Table of Contents

1 ) Executive Summary

2) Company`s History

3) McDonald`s in US and it`s Mode of entry in India

4) Pricing strategy of MC DONALD

5) Product strategy

6) Organisational structure

7) Promotional strategy

8) Distribution strategy

9) Training and development

10) Selection approach

 Executive Summary
McDonald’s is a signature restaurant chain serving 58 million
customers each day all over the world through its 31000 restaurants in
119 countries. This report views the various internal and external
factors affecting the McDonald’s prior to that the report gives a brief
introduction about McDonald’s, its evolution and the way it enter in
the various countries market and operates their and their strategies
on different aspect`s of business ,the comparison has been done taking
U.S as home country for McDonald and India ass host country.
McDonald’s is the world’s biggest Fast Food operator,
operating more than 30.000 outlets in more than 120 countries.
In the UK McDonald’s Restaurants Ltd operates 1200 stores, of
which 70% are company owned.
McDonald’s generally sets the highest standard for itself, yet
most are not achieved or public perception differs from that of
the company’s.
McDonald’s is persuing a value strategy offering its products at
relatively low prices. They differentiate their products through
successful branding campaigns.
Great efforts have been made to create an environmental
friendly image, in the outlets and on the supplier side.
 History of Mc Donald's
American businessman Ray Kroc
first established McDonald's in
1955. From those early days
McDonald’s has been a
franchising company. We have
relied on our franchisees to play
a major role in the success of the
business. Approximately 70% of
McDonald's worldwide restaurant businesses are owned and
operated by independent businessmen and women, our
franchisees.

In the UK McDonald's opened its first restaurant, in Woolwich,

in 1974. Initially all restaurants were owned & managed by the
company. However, McDonald’s started recruiting franchisees
in the mid-1980 and opened first franchise restaurant in 1986.
Since that time the number of UK franchisees has steadily
grown. Today over 37% of 1,200+ restaurants are operated by
franchisees.
 Mc Donald`s in USA
In US Mcdonald own 20% of restaurant and rest of the 80% of
restaurant are on the basis of franchisies

Key Points on the McDonald's approach to Franchising

McDonald's franchises restaurants to individuals only. Never to

companies, partnerships, family groups or passive investors. However,
many of our franchisees operate their businesses as husband and wife
teams.

Before an individual can become a franchisee they must successfully

complete their training program, which usually takes around nine
months .

Franchisees must have an active, hands-on, day-to-day involvement in

the operation of the restaurant. No other business interests are allowed.

They franchise existing trading restaurants; it is not necessary for

applicants to source sites.

Franchisees run their restaurant(s) as an independent business. They are

responsible for driving the business forward and all normal business
functions i.e. recruiting, marketing, accounting and administration and
managing and representing the brand in the local community.
 Their approach of franchising is followed all across the world.

Mode of entry in india

The effort of McDonald’s to enter India commenced in earnest in the early
1990s after it successfully opened outlets in China.12 Exhibit 4 provides some
facts about McDonald’s entry and growth into select countries. India’s wide
range of economic reforms in the 1990s, coupled with a potentially large
consumer market (with 300 million consumers, almost as big as China),
provided enough incentives for McDonald’s to enter into the Indian market.
In October 1996, McDonald’s opened its first Indian outlet in Vasant Vihar, an
affluent residential colony in India’s capital, New Delhi. As of November 2004,
McDonald’s has opened a total of 58 restaurants, mostly in the northern and
western part of India (Exhibit 1).1 While McDonald’s opened 34 restaurants in
five years (by 2001), 58 restaurants in eight years (by 2004), it is now planning
to add more than 90 new restaurants in the next three years.2 Although the
initial scenes of crowds lining up for days outside the McDonald’s restaurants in
Delhi and Mumbai are no longer seen, Indian consumer response to
McDonald’s products still remains very strong.

McDonald’s Road Map for India

Emphasis on Local Management
McDonald’s has given the adage of “think global, act local” a concrete shape in
India. The company’s localization strategy is clearly manifest in the critical area
of management. McDonald’s decided to set up two joint ventures on a 50:50
basis with two local entrepreneurs in Mumbai and Delhi. In Mumbai,
Amit Jatia’s company, Hardcastle Restaurants Private Limited, was selected to
own and manage McDonald’s restaurants in the western region. In Delhi,
Vikram Bakshi’s Connaught Plaza Restaurants Private Limited was chosen to
own and manage McDonald’s restaurants in the northern region. Both Vikram
Bakshi and Amit Jatia are responsible for running McDonald’s in India. Vikram
Bakshi has extensive background in real estate development in Delhi, while
Amit Jatia, a vegetarian, has a chemicals and textile business background in
Mumbai. It was not their backgrounds, however, that won the confidence of the
Big Mac’s management. Rather, it was their business plan emphasizing India-
centric management strategies and their easy access to bureaucracy so critical to
effective government relations building.
 Pricing strategy in us
Product Line Pricing:

McDonald’s has a unique pricing strategy that falls solely on their many product
lines.  Their Value Meals fall into the category of Product Line Pricing.  “Where
there is a range of product or services the pricing reflect the benefits of parts of
the range.” For example, you can order a Two Cheeseburger Value meal that
comes with a medium drink and fries for around $3 (prices may vary).  You can
Super Size this meal to get a large drink and large fries for a little more money
or you can go with another value meal that might include different items for
different price. 

Promotional Pricing:

If you have driven past a McDonald’s, you will notice that somewhere on their
property, whether it is a banner on their building or spelled out on their sign,
they are always offering some sort of promotional pricing.  For example,
currently the McDonald’s in Maine is advertising “Two Sausage McMuffin’s
for $3.”  This promotion can be seen as a large banner draped across the
building on many restaurants in Maine.  This promotion changes weekly and
may consist of different menu items packaged together.

Penetration Pricing:

When McDonald’s first began to break into the coffee market, they ran a large
marketing campaign in order to gain some market share in the industry.  For a
limited time frame, you could get a free small coffee every morning from 4-
7am.  This was to promote their new coffee partnership with Green Mountain
Coffee and helped spread the word that McDonald’s was now offering coffee.   

Value Pricing:

“This approach is used where external factors such as recession or increased

competition force companies to provide 'value' products and services to retain
sales.”  The most notable and recent example of this is McDonald’s “Dollar
Menu.” The Dollar Menu was created because McDonald’s recognized that the
economy was in a decline and that their competition was getting fiercer.  The
Dollar Menu satisfies the current decreasing economy and has increased the
pressure towards competitors.  The introduction to the Dollar Menu is by far the
most economical product line that McDonald has ever offered.  You can get a
number of products off of their menu for only a dollar.  It is efficient and
practical. 

Pricing strategy in India

Much of the McDonald’s growth in India can be attributed to its pricing
strategy. Since, on an average, each household spends about 50% of income on
food and beverages in India, food prices are always a sensitive issue . Even the
Indian middle class, despite their much improved income level,
remains very price sensitive. Accordingly, McDonald’s has pursued what Amit
Jatia, the company’s managing director in the Western region, calls “purchasing
power pricing” or the customer’s ability to pay. The adoption of such a pricing
strategy in India offers a useful country-specific insight on possible price
differences of the company’s products on the basis of purchasing power parity
(PPP) calculations across countries as provided by the so-called Big Mac Index
.Worldwide, McDonald’s has achieved success by tapping middle-class
households. But in India, while McDonald’s has been able to get a larger share
of rich and upper-middleclass population, it has not been as successful at
effectively tapping the middle-class and lower middle-class segments.
Capturing the latter segment is critical as McDonald’s starts entering into
smaller cities. But this section has mainly stayed away because of a widely
prevailed perception that McDonald’s is expensive. This is the reason why the
company cut prices on its vegetable nuggets from Rs 29 to Rs 19, and the soft
service ice cream cone from Rs 15 to Rs 7 in 1997.16 In September 2001,
McDonald’s offered its enormously popular Shudh Shakahari (pure vegetarian)
Veg Surprise (a veggie burger) for Rs 17. With this price,
McDonald’s was able to sell the veggie burger 40% more than what it expected
within a month

Value Pricing:
“This approach is used where external factors such as recession or increased
competition force companies to provide 'value' products and services to retain
sales.”  The most notable and recent example of this is McDonald’s “Dollar
Menu.” The Dollar Menu was created because McDonald’s recognized that the
economy was in a decline and that their competition was getting fiercer.  The
Dollar Menu satisfies the current decreasing economy and has increased the
pressure towards competitors.  

In March 2004, McDonald’s launched a Happy Price menu under

which it sells four of its burger products at Rs20 each. This has led to a 25%
increase in customers .Clearly, the McDonald’s strategy has been to increase
sales volume of its products by making its products available at an affordable
price. McDonald’s has been offering value meals in a range of prices—Rs 29,
Rs 39, Rs 49, Rs 59, Rs 79, and Rs 89. McDonald’s has employed this value-
ladder strategy to ensure affordability and thus attract the widest section of
customers. As Vikram Bakshi, McDonald’s managing director of the Northern
region in India, explains, “Our clear strategy is to bring the customers in
initially and provide a range of entry-level products so that they can try new
items and graduate to the higher rungs. Thus, if a customer starts with a McAloo
Tikki Burger (breaded potato and pea patties), what he graduates to finally is a
vegetarian burger. Or, if a customer starts with a Chicken Kabab burger, what
he graduates finally to is the McChicken.” Such strategy has helped its volume
business.
Another strategy that seems to have gone well with Indian customers is what the
company calls the
80-20 menu board—80% visual and 20% descriptive. The main objective of the
company is to make it easier for customers to understand what the 29, 39, 49,
59, 79, and 89 rupee option.
The most important reason for McDonald’s pricing flexibility is its well-
established supply chain
management, which ensures efficiency and speed in distribution. Besides, huge
increases in volume sales and food processing technology have been helping the
company to offset its cost.
 Product strategy in US
That new product development strategy is being credited with helping the fast food giant
rebound, with same-store sales rising and corporate profitability increasing. It takes anywhere
from 18 to 24 months for a new product to debut on a national level at McDonald's
restaurants. New ideas can come from management, owner/operators, or the company's
culinary team. Ideas are explored and then backed by consumer research…

MC DONALD always try to develop their product according to local taste and
culture , about food and local popular item`s . through this company tries to
make close relationship with local customer`s

• Product Developed by McDonald

– Successes: Fries, Happy Meal, Big Mac, Egg McMuffin, Promotions

– Failures: McPizza, Fajita, Carrot Sticks, McLean, and the Arch

Deluxe

Product strategy in India

In India, McDonald’s is likely to face constant pressure to increase its product
range. Until now,the company has responded well to varying customers’ tastes
and preferences by introducing new products. But given India’s fragmented
regional cultures, where no single food preference predominates, McDonald’s
needs to develop new products on a regular basis. Developing new products
adds complexity and cost and raises the risk of error. It also runs counter to
McDonald’s culture and history. Yet, if McDonald’s does not do it on a regular
basis, the company’s popularity will be short-lived. It will be difficult for the
company to meet the range of different competitors, most notably the
homegrown Nirula’s, which offers a variety of products at reasonable prices.

These are the few menu item`s which is being developed by Mc Donald in India
according to local taste and culture

Organisational structure
McDonald’s Corporation is an excellent example of company
with a global strategy and centralized organizational structure.
McDonald’s has over 31,000 restaurants in 120 countries.
Although these restaurants are typically franchises, they all
receive food and packaging from the same approved vendors.
This means that a McDonald’s in the U.S. is just like a
McDonald’s in Russia. All decision-making regarding menus and
marketing are made at the corporate level in the U.S

McDONALD follows network organisational structure

Network Organizational Structure

Product Call center

developmen partner
t partner (India)
(U.S.A.)

Core
Firm
Package
Accounting
design
partner
partner
(Canada)
(UK)
Assembly
partner
(Mexico)

McShane/Von Glinow OB4e Slide 15-23 © 2008 The McGraw-Hill Companies, Inc. All rights reserved.

Evaluating Network
Structures
• Benefits

– Highly organic -- flexible design

– Efficiencies from acquiring and discarding resources as

needed from partnerships

• Limitations

– Exposes core firm to market forces -- shortages of

facilities and talent

– Less control over non-core work processes

employeeS structure of
Mc Donald
Organizational Purpose
Clearly defined organizational purpose is very important for an organization as
it describes the basis for its existence. It works as a directing force on the basis
of which every decision is taken. The organizational purpose can be known with
the help of three elements which are:
1. Vision
2. Mission
3. Objective
McDonald’s vision is to be the world’s best quick service restaurant experience.
() Being the best means offering excellent quality, service, cleanliness and
value, so that it makes each customer in every restaurant smile. It has been the
execution of the motto of QSC and V i.e. Quality, Service, Value and
Cleanliness that has made McDonald’s a success story. It strategizes to attain
best value by providing top quality products at reasonable prices. McDonald's
mission is to be its
customers' favouraite place and way to eat. To fulfill this McDonald’s has been
using the concentration strategy where in it is trying for greater market
penetration by attaining high level of efficiency in servicing its customers with a
limited product line. Delivery of QSC and V on one hand keeps the customers
satisfied and on the other hand also maintains the competitive edge over the
competitors. The delivery of QSC and V is accomplished by taking care of
every minute detail whether it is the unique cold chain network which makes
sure that the customers get fresh products at low cost or the supply chain
management which makes sure that customers
are offered good quality products.() Moreover to keep the customers satisfied
McDonald’s continuously updates its menu.

Promotional strategy of McDonaldn in

india
In India, McDonald’s has positioned itself as a family restaurant. Family has become the
cornerstone of its strategy. Its outlets are called “McDonald’s Family Restaurants,” as
opposed to simply McDonald’s as in other parts of the world. McDonald’s restaurants
provide a clean, comfortable, and stress-free environment especially suited for working
families. With India’s changing family system in metropolitan cities, where the extended
family is no longer the preferred way of living,

McDonald’s has become an attractive place for working and busy young parents on
weekdays. On weekends, residents of Delhi and Mumbai bring their children to McDonald’s
so that they can relax, while their children play in McDonald’s hugely popular play places.
Like its other worldwide locations, McDonald’s targets children as their main clientele in
India.
Children in India may not have the purchasing power comparable to their Western
counterparts, but they are still the center of the universe in the Indian family system, and they
can actually pull the parents to visit a place time and again. Children are an enormously
powerful medium for relationship building in India. They not only influence markets in terms
of the parental decision-making to buy certain kinds of products, they are also future
consumers. After all, brand impressions, once formed, can stay for a lifetime.
Thus, McDonald’s has done everything possible to attract children. When one of its outlets
was opened in South Mumbai, a children’s parade was organized all along the popular
Marine Drive, led by McDonald’s mascot, Ronald, who was accompanied by a 40-feet long
float depicting the various tourist destinations in Mumbai. Its “Happy Meals” and the
accompanying Lego toys are a great attraction for children. McDonald’s play places—
appropriately called Fun Zones—appeal to children and their parents, because they are
considered safe, reliable, hygienic, and kid-friendly. Kids like McDonald’s outlets because
they are brightly lit and full of young people. During their visits, kids are showered with
knickknacks. The Noida outlet near Delhi even has a low-height order counter for children.
McDonald’s outlets provide the kids with a hassle-free experience where no one tells them
“sit down,” “don’t move,” or “keep out of my way.”

McDonald’s also promotes birthday parties complete with cake, candles, and toys in
television advertising aimed directly at kids. In some Indian cities like Mumbai, Delhi, and
Bangalore, birthday parties are all the rage for upwardly mobile youngsters. Given that most
young people in these cities live in small, overcrowded flats, McDonald’s has become a
convenient and welcoming place for birthday celebrations.

McDonald’s appeals to India’s new Westernized elites because its food is clean, safe, and
reliable. India’s upwardly mobile middle-class families show considerable interest in
enjoying what is often described as McDonald’s terminology for products that are
temporarily added to the menu.
McDonald’s offers attractive new promotions from time to time to attract more young adults
to its outlets. One such promotion—“Music Meal,” launched in April 2005 in association
with Coca- Cola India and Universal Music India—became extremely popular with young
men and women. Through this promotional campaign, young people were offered free tickets
to an exclusive hugely popular Bombay Vikings show upon collection of four McDonald’s
mini-CDs, which come with a large meal combo order. By engaging young customers with
fun and new promotions that are in tune with their changing desires, McDonald’s has been
able to increase its business volume considerably over the past years.
McDonald’s has introduced other innovations that appeal to customers of all ages in India. In
some of its newly opened restaurants, McDonald’s has provided lounges for senior citizens to
relax and taste its food. For people used to a traditional restaurant environment, in which
waiters lead patrons to sitting places, McDonald’s in Delhi’s residential areas has made
special arrangements, where several
crew members are present to direct families to available sitting places. Most Indians love to
have sweet desserts after a meal. Keeping this in mind, McDonald’s has opened several very
popular Cold Kiosks in Mumbai and Delhi. These Cold Kiosks, which are located either
inside the main outlet or adjacent to the McDonald’s outlet, offer customers an innovative
range of cold desserts such as ice creams with unusual flavors like bubble gum, green apple,
and peach.
Most Indians believe in fate, and fate-driven success or failure is a way of life. There may not
be frequent discussion in public discourse, but the powerful concept of Karma in Hinduism
and reward for good Karma still continues to be a critical and almost subconscious
determinant of Indian social existence. Not surprisingly, one of McDonald’s most popular
attractions has been the instant scratch and- win prizes on a daily and weekly basis (Exhibit
12). The daily drawn prizes include colour televisions, cell phones, Panasonic camcorders,
VCRs, music systems, microwave ovens, and even scooters. The weekly prizes promise a
family vacation to various places outside India. There is also a monthly jackpot prize of a
Mahindra Bolero jeep and other high-ticketed items available. Aptly named the “Lucky Itch,”
these prizes have become enormously popular for the fate-driven Indian psyche, i.e., “if you
are lucky, you are successful and win big.”

For people who still want to eat at home or are unable to visit restaurants because of lack of
transportation, traffic jams, and overcrowded eating places, McDonald’s has introduced its
popular home-delivery (McDelivery) services. For another section of rich middle-class
families in Delhi and Mumbai who prefer to enjoy watching movies, cricket matches at
home, or just for plain relaxation away from cooking, McDonald’s home-delivery services
(where food is delivered usually hot) have become popular and convenient. McDonald’s has
achieved about a 15% increase in sales as a result of starting home deliveries from some of its
stores

McDonald’s is currently focusing on expanding its base in the Indian market. By the year
2015 McDonald’s is planning to start around 180 more restaurants, majority of which will be
opened in Tier II cities where McDonald’s has very limited presence.() So, McDonald’s is
trying to penetrate very deep into the Indian market. McDonald’s is also trying to come up
with new products so as to satisfy its customers. Nearly 80% of McDonald’s restaurants in
India give certain percentage of their profits for research and development activities which
helps McDonald’s in coming up with new products and efficient service. When McDonald’s
entered the Indian market it had to re-engineer its menu and since then it has included several
products
especially for the Indian customers as McDonald’s believes in thinking global but acting
local. McDonald’s should continue with its strategy of expanding its base into the Indian
market as still there are lot of untapped regional markets in the country especially in the
Eastern India where it has less presence as compared to the other parts of the country.
McDonald’s should also concentrate on the smaller cities as large amount of population
(nearly 177 million people) lives in smaller cities. So there is a huge market potential for
McDonald’s in Tier II and III cities
PROMOTIONAL STRATEGY IN
U.S
McDonald's has for decades maintained an extensive advertising
campaign. In addition to the usual media (television, radio, and
newspaper), the company makes significant use of billboards and
signage, sponsors sporting events ranging from Little League to the
Olympic Games, and makes coolers of orange drink with their logo
available for local events of all kinds. Nonetheless, television has always
played a central role in the company's advertising strategy.To date,
McDonald's has used 23 different slogans in United States advertising,
as well as a few other slogans for select countries and regions. 

Distribution strategy in US
 Franchising Mc Facts

• Approximately 85% of McDonald’s restaurant businesses world-wide are

owned and operated by franchisees

• All franchisees are independent, full-time operators

MANUFACTURER →CONSUMER

DISTRIBUTION strategy IN
INDIA

McDonald’s have franchises network in India and has partnered with the state-
owned oil company, Bharat Petroleum Corporation Ltd.
(BPCL), to set up restaurants at the latter’s petrol stations in and around Delhi
to make it more convenient for automobile-driving consumers. BPCL is the
leading petroleum retailer in India and has the largest number of petroleum
stations in and around Delhi. It is important to note the shift in government
attitude toward MNCs that led to a successful partnership between McDonald’s
and the largest state-owned company.

MANUFACTURER →CONSUMER

The relationship between McDonald's and its Indian suppliers is mutually

beneficial. As McDonald's expands in India, the supplier gets the opportunity to
expand his business, have access to the latest in
food technology, exposure to advanced agricultural practices and the ability to
grow or to export. There are many cases of local suppliers operating out of
small towns who have benefited from their association
with McDonald's India.

Trikaya Agriculture
Suppier of Iceberg Lettuce
Implementation of advanced agricultural practices has enabled Trikaya to
successfully grow speciality crops like iceberg lettuce, special herbs and many
oriental vegetables. Farm infrastructure features:
A specialised nursery with a team of agricultural experts.
Drip and sprinkler irrigation in raised farm beds with fertiliser mixing plant.
Pre-cooling room and a large cold room for post harvest handling.
Refrigerated truck for transportation.

Vista Processed Foods Pvt. Ltd.

Supplier of Chicken and Vegetable range of products (including
Fruit Pies)
A joint venture with OSI Industries Inc., USA, McDonald's India Pvt. Ltd.
and Vista Processed Foods Pvt. Ltd., produces a range of frozen
chicken and vegetable foods. A world class infrastructure at their plant at
Taloja, Maharashtra, has :
Separate processing lines for chicken and vegetable foods.
Capability to produce frozen foods at temperature as low as -35 Degree Cel. to
retain total
freshness.
International stardards, procedures and support services.

Dynamix Diary
Supplier of Cheese
Dynamics has brought immense benefits to farmers in Baramati, Maharashtra
by setting up a network of milk collection centres equipped with bulk coolers.
Easy accessibility has
enabled farmers augment their income by finding a new market for surplus
milk. The factory has:
Fully automatic international stardard processing facility.
Capability to convert milk into cheese, butter/ghee, skimmed milk powder,
lactose, casein &
whey protein and humanised baby food.
Stringent quality control measures and continuous Research & Development
Amrit Food
Supplier of long life UHT Milk and Milk Products for Frozen Desserts
Amrit Food, an ISO 9000 company, manufactures widely popular brands -
Gagan Milk and Nandan Ghee at its factory at Ghaziabad, Uttar Pradesh.
The factory has:
State-of-the-art fully automatic machinery requiring no human
contact with product, for total hygiene.
Installed capacity of 6000 ltrs/hr for producing homegenised UHT (Ultra High
Temperature)
processed milk and milk products.
Strict quality control supported by a fully equipped quality control laboratory.
Radhakrishna Foodland
Distribution Centres for Delhi and Mumbai
An integral part of the Radhakrishna Group, Foodland specialises in
handling large volumes, providing the entire range of services including
procurement, quality inspection, storage, inventory management, deliveries,
data collection, recording and reporting

TRAINING AND DEVELOPMENT

McDonald’s Center of Training Excellence

Since its
inception,
training at
Hamburger
University has
emphasized
consistent
restaurant
operations procedures, service, quality and cleanliness. It has
become the company’s global center of excellence for
McDonald’s operations training and leadership development.
In 1961, Fred Turner, McDonald’s former senior chairman and
Ray Kroc’s first grillman, founded Hamburger University in the
basement of a McDonald’s restaurant in Elk Grove Village,
Illinois.
 February 24, 1961, Hamburger University's first class of
14 students graduated 
 Today, more than 5,000 students attend Hamburger
University each year 
 Since 1961, more than 80,000 restaurant managers, mid-
managers and owner/operators have graduated from this
facility

IN INDIA
The franchises of McDonald in India follow the guide line of
Hamburger University to train their new employees

SELECTION APPROACHE

Under McDonald's recruitment policy, each individual restaurant is responsible

for filling hourly-paid positions. The Management Recruitment department in
East Finchley co-ordinates the recruitment of managers.

For recruiting hourly-paid employees McDonald's use several avenues.

Positions are generally advertised in the restaurant. The company's recruitment
history shows this is the best method of hiring quality staff e.g. people living
locally and/or friends of existing employees. McDonald's also uses local job
centres, career fairs and other local facilities. It is vital to use effective hiring
material with a clear message targeted at the right audience.
A recruitment exercise often generates more applications than there are
positions available. The manager will select the applicants to be interviewed and
will conduct the interviews.

Over 60% of restaurant crew are aged 20 or under and; for the majority of
applicants, a job with McDonald's would be their first experience of
employment. For many young people, McDonald's also offers a career
opportunity. A well-run interview will identify an applicant's potential to be a
successful McDonald's employee. To find people who will be committed to
excel in delivering outstanding service, McDonald's scripts an interview guide
that helps the company predict how an applicant's past behaviour is likely to
influence future performance. It uses a fact-based decision-making process. The
questions look for actual events or situations rather than allowing applicants to
give a general or theoretical response. Interviewers look for behavioural
evidence in the applicant's life history that fits with the requirements of the job.
The interviewer rates candidates on their responses and offers jobs to those who
earn the highest ratings.
McDonald's future managers come from two main sources. More than half of all
salaried management positions are taken up by hourly-paid employees who earn
promotion. The remainder are predominately graduates.

Wherever possible, McDonald's directs applicants towards applying on line at

www.mcdonalds.co.uk. People who cannot access the web can call the
Recruitment Hotline, or pick up a pre-paid Business Reply Card from a
McDonald's restaurant.

The selection process includes an initial online psychometric test. This test
produces an initial score. The applicant then attends a first stage interview and
is offered "On Job Experience" (OJE). This is a 2-day assessment in a restaurant.
Successful completion at OJE will lead to a final interview, after which the
manager decides whether or not to hire the applicant

This selection is followed in all the franchises of McDonald in all his host
country as well as in home country
 Conclusion

The Indian Quick Service Restaurant industry is growing at a very

fast pace. Per capita income, urbanization and youth population is
also increasing in India. So India is a very potential and attractive
market for the quick service restaurants. McDonald’s should make the
most of the opportunity and should penetrate deep into the market by
increasing the number of restaurants in India. It should concentrate on
increasing its base in the smaller cities which can form potential
markets for McDonald’s.
Thank You!!!