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Along with theoretical knowledge it is very important for the students to know the practical application of their theoretical knowledge. Although being the student of M.Com (Hons) we have been learned all about the McDonalds organization. For this purpose, DR.MUHAMMAD AHSAN ZIA gives us opportunity to make a project on this organization. We feel my self very lucky to have the opportunity to complete our project on a very reputable and prominent organization, i.e. MCDONALDS. During this time period ,we tried our best to learn as much as possible and in the project report in your hands we have tried to make our humble endeavor to cover various aspects like introduction with history, management, operating performance, global operations, marketing aspects, reports, working and financial analysis of McDonalds . Although McDonalds is running its financial matters very well, I think there is always a room for further improvement. Keeping this thing in view, I made a humble effort to give the SWOT analysis in the last part of this report to give the position of this organization both internally and externally.
We wish to place on records my sincere thanks to the honorable principal, professors, mentors and colleagues who guided me, showed me the right path and helped me whenever the demand was raised which, interalia, beacme instrumental to complete this gigantic job In paticular we wish to pay my gratitudes to the following worthy personalities, without their guidance we was unable to present this report;
• Dr. Liaqat Ali, Principal, Hailey College of Commerce • DR.MUHAMMAD AHSAN ZIA Last but not the least, our parents who supported me whole my life and especially during the studies
they insist to work through the help of face to face management system. There its localization process was rather about assimilating into the cultural than to suppress it. the company has become a symbol of globalization and the spread of the American way of life. There its localization process was rather about the countries it expanded to. Today.EXECUTIVE SUMMARY McDonald's is the world's leading food service organization. Ray Kroclaid the foundation for McDonald's global success." . a comprehensive view of the scope of operations as well as field of activities is also available in the project . In our project we make a comparison of McDonalds with the most renown food service organization. McDonalds have implemented the quality system. They are also very concerned with the social responsibility. McDonalds had a strong homogeneous effect on the culture in its home country the same cannot be said about the countries be said about the countries it expanded to. By combining fundamentally sound operational practices with innovative marketing strategies. there are tens of thousands of McDonald's restaurants serving millions of people daily around the world. With the expansion of McDonald's into many international markets. Top competitors performance comparison with respect to McDonalds is also present in the form ratio analysis. McDonald's released the latest Corporate Responsibility Report to share information about what we are doing to address issues that are important to the well-being of our customers and our communities. The incredible growth and success of McDonald's can be summed up with the first thought that went through Ray Kroc's mind when he first saw McDonald's: "This will go anyplace.
A. We generate more than $40 billion in System wide sales.com Statistics: Public Company Incorporated: 1955 Employees: 413.mcdonalds. marketing and franchising. We operate over 30. we have not achieved our growth expectations for the past several years.000 Sales: $17. We are a leader in the area of social responsibility. We have the benefits that come with scale and a strong financial position.14 billion (2003) Stock Exchanges: New York Chicago Euronext Paris German Swiss Ticker Symbol: MCD NAIC: 722211 Limited-Service Restaurants.000 restaurants in more than 100 countries on six continents. Yet. We actively share our knowledge and expertise in food safety and are committed to protecting the environment for future generations. our challenge is to leverage our strengths to profitably serve more customers more ways more often.S. We have an unparalleled global infrastructure and competencies in restaurant operations. Illinois 60523-2199 U. 533110 Lessors of Nonfinancial Intangible Assets (Except Copyrighted Works) .McDonald’s Corporation Company Perspectives: McDonald's is the world's leading food service organization. So. Address: McDonald's Plaza Oak Brook. We own one of the world's most recognized and respected brands. real estate. retailing. Telephone: (630) 623-3000 Fax: (630) 623-5004 http://www.
1965: McDonald's goes public. 1968: The Big Mac is added to the menu. 1961: Kroc buys out the McDonald brothers for $2. 1963: Ronald McDonald makes his debut. 1973: Breakfast items begin to appear on the menu. 1983: Chicken McNuggets are introduced. Canada. he incorporates his company as McDonald's Corporation. 1974: The first Ronald McDonald House opens in Philadelphia. 1955: Kroc opens his first McDonald's restaurant in Des Plaines. 1954: Ray Kroc gains the rights to set up McDonald's restaurants in most of the country. 1998: The company takes its first stake in another fast-food chain." is used in an advertising campaign. 2003: McDonald's sells Donatos in order to refocus on its core hamburger business. "Look for the Golden Arches. with the debut of the Egg McMuffin. . 1967: The company opens its first foreign restaurant in British Columbia. 1975: The first McDonald's drive-thru window appears. buying a minority interest in Colorado-based Chipotle Mexican Grill. 2002: Restructuring charges of $853 million result in the firm's first quarterly loss since going public. California.7 million. is acquired. 1985: McDonald's becomes one of the 30 companies that make up the Dow Jones Industrial Average. 2000: McDonald's buys the bankrupt Boston Market chain. 1999: Donatos Pizza Inc. 1960: The slogan.Key Dates: 1948: Richard and Maurice McDonald open the first McDonald's restaurant in San Bernardino. 1979: The children's Happy Meal makes its debut. Illinois.
Company history: The business began in 1940. 1961. Canada. Japan. . shaped over many of the early McDonald's restaurants in the early years. on April 15. in order of openings. The first McDonald's restaurants opened in the United States. the ninth McDonald's restaurant overall." Speedee was eventually replaced with Ronald McDonald by 1967 when the company first filed a U. With the expansion of McDonald's into many international markets. The site of the McDonald brothers' original restaurant is now a monument. France. the company has become a symbol of globalization and the spread of the American way of life. Costa Rica. 1961. The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc. when the company filed a U. Panama.Kroc was also noted for aggressive business practices. and the company became listed on the public stock markets in 1965. when a trademark was filed for a single arch. California. Germany.S. with a restaurant opened by brothers Richard and Maurice McDonald in San Bernardino. trademark on the name McDonald's on May 4. Its prominence has also made it a frequent topic of public debates about obesity. In the same year. Kroc later purchased the McDonald brothers' equity in the company and led its worldwide expansion. The original mascot of McDonald's was a man with a chef's hat on top of a hamburger shaped head whose name was "Speedee. the Netherlands. Their introduction of the "Speedee Service System" in 1948 established the principles of the modern fast-food restaurant. with the description "Drive-In Restaurant Services". Australia. on September 13. El Salvador and Sweden. as documented in both Kroc's autobiography and in the McDonald brothers' autobiography. 1955 . trademark on the now famous symbol that continues to be in use through the end of the year 2009. 1962. McDonald's first filed for a U. corporate ethics and consumer responsibility.S. The overlapping double arched "M" symbol logo was temporarily disfavored by September 6. in Des Plaines. Illinois. which continues to be renewed through the end of December 2009.S. The modern double arched "M" symbol that continues to be in use today at McDonald's restaurants did not appear until November 18. The McDonald brothers and Kroc feuded over control of the business. the company filed a logo trademark on an overlapping. 1968. trademark on a clown shaped man having a puffed out costume legs. double arched "M" symbol. compelling the McDonald brothers to leave the fast food industry.
with the rest of the states quickly following suit. starting with Melbourne in 1993. it was first introduced in Arizona in 1975. some Australian stores have noticed up to a 60% increase in sales. with indoor and sometimes outdoor seating. McDonald's introduced McCafé. or "McDrive" as it is known in many countries. such as the "Solid Gold McDonald's. McDonald's operates over 31. Types of restaurants: Most standalone McDonald's restaurants offer both counter service and drive-through service. Drive-Thru. British Columbia.Corporate Overview Facts and figures: McDonald's restaurants are found in 119 countries and territories around the world and serve nearly 47 million customers each day.000 restaurants worldwide. often has separate stations for placing. There are also a few locations. McDonald's sold Boston Market to Sun Capital Partners. a café-style accompaniment to McDonald's restaurants in the style of Starbucks. there are McCafés in every store. Until December 2003. To accommodate the current trend for high quality coffee and the popularity of coffee shops in general. Today. As of the end of 2003 there were over 600 McCafés worldwide. 2007. McDonald's began divesting itself of other chains it had acquired during the 1990s. locations in high-density city neighborhoods often omit drive-through service. that offer Walk-Thru service in place of Drive-Thru. employing more than 1. . In Tasmania. After upgrading to the new McCafe look and feel. Specially themed restaurants also exist. Auto-Mac.5 million people. though the latter two steps are frequently combined. paying for. when McDonald's fully divested from Chipotle through a stock exchange. Pay and Drive. On August 27. most McDonald's in Australia have McCafés located within the existing McDonald's restaurant. In Victoria. there is also a McDonald's with a 24-carat (100%) gold chandelier and similar light fixtures. Focusing on its core brand. The company owned a majority stake in Chipotle Mexican Grill until October 2006. McCafé is a concept created by McDonald's Australia. In some countries. such as Piles Café. The company also operates other restaurant brands. In contrast. located mostly in downtown districts. and picking up orders. following the lead of other fast-food chains. "McDrive" locations near highways offer no counter service or seating." a 1950s rockand-roll themed restaurant. it also owned Donatos Pizza.
while others called McExpress have limited seating and/or menu or may be located in a shopping mall. Contemporary art or framed photographs hang on the walls. and other games which emphasize physical activity. The first PlayPlace with the familiar crawl-tube design with ball pits and slides was introduced in 1987 in the USA. The exterior has golden awnings and a "swish brow" instead of the traditional doubleslanted mansard roof. McDonald's introduced its "Forever Young" brand by redesigning all of their restaurants. and olive and sage green were also added. with modern hanging lights to produce a softer glow. They are equipped with stationary bicycles attached to video games. but the red is muted to terra cotta. Some PlayPlace playgrounds have been renovated into "R Gym" areas. Play grounds: Some McDonald's in suburban areas and certain cities feature large indoor or outdoor playgrounds. dance pads. the Sports Zone which features a series of sports-oriented activities to promote aerobic exercise for children aged nine to 11.Some locations are connected to gas stations/convenience stores. McStop is a location targeted at truckers and travelers which may have services found at truck stops. the restaurants have less plastic and more brick and wood. "R Gyms" are in-restaurant play areas that feature interactive game zones designed for children aged four to 11. basketball hoops. The design includes the traditional McDonald's yellow and red colors. the Active Zone. The "R Gym" features the Toddler Zone. an obstacle course. an active play environment with age-appropriate games that develop physical coordination and social skills. designed for children aged four to eight that promotes physical fitness through fun play. . To warm up their look. monkey bars. Redesign: In 2006. the first major redesign since the 1970s. the Parent Zone which features seating and provides a monitoring area for their children. Other McDonald's are located in Wal-Mart stores. the yellow was turned golden for a more "sunny" look. and the Dining Area which allows families to eat. with many more being constructed soon after.
sofas. Branches in Germany have also been redesigned to have a more contemporary style and green exterior. the franchisee does not own the location of its restaurants. with the majority under the ownership of the company. in that fewer than 30% of restaurants are franchised. Approximately 15% of McDonald's restaurants are owned and operated by McDonald's Corporation directly. age. McDonald's restaurants are operated by joint ventures of McDonald's Corporation and other. Business model: McDonald's Corporation earns revenue as an investor in properties. instead organizing the supply of food and materials to restaurants through approved third party logistics operators. which are calculated as a percentage of sales. In most. which vary by contract.The restaurants feature areas: • • The "linger" zone offers armchairs. the Corporation may own or lease the properties on which McDonald's franchises are located. In addition to ordinary franchise fees and marketing fees. which may also be calculated on the basis of sales. and location. McDonald's trains its franchisees and others at Hamburger University in Oak Brook. similar to a Starbucks branch. Different music targeted to each zone. country. in Germany. and free Wi-Fi connections. The UK business model is different. The McDonald's Corporation's business model is slightly different from that of most other fast-food chains. . Illinois. McDonald's may also collect rent. In other countries. As a condition of many franchise agreements. replacing the red with a deep British racing green and overall making the stores look more casual. McDonald's does not make direct sales of food or materials to franchisees. • • Branches in the United Kingdom have an even more contemporary look and feel to the stores. The remainder is operated by others through a variety of franchise agreements and joint ventures. plasma TVs offer them news and weather reports. if not all cases. As a matter of policy. a franchiser of restaurants. and an operator of restaurants. the traditional "golden arches" over red sign is being changed to "golden arches" over green. local entities or governments. The "grab and go" zone features tall counters with bar stools for customers who eat alone. The "flexible" zones are targeted toward families and have booths featuring fabric cushions with colorful patterns and flexible seating. Additionally.
is an example of this criticism. A documentary film of the McLibel Trial has been shown in several countries. criticizing its environmental. McDonald's is often the target of criticism for its menu.S. In 1999.) The book also states that McDonald's is the largest private operator of playgrounds in the U. denounced the definition as a "slap in the face" to all restaurant employees. Among the critiques were allegations that McDonald's (along with other . In an open letter to Merriam-Webster.'" Merriam-Webster responded that "we stand by the accuracy and appropriateness of our definition. Shareholder dividends: McDonald's has increased shareholder dividends for 25 consecutive years making it one of the S&P 500 Dividend Aristocrats with the highest annual dividends of publicly traded companies in the fast food industry. when two of the activists refused to back down. as well as the single largest purchaser of beef. The McLibel Trial. pork. over the objections of McDonald's. In 1990. In 2001. (According to a news piece on Fox News this figure is one in ten.. health. The corporation wrote to the group demanding they desist and apologize. Eric Schlosser's book Fast Food Nation included criticism of the business practices of McDonald's. also known as McDonald's Restaurants v Morris & Steel. and stated that "a more appropriate definition of a 'McJob' might be 'teaches responsibility. have at some time been employed by McDonald's. and apples. activists from a small group known as London Greenpeace (no connection to the international pressure group Greenpeace) distributed leaflets entitled What's wrong with McDonald's?. and labor record.S. sued them for libel in one of the longest cases in British civil law." McJob is defined by Merriam-Webster's Online Dictionary as "a low-paying job that requires little skill and provides little opportunity for advancement". Controversies: As a prominent example of the rapid globalization of the American fast food industry. former CEO of McDonald's. its expansion. French anti-globalisation activist José Bové vandalized a half-built McDonald's to protest against the introduction of fast food in the region. Jim Cantalupo. and its business practices. and. The selection of meats McDonald's uses varies with the culture of the host country. The term "McJob" was added to Merriam-Webster's Collegiate Dictionary in 2003. potatoes. nearly one in eight workers in the U.According to Fast Food Nation by Eric Schlosser (2001).
and that the company was failing to provide nutritional information about its food for its customers. The soya that is fed to McDonald’s chickens is supplied by agricultural giant Cargill and comes directly from Brazil. the company launched an advertising campaign with the slogan "Would you like a career with that?" on Irish television. in the U. McDonald's announced on May 22. Greenpeace alleges that not only is soya destroying the Amazon rain forest in Brazil. sourcing and ethics of the food and drink they buy".companies within the fast food industry) uses its political influence to increase its profits at the expense of people's health and the social conditions of its workers. and was creating the adult happy meal. outlining that their jobs have many prospects. unskilled work with few prospects or benefits and little security. first attested in the mid-1980s and later popularized by Canadian novelistDouglas Coupland in his book Generation X. successfully sued McDonald's for misrepresenting their French fries as vegetarian. and Canada. it will be introducing cooking oil for its french fries that contains no trans fats. The allegation is that McDonald's. The company will use canola-based oil with corn and soy oils by year's end for its baked items. but soya farmers are guilty of further crimes including slavery and the invasion of indigenous peoples’ lands. McDonald's coffee is now brewed from beans taken from stocks that have been certified by the Rainforest Alliance. Arguments in defense of McDonald's: In response to public pressure. Similarly. McDonald's has sought to include more healthy choices in its menu and has introduced a new slogan to its recruitment posters: "Not bad for a McJob". In 2007.S. pies and cookies. vegetarian groups. While the book did mention other fast-food chains. In a bid to tap into growing consumer interest in the provenance of food. (The word McJob. largely Hindu. as a client of Cargill's. The book also brought into question McDonald's advertisement techniques in which it targets children. Six weeks after the film premiered. McDonald's announced that it was eliminating the super size option. has become a buzz word for low-paid. 2008 that. is complicit in these activities. it focused primarily on McDonald's. .) McDonald's disputes the idea. UK chief executive Steve Easterbrook said: "British consumers are increasingly interested in the quality. Morgan Spurlock's 2004 documentary film Super Size Me said that McDonald's food was contributing to the epidemic of obesity in society. the fast-food chain recently switched its supplier of both coffee beansand milk. In 2002. aconservation group. milk supplies used for its hot drinks and milkshakes have been switched to organic sources which could account for 5% of the UK's organic milk output.
Environmental Protection Agency has recognized McDonald's continuous effort to reduce solid waste by designing more efficient packaging and by promoting the use of recycled-content materials. McDonald's has been recycling vegetable grease by converting it to fuel for their diesel trucks.Environmental record: In April 2008. the plastics can contaminate waste streams. The extra energy it takes to recycle this plastic results in a higher output of greenhouse gases. For instance. waste from the restaurants were collected by Veolia Environmental Services and used to produce energy at a power plant. Furthermore. McDonald’s eliminated the need for intermediate containers for cola by having a delivery system that pumps syrup directly from the delivery truck into storage containers. Building on past efforts. McDonald's designed the Chicago site to save energy by incorporating old and new ideas such as managing storm water. using skylights for more natural lighting and installing some partitions and tabletops made from recycled goods. When McDonald’s received criticism for its environmental policies in the 1970s. by conserving natural resources through recycling and reusing materials. will prevent this plan from becoming a national standard anytime soon. McDonald's reports that they are committed towards environmental leadership by effectively managing electric energy. In an effort to reduce energy usage by 25% in its restaurants. Also. In addition. weight reductions in packaging and products. causing other recycled plastics to become unsaleable. The results show that this type of plastic does not break down in landfills as efficiently as other conventional plastics.S. in Europe. saving two million pounds of packaging annually. fries. an “average meal” in the 1970s—a Big Mac. McDonald's has been using a corn-based bioplastic to produce containers for some of their products. Although industries who use this product claim a carbon savings of 30% to 80%. McDonald's opened a prototype restaurant in Chicago in 2009 with the intention of using the model in its other restaurants throughout the world.S. it began to make substantial progress towards source reductions efforts. McDonald's plans to expand this project. and a drink—required 46 grams of packaging. allowing a 46% reduction. specifically a restaurant it opened in Sweden in 2000 that was the first to intentionally incorporate green ideas. it requires only 25 grams. and by addressing water management issues within the restaurant. today. McDonald's announced that 11 of its Sheffield restaurants have been using a biomass trial that had cut its waste and carbon footprint by half in the area. aGuardian study shows otherwise. The U. as well as the increased usage of bulk packaging ultimately decreased packaging by 24 million pounds annually. . although the lack of biomass power plants in the U. Overall. In addition. In this trial.
the figurine that represents "New Wave Nigel" wears something that closely resemblesDevo’s Energy Dome. the founder of Oak Brook. McDonald's pleaded guilty to five charges relating to the employment of children under 15 in one of its outlets and was fined AU$8. It sits on the site of the former headquarters and stabling area of Paul Butler. since the judge also found that more than half of what was on the pamphlet was truthful. most of which involved trademark disputes. In 2001 the company was fined £12. 2009. Freedom of Choice. McDonald's has defended itself in several cases involving workers' rights. 1952). This is thought to be one of the largest fines imposed on a company for breaking laws relating to child working conditions (R v 2002 EWCA Crim 1094). is located in Oak Brook.400 by British magistrates for illegally employing and overworking child labor in one of its London restaurants. Illinois. In addition to the figurine's image. In April 2007 in Perth. McDonald's Plaza. McDonald's sued a Scottish café owner called McDonald. After the longest trial in UK legal history. Possibly the most infamous legal case involving McDonald's was the 1994 decision in The McDonald's Coffee Case. it also plays a tune that appears to be an altered version of Devo's song "Doctor Detroit. In one noteworthy case. the Federal Court. McDonald's Malaysian operations lost a lawsuit to prevent another restaurant calling itself McCurry. November 21. For example." Devo copyrighted and trademarked the Energy Dome and is taking legal action against McDonald's.Legal cases: McDonald's has been involved in a number of lawsuits and other legal cases.000. On September 8. which was featured on the band's album cover. in the McLibel case. McDonald's lost in an appeal to Malaysia's highest court. or were simply the opinions of the activists and therefore non-prosecutable. Western Australia. But it was a massive public relations disaster. McDonald's won a technical victory for showing that some allegations were untrue. even though the business in question dated back over a century (Sheriff Court Glasgow and Strathkelvin. McDonald's moved into the Oak Brook facility from an office within the Chicago Loop in 1971 . It has also filed numerous defamation suits. labor and health records. McDonald's sued two activists for distributing pamphlets attacking its environmental. In a McDonald's American Idol figurine promotion. The company has threatened many food businesses with legal action unless they drop the Mc or Mac from their trading name. Headquarters: The McDonald's headquarters complex.
Scope of operations .
and two slices of cheese. consisting primarily of salt and black pepper. Below are listed the basic items sold by the company.184 restaurants in the UK. special Big Mac sauce (similar to Thousand Island dressing). with seasonings. • Big Mac: Along with the Quarter Pounder with cheese. 4-ounce (113 g) (approx. McDonald's original restaurant in San Bernardino. California served only hamburgers. uncooked weight) ground beef patty with ketchup. The Quarter Pounder was invented by Al Bernardin. With more than 30. on a toasted bun. this is one of the two McDonald's signature menu items. Two 1. uncooked weight) ground beef patties. slivered onions. milkshakes. Burgers: All beef patties are grilled. two pickle slices (many countries don't include pickles). McDonald's and its franchisees operated over 1. a franchise owner and former McDonald's Vice . • Quarter Pounder: Along with the Big Mac. and cheese. As of 31 December 2001. two pickle slices. with an additional middle bun (called a "club layer") separating both beef patties. The company regards itself as the leading global food service retailer.6-ounce (45 g) (approx. and french fries. today's menu includes numerous other items that have been added through the years. shredded iceburg lettuce. mustard. re-hydrated onions. this is one of the two McDonald's signature menu items.Field of activities: McDonald's is the largest food service company in the world. While still based on hamburgers.000 restaurants serving more than 47 million people each day in 121 countries it is hard to argue! In 1974 McDonald's opened its first restaurant in the UK. Introduced in 1968 as a response to the flagship burger at Big Boy restaurants.
or variants thereof. Also sold as a double or triple. California. with 0. the pickle was removed from the sandwich.125 ounces (3. At one time early in McDonald’s history. such as McRoyale . at his McDonald's in Fremont. and two pieces of cheese on a toasted bun. A green chili double cheeseburger with chili peppers is offered in New Mexico. • Double Cheeseburger has two 1. Also available as the Double Quarter Pounder with Cheese. it is known as a Royal Cheese. mustard. . or as a quad sandwich in parts of Australia.5 g) ketchup. re-hydrated onions. re-hydrated onions. which includes another patty of the same proportions and a slice of cheese.5 g) ketchup. In some markets unfamiliar with Imperial measurements (such as France). on a toasted bun.6-ounce (45 g) ground beef patty.6-ounce (45 g) ground beef patties. two slices of dill pickle.125 ounces (3. The double cheeseburger was originally offered as a promotional item in the 1950s.mustard. A triple burger and a bacon double cheeseburger are optional items and are not always available in all restaurants or markets. adding an extra pickle slice for each beef patty added. and was added to the regular menu in 1965. with 0. a single dill pickle. in 1971.President of product development. • Hamburger and cheeseburger: a 1.
It was introduced in 1980. Portugal. ketchup and pickles). sliced red onions and sliced red tomatoes. Cheddar cheese is used on the Angus Deluxe in Canada instead of American cheese. and shredded lettuce. Made from 100% white meat chicken. the Czech Republic. Chicken.A mildly spicy chicken sandwich. leaf lettuce. two pickles. then later removed. In Australia. sliced red onions. iceberg lettuce and onions. Poland. and Angus Bacon and Cheese (bacon. • Cheddar McMelt . American cheese. Bulgaria. diced onions. Angus Mushroom and Swiss (sautéed mushrooms. or both. • Angus Third Pounders . on a toasted bun. Poland. with or without bacon.• • McDouble. made its debut in 2009. similar to a Double Cheeseburger. a wrap called the Greek Mac is sold. Bulgaria.Russia. 'wonderful') in Mexico and Latin America. the Quarter Pounder Deluxe in South Africa. The Grand Angus (which is a clone of the Angus Deluxe) and the Mighty Angus (which resembles the Angus Cheese and Bacon.Only in Brazil • In most European markets. In Ontario it is the called the Angus Deluxe. It consists of two burger patties wrapped in a pita with yogurt sauce. cheese. Spain. with just one slice of cheese.  It is also known as the Big Xtra in most ofCanada. unlike in America where they are on sesame seed buns. fish and pork: • McChicken . It was devised to resemble Burger King's Whopper sandwich. tomato slices. Swiss cheese and mayonnaise). on a toasted bun. but with no pickles and mayonnaise and onion relish replacing the ketchup and mustard).There are three sandwiches: the Angus Deluxe (American cheese. Serbia (seasonal). and a tomato slice. mustard. only two Angus burgers are sold. In some markets it . but The Big N' Tasty is a 4-ounce (113 g) beef patty with ketchup. Sweden. Both sandwhiches are on toasted sourdough buns. mayonnaise with a grill flavoring. and mayonnaise). The sandwich is offered in Belgium. mayonnaise. An Angus Chipotle BBQ Bacon sandwich was later added to the lineup. pickles. and selected outlets in the United Kingdom. the Big Tasty (without the 'N') in Brazil. the McFeast Deluxe in Australia. Cyprus. the McXtra in Québec. the United Kingdom. and the McNifica (a play on Spanish magnifica. iceberg lettuce. However in many Latin American countries the McNifica and Big n Tasty are two different burgers where the McNifica does not have the special grill mayonnaise.Germany (without ketchup). The Netherlands. but then later reintroduced in 1988. France. Canada. mustard.
• Southern Style Chicken Sandwich .The Classic is a rebranding of the Crispy Chicken and Chicken McGrill sandwiches. The Club is similar to the Classic with added bacon and a piece of Swiss cheese. Ranch. with mayonnaise. Nearly identical to a Chick-filA chicken sandwich Snack Wrap . just behind the Big Mac.A southern style chicken breast. shredded Cheddar cheese andMonterey Jack cheese. In Latinoamerica. Chipotle BBQ is the most recent flavor. Officially launched on July 1.The Netherlands. All are served on a honey-wheat roll. wrapped in a soft flour tortilla. It still remains one of the biggest sellers. Chipotle barbecue. a Honey-mustard sandwich. and in others a cajun spiced version is also offered. Australia and Brazil. The Ranch BLT contains ranch sauce instead of mayonnaise and includes bacon. Canada.McDonald's version of a wrap made with white meat chicken breast (crispy or grilled). 2006. leaf lettuce. Honey Mustard. There is also a Mac Snack Wrap • . and a tomato slice.• is not spicy. United Kingdom. on a steamed bun. with either a grilled or crispy chicken breast. or Salsa Roja. and a sauce (Spicy Buffalo. the breakfast sauce on theMcSkillet). dressed with butter and two pickles. lettuce. the Club but instead of the BLT. Available in the United States. Premium chicken sandwiches . there are the Classic.
Introduced in 1980 as a replacement for the McChicken. Up until 2003. Filet-O-Fish . Israel and the UK. creamy ranch. Sold in theUnited States. and Hot Mustard. as it offered a fish sandwich so they could go without meat. cheese. 6. on a steamed bun. andChipotle barbecue dipping sauces. 5. which are available in mild and spicy.A whitefish fillet with tartar sauce and a half slice of cheese. Honey.Chicken. these are small chicken chunks served with dipping sauces of Barbecue. Canada. sour cream and sweet chili sauce. but without the bun and wrapped in a tortilla shell.• which features the fixings of the Big Mac. Available in Australia under the name Chicken McDippers. now they are made with only liquified white meat. Available in 3. or 20 pieces. and diced onions in a flour tortilla. They are sold in 3. or 10 pieces sizes and include choices of spicy buffalo. 10 (originally 9). • • Chicken Selects . Comes with Picante sauce packets on request. Honey Mustard. red and green bell peppers. sauce selections in the UK are smokey barbecue.McDonald's version of chicken strips. Sweet n' Sour. 4. They were introduced in 2002 for a limited time and offered again as a permanent part of the menu in 2004. they were a combination of liquified white and dark meat. • . It was introduced in Cincinnati in 1963 when it was discovered that many Roman Catholics chose to eat at Frisch's Big Boy on Fridays and during Lent. Chicken McNuggets . Available in only a few markets. Chicken Fajita . and uses a quarter of a piece of quarter meat.
the entrée is a choice of hamburger. All of its salads are part of McDonald's move towards creating a healthier image. milkshakes.S. Now released annually in the US as a limited time promotion. beverage and a toy. diced onions. First seen in test-market stores near interstate highways around Milwaukee andMadison. . Milk. cheeseburger. cheeseburger. In the UK. or three fish fingers. boxed apple juice. a side order. The McRib was recently released in Canada as a promotional sandwich from March 18 through April 8. the Premium Salads all are a mixture oficeberg lettuce and a special lettuce assortment (romaine. Milk. and the traditional soda are choices for drinks.g. The toy is usually a product tie-in with a movie or popular television show. or a four or six piece order of Chicken McNuggets. In the U. the McRib has reappeared in late October and stays on the menu for one month. four Chicken McNuggets. First introduced in 2003. McDonald's created the concept of a children's meal when it introduced the first Happy Meal in 1979.S. Other products • • • • McDonald's first introduced salads to its menu in 1985.. the sides are a choice of fries or sliced apple with caramel dip. the newest salad offerings are part of the McDonald's Premium line. e. Germany. The McRib is presently on some European menus. in the late 1970s (along with early tests of personal-sized pizza) the McRib was more widely released in 1981.A sandwich featuring boneless pork smothered in barbecue sauce. additionally all salads can be topped with warm grilled or crispy chicken. Since that time. but later pulled from menu. with cherry tomatoes and different toppings to differentiate them. the sides are a choice of fries. Tropicana orange juice. they have restructured their salad lines several times. Wisconsin. The meal includes anentrée. apple and blackcurrant Robinsons Fruit Shoot. etc. the entrée is a choice of hamburger. chocolate milk. This limited time marketing stategy was parodied on The Simpsons.. carrot sticks or sliced apples and grapes.water and the traditional soda are the choices for drinks. and pickles. with the "Krusty Burger Ribwich".• McRib . Since 2005.). In the U. 2008. The Happy Meal.
and Mayo. McDonald's also offers Poutine which consists of French fries and cheese curds. Canada. Many McDonald's locations in Wal-Mart stores offer freshlypopped popcorn and soft pretzels in addition to the normal menu. The Ranch BLT comes with a creamy ranch sauce. McDonald's along the southern coast of the Delmarva peninsula (comprising parts of Delaware. It is targeted at health-conscious customers and is available inAustralia. Deli Choices is a line of deli-style sandwiches that are sold internationally. The Club also has Lettuce Tomato and Mayo. and is testing in the United States. a McDonald's version of the Chesapeake crabcake. Germany.• • • • • • • • • • McDonald's line of larger chicken sandwiches (The Classic. McLobster . a type of French fry that is thick cut and wedge shaped and fried onion pieces that are similar to onion rings. but were cut on-site from potatoes and immediately fried. All three can be chosen with either crispy or grilled chicken and all are served on a honey wheat roll. In international locations.In response to the McLobster. but also comes with Swiss cheese and bacon. they sell potato wedges. a Canadian province. Until 1967. French fries were never frozen. sold in parts of the United States. Bacon. McCrab . It is similar to the McHero sandwich. Maryland and Virginia) developed the McCrab sandwich. McDonald's sells French fries as its primary side order. Club and Ranch BLT). New Zealand and Britain. Poutine . The Classic includes Lettuce. Tomato. Lettuce and Tomato.Some McDonald's restaurants in New England and the Canadian Maritimes offer lobster rolls as a seasonal menu item. Austria. covered withbrown sauce.In Quebec. • . which are part of the McDonald's Premium line were introduced in July 2005 as part of McDonald's menu revamp. called the McLobster.
first sold at select restaurants in 1972 as the Egg McMuffin. and Danish. All can all be ordered with sausage. For example: . Canadian Bacon. Breakfast: From 1940 until 1977. and a special type of maple flavoredpancake called McGriddles. There are two styles of breakfast burritos available. The new McSkillet wrap adds potatoes and salsa. Hawaiʻi and Guam McDonald's offers local breakfast items such as Spam.• • Brownie Melt . just 5 years before breakfast officially went into effect. eggs. o McDonald's offers a line of breakfast sandwiches: bagels. McDonald's did not serve breakfast. and American cheese on a toasted English muffin. o McMuffins are McDonald's signature breakfast sandwich. The Sausage Burrito is made with a flour tortilla. Sausage or bacon McMuffins are also available. onions and peppers. It is just normal rice. the breakfast burrito may be called a breakfast wrap. This sandwich is currently available in the Philippines. • • • • Beverages: (Varies regionally): • McDonald's primary soft drink supplier is the Coca-Cola Company. Additional breakfast items include hotcakes. which can be ordered plain. o The McDonald's Hamdesal is a new breakfast sandwich which consist of a slice of ham on pandesal. several breakfast platters with eggs. McRice . sausage. steak and bacon.similar to a Cinnamelt. Outside the US. biscuits. except in restaurants which fall under an overall contract with PepsiCo. Portuguese sausage and fresh cut pineapple. with an optional choice of cheese and/or egg. Regional meat offerings include fried chicken.Most McDonald's restaurants in countries in Asia serve the product due to customers demand. Waffles with the maple syrup already baked in (similar to the McGriddle pancakes) were introduced in some markets in 1999. it is a rich chocolate brownie with chocolate and white frosting. with eggs or with cheese. Chicken and steak variants of the McSkillet exists in limited areas. shredded cheese. Egg mcmuffin: • McDonald's primary breakfast offerings are breakfast sandwiches. McDonald's introduced breakfast foods for the first time in 1977. a type of cinnamon roll called a Cinnamon Melt. ham or bacon. hash browns and meats or breads. Biscuits and gravy are available in parts of the southern US. it consists of a fried egg.
Green Mountain Coffee Roasters supplies Newman's Own branded coffee for McDonald's New England area restaurants. and Rolo (available only in Canada and the UK. Coffee. Arctic Orange (sherbet). The McCafe is an umbrella term for lattes.• • • the Mall of America and the University of Maryland. iced coffee. Cherry. Shamrock Shake (a green. strawberry. Patrick's Day). Mango Raspberry. This flavoured milkshake was also available in the Republic of Ireland during the summer of 2007 for a limited time only). Pumpkin (during Halloween). Hot and iced tea (supplied by S&D Coffee in the US). In the US and Canada. regional or seasonal flavors include Caramel. 13 months before the celebration of the United States . In June 1975. and other coffee drinks that are sold in several markets worldwide. S&D Coffee. Eggnog (Limited Time Offer shake for Christmas). Chocolate Mint. Permanent flavors are vanilla. Honeycomb. peppermint Limited Time Offer shake for St. • Milkshakes are available in all of McDonald's US and global markets. Cadbury-Schweppessupplies Dr Pepper. hot chocolate. Gavina and Kraft supply McDonald's Premium Roast Coffee for McDonald's US restaurants besides the New England area. College Park Student Union. Banana. and chocolate. hot chocolate. espresso. Strawberry Banana. various juices and other regional beverages are available in various markets. mocha.
Germany. and Italy.• • • Bicentennial. 1% chocolate milk. McDonald's introduced a blueberry-flavored shake in order to advertise "Red. Desserts: • • A soft serve ice cream product is available in several forms. and Blueberry Shakes" for independence day celebrations. White. due to it being an "optional" item) or chocolate-dipped). McDonald's also offers 1% milk. Portugal. including sundaes. and as the primary ingredient in the McFlurry. Irn-Bru is available in most Scottish McDonald's locations. cones (either vanilla. As with many other formulations of soft serve. Czech Republic. cellulose gum is utilized as an extender and thickener. Spain. but not since. most often as replacements for fountain drinks in Happy Meals. and lasting through August of that year. and apple juice. The mixing blade for the dessert is actually a specially designed spoon with a hollow handle that attaches to the mixer spindle. . The run was repeated in summer 1976. Available in most of its markets. fruit or cookies mixed into it. The McFlurry is a vanilla ice cream dessert that has pieces of candy. The blade is used once then given to the customer to use to eat the product. Beer of different brands (varies locally) is available at McDonald's in France. chocolate (Most McDonalds have discontinued to sell it.
The name McFeast lives on though in the Nordic countries. blueberry was standard. in the 1970s. lettuce. The consumer was then . and Corn in Japan. in certain markets in the late 1970s. 1 tomato slice.McDonald's version of hot dogs. McFeast: A hamburger with a slice of ham and cheese. lettuce. and Tuna (all in Guam as limitedtime).• • • • • McDonaldland Cookies: McDonaldland cookies are traditionally available and are similar to animal crackers. The meat and bottom half of the bun were prepared separately from the lettuce. the McFeast also contains ketchup. Birdie the Early Bird. but has since been discontinued. except the shapes of the cookies are of Ronald McDonald. cherry and strawberry are an available pie flavor in Canada.a mix of frozen strawberries and blueberries and vanilla yogurt. but not in Sweden. In Thailand and Guam. where a McFeast has been served since the mid-1980s in Sweden and later introduced to the rest of the Nordic countries. Holiday. In Canada. wild berry. During some seasonal promotions. ketchup. the Hamburglar. Currently McDonald's is selling S'mores pie. Discontinued menu items: McDogs . Taro pie is featured occaisionaly. McDLT: The McDLT (McDonald's Lettuce and Tomato) was sold in a novel form of packaging. Freshly Baked cookies: "Freshly" baked cookies manufactured by Nestlé are available in some markets. The McFeast was sold in Australia until late 2009 and contained: mustard. modified mayonnaise with lemon juice. Hulaburger: A Ray Kroc invention. as was the Great Fruit Pie. and the Fry Guys. In the rest of the countries. McChicken sauce. It was test-marketed in 1963. Both were then packaged into a specially designed two-sided container. sold with a package of granola topping. sauces. strawberry banana. onion and tomato. Smoothies are available in some locations. Pies: McDonald's pies are actually turnovers and come in a choice of apple. The Fruit and Yogurt Parfait . it featured a slice of pineapple instead of meat. cherry and other seasonal or limited-time-only flavors such aspumpkin pie and haupia pie in Hawaii. The same burger was sold under the name Mega Feast in New Zealand for several years during the 1990s. Originally intended for Roman Catholics who were not allowed to eat meat on Fridays during Lent. Grimace. the McFeast in Sweden contains a quarter pounder patty. Other regional flavors include Coconut. pickles. tomato. regular cheese and a 4:1 quarter pounder patty served in a Quarter Pounder/McChicken Bun. American cheese. for a limited time. and top half of the bun. mango and strawberry flavors. large onions.
expected to finalize preparation of the sandwich by combining the hot and cool sides just prior to eating. McChicken LT (McDonald's Chicken Lettuce and Tomato) was the chicken version of the McDLT featuring the same two-sided container as the McDLT except the packaging was yellow instead of white. It was introduced about the same time as the McDLT in the mid-1980s. The chicken was a grilled, unbreaded chicken breast placed on the heel of the bun in one of the compartments. The toppings were shredded lettuce, tomato and mayonnaise assembled on the top half of the bun in the other compartment. Cheese was an optional addition for an extra US$0.10. The grilled chicken breast was then basted with a brushing of melted butter. As with the McDLT, the consumer would finalize preparation of the sandwich by combining the hot and cool sides just prior to eating. The McChicken LT was discontinued in the Fall of 1987. Beefsteak Sandwich - test-marketed in New York and other East Coast markets in 1980 and as far west as Chicago were part of a McDonald's "Dinner Menu", offered only after 4:00 p.m. The Beefsteak Sandwich was essentially an elongated hamburger of a different quality served on a short French roll, similar to a sub or hero roll. Packets of steak sauce (A1 sauce in Chicago) were available for the sandwich. In 1993, McDonald's tested a bigger burger called the Mickey D in about 100 restaurants in the Midwest. Weighing in at 5.3 ounces, it was the largest burger on the menu, topping the Quarter Pounder and Big Mac, which weigh 3.2 ounces each. The Mickey D sold in test markets for US$2.29. It had a one-third-pound beef patty on a crusty roll, Cheddar cheese, diced tomatoes, red onions and a special spicy sauce. Testing of the Mickey D began in early January 1993. It expanded nationwide during the summer of 1993 and was discontinued that fall. Onion Nuggets - introduced at the same time as the Beefsteak Sandwich as the side item for the Dinner Menu. Onion Nuggets were chopped onions shaped into small solid pieces, dipped in batter and deep-fried.
McLean Deluxe - A lower-calorie Quarter Pounder-type sandwich (introduced in 1991). This item was otherwise identical to the Big N' Tasty and the McDLT. Triple Ripple - A mixed cone with strawberry, vanilla, and chocolate, topped with a plastic top. Arch Deluxe - An attempt to produce a "luxury" hamburger, promoted by a highprofile advertising campaign (introduced in 1996). It featured a quarter-pound beef patty on a potato roll, with leaf lettuce, tomato, red onion, cheese, and a honey mustard-type sauce; peppered bacon was also offered for an extra charge. Torta - In 2000, the company released their own version of tortas, a Mexican sandwich, in southern California on a trial basis. McStuffin - a pocket sandwich available with various fillings. Chicken McGrill - Same as the Crispy Chicken, but with a marinated, grilled chicken breast. Also replaced with a premium chicken sandwich in July 2005, but is still available in Canada and India. McGrilled Chicken Classic - A sandwich featuring a grilled chicken breast portion that was produced before being replaced by the Grilled Chicken Deluxe/Chicken McGrill. Spicy Chicken - Chicken breast with spicy breading introduced in 2006 McWraps - Chicken Caesar, Chicken and Garden Salad wraps served toasted in a thick herb flat bread. Fried Roast Beef Sandwich - Inspired by a franchisee's version of an Arby's sandwich, the sandwich failed due to the costs of getting roast beef slicers, no matter how many sandwiches they could sell, it would never turn a profit. Philly Cheesesteak - Slices of steak and Swiss cheese with onions. Served until August 2007 at Australian and American McDonald’s. This sandwich is still available in Canada, made with cheese spread instead of Swiss, and with green bell pepper. Pizza / McPizza - McDonald's has also attempted pizza at various times, with an apple-pie–like McPizza and more conventional McDonald's Pizza. A line of personalsized pizzas was first seen in the late 1970s in test-market stores near interstate highways around Milwaukee and Madison. In British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Newfoundland & Labrador, Prince Edward Island, and Nova Scotia (c. 1992-1997), the pizza originally began as a family-sized pizza that was brought out to the table by an employee and placed on a raised rack in the centre of the table. Later it was scaled down to a personal-sized pizza. However, variations have found their way into some international markets such as India (the pie-like "Pizza McPuff"). McDonald's also test marketed a 14-inch, round, traditionalstyle pizza in Evansville, Indiana, and nearby Owensboro, Kentucky, in 1989. By
1991, the McDonald's test markets for pizza had grown to over 500 McDonald's locations before the pizza test was placed on hold. Hot Dogs - In his 1977 autobiography CEO Ray Kroc prohibited the company from selling hot dogs, regardless of potential demand, as he regarded them as unhygienic; however, hot dogs were introduced in the late 1990s at some Midwestern located stores (at the option of the franchise-holder) as a summer item. UK stores sold hot dogs during the late nineties on the McChoice menu (later PoundSaver). Also, at least one American restaurant offered Oscar Mayer hot dogs at some time, notably in Bethel Park, Pennsylvania, and McDonald's locations at Toronto Metro Zoo and SkyDome in Toronto offered hot dogs until 1999. In Tokyo locations, hot dogs were available in 2001, and have been reintroduced for 2009, dubbed the "McHot Dog." Bratwurst - For a few years during the 1990s, Johnsonville brand brats were sold in some US markets for a limited time each fall. Corn dogs - For a brief time in 2001, Columbus, OH, area McDonald's offered a multi-pack of mini corn dogs without sticks. Grilled Chicken Flatbread Sandwich - Grilled chicken strips, lettuce, tomato, grilled onions, pepper jack cheese, and a creamy herb sauce served wrapped in a heated flatbread. Served briefly in June 2002, and brought back in December 2002January 2003. Chicken Platter - A grilled chicken burger served with lettuce and tomato on the HotCakes tray. Big 33 or McJordan Special - A quarter pound burger with bacon and special barbecue sauce named after basketball players Larry Bird and Michael Jordan, respectively. Triple-Double Burger - A burger featuring 3 beef patties and 2 slices of cheese, served on the same 6 inch (15.2 cm) sesame seed roll as theMcRib. This was sold under the names of local sports stars in at least five markets in the 1990s: The Jason Kidd Burger - Downtown Phoenix, Arizona, franchises had an Limited Time Offer burger named after NBA player Jason Kidd, while he played for the Phoenix Suns. Boselli Burger - Jacksonville, Florida, franchises also featured the TripleDouble Burger in 1998, named after Jacksonville Jaguars tackleTony Boselli. The Michael Dean Perry burger, for the then Cleveland Browns star. The Rory Sparrow burger was sold in the Sacramento area. It was named after the Sacramento Kings star. The Hockey Hero burger, in Canada.
It featured a single patty topped with cheese.Y.The Chicken Fajitas consisted of a small soft tortilla. Happy Meal Breakfast . tomato. Still sold in Hong Kong. Chicken Fajitas . fettuccine alfredo. N. tatsoi lettuce. Dinner Menu . spaghetti. Australia sold a Lean Beef Burger which contained ketchup. It was discontinued in late 2009. Salad Shakers . Beef Wennington . a slice of tomato. Australia sold a limited edition burger called the "Double Beef and Cheese" which was like a double cheeseburger but with only one slice of cheese. These are still available in British Columbia. and spaghetti with meatballs.A chicken breast covered in bread crumbs and topped with tomato sauce and mozzarella on a toasted bun. onions. McDonald's began selling these in the mid/late 1990s and stopped selling them in the early 2000s. McDonald's began testing a pasta-based menu at 40 units across Rochester. rather than the two slices that are on the double cheeseburger. The fajita was in the traditional thin wrapping paper and given that way. The side dishes included mashed potatoes and gravy and a vegetable medley. onions. because it wasn't made for kids and so forth.Similar to the double cheeseburger. fettuccine alfredo. Chicken Parmesan Sandwich .The Happy Meal Breakfast was a meal that was smaller than the traditional breakfast that lasted from the 1980s to 2009. named after former Chicago Bulls player Bill Wennington. and roasted chicken as entrees. Grilled Cheese Happy Meal . IL. In the early 1990s. it included a brownie à la mode. For the dessert.There was a Happy Meal introduced during the early part of the 2000s that contained a grilled cheese sandwich. in September 1991. a slice of cheese. It also had only one slice of cheese.. and grilled chicken. croutons and other vegetable in a tall dome shaped plastic container. It consisted of the above mentioned pizza but also included lasagna. It was discontinued the same summer it was released but is still sold in some Canadian markets. a grilled vegetable medley. a new Dinner Menu was tested for 6–12 months at two locations in New York and Tennessee.A salad of lettuce. slivered onions. It was discontinued by advice of the Nutrition department at the Corporate Headquarters in Oak Brook. . including lasagna. and mayonnaise. barbecue sauce and a slice of Canadian bacon. however the toppings were different. large and meaty. Mighty Wings . and a beef patty.Deep fried spicy chicken wings. Saskatchewan and Manitoba at certain locations and at all non-Walmart McDonald's in Ontario. Daily Double . Salad Shakers are still available in Brazil.After testing pasta in the South in 1989. The Daily Double was made with lettuce.A burger solely offered in the Chicago area in 1998-1999.
It was a regional item sold in the mid-1990's in Louisville. ketchup.A single patty hamburger with American Cheese. tomato. and bacon. lettuce. mayonnaise. and one 10:1 beef patty. Kentucky only during the spring to coincide with the Kentucky Derby. iceburg lettuce. It contained McChicken Sauce. a slice of cheese. Discontinued in the early 2000s. It was discontinued in late 2009. . Derby Burger . Australia sold a burger called the "Deluxe Cheeseburger" which was sold as part of their "Value Picks" selection. onions.
COMPETITORS / MARKETING ASPECTS .
the Big Mac® sandwich was introduced. McDonald's commercials have focused not only on product. "Who could we get to open them for us?" Dick McDonald said. a part of our lives and culture. followed by the Egg McMuffin® breakfast sandwich in 1973. convinced that he could sell eight of his Multimixers to each and every one. history: Ray Kroc. From one restaurant in 1955. he packed up his car and headed West.Milestones and accomplishments have followed ever since. there are tens of thousands of McDonald's restaurants serving millions of people daily around the world. Ray Kroc had never seen so many people served so quickly. McDonald's has become not only the leading global foodservice company." A History of McDonald's Advertising Themes Over the years. at 52 years old. In 1967. but also one of the strongest and most recognized brand names in the world. including: . British Columbia. to more than 31. the first McDonald's restaurant outside the United States opened in Richmond. Today. McDonald's values transcend borders and cultures. Hearing about the McDonald's hamburger stand in California owned by Dick & Mac McDonald running eight Multimixers at a time. 47 million consumers worldwide visit McDonald's because they know and love the Golden Arches. He pitched the idea of opening up several restaurants to the McDonald brothers. "what about me?" Ray Kroc opened the Des Plaines. In 1968. Illinois restaurant in 1955 and never looked back. Well.000 locations in 119 countries. portraying warmth and a real slice of every day life. It was 1954. Each and every day." Kroc answered.Marketing: By combining fundamentally sound operational practices with innovative marketing strategies. invested his entire life savings to become the exclusive distributor of a milk shake maker called the Multimixer. This "image" or "reputation" advertising has become a trademark of the company and created many memorable television moments and themes. Ronald McDonald and Big Mac sandwiches. McDonald's has developed TV advertising campaigns that have become. The incredible growth and success of McDonald's can be summed up with the first thought that went through Ray Kroc's mind when he first saw McDonald's: "This will go anyplace. In 1965 McDonald's went public with the company's first offering on the stock exchange. like McDonald's. but rather on the overall McDonald's experience. Today. Ray Kroclaid the foundation for McDonald's global success.
providing quality products at competitive prices. That's Why This is My Place (1988) Food.Canada Only i'm lovin' it (2003) Consumer Promotions Promotion McDonald’s® "Customer Satisfaction Survey" Sweepstakes 2010 James Cameron's Avatar Experience McDonald’s® Big Mac® Fanatic Contest OFFICIAL RULES McDonald’s® "Customer Satisfaction Survey" Sweepstakes 2009 MONOPOLY® Game at McDonald’s® OFFICIAL RULES Suppliers: McDonald's suppliers play a pivotal role in our success. Ray Kroc. Folks and Fun (1990) McDonald's Today (1991) What You Want is What You Get (1992) Have you Had your Break Today? (1995) My McDonald's (1997) Did Somebody Say McDonald's (1997) We Love to See You Smile (2000) There's a little McDonald's in Everyone (2001) . a second leg is our franchisee partners and the third leg is our supplier partners. One of the legs is McDonald's. is often described as a three-legged stool.McDonald's is Your Kind of Place (1967) You Deserve a Break Today (1971) We Do it All for You (1975) Twoallbeefpattiesspecialsaucelettucecheesepicklesonionsonasesameseedbun (1975) You. This philosophy. striving to Date December 2009 December 2009 December 2009 December 2009 October 2009 Official Rules Website Official Rules Winners Official Rules . The stool is only as strong as its three legs. established by our founder. You're The One (1976) Nobody Can Do It Like McDonald's Can (1979) Renewed: You Deserve a Break Today (1980 & 1981) Nobody Makes Your Day Like McDonald's Can (1981) McDonald's and You (1983) It's a Good Time for the Great Taste of McDonald's (1984) Good Time. Great Taste. McDonald's Canada works closely with more than 100 Canadian leading suppliers.
create new products. Minute Maid. Newman's Own. France. from the International Olympic Games to local community soccer clubs. McDonald's was the sponsor in several countries around the world of National Olympic Committees. McCain. we send our own crew members from around the world . help reduce costs and ensure our customers receive the same great taste of McDonald's in every community across Canada. McDonald's extended its long-standing commitment to the Olympic Movement by joining the Top Olympic Program (TOP) and becoming a Worldwide Sponsor. In 1996. McDonald's has provided food service for athletes around the world at the Summer and Winter Games. accessibility and team spirit. McDonald's Canada has supported a wide range of amateur athletes. Our sports involvement is no exception. and Canadian champions Alexandre Despatie and Karen Furneaux. encouraging our children to incorporate physical activity and sports into their everyday lives. In fact. McDonald's suppliers include leading Canadian companies such as Coca-Cola. McDonald's became an Official Sponsor of the Olympic Games for the first time during the 1976 Olympic Games in Montreal. Sports sponsorship: McDonald’s in Sports McDonald's has always stayed close to its customers and to what is important to them. In essence. suppliers and the Company. Since that time. McDonald's focuses on sports reflective of our own values: universality. This was the first time in the history of the Games that a branded restaurant operated in the Olympic Village.our shopping basket is just a bit bigger! McDonald's buys and serves the same wholesome foods our customers use at home. Over the years. This represents more than 90 per cent of McDonald's Canada's total purchases for that year. Olympics McDonald's first became involved with the Olympics in 1968 by airlifting hamburgers to athletes competing in Grenoble.source products and supplies locally. and is still involved with legends like Wayne Gretzky. supplied by brand name companies Canadians know and trust. Danone. McDonald's purchased more than $700 million worth of food and paper goods from Canadian suppliers. Nestle. In 2005. Together. From 1988 to 1994. McDonald's has been involved in all levels of sports. Mother Parkers. Quaker and Saputo. we shop where our customers shop . Heinz. McDonald's is a strong believer of sports. Silken Laumann and Cassie Campbell. and from professional hockey to local pick-up leagues. along with franchisees.
Forget carrying change. 2004. While supplies last. D. Coca-Cola® . proud sponsor of the CHA and most NHL teams in the country. Saeed.. B. * At selected locations you will not be able to load or reload your card and only $10 preloaded cards will be available for purchase. McDonald's proudly supports local minor soccer teams in all regions of the country. McDonald’s strategic marketing mix: When the Dick and Mac McDonald opened their first restaurant in San Bernardino. It was not until 1955 when Ray Kroc. as the fastest-growing sport in North America. Hemphill.. they never could have imagined the extraordinary growth their company would experience (McDonald's Corporation FAQ. they found a winning formula selling high quality products quickly and low-cost. used under license. You can currently load or reload your card and check your balance at participating McDonald's restaurants* in Canada. Murray. A long-time partner of the NHL and the NHLPA. swipe and go! It's the little card that can carry a Big Mac® sandwich. and also involved in several junior and minor hockey leagues across the country.. Kroc realized the same . McDonald’s cards: he McDonald's® Card is the fast and convenient way to enjoy the great taste of McDonald's. M.d. just load. Hockey McDonald's is also strongly involved with Canada's number one sport. load the card with your desired amount and it's ready to use. or anything else you love from McDonald’s . our World Famous Fries™. Some cards may not be available. From modest beginnings. Quantities limited – vary by design. n. ©2009 McDonald’s. On a Canadian level. became involved in the business that McDonald's really began to flourish. Armstrong. 2005. California in 1948.). ®/TM Coca-Cola Ltd.. McDonald's is a sponsor of the FIFA World Cup. C. Pick up your McDonald's Card at participating McDonald's. J . Ask which cards are available.to each Olympic Games to work in our McDonald's restaurant in the Olympic Village serving athletes. & Methvin-Terry. Sports themed Cards available for a limited time only. including our popular hockey trading cards. a salesman from Chicago.. McDonald's brings hockey to Canadians through a series of programs. On the international front. It’s the perfect way to share the gift of McDonald’s with people you love. Soccer McDonald's is also a strong supporter of soccer. At participating McDonald’s® restaurants in Canada.
there are over 30. and that is at Fun McFactsWhen Was Your McDonald's .. n. and child in the world! McDonald's global sales were over $40 billion.). www. Nelson. C. However. n...mcdonalds. Marketing Mix Marketing mix must focus on the product. the "Happy Meal". McDonald's is no different.. In 2000 alone. Both are fast food and provide similar products.d. For perspective. they will tell you that there is only one place you can buy one.d.successful McDonald'sformula could be exploited throughout the United States and beyond with the use of franchising (www. of which 34 percent are operated by franchisees (Armstrong. n. over 70 percent of McDonald's Restaurants are franchises..mcdonalds. B. McDonald's must keep the strategic nature of its marketing efforts to stay on top and provide what customers want. and accessibility in the fight to the top of the market. E.). woman. 2005. promotion. McDonald's understood that the parent was making the purchasing decision.. input.000 people. As a leader in the fast food industry. 2004.d. 2003. M. 2004. O. Now.com. D. al. most likely based on price. D. In 1986. Newman. Kroc knew that the key to success was through rapid expansion.). Today. they may appear to have roughly the same marketing mix and target markets. n.. and placement of item in order to make it successful (Ferrel. there are over 1. thus.d. www.com. McDonald's is one of the world's most well-known. Nelson... J. the first franchised McDonald's opened in the United Kingdom. 2003. al. Murray.. Murray.000 these restaurants in more than 119 countries. They put a $. Moreover. quick service restaurant segment of the informal dining-out market in virtually every country in which they do business. Because of the invention of franchising and the development of some of the most creative marketing and branding campaigns. Some of the ways McDonald's handles the attacks of the media and competition is by creating a marketing mix to highlight the positive impacts the organization. An example of this is illustrated with a comparison of McDonalds and Wendy's. looking closer. At first glance. J. valuable brands holding a leading share in the globally branded.50 toy in with the hamburger. et. pricing. one can recognize that McDonald's primary target market is children ages 311 and their parents.d.150 restaurants. n. the best way to achieve this was through offering franchises. and drink and gave it a special name.. 2002). french fries. McDonald's served over 16 billion customers. What McDonald's marketing executives did was ingenious. D. If you have you ever asked your child where to buy a Happy Meal. McDonald's is often targeted. In 1955. employing more than 49..com. A franchise is an agreement or license to sell a company's products exclusively in a particular area. et. making it by far the largest food service company in the world (Armstrong. Marketing strategies must feature customer orientation. or to operate a business that carries that company's name. & Hartline. B. Then McDonald's marketed the Happy Meal to the kids. that number is equivalent to providing a lunch and dinner for every man. serving over 47 million customers around the world.mcdonalds.
cheeseburgers. shakes. coffee and milk 1963 – Filet-O-Fish 1968 – Big Mac and Hot Apple Pie 1973 – Quarter Pounder and Egg McMuffin 1974 – McDonaldland Cookies 1977 – Breakfast Menu 1978 – Sundaes 1979 – Happy Meals 1983 – Chicken McNuggets 1986 – Biscuit Sandwiches 1987 – Alads 1998 – McFlurry Desserts 1999 – Breakfast Bagels . soft drinks.Favorite Introduced? 1955 – Hamburgers. fries.
but inevitably experimentation in limited outlets provides . B. J. There have been so many strategies since the inception of the firm that it is difficult to account for them all. et.mcdonalds.com. its breakfast menu. Chicken McNuggets. The long history of innovation and experimentation resulted in new profit centers like Chicken McNuggets and the breakfast menu. The firm revolutionized the fast food industry and positioned itself as the market leader with low-priced. n. McDonald's marketing strategies should be looked at historically in order to see the larger picture of the firm's success.com. Wendy's does have children's meals that offer a toy. Wendy's targets a more adult market and the restaurants represent a more mature atmosphere with carpet floors and Dave Thomas advertisements (Armstrong.. Nelson.). and the McLean Deluxe sandwich were all examples of how the company tried to appeal to a wider range of consumers.. These things were what that the market wanted at the time and the firm answered in spades. These two icons have given customers a mental image of what to look for when they want quality food for a low price fast. 2003. J. even while striving to achieve consistency in the operation of its many outlets.d. but overall the atmosphere attracts a different demographic group." and fun advertisements with brightly colored "Fry Guys" or the "Cheese Burgerler". the two most memorable are the development of the "Golden Arches" and "Ronald McDonald". 2003) McDonald's. Nelson. 2004. Contrastingly. well-recognized organizations in the world... www. McDonald's restaurants have a variety of strategies that apply to product. The perceived secret of McDonald's success is the willingness to innovate. and price that makes them one of the most successful.d. quality food and provided an entertaining atmosphere for the children (2004. McDonald's has Ronald McDonald. For example. Product Strategies.. Murray.d. Innovation and experimentation also produced some disappointments like the McLean Deluxe. n.mcdonalds.).2000 – Chicken McGrill and Crispy Chicken 2001 – Big N' Tasty 003 – Premium Salads. Newman's Own® salad dressings and McGriddles 2004 – 2004 Chicken Selects® Premium Breast Strips (Nelson. 2003. playgrounds or PlayPlaces. promotion. al... salads. D. J. n. placement. www. "Happy Meals.
its 'Prosperity Burger' is popular in China. bread. 2004).com..com. McDonald's relies on test marketing new menu items in pilot locations (Armstrong. al. you know exactly what you will get no matter what store you go in to (www. they serve a variety of breakfast items and desserts. This strategy may be expensive. Many ideas for new menu items come from franchisees responding to customer demand. and Singapore at the time of the Chinese New Year celebrations. www.. 2003. In order to respond to the growing phenomenon of health consciousness.d. McDonald's menu is based on five main ingredients: beef. n. menu innovation injects enthusiasm allowing the firm to explore markets previously overlooked or ignored. 100% vegetable oil. but the potential to unleash new areas of growth in a maturing market seems to be right in line with what McDonald's has always done. Although McDonald's has thousands of restaurants around the world. For example. regional. In addition to the local flavors that have been created in the US. Indonesia. D. n. Malaysia. Those with the most potential could be rolled out further. 2004. This product strategy shows that McDonald's is interested in becoming part of the culture and is looking for ways to appeal to the market internationally. and low fat (Armstrong. Filet-o-Fish.mcdonalds. while the ineffective ideas could be left to die quickly. and ethnic tastes. 1% low-fat milk.mcdonalds. too (Armstrong. The use of franchising. Kuwait.d. Nelson. Nelson. McDonald's also introduces several other products. fries.. www. Every McDonald's is uniform.). D. 'Maharaja McBurger' is a vegetarianburger marketed in India. Developing new products is crucial to any business even those that successfully relied on a limited menu for many years. chicken sandwiches. Al.d. UAE. Hong Kong. et.mcdonalds. for example.. During promotions. it standardizes menus and operating procedures in these restaurants to insure consistency throughout. potatoes and milk. McDonald's has moved in favor of lean ground beef.com. was introduced in 1971.. Their main products are hamburgers. 2004. n. D. al. and beverages. Pakistan. et. et.). Taiwan.d.mcdonalds. As consumer tastes change. The "Egg McMuffin". J. To maintain consistency in the current menu while the firm tests new products to expand the product line. McDonald's international restaurants have been conforming to local. n. provides various perspectives that. lead to innovation for products and solutions. al. This item enabled McDonald's to accommodate consumers of the breakfast market. McDonald's tries a few new concepts simultaneous in different parts of the country to find the most promising new menu item. J. 2004. The special requirements for 'Kosher' foods are followed in Israel. Franchisees agree to operate their restaurants in the "McDonald's way" but there remains room for innovation. and Playlands were all products or concepts developed by franchisees (Armstrong.). Similarly. in turn. Drive-thrus. et. www. and Bangladesh.. McDonald's offers 'Halal' food in Muslim countries such as Saudi Arabia. 2003. again. chicken. In addition.). New products are rigorously market tested so that the franchisee will have a reasonable idea of its potential . In a recent McDonald's case study this was explained further: "For example. low sodium. D.com.McDonald's a way to retain its key strengths-quality and consistency-while continuing to evolve.
mcdonalds. et. McDonald's.mcdonalds.Fries.com. McDonald's already has a history of doing this so it will not require major changes to its operations strategy-at least initially. 2003.. 2004. 2004. while making sure the staff is fully trained in how to execute these products successfully. et. n. cannibalizing sales from the other McDonald's (Armstrong. 2003. meticulous approach to operations would ensure that consumers everywhere would experience the same dining experience at each restaurant. To this end.. 2004.. This strategy created some weakness in the last 10 years because it seemed that too many stores were put in some areas. n. www.d.).com. 2004. n. The introduction of new products. J. 2003. McDonald's had done well with a limited product range.. www. Nelson.. 2004. al. .mcdonalds. Placement Strategies.. 2003.). which have already been researched and tested. McDonald's has the opportunity to apply its core competencies of rigorous adherence to quality standards and continual promotion of experimentation in new venues (Armstrong. The company has also made convenience a focus. J. www. Nelson.). or Mac's. and sliding away from the fast food industry. stores.. One way to do that is by inserting a couple of new. D. n. www. This consistency presents a wonderful advantage for consumers who don't want to be surprised with a bad meal. J..d. al. The firm could franchise that concept nationwide and target the market of consumers who have grown past fast food.. D... satisfying experience for dinner consumers. Nelson. In addition. al. and the Egg McMuffin (Armstrong. may indicate that McDonald's menu needs a face-lift. then the task of maintaining quality becomes exponentially harder. Nelson. Nelson. al. D.mcdonalds. Freestanding restaurants are positioned so that you are never more than a few minutes away by foot in the city or by car in the suburbs. et. J.d. McDonald's focuses on store placement and are always looking for the best locations. not only through how fast it serves customers. 2004.d. Chicken McNuggets. et. www. This would refresh the product menu and provide new. www. D.. The trick is to consider how to eliminate some of the existing menu items when you introduce new ones. D. al. 2003. et.). D. The franchisees additionally benefit from the extensive national market research programs that assess consumer attitudes and perceptions (Armstrong. J.). considerably reduces the risk for the franchisee.. al.. n. but also in the location of its outlets. Quarter Pounder.)..com.. al.com. Big Mac... Imagine McDonald's opening a new casual dining restaurant under a different name. 2003. n. D.. like Mac's. 2004. et.d. Consumers would expect the same as they do currently with McDonald's-the Big Mac inMinneapolis is the same as the one in Beijing (Armstrong.com. McDonald's is tucking restaurants into schools.). Nelson. and more (Armstrong.mcdonalds.mcdonalds. If the product line-up gets too large.before it is added to the menu.d. et. McDonald's serves the world some of its favorite foods . J.com. What products do they want to buy and at what price? How are they performing compared to their competitors? This approach allows the firm to identify which items are likely to prove popular with consumers while ensuring that the company can deliver new products with consistent quality nationwide (Armstrong. highly promoted menu items. Declining per unit sales and competitors gaining ground..
McDonald's targets children in order to gain optimum results. Channel Management. al. McDonald's set an appropriate price for their product by looking at its competitors in each country. This campaign wasn't as successful as the fast foodgiant found would have hoped (Commins. has also ran many promostions to increase traffic or product sales..mcdonalds. McDonald's differentiates itself by offering a dollar menu. 2004. For instance. market. channel management. the focus is purely on localization with different strategies for different countries.. McDonald's is attempting to localize marketing communications due to the realization that it couldn't possibly appeal to all countries at the same time. where the competition is not so cutthroat or by introducing new restaurant concepts under brands other than McDonald's. it's only real opportunities for growth lie abroad. These promotions. . over the years. Nelson. but within their distribution. like the Big Mac in April. and a free toy with Happy Meals (Armstrong. in Chinait was recognized that advertising on television would be a waste of money because commercials between programs are generally ignored.). and Logistics.d. 1997). The organization's overall objective is to increase market share. McDonald's. thus defeating the initial objective. some better than others. Instead.. et. Another promotion was the "Campaign 55" where diners could buy a featured sandwich. et. but also the firm looks for ways to improve the operations that makes McDonald's a more efficient business. and other prizes have been used by McDonald's restaurants over the past 50-plus years. Distribution. D." With this new product is offered a variation of the "usual" sauces for the Chicken Nuggest .).mcdonalds.).d. www. the ultimate message (brand) is the same. www. not only with customers. have helped to keep McDonald's growing and gaining in the fast food world. for 55 cents when purchased with fries and a drink. videos. Similarly.com. Of course.a Chipotle Barbeque sauce is most commonly advertised (www. Pricing Strategies.. D. Value has been an area in which McDonald's has strengthened over time. in East Asia. McDonald's uses newspapers and magazines to promote its image. n. McDonald's strategy is to offer quality food quickly to customers at a good value (www. J.com. A company the size of McDonald's requires the value chain to be increasingly important. act locally".S. combination meals. al.com. the most recent roll out has been the 2004 Chicken Selects premium Breast Strips. The firm sees the necessity to "brand globally. the medium is what is strategically modified.). Not only does McDonald's want to add value for the customers.. The pricing structure for McDonald's over years has supported this message.com. n. The company strives to differentiate itself from other fast food restaurants by offering a variety of menu items that appeal to a variety of people from those who just want great hamburgers. collectibles. and logistics strategies as well (Armstrong. Many other promotions with food. n. P. Right now. For example. n.d. 2003.mcdonalds.Because McDonald's has pretty well saturated the U.mcdonalds. Pricing could not possibly be standardized across the globe without alienating many countries with poorer economies. 2004. you can go to your local McDonald's and "try them free. toys. In this instance. to those who just want a quick healthy meal.d.
d.. (n. McDonald's value chain is unique because of the rare need to depend upon other companies for supplies.d. O.). does not eliminate the need for suppliers. C. the firm has created efficiency in getting the products to the customers quickly and as fresh as possible. McDonald's has taken price competition out of the picture because the customer feels they have gotten quality. al.mcdonalds.. but the most common obstacle is the logistical planning in getting food and supplies. 2002.). D. Recently.com. n. thus sharing in the growth and success of the restaurant.mcdonalds. and the real estatewhere their restaurants built (Armstrong. n. & Hartline. et. delivery trucks. Therefore. For example.). www. McDonald's sees the use of these catch phrases and the use of the Golden Arches as a very successful way of differentiating the restaurants from other fast food competitors. 2005. and the elimination of too many intermediaries. S. J. T. of course. This. & Snell. et. and in finding more ways than one to satisfy customers (Armstrong.com.. 2003. Bateman.d. 2004. which still seems to be the favorite. they alter their menu to fit into various countries cultures. and value . McDonald's knows that some customers go to its stores to take a quick break from their day's activities and not because McDonald's made the food ten seconds faster than their competitors could. J. but it has eliminated the need to coordinate paper products deliveries with meat deliveries. McDonald's constantly works to satisfy customers by developing new products to appeal to customers of various regions. E. 2004. and backgrounds.))..McDonald's is constantly striving to add value to the firm for their customers. McDonald's marketing executives then put together the phrase. et. D. The firm's mutual effort with suppliers and franchisees to develop and improve products and production techniques enables McDonald's to meet the high quality standards. convenience. 2004.d. McDonald's considers product quality to be the most important aspect and sets its standards among the highest in the food industry built (Armstrong." and now are in the "I'm Lovin' It!" mantra. www. to consumers who frequent the restaurants in Germany. D. Promotion Strategies. This growth and continued success. and in doing so. 2004. The firm owns nearly every portion of the value chain including warehouses. service. along with owning the warehouses allows the restaurants to get all of the needs met in one shipment and not deal with multiple suppliers (Armstrong. Restaurant chains encounter many obstacles in maintaining their business. Every dollar spent in getting the goods to the customer causes prices to rise (Ferrel. a cultural staple.and McDonald's still makes you feel like you are getting a break in your hectic day. www. www. Mansell. McDonald's is constantly looking for ways to improve and is successful because of the continuous updates on equipment.. Suppliers are a critical part of the value chain. D. "I'm Lovin' It!" doesn't seem to have as much punch as the earlier catch phrase. et. M. 2004. In addition. D. improvement on serving time. n.d.mcdonalds.mcdonalds. "Have you had your break today?" They continued to develop this idea with "You deserve a break today.. McDonald's established warehouses within a reasonable proximity to all of their restaurants to solve some of the logistical problems it had experienced.com. al. Newman.. McDonald's introduced a variety of salads to appeal to the healthier conscious customers. has allowed McDonald's to pass that value along to the customer. n. al. Nelson.com.. al. Creating catch phrases are only one . This.). S. they offer beer. A.
out-of-touch brand communication. n. www. Rally's. no one message can tell a whole brand story. but with media and movies such as "Supersize Me" adding to the fray. reported in the June 2004 edition that Larry Light. Burger King. These same decisions must be made in regards to the marketing of the company as a whole.com. n. 2004). Leavitt also reported.. In addition. the restaurant encountered new challengers such as Sonic. Olive Garden. communicating it in a repetitive manner.d. The firm's response to obesity claims against the organization and other unfavorable public sediment is to add healthier items to their menu and promote and offer health-conscious alternatives to the "would you like fries with that" legacy. Breaking the unhealthy association is difficult on its own.kind of promotion.).com. is old-fashioned. n. Rob Leavitt.com. www.com. This organization has created an image of partnership and community investment with these and other kinds of philanthropic activities (www. (Leavitt.'' he said. McDonald's has been the long-time leader in fast food wars since its inception.d. out-of-date. Wendy's. Domestically. However.mcdonalds. No one communication. Sponsorship of the 1998 football World Cup.).com. and McDonald's uses many kinds of promotions to keep the restaurants at the top of the industry. and website to include nutritional information and addressing diet restrictions (McDonald's Corporation FAQ. supporting the Tidy Britain Group and the Groundwork Trust.d. R. n. the Premier League and the European Championships increases awareness of McDonald's brand (McDonald's Corporation FAQ.mcdonalds.d.). This is also a central part of the image building process.'' According to Light. 2003. Strategy is the name of this game. McDonald's Chief Marketing Officer. J. and Taco Bell. McDonald's has modernized their advertisements. Another promotional strategy McDonald's uses is the huge investment in sponsorship. .). www. McDonald's has become a known community partner with Ronald McDonald Houses across the nation for the use of families whose children are hospitalized and getting treatment far from home (McDonald's Corporation FAQ. McDonald's has had to look for alternative strategies to keep consumers happy. but in the early 1990's. n. 2005. the restaurant came to a crossroads. 2005.mcdonalds. www. ITSMA e-zine editor. as well as local community activities. railed against those claiming brands must have only one identity that appeals to increasingly fragmented audiences. "A brand is multidimensional.. 2005. sales and revenues began to plateau as competitors began eating into its margins through promotions and value pricing strategies. Determining which way to market McDonald's and its products is a very important decision that can either cause products to fail or take flight. "Identifying one brand positioning.d. In addition to its traditional rivals.mcdonalds. Leaders Become Targets Fast Food Wars. McDonald's still follows Ray Kroc's community beliefs today. With the rise of health consciousness it has become more difficult McDonald's to compete because their reputation brands them as cheap food served fast (Nelson. pamphlets.). marketers that continue to follow a simplistic mass marketing approach are committing "brand suicide".mcdonalds.
employees.. 2004.).com.mcdonalds. al. research shows that McDonald's is very careful in making decisions that effect each area and/or how each area effects the other (Ferrel. promotion. www. D. et.). EDF and McDonald's considered its impact on a wide range of stakeholderscustomers.d. D. franchisees. n. To improve the public opinion on the restaurant. price. n. McDonald's remained steady in fast food. C.d.. J. & Hartline. 2003.mcdonalds. et. The firm had not altered its menu to accommodate families looking for a more upscale dining experience. al.com. www. D. Together. McDonald's recognized the importance of maintaining public favor regarding the environment. J. the late 1980s proved more frustrating to McDonald's. J. it is no surprise that McDonald's sought a way to reduce its solid waste while providing a more environmentally acceptable face to the public. In response. www. McDonald's partnership with EDF will continue to pay off with the growing concern for ecology. J. and leaving behind the polystyrene clamshell containers in favor of new paper-based wraps (Nelson. would have major ramifications because of the sheer size of McDonald's operations. in identifying the "four P's" of marketing addressed earlier (product. Any successes.). 2005.com. and the local communities surrounding them. J.. solicitation of suppliers to produce corrugated boxes with more recycled content. 2003.. First. Nelson. McDonald's collaborated with the Environmental Defense Fund (EDF) to explore new ways to make its operations more environmentally friendly (Armstrong.. This partnership has also helped with the bottom line by reducing shipping costs for supplies as well as garbage removal fees (Nelson.mcdonalds..). One 1990 study found that "each McDonald's generated 238 pounds of on-premise solid waste per day" (Nelson.com.mcdonalds. 2003.. 2003. McDonald's surveyed consumers to find that some respondents would not purchase McDonald's products because of the unknown effect the product packaging would have on the environment. franchisees. even if only incremental improvements. www.d. It makes sense to be a good corporate citizen and receive all the accolades that go along with such an alliance. McDonald's is concerned about how the firm will fulfill the needs and wants of its customers and in the activities associated with maintaining therelationships with its stakeholders.com. O.mcdonalds. McDonald's stakeholders include customers. Some of the solutions that came from the collaboration include the use of brown paper bags. 2004.. In addition to these fast food wars. . To counter some of this criticism. M. high in recycled content. The Golden Arches was the beneficiary of criticism from environmentalists who complain about the amount of litter and solid waste the restaurant generated each day. and the environment. Social Factors.. Restaurants like Sonic and Rally's used a "back-to-basics" approach of quickly serving up burgers and limiting their menus to compete with the "Golden Arches" (Nelson. n. Conclusion McDonald's marketing mix is strategic because of the diverse approaches that are used.. Nelson. www. n.and Chili's (Armstrong.d.d. suppliers.). Olive Garden and Chili's restaurants became effective competitors in the quick service field by appealing to diners looking for something a little more enticing and in taking dollars away from McDonald's. and placement).. 2003). suppliers. 2003). n. J.
develop the habit of looking at your product as though you were an outside marketing consultant brought in to help your company decide whether or not it's in the right business at this time. the development of the Golden Arches or Ronald McDonald has provided consumers with memorable icons that are associated with quality. you need to develop the habit of assessing your business honestly and asking.McDonald's has shown care for customers through the decisions to add more healthful foods to the menus. should not overshadow its marketing initiatives. These seven are: product. price. just like the McDonald brothers and Ray Kroc intended. what is it? If not. The restaurant has developed competitive advantages in the industry of serving quality fast food at a low cost. Though there are many opportunities for this fast food giant. The 7 Ps of Marketing Once you've developed your marketing strategy. and value. positioning and people. packaging. you would not bring out again today? Compared to your competitors. The company's environmental efforts. by changing how products are packaged or how foods are prepared. McDonald's must keep the strategic nature of its marketing efforts to stay on top and provide what customers want. and by philanthropic contributions and sponsorships. "Are these the right products or services for our customers today?" Is there any product or service you're offering today that. place. is your product or service superior in some significant way to anything else available? If so. As products. service. appropriate and suitable for the market and the customers of today?" Whenever you're having difficulty selling as much of your products or services as you'd like. customers and needs change rapidly. there is a "Seven P Formula" you should use to continually evaluate and reevaluate your business activities. markets. promotion. could you develop an area of superiority? Should you be offering this product or service at all in the current marketplace? . "Is your current product or service. In addition to these decisions. Product To begin with. knowing what you now know. you must continually revisit these seven Ps to make sure you're on track and achieving the maximum results possible for you in today's marketplace. Ask critical questions such as. while important. McDonald's faces some difficult challenges in moving away from the fast food king to a more health conscious provider for customers who care about what they eat. or mix of products and services. The keys to its future success will be maintaining its core strengths-an unwavering focus on quality and consistency-while carefully experimenting with new options.
to remain competitive. Develop the habit of continually examining and reexamining the prices of the products and services you sell to make sure they're still appropriate to the realities of the current market. Promotion includes all the ways you tell your customers about your products or services and how you then market and sell to them. and the interest you can charge will more than make up for the delay in cash receipts. to survive and thrive in a fastchanging marketplace. they may lose a percentage of their customers. In either case. if necessary. Be open to the possibility that your current pricing structure is not ideal for the current market. marketing and advertising approaches. In business. Sometimes a change in place can lead to a rapid increase in sales.Prices: The second P in the formula is price. Sometimes you can combine products and services together with special offers and special promotions. You can sell your product in many different places. By raising their prices. sooner or later. you can sell far more than you are today. Sometimes you can include free additional items that cost you very little to produce but make your prices appear far more attractive to your customers. Sometimes you need to lower your prices. Could this be appropriate for you? Sometimes you need to change your terms and conditions of sale. And here is the rule: Whatever method of marketing and sales you're using today will. as in nature. Large and small companies in every industry continually experiment with different ways of advertising. Place: The fourth P in the marketing mix is the place where your product or service is actually sold. Small changes in the way you promote and sell your products can lead to dramatic changes in your results. Be open to the need to revise your prices. stop working. promoting. but the remaining percentage generates a profit on every sale. At other times. and strategies. Experienced copywriters can often increase the response rate from advertising by 500 percent by simply changing the headline on an advertisement. Some companies use direct selling. Promotion: The third habit in marketing and sales is to think in terms of promotion all the time. Sometimes. Even small changes in your advertising can lead immediately to higher sales. by spreading your price over a series of months or years. Develop the habit of reviewing and reflecting upon the exact location where the customer meets the salesperson. it may be appropriate to raise your prices. Many companies have found that the profitability of certain products or services doesn't justify the amount of effort and resources that go into producing them. and you'll have to develop new sales. whenever you experience resistance or frustration in any part of your sales or marketing activities. Sometimes it will stop working for reasons you know. and sometimes it will be for reasons you don't know. Some sell by . your methods of marketing and sales will eventually stop working. offerings. sending their salespeople out to personally meet and talk with the prospect. be open to revisiting that area. and selling their products and services.
Everything affects your customer's confidence about dealing with you. Some companies use manufacturers' representatives or distributors. would be represented by IBM salespeople. Packaging refers to the way your product or service appears from the outside. Watson. Some sell at trade shows or in retail establishments. You should develop the habit of thinking continually about how you are positioned in the hearts and minds of your customers. Small improvements in the packaging or external appearance of your product or service can often lead to completely different reactions from your customers. What is yours? In what way should you change it? Where else could you offer your products or services? Packaging: The fifth element in the marketing mix is the packaging. When IBM started under the guidance of Thomas J. every salesperson was required to look like a professional in every respect. Because IBM was selling relatively sophisticated high-tech equipment. your brochures. at least initially. How do people think and talk about you when you're not present? How do people think and talk about your company? What positioning do you have in your market. white shirts. your waiting rooms. In each case. Packaging also refers to your people and how they dress and groom. Develop the habit of standing back and looking at every visual element in the packaging of your product or service through the eyes of a critical prospect. clean fingernails-and every other feature gave off the message of professionalism and competence. you should think in terms of everything that the customer sees from the first moment of contact with your company all the way through the purchasing process." Positioning: The next P is positioning. Remember. Some sell in joint ventures with other similar products or services. Every element of their clothing-including dark suits. With regard to the packaging of your company. in terms of the specific words people use when they describe you and your offerings to others? . Watson knew customers would have to have a high level of confidence in the credibility of the salesperson. "You look like someone from IBM. dark ties. Some sell through catalogs or mail order..telemarketing. he very early concluded that fully 99 percent of the visual contact a customer would have with his company. It refers to your offices. Sr. Many companies use a combination of one or more of these methods. As a result. He therefore instituted a dress and grooming code that became an inflexible set of rules and regulations within IBM. the entrepreneur must make the right choice about the very best location or place for the customer to receive essential buying information on the product or service needed to make a buying decision. your product or service. One of the highest compliments a person could receive was. shined shoes. Everything counts. Everything helps or hurts. your correspondence and every single visual element about your company. people form their first impression about you within the first 30 seconds of seeing you or some element of your company. conservative hairstyles.
with the skills and abilities to do the job you need to have done. Sometimes it's "the ultimate driving machine. In his best-selling book. Mc chicken burger. wrap paneer salsa. Non-vegetatarian burgers include Chicken Mc grill. potato wedges. THE 7 P's Of Mc DONALDS' PRODUCT: Mc Donaldâs product portfolio primarily comprises of vegetarian and non-vegetarian burgers. Begin by determining the position you'd like to have. In many cases. you must develop the habit of thinking in terms of exactly who is going to carry out each task and responsibility. veg pizza mc puff. it's not possible to move forward until you can attract and put the right person into the right position. Positioning. how deeply entrenched that attribute is in the minds of your customers and prospective customers determines how readily they'll buy your product or service and how much they'll pay. Attribution theory says that most customers think of you in terms of a single attribute. either positive or negative. Your ability to select. recruit. It's amazing how many entrepreneurs and businesspeople will work extremely hard to think through every element of the marketing strategy and the marketing mix. soft serve . Jim Collins discovered the most important factor applied by the best companies was that they first of all "got the right people on the bus. wrap chicken Mexican. in a specific way. Along with these frenchfries. Mc veggie burger are offered to the customers." as with BMW. Mc Aloo Tikki Burger. The vegetarian burgers like Veg surprise. In every case." Sometimes it's "excellence. is more important than everything else put together. If you could create the ideal impression in the hearts and minds of your customers." To be successful in business." Sometimes it's "quality engineering. Good to Great. Develop the habit of thinking about how you could improve your positioning. Develop the habit of thinking in terms of the people inside and outside of your business who are responsible for every element of your sales and marketing strategy and activities. the authors point out that how you are seen and thought about by your customers is the critical determinant of your success in a competitive marketplace. Many of the best business plans ever developed sit on shelves today because the [people who created them] could not find the key people who could execute those plans.In the famous book by Al Reis and Jack Trout. what would it be? What would you have to do in every customer interaction to get your customers to think and talk about in that specific way? What changes do you need to make in the way interact with customers today in order to be seen as the very best choice for your customers of tomorrow? People: The final P of the marketing mix is people. and the wrong people off the bus. Sometimes it's "service." Once these companies had hired the right people. salad sandwich. the second step was to "get the right people in the right seats on the bus." as with Mercedes Benz. and then pay little attention to the fact that every single decision and policy has to be carried out by a specific person. Fliet of fish and chicken maharaja burger. hire and retain the proper people.
Wrap chicken Mexican is priced at Rs 55. the various econo meals and value meals also signal to the customer that buying separate items results in greater value for money for the customer. various schemes for winning prices by way of lucky draws and also scratch cards are given when an order is placed on the various mean combos. PHYSICAL EVIDENCE: Mc Donalds focuses on clean and hygienic interiors of is outlets and at the same time the interiors are attractive and the fast food joint maintains a proper decorum at its joints.pineapple and choclate ice creams. PLACE: Mc Donalds outlets are very evenly spread throughout the NCR region. The customers are invited to check the ingredients used in food. In fact. Wrap paneer salsa is priced at Rs 45-50. PROCESS: The food manufacturing process at Mc Donalds is completely transparent i. PEOPLE: The employees in Mc Donalds have a standard uniform and Mc Donalds specially focuses on friendly and prompt service to its customers from their employees. Mc Donalds also provides mean combos with medium fries and medium soft drink. Consider this Burger King arrived . McDonalds Vs Burger King Who's Better: You knew this comparison was coming eventually and should we compare it since we all know that McDonald's is doing better than Burger King? Although that is true in numbers McDonalds Vs Burger King is more than just profits. potato wedges at Rs 20. the fast food joint allows its customers to view and judge the hygienic standards at Mc Donalds by allowing them to enter the area where the process takes place. PRICE: Mc Donalds vegetarian burgers are priced between Rs 20 and Rs 48. In fact. soft serves at Rs 35. the whole process is visible to the customers.e. Mc swirl soft drinks. econo meals with small soft drink and value meals with potato wedges and small soft drink. The non vegetarian burgers are priced between Rs 30 and Rs 60. mc swirl at Rs 12. happy mean with small soft drink. Medium French fries are priced at Rs 28. medium soft drinks at Rs 20 and medium shakes at Rs 45. In happy meals too which are targeted at children small toys are given along with the meal. PROMOTION: At Mc Donalds the prime focus is on targeting children. Apart from this. Mc Donalds also offers take away drive through facilities. coffee and Mc shakes are also offered to increase the variety in the product portfolio. Mc Donalds does not offer home delivery but its outlets are very readily accessible.
Remember both of them are fast food franchises so for the common customer the closest franchise is enough. One of the best way to explain it is Burger King has always found outlets where there is a large concentration of people but that wasn't there only strategy because they also had the great idea of going head-to-head with McDonald across the street. In most cases people who have ate at McDonald's have tried Burger King and people who ate at Burger King have tried McDonald and that's completely normal. Lower prices maybe? I strongly doubt so because in a competitive market such as this one price is already at its lowest possible.much later on the fast food market and McDonald was the first fast food franchise ever invented. At the end of the day there isn't much difference except for the name of every meals. One of the reasons why Burger King was so successful includes many factors but one of them was location. So how is it possible for Burger King to go up against history itself? Surprisingly they did and even though McDonald is still the best fast food franchise Burger King is trailing by not too far. Does that mean the edge McDonald had over Burger King is fading? I strongly doubt that because both fast food restaurants a very competitive and strive to provide the best burgers and services to their customers. The process may vary a little bit but in general you'll be eating the same thing at both outlets. fries and a soft drink. A&W and much more. By setting outlets in front or near a McDonald outlet they were guaranteeing visibility of their franchise. Taco Bell. If you look at it both franchises have the same types of combo which includes a hamburger. But don't forget there are far more franchises out there so both McDonald and Burger King have other competition to worry about such as Wendy's. McDonalds Vs Burger King has been going on for a long time now and it's completely normal for the best franchise to be competing against the second-best franchise in order to keep its champion title. McDonald can come up with new marketing ploys and new food but it couldn't have the advantage of location like Burger King. It is very impressive for Burger King to have reached McDonald in a competitive way because McDonald has always been setting the first that so how does somebody who follows the steps can become so important to the eyes of the customers. Lower than that means they would be selling for free. .
000 stores in 121 countries around the world.s pledge to its customers o Quality. staff. so the customers always receive exceptional quality and service (like using gloves) Employees rely on teamwork and high energy to get the job done “ Keep the smile up” when serving o The Food : Meat and fries have to be properly fried Vegetables are thoroughly washed when used in the food o The Restaurant: Should be clean Have to be tidy . accurate and friendly service o Quality Control McDonald&apos. o Stay in Touch With Scientific Development : maintain close ties with the members of the scientific community on food safety & quality to stay abreast of new developments. o o Quality Service The Employees The Food The Restaurant Quality Control o The Employees : Are at work on time . are neatly dressed .Quality of management team How is implemented the Quality System? Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. o Continuous Training : offer training to McDonald&apos.s staff as well as suppliers&apos. and are clean Must make sure that the customers constantly receive safe food . . Service & Cleanliness (QSC) is our Pledge: QSC represents McDonald&apos.s thrives on customers’ feedback to continuously improve quality & service. o Quality at the Source : some of which reach to over 40 years encouraging an everhigher industry standards. sparkling and spotlessly clean Food delivers fast.s 100% commitment. o McDonald&apos. that of its employees & suppliers to deliver the best & safest quality to its 47 million customers visiting over 30. which implies that the employees must wash their hands often to remain clean Must follow certain Standard Operational Procedures .
" Information relayed digitally can be unreliable or misleading. Ambiguity can be sorted out immediately. What's more. Wilson insists face-to-face interactions allow people in the workplace to discuss issues thoroughly and are more conducive to identifying and addressing potential problems and solutions as well as discovering alternative approaches. the staff is also trained to maintain the right procedures. a ten-minute ‘holding time’ for sandwiches ensures maximum quality and freshness to each customer. resulting in alignment of priorities and direction. nonverbal cues can be read during real-life meetings to assess true reactions to an idea or opinions. In addition. "This clutter drives incalculable productivity loss for any organisation." he explains. In today's fast-paced digital world. Wilson summarises by saying: "While it is easy to click and send. and redirected e-mails with completely incorrect information or aimless oration are sent around like free candy. o Face-to-face management Wilson is a board-elected senior vice-president of the Coca-Cola Company. For example.McDonald’s employees are trained to prepare and present meals according to very specific procedures that are strictly enforced." However." Corporate responsibility of McDonalds: . and quickie digital contacts make poor substitutes. o McDonald’s even designs our restaurants to meet the ultimate in hygiene specifications . He observes: "People are starved for actual human interactions. and is also co-author of the book Managing Brand You. believes Wilson: "Grammatical errors abound. and decisions have a greater probability of moving ahead successfully. especially in the preparation and handling of raw and cooked products. Wilson adds: "Creativity can be explored during such discussions. where he serves as president of the global McDonald's division. People who do not have regular and credible interactions with others are missing the potential of personal growth. face-to-face interactions can have great impact. It all begins and ends with the people. including hand-washing procedures." Managers who excel in face-to-face interaction are good listeners and are able to understand or empathise with their colleagues. face-to-face interactions are more important than ever. They lead to more consensual decisions and the building of trust and high-performance teams. food quality and safety. None of this is so easy to do in digital space.
2010.In Jan. . McDonald's released the latest Corporate Responsibility Report to share information about what we are doing to address issues that are important to the well-being of our customers and our communities.
It is supported by the United States Olympic Committee. Produce for Better Health’s Campaign for Children's Health Since 2004. Congo. approximately eleven million children in grades 3–5 will learn about and play games from 15 countries around the world. please visit www.com. Vice Chairman & CEO McDonald's Passport to Play Chicago school children playingrayuela. This is a first for our industry. Helping people achieve the right balance between the energy they consume as food and the energy they burn in physical activity calls for involvement and collaboration by many sectors. France. we can and will make a difference. McDonald’s has developed a unique physical education curriculum—Passport to Play. we have worked with PBH to incorporate their Fruit and Veggies . much of McDonald's food packaging gives our customers essential nutrition information in an easy-tounderstand icon and bar chart format.000 elementary schools across the country. active lifestyles in the U. the National Association for Sport and Physical Education. The curriculum has been used by PE teachers in 40. Produce for Better Health has been a valued resource to McDonald’s by helping further our commitment to providing customers with a wide menu variety and quality choices that lend well to Balanced. Over the past two years.” — Jim Skinner.Balanced. active lifestyles. India. and experts at Baylor College of Medicine in Houston. Passport to Play is one of the many initiatives we have launched to support balanced. district curriculum directors. Active Lifestyles. a Colombian game Passport to Play To help motivate and engage children in physical activity.passport2play. physical activity experts.S. With the guide and materials we provide. and around the world. Nutrition Information Initiative As part of our global commitment to promote balanced. Scripps Reasearch Institute. Mexico. “We have a responsibility to lead. But more important. and the Netherlands. including Australia. For more information on Passport to Play. The curriculum was reviewed by teachers. active life style: McDonald’s is an industry leader on the well-being issues our customers care about.More Matters® brand messages into programs . Produce for Better Health Foundation and the MidContinental Research Education Laboratory (McREL).
resources. Supporting local youth sports programs. including the Olympics and the FIFA World Cup soccer matches. Sponsoring major sports competitions. Fruits and Veggies .fruitsandveggiesmorematters. Serving a variety of nutritious. high-quality food products and portion sizes. Ray Kroc. Maintaining strict standards of quality and safety. built McDonald’s on a foundation of ethical business conduct and involvement in our local communities. Informing our customers about energy balance and fun. McDonald’s became a sponsor of Produce for Better Health’s Campaign for Children's Health. Community Giving Back. a program that encourages the nation's children to eat more fruits and vegetables for better health. Providing nutrition information to help our customers make smart choices that address their individual lifestyle needs. fruit & yogurt parfait. Support for Breast Cancer Services: McDonald’s takes great pride in supporting the organizations and causes that are important . Active Lifestyles Overview On an ongoing basis. practical ways to incorporate physical activity into their everyday lives. Motivating kids to be active by engaging Ronald McDonald as our ambassador for play and activity. including premium salads. McDonald’s owner/operators and company-operated restaurants fulfill these vital commitments every day in many ways.Our founder.and communications. and apple dippers in Happy Meal choices. so that our customers can feel comfortable fitting any of our food products into their personal eating styles. PBH's goal for the Campaign for Children's Health is to raise $3 million in funding to be used for programs to provide parental know-how. active lifestyles by: • • • • • • • • Providing nutrition facts for your favorite McDonald's Meal at Bag a McMeal.More Matters is a health initiative that encourages consumers to add MORE fruits and vegetables to every eating occasion. please go to www. we support balanced.org In 2008. and motivation that will make increased fruit and vegetable consumption a reality among our children today. • Balanced. To visit their web site.
Spent more than $961. World Children's Days has raised more than $150 million around the world. Growing Communities. and their core programs—Ronald McDonald House. Ronald McDonald Family Room. and revenues for local projects and services. its 157 local Chapters across the country. World Children's Day: Since 2002. New Haven. Our restaurants are often key elements in neighborhood stability and revitalization. Had a combined investment of nearly $1. In 2009. visit www. Denver. Broadway-themed Times Square restaurant McDonald’s in Florida In 2009. Washington. They also help support the RMHC U. Houston.. Tulsa.2 billion in the area. Cleveland.to our employees and customers. Phoenix.5 million dollars in their communities.S. or more than $2. The threestory. Sacramento.networkofstrength. McDonald’s in the community means jobs for local residents. McDonald’s 832 Florida restaurants collectively: • • Provided jobs for nearly 39.C. and Ronald McDonald Care Mobile. . McDonald’s returns as national presenting sponsor of Breast Cancer Network of Strength’s Mother’s Day Walk to Empower events taking place in 16 cities across the country – Chicago. McDonald's restaurants around the world have hosted an annual simultaneous fundraiser for children in their communities—World Children's Day. Atlanta. San Diego. Scholarship Program and grants to other organizations that directly improve the health and well-being of children. Sponsorship of this national Mother’s Day tradition continues McDonald’s heritage of giving back to our communities and our longstanding commitment to breast cancer awareness and education support.S. The funds mean additional support for RMHC. San Francisco and Seattle. Chattanooga. McDonald’s in New York City Owner/operator Irwin Kruger created a unique customer experience and helped revitalize a key urban center when he opened his restaurant in New York City’s legendary Times Square. restaurants raised more than $8 million and since the program's inception.415 local residents. The event benefits local Ronald McDonald House Charities Chapters and other programs for children. Los Angeles. In 2008. opportunities for local suppliers. 300-seat restaurant occupies a historic landmark building and celebrates the theatrical tradition of the neighborhood.org. our U. D.6 million per day. Miami. For more information regarding the events or to find more breast cancer information and resources. • • Returned more than 45 cents of every dollar earned to the local economy.
They are key sources of support for the RMHC scholarship programs. a revolutionary college savings accelerator for customers. and state-of-the-art fossil preparation laboratories. Ronald McDonald House Charities creates. Cooper says. now in its eleventh year. and bestpreserved Tyrannosaurus rex fossil. We also fund National Merit Scholarships for children of employees and others within the McDonald’s System.475 additional jobs and nearly $2. Most were developed in collaboration with prominent organizations like the National Wildlife Federation. where the public can view the continuing restoration process. and provide scholarships and other education assistance for their employees." the world's largest.* We have sponsored two touring life-size replicas. “This is our way of helping our employees achieve their dreams. the Partnership for a Drug-Free America. Alabama owner/operators Max Cooper and Ed Levins provide college scholarship ”bonuses” for their restaurant crew members. local RMHC . host fundraisers for their local schools. We have created and make available educational resources to enrich elementary and secondary classroom studies. Over the years. the American School Counselor Association. thousands of crew members have received a total of approximately $500. Scholarships for Restaurant Crew Birmingham.8 billion in spending. They develop and co-sponsor local programs. most complete. McDonald’s is a contributing company in the Upromise network. McDonald’s is making it possible for the public to experience and learn about "Sue. a program for elementary schools. McDonald’s and McDonald’s owner/operators provide ongoing support for RMHC.000 in financial assistance. so that she would be available to researchers and the public. Camp Mickey D’s Texas owner/operator Sybel Pici reached out to a local school district to create Camp Mickey D’s—an innovative program that helps students learn about workplace values and the connection between school and work. Sybel and her husband and fellow owner/operator Bob also pay for tutoring for their restaurant student employees.• Created nearly 102. and supports programs that directly improve the health and well-being of children in the U. McDonald’s Corporation sponsors a National Employee Scholarship Program for qualifying restaurant employees. finds. and Scholastic magazine. and around the world. RMHC teams up with the American Academy of Pediatrics on a children’s immunization program—Immunize for Healthy Lives.” Crew member Mary Elligan shows Mickey D’s camper Maria Pena how to work the register McDonald’s Corporation Programs Working with The Field Museum in Chicago. The program is now sponsored by the Greater San Antonio McDonald’s Owner Association and now serves 38 high schools in 14 school districts.S. This program. We originally helped the Field Museum purchase Sue. Supporting Education. RMHC. brings local health care providers. To help parents keep their children healthy. McDonald’s owner/operators support education in many ways.
call (800) 627-7646. McDonald's Educational Resources McDonald's applauds your countless efforts in developing and inspiring our nation's youth. the Illinois Department of Natural Resources/Illinois State Museum. Classroom Materials SCIENCE AND ENVIRONMENT Colossal Fossil® Education Program (Grades 3 .5) Motivate your students to learn more about science with this inquiry-based study of Sue. These comprehensive materials teach students about discovery. the American School Counselor Association and the Society for Nutrition Education. and are available to help you and your students. which offer invaluable guidance in their areas of expertise. and the Elizabeth Morse Charitable Trust. Together. rex dinosaur fossil ever discovered. we talk with thousands of educators every year. As one of the largest employers of America's young people.Chapters. Our restaurants are committed to the communities we serve. what needs to be changed and what additional resources you can use. there are costs associated with purchasing of these items. Item #MCD83656. Our franchisees and restaurant managers have a rich tradition of forming valuable partnerships with their local schools. we can help ensure the success of our nation's students and future leaders. we share your commitment to educating children.what works. Most of these programs also reflect relationships we are privileged to share with renowned organizations such as the National Wildlife Federation. * Sue at The Field Museum is made possible by McDonald's Corporation. To help us select timely. To order. which was acquired by The Field Museum in Chicago. and you've helped us make significant contributions to the resources in this catalog. useful topics that complement your curriculum. Please note. the most complete T. and supporting teachers and schools is always a top priority. We're proud to work with these groups. Amazing Animals Bookmarks . Please let us know what you think of our materials -. excavation and preparation of this significant scientific specimen. visit theRMHC Web site. For information about RMHC programs. and local contact information. Additional support for Sue provided by Walt Disney World Resort. and prices are subject to change. grant procedures. with help from McDonald's and other partners. and McDonald’s restaurants together to educate parents on the importance of timely vaccinations for their children. We've created a variety of materials to enhance your classroom studies.
ecology and safety.12) Let the Tuskegee Airmen. Item #MCD63255E. Each show offers a fresh approach to communicating core messages about building good character. Developed through extensive research with school personnel.adolescent suicide. etc.5) Create inspirational lessons for your students with these programs hosted by Ronald McDonald.3) Introduce your students to eight Amazing Animals and their habitats with this pack of 40 colorful bookmarks developed with the National Wildlife Federation. Item #MCD52685B. workshops. McDonald's Materials NUTRITION McDonald's Nutrition Facts Brochure . SAFETY Plan to Get Out Alive Video (All Grades) Help your students develop a plan for home fire safety with the simulated drills and tips offered in this video. this model suicide prevention plan can be modified to meet the needs of your school community. reading. To order. To order. Tuskegee Airmen Documentary and Discussion Guide (Grades 6 . Item #FM. Copies of the program can also be printed from the CD-ROM and distributed at educator in-services. LITERACY AND STUDY PROGRAMS Ronald McDonald School Shows (Grades K . World War II's African-American bomber squadron. Ronald McDonald House Charities teamed up with the University of Illinois to create this interactive suicide prevention program that educators. counselors and administrators can use to help identify and intervene with at-risk students. call (800) 627-7646. To order.(Grades Pre-K . call (800) 627-7646. call (800) 627-7646.29. take your students on a flight through aviation history with this 23-minute video. call (800) 627-7646.13. SUICIDE PREVENTION Team Up to Save Lives CD-ROM (For Educators of Grades 7 and up) Prepare your school to address a major public health problem . Item #FM. Contact the Ronald McDonald coordinator at your local McDonald's restaurant to find out which shows are available in your area. To order.
according to the American Academy of Pediatrics (AAP). For comprehensive and current information on immunization. Ronald McDonald House and much more. an immunization education program in existence since 1993. Ronald McDonald House Charities (RMHC) has teamed up with the AAP and healthcare providers around the United States on Immunize for Healthy Lives. RMHC Teams Up for Immunization Education Vaccine-preventable diseases like measles. Item #TVT2032. By working with health care providers around the country. By age two. with contact information. To request copies. visit the American Academy of Pediatrics Web site. eating out. call (800) 627-7646. To order. RMHC is committed to the health and well-being of children and families. To help children and families. RONALD MCDONALD HOUSE CHARITIES® The Spirit of Helping Children Video (All Grades) Learn about Ronald McDonald House Charities (RMHC) in this video featuring the "Hearts and Hands" song and information about RMHC's mission and grantmaking. More information on the RMHC Immunize for Healthy Lives program is available from local RMHC Chapters. (800) 244-6227. and hepatitis B are still a threat to children. In addition to McDonald's. chicken pox. Upromise is a free service that allows you to earn college rewards on eligible purchases with participating companies.(All Grades) Contains useful. But health professionals recommend that vaccinations begin at infancy to protect against meningitis and pneumonia.V. on things like shopping. easy-to-read nutrition information for McDonald's standard USA menu items. when most parents take their schoolaged children to be immunized before returning to the classroom. buying groceries and more. August is the back-to-school vaccination time period. contact the McDonald's Customer Satisfaction Department. the Immunize for Healthy Lives initiative helps educate parents on the importance of timely immunizations so they can help their children stay healthy. including a 2005 immunization schedule. children can be protected from more than 11 preventable diseases. polio. filling the gas tank. McDonald's USA Can Help You Save For College McDonald's® is proud to be a Upromise® contributing company. The RMHC Web site has a searchable list of local Chapters. you can get college rewards at Exxon . So it’s important to immunize children on time.
upromise. Enter the code found on the back of the Arch Card.000 local restaurants.and Mobil locations. These companies and many more will contribute a portion of your eligible spending with them into your Upromise account. Join Upromise for free at www. . and with over 3.) 3. Best of all. grandchildren.400 grocery and drug store products.com for details. Here's how: 1. Millions of families have already joined Upromise to help save and pay for the college education of their children.com 2. Buy gift certificates at McDonald’s restaurants or by clicking here.com/mcdonalds You'll earn college savings each time you enter gift certificate codes.com/mcdonalds. and easy to start saving. it's free to join. over 550 online retailers. or the code found on the inside back cover of each book of gift certificates at www.upromise. The Sharper Image®. Bed Bath & Beyond®. and when you load and re-load your registered Arch Card.upromise. Purchase an Arch Card at any store and register it in your Upromise account atwww. friends and family.Legal: Terms and conditions apply for each company’s contributions. We have a long-standing record of industry leadership in environmental conservation. (You can enter the coupon numbers before you use the gift certificates themselves. Visit upromise. We also recognize that our long-term business goals will be better served if we help protect the natural and community resources that support and are affected by our activities. Our achievements have been recognized by such organizations as the Audubon Society. Environment With millions of customers around the world. McDonald’s recognizes the importance of conserving natural resources and the benefits they provide for current and future generations. Visit the Upromise website for details and to learn all the ways you can save. more than 8.
S. We know that managing our energy uses will conserve energy sources like natural gas and coal and help control greenhouse gas emissions that contribute to smog. Owner/operators and regional company organizations McDonald’s support local clean-up days with free meals for volunteers volunteers clean up forest preserve in and promotional incentives for participation. Our approach focuses strategically on our major environmental impacts and is guided by world-recognized independent experts. We were . acid rain. • Electrical Energy Conservation Electrical energy conservation is an important part of our environmental program. Nearly 80 percent of our packaging is made from renewable materials. Environmental Protection Agency. Keep America Beautiful. During the 1990's. • Solid Waste Management Since 1990. As good citizens and good neighbors. we significantly reduced electrical energy consumption in our restaurants by replacing conventional lighting with more energy-efficient fluorescent lighting. Recycling what we can. the National Recycling Coalition. and the U. We have learned to control solid wastes by: • • • Reducing the amount of materials we use initially. • • Elimination of more than 300 million pounds of packaging. environmental preservation at Illinois the restaurant level involves a broad range of initiatives to conserve natural resources and minimize pollution.Conservation International. McDonald's and our independent owner/operators help keep the local environment clean and attractive. DuPage County. and global warming. At McDonald’s. McDonald’s has worked with the Environmental Defense Fund to reduce waste in our operations. with more than 30 percent coming from post-consumer generated fiber. The many changes we have made have produced large savings in natural resources and reductions of waste. Using products made from recycled materials. Reduction in the weight of the 42 oz. Our Restaurants. polypropylene cup. saving nearly 350 tons of resin per year. • Our standard operating procedures include regular litter patrols of the areas around our restaurants. Our Neighborhoods.
C. carry out principles set forth in our global statement of our commitment to the environment. IL. Environmental Protection Agency's Green Lights program and a recipient of the agency's Green Lights Partner of the Year award. Ga. This will help measure progress toward our energy reduction goal. to test the feasibility of using various types of equipment that use no refrigerants associated with global warming. McDonald’s currently has three LEED certified restaurants in the U. in Denmark. Our Policies. Working with Conservation International..S. This is a significant strategic advance in our established responsible purchasing programs. McDonald's franchisee Gary Dodd opened the first LEED-certified green restaurant in Savannah. Establishing optimal equipment maintenance procedures and schedules. • Our Supply Chain. In 2005. LEED (Leadership in Energy and Environmental Design) is the nationally accepted benchmark for the design and operation of green buildings. and biodiversity. was LEEDcertified. soil. Installing additional energy-efficient equipment in new restaurants and during renovations. We also have a specific rainforest policy that commits us to purchasing only beef that was not raised on rainforest or recently cleared rainforest land. Testing innovative equipment that may produce further electrical energy savings through new technologies.S. We have opened the world's first HFC/HCFC/CFC-free restaurant. We are making progress toward this goal by: • • • • Providing owner/operators and restaurant managers with training. In 2007. Our goal is further signification reduction in electrical energy use. Taking our environmental commitment to the next level.an early member of the U. such as water. air. the Environmental Protection Agency again recognized our energy conservation efforts by naming us ENERGY STAR Partner of the Year. we are incorporating socially responsible practices into our supply chain. McDonald’s franchisee Ric Richards’ restaurant in Cary. McDonald's environmental programs and practices in the U.S. In 2008. Developing an electrical energy use tracking and benchmarking system for our company-operated restaurants. McDonald's opened its first company-owned LEED certified restaurant at 42nd Street and Ashland Avenue in Chicago. • • In 2010. and tools for assessing electrical energy consumption and savings potentials. . we have launched an initiative to integrate a broad range of socially responsible practices into our worldwide food supply chain. • Green Restaurants. N. advice. The guidelines that provide the framework for the initiative address key natural resources and impacts.
restaurant employees through • . efficiently. Our award-winning e-Learning strategy is bringing interactive computerized courses into our restaurants so employees can learn continuously. President. owner/operators.S. There are also career ladders within the System. visit the Values in Practice section of mcdonalds.S. In addition to promoting the well-being of our own employees. In the U. and corporate executives. and with customer service in mind. Jan Fields. McDonald’s awards 52 scholarships to U. business. mid-level managers. • • • Our structured Crew Development Program helps crew members learn to perform each task safely. More than 40% of the top 50 members of our worldwide management team started as crew members.S. People Our People Principles. we have developed guiding principlesfor improving this country’s healthcare system. we are committed to a supportive. McDonald's offers significant opportunities for career development. at their own pace. Training. At McDonald's.S. inclusive work environment where employees can grow and contribute their diverse skills. provides operations and accredited business management training for restaurant managers.com. including: • • • Chief Restaurant Officer Jeff Stratton. We have formal learning and development programs in place worldwide and for employees at every level. one of the best known corporate training centers in the U..S. We also provide support for college and university coursework. Classroom courses move outstanding employees from crew positions through the ranks of restaurant management and beyond. and perspectives.250 per year—for courses relevant to their present or future jobs in the company. and around the world. we know that people are our most valuable resource. We also support enrollment in approved business programs. Two of our three U.Worldwide Environment Program. For information about McDonald's worldwide environmental efforts. Every year. • • Qualifying employees may receive partial reimbursement for tuition—up to $5. Hamburger University. Opportunity. • Further Higher Education Support. even if not directly applicable to a particular job. energies. Countless people in all walks of life started on the path to success in one of our restaurants. Division presidents. U.
Eligibility .Fortune Among Top 50 Places for Hispanic Women to Work (2004) . serve their communities.Black Enterprise Top Company for Hispanics (2005) .000 scholarship. and approximately 61% are women. and work hard to deliver an outstanding experience for our customers. • Our diversity record has earned numerous awards and other significant recognition. They each receive a $2.500 scholarship.S. We are proud of our record of promoting diversity throughout the System. In addition. work. minority and women-owned businesses.S. 2004) . Awards Every academic year.Latina Style PUSH-Excel Corporate Partner Award (2003) .Rainbow PUSH Coalition Among 50 Best Companies for Minorities (2003) .Careers & the disabled • McDonald's USA National Employee Scholarship Program The McDonald's National Employee Scholarship Program is one of many examples of McDonald's commitment to employee development and recognition The program recognizes and rewards the accomplishments of McDonald's student-employees who excel in their studies. three student-employees judged to demonstrate the highest commitment to school. We purchase more than $4 billion a year in food and paper products from U.National Hispanic Corporate Council Among Top Employers for People with Disabilities (2001-2002. At McDonald's we live by our founder Ray Kroc's lesson: None of us is as good as all of us.ourNational Employee Scholarship Program.S. owner/operators and an even higher percentage of the people in training to become owner/operators are minorities and women. Scholarship winners may use their awards at any qualifying institution and for any field of study they choose. company workforce are members of a racial or ethnic minority. and community service will be selected and named "McScholars of the Year" and awarded a $5. More than 40% of our U.Hispanic Business Magazine Best Company for Minorities (2003-2004) (also ranked among best in 2000-2002) . • • More than 55% of our headquarters and U. including: • • • • • • One of the Best Companies for Diversity in America (2005-2007) . Diversity. the McDonald's National Employee Scholarship Program selects one outstanding student-employee applicant from each state and the District of Columbia.
S. An independent panel of educators reviews all complete applications and selects the winners. • Selection Scholarship winners are selected on the basis of their documented academic achievement. In addition. Must be a high school senior planning to attend an accredited institution OR returning college student who currently attends an accredited institution.S. McDonald's is also concerned and has been working with other stakeholders on an effective solution.S. its owner/operators.The McDonald's National Employee Scholarship Program recognizes the accomplishments of outstanding students in the course of their employment at McDonald's. affordability. improving quality of care. In addition. Must work a minimum of 15 hours per week. many private-sector companies and government policymakers have recognized the need to reform the U. and the National Retail Federation. and numerous . We believe that any resolution must recognize the many challenges that improving this country’s health care system poses—including access to care. McDonald's restaurant and have at least four months continuous employment at the time of application. community involvement. the American Benefits Council. McDonald's owner/operator at the time the scholarship awards are announced. You will be able to complete the scholarship application online if you go to the McDonald's crew website stationm. and education. McDonald's Health Care Principles Overview For years. Must be employed by McDonald's or a U. and job performance. Applications for 2010 Awards The 2010 scholarship program will open January 1 and close on March 1. ease of use. health care system. in which McDonald's. As an example. we were among the first organizations to adopt the Four Cornerstones initiatives for the Executive Order on Value Driven Health Care.com. which are developing plans to help resolve the health care challenges that this country faces. McDonald’s actively participates in associations and coalitions. All decisions are final. such as the HR Policy Association. The following eligibility requirements apply for this program: • • • Must be currently employed at a U. any solution must support the current voluntary market-based system.
. There must be an emphasis on preventive health care. wellness programs. Animal Welfare. Our efforts include a supplier social accountability program. Onsite audits to ensure appropriate animal handling practices in our suppliers' slaughterhouse facilities. McDonald’s wants to participate in developing a solution. Rising costs are severely stressing both employer-sponsored and government health care programs. Laying Hen Guidelines for our U. not piecemeal by states. Other local market-specific standards. we work continuously with our suppliers to promote socially responsible practices in our supply chain.other companies offer health care benefits for their employees. In addition. We are eager to continue to share our substantial experience in providing health care benefits to a large and diverse workforce. improved treatment outcomes. and the lack of education available on how to use the system appropriately. the complexity in using and understanding the health care system. the high cost of health care. and human rights of workers. and any solution must create tools to educate individuals on areas such as wellness. Guiding Principles • McDonald’s recognizes that this country’s health care system needs improvement on many fronts. the lack of generally accepted quality standards. Greater cost-effectiveness must be part of the solution. • • • Responsible Purchasing At McDonald's. counties. and other local jurisdictions. Health care “fixes” should be addressed at the federal level. An Animal Welfare Council to advise us on humane animal handling practices. These include inadequate and inconsistent access to health care. egg suppliers. we must recognize that all individuals also have a responsibility. State and local legislation will simply expand upon the existing patchwork of inconsistent benefits and complex administrative requirements. municipalities. and effective use of health care. and simplifying program administration. McDonald's is an industry leader in animal welfare. We are a socially responsible company and committed to collaborating on solutions to major social and economic issues. Our program includes: • • • • • Global Animal Welfare Guiding Principles for McDonald's programs worldwide. safety. prevention. greater transparency on prices and quality.S. which protects the health.
our policy indicates that voluntary compliance will be a favorable factor in future purchasing decisions. we have been out in front with high standards and effective compliance programs. we have developed a trial reporting system to track antibiotics use and are now testing it with our direct relationship poultry suppliers in the U. antibiotics that belong to classes of compounds approved for use in human medicine. Most of our direct relationship poultry suppliers are in North America and Europe. A relentless focus on safety is integrated into every aspect of our operations. • • • • We have food quality and safety standards in place in every critical area of our supply chain. For many years. Food Safety McDonald's leads the industry in food safety.S. HACCP (Hazard Analysis Critical Control Point) is a cornerstone of our approach. McDonald’s chief Antibiotics. • Direct relationship poultry suppliers must annually certify their compliance with the policy." Dr. At McDonald's. Safety.. Direct relationship suppliers are those that have facilities dedicated to producing products for the McDonald’s System and control the stages of production where antibiotics are most likely to be used. HACCP is a globally-accepted method of preventing food-borne illinesses and has been adopted by the U. We require our food suppliers to have HACCP systems. for the purpose of growth promotion. McDonald's has taken a lead in preserving the animal welfare effectiveness of antibiotics that are important to human and animal advisor. To encourage broader adherence to the requirements. audits a health. and I have never seen such a transformation.S. . Our standards meet or exceed federal requirements. Temple Grandin Prominent Animal Behavior Expert Dr. Department of Agriculture as the basis for its regulations. nothing is more important than the safety of our customers and our employees. I have been in this business for more than 25 years. Our global antibiotics policy requires direct relationship poultry suppliers to: • Refrain from using. Our Global Policy for Antibiotic Use in Food supplier facility Animals helps address the problem of bacterial resistance by establishing standards for antibiotics use that our applicable to our "direct relationship" poultry suppliers. from farm to counter. Follow specific Guiding Principles for Sustainable Use. Food safety has been integrated into food handling procedures in our restaurants. Temple Grandin."McDonald's should be given credit for bringing about improvements in animal welfare in the entire beef industry. As a next step..
This reflects the high priority we place on toy safety and our relationships with suppliers who share our commitment and have the capabilities to fulfill it. tests toys for potential suffocation hazards. • “Virtual Child. Building on the Code. McDonald’s has long promoted socially responsible practices in our supply chain.” developed by RAM Consulting for McDonald’s. strategic . We hold our suppliers accountable for ensuring adherence to our standards in their facilities and in subcontractor facilities that produce products for us. Shared with CPSC to help improve their toy safety testing. • • Our suppliers use state-of-the-art technology to analyze the safety of toys and other promotional items developed for the McDonald's System. we shared state-of-the-art equipment and technology with the U. We are currently exercising leadership in several collaborations to improve conditions for farm workers in the Florida tomato industry. including independent testing laboratories. Supplier Social Accountability. Our commitment to safety goes beyond our own PlayPlaces. to verify adherence.Staff conduct validations. For example. Consumer Product Safety Commission to help them better evaluate toy safety and prevent injuries to children.S. Toy Safety McDonald's toy safety record far exceeds the record for the toy industry overall. We hold our suppliers to these same high standards. Sustainable Supply Initiative. we have worked with our suppliers and other stakeholders on several initiatives to extend social accountability throughout our supply chain. With RAM Consulting. We have now embarked on a more comprehensive. CPSC awarded us the prestigious Chairman's Commendation for our contributions to product safety. Play Place Safety McDonald's is committed to offering our customers the safest play environment and the most play value possible. during. we supported the development of a National Playground Safety Institute training curriculum for people who operate playgrounds with soft contained equipment. As a responsible citizen in every community where we do business. Our Code of Conduct for Suppliers describes how we expect our suppliers to treat their employees. Toys are tested before. We work with the world's leading playground equipment manufacturers and installers and with renowned safety consultants to ensure that the play equipment at our restaurants meets our strict specifications. Our Happy Meal toy designs undergo extensive reviews and testing by a team of safety experts. McDonald's is committed to high standards of behavior on issues of corporate responsibility. on an ongoing basis. and after production.
The effort has produced significant results.S. we have initiated two new programs. we have all agreed to specific plans to work together to address wages and working conditions for the farm workers who pick Florida tomatoes. Building on this commitment. healthful working conditions in our suppliers' facilities worldwide. including the Coalition of Immokalee Workers (CIW). safe. Our suppliers will establish a way for the additional penny per pound to be paid to the farm workers. Within this framework. will pay an additional penny per pound for Florida round tomatoes supplied to its U.S. Collaboration to Improve Conditions for Florida Tomato Workers At McDonald's. CIW and our produce suppliers will work together toward developing and implementing a credible third-party verification system—one that could be expanded to include other willing members of the foodservice and retail food industry that buy Florida tomatoes. we joined with CIW and our produce suppliers to announce another major step forward toward the goals we all share. Our long-standing Code of Conduct for Suppliers establishes expectations for fair.approach. and target outcomes. In addition. and resolving disputes. principles. We have developed a sustainable supply vision. restaurants. we have been intensively engaged in improving working conditions for Florida's tomato workers. Visit the Values in Practice section of mcdonalds. Under this agreement: McDonald’s USA. • • • • Former U. It incorporates existing initiatives like our animal welfare program and our supplier social accountability program and also new environmental guidelines and performance measures. The increase will begin with the 2007 growing season. 2007. various produce associations. The other seeks to promote good environmental practices in our land-based agricultural supply chain. One focuses on responsible management and marine conservation in our fish supply chain. CIW and our produce suppliers will work together to develop a new code of conduct for Florida tomato growers. President and founder of the Carter Center. This has been a collaborative effort involving our direct suppliers. Jimmy Carter. investigating worker complaints. we are committed to extending socially responsible practices throughout our supply chain. New Agreement with CIW and McDonald's Produce Suppliers On April 9. We continuously work with our suppliers to ensure compliance and continuous improvement. through its produce suppliers. CIW and our produce suppliers will also collaborate on increasing farm worker participation in monitoring supplier compliance. has hailed the . Specifically. growers. This code of conduct will build on the tomato grower standards we and our suppliers established in 2006.com for more information about our sustainable supply programs. and advocacy groups.
“ Previous Leadership Initiatives to Improve Conditions for Florida Tomato Workers The new agreement is the latest step in a series of collaborative initiatives to improve working and living conditions for Florida's tomato workers. It is McDonald's recommendation that non-dedicated facilities achieve these same guidelines. • In 2005. Florida tomato growers that supply the McDonald's System must hire workers as employees. We know that more can be done. Under our grower standards. rather than day laborers. We actively support this program and have committed to purchasing tomatoes from suppliers that participate in it. McDonald's will purchase eggs from producers that support our corporate guidelines related to animal welfare and the UEP Scientific Advisory Committee's recommendations. affordable housing (where available) and local health screening and counseling services. as it violates our Animal Welfare Guiding Principles. Compliance with these standards must be verified by reputable third parties. Summary of McDonald's USA Laying Hens Guidelines In support of McDonald's Animal Welfare Guiding Principles and recommendations issued by the Scientific Advisory Committee on Animal Welfare for United Egg Producers (UEP). we and our suppliers instituted industry-leading grower standards that go beyond the SAFE standards. and ensure they have access to safe. we hope these initiatives and the new plans announced will drive change throughout the industry.5% of Florida's tomatoes annually. This enables simultaneous feeding for all birds.agreement as "a welcome example of positive industry leadership" and a demonstration of both "McDonald's leadership in social responsibility and CIW's importance as a voice for farm worker rights. McDonald's does not support the withdrawal of food or water to facilitate molting. SAFE establishes standards and an external verification program to ensure that participating growers provide lawful wages and workplace safety protections and that workers are aware of their rights. In 2006. McDonald's does not support improperly controlled and/or improperly managed "beak . as in all our corporate social responsibility efforts. provide them with opportunities to raise issues and offer suggestions. and we are deeply committed to collaboration and continuous improvement in this area. McDonald's has established guidelines that meet or exceed industry standards to ensure the proper treatment of laying hens used for egg production. cages should be specified and designed to target a minimum of 72 square inches of space and a minimum of 4 inches of feeder space with minor allowances for variation due to construction. • Although we purchase only 1. the Florida Fruit and Vegetables Association (FFVA) launched industrywide worker protections—the Socially Accountable Farm Employers (SAFE) program. Specifically.
S.S. which adheres to McDonald’s strict Laying Hen standards. including cage-free housing.S. The study will look at the sustainability impacts of different laying hen housing environments. The goal of the study is to understand the viability of alternate housing systems in the U. McDonald’s USA teamed with leading animal welfare scientists.." as it violates our Animal Welfare Guiding Principles. American Veterinary Medical Association (AVMA). on animal health and well-being. Along with McDonald’s. USDA’s Agricultural Research Service (ARS). Cargill Incorporated. and worker welfare. taking into account their independent company values and business needs.. The eggs produced during this study are expected to be used in McDonald’s U. restaurants. Non-Government Organizations (NGOs) and egg suppliers in a commercial-scale study of housing alternatives for egg-laying hens in the U. . including cage-free and “enriched housing.” which includes nests and perches. Additionally. and the Center for Food Integrity (CFI). safe and affordable food. the multi-stakeholder Coalition advising the study includes the American Humane Association (AHA). the environment. provided they meet stringent food safety and quality standards. in 2009. academics. The research is being led by Michigan State University (MSU) and the University of California. Another goal is to provide scientific-based research that will assist McDonald’s and other companies in making more informed decisions on sustainable egg purchases.trimming..S. as well as the housing environments used by McDonald’s current supply system in the U. Davis (UC Davis).
Financial Aspects .
3 9 0.35 M Top competitors performance comparison MCD BKC WEN Analyst Recommendation Last Change EPS (Mean) Revenue Market Capitalization Buy 70.44 ARBYS GROUP INC 0.84 1.56 5.65 B Hold 21.39 4.36 M WEN WENDYS 5.44 0.356 2.3 1 21.59 1.54 B 2.11 2.RATIO ANALYSIS Symbol Company Name Last Change % Volume Change MCD MCDONALDS CORP BURGER KING HLDGS INC 70.31 0.41 B .53 M BKC 0.39 0.166 3.59 2.436 22.11 0.06 4.58 B 2.39 0.89 B Hold 5.74 B 75.
46% .03 4.61% 7.19 13.89 7.6014 MCD BKC WEN Price/Earnings (TTM) Price/Cash Flow Price/Sales (TTM) Price/Book Last Dividend Book Value EPS (TTM) Revenue EBIDTA Operating Margin Profit Margin Gross Profit Margin 15.01 3.17 22.79 49.80% 12.39 16.08582 -8.00 -12.89% 32.16 0.00 8.01 2.82% 20.01 B 28. Year Ago 5 Year Annual EPS Growth 11.97128 -17.91 — 5.04 4.02 1.72 9.61 0.70 3.53 B 440.05 M 5.EPS Change vs.58 B 298.34 0.74 B 8.01% 59.83 1.3784 48.20 M 13.93% 469.88 13.14% 18.4573 18.70% 0.48 2.
24 Total Debt to Capital (MRQ) 42.98 ROE ROA 33.82 .00 2.46 0.81 72.19% 16.17% 22.01 1.34% 4.14 1.83 39.13% — 0.02% 7.89 0.97% 49.10 M 1.Dividend Yield Payout Ratio Annual Dividend (TTM) Dividend Yield 5 Year Average Net Income EPS (TTM) Revenue PEG Quick Ratio (MRQ) Current Ratio (MRQ) LT Debt to Equity Ratio (MRQ) 2.86 47.95 5.48% 2.80% 0.25 200.85 64.58 B 1.89 — — 1.48% 20.62% 1.21 1.70 20.68 8.53 B 1.88 — 2.55 B 4.14 75.01% 3.74 B 1.16 16.06 M 0.
83 0.16 12.77 77.709.98 2.86667 Inventory Turnover 114.94 65.72 73.4888 7 100.100.38 0.5194 8 72.515.ROIC (Return on Invested Capital) Asset Turnover Asset per Employee 20.86 0.47 .
SWOT Analysis .
5.4009 million).McDonalds Corporation Strengths • McDonalds has built up huge brand equity. It has located itself in major airports. 2007 (11.6% sales growth Good innovation and product development. which further promote McDonalds. It is recognized as a socially responsible and community oriented firm. Of these 31. cities. tourist locations. highways. It uses economies of scale for reducing the cost.000 restaurants are situated in the US. It is the No. 1 fast-food company by sales. with more than 31.000 restaurants serving burgers and fries in almost 120 countries. It takes food safety extremely cautiously. as its huge expansion diversifies the overall risk involved with the economic performance.000 restaurants at least14. Chicken McNuggets. It has an efficient food preparation style that follows the process in a systematic way. reasonable value and great service Large amounts of investment have gone into supporting its franchise network. It has a firm real estate portfolio. It adas to the cultural differences regarding the region where the restaurant is set up. It was the first to provide the customers about nutrition facts. They own an active children’s charity by the name‘The Ronald McDonald House’.000 restaurants serving in 120 countries. theme parks. It has branded menu items i-e Big Mac. It earns revenue by fast food sales as well as a property investor and a franchiser of restaurants. It is a global brand that owns 31. 75% of stores are franchises Loyal staff and strong management team. It takes steps in adjusting the Ingredients and product offerings in order to comply with the upgraded health standards deemed necessary by the USDA. Sales. It has a strong global presence and is considered as a market leader in both the domestic as well as the international markets. The McDonalds brand offers consumers choice. Its recognized as one of the world’s most recognized logos. It continually innovates to retain customers in the business. • • • • • • • • • • • • • • • • • • • .
It could identify likely customers (based on modelling and profiles of shoppers) and prevent brand switching Strengthen its value proposition and offering. to encourage customers who visit coffee shops into McDonalds. High employee turn-over. It can upscale some of its restaurant settings at luxurious locations to attract more customers. It can adapt to the needs of the societies and undergo an innovative product line. reducing the impact on the environment and community linkages. Also installing children’s play-parks and its focus on educating consumers about health. It has yet to accomplish going on the trend of organic food. It can provide optional items that are regarded to be the basis of allergy for some. Continued focus on corporate social responsibility. • • • • • • • • • . The new “formats”. International expansion into emerging markets of China and India. Product line heavily focused towards hot food and burgers. It can research ways to use ‘green’ energy and packaging which will work as a part of their promotional effort as well as fulfill their social responsibility. McCafe. Opportunities • • • • Joint ventures with retailers (e.by innovation within healthier lifestyle foods. having Wifi internet links should help in attracting segments. Use of CRM.Weaknesses • • • • • • • • Core product line out of line with the trend towards healthier lifestyles for adults and children. Respond to social changes . Its move into hot baguettes and healthier snacks (fruit) has supported its new positioning. Price competition with the competitors resulting in low revenue. Consolidation of retailers likely. fitness. Lack of innovative products.g. database marketing to more accurately market to its consumer target groups. so better locations for franchisees. It can create new product offerings. It uses advertising that mostly targets children. use mobile text messaging to offer services that appeal to consumers. supermarkets). Seasonal Quality issues across the franchise network.
consumer groups encouraging balanced meals. The expansion has made the firm vulnerable to the slow economies of the other countries. Wendy’s. 5 a day fruit and vegetables.g. More restaurants that are increasing their food offering and declining the price. The recession negatively impacts the holding position of the firm regarding its revenue streams. .Government. even though they are quite diversified Foreign currency fluctuations are regarded to be a major problem as it uses standard pricing for its food items. Recession or down turn in economy may affect the retailer sales. Taco Bell. Pressure groups . usually with addictive additives. M&S. as household budgets tighten reducing spend and number of visitors.environmental. Focus by consumers on nutrition and healthier lifestyles. Heavy investments on promotional campaigns which decrease the gaining of market share. KFC. Some parents criticize the firm’s ‘cradle to grave’ marketing strategy that focuses on kids. Sued various times for unhealthy food.• It can slow down the level of expansion in order to increase the profitability of the organization. who later on take it as a trend to their adulthood. Competitive pressures on the high street as new entrants offering value and greater product ranges and healthier lifestyles products. Threats • • • • • • • • • • • • • Social changes . supermarkets. subway. Starbucks. E. Health issues regarding the fast food chain. Emergence of major fast food competitors: Burger King.
FIVE FORCES MODEL .
growing concern to achieve a healthier society has led McDonald’s. Competitors of the industry also try to compete with similar products. Franchise options also make is easier to enter the market. and Happy Meals. Overall. however they are currently the leader of the industry in market capitalization with a cap of $39. Access for distribution is crucial in the restaurant industry because if the customer can’t see you or access you easily it’s possible that they won’t go out of there way to eat there. The industry is very competitive because firms are always attempting to steal customers from each other. leading to price wars. Threat of Substitute Products: McDonald’s is known for their famous French Fries. McDonald’s has a number of competitors.31 billion. Therefore. The market growth is rising because of the convenience factor and busy consumers not having enough time to cook a meal. initially the only cost to enter the market is the starting capital required to open a restaurant. therefore the industry has to rely heavily on their brand image and quality of products. it can cost upwards of millions of dollars for all the equipment. in order to conform to a more concerned society. but most consumers are drawn to the classics for which the establishment is known for.Rivalry among Firms: Currently in the fast food industry. The food-service industry doesn’t have any exit barriers. in response to competitors such as Wendy’s 99 cent menu. The restaurant industry is also growing rapidly due to opportunities in other global markets. at virtually only the cost incurred. However. Threat of New Entrants: The threat of new entrants in the fast food industry is high because there are no legal barriers which would keep them from entering the industry. licensing. This costly barrier is the most probable reason that people do not enter this business. there is intense competition for growth in the market. therefore. the industry has tried various product differentiations in order to accumulate greater market share. McDonald’s created a Dollar Value Menu. for example Subway has built their strategic plan around franchise options. In order for a firm to enjoy success in the industry. to make extensive menu changes. they must spend a large amount of capital on advertising and marketing. as well as other competitors. McDonald’s is doing more and more to . which allow firms to easily leave the industry if they’re not successful. However. Big Macs. The major barriers in which a firm faces in the industry are the economies of scale and the access of the distribution. they actually have a competitive advantage because they have already entered many different countries and are succeeding in these countries. and the property. Each firm within the food-service industry is susceptible to losing customers because there are relatively no switching costs for consumers. In McDonald’s case.
due to the fact there are relatively no switching costs.” The industry must try to maintain a hold on the market by conforming to a changing society as well as maintaining high quality. McDonald’s. The suppliers that sell to McDonald’s have a strong voice also because of the fact that the switching cost for McDonald’s as a whole would be so tremendous that they would not want to make that change. broadening the array of its customer base while offering it’s existing customer base with healthier menu options. This problem raised the cost of beef in Europe tremendously but the cost actually went up around the world because of the beef shortage in Europe. however. . In addition. has developed “light” and healthy menu items in order to give 10 customers additional eating options and in doing so. McDonald’s has had to paid legal fees in order to defend itself in this type of litigation. The courts ruled against this issue in McDonald’s favor. In this case it can be argued that the suppliers of beef have a strong voice as well. they have adopted the slogan. similarly following the litigation process of cigarettes and tobacco companies. For this reason. Nutritionist and other leading experts have been hired to join the McDonald’s team in order to ensure that the correct items are added to the menu. McDonald’s is flexible in their menu to conform to the changing tastes of society. “the customer is always right. making this a remote future risk factor. because of the outbreak of the mad cow disease. For example. Bargaining Power of Suppliers: It can be said that McDonald’s has a large bargaining power because of the fact that they spend 4. has attempted to gain market capitalization. the chicken nuggets that we all grew up on are now 100% white meat. McDonald’s corporation has faced previous law suits on being held accountable for obesity. so any problems or disputes would be worked out with there suppliers. but they always serve with a smile! Bargaining Power of Customers: McDonald’s. in it’s effort to be a more socially responsible corporate citizen by supporting a healthier society.852 billion dollars in food and paper in 2004. One of the industry’s most recent concerns is that of creating a healthier society and prevention of obesity.compete with health focused restaurants like Subway. Although in recent years the industry has had a small problem with beef. while still keeping and improving the classics that they are famous for. even with this incremental cost they are still achieving a significant rate of earnings growth. by keeping the customer satisfied. This can be argued that the companies that McDonald’s buys from could be largely dependent on McDonald’s business. and the industry.
with the competition and the number of buyers in the market place. Key Success Factors: McDonald’s key success factors are cost efficiency.Also. and reducing other expenses. . This allowed McDonald’s to address the issues of slumping sales they experienced in the past and focus their attention on their operations. Burger King and a few others that they may be able to salvage there losses. McDonald’s introduced a new revitalization plan aimed to help market itself to today’s health conscious consumers and to improve its financial position through discipline. they sold Donatos Pizzeria. if McDonald’s were to change manufacturers the supplier could easily change there manufacturing to note book paper by just re-adjusting the machines but it would come at a great cost. Finally. losing a large company like McDonald’s could destroy any supplier but there are other prospects out there to buy that product like Wendy’s. In 2003. They have paid down their own debt. McDonald’s has introduced new products like salads and chicken options that have been well received by the more health conscience consumers. product development. and promotions. This resulted in an even more enjoyable customer experience. McDonald’s forecasts a 3% to 5% growth of its total sales and revenues annually. reduced capital expenditures by starting less new restaurants. Jack in the Box. McDonald’s has begun to look like the world’s food service industry leader once again. With the limited success of this strategy. due to the costly operations of running the company. As a result. Because of the success of its newly implemented revitalization plan. We also expect McDonald’s to benefit from this new plan and experience a steady capitalization growth. McDonald’s had been attempting to grow primarily by adding new restaurants. McDonald’s has practiced impressive levels of financial discipline lately. McDonald’s was able to put more money in the pockets of its shareholders in the form of dividends. With the new campaign. To ensure McDonald’s remained consistent with these factors. the McDonald’s managers appeared they were more interested in expanding the empire than generating shareholder wealth. marketing. a company they owned for the past four and half years. McDonald’s also streamlined and improved techniques its training and operations systems. As for the paper goods that McDonald’s buy from the manufacturers. In previous years.
Global Operations .
driving customers to demand the same of other restaurants and institutions. McDonald's have recently taken to partnering up with Sinopec. whilst the cheapest country is Malaysia. the "Golden Arches Theory of Conflict Prevention" is not strictly true. Exceptions are the 1989 United States invasion of Panama. and Hong Kong in particular. It has a total of more than 31. to open a McDonald's restaurant and McCafé on its premises. Norway has the most expensive Big Mac in the world as of July 2008. followed by countries without any. the Louvre. When it opened in Hong Kong in 1975. NATO's bombing of Serbia in 1999. Thomas Friedman once said that no country with a McDonald's had gone to war with another. McDonald's reached a deal with the French fine arts museum.Global operations: McDonald's has become emblematic of globalization. by their underground entrance. However. The Economist magazine uses the "Big Mac Index": the comparison of a Big Mac's cost in various world currencies can be used to informally judge these currencies' purchasing power parity.000 outlets worldwide. and the 2008 South Ossetia War. Scandinavian countries lead the Big Mac Index with four of the five most expensive Big Mac's. This is a listing of countries with McDonald's franchises. as it begins to take advantage of China's growing use of personal vehicles by opening numerous drive-thru restaurants. the 2006 Lebanon War. A group of anthropologists in a study entitled Golden Arches East looked at the impact McDonald's had on East Asia. in November 2009. China's second largest oil company. . in the People's Republic of China. McDonald's is the largest chain of fast food restaurants in the world. Some observers have suggested that the company should be given credit for increasing the standard of service in markets that it enters. sometimes referred to as the "McDonaldization" of society. McDonald's was the first restaurant to consistently offer clean restrooms.
With the opening of an outlet in the Sydney suburb ofYagoona the 1971 company established a presence on the third new continent in the span of six months.381 (source: May 2009) 1. Virgin Islands Costa Rica Guam May 15 June 1 1940 1967 November First McDonald's in Latin America and in 1967 10 the Caribbean. outlets in November 1971 the New Länder(former GDR) opened in 22 1991. 1972 1972 10 Germany 1. Hong Kong Island. June 6 1974 August 16 1974 1. 220 (source: 2009) 37 (source: 2009) August 21 1971 The first McDonald's in Europe. San Bernardino. Causeway Bay. source: 2006) 17 England October 12 1974 First outlet in the United Kingdom.598 (source: 2004) the first time. British Columbia.Countries with McDonalds store: Edition of location 01 02 03 04 05 06 Country Date Year Comments At The Airdrome building. 07 08 09 Japan Netherlands Panama July 20 With the opening of an outlet in Tokyo. 784 company owned. 465 franchised. 18 Hong Kong January 8 First outlet opened in Paterson 200 (source:2009) 1975 Street. September 1970 4 December 1970 28 June 10 1971 First outlet in Oceania and first outlet outside North America. California.S. Outlet opens in Richmond.400 (source: March 2007) United States Canada Puerto Rico U. the 1971 company established a presence in Asia for 3. 177 (source: 2004)  .343 (source: 2009) 11 Australia May 30 701 (source: 2004) 12 13 14 15 16 France El Salvador Sweden Guatemala Netherlands Antilles June 30 July 20 857 (source: 2004) 11 (source: Sept 2009) 230 (source: December 2009) 38 (source: 2007) October 23 1973 First outlet in Scandinavia.250 (United Kingdom wide. # of currently operating outlets 13. September 1971 1 First outlet in West Germany.
465 franchised. 139 (source: 2004) 68 (source: December 2009) Some consider this the first outlet in China 338 (source: 2004) PR due to political reasons. source: 2006) 93 (source: 2004) 88 (source: 2004) 26 27 28 29 30 31 32 33 Singapore Spain Denmark Philippines Malaysia Norway Taiwan Andorra October 20 1979 At Liat Towers.250 (United Kingdom wide. Orchard Road. 121 (source: 2004) 276 (source: 2004) 83 (source: December 2009) 235 (source: 2004) McDonald's available in the first Muslim country. 3 (source: 2009) 1. March 10 April 15 1981 1981 September 1981 27 April 29 1982 November 1983 18 January 28 1984 June 29 1984 34 Wales December 1984 3 December 1984 14 February 23 April 4 July 17 1985 1985 1985 35 36 37 38 39 40 41 42 43 44 Finland Thailand Aruba Luxembourg Venezuela Italy Mexico Cuba Turkey Argentina 7 (source: 2009) 140 (source: 2009) 290 (source: 2004) 367 (source***: 2009) Available only in Guantanamo Bay and inaccessible to Cuban citizens. 784 company owned.19 20 21 22 23 24 Bahamas New Zealand Switzerland Ireland Austria Belgium August 4 June 7 1975 1976 149 (source: 2004) 119 (source: 2004) 79 (source: February 2009) 148 (source: 2004) 64 (source: 2004) October 20 1976 May 9 July 21 March 21 February 13 1977 1977 1978 25 Brazil With the opening of an outlet in Rio de Janeiro the company established a presence 1979 560 (source: 2009) on the continent of South America for the first time. 1 (source: 2009) 133 (source: 2004) 187 (source: 2009) August 31 1985 October 15 1985 October 29 1985 April 24 1986 October 24 1986 November 1986 24 .
250 (United Kingdom wide. November 1990 19 February 23 May 23 1991 1991 55 With a opening of a outlet inBelfast. source: 2006) 46 Scotland November 1987 23 March 24 March 29 April 13 1988 First outlet in Serbia. 465 franchised. 784 company owned. 465 franchised. source: 2006) 48 (source: 2004) January 31 1990 First outlet in Russia. 1988 1988 47 48 49 50 51 52 53 54 Yugoslavia South Korea Hungary Soviet Union/ Russia China Chile Indonesia Portugal 243 (source: 2004) 76 (source: 2004) 235 (source: 2009) 660 (December 2007) 69 (source: 2009) 75 (source: 2004) 91 (source: 2004) 1. 1993 3 see #Former locations October 14 1993 December 1993 2 . 1992 1992 56 57 58 59 60 61 62 63 Greece Uruguay Martinique Czechoslovakia Guadeloupe Poland Monaco Brunei 225 (source: 2009) November 1992 20 December 1992 12 With the opening of an outlet December in Casablanca the company had expanded 1992 18 into Africa and had a presence on all continents except Antarctica. October 8 1990 First outlet in Shenzhen.45 Macau April 11 1987 1.250 (United Kingdom wide. Northern Ireland October 14 1991 McDonald's was now available UK-wide. March 18 1993 0 (source: 2009) 131 (source: December 2007) 16 (source: 2009) 1 (source: 2004) 64 Morocco 65 66 67 68 Northern Marianas Iceland Israel Slovenia September Closed down in October 2009. November 1991 12 November 1991 18 December 1991 16 March 20 April 8 June 17 1992 First outlet in Czech Republic. 784 company owned.
1 in Gozo) (source: 2009) 78 (source: November 2009) 10 (source: 2004) 129 (source: 2009) 7 (source: 2003) October 14 1995 November 1995 11 December 1995 13 December 1995 14 December 1995 15 February 2 1996 March 2 May 1 May 3 May 31 June 12 1996 1996 1996 1996 1996 16 (source: 2009) 2 (source: 2001) 1 (source: 2009) 6 (source: 2002) 13 (source: 2004) 46 (source: 2007) 22 (source: 2009) October 13 1996 October 18 1996 November 1996 7 November 1996 6 (source: 2009) .69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 Saudi Arabia Botswana Kuwait New Caledonia Oman Egypt Bulgaria Bahrain Latvia United Arab Emirates Estonia Romania Malta Colombia Slovakia South Africa Qatar Honduras Saint Martin Croatia Western Samoa Fiji Islands Liechtenstein Lithuania Cyprus India Peru Jordan Paraguay December 1993 8 May 13 June 15 July 26 July 30 1994 1994 1994 1994 60 (source: 2009) 37 (source: 2007) 9 (December 2009) 50 (source 2003) 19 (source: 2005) 8 (source: 2004) October 20 1994 December 1994 10 December 1994 15 December 1994 First outlet in the Baltics. 15 December 1994 21 April 29 June 16 July 7 July 14 1995 1995 1995 1995 7 (source: December 2009) 50 (source: 2009) 8 (7 in Malta.
10 The company claimed this as McDonald's December 1996 "100th country" although this calculation 10 included many non-sovereign territories. 2006 One location in Baghdad. but there is a knockoff calledMaDonal. 1 (source: 2006) August 10 2006 . May 28 1997 57 (source: 2007) 100 101 102 103 104 105 106 107 108 Belarus Ukraine Yemen Republic of Macedonia Ecuador Réunion Isle of Man Suriname Moldova August 22 1997 September 1997 6 October 9 1997 10 (source: 2007) December 1997 14 December 1997 15 December 1997 18 April 30 1998 McDonald's outlets ceased operation during the Nicaraguan civil war and re1998 established a presence in 1998 after an absence of two decades. 109 Nicaragua July 11 110 111 112 113 114 115 116 117 118 119 120 121 122 123 Lebanon Pakistan Sri Lanka Georgia San Marino Gibraltar Azerbaijan French Guiana American Samoa Kazakhstan Mayotte Montenegro Algeria Iraq September 1998 18 September 1998 19 October 16 1998 February 5 1999 July 6 1999 25 (source: 2005) August 13 1999 November 1999 6 February 22 2000 September 2000 29 January 1 May 1 June 1 June 1 2003 2003 2004 First outlet in Podgorica.21 98 99 Dominican Republic French Polynesia November 1996 30 December 1996 First outlet in Tahiti.
closed due to slow sales and cost (1997-2003) Trinidad and Tobago  (1985-1995) Bermuda  . Northern Cyprus. leaving only the golden bases and the name was changed to Wimpy's Hamburgers. Saint Vincent and the Grenadines and Trinidad and Tobago In addition there is a McDonald's restaurant in the Guantanamo Bay Naval Base.Closed down by Icelandic affiliate Lyst ehf citing prohibitive costs of importing foreign foodstuffs as required by McDonald's. It was the first attempt to open a McDonalds in Canada and failed.early 70's) Canada A McDonalds outlet opened for a short period in Toronto. Jamaica. Vatican City and Kosovo . Grenada. 5. 2. Haiti. at the corner of Yonge Street and Cummer Avenue. South Ossetia.Saint Barthélemy. land leased from Cuba that hosts a US Naval facility. Bolivia. S aint Kitts and Nevis.government influence (1995-2005) Jamaica  (1993-2009) Iceland  .six months) Barbados  . 6. The tops of the golden arches that surrounded the restaurant were sawed off. It failed and was sold. Guyana. Dominica. and derived that the following countries don't have McDonald's locations. Barbados. Countries without McDonald's locations: Ask Yahoo! compared the United States Department of State's list of independent states to a list of franchises on the McDonald's website. 8.124 Bosnia and Herzegovina October 9 2009 First outlet in Sarajevo. (late 60's . Iceland. NORTH AMERICA (1 out of 23 countries): Greenland EUROPE (7 out of 50 countries): Albania. Armenia. 4.two days) Iran (1996 . 7. Saint Lucia. Former locations: 1. Its former McDonald's outlets will be re-branded as its own chain of Metro restaurants offering similar service and menus with domestically produced ingredients. Belize. (1994 . LATIN AMERICA AND THE CARIBBEAN (15 out of 35 countries): Antigua and Barbuda. Bermuda.slow sales (1997-2002) Bolivia  . 3.
Uganda. Mongolia. Gambia. Seychelles. Burma (also known Myanmar). Malawi. Gabon. Ghana. Togo. Nepal. Djibouti. Tuvalu and Vanuatu New Guinea. Tonga. Cambodia. Chad. Cameroon. Papua Islands. Sierra Leone. his point was that due to globalization. countries that have made strong economic ties with one another have too much to lose to ever go to war with one another. and Western Sahara. the conclusions to be drawn are unclear. Libya. The 2008 South Ossetia war between Russia and Georgia is a counterexample to the theory. Micronesia. Timor-Leste. and the Kargil War along with ongoing skirmishes between Indiaand factions of Pakistan over the Kashmir region. ASIA (17 out of 47 countries): Afghanistan. the bombing of Serbia. Côte d'Ivoire. Kenya. respectively). Tunisia. While that statement was somewhat tongue-in-cheek. Namibia. which did not hinder the . The appearance of McDonald's does not end an existing state of war: the states of Lebanon and Israel have been under a state of war since 1973. Solomon as Golden Arches Theory of Conflict Prevention: In Thomas L. North Korea. Republic of the Congo. Liberia. Mali. Friedman's 1999 book The Lexus and the Olive Tree the following observation was presented: "No two countries that both had McDonald's had fought a war against each other since each got its McDonald's". Tanzania. Nigeria. Syria.Palestine. with a few notable exceptions. Madagascar. Burkina Faso. Palau. Maldives.Democratic Republic of the Congo. Niger. Laos. Cape Verde. Benin. Mozambique.São Tomé and Príncipe. Lesotho. and Zimbabwe OCEANIA (10 out of 15 countries): Kiribati. Mauritania.  Other conflicts that provide possible counterexamples. Senegal. Maseru.THE MIDDLE EAST AND NORTH AFRICA (5 out of 19 countries): Iran. The global expansion of McDonald's restaurants is a relatively recent phenomenon when put into the context of the history of warfare. Bangladesh. Equatorial Guinea. Burundi. Somalia. Bhutan. Central African Republic. and. Kyrgyzstan. Turkmenistan. has proceeded into relatively stable markets. Marshall Islands. Comoros. both countries having McDonald's at the time (started in 1990 and 1999. Guinea-Bissau. Nauru. Uzbekistan and Vietnam SUB-SAHARAN AFRICA (48 out of 53 countries): Angola. Swaziland. Regardless of whether the statement is true. depending on what one considers "a war". include the 1989 United States invasion of Panama. Tajikistan. Ethiopia. Sudan. Eritrea. Guinea. Mauritius. with South Lebanon occupied until May 2000 and a significant flareup in 2006. Zambia. Rwanda.
Ritzer analyses the particular ways in which the success of the American hamburger chain has impacted upon not only economic patterns. travel. is the fact that its model offers four "alluring dimensions" to producer and consumer alike. work. What in Ritzer's view is responsible for McDonalds' revolutionizing effect. albiet taken to extreme levels. namely efficiency. Equally undeniable. Naturally all of these have led to beneficial and irreversible changes which are not to be denied. predictability and control. respectively. One of the fundamental aspects of McDonaldization is that almost any task can (and should) be rationalized. In essence. The resulting tasks are then rationalized to find the single most efficient method for completing each task. The result is an efficient. In his book. leisure. All other methods are then deemed inefficient and discarded. McDonald's revolutionising influence on the fast-food industry not only in America. but in particular on a multitude of facets of social life in general. Additionally. is perceived by Ritzer to extend to education. health care.establishment of McDonald's franchises in Israel and Lebanon in 1993 and 1998. has led to the establishment of dozens of clones in just about every branch of the retail industry and has led to other social institutions adapting McDonald's principles to their operations. All aspects of the process are easily controlled. quantity (or calculability) becomes the measurement of good performance. and the inescapable mistaking of quantity for quality. This is repeated until all tasks have been broken down to the smallest possible level. The outcome is predictable. but increasingly across the globe. The two countries engaged in a brief state of warfare in the summer of 2006. The process of McDonaldization can be summarized as the way in which "the principles of the fast-food restaurant are coming to dominate more and more sectors of American society as well as of the rest of the world. the dehumanizing effect of ever more automation. McDonalization The American sociologist George Ritzer has attracted wide attention with his concept of "the McDonaldization of society" (expounded in his book of the same names). McDonaldization is the process of rationalization. Basing his analysis on Max Weber's theory of rationalization. however. logical sequence of methods that can be completed the same way every time to produce the desired outcome. The process by which these principles are coming to dominate more and more sectors of society. The process of McDonaldization takes a task and breaks it down into smaller tasks. dieting and many more fields. calculability. is the negative consequences: the ecological impact.” . Rationalization is a sociological term that simply means the substitution of logically consistent rules for traditional (or illogical) rules.
microwave dinners and supermarkets (versus the old-time groceries where you gave your order to the grocer). Efficiency: Always choosing the optimal and fastest way to accomplish something. salad bars. fill your own cup. with the least amount of cost or effort. but is typically advertised as a benefit to the customer. ATM's. Voice Mail. Efficiency means the choosing of means to reach a specific end rapidly. The interesting element here is that the customer often ends up doing the work that previously was done for them. to make a burger. self-serve gasoline. It is an advantage for the consumers who can get what they need quickly and without effort.g.Since Mcdonalds standardization is a root cause of ritzer’s analogus comparison to society focus would be put on such practices after understanding the dimension of Mcdonaldization. And the . Dimensions of McDonaldization Ritzer’s theory consists of four dimensions that are typical for fast food restaurants: 1. The idea of efficiency is specific to the interests of the industry or business. e. Examples are plentiful: the drive-up window.
. being forced to learn new technologies." We end up spending more time. and often pay higher prices in order for the business to operate more efficiently (maintain a higher profit margin).customer pays for the "privilege. remember more numbers.
it will still have a larger diameter than the buns. prepared in a short amount of time. The costumer gets more food. Predictability: The consumer always knows what kind of service and product he will get. A lot of their work is replaced by machines that they can operate in only one way.tomers expecting anything else than the standard McDonald's fare (in any case. so that being in Moscow or Peking (or Johannesburg. but its quality and uniqueness are low. Naturally this would preclude any possibility of cus. why should they?) and. meant to ensure standardization. Another facet of calculability is the accent that is being put on size. . after being cooked. 4. they have to dress uniformly and they need to smile when receiving orders from customers. is the same as a high quality product. of any McDonald's employee showing a tendency towards innovation or initiative. but a multitude of examples can be gathered from just about every type of business. Perhaps it is in its dimension of calculability that the character of the McDonald's model is best revealed. In the case of McDonald's the very example is the Big Mac. eventually lead to the reduction of the processes of production to a game of numbers. Predictability is maybe the one dimension of the McDonald's setup that is most directly aimed at how it is perceived by its customers. whether in America or elsewhere. because taste of the burger and behavior of the workers towards customers are standardized worldwide.2. the spread of an attitude like this will in the case of the majority of industries of necessity lead to depersonalisation of both customers and workers. It is imperative that the products must be the same everywhere. It is easy to see how seemingly neutral measures. 3. Exactly so many patties have to come from a pound of meat. Even though this may not be too harmful in the case of hamburgers and fries. McDonald’s equals quantity with quality and wants to make the impression that a large amount of food. for that matter) wouldn't be that big a problem if you get homesick: at least McDonald's would be the same as it is back home. The McDonald’s corporation controls the franchisee of the restaurant. Calculability: The idea that quantity is more important than quality. more important. Control: Employees of a McDonald’s restaurant have to follow strict rules for food preparation. the buns must be of a certain exact size and the patties again have to have a certain limited fat content so that. the fries must be of a certain thickness and the bags must never be too full or too empty. This inevitably leads to quantity being mistaken for quality.
enable the company to far better control the uniformity of production and to at least partly eliminate the hassles of having to deal with human beings. This tendency." (The extreme rationalization of this is the drive-thru. They are: • • • Irrationality . automated telephone menus..complished by a range of subtle measures. Although this may be a very efficient method of operating a business. An example of this could be workers on an assembly line that are hired and trained to perform a single highly rationalized task. The prime example of this is diners who bus their own tables at the fast food restaurant. .selves. Deskilling . There are other dimensions of McDonaldization that Ritzer didn't include with the main four. among which not the least is the restriction of menus to a limited number of items. Consumer Workers .. 11)..A work force with the minimum abilities possible to complete simple focused tasks. in so far as it has not been implied by the foregoing. They dutifully carry their trash to friendly receptacles marked "thank you. The dimension of control. like getting the materials only from specific suppliers. salad bars. the utilization of customers to do work them. Ritzer himself hints that this is the fifth dimension of McDonaldization. This means that they can be quickly and cheaply trained and are easily replaceable. This includes bread and meat. p. This is ac." (Ritzer.. and pumping gas. But it is not only the employees that need to be controlled. an irrationality that is spawned can be worker burnout. by far not unique to McDonald's.He has to follow the corporation’s rules. but also the customers. is attained ". consumers take their trash with them!) Other examples are many and include: ATM's.especially through the substitution of nonhuman for human technology.One of the sneakiest things about McDonaldization is how consumers get tricked into becoming unpaid employees. Even the implied threat of replacing human with other technology enables further control over employees. but are worthy enough for prime attention. such as carrying food to the tables and litter away from it. but also cleaning agent and toilet paper.A side effect of over-rationalized systems. They do the work that was traditionally performed by the company. and of course the availability of hard chairs which certainly does not encourage customers to linger. 1996.
So. . The balance between these 3 flows is what a Supply Chain is all about.manufacturer – distributor – retailer – consumer. transformation of materials into semi-finished and finished products. And so. And when we are talking about fast food business with McDonald’s as the subject of the study it can expected a Supply Chain model of one of the highest precisions. and distribution of products to customers and their "downstream" customers at all levels. raw material flows as follows: supplier . even before we opened our first restaurant in India. The level of commitment of McDonalds can be gauged from the fact that even before it set up its first restaurant in the country it infused Rs 400 Crore to set up its delivery mechanism.Supply chain –the cause to the term ‘ Mcdonaldization ‘ Supply Chain is one of the critical factors for the smooth functioning of any business. which not just ensures on time delivery of raw materials and supplies to McDonalds but also enables it to cut down on its cost and maximize profitability along with maintaining highest quality standards of its products. we spent a few years setting up a unique Supply Chain. It is this unmatched Supply Chain Structure.material flow from suppliers and their "upstream" suppliers at all levels. McDonald’s initiative to set up an efficient supply chain and deploy state-of-art technology changed the entire Indian fast food industry and raised the standards of performance to international levels. Information and money flows in the reverse direction. McDonald's is committed to providing quality products while supporting other Indian businesses. A Supply Chain is a network of facilities including .
the quality inspection programme. a trucking company with a large fleet. may see no need for this functionality. a part of the Radha Krishna Group engaged in food-related service businesses. may be very interested in a locator system. However. Any major fluctuation in the product ordering pattern causes excess / fluctuating inventories. the Supply Chain may include major product elements. We ensured that the products developed locally abide by global McDonald's standards. an international brand trying to make inroads into the Indian consciousness. various suppliers. shortages / stock outs. for various requirements. the downstream customer. for which we have had made arrangements to manufacture the oil in India. and mistrust between supply chain partners. The association goes back to July 1993. McDonald's had been working critically on its supply chain part. geographically dispersed activities. the company was responsible for procurement. For example. which finally culminated into an agreement with McDonald's India. Considering.Better facilities and infrastructures were created along with new systems by them to satisfy McDonald's high demands. Depending on the situation. when it studied the nuances of McDonald's operations and requirements for the Indian market. storage. re-packing of promotional items continued since then at the centres playing a vital role in maintaining the integrity of the products throughout the entire 'cold chain'." As distribution centres. Understanding the value to the downstream customer is part of the supply chain management process." As per today's standings. The success of McDonald's India is a result of its commitment to sourcing almost all its products from within the country. and both upstream and downstream activities. Value-added services like shredding of lettuce. McDonald's India works with as many as 38 Indian suppliers on a long-term basis. recording and reporting. deliveries to the restaurants and data collection. its Indian supplier partners were developed in such a manner that made them stay with the company from the beginning. for Radha Krishna Foodland to serve as distribution centres for our restaurants in Delhi and Mumbai.When there is a balance in the finished product ordering. McDonald's had worked aggressively to attain the right suppliers and systems that ensured that 90 per cent of yield was indigenous before the doors were opened to consumers. a diesel engine manufacturer may be able to integrate a GPS locator system into its engine control system. inventory management. a heavy truck manufacturer. the Supply Chain operates at its best." . besides several others standalone restaurants working with it. it has developed local Indian businesses. It is critical to go beyond one’s immediate suppliers and customers to encompass the entire chain. For this purpose. higher transportation and manufacturing costs. since hidden value often emerges once the entire chain is visualized. The operations and accounting is totally transparent and is subject to regular audits. The only products that we used to import were oil and fries. McDonald's entered its first distribution partnership agreement with Radha Krishna Foodland. longer lead times. which can supply them the highest quality products required for their Indian operations. This is called the Bullwhip Effect. Its immediate customer.
Over the last 10 years, the company has gained experience and adopted procedures that helped in maintaining a continuous supply of food products irrespective of the climatic conditions.Our logistics and warehousing system is robust that prepares us to deliver products at the same temperature throughout, without a single break in the cold chain."
Two Task orientated strategies
The general approaches followed by Mcdonalds for purchasing and logistic
– – – – – – “The 3 legged stool”: Corporation – Franchisees – Suppliers Exclusive, certified facilities Handshake agreements, Trust Long term win-win partnership, risk sharing Rigorous product and service specifications Strong focus on quality, product specification and environmental audits
– – – – – – – – – – –
Decentralized supplier structure, zone consolidation for multinational suppliers Distributor is wholesaler for Restaurants ~100 sales items in the restaurant ~400 SKUs in the warehouse (Hubs: up to 1,500) ~200 restaurants per DC (~180 DCs globally) Delivery frequency: ~3/wk, higher in urban areas 2-3 stops per route Exclusive distributors (3PL) Freight consolidation (via freight forwarders) Long term partnerships with service providers, risk sharing Strong quality focus (Cold Chain, HACCP, QIP)
McDonald’s Logistics Standards
DQMP (Distributor Quality Management Process)
For over 50 years, McDonald’s has been serving customers its famous sandwiches, fries and salads. Thanks to its stellar food safety program, McDonald’s delights each day over 50 million global citizens from young to old with confidence. In order to boost the level of assurance in its food safety program, McDonald’s Europe decided to outsource its supply chain auditing. More specifically, McDonald’s Europe targeted certification bodies to audit its food suppliers against own standard SQMS (Supplier Quality Management System) or distribution centres against DQMP (Distributor Quality Management Process). The company required an unbiased view from certification leaders capable of evolving into veritable partners for McDonald’s and its suppliers. As a result, McDonald’s Europe provided its suppliers with a short-list of pre-approved certification bodies from which they could select one to conduct required audits.For a certification company to make it onto the list, it had to undergo a stringent six-month approval process. Key steps in our certification process are: • Definition of certification scope • Pre-audit (optional): audit of your current position against the standard’s requirement • On-site audit: including a traceability test • Central review of audit report and shipment to McDonald’s Re-audit according to SQMS or DQMP frequencies.
• Quality Control (HACCP / QIP)
Hazard Analysis Critical Control Point (HACCP) is a systematic approach to food safety that emphasizes prevention within our suppliers' facility and restaurants rather than detection through inspection of illness or presence of microbiological data. Based on HACCP guidelines, control points and critical control points for all McDonald's major food processing plands and restaurants in India have ben identified. The limits have been established for those followed by monitoring, recording and correcting any deviations. The HACCP verification is done at least twice in a year and certified.
• Cold Chain standards
Cold Chain was one of the unique concepts of McDonalds supply chain in India, on which it had spent more than six years to get the system into place. This system brought about a veritable revolution, immensely benefiting the farmers at one end and enabling customers at retail counters get the highest quality food products, absolutely fresh and at great value. Through its unique cold chain, McDonalds has been able to both cut down on its operational wastage, as well as maintain the freshness and nutritional value of raw and processed food products. This has involved procurement, warehousing, transportation and retailing of perishable food products, all under controlled temperatures. The following list of suppliers, who build up the major supply chain of McDonalds, reveal how this ‘Cold Chain’ works and contributes towards the efficiency of McDonalds. Setting up extensive cold chain distribution system forms the lifeline of any fast food business. In this regard, McDonald's incorporated state-of-the-art food processing technology along with its international suppliers to pioneering Indian entrepreneurs, who are today an integral part of the cold chain. and have imparted technical training to all our suppliers on how to operate the imported machineries,
Vegetables are placed in the pre-cooling room within half an hour of harvesting where rapid cooling decreases the field temperature of vegetables to 2ºC within 90 minutes." The 'cold chain'. In the van.educated them on the McDonald's philosophy of Quality. Cleanliness and Value (QSCV) in order to provide standardised food to our customers. Then a large cold room (a refrigerated van) is used for transportation to the distribution centers. McDonald's Quality Inspection Programme (QIP) carries out quality checks at over 20 different points in the Cold Chain system. McDonald's finding the factor of cold room being vital ensured that even before vegetable from farms enters the refrigerated zones. respectively and the flavours and freshness are locked at -35°C. the temperature and relative humidity of crop is maintained at 1-4ºC and 95 per cent. • Hygiene Regulations All suppliers adhere to government regulations on food. they are locked in a pre-cooling room to remove field heat. immensely benefiting the farmers at one end and enabling customers at retail counters. health and hygiene while continuously maintaining McDonald's recognised standards. Service. Setting up of the Cold Chain has also enabled us to cut down on operational wastage . has brought about a veritable revolution. on which the QSR major has spent more than six years for setting up the same in India. As the ingredients move from farms to processing plants to the restaurant.
the average person will be the looser of such monopolies. The spread of the fast food culture also bars some risks. I think this is possible because the whole world is becoming more hectic and because the values of family and having a home-cooked meal together are declining. it could lead towards what is the case in the USA now in just some decades. It contributes to the creation of a hybrid global culture . the spread of fast food corporations can lead to many economical risks when they become a dominant factor in the local economy.especially as we saw in asia . Other than culture. .it changed publics eating habits in Japan and replaced the traditional parks and teahouses as places for old people to meet. Even though it did not lead to a homogenous global culture yet. the risk is leading towards a homogenous culture is smaller than the theory of Mcdonaldization suggests. When the localization process of Mcdonald’s is viewed out of the customer . because it was something completely new and thus needed its own category . but on the other side .CONCLUSION Mcdonalds had a strong homogeneous effect on the culture in its home country the same cannot be said about the countries be said about the countries it expanded to.diversity and innovation to many parts of the world. There its localization process was rather about assimilating into the cultural than to suppress it. As usual when it comes to globalization. The expration of mcdonalds into Germany did not earse local traditions. On the one side. Mcdonald’s leads to a standardized and homogenous global consumer culture. it brings variety . There its localization process was rather about the countries it expanded to. anyway .
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