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COMPANY DESCRIPTION

Established in California during the 1940s by two brothers,the McDonald’s restaurant became a popular teen hangoutin the first flush of post-war affluence. To feed these youthfulbodies, the brothers reduced the menu to the perennial favourite – hamburgers, appliedassembly line techniques to food production and expanded to four restaurants by 1953.Taking note of the brothers’ success, in 1955, Entrepreneur Ray Kroc bought the right tofranchise the McDonald’s System. Renamed the McDonald’s Corporation in 1960, Krocfocused his marketing effort on the family meal and children, spending heavily ontelevision advertising which promoted the smiling clown face of its child-friendly brandmascot, Ronald McDonald. Today, the McDonald’s franchise exceeds 30,000restaurants globally and serves over 50 million people in more than 121 countries eachday.

GOALS AND OBJECTIVES

McDonald’s vision is to be the world’s best quick service restaurants experience.

. McDonalds is committed to maintaining and developing the best food products in thequick service restaurant market.

. In order to deliver this, the company has made a number of commitments to foodsafety and nutrition.

Lead the Quick Service Restaurant market by a program of site development andprofitable restaurant openings, and by attracting new customers. Increasing salesthrough promotions willenable them to continue their program of expansion.

McDonalds have an objective to continual enhance and improve their menu. This will

better satisfy their customers and give customers more reason to visit. Many ideas for new items on the menu come from the franchisees responding to customer demand.Consumer tastes change over time and McDonalds has to respond to these changes.

MISSION STATEMENT

"McDonald's vision is to be the world's best quick service restaurant experience. Beingthe best means providing outstanding quality, service, cleanliness, and value, so thatwe make every customer in every restaurant smile."

CORE COMPETENCY ANDSUSTAINABLE COMPETITIVEADVANTAGE

McDonald’s core competency is providing convenience when people need and want toeat fast food at prices that are competitive and provide best value for the customer’smoney. One of McDonald’s competitive advantages is its focus on consistency of quality, production of food and use of raw materials all around the world. The worldrecognition associated with the brand McDonald’s itself is also one of McDonald’scompetitive advantages.

Demand Trends:

There are many variations observed in the demand trends for McDonald’s inPakistan. The trend followed by the high income group is relatively stable andthey comprise a very small percentage. The changes in the economy have verylittle effect on the demand trends of McDonald’s that is being followed by thishigh income group.Other reasons for these variations are:McDonald’s is a brand that is mostly perceived by an average Pakistanicustomer to be a place which is visited on some occasion or once in a while.The main reason for this is the low disposable income that people have becauseof the inflation and some other unemployment reasons.On the other hand McDonald’s lovers such as college students, workingindividuals, kids and families fond of spending a lot on fast food restaurantsmake it a place to be visited very frequently. One of the reasons is highdisposable income by blue collar individuals. Another reason is the attraction for McDonald’s by kids as well as those who love it for every reason.There are also global issues which affect food demand for McDonald’s e.g. birdflu and cow diseases in western countries brought down demand for McDonald’ssome years ago as it was a known fact that they get their meat frominternational suppliers in order to maintain quality.The demand also fell because of the security issues that affected demand for McDonalds, e.g. suicide attacks on western establishments a year ago.One of the reasons for the decrease in the demand trend for McDonald’s is thehostile attitude of the general public in Pakistan towards all the Westernrestaurants and multinational companies. Therefore the demand trends for McDonald’s have declined because of the some of the ill activities that havebeen observed during past some years regarding McDonald’s.