By Akanksha Srivastava -Asha Kakoti -K.

Vaibhav -Prashant -Rahul Pandey

CONTENTS
McDonalds through decades Franchising Glocalization Controversies Cantalupo Factor Marketing Environments Conclusion

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Photo from media.mcdonalds.com

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 Opened a drive-in restaurant in San Bernardino, California, in 1937

The brothers developed the idea of a Limited menu

Fast service operation

Self-service

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 Their introduction of the "Speedee Service System" in 1948 established the principles of the modern fastfood restaurant.

The first MASCOT

Ronald McDonald
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Built in 1953, it is one of the world's oldest McDonald's and still serves guests at walk up windows under the Golden Arches invented for the Arizona facility.

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 The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc, in Des Plaines, Illinois, on April 15, 1955. Kroc proposal of franchising to the brothers

Kroc later purchased the McDonald brothers' equity in the company and led its worldwide expansion, and the company became listed on the public stock markets in 1965
Share prices rocketed to $49 within a week.
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 In 1975 ,the first Drive Thru operation was established in Sierra Vista, Arizona The first food chain to provide the list of ingredients used in its products.

Salad introduced in the menu

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McDonalds tie up with Disney and Walmart proved to be a huge success

Opened restaurants in Disney theme parks and promoted Disney movies On the other hand taking stake in Chiptotle Mexican Grill proved to be a setback

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Changing Customer preferences

Reheat able packaged food

Economic turmoil in Asia and Europe contributed to poor sales

McDonalds Problems
Stiff Competitors
Dismal performance in stock market

9/11 Effect

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EXPANSION OF

EXPANSION
One restaurant opened in every 4 hrs

32,400 worldwide and14,000 in U.S

Adapted to the local region

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GLOCALIZATION
Mexican Wrap

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ADVERSE EFFECTS OF EXCESSIVE FRANCHISING

Profits declined from 4% to 15% Made for you kitchen made the franchisees unhappy-20 franchisees leaving every month No proper incentives Poor pricing policy Service suffered and competitors rose
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COMPETITORS

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127 seconds in contrast to 163 seconds of McDonalds Fresh baked sandwich with low fat content

99 CENT Value Meal

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CANTALUPO FACTOR
Conservative Expansion plans Grading system Return to basics, especially QSCV. That stands for Quality, Service, Cleanliness and Value. Dollar value menu Modified operations with longer hours and better drive-through service. Reduced capital spending
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Restoring Glory
For the first Time McDonald's Has Renewed Its Sponsorship for Four Consecutive Olympic Games
Key numbers for fiscal year ending December, 2009: Sales: $22,744.7M One year growth: 3.3% Net income: $4,551.0M Income growth: 5.5%

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 For countries like India where majority are Hindus and Muslims for whom beef and pork are taboo Revamped their Menu specially designed for vegetarians and healthy diet according to different age groups Separate crew members and separate equipment

 In May 2001, a class action lawsuit was filed against McDonald's in Seattle.
The lawsuit alleged that the company had, for over a decade, duped vegetarian customers into eating French fries that contained beef extracts. Although McDonald's initially declined to comment on the issue, the company issued a 'conditional apology,' admitting to using beef flavoring in the fries. Activists of Hindu fundamentalist groups - the Shiv Sena, the Vishwa Hindu Parishad (VHP) and the Bajrang Dal submitted a memorandum to the Prime Minister, demanding the closure of all McDonald's outlets in the country.

 More than 50% of its population is below the age of 25 It is expected that, in 2020, the average age of an Indian will be 29 years, compared to 37 for China and 48 for Japan By 2030, India's dependency ratio should be just over 0.4.

Religious Hindus Muslims Jains

Composition 827,578,868 138,188,240 4,225,053

Population(%) 80.5% 13.4% 0.4%

 Traditionally their target audience were kids Now, McDonalds is the FAMILY RESTAURANT

NATURAL ENVIRONMENT
Associated with social cause: McDonalds Go Green
Green restaurant design in Brazil Drive-thru lane posts lit by photovoltaicgenerated power Intelligent air conditioning all of which contributed to a savings of 50 percent in the use of water and 14 percent in electricity in the restaurants first year of operation.

 Better lighting in Japan Water conservation in Australia

Awarded the U.S. Green Building Council's Leadership in Energy and Environmental Design (LEED) for New Construction certification.

 www.Mcdonalds.com www.wikipedia.com

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