Case Study On McDonalds

CASE STUDY
ON MC
DONALDS
BY: ANKIT KAITH
(1920991031)
A R YA N S U D A N
(1920991047)
INTRODUCTION
• McDonalds is a large corporation in the fast food industry.
• They have been around since 1955 when RAY KROC started the chain of
McDonalds .They have been growing ever since.
• The majority of the restaurants are owned through franchises.
• They employ 4,47,000 people.
• They have over 3,200 restaurants in over 119 countries.
• The majority of the McDonalds franchises are owned by Individual Franchises.
• The McDonalds Brand is one of the most well known Brands in the world.
MISSION & VISION OF
MCDONALDS
→ MISSION: McDonalds Brand mission is to be our customers favorite place and way to eat
and drink. Our Worldwide operations are aligned around a global strategy called the Plan to Win,
which center on an exceptional customer experience – People, Product, Place, Price, Promotion.
We are Committed to continuously improving our operations and enhancing our customers
experience.
→ VISION: “McDonalds vision is to be the Worlds best quick service restaurant experience.
Being the best means providing outstanding quality, Service, Cleanliness & Value, so that we
make every customer in every restaurant smile”.
HISTORY
• In May 1940, at San
Bernardino,
California, two
brothers named
Richard and Maurice
McDonalds opened
their “McDonalds Bar-
B-Que” restaurant.
HISTORY
• On December12,1942 the name changed to “McDonald”.
• In 1954, Ray Kroc, a seller of Prince Castle brand multi mixer visited
“McDonalds” and offered to open franchise the restaurant elsewhere.
• In April 15, 1955, Ray Kroc opened his first Mc Donald's restaurant at
Des Plaines, Illinois.
• The McDonalds restaurant was head quartered was head quartered at
Oak, Brook, Illinois, U.S. they decided to move it to Chicago in 2018.
• The Subsidiaries of McDonald include McDonalds ocean Eve, SF, Mc
Donald's Canada etc.
MC DONALDS IN INDIA
• McDonalds opened its door in India in October 1996 at Basantlok in
Vasant Vihar.
• They have restaurant in Delhi, Indore, Pune, Ahmedabad, Vadodara,
Ludhiana, Jaipur etc.
• The Indian Market was different in terms of Customers tastes, Value
System, Lifestyle, Language, Perception and purchasing power as
compared to most of the other countries.
PRODUCTS
OFFERED BY
MCDONALDS :
• → Hamburgers
• → Chicken
• → French Fries
• → Coffee
• → Sandwiches
• → Snacks & Sides
• → Soft Drinks
• → Milk Shakes
• → Salads
• → Deserts
SWOT
ANALYSIS OF
MC DONALDS
STRENGTH
→ Their main focus is upon Quality, Service, Customer and Value.
→They stick on their policies..
→McDonalds dominates most of the international markets like Japan,
Canada, Germany, Australia, England.
→ It is recognized as the tenth most valuable Brand.
→Tasty Food.
→Technology Initiatives.
→Highest Brand value in Fast Food Brand.
→Improved Quality Control and Health Protocols.
→Leading Quick Service Restaurants.
WEAKNESS
• Competition with the competitors in the fast food sectors resulting in low
revenue.
• McDonalds expanded too fast, but Burger King and KFC has tastier meals.
• Low Shelf life of majority of the products.
• High Employee turnover in stores.
• Yet to accomplish going with the trend of organic and healthy food.
OPPORTUNITIES
• In 1955 no such fast food providers as competitors against McDonalds in their
home company.
• After they flourish in their home country they found opportunities in
introducing there product globally.
• It can adopt to the needs of the society and undergo an innovative product line.
• It can research ways to include healthy products to their menus across the
world.
• It can upscale some of its restaurants locations to attract more customers.
THREATS
• Regional and Cultural differences.
• They had to alter their menu or product for different countries and moreover
they have the risk of people denying it. For Example: the menus in Arab
countries comply with Islamic food preparations laws.
• They have the competitors like KFC, Pizza Hut, Burger King etc.
• Health issues regarding Fast Food chain.
• Foreign currency fluctuations are regarded as a major problem.
COMPETITORS
HOW DID THEY HANDLE THE
THREATS?
• By moderately pricing and limited menu.

• BY incorporating the local dishes with standard menu.
• Had separate menu for different countries.
• Special R&D team for making their products much
more tastier and eye appealing.
CHALLENGES FACED TO ENTER INDIAN
MARKET
• Surveys commissioned by McDonalds showed a large eating out market in

India with an increasing propensity to spend by customers.
• Indians wanted to taste American fast food, but it could not be a substitute for
Indian food. Hence adapting McDonalds menu to Indian tastes was critical if
they were o succeed in India.
• One aspect unique to India was that half its population was vegetarian for
whom a separate menu had to be created.
PROBLEMS
• Indian Diversity
• Regional/Cultural constraints
• Environmental and animal activists opposed the entry of fast food (like KFC).
• The idea that this type of junk food destroys ecological balance and cause
several disorders.
• Perception that McDonalds is a food for Rich People.
• Poor Transportation and Storage Infrastructure.
• Lower quality Agricultural products.
CASE:
• The case examines the controversy involving the global fast food major McDonald's, which
was accused of wrongfully selling its French fries as 100% vegetarian products when they
contained beef flavoring. It explores in detail the events that led to the controversy and the
company's reactions to the allegations. The case also discusses the eventual settlement of the
lawsuit with the company paying damages to vegetarian groups and accepting that it had gone
wrong,
• In 1996 When McDonalds entered the Indian Market with their products they started selling
French Fries and Hamburgers which are basically made of beef or pork (Cow flesh) Burger.
India is very cultured country where killing animals is an act of sin in religion and is also
illegal in India. It is considered as a shameful act as various religions have different beliefs
with them.
• As McDonalds faced a major setback as they hurt the feelings or beliefs of many Indians, in
India animals are treated as Gods and for that people have done many movements and
company have faced many Legal issues for damaging values and beliefs of people in India
SOLUTION
• India has a huge population of vegetarians. To cater to this customer segment, the company
came up with a completely new line of vegetation items like McVeggie burger and McAloo
Tikki. The separation of vegetation and Non-Vegetarian sections is maintained throughout the
various stages.
• A restaurant management system(RMS) was created for efficient management of the
operations.
• Separate food lines were maintained throughout the various stages of procurement, cooking
and serving.
• Separate kitchen for Vegetarian and Non-Vegetarian food were created in the restaurants with
different uniforms for the kitchen staff.
• Separate areas for preparation and wrapping created.
SOLUTION (CNTD)
• The Vegetarian menu was printed in Green and the Non-Vegetarian menu in
Purple to clarify distinguish the menus.
• Customers were given RMS Brochures to assure them of clear segregation of
vegetarian and non-vegetarian food and taken on kitchen tours to build there
confidence, since the hardcore vegetarians usually did not prefer to enter places
where non-vegetarian food was served.
WHY MCDONALD
SUCCEEDED?
• Mc Donald has succeeded as it was one of the first restaurant to welcome children
and family and thus created an image of a family restaurant.
• It come forward with better cooking procedures and smarter kitchen layouts with
strict controlling.
• The children not only received warm welcome but also they were entertained with
crayons and paper and many other special gifts. They were also entertained by the
Clown Ronald Mc Donald who could speak 20 languages.
• Asia was viewed as a potential customers but with so much diversity, cultures and
traditions.
• The marketing strategies has to be changed in order to get established in Asia.

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CASE STUDY

• By moderately pricing and limited menu.

• Surveys commissioned by McDonalds showed a large eating out market in

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