PRO

“A Study on Effectiveness of
 Preface

The infusions get a special consideration and important to the programs as it allow a
student as expose to the real life. A person can’t learn by merely reading hundreds of
book on it, he/she requires to practice his hand at they learn of it. Similarly management
learning remains incomplete without a test of real business life. Thus theoretical is not
enough for the management student, practical study hold an important place. Our
knowledge remains incomplete without these practical aspects.
We proudly present our work in the form of comprehensive project report on, “A STUDY
ON EFFECTIVENESS OF FRANCHISE BUSINESS MODEL OF MC DONALD’S
-AHMADABAD “
The initial objective of this report is to know the whole in and out process of mc
Donald’s franchise as well the customer service also. It also creates awareness in
management student at a grass root level about the difficulties and high challenges in the
field of marketing and business world.
It is needed a golden opportunity for us to present this report and indeed a matter of
esteem honor itself.
Executive Summary
 ACKNOWLEDGEMENT

"Interdependent has a higher value than Independence"

It would really difficult for us to complete the project without kind co-operation of
certain people. In other words there are so many external people who directly or
indirectly help us in this project. First of all we are really thanking full to GUJARAT
TECHNOLOGICAL UNIVERSITY and CHAUDHARY TACHNICAL INSTITUTE. I
also thank full to our Our Director. Mr. AMIT PATEL and our Project Guide Mr. Sanjiv
Chaudhari and Ms.Bhumika Raval.

I am also thanking full of McDonald’s member who has granted me the permission to
undertake the market research of “McDonald’s” guide me as well as provide marketing
information at McDonald’s.

Last but not the least; our cordial thanks to all faculty members of the college, Parents
and friends. However, we accept the sole responsibility for any possible errors of
omission and would be extremely grateful to the readers of this project report if they
bring such mistakes to our notice.
 Table of content
Sr. No. Particular Page no.
Title page
Preface
Acknowledgement
Executive summery 4-5
1 Introduction 7-10
1.1 Project at a glance 7
1.2 Service industry in India 8
1.3 Fast food industry in India 9-10
2 History 12-28
2.1 History of McDonald’s 12
2.2 Company profile 13-25
2.3Scope of the project 26-28
3 Research methodology
Research process and plan 30-31
4 Analysis of data
Analysis of graph and chart with interpretation 33-52
Testing of hypothesis 52-53
5 Finding and conclusion 54-58
6 Suggestion and recommendation 59-62
7 SWOT analysis 63--64
8 Conclusion 65
9 Bibliography 66
10 Annexure

Analysis of Data
1 Do you visit Mc Donald’s?
Visit of Mc Donald's
Cumulative
Frequency Percent Valid Percent Percent
200 100.0 100.0 100.0

Interpretation:

As per the bar graph shown above all of the responded has given positive
response for the visit of McDonald’s. So here 100% positive response from the
responded. The major reasons are that the all respondents are students, job holders,
children and friends and they prefer to spend their time in Mc Donald’s. We preferred to
collect the information from the Mc Donald’s outlets, the students who visit the Mc
Donald’s from our collage and surrounding of ours.

2. How frequently you eat in the McDonald’s?

 Frequency Of Visit
Cumulative
Frequency Percent Valid Percent Percent
Valid Weekly 31 15.5 15.5 15.5
Fortnightly 51 25.5 25.5 41.0
Monthly 118 59.0 59.0 100.0
Total 200 100.0 100.0

Interpretation:
As per the Bar graph shown above, 15.5% respondent visit weekly in Mc Donald’s
because most of them are students and job holder who came over there for outing purpose
and for the meeting purpose also. The 25.5% respondents visit fortnightly in Mc
Donald’s because most of the respondents go with their children for outing, with their
spouse or girl friend for dating purpose also. And 59% respondents visit monthly for
outing, business meeting, birthday party and other purpose also

3. With whom you visit the Mc Donald’s?

 With Whom You Visit
Cumulative
Frequency Percent Valid Percent Percent
VFamily 42 21.0 21.0 21.0
aSpouse 34 17.0 17.0 38.0
l Children 12 6.0 6.0 44.0
i Friend 89 44.5 44.5 88.5
dColleagues 23 11.5 11.5 100.0
Total 200 100.0 100.0

Interpretation:
As per the bar graph shown above there are 21% respondents visit Mc Donald’s
with their family. 17% with their spouse 6% with their children, 44.5% with their friends
for outing or with their girlfriend for dating and 11.5% with their colleagues for outing
and business purpose.

4. Who influence you to visit the Mc Donald’s?

 Influencer For Visit
Cumulative
Frequency Percent Valid Percent Percent
Valid Friends 79 39.5 39.5 39.5
Advertisement 51 25.5 25.5 65.0
Special Occasion 65 32.5 32.5 97.5
Other 5 2.5 2.5 100.0
Total 200 100.0 100.0

Interpretation:
As per the bar graph shown above there are 39.5% respondents are influence by friends
because generally youngsters prefer to hang out with friends in Mc Donald’s. The 25.5%
respondents influenced by advertisement because they see the advertisement of Mc
Donald’s and influenced. 32.5% influenced by special occasion like Birthday party,
Diwali, New Year, Christmas etc.

5. For what purpose you visit the Mc Donald’s?

 Purpose of Visit
Cumulative
Frequency Percent Valid Percent Percent
Valid Birthday 39 19.5 19.5 19.5
Business Meeting 21 10.5 10.5 30.0
Dating 26 13.0 13.0 43.0
Outing 97 48.5 48.5 91.5
Other 17 8.5 8.5 100.0
Total 200 100.0 100.0

Interpretation:
As the bar graph shown above 19.5% respondents are visit for birthday
parties. 10.5% respondents are going for Business meeting because they are most
probably the businessmen or job holder. 13% respondents go for dating purpose with
their girl friends, fiancée or wife. 48.5% respondents go for outing purpose because most
of respondents go with their friends and family to hang out. Here we can see that most of
the respondents visit Mc Donald’s for outing purpose.

6. What is the first thing that strikes in your mind about McDonald’s?
 First Things That Strikes
Cumulative
Frequency Percent Valid Percent Percent
Valid Burger 51 25.5 25.5 25.5
Golden Arches 10 5.0 5.0 30.5
Services 38 19.0 19.0 49.5
Value For Money 28 14.0 14.0 63.5
Fun 73 36.5 36.5 100.0
Total 200 100.0 100.0

Interpretation:
As the bar graph shown above 25.5% respondent think about Burger because when they
visit Mc Donald’s they generally prefer Burger. 5% respondents think about golden
arches.19% respondents think about services provided by Mc Donald’s. 14% respondents
think about value for money when they visit. And most of the respondents visit Mc
Donald’s for fun. The ratio of visiting for fun purpose is highest, which is 36.5%.

7. Which is your favorite product at McDonald’s?

 Favorite Product at Mc Donald's
Cumulative
Frequency Percent Valid Percent Percent
Valid Maharaja Mc 25 12.5 12.5 12.5
Mc Chicken 18 9.0 9.0 21.5
Burger 41 20.5 20.5 42.0
MC Veggie 19 9.5 9.5 51.5
French Fries 22 11.0 11.0 62.5
Mc Curry Pan 19 9.5 9.5 72.0
Fileto Fish 7 3.5 3.5 75.5
Other 5 2.5 2.5 78.0
Mc Allu Tikki 44 22.0 22.0 100.0
Total 200 100.0 100.0

Interpretation:
As par the bar chart shown above we find that Most of the respondents like Mc Alu Tikki
22% respondent prefer Mc Alu Tikki. 12.5% respondent like Maharaja Mc 20%
respondent like Mc chicken. 20.5% respondent like burger. 9.5% like Mc veggies and
11% like French fries at Mc Donald’s
8. Is the product line in McDonald’s adequate?
 Adequacy Of Product line
Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 144 72.0 72.0 72.0
NO 15 7.5 7.5 79.5
Average 41 20.5 20.5 100.0
Total 200 100.0 100.0

Interpretation:
As the bar graph shown above 72% respondents says that the product line at
Mc Donald’s are adequate means that the product at Mc Donald’s are likable by
respondent and they do not want to increase product line like pizza and different kind of
food. 7.5% respondent want changes in product line of Mc Donald’s because they want
that all the food they get at one roof. And 20.5% respondent says that the product line at
Mc Donald’s is average they do not want to change in product line.

9. How would you describe the variety of foods offered?

 Variety Of Food Offered
Cumulative
Frequency Percent Valid Percent Percent
Valid Excellent 80 40.0 40.0 40.0
Good 99 49.5 49.5 89.5
Fair 21 10.5 10.5 100.0
Total 200 100.0 100.0

Interpretation:
As the bar graph shown above 49.5% respondents find that the variety of food offered at
Mc Donald’s are good. 40% respondents find that the varieties of food are excellent. And
10.5% Respondent find that it is fair no changes needed by them they are happy with the
variety of food by Mc Donald’s.
 11. Please give your opinion for following criteria.

Correlation Matrix
Staff Are
Restarrant Cutlery Is Staff Are Well Services Find
Queue Is Clean Clean Helpfull presented Are Good Seat
Correlation Queue 1.000 .058 -.001 -.017 .003 -.124 -.188
Restarrant Is Clean .058 1.000 .549 .334 .314 .238 .028
Cutlery Is Clean -.001 .549 1.000 .386 .288 .273 .072
Staff Are Helpfull -.017 .334 .386 1.000 .544 .352 .211
Staff Are Well .003 .314 .288 .544 1.000 .560 .190
presented
Services Are Good -.124 .238 .273 .352 .560 1.000 .410
Find Seat -.188 .028 .072 .211 .190 .410 1.000
Sig. (1- Queue .207 .493 .408 .483 .041 .004
tailed) Restarrant Is Clean .207 .000 .000 .000 .000 .346
Cutlery Is Clean .493 .000 .000 .000 .000 .156
Staff Are Helpfull .408 .000 .000 .000 .000 .001
Staff Are Well .483 .000 .000 .000 .000 .003
presented
Services Are Good .041 .000 .000 .000 .000 .000
Find Seat .004 .346 .156 .001 .003 .000
a. Determinant = .205

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .687
Bartlett's Test of Sphericity Approx. Chi-Square 309.942

df 21
Sig. .000
 Total Variance Explained
Componen Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
t % of Cumulative % of Cumulative % of Cumulative
Total Variance % Total Variance % Total Variance %
1 2.651 37.866 37.866 2.651 37.866 37.866 2.432 34.750 34.750
2 1.326 18.949 56.815 1.326 18.949 56.815 1.545 22.065 56.815
3 .928 13.258 70.072

dimension0
4 .727 10.381 80.454
5 .594 8.488 88.942
6 .450 6.431 95.373
7 .324 4.627 100.000
Extraction Method: Principal Component Analysis.
 Rotated Component Matrix
Component
1 2
Queue .163 -.578
Restaurant Is Clean .768 -.198
Cutlery Is Clean .762 -.111
Staff Are Helpful .701 .242
Staff Are Well presented .682 .359
Services Are Good .516 .624
Find Seat .112 .763
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 3 iterations.

Interpretation:

In the factor analysis there are 7 variables

V1-Queue
V2- Restaurant is clean
V3- Cutlery Is Clean
 V4- Staff Are Helpful
V5- Staff Are Well presented
V6- Services Are Good
V7- Find Seat

As the factor analysis tables shown above we can interpret that The KMO and Bartlett's
Test value is 0.687 which is higher than 0.5000 and the significant level is 0.000 which is less then 0.05 so
here WE can proceed for factor analysis. According to the Eigenvalues analysis those factor get value
higher then and equal to 1 those variable consider as factor so according to scree plot there are two factors
can be considered.
In rotated components matrix there are V2 (Restaurant is clean), V3 (Cutlery Is Clean), V4
(Staff Are Helpful), V5 (Staff Are Well presented) are come together so we labeled these factor as
hygienisity and staff services. Here V6 (Services Are Good) and V7 (Find Seat) are club
together so we labeled this factor as overall service factor.

12. Are you satisfied with the following criteria?

H0: Customers are not satisfied with the Quality, Service, Cleanliness and
Value provided by Mc Donald’s.

H1: Customers are satisfied with the Quality, Service, Cleanliness and
Value provided by Mc Donald’s.

One-Sample Test
Test Value = 0
95% Confidence Interval of the
Mean Difference
z df Sig. (2-tailed) Difference Lower Upper
Satisfied With Quality 96.554 199 .000 4.04000 3.9575 4.1225
Satisfied With Service 97.983 199 .000 4.19000 4.1057 4.2743
Satisfied With 88.342 199 .000 4.11500 4.0231 4.2069
Cleanliness
Satisfied With Value 89.021 199 .000 4.14000 4.0483 4.2317
 0.05
-0.05

Interpretation:

Here shown above according to Z test the significant level of all the criteria are less then
0.05 so the null hypothesis is not accepted so we accept the alternative hypothesis that the
customers are satisfied with the Quality, Service, Cleanliness and Value provided by the
Mc Donald's.
 13. Express your overall experience about Mc Donald’s.

H0: consumers overall experience is not good about Mc Donald’s.

H1: consumers overall experience is good about Mc Donald’s.

One-Sample Test
Test Value = 0
95% Confidence Interval of the
Difference
z df Sig. (2-tailed) Mean Difference Lower Upper
Overall Experience 93.268 199 .000 4.27000 4.1797 4.3603

0.05
-0.05

Interpretation:
Here shown above according to Z test the significant level is less then 0.05 so here we not
accept the null hypothesis and accept the alternative hypothesis so here the customer’s
overall experience is good at Mc Donald’s.
 Chi-Square Tests

Value df Asymp. Sig. (2-sided)

a
Pearson Chi-Square 6.481 6 .372
Likelihood Ratio 6.312 6 .389
Linear-by-Linear Association .005 1 .943
N of Valid Cases 200
a. 5 cells (41.7%) have expected count less than 5. The minimum expected count is .16.
 RESEARCH METHODOLOGY
DESIGN OF THE STUDY

Research Methodology

Research Process:

Problem Identification
↓

Convert research problem into management problem

↓

Research design formulation

↓

Data Collection
↓

Data analysis
↓

Research Findings
RESEARCH PROSSES:

I. Problem Definition
a. Objective: - To know the effectiveness of Franchise Business Model of
Mc Donald’s in Ahmedabad.
b. Sub-objective: - Through these research we can know the in and out
process, the whole Franchise Model, Procedures of Mc Donald’s.

c. Research Plan

a) Research Design: Exploratory Research

b) Data Sources: Primary data

c) Research Instrument: Questionnaire, Interview Administrer

Questionnaire

d) Sampling Plan:

i) Sampling unit: Customers ( Near by McDonald’s Outlets )

Managers of Mc Donald’s
ii) Sample size: 200

iii) Sampling Procedure: Convenience Sampling

e) Contact Methods: Personal Interview

f) Qualitative Research: None