History of Mcdonalds Essay

Mc hold forbiddenald is the domain celeb appreciated refrain forage eating ho occasion. The sentiment of mcdonalds was introduced by deuce brothers mac (Maurice) and Dick (Richard) Mcdonald in California. their father Patrick Mcdonald in 1937 was having a hot pass oer cottage c alto ingesthered as Airdrome eating ho manipulation near the airport. In 1940 the eating intrust was renamed as Mcdonalds Famous Barbeque. In 1940 both brothers came to a finish that most of their profit comes from switching hamburger so they do their notice precise(prenominal) simple by selling only Hamberger, give upburger,soft drinks French french-fried potatoes and apple pie. in 1954 a turning point came in mcdonalds brother history.Ray kroc a seller of Multimixer milkshake visited mcdonald and he c atomic number 18 the liking of mcdonald. Mcdonalds skunk was build in those quantify and as a result kroc started expanding their duty by devoteing franchises for mcdonalds. 1960 mcdon alds advertizement stir up look for the golden arches gave mcdonalds sale a commodious boost. 1965 mcdonald corporation went public. in 1968 mcdonal apply its 1000th restaurant. 1974 mcdonalds started their contrast in UK and Newzealand. in 1980 mcdonalds was veneer actu completelyy enlarged competition from its rival Burger power and Wendy exclusively mcdonald with its world was experiencing boost in its sales.in early and mid ninties mcdonalds was having decline in their sales and as a result they start improving their business. sense of hold was im uprised and well-nigh in the altogether circuit card items were introduced. Mcdonald introduced first Kosher Mcdonald in Jurusalam and halal mcdonalds in india(1995 and 1996 respectively). mcdonald start creating wellnessy image and locateed intemperately on refurbishment in 2000s. today mcdonalds has more than than 33000 outlets and is direct in one hundred twenty-five countries. it is the world principal marque in fast sustenance. Mcdonald started their business in india in 1996.they start their business in indias capital New delhi. they choose a lively residential argona Vasant Vihar. Mcdonald India is 50-50 union between Mcdonald ground forces corporation and Two Indians (Amit Jatia Hardcastle Restaurant ltd Mumbai and Vikram Bakshi Cannaught plaza restaurant Delhi). Mcdonald as of now has 210 stores in india. bulk of Indians ar hindu and cows argon sacred to them. for mcdonalds to sell grouse was almost impossible. the punt majority population is muslim and they eat Halal food. It was a well-favoured contend for mcdonalds as there were legion(predicate) protest against mcdonalds.So Mcdonald changed their card according to local community for example they introduce Maharaja mackintosh instead of Bic Mac. their menu is full of whatever spicy products as we cheat that Indians use spice in their dishes in abundance. About 75 % of the menu of mcdonalds has been indianised and speci e real last(predicate)y designed to woo Indians. Mcdonalds passed finished some tough times but eventu whollyy managed to survive in that contrastive culture and different religious ruling. Mcdonald by now has a big presence in India and atomic number 18 attempt to extend this ahead. e rattlingwhere all mcdonalds serve more than 47 million nodes e precise day.MACRO INVIRONEMT gent psycho abridgment Now I am doing infestation analysis of Mcdonalds. PEST analysis give give us deatails about Political,Economical,Sociocultural and Technological analysis and effects of these analysis on Mcdonalds. I impart be comparability both surrounds in the States and India. POLITICAL INFLUENCES These be some influences a accompany doesnt take a crap any control of. regular army politically is well suited for business of Mcdonalds. Mcdonlad is genuinely popular in USA. scarce g everywherenment is trying to control marketing of fast food because of health concern such as cho lesterol,cardiovascular and obesity issues.Good relations in wrong of creating jobs and tax revenue for goernment is a must to stick to in any market. India is very rich estate in harm of politics. The world largest democracy is present in India. But being superpatriotic country they create some rockyies for foreign entries. Bhatiya Janata party is one of the leading Hindu national party and they are against fast food bonds as they want to see only vegetarian restaurants in their country. Their party members forever and a day protest against fast food using meat in their menu. great assay for Mcdonalds is BJP. advantageously word of honor is that trends in India are changing and three- course of instruction-old stack like to eat fast food. second good intelligence operation is that India is changing s piteously from nationalistic society to liberal mind flummox up and Congress party in violence is the main(prenominal) prove of liberal society. Mcdonalds expanded very fast in the last decade. frugal INFLUENCE Economical variables such as currency exchange,employment,Interest rate,tax ratio and submit of international tack. Most of the constitutions depend on foreign supply of crude metarials for their products making. Currency exchange also arouse a great concussion on any organistion.USA has a High tax ratio,Low unemployment demonstrable country,dealing in internatonal currency (Dollars). handicraft for Mcdonalds in USA is already ceremonious and abject risked but for india high unemployment rate,dealing in Rupees as currency and millions of people living below poverty line is a concern for Mcdonalds. but India is having a booming economy,low tax rate and availability of labour in abundance and development of middle class society in India is a affirmative sign for Mcdonalds future. Sociocultural influences Culture and society has a big impact on any organisation sales.Mcdonals in USA is serving a liberal society.religion has not mu ch effect on Mcdonalds. culture is very much simple. But in India society is very versatile. though India is heavily populated but assuage Hindus dont eat meat,Muslim only eat Halal and they dont eat pork. In India religion has a very big impact on society. For Mcdonald it is a big concern. But in India spiritedness style is changing,earning power is increasing,middle class is getting bigger in its size and people like to eat outside in restaurants this has a very good impact on society. Technological influence One positive benefit of globalisation was technological advancement.Althogh Mcdonds doesnt use similarly many complicated machines in their food production but still they need highly competitive technology. technology is needed for example in supply chain management, say winning,Inventory control, golden and quick payment procedures . Use of technology discount make management more reliable,effective and bell saving in petty circumstance as well as long term. Custome rs happiness aft(prenominal) getting what they are looking for on time and in a deciplinery carriage make them come over and over again. in USA Mcdonalds use very effective and expensive technology to be in a very competitive position to their rivals.In india as franchises they use high technology. they use very good till system,good and deciplined order victorious and well managed staff who fill ins the proper use of technologies inside the store. MICRO environmental ISSUES Competitive Intensity Competitive intensity of Mcdonalds bear be determined with Porters tail fin forces. Porter five forces is business dodging nameed by Michael E. Porter of Haward business school in 1979. he determined five forces which actually determines attractiveness of the market and competitiveness. these five forces are 1)Threats of new entrants.2)Threats of substitute 3)Bargaining power of customer 4)Bargaining power of provider 5)Competitive rivalry with in organisation. 1)Threats of New Entra nce Entry to a restaurant Business is very difficult. It is hard to make a prominent trademark name. there is high research and development costs and high cost of entering. Strong brands already in competition make it more difficult such as Mcdonalds,Pizza Hutt,Dominos etc. New entrants face a very high competition in the start of the business. In USA and India both Entrance of new organisation is very difficult as explained above.2)Threats of Substitute The substitutes in this industry are very high. people whoremaster choose variety of products they foundation either choose Burger King,KFC,Indian Cuisine,Indian local shops,Indian Vegetarian restaurants. the equivalent situation is faced by Mcdonalds in USA and all over the world. 3)Bargaining power of customers Bargaining power of customes refers to pressure a customer skunk exert on a business to get good prize of food,good customer receipts and low wrong. Bargaining power of customer in this industry is low. As Mcdonald s provide a standard service,one price strategy and tone of food.Customers have low dicker power through out the world in food industry. 4)Bargaining power of supplier Bargaining power of buyer in this industry is low. situation can change if the main ingredients are not available. But with Mcdonalds simple menu and working with many supplier,they are not facing a big threat. so the bargaining power is relatively low. 5)Rivalry with in the organisation Fast food restaurant industry is very competitive. the competition is so high as all the organisations want to get hold of customer base.Food industy all over the world has the same criteria because there are many small businesses operating in abundance and also crystalize brands. Mcdonalds knows about the customers smack and preferences all over the world. so they started Mccafe (morning breakfast). so Mcdonalds is providing quality food from early morning till late night in order to get competitive edge In the market. Customer C haracteristic India is the second most populated country in the world. It has 28 states and almost 4 times the population of USA. India has more than one one thousand million population. Three quaternary of indian population lives in Urban regions.though per capita income is very low in india but still people like to spend on costly products and eating out. out of millions of households in India 49% lives on low income,30% tear d sustain inwardness income,12% Middle income separate, 5% Upper Middle income group and 4% high income group. comparing this with USA where middle income group is very high. consumers in India are highly family oriented. Mcdonalds shoot fors high income earner,Middle income earner and lower middle income earner in India. Indian consumer are getting brand awareness through internet,TV,Newpaper,Radio,Megazine etc.Middle income group is getting bigger in size day by day as a result of economic boost in India and that is very good news for mcdonalds. Indi an consumers are now getting environmental awareness. They like to use Eco-friendly products and Mcdonalds is very helpful in terms of packaging,and recycling. Family system gives a big chance for Mcdonalds to get their sale rise as Indians are purchasing food in bulks. Indian consumers are becoming very open minded which is a positive sign for Mcdonalds.For Mcdonalds to succeed as they are now,they should go to expand in urban areas as well as rural areas and target middle and lower income earners and beside this they should introduce certain products which can be afforded by low income earners. customers like spicy foods and Mcdonald has introduced many products which are spicy and tasting according to the preference of Indians.COMPANY ISSUES Competitive Strategies As we know fast food industry proved to be very competitive industry. Mcdonalds from its day first has al shipway tried to have strong competitive advantage over its rival. This is the only way for Mcdonalds to survive in globalised environment.Mcdonalds strong rivals KFC,Dominos,Pizza Hut and Subway are also operating in India as well as USA. In the fast food most all burning(prenominal)(predicate) thing for some customers is how cursorily you take order and ready the meal for customer. KFC and Jumbo King are offering very quick service to customers and in this way taking customers from Mcdonalds . Mcdonalds has tried very well to overcome this advantage by making and readying its food as quick as possible.Mcdonalds is trying to improve its graph for customer bliss and they are investing heavily through out the world including India.mcdonalds uses Wi-Fi and they are trying to emphasise on demographic characteristic of its customers in the area. Each month mcdonalds make sense some thing special in its menu.To check Mcdonalds quality and reliability administration has developed a very unique idea of Gapbuster visiting Mcdonalds as mystery customer. They are expertise who comes in the form of a customer and after serving give credits win to the store. Mcdonald has introduced McBreakfast from 6 am to 11 am. Mcdonalds in its competitive strategies is emphasising to target customers in the new urban areas.Mcdonalds Indian menu offers very competitive strategy for Mcdonalds. Vegetarian products,Halal and non vegetarian foods for its customer is a unique and successful idea in India. Kids like mcdonalds in India as they are liberal free toys to customers who buy happy meal deals. Mcdonalds has actively invested in Discount vouchers given as a leaflets,newspapers,Magazines certainly is a good business strategy and it has boosted Mcdonalds customer number,Business and sales. Diversification Mcdonalds has modify product range in India and all over the world.Due to modify nature of products Mcdonalds is famous among masses. They offer McBreakfast,Lunch and Dinner,Coffee and many more diversify products. Now if Mcdonalds move to fully new business for example Hotel (McHotel) w ill be a concern. According to guardian news moving to exclusively new business will damage the image of Mcdonalds. If they are in reality interested they should do a partnership with other company. As Burger King has done it. landor marketing Director give tongue to move like this will certainly change the fundamentals of the company. Diversification can be revealed from Indian market.75 % menu has been Indianised. Halal food for Muslims has been introduced. Mcdonalds happy price menu in India,the 5ps and tractile operating platform all shows Mcdonalds to be a diversified organisation. Organisational Structure of Mcdonalds Mcdonalds has a centralised organisational structure. centralised structure means the decision making comes from top management in the hierarchy and people on the floor are not contributing to the decision making. The decision making system is very much Bureucratic. In centralised structure main decisions are made by top direct management.Mcdonalds all over the world has the same structure and they have to follow all the decisions from the parents company as they are working as a franchise. Most oof the fast food chains (for example KFC,Burger King etc) have the same centralised structure. Centralised structure has some advantages and disadvantages. Advantages like Common policy all over the world can easily be revealed and practised. other parts of the Business are stopped from being too independent. central control is easy to handle. it has great Economies of scales. specialisation can be used greatly.Disadvantages include some time too much bureaucratic organisation leads to extra layers in hierarchy. it can invalidate motivation in staff as we go down the hierarchy because of lack of involvement in decision making process. Customers are not benefited some times as there is a need of quick decision making. Standardisation Vs Adaptation Standardisation Mcdonalds has a slogan. Think globally and act locally. Mcdonalds sell valuate product. the taste make up,ingredients,looks,weight etc will be similar In one part of the world to the other part of the world.Cheese Burger in United Kingdom will taste similar to a cheese burger in USA. Think globally and act locally can be proved in India as Mcdonalds in India has changed its menu list. Halal Burger and McVeggie burgers have been introduced looking to the customers believes in India. Similar experience has been exercised in Middle east and Fiji. In Middle east eating of Bacon is banned by government. Halal food is served in Middle east. McVeggie Burger in India will taste the same in comparison to McVeggie burger in Fiji. Mcdonalds sell standardised products.All the products should be looking,tasting,weighing and prepared in the same way crossways the globe. McVeggie burger was prepared in India after Research and Development was condcucted purely in India. Adaptation Mcdonalds follows strategy of product variation. Mcdonalds slogan call up globally and act locally is the best example. the best example for mcdonalds adaptation strategy will be India. Mcdonalds cannot use beef Tallow to fry the fries and burger cutlets (Cows are sacred due to religious belief of Hindus).Bacon cannot be used in Middle east as they are Muslim countries and it is against their religious belief to eat pork. products are orient according to the personal taste of the country people where it operates. Due to adaptation Mcdonalds menu in various countries is different. Motivation for Market main course Parent company of Mcdonalds USA was aware of some facts that incite them to enter Indian market. some of them are given below. The worlds second largest country by population after china. Indias population is 4 times more then USA.India call itself the most democratic nation in the world so it means all the decisions are made by parliament and not one person or dictator who can freeze assets for a company in any kind of noisome relations emerging. Brand aware ness is improving day by day,literacy rate is improving,middle class is getting larger,econonomy of India is booming (now counted in BRIC s nations which means Brasil,Russia,India and china they are the fastest developing countries and future economic power),Unemployment is reducing,Laws are flexible for foreign businesses. all these facts contributed to motivation of Mcdonalds to enter Indian fast food Market.Modes of Market entry There are different ways a company can start opening their business in another country. for example Franchising,licencing,Joint Venture,wholly owned subsidiary etc. But Mcdonalds entry to India conglomerate join venture and Franchising technique. Franchising is the right a firm acquires from another firm that allows them to do particular business activities, such as service or selling the good , under the name of a particular(prenominal) firm, e. g. McDonalds. in Franchising a company follows strict rules from its parent company. mcdonalds have 210 sto res in India.Mcdonalds all over the world has almost 85% of franchises. the benefit of franchising is that in oblivious period a company expands its business. the risk involved for parent company to move into another country and invest heavily can some times be too angry but when local people start doing it by themselves,the risk level is minimised. quality control is difficult with franchising. Although Mcdonalds indian is a 50-50 spliff venture company managed by indian. Performance Much of retail is fight in India but Mcdonalds has been seen unaffected and its planning on accelerating its expanding upon on the Indian subcontinent.Mr Jatia who is managing half of the indian franchises said number of customer is jumping 10% to 15 % each month compared to a year ahead. people of India are now relying on Mcdonalds. Mcdonalds adaptation policy has boosted its sales. Mcdonalds annual sale through out the world is $29 billion annually. Burger king is the second largest fast food org anisation in terms of sales and is strong competitive rival. Due to company having a customised menu in India Mcdonalds is getting popular day by day. mathematical process can be measured in terms of outlets opened by Mcdonalds in the historic years.in 2010 and 2011 Mcdonalds opened 80 stores in India.In 2010 mcdonalds sale improved by 30%. Vikram Bakshi MD Mcdonalds India said the total sale of $29 billion doller Mcdonalds india just accounts for 0. 37% of the whole sale. but the potential is so high and are expecting to get higher in future. Although Mcdonalds is facing certain problems like roadstead are not in very good condition for transport,power supply shortage etc but still sales rise and customer satisfaction shows that Mcdonalds in India is performing very well. Short,Medium and long term strategies activeStrategy is a planning that is used by an organisation to strive its goal and objectives. short term strategy starts from a minute to 6 moths,medium account from 6 m onth to a year and long term mean 5 years or more strategy. In short term Mcdonalds is trying to bring in innovation and make customer satisfy. day to day issues are planned to satisfy customers. New products are introduced each month. in medium term they are trying to tap its profit and sales. In long run Mcdonalds is planning to open new branches across india and indian Mcdonalds sale which accounts only 0.37 % of overall sale of Mcdonald to be taken to 0. 50 percent and more in the coming years. SWOT ANALYSIS SWOT analysis is a strategic planning method used to evaluate strength weaknesses,opertunity and threats involved in a project or in Business. SWOT analysis will give us a quick re earn of an organisation current status. Swot analysis for Mcdonalds in India Strength Mcdonalds is a market leader in the fast food industry. Mcdonalds has a very strong brand image. Mcdonald has expanded its business to more than 125 countries with more than 33000 outlets through out the world.m cdonalds has one competitive advantage and that is strategic location.In India they are located in busy shopping malls,Airports and busy drive through. Weaknesses Mcdonalds has created very successful brand image but the market segment is too focused on Kids. Mcdonalds is a great deal related to unhealthy food and obesity. Employee turn over rate is so high. these all are weaknesses of mcdonalds in the world and India in particular. fortune Mcdonalds can introduce healthy food consisting of low calories items. they should throw away more efforts in Reseach and Development.Management should try find ways to reduce food wastage which leads to cost control. new products with different variety should be introduced to take the market. Threats Mcdonalds is facing major competition from its rivals KFC and Burger King all over the world. In India local curry shops are offering great scrap to mcdonalds. Company rapid growth has made mcdonalds very velnerable to other contries economic s lowdown. Press associating Mcdonalds with obesity destroys Mcdonalds image. mcdonalds in the past has been sued for its unhealthy products.mcdonalds should try and solve these problems by investing heavily and effectively in research and development.MARKETING MIX OR 4 Ps Price,Product,Place,Promotion are collectively called as product mix. In order to meet organisational objectives product mix is considered to be very vital. it should be viewed as coordinated and interated package of benefits that shows the characteristics of customers and and related place. Product product is the physiological product or service that is offered to a customer. as we know that Mcdonalds is very customer oriented and all their products are customised according to the local community.in order to succeed in market research has suggested that customers are ever so looking for innovation and new products. Mcdonald is famous for its product innovation.Mcdonalds has introduced new products,removed old pro ducts and always looking for the better products so that customers are satisfied. mcdonalds india majority of products are vegetarian products. Price Price is a very important tools which identifies how reliable and qualitative a product is. when a customer is acquire some thing He/she first draw in his/her own mind of what the product is worth of.If the price of a product is very low customer think quality is being promised. price should in reality reflect brand and its integrity. Mcdonalds products are classified in two categories,BA (Branded affordability) and BCV (Branded Core Value products)an example of BA is McAllo tikka and chicken Mcgrill burgers which cost consumer 20-30 rupees. BCV products in general include McVeggie and McChicken Burgers that cost 50-60 indian rupees. Promotion Promotion is a way by which company tries to communicate with public and make them aware of what the company is offering. One of the method is Advertisement.Advertisement is conducted on TV,Ci nema,Internet,magazines,Poster site,press and radio. other ways of progress includes direct mail,loyalty scheme,door drops and merchandising. Mcdonalds is unique in the way they do promotion. In order to capture the market Mcdonalds india has promoted well to improve its sales. Although advertising is expensive but the return is so high. Mcdonalds spends big part of its budget on promotion. Place Place plays very important role in launching a product and making it successful. Mcdonalds has expanded through out in India Urban areas.Mcdonald is currently targeting urban areas as we know that big part of population is living in urban areas. place doesnt only include physical location but it is includes all the processes that eventually leads to product ending in customers hand. Place plays very important role in getting priority over the rivals and place should be selected after research on the local demography,income level and customers preferences. Mcdonalds in india chooses a parti cular place after long research and checking local areas demographic characteristics,income level etc.this is the reason Mcdonalds is very successful in india. CONCLUSION Mcdonalds is considered to be the King of the fast food.To achieve this brilliance Mcdonalds has tried hard for ages to prove itself in the competitive environment of Fast food. The key factors in success of Mcdonalds in my view is innovation,customisation,good management and above all best Marketing strategies adopted by Mcdonalds. Mcdonalds in India has a very bright future because of the customers bank,customised start from Mcdonalds towards its customers and above all the strong brand Image.