Presented by:

Bavarva Ruchita S Shah Priyanka M Kotecha Vishal K Patel Akanksha M Gandhi Manushi N

Guided by:
Prof.Chitral Patel

Submitted To:
Hasmukh Goswami Collage Of Engeneering In partial fulfillment of M.B.A. Program of GUJARAT TECHNOLOGICAL UNIVERSITY

Table of Content
y Introduction about U.S.A and MacDonald's. y Factor affecting selecting country. y Operation Management. y Export and import strategy. y Benefits . y Recommendations and suggestion. y Conclusion .

Introduction about U.S.A and MacDonald's

Information about U.S.A.

y The United States of America y

y y

is a Federal constitutional Republic comprising 50 states and federal district. The country is situated mostly in central North America, where its 48 contiguous states and Washington, the capital district. At 3.79 million square miles and with over 310 million people, the United States is the third or fourth largest country by total area, and the third largest both by land area and population. The U.S. economy is the world's largest national economy, with an estimated 2010 GDP of $14.780 trillion. On July 4, 1776, they issued the Declaration of Independence, which proclaimed their right to self-determination and their establishment of a cooperative union. The current United State Constitution was adopted on September 17, 1787.

Information about the Company

y McDonald's is the leading global foodservice retailer with more than 32,000

local restaurants serving more than 64 million people in 118 countries each day. More than 80% of McDonald's restaurants worldwide are owned and operated by independent local men and women.
y We serve the world some of its favorite foods - World Famous Fries, Big

Mac, Quarter Pounder, Chicken McNuggets and Egg McMuffin.

y Founder of , McDonald's y y y y y

Ray Kroc. Number of Global Restaurants: More than 32,000 Number of Countries: 118 Number of worldwide employees: 1.7 million Percentage of franchised restaurants around the world: More than 80% Chief Executive Officer: Jim Skinner

History of the company

y The business began in 1940, with a restaurant opened

by brothers Richard and Maurice McDonald in San Bernardino, California. y McDonald's first filed for a U.S. trademark on the name McDonald's on May 4, 1961, with the description "Drive-In Restaurant Services. y In the same year, on September 13, 1961, the company filed a logo trademark on an overlapping, double arched "M" symbol.

y The first McDonald's restaurants opened in the United

States, Canada, Costa Rica, Panama, Japan, the Netherlands, Germany, Australia, France, El Salvador and Sweden, in order of openings. y The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc, in Des Plaines, Illinois, on April 15, 1955. y the ninth McDonald's restaurant overall. 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.

McDonald s vision & mission

y McDonald's vision

McDonald's vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile.
y McDonald's Missions

Be the best employer for our people in each community around the world Deliver operational excellence to our customers in each of our restaurants; and Achieve enduring profitable growth by expanding the brand and leveraging the strengths of the McDonald's system through innovation and technology.

Factor affecting selecting country

PESTEL Analysis
Pestel is an analysis of the external macro environment in which a business operates. PESTEL stands for political, economic, social, technology, environmental and legal factors.
y Political Factors y Economic Factors y Socio-Cultural Factors y Technological Factors y Environment y Legal Factors

SWOT analysis
Strengths :y It is a global brand that owns 32,000 restaurants serving in 118 countries. Of these 32,000 restaurants at least14,000 restaurants are situated in the US. y It is recognized as one of the world s most recognized logos. y It has located itself in major airports, cities, highways, tourist locations, theme parks.

Weaknesses :y It uses advertising that mostly targets children. y High employee turn-over. y Lack of innovative products. Opportunities :y It can adapt to the needs of the societies and undergo an innovative product line. y It can research ways to packaging which will work as a part of their promotional effort as well as fulfill their social responsibility. y It can upscale some of its restaurant settings at luxurious locations to attract more customers.

Threats :y Foreign currency fluctuations are regarded to be a major problem as it uses standard pricing for its food items. y Health issues regarding the fast food chain. y Heavy investments on promotional campaigns which decrease the gaining of market share. Literacy Rate of USA: y Literacy rate of USA is 99%.

Per capital income of the USA

year Per capital income 2006 44,663 2007 46,406 2008 46,971 2009 45,745 2010 47,084

Operation Management

Business in different country

y y y y y y y y y y y y y y

Argentina Australia Brazil Canada China France Germany Hong Kong India Indonesia Italy Japan Malaysia Mexico

y y y y y y y y y y

New Zealand Philippines Quebec Singapore South Korea Spain Taiwan Thailand United Kingdom United States

Country vise product

y JAPAN-Shrimp burger,mashed potato, cabbage and kastu sauce ,green tea-

flavored Milkshake.

y CHILE - Burger with ketch up y HONGKONG- rice burger y INDIA- vegetarian burger, McAloo Tikki y GERMANY- beer with snakes. y NORWAY- McLaKs sandwich y CANADA-McLobster lobster roll

Above mentioned items is the main item of the country. There are so many items which McDonald s serves in each country. McDonald s also serves chocolates, cute cake, creative sandwiches.

Marketing policy of McDonald s:

y Goal changing from getting bigger, to getting better. y Advertise on the internet more. Get more people to

visit their website. y Secondary advertising y Of course build brand awareness and loyal customers. Attracting: y Secondary advertising customer videos and employee videos Youtube y Advertising on products happy meals, monopoly

Engaging :y Macromedia Flash used extensively y Games for the kids y Online calculators for nutrition information Retaining :y The site uses a common color theme of red, yellow and black, with a logo on the top left y There s a news link that shows the news that goes on, but is only updated once every two months y Overall the site is easy to navigate

Product and Distribution channel

y McDonald's Big Mac combo meal served with French

fries and Coca-Cola. y McDonald's predominantly sells hamburgers, various types of chicken sandwiches and products, French fries, soft drinks, breakfast items, and desserts. y In most markets, McDonald's offers salads and vegetarian items, wraps and other localized fare. y Portugal is the only country with McDonald's restaurants currently serving soup.

Export and import strategy.

International and domestic sales of the McDonald s

As above mentioned domestic sales of the MacDonald s is 35% which is less than international sales that is 65%.

Reason of selling more internationally rather than domestically:

y Globalization of Markets and Competition. y Stages in the International Involvement of a

MacDonald s. y Some forces in international trade.

Benefits

Benefits received from different countries:

y It sets you up for life y It will make new friends y The hours are flexible y There are great discounts y It s a safe environment y Scholarships & grants y Manager benefits

Benefits to Host Country [US]

Restaurant Benefits :y Competitive wages y Free uniforms y Free or discounted meals y Flexible hours y Medical insurance y Prescription drug coverage y 24-hour nurse line access y Vision discount y Available dental

Additional Benefits y Short-term disability y Term life insurance y Paid holidays y Vacation y Educational assistance

Benefits to Parent Country

y Competitive Compensation y Comprehensive Group Insurance Plan y Profit Sharing y Vacation y Sabbatical Program y Service and Recognition Awards y Company Car y Health Club Reimbursement

Benefits to society
Employee Benefits:y Health and Protection y Pay and Rewards y Investing in the Future y Balance Work and Life

Key indicator

Financial indicators
Ratio title Return on asset Return on equity Return on capital Gross profit Total asset turnover Fixed asset turnover Current ratio Quick ratio Proportion 15.86% 39.08% 19.75% 39.58% 8:1 1.2:1 0.9: 1 0.7:1

Recommendations and suggestion

y As we shown that McDonalds target only children segment but y y

y y

they should also divert their focus on young segment. McDonald s should introduce innovative product continually to increase customer loyalty towards them. McDonald s should provide good salary package, benefit , incentive, welfare facilities according to the local requirement of the employee rather than using standard compensation system. McDonald s should make necessary quality management inspection to secure the health of the customer in every country. They should engage with their suppliers and the scientific community in further research on this very important issue to ensure that their position reflects the latest scientific information and sustainability best practices related to all relevant factors, such as animal welfare, safety, quality, cost and the environment.

Conclusion

Today McDonalds has grown to 25000 restaurants in about 120 countries serving 50 million customers daily. McDonald s is also leading in marketing activities which mainly focus on attracting children segment so that they can capture the largest market. Although McDonald s fails to introduce innovative product rapidly but the sales revenue of existing products is also rapidly increasing as we shown in financial information. The products of McDonald s in different countries conform to the cultural and social life style. McDonald s is having a competitive advantage over KFC. Wendy s, burger king, star bucks, taco bell. Becoming the largest fast-food chain in all over the world