Professional Documents
Culture Documents
G R O U P M EM B ER S
TALHA RIAZ MINHAS L1F09BBAM0224
(LEADER)
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INTRODUCTIO
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• This wonderful phrase echoes around the world 50 millions
times a day, in 30,000 locations, in multitude of
languages, in more than 120 countries around the globe.
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• Net income▲ US$ 4.31 billion (FY 2008)
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• Total assets ▲ US$ 29.2 billion (Q2 2009)
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• Total equity▲ US$ 13.2 billion (Q2 2009)
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• Employee s 400,000 (2008)
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McDonald ’ s Pakistan
McDonalds first opened a store in Pakistan in September 1998, in Lahore.
Since then they have opened seventeen new stores through Pakistan. Today
millions of Pakistanis place their trust in McDonald's everyday to
provide them with food of a very high standard as well as good service.
In the past five years, the response to McDonalds coming to Pakistan has
been overwhelming.
Lakson Group Companies
Today has taken over McDonalds Corporation, USA and a
local partner making it a 100% owned and operated
Pakistani company. McDonalds located in Pakistan are
currently employing about 1,000 Pakistanis and each store
is managed by Pakistani managers. They have also
contributed in other ways than food service. McDonalds has
investment of over Rs 300 crore in the country and
payment of taxes and duties amounting to more than Rs
100 crore. Since McDonalds is doing so well in Pakistan they
will continue to grow and add more stores in more cities in
the future.
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Islamabad:
Lahore:
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• Ronald McDonald Field Programs
The world’s most popular character, Ronald McDonald, frequently
visits the paediatrics department of local hospitals to entertain
sick children and distribute gift among them. His visits to various
schools and orphanages are always eagerly awaited by children.
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• McSaviors Public Awareness
Program
• To make people realize that the world’s natural resources are fast
diminishing and something must be done about it, McDonald’s has
created a public awareness program called ‘McSaviors’. Launched as
a special initiative on the part of McDonald’s to protect the
environment, ‘McSaviors’ involves children as they are going to be
in charge of the future.
• ‘McSaviors’ children are empowered to penalize adults found wasting
water and electricity. The minimum penalty amount is Rs. 10.
McDonald’s will use the penalty money to promote measures that
will prevent further wastage, such as replacing regular bulbs
with energy savers, repairing leaking water supply lines, etc.
The program has been launched in association with the express
news.
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McDONALD’s OTHER ACTIVITIES
• M cD O N A L D ’ s C E L E B R A T E S T E A C H E R S D A Y
M cD O N A LD ’ s ce le b ra te s te a ch e r’ s d a y.
RAMADAN OFFERS
M cD O N A LD ’ s o ffe rs h is co stu m e rs w ith g re a t d e a ls in ra m a d a n .
CCASIONAL ACTIVITIES
M cD O N A LD ’ s ce le b ra te s e id d a y w ith h is co stu m e rs like h is
fa m ily.
GOALS AND OBJECTIVES
• McDonald ’ s FRANCHISES
• Becoming a McDonald's franchisee is not for everyone. You'll
need a significant financial investment, a habit of hard work,
a long term commitment and a hands-on approach to
running a customer-orientated business.
• Although your work will be rewarding both financially and
personally, don't think of a McDonald's franchise as a
licence to print money. The rewards are certainly there, but
they're for the earning, not the taking. And if you're looking
for an investment where you can sit back and not be
involved, this isn't for you. We're not trying to put you off -
we just want you to be aware of some of the realities before
you go further.
• Like we said, a career as a McDonald's franchisee is not by any
means for everyone. Equally, we don't accept just anyone
either. Ideally, you'll already have a successful business or
career and will have demonstrated significant team
leadership.
• There's more to running a McDonald's franchise than serving
burgers and french fries - much more. You'll need a
remarkable aptitude for connecting and communicating with
people. You'll be completely committed for at least 20 years,
with no other business interests. And we only offer
franchises to individuals although many of our franchisees
run their businesses as husband-and-wife teams.
M cD o n a ld ’ s F R A N C H IS E
CAn esOeadSgtouTidpero, vi
th e co st o f a n a ve ra g e re sta u ra n t is £ 2 0 0 , 0 0 0 . Yo u w ill
d e a t le a st 2 5 % o f th e va lu e a s u n e n cu m b e re d fu n d s, th e
re m a in in g 7 5 % ca n b e fu n d e d th ro u g h a b a n k lo a n w ith fa vo u ra b le
fu n d in g te rm s.
T h e re 's a lso a o n e - o ff fra n ch ise fe e o f £ 3 0 , 0 0 0 a n d a tra in in g d e p o sit
o f £ 5 , 0 0 0 w h ich w ill b e re fu n d e d w h e n yo u co m p le te yo u r tra in in g .
T h e re a re a lso o n g o in g fe e s. T h e se in clu d e :
- Monthly rent on the premises , based on sales and profitability
( usually about 12 % )
- Service Fee for use of the McDonald's system - 5 % of sales
- Contribution to national marketing spend , currently 4 . 5 % of sales .
• O th e r R e q u ire m e n ts to O p e n a
M cD o n a ld 's
• Significant business experience - Individuals who have
demonstrated successful ownership or management of multiple
business units or have managed multiple departments.
• Rapid growth - Individuals who possess the capability to grow
rapidly with McDonald's.
• Business plan - The ability to develop and execute a business
plan.
• Manage finances well - Ability to manage finances including a
thorough understanding of business financial statements.
• Good management skills - Commitment to personally manage the
day-to-day operations of the restaurant business.
• Training - Willingness to complete a comprehensive world class
training program and become proficient in all aspects of
operating a McDonald's restaurant business.
• Exceptional customer experience - The capability to
effectively manage an organization that recruits, trains, and
motivates restaurant employees who deliver an exceptional
customer experience.
• Good credit history - An acceptable credit history
Ongoing Fees to McDonald's
During the term of the franchise, you pay McDonald’s the
following fees:
Service fee- A monthly fee based upon the restaurant ’s sales
performance (currently a service fee of 4.0% of monthly sales).
Rent - A monthly base rent or percentage rent that is a
percentage of monthly sales. McDonald's usually owns the
property and also acts as the landlord.
• McDonald ’ s COMPETITORS
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• McDonalds doesn’t offer just burgers. Their well diversified
menu is also one of the key success factors as most of
McDonald’s competitors are quite specialized:
• KFC in chicken
• Pizza Hut in pizzas etc.
• When it comes to eating out during Ramadan in any fast food
restaurant, the name that clicks to the customers is
McDonald’s. The reason is the affordable deals that they
offer, that seem to beat all others when it comes to
prices.
• Another advantage that McDonald ’ s has on its
competitors is the location of its franchises.
• Its main advantage is that it is located in vicinity that is
easily approachable. Secondly it has got in its
surroundings other very attractive places to be visited
by people who want to enjoy their life to the full. These
places are a source of attraction not for the services
they provide but for McDonald’s as well.
McDONALD ’ s VS PIZZA HUT
At one time, the biggest marketing problem Pizza Hut faced was lunch. As
compared to McDonald’s, its restaurants had virtually no lunch time
sales, and neither did any of it’s pizza competitors. The reason, of
course, is that it takes 20 minutes to cook a pizza from scratch in a
traditional pizza oven, and most people won’t spend that long at lunch
time waiting to be served.
McDONALD ’ s VS KFC
•The increased health concerns of the masses has put KFC at a
great disadvantage because of the word 'fried' attached to
it's brand name which gives an instant idea that the food
would be oily and unhealthy.
•Because of the nature of the chicken segment of the fast
food industry, innovation was never a primary strategy for
KFC. However, during the late 1980's, other fast food chains,
such as McDonald's, began to offer chicken as a menu option.
During this time, McDonald's had already introduced the
McChicken while KFC was still testing its own chicken
sandwich.
•This delay significantly increased the cost of developing
consumer awareness for the KFC sandwich.
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McDONALD’s VS SUBWAY
• One of the major problems that can be identified with Subway
right now is related to the franchises. Although Subway
has long been named as the number one franchise
opportunity by The Entrepreneur magazine but it seems
that Subway has developed a myopic focus regarding the
franchises. Subway has regional managers who have the
opening of new franchises as their sole aim and their
bonuses and incentives are tied to the opening of new
franchises. These managers at Subway even don't care if
the new franchises are detrimental for the existing ones
and because of this; many of the franchises are becoming
a victim of internal competition or cannibalization. For
example, in Lahore alone, Subway has 20 outlets. Instead of
this, Subway could have targeted Cities like Faisalabad
and explored a new market. Franchise owners believe that
Subway has been irresponsible with allocating the
franchises and uses bloated store sales projections as
part of their sales pitch for encouraging new franchises.
• The opening up of a lot of new stores in close proximities
are also resulting in decline in sales per store because
of which the franchisees are not very satisfies with
Subway.
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•The environment at the Subway stores cannot be compared with
that of McDonald's, KFC or Pizza Hut. The Stores are small and
suffocating and do not even provide the necessary privacy to the
people eating there. Subway has no standard size for any of its
store because of which the sales oriented Franchisees try to fix
them at as smaller a place as possible. This is tarnishing the
image of Subway as an international brand.
REMODELING OF
LOCATIONS
• An estimated 7,000 U.S restaurants will be rebuilt, relocated
or refreshed as part of the far reaching plan to upgrade
its public persona with updated restaurant designs
intended to boost the bottom line.
LOCAL PERFECTION GLOBAL
RECOGNITION
• McDONALD ’ s Pakistan wins 3 international awards
and gives the nation a reason to smile.
• Food quality & safety
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PARTNERSHIP WITH COCA COLA
McDonalds and Coca Cola are official global partners. Coca cola
is a big brand nameserving people all over the world with
beverages.
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W EA K N ESSES
Product Variety :
McDonalds needs to develop more and more products to stay in
the competition. After the opening of international QSRs in
Pakistan, many local QSRs have also been opened in various
cities. The tastes are a bit different but they too are offering
chicken and cheese burgers, drinks and fries at competitive
prices. This situation requires McDonald’s to be more innovative
and price competitive.
More advertising :
In Pakistan, McDonald’s rarely advertises at TV, however
billboards often show off juicy McDonald’s burgers but this
could affect its popularity in future. It definitely needs to
advertise more to reach the target and the potential customers.
Drive - ins :
The service at McDonald’s drive-ins has been subject to criticism all
over the world and a lot of people complaint that the orders are
either missing some of the items or are entirely wrong. The service
time at the drive ins is also subject to great variations and needs
to be improved
OPPORTUNITIES
Reasonable Prices:
McDonalds can broaden its market by offering meals at more
competitive prices in comparison to other local QSRs such as
AFC, Al Maida etc. This way it could get hold of the potential
customers too
Opportunity to be innovative
McDonalds could make itself more innovative by offering
deals that appeal more to Pakistani consumer’s e-g it can
introduce desi flavors in the present products such as
Barbeque, Tandoori, Masala and other spicy tastes which are
staple of the country.
Breakfast and special noon meals :
• Now in Pakistan most the trend of women going to work and
opting for profession is increasing as a result of which
they are running short of time to carry out all the home
chores along with their work. McDonalds can offer deals to
such market by catering them in the morning for breakfast.
• During the office hours people mostly go out for their lunch
to restaurants. McDonalds can avail this potential market
Growing dinning out Market
In Pakistan the dining out trend is increasing especially in
youngsters and upper middle class. McDonalds has the
opportunity to grasp this market quite well. It is already
doing well by serving them but it could arrange various
activities for the people of this age.
Dine in Cafes
McDonalds can open up with small-sized cafes for the teenagers
in their universities and colleges.
McCafe ’ s :
McDonalds has opened coffee shops by the name of McCafe’s in
UK. Pakistan can serve as a new potential market for these
cafes.
THREATS
More health conscious customers :
With increasing awareness about food and the importance of a balanced
diet, people are opting for low calorie food e-g salads and food with
high fiber content. To remain in the scope, McDonalds needs to serve
this market as well as the present customers, this could be posed as a
threat to McDonalds. Subway is offering its low fat veggie and chicken
sandwiches at prices almost the same as McDonalds. For McDonalds diet
meals could be a way out of this situation. Until now, McDonald’s in
Pakistan has nothing to offer to health conscious customers.
Foreign as well as local competitors :
In the growing market QSR market of Pakistan McDonalds
competitors are entering not only from other countries but
from within the country too. Their competitive prices could
be a reason due to which McDonalds can lose its share in the
Pakistani market.
Changing customer styles :
Pakistani culture has been changing for years now with new
te ch n o lo g ie s a n d tre n d s. Pe o p le w h o a re n o t b ra n d lo ya l
m o ve w ith th e ch a n g in g tim e s. S o m e co m p e tito r ca n e a sily
e n te r in to th e m a rke t a n d m a ke b e tte r o ffe rs to its
co n su m e rs b y fo cu sin g o n th e ir n e e d s a n d th e sa tisfa ctio n
th a t th e y w a n t. To re m a in co m p e titive , M cD o n a ld s n e e d s to
b e in n o va tive a n d sh o u ld ch a n g e a lo n g w ith th e Pa kista n i
co n su m e r style s.
OBSTACLES
Public purchasing power is less.
Security Concerns.
Religious Concern, that McDonalds are backed by
Jews Zionist.
People make rumors that they are not providing
Halal meat.
C O N C LU S IO N
McDonald’s is one of the best fast food restaurant in the whole
world. It provides a good quality and hygienic food to its
customers daily. If a person has enough resources to meet the
requirements of McDonald’s he must get its franchise, it will be a
financially rewarding and life-changing experience
THANK YOU