketed under the name of Nirulas and had an all India distribution. With the partition of India in 1947, the supply of raw material was disrupted and this unit was stopped. In 1950, Nirulas started the Chinese Room which was the first restaurant of its kind in India. Nirulas created history by being the first Indians of non-Chinese origin to have a Chinese food restaurant in India. In 1954, Nirulas were the first ones to introduce espresso coffee in India. Gaggia, the inceptors of espresso coffee machines gave Nirulas sole distribution rights for their machines and Nirulas sold these to the luxury hotels and first class restaurants. Nirulas Hotel was started in 1958 and was the first modern 3star hotel in India. In 1960 two specialty restaurants were opened. Nirula's Production Facilities: The fact that on an average over 40,000 people visit Nirula's 3 hotels, 31 Family Style Restaurants, 4 Fine-Dine Restaurants, 1 speciality restaurant, 14 pastry shops and 4 bars every day is a matter of pride for everyone at
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International Business Management Nirula's. It also proves that their efforts to maintain high quality standards at their production facilities have been recognized and commended. The logistics are staggering - 6.5 lakh kg of flour, 20 lakh litres of milk, 12 lakh eggs, 85 tonnes of meat, 210 tonnes of chicken, 200 tonnes of cream, 230 tonnes of sugar, 47 tonnes of milk powder, 55 tonnes of butter and 2 lakh litres of oil are used in a year at Nirula's. Despite these huge quantities, quality has never been compromised. Working round the clock are 20 food and dairy technologists and other management personnel who ensure that only the best reaches the consumers. Quality Assurance Department: The Quality Assurance Department (QAD) has 18 qualified and experienced Food Technologists/Chemists and Microbiologists for monitoring the quality systems at Nirula's. The QAD reports to the Managing Director for his personal review. The department has a well-established laboratory with modern testing facilities at each Production Centre (Okhla and Noida). Various tests of raw materials, under-process material and finished products on the lines of ISO 9000 and HACCP standards are carried out to ensure that all the products fulfill the desired standards. Raw Material Specifications: Nirula's QAD has formulated stringent quality standards for all raw materials conforming to the regulatory requirements. The products are checked at every stage: Analysis of Raw Material Analysis of Under-Process Material Analysis of Finished Product
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International Business Management Monitoring During Production Recipes and Manufacturing Procedures
The Quality Assurance Staff monitors production and ensures adherence to the approved recipes and procedures. This is done through regular Recipe Audits at all the Production levels.
B. Hygiene and Sanitation

Periodic Audits are conducted at all production centres, the report of which is sent to the production heads for compliance. The hygiene of individual workers is examined on a daily basis, apart from their regular medical check-up. Quaity Assurance Department (QAD) conducts fortnightly audits at the service outlets covering following parameters: Restaurant Sanitation Audit Storage Temperature Food Safety Audit Regulatory Requirements
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3. SUBWAY
In the year 2008, the SUBWAY chain entered its 43rd year of operation. It is the worlds largest submarine sandwich chain with more than 28,121 restaurants in 86 countries. As a matter of fact, the SUBWAY chain operates more units in the US, Canada and Australia than McDonalds does. Countless awards and accolades have been bestowed upon Fred DeLuca and the SUBWAY chain over the past 40 years. The SUBWAY name and its products have even appeared in numerous television and motion picture productions. Subways mission is to provide the tools and knowledge to allow entrepreneurs to successfully compete in the QSR industry worldwide by consistently offering value to consumers through providing great tasting food that is good for them and made the way they like it. This pamphlet is meant to serve as an ingredient guide to help consumers make better informed food choices. This information includes the use of what are currently the most commonly used products, approved by Doctor's Associates Inc., for SUBWAY sandwich shops in cases where there is more than one brand of approved products available to the franchisee. Therefore, formulas may vary from region to region.
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4. DOMINO'S
Error! Objects cannot be created from editing field codes. Vision: Exceptional people on a mission, to be the best pizza delivery company in the world Domino's Pizza India Ltd. was incorporated in March 1995 as the master franchisee for India and Nepal, of Domino's Pizza International Inc., of USA. Moreover, the company holds the master franchisee rights for Sri Lanka and Bangladesh through its wholly owned subsidiary. Mr. Shyam S. Bhartia and Mr. Hari S. Bhartia of the Jubilant Organosys Group were the promoters of the company. Since inception, Domino's Pizza India Ltd. has proceeded to become one of the largest and fastest growing international food chains in South Asia. The first Domino's Pizza store in India opened in January 1996, at New Delhi. Today, Domino's Pizza India has grown into a countrywide network of over 180 outlets in 34 cities and is the leader in the fast food delivery segment.
Dominos Diversity Mission Statement

Domino's Pizza is committed to an inclusive culture, which values the contributions of their customers, team members, suppliers, and neighbors. Domino's Pizza uses only the freshest, highest quality ingredients available. In 2004, Super Bowl Sunday was one of the busiest day of the year. Domino's sold close to 1.2 million pizzas, which is about 42 percent more pizzas compared to a normal Sunday. Super Bowl Sunday ranks among the top five days for pizza deliveries annually. The three dots in logo represent the first three Domino's Pizza stores. The plan was to add a dot for every new store, however, with Domino's current
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International Business Management store count more than 8000 in 54 countries (as of 2007) that would have been quite impossible to continue.
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5. WIMPY
Wimpy is the brand name of a chain of hamburger restaurants based in the United Kingdom. The restaurants were originally called Wimpy Bars and many people still refer to them by this name, despite the fact that the name "Wimpy Bar" was dropped in favour of "Wimpy" many years ago. The current owners of the Wimpy brand operate in several countries under the name of Wimpy International. The Wimpy brand was created by in the 1930s. In 1977 the business was acquired by United Biscuits. Wimpy was beginning to lose ground to McDonalds, who had opened their first UK restaurant in 1974 and so the new management of Wimpy began to streamline the business by converting some of the traditional "table service" restaurants to the "counter service" operation style of McDonalds. Another difference between Wimpy and McDonalds was that Wimpy had lacked branches that had a drive through format. Wimpy Awarded In Best Breakfast Category, Wimpy, one of South Africas leading Quick Service Restaurant brands was recently voted number One in the Best Breakfast category in the Pretoria News - Best of the Best competition.
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International Business Management According to Hele, Wimpys success can be attributed to a number of factors including friendly and comfortable atmosphere, tasty food, good service and accessibility. With over 400 Wimpy stores nationwide, diners are sure to find a Wimpy nearby. Innovation and product development have also been cornerstones in the successful track record of the group. Product development is not seen as making change for the sake of change but rather enhancing the quality of the menu. We listen to our customers, says Hele. We truly believe that Wimpy is a peoples restaurant where diverse communities enjoy the Wimpy experience and benefit from our commitment to freshly prepared food.
A Brand With Bite

What does it take to make a name stand out from the rest? Why does the WIMPY name leap out with a sizzling promise of a delicious and fresh food experience? It's all in the branding. WIMPY has established a powerful image that, along with its values of quality, cleanliness, service, value and friendliness, reflects the brand's innovative and welcoming personality. WIMPY continues to build on the brand's strengths by retaining its core values and enhancing its image with inventive changes and evolutions. It's this energy that constantly uplifts and refreshes the brand, positioning it way ahead of the rest. Awake. Aware. Alive Contemporary trends. Shifts in food, dcor and lifestyle tastes. WIMPY is always aware of exactly what's going on out there.
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THE MARKET ENVIRONMENT PEST ANALYSIS OF FAST FOOD MARKET POLITICAL / LEGAL
In India, there are a number of political parties having their own set of policies that has introduced a level of uncertainty and unstable government. As a result of this, the peoples and organizations are hesitant towards promoting FDI in India. The increase in prices of Petrol & Diesel (because of crude oil crossing $100/barrel mark) will increase transportation costs and net effect will be reduction in the profit margin of the organization. The unexpected change in government policies has always been of great concern for the industry. Also with the Swadeshi message spreading all around. It is acting as a sword that is hanging over the head of the management of the players in fast food segment. Case of pesticides level more than permitted in Cola brands poses threat to MNCs credibility. Legislation related to manufacturing and taxation should be made more investment friendly. The industry suffers from multiple taxes like excise, sales tax and in certain cases even a mandi tax, leads to a cascading impact.
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ECONOMICAL
U.S economy going towards recession is affecting the multinational firms anywhere associated with United states. Expected rise in Global Food prices will affect the cost-benefit equation of food products. With the rise in inflation, the cost of production rises due to increase in the prices of raw materials, which have an adverse effect on the profits of the organization, if they dont increase the price or reduce their overheads.
SOCIAL
The relevances of the social environment to a particular business will depend on the nature of business. The impact of the social environment on a consumer products company is much more than any other company. Over 40% of all packaged goods consumed in urban India are foods and beverages, while that in rural India is over 20%. This trend will deepen because of the changing profile of the consumer. Education, employment and media will make the consumer more discerning and demanding.
TECHNOLOGY
Technology developments come out of the R&D effort. Players in fast food segment are continuously trying to come out with new products and variants and flavours that will fit in the Indian palate. The companies are trying to offer better value to their customers and are also trying to deliver superior product at competitive price.
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PORTERS FIVE FORCES MODEL WITH REFERENCE TO FAST FOOD JOINTS

Threat of New Entrants high Unorganized sector has low entry barriers and low initial investment Threat of FMCG majors entering fast food with
established distribution Success dependent on
maintaining low costs Power of suppliers High Expensive, hard to procure ingredients Pries determined by Intensity of rivalry high with Consumer-Low switching both national (Dominos, costs Highly unpredictable
Pizza hut, McDonalds with deep pockets and rapid
consumer perceptions Higher purchasing power
expansion plans Regional level chains Large number of fast food options Low brand loyalty
suppliers to maintain quality Lack of single supplier on a contract basis to ensure fixed rates Industry dominated by the Fluctuation in supply of seasonal products offerings studied, making
(Nirulas, Pizza Corner, US. Pizza)
unorganized sector with low Demand quality at a low entry and exit barriers price
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International Business Management Highly deal prone cust. Fast food suffers competition from the well established ready to eat snack food segment Indians most comfortable
with home made food Ready to cook foods
category growing at a rapid pace in India Dine in joints dominate as pizza is still not considered.
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Marketing Scenario at Mcdonalds

The first step in developing a marketing strategy is to understand the customers, reacting to their changing needs and the changing dynamics of the market. To this end McDonalds conducts several stages of in-depth customer research and audits of the McDonald's brand. The research involves both quantitative and qualitative research methods. This research describes how McDonald's is perceived and about changes that are taking place in the market. Research is also conducted into the local area of their restaurants, into the general market environment, and into specific areas of their business. They also believe in having a thorough understanding of their competition, which is considered, at three distinct levels: Total Eating out Market gives the broadest competitive context and includes all restaurants, hotels, pubs, and any other outlet where people eat. This category contains the entire gamut of eating outlets ranging from the mom-&-pop outlet to the most exclusive five star hotels. Quick Service Restaurant sector includes any outlet where food is served quickly and the process is usually self-service. Example: Dominos, Nirulas. Burger House Sector includes those restaurants that serve different varieties of burgers as their primary menu item. This is the narrowest sector in consideration. Having an in-depth understanding of all aspects related to the competition allows McDonalds, to monitor the competitive environment to exploit the opportunities and check threats in time.
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International Business Management This is achieved through the following: Competitive Pricing: Being in touch with the pricing of their competitors allows them to price their products correctly, balancing quality with value. Competitive Promotion: At McDonalds it is believed that before they communicate with their customers, they must be aware of what the competitors are communicating so that they can create a beneficial advantage. Competitive Place: Distribution is the key to any retailer or brand; McDonald's prides itself on its superior delivery process. Competitive Product: Quick Service Restaurants are constantly expanding their menus. This can be done on a short-term promotional basis or as a long-term expansion strategy.
MARKETING MIXES
McDonalds over the past seven years has been successful to place itself in the mindset of the Indian customer as an affordable outing compared to the initial impression of Americanized Indian Richies. With their Flag Ship product Big Mac absent from India it seems the Maharaja Mac comes to be the Indian Flag Ship Product. They consider service as one of their key selling points and focus on four dimensions with a lot of thrust. These are Quality, Value, Service and Cleanliness. It has tried to reach out to the entire Indian market of middle as well as the upper class. McDonalds has been co-branding with some very well known brands. Apart from serving Coca-Cola at all its outlets the McSwirl was introduced as a co-branded Ice cream with Cadburys.
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International Business Management Looking through the marketing mixes context through which McDonalds has tried to position itself in the Indian market:
1. PRODUCT
McDonald's menu internationally is based on five main ingredients: beef, chicken, bread, potatoes and milk. Their main products are hamburgers, chicken sandwiches, French fries and beverages. In addition it serves a variety of breakfast items and desserts. The original McDonald's menu was simplicity itself -hamburgers, cheeseburgers, fries, soft drinks, coffee and shakes. This limited menu concept triggered the "fast food" concept, because focusing on just a few items that were prepared with standardized procedures made food service a model of efficiency. And buying food supplies in quantity As the restaurant chain grew larger enabled it to keep prices low. Finally, because the menu was limited, it was able to deliver a consistent product, no matter which restaurant a customer visited. And this consistency has remained a hallmark of McDonald's even as its menu has expanded over the years. Customers know they can count on being served the same Big Mac whether they're at a McDonald's in Moscow, Idaho, or Mumbai, i.e. the same world famous fries whether they're in Dallas or Delhi. Mc Donald's India representative says, "We take the hamburger business more seriously than anyone else." Surprisingly, in India McDonald's has been particularly successful at catering to local tastes. The global giant is often criticized for standardizing tastes by serving the same burger the same way everywhere in the world. Though the core menu--hamburgers, Big Macs, fries, etc.--is available in all McDonald's restaurants, it's complimented with an array of localized choices. Usually 61
International Business Management in Asia, about a third of the menu is made up of dishes you won't find anywhere else, like Pizza McPuffs in India. In fact, the McDonald's in India feature a menu that is over 75% locally-developed. India has been the biggest inspiration for McDonald's fusion chefs. With a population that is mostly Hindu, the restaurant chain can't serve its mainstay-beef. So most of the standard menu had to be thrown out, down to the "special sauce" that goes into Big Macs elsewhere. Many Hindus, who are strict vegetarians, eschew mayonnaise, the sauce's main ingredient. McDonald's India developed a special egg less mayonnaise for the burgers; instead of eggs it used a large amount of mint. In place of the Big Mac, McDonald's India developed the Maharaja Mac--a mutton burger. All these extra steps have been taken to assure Indian customers of the wholesomeness of both products and their correct preparation. So intense is the idea of Indianization that McDonald's has opened an all- vegetarian outlet in Ahmedabad, which is predominantly a vegetarian city.
2. PRICE
Aimed at luring the Indian middle class, the ice cream cone was started with zero margins to pull in crowds. McDonald's has always strived to offer quality products at an affordable price. Its bulk purchasing capabilities have given it the cost advantage. It thus strives to be an optimum-cost producer -not the lowest cost -since quality comes first for this restaurant chain. The products are priced keeping in mind the target group. Since the people targeted belong to the Socio Economic Classification Grid A & B, the company refrained from excessive or premium pricing. An interesting piece is that the company claims to have a margin of 40 percent on its soft cone, which is a big hit among the people. Most of the meal combinations i.e.
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International Business Management including burger, French fries and a coke, prices are nominal. This could also be the tactics of psychological pricing. McDonalds has also introduced McHappy Hours, to increase customer visits during the lean time (3 pm to 6 pm). This is also in tune with the school and college goers.
3. PLACE
McDonalds is ever expanding and due to this its presence is felt by 3.5 million customers in India alone and more than a billion people worldwide every day. It has excellent networking capabilities with its suppliers and ensures quality from them. McDonalds India's outlets are generally located near community centers (some also have small parks adjacent to them) to provide the complete family experience.
4. PROMOTION
The emphasis is on projecting McDonald's as a global brand relevant to the local community. The positioning of McDonald's as a family restaurant is being carefully put across to the consumers. 1. Advertising: McDonalds advertising in India is being handled by Mudra Communications. McDonald's spends over 5.5crores each year on advertising: the Golden Arches are now more recognized by kids in metros than their favorite super hero. McDonald's is recognized as one of the best marketers of the world, investing some hundreds of millions of dollars every year for advertising and promotion of its image. Get them in. Trade them up. Get them back. These are the three basic steps of McDonald's marketing strategy, as defined internally at Mudra Communications, the agency handling the account. Shorn of jargon, this simply means objective number one is to make consumers' step into McDonald's outlets, the second objective is to shift the consumer to McDonald's core products (the Vegetarian Burger with cheese, 63
International Business Management the McChicken Burger with cheese and Fillet-o- Fish) by increasing sampling and showcasing the value aspect of McDonald's. Thirdly, increase the frequency of visits by making the McDonald's brand experience unique and memorable. The Indianised items like McAloo tikki burger and pizza McPuff are instrumental in bringing in the traffic into the store. Mc Donalds marketing efforts go far beyond advertising, including special food promotions, games, videos, cassettes, tapes, videos, CDs that customers couldn't get anywhere else for the value. Because of the diversity of customers that go to McDonald's, they have developed segmented marketing programs as various key audiences. 2. Public Relations: McDonald's public relations in India are being handled by Corporate Voice Shandwick, a subsidiary of Weber Shandwick Worldwide. This begins with franchisee involvement in their communities and extends to other national passions like cricket (McDonalds invites young and successful cricketers like Yuvraj Singh to inaugurate their restaurants). This means a well organized psychological bombing aimed at all kind of people, from every race and social class where the golden arches result to be the overall winner. 3. Promotions: Using collectable toys, television adverts, promotional schemes in schools and figures such as Ronald McDonald the company bombards their main target group: children. Happy meal combine wholesome food with a toy; Ronald McDonald is a special friend; play places (like in McDonalds, Priya Complex) provide safe and fun recreation and the alliance with Walt Disney Company let the children's shout even more.
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International Business Management 4. Market Research: McDonald's strategy for communication relies heavily on research to fine-tune its significance and effectiveness. An ear closer to the ground because that's where the action is! An organization has to be on the look out for any slight signals in the market that, suggest some kind of change. This is where the role of market research comes in. It can help an organization identify underlying needs and make changes to capitalize on them accordingly. From being classified by consumers as being 'bland' in 1997 to being sought after in 2000 for its 'unique' taste, McDonald's India has been the 'biggest experiment' for the worldwide chain, what with the Indian outfit having to consistently launch products to tickle Indian taste buds. Even though the Indian outfit stuck to its core taste that grew on consumers from 'bland' to 'unique' in three years, with no change factored in by the fast-food chain, McDonald's India's menu is about 75 per cent different from its global menu. All this can be attributed to the menu development team set up my McDonald's to explore and exploit the Indian taste buds. Country Australia China Hong Kong India Indonesia Japan Malaysia New Zealand Philippines Singapore Fast Food McDonald's McDonald's McDonald's Local chains McDonald's McDonald's KFC McDonald's Jollibee McDonald's Soft Drink Coca-Cola Pepsi Coca-Cola Pepsi Fanta Coca-Cola Coca-Cola Coca-Cola Coca-Cola Coca-Cola
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International Business Management South Korea Taiwan Thailand Vietnam Lotteria McDonald's KFC No favorite Coca-Cola Coca-Cola Pepsi Coca-Cola
McDonald's was the most popular fast food for children across the Asia Pacific region. Children from 8 of the 14 countries claimed that McDonald's is their favorite fast food. Coca-Cola was seen as the most popular soft drink preferred by children from 10 of the 14 countries. But taste is not the only thing that can draw people to McDonald's. There is the snob appeal of foreign food, which confers status on middle-class Indians flush with cash. And there is the irresistible attraction of junk food for children the world over, who are drawn to the high-octane marketing pitch of the fabled Ronald McDonald character.
5. PEOPLE
McDonald's relies upon a blend of US human resource practices and host country norms. The firm has over a million employees, a figure that is estimated to double in the next few years. The organization has a strong commitment to staffing locally and promoting from within. McDonald's India employs around 1,500 people in Delhi and Bombay. In Bombay alone, its team comprises a 100-member management and 800strong crew. McDonalds India invites applicants having a minimum qualification of higher secondary, very good communication skills, ability to work in teams and a friendly nature. But probably the most attractive side of McDonald's' activity is the training that stands as background in every single employee. McDonald's corporation
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International Business Management started its fortune-trailing people on how to be kind, fast, precise and effective: it has been an absolute pioneer in this field.
6. PHYSICAL EVIDENCE
A standard and differentiating aspect of McDonalds menu is that it displays two different menu boards in each restaurant -green for vegetarian products and purple for non-vegetarian, making it easier for customers to see their options and make their choices. Behind the counter, restaurant kitchens have separate, dedicated preparation areas for the meat and non-meat products -and even crew assigned to the products' cooking have different uniforms to distinguish their roles. The company struck a better chord with the consumers when after the consumers felt that the counters at the outlets were "too high", making the McDonald's staff "unapproachable" it immediately swung into action and reduced the height of the counters. To reinforce its positioning as a family restaurant with the prime focus on kids, it designed a counter specifically for kids keeping the height in mind. Again, keeping kids in mind, McDonald's has done away with somber colors in favor of rich, vibrant ones. Even the paintings that once tended to be abstract have been replaced with things children could relate to. It has high stools to make the tables more accessible for small kids. McDonald's offer the same message in every franchise throughout the world. "McDonald's Mein Hai Kuch Baat" is an attempt to adopt a more personal approach towards its customers, talking "to" them and not "at" them. This is yet another example of adding to their image as a global brand.
7. PROCESS
A precise way of considering McDonald's' role of operations is through Porter's value chain analysis. The Value chain breaks down the firm into its strategically relevant 67
International Business Management activities, in order to understand the behavior of costs and the existing or potential sources of differentiation. A firm gains competitive advantage by performing these strategically important activities more cheaply or better than its rivals. For a company which feeds some 38 millions clients every day, finding a reliable quality supplies is a major factor for success. McDonald's has solved the problem by making food supplies part of their success. McDonald's distributors are strategically associated to be accessible to the each restaurant and carry practically everything, from meat and potatoes to light bulbs. Coca-Cola, the well-known beverage, has been with McDonald's from the beginning supplying beverages. McDonald's is increasingly using its leverage to capitalize upon global purchasing practices. The most important part of McDonalds India's operations was developing a cold chain which is the process of procurement, warehousing, transportation and retailing of food products under controlled temperatures. Although McDonalds sources most of it's raw materials locally, several products such as French fries, specialty cheeses, some meats and fishery products, flavors, condiments and ingredients are often imported. McDonald's India is banking on quality and hygiene as its unique selling proposition (USP) to capture a sizeable portion of the fast- food market in India. This explains the company's attempts to select its chain of local food suppliers. For three years, before it opened its first restaurant in India, McDonald's and its international supplier partners worked together with local Indian companies to develop products that met McDonald's quality standards. These standards are also in accordance with Indian
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International Business Management Government regulations on food, health and hygiene segmentation, Targeting & Positioning
SEGMENTATION
McDonalds has decided on certain criteria to divide the market into relatively homogenous clusters, which it can target for commercial gain. These criteria are as follows: 1. Based on stage in Family Life Cycle People buy different goods and services over a lifetime due to the different needs associated with the distinct stages in life. Thus the consumption pattern is shaped by the stage in the family life-cycle. 2. SEC based The education along with occupation is an accepted way to segment a new market. McDonalds also segmented the Indian consumers on such a basis. Only urban segments were considered even within this criterion, as the demand for a fast-food restaurant was felt in the urban markets only. 3. Lifestyle Lifestyle of a customer dictates his/her spending habits, i.e. where he spends his disposable income. This was relevant for McDonalds as they wanted to integrate their product-service hybrid offer with the customers lifestyle.
TARGETING
SEC target: A look at the new products that have been launched by McDonalds recently shows that their focus is on the middle class. This is because they believe that
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International Business Management is where the profitability is going to come from. McDonalds plan to continue to focus on this category as of now. Family Life Cycle target- McDonalds target the following segments in this category: Full nest I: People in this stage of family life cycle have their youngest child less than 6 years, their home purchasing is at peak, and they are interested in new and advertised products. Children influence their buying decisions. Full nest II: People in this segment have their youngest child 6 years or over, their financial position is a little better than those in full nests I and they are less influenced by advertised products. They are interested in special offers, as taken out by McDonalds from time to time and children too influence their decisions.
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Positioning
McDonalds position themselves as a welcoming and affordable family restaurant committed to values of quality, fun and excitement. It is also positioned as a restaurant that makes the customer feels special and makes the customer smile. So it has a clear positioning as a family restaurant to which the customer goes for a quick bite. Such customer convenience is integrated into their seven Ps and through Quality, Service, Cleanliness and Value.
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CUSTOMER RELATIONSHIP MANAGEMENT

McDonalds is probably one of the most famous examples of the philosophy and practice of Customer Relationship Management. Each employee who has contact with a customer must conduct himself or herself in a certain prescribed way. So, no matter where one buys a McDonalds hamburger from, it will always be the same hamburger, for the same price, served within the same time line, with the same smile. Always. Through careful analysis, McDonalds knows exactly what expectations their client-tobe have of them and how to fulfill them or, exceed those expectations. In fact, they are not overly concerned with exceeding people's expectations: just meeting them, time after time. CRM is the business of managing people during the buying cycle. We define CRM as, "The profitable integration of People, Processes and Technology." McDonalds conducts regular satisfaction surveys of the customer experience, manages high value information in an organized customer database, makes it easy for the customers to buy from McDonalds, and constantly anticipates customers need and their expectations.
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INTERNATIONAL BUSINESS STRATEGIES OF MCDONALDS
McDonald's relying more on international stores: Faced with increasingly intense competition in the United States, McDonald's Corp. is increasingly relying on its international operations for the majority of its profits and the bulk of its new-store openings. I think there definitely will come a time when 80 percent of our profits come from outside the United States,'' James Cantalupo, president and chief executive of McDonald's international operations, said in a telephone interview. ``I would describe our international business as one of huge opportunity.''For McDonald's, the International market, where it has more than 24,500 restaurants, represents an open field compared with the United States. While McDonald's dominates the U.S. fast-food market with more than 12,000 restaurants, the domestic industry is considered by many analysts to be saturated.
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International Business Management Thus for players like McDonald's, Grand Metropolitan's (GMET.L) Burger King and Wendy's International Inc. (WEN), the U.S. strategy is one of stealing market share. McDonald's, which from mid-1995 to the end of 1996 saw six straight quarters of declining U. S. same-store sales, has scaled back on its domestic expansion. Of 2,400 restaurants expected to be opened this year, 80 percent will be overseas. In the past, about two-thirds of McDonald's new openings have been overseas. International operations account for 60 percent of McDonald's profits, 80-plus percent of new units and are expected to grow at about four times the rate of its business in the United States, Merrill Lynch analyst Peter Oakes said in a recent report. McDonald's international presence goes back more than 25 years to a time when the company was starting to sell hamburgers abroad while its U.S. business was carrying the profit load. The U.S. business carried our international operation for many years, while we were building an infrastructure that is paying dividends today,'' Cantalupo said. With McDonald's opening some 2,000 restaurants outside the United States each year, it will open more units overseas in the next five years than it did in the past 30 years, Cantalupo said. About 40 percent of McDonald's international restaurants are company-owned, with another 40 percent operated by franchisees and another 20 percent in joint ventures. After establishing a presence in many international markets including a foothold in places like India, where it sells lamb and vegetarian sandwiches, and China McDonald's has taken the lead from its global competition.
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International Business Management Since, McDonald's serves less than 1 percent of the world's population on a daily basis it presents a ``huge'' opportunity to sell hamburger and french fries to a growing world population with an increasing appetite for Western products. McDonald's India In A Fix Over Franchisee Fee To Us Parent: McDonald's India. Pvt. Ltd. (MIPL), the wholly-owned subsidiary of US-
based fast food giant, McDonald's Corporation, is in a fix over paying franchisee fees to its US parent. The company wants to remit an amount of $13,05,000 to its parent
immediately but is unable to do so because the Government feels that it did not inform about such arrangements at the time of opening operations in India in October 1996, when it launched its first restaurant here. When McDonald's opened its operations in India, the company was permitted to set up shop in the country subject to the condition that no dividend would be repatriated during the first seven years of operation. The company would, however, pay a service fee of five per cent on sales during this period but there was no mention about any franchisee fees. Now, the company has informed the Foreign Investment Promotion Board that
as early as in January 1996, much before opening its first restaurant in India, MIPL has entered into a Master License Agreement with the parent company according to which McDonald's India should pay McDonald's an initial franchisee fee of $45,000 prior to opening each restaurant in India along with the monthly royalty of five per cent on gross sales. MPIL wants to remit the amount now.
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International Business Management While the Ministry of Tourism has not objected the Ministry of Food
Processing is strongly against giving such permission to the company following which the Ministry of Industry has put it on hold, sources said. According to Government sources, there are difference of opinion within the
Government on whether it should take a lenient stand in such cases where a wholly-owned subsidiary of a foreign company hides information about its pact with the parent company regarding payments in foreign currency. Going by the company's declared plans of opening 80 restaurants by 2008, the
total amount the company would remit back home stands at $36,00,000 as franchisee fees. This is over and above the company's monthly remittances of five per cent of its total sales turnover as service fees to its parent. McDonald's currently has 56 restaurants in India of which 16 are in Delhi, 13
in Mumbai, 3 in Pune, 4 in Ahmedabad, 2 each in Bangalore Hyderabad Indore & Baroda 1 each in Surat Nasik & and Jaipur and another on the Delhi-Agra national highway. McDonald's India Pvt. Ltd. has a paid-up capital of a little more than Rs 111.37 crore divided into 111,37,74,72 equity shares of Rs 10 each. Currently, one share of Rs 10 is held by McDonald's Corporation, USA, and the remaining 111,37,74,71 equity shares of Rs 10 each, which was earlier held by McDonalds's Restaurant Operations Inc., has been acquired by McDonald's International Branch Holdings Ltd.
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POLICY AND FUNCTIONAL STRATEGIES

McDonalds has been an industry leader within the fast food industry for years. In the introductory phase of their business operations they focused on following a generic low cost strategy consisting of offering consumers low priced food products in order to, make eating out on a regular basis affordable for families. Faced with changing consumer trends and competitors pursuing aggressive competitive strategies focused on product differentiation and quality; McDonalds then CEO, Jim Cantalupo, determined in order to address the companies recent profit losses and challenges a different stand on generic strategy must be taken. Through the implementation of McDonalds Plan to Win strategy, Cantalupo shifted the companys generic strategy to differentiation by focusing on marketing to turnaround the negative publicity recently experienced through offering customers a better overall fast food experience as compared to their competitors. McDonalds financial strategy focused on decreasing capital expenditures by 40% while using their cash from 2007 operations to pay off debt and return cash to stockholders. These financial strategies have allowed the company to implement the Plan to Win strategy while also improving stock performance and sales. Through a growth strategy that involves renovating, rebuilding, and relocating buildings; McDonalds hopes to create a, fresh, sophisticated, but family-friendly atmosphere. However in order to sustain growth and success, additional investments may be needed in the future. McDonalds personnel strategy promotes their desire to market an exceptional customer experience. Hospitality training and e-learning programs offer McDonalds the most cost effective method of training for restaurant staffs, while ensuring
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International Business Management employees are dedicated to customer service through the attitudes and skills they bring to the workplace. This directly supports the managerial functional goal of creating a stimulating work environment. Production strategies promote an overall quality experience by offering new products to customers in order to address growing changes in demand for healthier foods and premium products. Technological improvements, including wireless hot spots, improves the relevancy of the overall quality experience McDonalds is trying to market to consumers. With these improvements in each functional area, McDonalds marketing strategy aims to build trust and brand loyalty among current and future customers in order to gain significant competitive advantage in the marketplace. Currently McDonalds functional strategies are all successfully co-aligned with their new generic strategy of marketing differentiation focusing on quality customer experiences. Although Jim Cantalupo is credited to McDonalds improved
performance only the future can tell if such strategies will provide McDonalds with the core competencies needed to remain competitive in an overly saturated industry. At which time McDonalds functional strategies may need to be re-evaluated in order to maintain sustainable marketing differentiation.
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FINANCIAL ANALYSIS/RATIO ANALYSIS
With regards to liquidity McDonalds is among the industry standard. McDonalds has a current ratio of 0.76 in year 2007 consistent with the industry. This indicates that McDonalds should increase their current assets in order to increase the likelihood that they will be able to meet current liabilities and cover short term debt. Additional liquidity will provide McDonalds a greater degree of financial flexibility, which will be necessary to continue with their current strategy. According to past data this low ratio suggests that this is a typical trend experienced within the industry and this should not be a large concern for the company. Concerning the acid test ratio again McDonalds is among the industry average with an acid test ratio of .4937. Among major competitors Sonic has one of the largest acid test ratios at .77. Regarding activity ratios, with respect to operating cycle, 2007 data indicates that McDonalds is currently operating on a 21 day cycle compared to the industry average of 19 days. This again shows that McDonalds fares about average among their competitors. According to the 5-Year Financial Summary (Appendix A) McDonalds has improved their operating cycle in the last few years
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International Business Management by slowly decreasing the number of days involved. According to financial data, McDonalds has maintained a relatively consistent fixed asset turnover in the last 5 years with a ratio of 0.9 in 2007 compared to an industry average of 1.5 casting a positive light on the company. Regarding leverage ratios McDonalds is at a slight disadvantage to their competitors. Their debt to total equity ratio in 2007 was 0.81 compared to an industry average of 0.58. Although this is a relatively small incremental difference between the two ratios, McDonalds should focus on lowering this ratio. Times interest earned for McDonalds are 4.8 while the industry operates at a 6.1 ratio. This casts McDonalds in a negative light indicating higher interest rates for the firm compared to competitors. This can be attributed to the companys high degree of leverage within the industry. Profitability ratios must also be considered when analyzing McDonalds financial strength. They have reported a return on assets ratio of 6.09, with the industry operating at a ratio of 7.90. Although this indicates they are at a slight disadvantage compared to their competitors, the 5-year financial summary indicates that they have significantly improved from 2006 when return on assets was only 4.27. With regards to return on equity, McDonalds operates on a 13.55 ratio while industry competitors operate on a 16.37 ratio. This again shows that they are at a slight disadvantage compared to their competitors. Ultimately after consideration of all of McDonalds financial ratios, their profit margin in 2007 was reported as 8.80 with an industry reported ratio of 6.93.
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International Business Management When analyzing the profit margin of McDonalds in past years this percentage increase shows that McDonalds turnaround strategy implemented by Cantalupo is directing the company into the right direction.
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COST ANALYSIS
Analysis suggests that McDonalds needs improvement in cost control. Their depreciation and extraordinary expenses rank below average compared to competitors; indicating cost financial areas McDonalds must address in order to remain competitive within the industry. As a result of their better than average selling, general, and administrative costs this helps improve their overall cost situation. Interest and cost of goods sold are among average in the industry however they are located on the low end of the spectrum. This again indicates areas of improvement with regards to cost management by the company. Despite their below average ratings an under weighted trend of 0.4 and a weighted trend of 0.02 suggest that among all cost ratios McDonalds is on the road to improvement.
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ENVIRONMENTAL ANALYSIS OF McDonalds

STRENGTHS According to the Company Capability Profile McDonalds greatest strength can be found in competitively taking advantage of market growth. McDonalds has had one of the strongest international presences among fast food competitors. McDonalds has successfully integrated local eating trends and traditions worldwide by varying local menus in different regions of the world. Although all fast food chains have experienced consistent expansion overseas, McDonalds has had the strongest presence since the beginning. As the domestic market began experiencing over-saturation, more than half of McDonalds locations were located throughout the world. This increased McDonalds competitive edge over other fast food chains with industry predictions stating that international countries may be the only source of growth for the fast food industry in future years. This market growth attributes to another competitive strength found in McDonalds which is its market share. Although McDonalds market share has been somewhat declining in recent years, the company announced system wide sales of $20,305.7 million in 2007. Among the largest chains in the restaurant industry Burger King ranked number two with only $8,350.0 million in sales demonstrating the significant sales differential among McDonalds and their competitors. Although managerial factor scores indicate a weak managerial functional area relative to the industry, CEO Jim Cantalupo can be characterized as a balanced leader Cantalupo is largely credited for his Plan to. Win turnaround strategy which helped McDonalds achieve, double-digit percentage sales gains. As a result of Cantalupos
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International Business Management success much of the negative managerial blame can be placed on management initiatives taken prior to his post-retirement tenure. Brand Equity worldwide: McDonald's has a brand name and brand value associated with it world wide. With its corporate vision and mission spelled out in clear terms world wide McDonald's commands respect and belief in the minds of the people through out the world wherever its operations are present. Consistency of food products: McDonald's has well laid out procedures for preparing food, checking the quality of the food items at various stages, the equipments used are also pre calibrated to add the quantity of ingredient, etc. making the taste the food consistent at any of its outlets. Global Access: Besides USA, McDonald's has its operation in 121 countries giving it the largest overseas market and tremendous growth opportunities. Successful items on menu: On its menu, the company has successful food products such as Burgers, French fries, Happy meals, McPuff, etc. and to add to this McDonald's marketing strategy has various promotional schemes to make it more attractive during the lean time periods, generally known as Happy hours. WEAKNESS Prior to the return of Cantalupo, Jack Greenberg served as CEO. Much of McDonalds poor performance in 2002 can be attributed to Greenburgs strategic direction. Although he had many ideas that focused on improving customer service rankings many business analysts criticize Greenberg in that he launched too many initiatives simultaneously and had failed to properly implement any of them (Marino 630). Such traits indicate that Greenberg can be described as a novice leader.
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International Business Management McDonalds focused too heavily on increased expansion and diversification to new food segments within the industry. This weakened McDonalds while draining them of financial resources. Product innovations developed included the, Made for You cooking system costing the corporation $420 million, while franchisees were forced to invest between $18,000 and $100,000 in kitchen upgrades. Such a financial investment led to additional problems between McDonalds and their franchisees, a relationship that was on shaky grounds to begin with. These unsuccessful initiatives put McDonalds at an extreme disadvantage to their competitors; many of who gained competitive advantage while McDonalds remained slow to respond to changing market conditions. This lack of proper strategic planning implemented during Greenbergs tenure has resulted in the lowest performance ranking in the fast food industry based on such factors as poor customer service, extremely high employee turnover, and slow order processing time. Such factors hindered McDonalds and forced them to play catch up in an already overly saturated market. Such poor rankings can ultimately jeopardize the firms new strategy of market differentiation in the future by forever casting a negative light on the company. One order at a time: Employees take one order at a time, making the other customers to wait in line. This allows for accuracy and quality of the service to a high degree but decreases the speed of the service. Business focus: The employees seem to be more focused on the business rather than on the customers. Therefore the element of human touch is missing in the restaurants. Formal Communication: Only communication between the customer and the employee is during the placement of the order.
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International Business Management Inflexible products: Though the variety of food items provided is large but there is still inflexibility in terms of food products, like some people may want to have onion in their burgers while others may not. Serving in the Same tray: Even while McDonald's has separate production lines for the vegetarian and non-vegetarian food products, still when it comes to serving, the employees serves the two different products in the same tray, which is sometimes objected by the strict vegetarians.
EXTERNAL ENVIRONMENTAL ANALYSIS

The fast food industry is a mature, but highly competitive industry dominated by a few major restaurants including: Burger King Corporation, Wendys International, Inc., CKE Restaurants, Jack in the Box, and Sonic. These fast food chains must rely on their strengths to take advantage of opportunities present in the industry while overcoming their weaknesses and avoiding their threats.
OPPORTUNITIES
Utilizing an environmental threat and opportunity profile (ETOP); demonstrates that McDonalds has the greatest chance of opportunity concerning geographic and technological environmental forces. Industry predictions indicate that much of the future growth present in the fast food industry will come from overseas expansion. Success will come first to those companies who are able to market themselves successfully within international geographic environments. This opportunity
successfully aligns with McDonalds current competitive strength with regards to international market growth.
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International Business Management In this mature industry market differentiation can be enhanced through quality improvements and innovations. The ETOP profile indicates that technological advancements can bring such success to McDonalds. By providing wireless Internet services in restaurants across the globe McDonalds is adding value to the desired customer experience they are attempting to elicit. Serving only 1 percent: McDonald's with its huge presence in more than 121 countries and serving about 45 million people every day worldwide still serves less than 1 percent. So there is huge opportunity of growth. International Exposure: McDonald's has a vast exposure and experience of operating in different cultures and it is because of its flexibility of adopting the cultures that it has been able to lead the fast food industry from the front. Growing Dining-out market: with the increase in the dining out culture and trend in the market, it is expected that the sales of McDonalds should increase.
THREATS
Overwhelmingly social forces are the largest threat to McDonalds. Consumer preferences are now geared more towards healthier food alternatives and McDonalds has traditionally had a negative image in regards to providing health benefits to consumers. Although McDonalds is attempting to overcome such an environmental threat, they are an easy target for negative publicity. Being the industry leader for decades naturally makes them the first to be targeted. Competitors present in the industry often serve as a major environment threat to the fast food chain. Fast food chains such as Burger King and Wendys have been more successful than McDonalds in addressing current consumer health trends. Wendys has successfully
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International Business Management adapted to this change in lifestyle with the introduction of their gourmet salad line. Although McDonalds is now offering more products to such health conscious consumers, new sandwich chains such as Subway will serve as an alternative to the typical greasy fast food hamburger chains. Competition: With opening up of newer fast food joints providing more options to choose from and better service, the market has started to feel the heat because of the competition.
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DATA ANALYSIS, FINDINGS AND OBSERVATIONS FROM QUESTIONNAIRE

1. How frequently do you go to restaurants? Frequency Holidays Special occasion Weekends Everyday Respondents 31 44 15 6
Visit Frequency
6% 16% 32% Holidays special occasion weekends Everyday 46%
Findings: We can see from the graph that out of 96 respondent majorities near about 46% visit a restaurant only on special occasion. 32% respondents prefer to visit during holidays.
2. Which restaurants do you visit? Name of Fast Food Chain McDonalds Nirulas Respondents 32 37
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International Business Management Pizza hut Others Share of Fast Food restaurants
10%
17 10
33% 18%
McDonalds Nirulas Pizza hut Others
39%
Findings: Inside Delhi 39% People still preferring Nirulas whereas 33% are preferring McDonalds 18% are preferring Pizza Hut and rest of the 10% prefer others like Agarwals, Dominos, are preferred by the people.
Driving factors
3. What drives you to go to this restaurant? Driving Factors Quality 14% Better service Homely atmosphere 27% No. of Respondents 57 quality 26 13
better service homely atmosphere
59%
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Findings: Majority of the respondent visit the fast food joints due to good quality of food and the percentage is near about 59% .and 27% of people prefer better service in the fast food restaurants .
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International Business Management 4. What is the time taken at the counter to book your order? Order placing time <2 minutes 2-5 minutes 5-7 minutes 7-10 minutes Order taking time by McDonalds
25 20 15 10 5 1 0 <2 mins 2-5 mins 5-7 mins 7-10 mins 1 8
Respondents 8 22 1 1
22
Findings: In McDonalds the order placing time recommended by the respondent is near about to 2-5 minutes. Some of the people also said that it is less then 2 minutes.
So from here we can say that order procession time is very less in McDonalds and also a reason for attracting and serving more and more customers in minimum time.
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International Business Management 5. How much time do they take to deliver your order?
Delivery time <5 mins 5-10 mins 10-15 mins >15 mins
Order Delivery time(McDonalds) 20 18 16 14 12 10 8 6 4 2 0 19
11
1 <5 mins 5-10 mins 10-15 mins
1 >15 mins
Findings: Order Delivery Time in McDonalds is <5 minutes and few of them also said that it takes 5-10 minutes. It is definitely quicker then other fast food restaurants. And as we all know saving time is saving money, so customers definitely want to save both.
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International Business Management 6. What is your view about the hospitality provided by Mc Donalds? hospitality Average Good Very good Excellent Respondents 2 17 10 3
Hospitality at McDonalds
9%
6%
avg
31% 54%
good very good excellent
Findings: 54% said that In McDonalds the hospitality shown by the employees of McDonalds is good. 9 % of the respondent said that the hospitality in McDonald's is excellent.31% is said that the hospitality is very good. So customers come and go with a good image of McDonald's in mind.
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International Business Management 7. What is your satisfaction level with McDonald's? Attributes Extremely Satisfied Moderately satisfied Moderately dissatisfied Extremely dissatisfied Up to Mark No. of Respondents 38 31 23 10 6 Percentage 38.50% 31.20% 23.90% 10.40% 6.25%
Satisfaction level of customers 6% 35%
9%
22%
28%
Extremely Satisifed Extremely dissatisfied
Moderately Satisfied Upto Mark
Moderately dissatisfied
Findings: 38.5% of customers are extremely satisfied with McDonald's others are moderately satisfied and there are very few who are dissatisfied with McDonald's.
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International Business Management 8. What is the level of understanding of service problems of the customers by employees?
Attributes Excellent Very good Average Poor
Percentage 18.75% 41.60% 25% 14.50%
Findings: The employees and authorities of McDonald's understand the service problems as describes by customers. That is the reason why customers have given 14.50% "very good" remark for this reason. 18.75%
25% 41.60% Excellent Very good Average Poor
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International Business Management 9. Which combination of the factors do you thing very vital while you select a particular fast food restaurant? Comb. Of factors Service, price, location Service, price, promotion, location Price, location, promotion Respondents 48 37 11
Combination of factors ser+pri+location ser+pri+promo+loc pri+loca+promo
11%
50% 39%
Findings: out of the 96 responded 50% of the people said that they prefer service price and location as the combination of factors, which is very vital while selecting a restaurant. 39% also said that service price promotional scheme and location are the factors which are very essential. This means that service and price are the major factors people get attracted to.
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International Business Management 10. Why do you prefer McDonald's? Reason of Preference Service differentiation Product differentiation Price Promotion Respondents 4 7 17 4
Error! Objects cannot be created from editing field codes. Findings: Out of 32 respondent 17 said they prefer McDonalds because of the price differentiation and 7 said that due to the product differentiation they come to McDonalds. Price is a factor which attracts all categories of people towards it.
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International Business Management 11. How frequently do you visit any other restaurant except McDonald's?
Regularly Frequently Occasionally Rarely
7 47 29 13
Frequency 20% 16%
Frequently Occasionally Rarely
64%
Findings: 16% frequently visit other restaurants whereas 64% occasionally visit the other restaurants. 20% rarely visit other restaurants.
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International Business Management 12. Which fast food chain you evaluate as the best in terms of ambience among McDonald's, Nirulas and Pizza Hut? Fast Food Chain McDonalds Nirulas' Pizza Hut Others Respondents 330 262 371 204
Ambience Score (cumulative) for the fast food restaurants.
17% 33%
McDonalds Nirulas' Pizza Hut Others

28%
22%
Findings: Out of 96 respondent From Ambience Point of view Majority 33% said Pizza Hut has better then others the others Fastfoods Ambience Score are respectively 22% Nirulas , 28% McDonalds.
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International Business Management 13. Which fast food chain you evaluate as the best in terms of cleanliness among McDonald's, Nirulas and Pizza Hut? Fast food chain McDonalds Nirulas' Pizza Hut Others Respondents 374 325 364 251
Cumulative score (cumulative) in Cleanliness
19%
28%
28% 25%
Findings: Out of 96 respondents Majority 28% prefer Pizza Hut and McDonalds in Cleanliness and say that both of these have better cleanliness then others Fast foods joints. Cleanliness Scores are respectively 25% and 19% for Nirulas and others.
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International Business Management 14. Employee Behaviour Score (Cumulative) Fast food chain McDonalds Nirulas' Pizza Hut Others Respondents 379 312 361 247
Employee Behaviour
19%
29%
28% 24%
Findings:
From the employee Behavior Point of View 29% people said that
McDonalds is better then the others. 28% said Pizza Hut is a better. This shows that McDonalds and pizza hut are equally good.
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15. Space Management Score (Cumulative) McDonalds Nirulas' Pizza Hut Others
340 372 328 226
Space Management
18%
27%
26% 29%
Findings: from this graph it is suggested that in space management Nirulas is getting 29% and is better then McDonalds which is at 27% .even pizza hut is competing, so space management is good at all places.
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International Business Management 16. Menu Composition Score (Cumulative) Fast food chain McDonalds Nirulas' Pizza Hut Others Respondents 331 359 306 374
Menu Composition
28%
24% McDonalds Nirulas' Pizza Hut Others 26%
22%
Findings: Menu composition wise the other restaurant like Aggarwals and the local restaurants are having more flexibility then the other fast food joints like the McDonalds Nirulas and Pizza Hut.
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International Business Management 17. Would you recommend McDonald's to your friends and relatives?
Attributes Definitely Yes Probably Yes Probably No Definitely No
No. of respondents 60 22 14 2
Percentage 60.40% 22.90% 14.50% 2.08%
14.50%
2.08%
Definitely Yes Probably Yes Probably No Definitely No
22.90%
60.40%
Findings: As we can say looking at the graph that maximum customers have said "definitely yes" for recommending McDonald's to their friend and relatives. This means that they are very happy with services provided by McDonalds.
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CONCLUSIONS
McDonald takes the share on this attribute by providing the customer with fast and friendly services. At McDonald we get your order usually within 60-90 seconds from the time it is placed. Providing the customer fast and friendly services is the philosophy of McDonald's. This is the big advantage McDonald's is having over the other restaurants. The customer satisfaction levels are better than the other competitors McDonald's is having. If we compare the space management Nirulas is having better space management than McDonald and Pizza Hut. The advantage McDonald having over the other restaurant is I) Ambiance ii) Employee behavior iii) Cleanliness and iv) Price. There is a price and service quality factor today, which the customer is looking for. It is giving an edge to McDonald's over Nirulas and Pizza Hut.
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RECOMMENDATIONS
Being not a part of decision-making team at Mc Donalds, the recommendations mentioned below are my personal views. McDonalds pursue an aggressive strategic direction in order to further increase their initial increase in sales and profits after the implementation of Cantaloupes turnaround strategy. Action Plan for Short Term: It is essential for McDonalds to address promotional issues relating to their desire for quality. New promotions must be developed if McDonalds hopes to regain the trust and loyalty that was shattered by their negative image. Promotions should demonstrate McDonalds willingness to respond to consumer desires while focusing on social responsibility issues that have plagued the company with negativity publicity including health related problems such as obesity. Mc Donalds should continue with cost reduction to continue paying off prior debt obligations while increasing shareholder wealth. Action plan for Long Term: In order to remain competitive in an overly saturated mature industry, McDonalds should continue to increase international expansion efforts. International expansion efforts currently serve as one of McDonalds core competencies and as a result they should enhance their strategic presence in the marketplace by enhancing this capability. The domestic market is already overly saturated and in order to decrease the risk of cannibalizing existing franchisees McDonalds should seek to expand in those countries where they have minimal market presence. Following a concentric diversification strategy is another long-term plan the company should implement. Such diversification allows a company to offer products or 107
International Business Management services within different SIC codes, but remain relatively similar to the present product line. To address changing consumer preferences McDonalds should offer more foods geared towards healthier consumer eating trends, while also offering more premium products to follow their desire for marketing a quality customer experience. To guarantee service focused on quality customer experiences hire only those managers and employees who demonstrate understanding of the importance of following and supporting McDonalds future strategic direction. The international scene is where the real growth potential lies for McDonald's and also where perhaps the greatest challenges lurk. But in the midst of recessions, currency devaluations, and economic strife, the chain has stuck resolutely to international expansion plans. McDonald's has signed a new licensing agreement that will continue McDonald's restaurant expansion in Japan through the year 2030. In February the chain opened its newest overseas unit in the Republic of Georgia, bringing its global presence to 115 countries and some twenty-five thousand restaurants. After the detailed findings and analysis of various responses I would like to
put some suggestive points. McDonalds should increase the space available inside their fast food joint. McDonalds should also restructure their menu composition to attract all kinds
of customers with different preferences.
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International Business Management For the employees McDonald's should also introduce some new ideas to
satisfy the customers and give them customized services to fulfill their social needs. Seeing that the choice and selection of the children by and large dominate
buying behavior of the family, therefore I suggest that McDonalds should try and capture more of this section. From the past few years McDonalds is doing the same by introducing meal combos, toys, and special children day program, McDonald India has to make it presence felt, for long time as giving a Scholarship program for students. A lasting impression in the student community would help a long way in the Brand Recognition. They also need to have a thorough understanding of their competition. McDonald's presently considers three basic areas: 1. The Total Eating out Market gives the broadest competitive context and includes all restaurants, hotels, pubs, and any other outlet where people eat. 2. They also focus on the Quick Service Restaurant sector, this includes all the obvious competition and also fish and chip shops, and sandwich shops - any outlet where food is served quickly. 3. The final sector that they focus on is defined as the Burger House Sector. This looks only at restaurants serving hamburgers including Burger King, Wimpy and all independent burger bars.
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International Business Management 4. A useful way to gaining knowledge of all aspects of the competition is the examination of the four Ps of the marketing mix: Product , Price, Place, Promotion. 5. Combo Options with various movie halls like PVR, Priya etc. can help to increase volumes. 6. Order placing compatibility on the Internet for home delivery and verification done through a phone call from McDonalds to the customer. McDonald's has started the free home delivery service but few important suggestions to make full use of the scheme are as follows: Customer Identification for the customer database. Order Details along with order time and promised order delivery time range. Verification with customer for the same imperative. Identification of nearest McDonalds outlet. Check for traffic and cost of delivery vis--vis the identified outlet. On delivery conformation received against the order number and the outlet identification number. McDonalds should continuously develop a marketing strategy to understand the customers, enabling reaction to their changing needs and the changing dynamics of the market. McDonald's should always conduct in-depth customer research and audits of it's brand.
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International Business Management The research should involve both quantitative and qualitative research methods. When low price, delicious and differentiated product associated with finest quality and service in the industry is sure to say, "sky is the limit".
111
LIMITATIONS OF STUDY
1. Certain limitations were inherent with this project work. 2. 100% response rate was not found from the respondents. Some extent of biasness was found because of Brand loyalty while answering the questions. 3. Potential biases such as reluctance of consumers, executives etc. 4. Lack of interest of the respondent was one of the major problem. 5. The Geographic extent of this study was limited to the Delhi market only. 6. The research only tries to present a bird eye view of the entire gamut of Indian Small appliances Market.
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BIBLIOGRAPHY
BOOKS & NEWSPAPER
Marketing Management by Philip Kotler & Kevin Lane Keller, XII edition. Marketing Management (Global perspective Indian Context) by V. S. Ramaswami & S. Namakumari, III edition. Research Methodology by C.R. Kothari. Zeithmal Marketing of Services. Businessworld, Biweekly magazine, February-March edition 2008. The Economic Times, February & March daily editions. Times of India, February & March daily editions.
INTERNET WEBSITE LINKS

www.mcdonalds.com www.hindubusinessonline.com www.wikipedia.org www.livemint.com
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ANNEXURE
QUESTIONNAIRE FOR CONSUMERS
1. How frequently do you go to restaurants? Only on holidays Weekends On special occasions Everyday
2. Which restaurants do you go to? McDonalds Nirulas Pizza Hut Others (specify) ---------------------
3. What drives you to go to this restaurant? The quality of food Homely atmosphere Better service
4. Are you satisfied with the present service provided by the Restaurant? Yes No
5. What is the time taken at the counter by you to book your order? Within 2 minutes 5 - 7 minutes 2 - 5 minutes 7 - 10 minutes
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6. How much time do they take to deliver your order? Within 5 minutes 10 - 15 minutes 5 - 10 minutes More than 15 mins.
7. What is your view about the hospitality provided by this Restaurant? Average Very Good Good Excellent
8. What is your satisfaction level with McDonald's? Attributes Extremely Satisfied Moderately satisfied Moderately dissatisfied Extremely dissatisfied OK 9. What is the level of understanding of service problems of the customers? Attributes Excellent Very good Average Poor No. of respondents Percentage No. of Respondents Percentage
10. Which of the combination of the factors do you thing very vital while you select a particular fast foods Service price and location Service, Price, Promotional Scheme, Location
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International Business Management Price, Location, Promotional Scheme
11. Why do you prefer McDonald's? Service differentiation Product differentiation Price differentiation Promotional Scheme
12. How frequently do you visit other restaurants except McDonald's? Regularity Occasionally Frequently Rarely
13. How do you evaluate at the various aspects McDonald's, Niruals and Pizza Hut? Scale 1-5 (1 is the minimum, 5 is the maximum) McDonalds Nirulas Pizza Huts
Ambience
Cleanliness
Behaviour of employees
Space management
Menu composition
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International Business Management Quality of food
Service quality
14. What do you have to say for happy hours concepts in McDonalds? Excellent Does not matter Good idea Poor
15. Please give suggestions (If any) for improvement in service quality.
16. Which similar restaurant you think has the best service quality and why?
17. Would you recommend McDonald's to your friends and relatives? Attributes Definitely Yes Probably Yes Probably No Definitely No No. of respondents Percentage
18. Any Suggestions for overall improvement of fast food joints?
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MC' Donald - Marketing Strategy

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International Business Management

THESIS ON MARKETING STRATEGIES ADOPTED BY MC DONALDS

SUBMITTED BY: Chandan Kumar

MAHARSHI DAYANAND UNIVERSITY ROHTAK

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PROJECT OUTLINE FOR THESIS

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Page No. 1-2 3-4

INTRODUCTION TO PROBLEM Objectives & scope of the study

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DATA ANALYSIS & INTERPRETATION

Data Analysis, Findings And Observations From Questionnaire

Conclusions Recommendations Limitations

100 101-105 106

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PRESENT POSITION OF THIS INDUSTRY IN RESPECT TO SERVICE GAP

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OBJECTIVE & SCOPE OF STUDY

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INDUSTRIALIZATION OF SERVICES BUSINESS MODEL

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GAP ANALYSIS AND NEW PRODUCTS

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USAGE GAP = MARKET POTENTIAL EXISTING USAGE

MARKET GAP ANALYSIS

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DATA ANALYSIS & INTERPRETATION

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USE OF SUB-STRATEGIES AT McDonald's

Training and Education

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McDonalds INDIA SUPPLY CHAIN

CORPORATE SOCIAL RESPONSIBILITY

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PRESENT POSITION OF FAST FOOD INDUSTRY

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MAJOR PLAYERS IN THIS FIELD

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B. Hygiene and Sanitation

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Dominos Diversity Mission Statement

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A Brand With Bite

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PORTERS FIVE FORCES MODEL WITH REFERENCE TO FAST FOOD JOINTS

established distribution Success dependent on

Pizza hut, McDonalds with deep pockets and rapid

consumer perceptions Higher purchasing power

(Nirulas, Pizza Corner, US. Pizza)

with home made food Ready to cook foods