Brief analyzed about Mc Donald’s

 
Profile of McDonalds

Type	Public (NYSE: MCD)
Founded	May 15, 1940 in San Bernardino, California McDonald's Corporation, 1955 in Des Plaines, Illinois
Founder(s)	Dick and Mac McDonald McDonald's restaurant concept Ray Kroc, McDonald's Corporation founder.
Headquarters	Oak Brook, Illinois, USA
No. of locations	31,000+ worldwide[1]
Area served	Worldwide
Key people	James A. Skinner (Chairman) & (CEO)
Industry	Restaurants
Products	Fast Food (hamburgers • chicken • french fries • soft drinks • milkshakes • salads • desserts • breakfast)
Market cap	US$ 60.07 billion (2008)
Revenue	▲ US$ 22.79 billion (2007)[2]
Operating income	▼ US$ 3.879 billion (2007)[2]
Net income	▼ US$ 2.359 billion (2007)[2]
Total assets	▲ US$ 29.391 billion (2007)
Total equity	▼ US$ 15.279 billion (2007)
Employees	390,000 (2008)[2]
Website	McDonalds.com

History of McDonald’s

McDonald’s is one of the leading restaurant chains in the world, touching the lives of people every day. The long journey of the burger brand started in 1940, when two brothers, Dick and Mac McDonald opened the first McDonald’s restaurant in San Bernardino, California. Initially, they owned a hotdog stand, but after establishing the restaurant they served around 25 items, which were mostly barbequed. It became a popular and profitable teen hangout. In 1948, the brothers closed and reopened the restaurant to sell only hamburgers, milkshakes and French fries.

                                                                                                                                                                                                                                                                                                                                                                          Dick and Mac

The restaurant gradually became famous and the McDonald brothers begin franchising their restaurant in the year 1953. Neil Fox took the first franchise and under it; the second Mc Donald’s restaurant were open in Fresno. In 1958, the restaurant chain sold its 100 millionth hamburger.

Later that year, the Hamburger University was open, which gave away McDonald's restaurant Bachelor of Hamburgology degrees to students. In 1963, the mascot Ronald McDonald was born as a part of a marketing strategy in US. In 1967, the first restaurant outside US was open in Richmond, British Columbia. Happy Meal has introduced in US in 1979. In 1984, the company became the main sponsor of the Summer Olympics.

In 1988, the first restaurant opened in a communist country in Belgrade, Yugoslavia, in 1992, the largest McDonald’s was opened in Beijing, China, having over 700 seats and was later demolished. In 1993, the first sea-going restaurant has established, In 1994, McDonald’s bagged the Catalyst Award for its program for ‘fostering leadership development in women’. In 1996, the first Indian restaurant has opened.

                               Mc Donald’s in 1940

In 2003, the company launched the ‘I love it’ campaign. In 2005, McDonald has started its McDelivery service in Singapore. In 2006, the chain announced that it would publish nutritional information on its packaging of all its products, for the benefit of the customers. Considering the huge success and brand McDonald’s has become, the food chain is spread across the world in almost all the major cities of the globe. Being economic and user friendly, the success rate of the company cannot be doubted.

Types of restaurants

Most standalone McDonald's restaurants offer both counter service and drive-through service, with indoor and sometimes outdoor seating. Drive-Thru, Auto-Mac, Pay and Drive, or McDrive as it is known in many countries, often has separate stations for placing, paying for, and picking up orders, though the latter two steps are frequently combined; it was first introduced in Arizona in 1975.

Mc Donalds Head Quotes

Specially themed restaurants also exist, such as the "Solid Gold McDonald's," a 1950s rock-and-roll themed restaurant. In Victoria, British Columbia, there is also a McDonald's with a 24 carat (100%) gold chandelier and similar light fixtures.

To accommodate the current trend for high quality coffee and the popularity of coffee shops in general, McDonald's introduced McCafés. The McCafé concept is a café-style accompaniment to McDonald's restaurants. McCafé is a concept of McDonald's Australia, starting with Melbourne in 1993. Some locations are connected to gas stations/convenience stores, while others called McDonald's Express have limited seating and/or menu or may be located in a shopping mall. Other McDonald's are located in Wal-Mart stores. McStop is a location targeted at truckers and travelers which may have services found at truck stops.

Ownership

Franchise: A business licensed to use the name, logo and expertise of an existing, well-known business.

The benefits of a franchise are:

The Expertise of the McDonalds Franchisor

When you buy a franchise to McDonalds , you are purchasing the years of experience and the proven business model of the franchise system, also known as the McDonalds franchisor. In any new business, much time and money are spent in trial and error. A proven franchise may eliminate many of the start-up problems. A franchise enables you to open a franchise business with little or no previous experience in a given industry.

Instant Brand Recognition
In addition to the McDonalds franchisor's experience and business model, purchasing the right to license the trademarks of the business. Depending on the size of the McDonalds franchisor and how long the system has been in place, these trademarks can bring instant goodwill and credibility to your business and the products and services provide.

McDonalds Aims and objectives
Mission statement

McDonald’s vision is to be the UK’s best quick service restaurant experience

Aims and objectives

McDonalds’ aim (‘vision’) is to be the ‘world’s best quick service restaurant experience. This means:

Running and opening great restaurants and providing exceptional quality, service, cleanliness and value. This aims shows that McDonalds wants to keep improving the quality of there products and the cleanliness of their restaurants.

McDonalds will not work with any supplier who does not adhere to the standards required by UK and EU legislation regarding animal welfare. Transportation, husbandry inspection and quality, hygiene. This aim shows that McDonalds has high standard so that the restaurants only serve fresh and clean products.

As an independent registered charity, RMCC’s main focus is establishing Ronald McDonald’s houses and Ronald McDonald family room at children’s hospitals. This aim show that McDonalds is a caring company and continually helps there consumers.
Measurement of success
McDonald’s collects information from:

* Profits
* Market share
* Growth
* Awards
* Meeting aims and objectives

Profits
McDonalds collects information form their profit records to see if there has been any change form pervious years, McDonalds can measure its success by calculating the difference form the year/months before.

Market share
McDonalds collects information from their market share, by analyzing the changes in the market.

Growth
McDonalds can measure its success by growth of the company, for example the amount of new franchises opening and new countries that McDonald’s restaurants are being established.

Awards
McDonalds can measure its success by that awards it receives for its health and safety, environmental policies and food quality.

Meeting aims and objectives
McDonalds can measures it’s by seeing if they meet there aim and objectives. For example its quality, service aim cleanliness aims.

Competitors

Ron Paul, president of Economic Inc., a restaurant consulting company in Chicago, said that the reorganization ''is a fundamental change in the way McDonald's operates, and it's a good move for a company of their size.'' He added: ''McDonald's isn't just competing with other giant national chains, but with a host of nimble regional competitors.''

There is a battle for customers currently raging among competitors and McDonald's is not keeping pace," said an internal memo, signed by Neal Ruby, head of the association of 560 McDonald's restaurants in the region. Without taking significant steps, it warned, there will be no reversal in the "steep declining trend" in sales and customer count.

McDonald's products

Products

The range of foods offered depends on the time of day. Lunch items such as hamburgers and fries are generally not served during breakfast time, from store open (or about 4:00am in 24-hour stores) to 10:30am on weekdays or 11:00am on weekends. In some 24-hour McDonald's restaurants.

Burgers

All meat-patty based sandwiches are grilled, with seasonings, consisting primarily of salt and black pepper.

A freshly prepared Big Mac

•        Big Mac,
•       (Double) Quarter Pounder (with Cheese)
•       Hamburgers and cheeseburgers

Chicken, fish and pork

•      McChicken - McSpicy -]
•      Premium chicken sandwiches -.
•     Southern Style Chicken Sandwich   Snack Wrap Chicken Fajita - Chicken McNuggets Filet-O-Fish - A whitefish fillet with tartar sauce

•      McRib –

Other products

• cherry tomatoes
• The Happy Meal. McDonald's created the concept of a children's meal when it introduced
• Deli Choices is a line of deli-style sandwiches that are sold internationally
• French fries, popcorn and soft pretzels
• McLobster - McCrab - Poutine –

 Beverages

• Coca-Cola,, S&D Coffee,. Green Mountain Coffee Roasters  Hot and iced tea,  hot chocolate, various juices Lattes, espresso, Iced coffee, Milkshakes s

 Desserts

• Soft serve ice cream, Cookies McDonaldland ,Pies , The Fruit and Yogurt Parfait Smoothies are available in some locations, mango and strawberry

Discontinued menu items

• Hulaburger,McFeast, McDLT: The McDLT (McDonald's Lettuce and Tomato) , Beefsteak Sandwich , Onion Nuggets ,McLean Deluxe ,Triple Ripple ,Arch Deluxe and others

Food quality

The responsibility of serving 3 million McDonalds customers per day, makes quality a consistent goal. The McDonalds Company strives to ensure quality from the crop to counter. To that end, McDonalds requires the highest standards and specifications, not just for product ingredients: every detail of production, transport, delivery, preparation and service has also exhaustively monitored.

The McDonalds company has highly trained team of quality assurance professionals, whose jobs includes verifying the companies supply chain though audits and site visits. Independent food
safety audits are also used on a regular basis to access McDonald’s supplier facilities.

New   product      development

McDonalds always has and always will continue to develop new products that satisfy customer’s expectation for great taste and great value. The company’s new products development team works with suppliers to expand the menu with new core and promotional food items. Our quality
assurance experts help to ensure that all food meet McDonalds high quality and safety standards.

Quality     Assurance
McDonalds is committed to long-term relationships with a limited number of supplier’s partners who share the company’s vision ‘to be the best’. For suppliers this means investing with the confidence that they been treated as partners in the businesses.

McDonald’s suppliers follow the exacting standards of quality, value and cleanliness set by the company. In its McDonalds preference wherever possible to purchase from supplies in the UK, providing they can meet McDonalds exacting product and hygiene standards, and are completive. McDonalds works closely with franchises, suppliers and its logistics provider to meet their commitments to quality, nutrition, and hygiene and food safety.

McDonald's Management Structure

According to some of McDonald's 2,000 American franchise operators who have spoken with the 54-year-old Mr. Greenberg about the reorganization, those changes involve the most significant shake-up of the company's top-heavy United States management since Ray Kroc joined the company in the early 1950's.

The McDonald's restaurants all have a flat structure. There is one manager who is in control of the other assistants and employees. McDonald's corporation has a hierarchical structure. This is a huge company with lots of different departments which has to be organized very well, because if the employees aren't directed in the right way they won't do their jobs right. So this way it is all ordered and the people can work undisturbed, this saves time and money for the business.

Managers name of Mc Donald’s

 Andrew McKenna

Chairman

 Jim Skinner

CEO; Vice Chairman

Richard Floersch

Chief Human Resources Officer; Executive VP 

 Denis Hennequin

President, McDonald's Europe

  

Tim Fenton

President of Asia, Pacific, Middle East, and Africa

  

Mary Dillon

Global CMO; Executive VP 

Peter Bensen

CFO; Executive VP 

 Jose Armario

Group President of McDonald's Canada and Latin America

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Don Thompson

President, McDonalds USA

  

Steve Plotkin

President, West Division 

 Karen King

President, East Division 

  

Janice Fields

COO, McDonalds USA; Executive VP

Jim Johannesen

President, Central Division USA

 Gloria Santona

Executive VP; General Counsel; Secretary 

Jeff Stratton

Corporate VP; Worldwide Chief Restaurant Officer

 Ralph Alvarez

COO; President

McDonalds Controlling Technique and Process

Planning profit and cost control of McDonalds

McDonalds top management said that implementing “planning McDonalds profit and cost control “program into our organization can be fun, exciting, stimulating and challenging.

McDonalds of cost control is very important to a food service operator and it can give a better return on time spent than anything else in McDonald’s food facility. The McDonalds earn maximize profit through experience, knowledge, and a good business sense. It requires planning and good supervision to ensure that McDonald’s employees follow through on McDonalds plan.

Planning profit and cost control is an attitude and it needs McDonald’s staff full support. McDonalds cost control involves every one of McDonald’s employees because every minute of the day, in all parts of restaurant, someone is doing something that affects costs. McDonalds cost control involves setting goals and training employees.

The McDonalds planning profit and cost control system is complete and fully coordinated, and can been implemented on a daily basis for “McDonalds daily flash reports” and on a weekly and monthly basis for more detailed information.

Cost control tools of McDonalds

Planning McDonalds profit is internal cost control tools of McDonalds. In many times internal cost control is confused with McDonalds ACCOUNTING. There is a definite distinction between internal cost control and accounting.

Planning profit of McDonalds is a business indicator that is set to provide the food service operator with a DAILY reading on high cost and or high variance items.

McDonalds planning measures performance by comparing actual performance with the McDonalds budgeted performance of any and or cost items. The most difficult part of any internal McDonalds cost control system is to set McDonalds standards that are realistic and achievable under normal conditions.

McDonalds cost control is a team effort and it takes team involvement in order to be a huge McDonalds success. The following information on the installation of “ the planning profit and cost control of McDonalds “ program creates McDonalds group involvement during installation and is carried over into the actual operation phase.

It is the targeted ideal food cost percentage that determines McDonalds menu prices. McDonalds menus are recommended that do a menu analysis taking into consideration  the following;

1.    The targeted ideal McDonalds food cost percentage seek to achieve on individual menu items should vary inversely with risk of loss or spoilage.

2.    The McDonalds preparation time needed to prepare the menu item should also be taken into consideration. McDonalds menu items require intensive prep laber should have a proportionally lower food cost.

3.    The targeted ideal McDonalds food cost percentage should vary in direct proportion to sales volume.

4.     Ideally, one wishes that every item on the menu been characterized in any one of volume. McDonalds menu items may be categorized in any one of the following four categories:

High volume / high cost = Popular but not profitable

High volume / low cost =  Popular and profitable

Low volume / high cost = Neither popular nor profitable

Low volume / low cost   = Not popular but profitable

It is important that ascertain McDonalds targeted ideal food cost percentages according to cost/ risk factors and the sales volume of each menu item.

On one hand, McDonalds customers must be assured of sufficient value to warrant their continued business. On the other hand, McDonalds ensure that earn sufficient profit to remain in business and to maintain desire lifestyle. The following is only suggested target / ideal food cost guideline.

Appetizers             = 20-35%                                Breakfast entrees                   =25-35%

Children meals      =35-50%                                 Breakfast side orders  =20-30%

French fries           =10-20%                                 Lunch entrees             =30-35%

Beverage              =5-10%                                   Lunch side orders                   =20-35%

Soft ice cream      =15-25%                                 Dinner entrees                        =30-45%

Desserts                =25-50%                                 Dinner side orders                   =30-50%

Salad bar               =30-50%                                 Salads                         =30-40%

Total Quality Management (TQM) 5 performance objectives

McDonalds is following many methodologies and techniques for improving operational performance has be developed over the years – these provide structured ways of improving McDonalds  performance. To be able to improve performance effectively, it is important to identify the particular factors of performance to work with. Furthermore, McDonalds is a follow-up with an action plan to improve the outcomes. The five main performance objectives are:

•                  Speed
•                  Cost
•                  Quality
•                  Dependability
•                 Flexibility

Five objectives using the drive-thru process of McDonalds:

• Speed- How much time does a customer spend in McDonalds drive-thru? McDonalds’ drive-thru target is 90 seconds.

Cost Is McDonalds charging a lot to its customers. Can they bring down its costs further?
 Value meal strategy: McDonalds can employ the value meal strategyü, which allows customers to buy a sandwich, French fries, and beverage at a discount when purchased together.

• Quality- McDonalds stand in terms of its service.  Not as good as, it used to be. Probably the meals are okay.  Improve the training process and taking care of employees: McDonalds can include online e-learning tools for its restaurant staff.

• Dependability- McDonalds make its processes more reliable.

• Flexibility- McDonalds adjust its processes to meet customer requirements.
 Multiple trained staff: McDonalds can have a multiple trained staff  in order to be flexible.

Problems Occurred and Action to Overcome the Problems

The McDonalds will occurred the problems or conflict, if they will take the action to that problem in many ways. And McDonalds are facing many types of problem. It can begin to determine the causes of a conflict and design resolution strategies that will have a higher probability of success. McDonald's has solved the all problem by making quality food supplies part of their success.
There are many types of reasons why conflicts may happen between Human
Resources Functions, such    as;

Relationship  Conflicts
Relationship problems often fuel disputes and lead to an unnecessary escalating spiral of destructive conflict. Supporting the safe and balanced expression of perspectives and emotions for acknowledgment (not agreement) is one effective approach to managing relational conflict.


Data Conflicts
Data conflicts occur when people lack information necessary to make wise decisions, are misinformed, disagree on which data is relevant, interpret information differently, or have competing assessment
procedures. Most data conflicts will have "data solutions."

Interest Conflicts
Interest-based conflicts may occur over substantive issues (such as money, physical resources, time, etc.); procedural issues (the way the dispute is to be resolved); and psychological issues (perceptions of
trust, fairness, desire for participation, respect, etc.). All of these interests may be jointly addressed. Interest-based conflict is best resolved through the maximizing integration of the parties' respective interests, positive intentions and desired experiential outcomes.
Structural Conflicts
Forces external cause structural conflicts to the people in dispute. Limited physical resources or authority, geographic constraints (distance or proximity), time (too little or too much), organizational
changes, and so forth can make structural conflict seem like a crisis. It can be helpful to assist parties in conflict to appreciate the external forces and constraints bearing upon them. Structural
conflicts will often have structural solutions. Parties' appreciation that a conflict has an external source can have the effect of them coming to jointly address the imposed difficulties.

McDonald's Sales and Marketing Strategy

McDonald’s is the world’s largest fast-food restaurant chain. It has more than 30,000 restaurants in over 100 countries. Over one billion more customers were served in 2007 than in 2006. Although net income was down by $1.1 billion in 2007, McDonald’s sales were up 6.8%, and revenue was a record high of $23 billion. “The unique business relationship among the company, its franchisees and suppliers (collectively referred to as the System) has been key to McDonald’s success over the years. The business model enables McDonald’s to play an integral role in the communities we serve and consistently deliver relevant restaurant experiences           to        customers.”    (McDonald's,   2008,  25).

McDonald’s overall strategic plan is called Plan to Win. Their focus is not so much on being the biggest fast-food restaurant chain, rather it is more focused on being the best fast-food restaurant chain. With McDonald’s growing global brand image and its emphasis on the five factors of exceptional customer service, this should help them increase sales and net income. With the initiative of remodeling and upgrading existing franchises, this will give the customer a more pleasant and friendly place to dine out at. With McDonald’s marketing campaign for the 2008 Olympics, they were an integral part of the games and this only enhanced McDonald’s brand image in a positive way. With the recruitment and training initiatives for current employees or future prospects, this will allow McDonald’s to achieve less of an already high turnover ratio.

McDonalds Promotional Objectives
The companies’ main objective is to be the family restaurant that people enjoy more.

McDonalds will become the world’s best quick-service restaurant. Increasing sales through promotions will enable them to continue their program of expansion.

Menu. McDonalds have an objective to continual enhance and improve their menu. This will better satisfy their customers and give customers more reason to visit.

Advertising

McDonald's advertising focuses on two key areas:

1. Promotional advertising
2. Brand advertising

Promotional Advertising
Promotional advertising gives people a new reason to visit McDonald's or to try McDonald's for the first time.

McDonald's Marketing researches, designs, plans and implements great new offers such as novelty burgers, games, premiums and Happy Meals which offer great value and new taste sensations.
Brand Advertising
McDonalds Brand advertising promotes and enhances the personality of our brand and builds a relationship with our customers.

Our promotional and brand advertising are designed to complement each other and keep McDonald's at the top of our customers' minds.

Staff Training

McDonald's Staff Training Programme is an on-the-job vocational experience that teaches skills transferable to other industries.
All employees-learn to operate state-of-the-art foodservice equipment, gaining knowledge of McDonald's operational procedures.

Step-by-Step manuals and video tapes cover every detail, from how to make a Big Mac, to how to deliver exceptional service to customers. Employees also learn how to train and supervise others.

Recommendation

The McDonalds is very old restaurant, every things are perfect but also they will increase more facilities and qualities get rich and first place restaurant of the world

The McDonalds must identify the they are competitors then want to research what are the special things are included in competitors restaurant, thereafter McDonalds will be increase the quality and introduce new products for win the competitors restaurants.

McDonalds was got many branches in many countries, that are countries followed difference culture and food culture. Therefore, McDonalds will want to be start, build the restaurant and give the service type for suitable countries cultures.

McDonald’s menus are mostly suitable for rich peoples only, so McDonalds want to be creating new low price packages for low incomes level peoples.

McDonalds can increase the sales and profit through the will open branches for only children. These children branches are must be included all facilities for children such as park, games house etc….

Moreover, increase the general advertisements and create the children advertisements. Those are advertisements must be publish in traditional media such as BBC, CNN, MTV famous news paper and also children TV channel and children book.

Now also McDonalds do not have door delivery service. So if McDonalds start the door delivery service that can increase the sales and McDonalds profit.

In addition, the common things are increase the products qualities, increase the branches quantities and to give the more job training to staff for more efficiency.

References

      McDonald's (2008, March 1). 2007 Annual Report. Retrieved September 3, 2008, from http://www.mcdonalds.com.

      Peter, J. P., & Donnelly, J. H.Jr. (2007). Marketing Management (8th ed.). New     York: McGraw-Hill Irwin.

      McDonald’s Web site: http://www.mcdonalds.com

      John F. Love, McDonald’s Behind the Arches

      Cliff Bowman, The essence of strategic Management,

      Laurie j. Mullis, Management and organizational behavior

      Tim Hannagan, Management Concept and practices

      Thompson Strickland, Strategic Management