brand analysis on mcdonalds

7/31/2019 Brand Analysis on McDonalds

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One world,

One

Burger

McDonalds

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CERTIFICATE

This is to certify that this project is the original work of

ANKIT MEHTA of BBA III Semester A Section (Morning) who

has completed this project under my guidance.

This project has not been submitted as a part of any other

degree or course to any other university.

(Prof. P.K. Mukherjee)

Project Guide

ACKNOWLEDGEMENT

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Doing my Minor Project has been a great learning experience

for me, as it provided me with an opportunity to study and

understand various issues and concepts related to the brand

MCDONALDS. But this would not have been possible without

the help, co-operation and guidance of my guide Prof. P.K.

Mukherjee .

I am indeed grateful to my guide for providing me necessary

guidance and facility required for completion of the project and

for being an effective source of inspiration.

ANKIT MEHTA

TABLE OF CONTENTS

INTROUCTION TO MCDONALDS 6

COMPANY PROFILE 7-9

HISTORY OF MACDONALDS 10-17

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MCDONALDS AS SMALL SCALE

CORPORATION IN BEGGINING 18-20

AT INTERNATIONAL LEVEL 21-27

PRODUCTIVITY AND 28-33

QUALITY

MARETING STYLE:ADVERTISMNT 34-40

HUMAN FORCE 41-45

FINANCIAL ARENA 46-55

IMPORTS &EXPORTS 56-58

CORPORATE SOCIAL RESPONSIBILITY 59-64

MCDONALDS IN INDIA 65-69

MCDONALDS AND ITS COMPETITORS 70-73

o BURGR KING

o SUBWAY

METHODOLOGY 74

CONCLUSION 75

GALLERY 76-79

INTRODUCTION5 | P a g e


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Although the realm of accounting and finance has often been viewed as

dull bean counting, in todays modern and competitive business

environment, the finance department should be at the heart of any company,

encompassing a variety of functions that go beyond its traditional financial

reporting role. While it is still a priority for accountants to ensure a companys

financial statutory accounts meet legal requirements, dynamic companies

such as McDonalds have shifted the focus of their accounting and finance

function to additionally include the evaluation of past performance and

appraisal of future opportunities, helping to ensure the company maximises

its strategic capabilities.

McDonalds Restaurants UK Limited, a wholly owned subsidiary of

the U.S. parent company, opened its first UK restaurant in Woolwich in 1974.

There are now 1,200 restaurants operating in the UK which, despite

representing only 4% of the total number of McDonalds restaurants

worldwide, contribute 7% of global profits, making the UK a very important

financial market for McDonalds shareholders.

McDonalds understands the value of an integrated accounting and

finance function, extending from the restaurant floor up to the board of

directors. Each individual McDonalds restaurant is structured as an

independent business, with restaurant management responsible for its

financial performance, supported by the centralised Accounting & Finance

department.

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COMPANY PROFILE

McDonald's is the leading global foodservice retailer with more than 33,000

local restaurants serving more than 64 million people in 119 countries each

day. More than 80% of McDonald's restaurants worldwide are owned andoperated by independent local men and women.

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McDonalds is a leader in convenient foods and beverages, with revenues of

about $23 billion and over 1.6 million employees serving the customers

world wide. The company consists of the snack business of Beverages and

Foods. PepsiCo brands are available in nearly 115 countries having more

than 24,500 restaurants in the world providing 24 hour service , having about

1 billon customers to be served all over the world.

McDonaldss success is the result of superior products, high standards of

performance, distinctive competitive strategies and the high integrity of our

people. McDonalds is continuing to expand and introduce new alternative

beverages in the market. Approximately 85% of McDonalds restaurant

businesses world-wide are owned and operated by franchisees .All

franchisees are independent, full-time operators. McDonalds was namedEntrepreneurs Number-one franchise for 1997

Our mission is to be the world's premier consumer Products

Company focused on convenient foods and beverages. We seek to produce

healthy financial rewards to investors as we provide opportunities for growth

and enrichment to our employees, our business partners and the

communities in which

we operate. And in everything we do, we strive for honesty, fairness and

integrity you could now join our team. Greater variety and quality choices

surprise and delight customers with the food and beverage they desire.

McDonalds corp. is currently one of the most successful consumer

products company in the world with annual revenues exceeding $23 million

and has more than 1.6 million employees.

McDonalds products are recognized and are most respected all around the

globe. Currently, its divisions operate in all over the world in beverages,

snack foods, and restaurants. The corporations increasing success has been

based on high standards of performance, marketing strategies,

competitiveness, determination, commitment, and the personal and

professional integrity of their people, products and business practices.

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McDonalds believes their success depends upon the quality and value of

their products by providing a safe, whole some, economically efficient and a

healthy environment for their customers; and by providing a fair return to

their investors while maintaining the highest standards of integrity.

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HISTORY OF

McDonalds.

The McDonald's History - 1954 to 1955

Raymond Albert Kroc1902-1984, A Salesman

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Ray Kroc mortgaged his home and invested his entire life savings to

become the exclusive distributor of a five-spindled milk shake maker called

the Multimixer. Hearing about the McDonald's hamburger stand in

California running eight Multimixers at a time, he packed up his car and

headed West. It was 1954. He was 52 years old.

Dick and Mac McDonald's Restaurant, San Bernardino,

California

Ray Kroc had never seen so many people served so quickly when he pulled

up to take a look. Seizing the day, he pitched the idea of opening up several

restaurants to the brothers Dick and Mac McDonald, convinced that he

could sell eight of his Multimixers to each and every one. "Who could we

get to open them for us?" Dick McDonald said.

"Well," Kroc answered, "what about me?"

Where it all began, Des Plaines, Illinois

Ray Kroc opened the Des Plaines restaurant in 1955. First

day's revenues-$366.12! No longer a functioning restaurant,

the Des Plaines building is now a museum containing

McDonald's memorabilia and artefacts, including the Multimixer!


100 million sold

McDonalds sold it 100millionth hamburgers.

Ray Kroc at work.

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"If you've got time to lean, you've got time to clean," Ray Kroc

preached to his troops. Heeding his own words, here the Chairman

of the Board cleans the parking lot of the first McDonald's

franchise in Des Plaines, Illinois.

Ronald McDonald, In Any Language He Means "Fun!"

"The smile known around the world," In his first TV

appearance in 1963 the happy clown was portrayedby none other than Willard Scott.

Fred Turner And Ray Kroc, Architects Of A Dream

Here Ray Kroc (right) and Fred Turner study the design

which would replace the red and white tile buildings

that had become landmarks throughout the U.S. Called

Kroc's first "grill man extraordinaire," Turner is today SeniorChairman of the Board.


McDonald's Comes To Wall Street

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In 1965 McDonald's went public with the company's first offering on the

stock exchange. A hundred shares of stock costing $2,250 dollars that day

would have multiplied into 74,360 shares today, worth approximately $3.3

million on December 31, 2006. In 1985 McDonald's was added to the 30-

company Dow Jones Industrial Average.

A Big Idea Called "Big Mac"

"Introduced systemwide in 1968, the Big Mac was the

brainchild of Jim Delligatti, one of Ray Kroc's earliestfranchisees, who by the late 1960s operated a dozen

stores in Pittsburgh."

The Egg McMuffin

Introduced in 1973, the Egg McMuffin was developed by owner

operator Herb Peterson.

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FRESH SALES ADDED

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The First Ronald McDonald House in Philadelphia, PA

In 1974 Fred Hill of the Philadelphia Eagles teamed up

with McDonald's to create Ronald McDonald House.Here the families of critically ill children have a place to

call home while they're away from home as the young

patients undergo treatment for their conditions.

The Happy Meal

Since 1979 the Happy Meal has been making kids

visits that much more special. Clubs the world over

collect Happy Meals toys and boxes.

The Future Begins Now

McDonald's Express for a world that can't slow

down!. McDonald's is popping up in more non-

traditional locations like Amoco and Chevron

stations, with full menu offerings and dining roomseating, just like you'll find in a traditional

McDonald's.


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Freshly tossed salads are added to the McDonalds national menu.

THE FAMOUS HAMBURGERS

Fortune magazine names McDonalds hamburgers

among the 100 products America makes best.

HAVE YOU HAD YOUR BREAKFAST TODAY?

The new advertising theme have you had

breakfast today?debuts.

The McDonald's HISTORY -2003 TO 2010

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PREMIUM SALADS ADDEDMcDonaldss premium salads are added to the national menu.

50TH ANNIVERSARY

McDonalds celebrates its golden jubilee.

McCAFE REAL FRUIT SMOOTHIES AND FRAPPES

Smoothies and mocha are now available.

FACTS & FIGURES

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1.6millionRestaurant employees System wide dedicated to serving our customers

540millionSnack Wraps were sold in 2007

24,500Restaurants around the world offer extended or 24-hour service

1billionMore customers were served in 2007 than in 2006

115Countries participated in one of McDonalds most successful promotions

ever

Our tie-in with DreamWorks Shriek the Third

ANALIYSIS ON

MCDONALDS AS A SMALL17 | P a g e


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SCALE CORPORATION IN

THE BEGINNING.

McDonalds is one of the leading restaurant chains in the world, touching

the lives of people everyday. The long journey of the burger brand started in

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1940, when two brothers, Dick and Mac McDonald opened the first

McDonalds 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.

As per the information of the McDonalds history, the major

revenue came from hamburgers, which were sold at a nominal price of 15

cents. The restaurant gradually became famous and the McDonald brothers

begin franchising their restaurant in the year 1953. The first franchise was

taken by Neil Fox and under it; the second Mc Donalds restaurant was

opened in Fresno, California. It was the first to introduce the Golden Archdesign. The third and fourth restaurants were opened in Saginaw, Michigan

and Downey, California, respectively.

The business began in 1940, with a restaurant opened by siblings

Dick and Mac McDonald in San Bernardino, California. Their introduction of

the "Speedee Service System" in 1948 established the principles of themodern fast-food restaurant. The original mascot of McDonald's was a man

with a chef's hat on top of a hamburger shaped head whose name was

"Speedee." Speedee was eventually replaced with Ronald McDonald in

1963.

The present corporation dates its founding to the opening of a franchisedrestaurant by Ray Kroc, in Des Plaines, Illinois on April 15, 1955 , the ninth

McDonald's restaurant overall. Kroc later purchased the McDonald brothers'

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http://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Ray_Krochttp://en.wikipedia.org/wiki/Des_Plaines,_Illinoishttp://en.wikipedia.org/wiki/Illinoishttp://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Ray_Krochttp://en.wikipedia.org/wiki/Des_Plaines,_Illinoishttp://en.wikipedia.org/wiki/Illinois


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equity in the company and led its worldwide expansion and the company

became listed on the public stock markets in 1965. Kroc was also noted for

aggressive business practices, compelling the McDonald's brothers to leave

the fast food industry. The McDonald's brothers and Kroc feuded over

control of the business, as documented in both Kroc's autobiography and in

the McDonald brothers autobiography. The site of the McDonald brothers'

original restaurant is now a monument.

With the expansion of McDonald's into many international markets, the

company has become a symbol ofglobalization and the spread of the

American way of life. Its prominence has also made it a frequent topic of

public debates about obesity, corporate ethics and consumerresponsibility.

ANALIYSIS ON

MCDONALDS20 | P a g e
http://en.wikipedia.org/wiki/Dick_and_Mac_McDonald#Franchisinghttp://en.wikipedia.org/wiki/Dick_and_Mac_McDonald#Franchisinghttp://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/American_wayhttp://en.wikipedia.org/wiki/Obesityhttp://en.wikipedia.org/wiki/Business_ethicshttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Moral_responsibilityhttp://en.wikipedia.org/wiki/Dick_and_Mac_McDonald#Franchisinghttp://en.wikipedia.org/wiki/Dick_and_Mac_McDonald#Franchisinghttp://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/American_wayhttp://en.wikipedia.org/wiki/Obesityhttp://en.wikipedia.org/wiki/Business_ethicshttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Moral_responsibility


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CORPORATION AT

INTERNATIONAL LEVEL.

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McDonald's International through its wholly owned subsidiary McDonald's

India entered into two JVs, one with Connaught Plaza Restaurants Pvt. Ltd.

in the Northern & Eastern region and another with Hard Castle Restaurants

Pvt. Ltd. in the Western & Southern region.

McDonald's restaurants are found in 119 countries and territories

around the world and serve nearly 47 million customers each day.

McDonald's operates over 31,000 restaurants worldwide, employing more

than 1.5 million people. The company also operates other restaurant brands,

such as Piles Caf, and has a minority stake in Prt a Manger. The company

owned a majority stake in Chipotle Mexican Grill until completing its

divestment in October 2006. Until December 2003, it also owned Donators

Pizza. On August 27, 2007, McDonald's sold Boston Market to Sun Capital

Partners

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 firstintroduced in Arizona in 1975, following the lead of other fast-food chains. In

some countries "McDrive" locations nearhighways offer no counter service

or seating. In contrast, locations in high-density city neighborhoods often

omit drive-through service. There are also a few locations, located mostly in

downtown districts that offer Walk-Thru service in place of Drive-Thru.

Especially 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 chandelierand similar light fixtures.

Each McDonald's restaurant is operated by a franchisee, an affiliate, or

the corporation itself. The corporations' revenues come from the rent,

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http://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Pret_a_Mangerhttp://en.wikipedia.org/wiki/Chipotle_Mexican_Grillhttp://en.wikipedia.org/wiki/Divestmenthttp://en.wikipedia.org/wiki/Donatos_Pizzahttp://en.wikipedia.org/wiki/Donatos_Pizzahttp://en.wikipedia.org/wiki/Boston_Markethttp://en.wikipedia.org/wiki/Sun_Capital_Partnershttp://en.wikipedia.org/wiki/Sun_Capital_Partnershttp://en.wikipedia.org/wiki/Counter_servicehttp://en.wikipedia.org/wiki/Drive-throughhttp://en.wikipedia.org/wiki/Highwayhttp://en.wikipedia.org/wiki/Drive-throughhttp://en.wikipedia.org/wiki/Victoria,_British_Columbiahttp://en.wikipedia.org/wiki/British_Columbiahttp://en.wikipedia.org/wiki/British_Columbiahttp://en.wikipedia.org/wiki/Chandelierhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Pret_a_Mangerhttp://en.wikipedia.org/wiki/Chipotle_Mexican_Grillhttp://en.wikipedia.org/wiki/Divestmenthttp://en.wikipedia.org/wiki/Donatos_Pizzahttp://en.wikipedia.org/wiki/Donatos_Pizzahttp://en.wikipedia.org/wiki/Boston_Markethttp://en.wikipedia.org/wiki/Sun_Capital_Partnershttp://en.wikipedia.org/wiki/Sun_Capital_Partnershttp://en.wikipedia.org/wiki/Counter_servicehttp://en.wikipedia.org/wiki/Drive-throughhttp://en.wikipedia.org/wiki/Highwayhttp://en.wikipedia.org/wiki/Drive-throughhttp://en.wikipedia.org/wiki/Victoria,_British_Columbiahttp://en.wikipedia.org/wiki/British_Columbiahttp://en.wikipedia.org/wiki/British_Columbiahttp://en.wikipedia.org/wiki/Chandelier


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royalties and fees paid by the franchisees, as well as sales in company-

operated restaurants..

Individual franchise arrangements generally include a lease and a license

and provide for payment of initial fees, as well as continuing rent and

royalties to the Company based upon a percent of sales with minimum rent

payments that parallel the Companys underlying leases and escalations (on

properties that are leased). McDonalds franchisees are granted the right to

operate a restaurant using the McDonalds System and, in most cases, the

use of a restaurant facility, generally for a period of 20 years. Franchisees

pay related occupancy costs including property taxes, insurance and

maintenance. In addition, in certain markets outside the U.S., franchisees

pay a refundable, non interest-bearing security deposit. Foreign affiliates and

developmental licensees pay a royalty to the Company based upon a

percent of sales, as well as initial fees. The results of operations of

restaurant businesses purchased and sold in transactions with franchisees,

affiliates and others were not material to the consolidated financial

statements for periods prior to purchase and sale.

Key points: Restaurants are found in more than 119 countries.

Serve nearly 50 million customers each day.

Solid Gold McDonald's," a 1950s rock-and-roll themed restaurant"

Each McDonald's restaurant is operated by a franchisee, an affiliate, or

the corporation itself.

The results of operations of restaurant businesses purchased and sold

in transactions with franchisees, affiliates and others were not materialto the consolidated financial statements for periods prior to purchase

and sale.

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ANALIYSIS ON

MCDONALDS

GLOBAL OPERATIONS

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McDonald's has become emblematic ofglobalization, sometimes referred to

as the "McDonaldization" of society. The Economistnewspaper uses the

"Big Mac Index": the comparison of a Big Mac's cost in various

world currencies can be used to informally judge these currencies

purchasing. Norway has the most expensive Big Mac in the world as of July2011, while the country with the least expensive Big Mac is India (albeit for

a Maharaja Macthe next cheapest Big Mac is Hong Kong).[62]

Thomas Friedman once said that no country with a McDonald's had gone to

war with another. However, the "Golden Arches Theory of Conflict

Prevention" is not strictly true. Exceptions are the 1989 United States

invasion of Panama, NATO's bombing of Serbia in 1999, the 2006 Lebanon

War, and the 2008 South Ossetia war.

Some observers have suggested that the company should be given credit for

increasing the standard of service in markets that it enters. A group of

anthropologists in a study entitled Golden Arches East looked at the impact

McDonald's had on East Asia, and Hong Kong in particular. When it opened

in Hong Kong in 1975, McDonald's was the first restaurant to consistently

offer clean restrooms, driving customers to demand the same of other

restaurants and institutions. McDonald's have recently

taken to partnering upwith Sinopec, the second largest oil company in the People's Republic of

China, as it begins to take advantage of the country's growing use of

personal vehicles by opening numerous drive-thru restaurants. McDonalds

has opened a McDonald's restaurant and McCaf on the underground

premises of the French arts museum, the Louvre.

McDonald's has started to offer free wireless Internet access in many

countries

McDonald's is the largest chain offast food restaurants in the world. It has

more than 33,000 outlets worldwide. The list of countries follows the

company's own calculation, and contains several non-sovereign territories.

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http://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/McDonaldizationhttp://en.wikipedia.org/wiki/The_Economisthttp://en.wikipedia.org/wiki/Big_Mac_Indexhttp://en.wikipedia.org/wiki/Big_Machttp://en.wikipedia.org/wiki/Currencyhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Maharaja_Machttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/McDonald's#cite_note-61http://en.wikipedia.org/wiki/Thomas_Friedmanhttp://en.wikipedia.org/wiki/McDonalds_Rulehttp://en.wikipedia.org/wiki/McDonalds_Rulehttp://en.wikipedia.org/wiki/United_States_invasion_of_Panamahttp://en.wikipedia.org/wiki/United_States_invasion_of_Panamahttp://en.wikipedia.org/wiki/Kosovo_War#The_NATO_bombing_campaignhttp://en.wikipedia.org/wiki/2006_Lebanon_Warhttp://en.wikipedia.org/wiki/2006_Lebanon_Warhttp://en.wikipedia.org/wiki/2008_South_Ossetia_warhttp://en.wikipedia.org/wiki/Sinopechttp://en.wikipedia.org/wiki/Drive-throughhttp://en.wikipedia.org/wiki/Louvrehttp://en.wikipedia.org/wiki/McDonald'shttp://en.wikipedia.org/wiki/Fast_food_restauranthttp://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/McDonaldizationhttp://en.wikipedia.org/wiki/The_Economisthttp://en.wikipedia.org/wiki/Big_Mac_Indexhttp://en.wikipedia.org/wiki/Big_Machttp://en.wikipedia.org/wiki/Currencyhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Maharaja_Machttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/McDonald's#cite_note-61http://en.wikipedia.org/wiki/Thomas_Friedmanhttp://en.wikipedia.org/wiki/McDonalds_Rulehttp://en.wikipedia.org/wiki/McDonalds_Rulehttp://en.wikipedia.org/wiki/United_States_invasion_of_Panamahttp://en.wikipedia.org/wiki/United_States_invasion_of_Panamahttp://en.wikipedia.org/wiki/Kosovo_War#The_NATO_bombing_campaignhttp://en.wikipedia.org/wiki/2006_Lebanon_Warhttp://en.wikipedia.org/wiki/2006_Lebanon_Warhttp://en.wikipedia.org/wiki/2008_South_Ossetia_warhttp://en.wikipedia.org/wiki/Sinopechttp://en.wikipedia.org/wiki/Drive-throughhttp://en.wikipedia.org/wiki/Louvrehttp://en.wikipedia.org/wiki/McDonald'shttp://en.wikipedia.org/wiki/Fast_food_restaurant


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EXAMPLARY:

country date First outlet

location

Number of

currently

operatingoutlets

United

States

May 15, 1940 San Bernardino,

California.

13,381

Canada June 1, 1967 Richmond, British

Columbia.

1,400

Japan July 20, 1971 Tokyo 3,598

Netherlands August 21,

1971

Zaandam 225

Germany November 22,

1971

1,361

Australia May 30, 1971 Yangon,

New South Wales

780

England,

UK

October 1,

1974

Woolwich, London 2,600

China October 8,1990

Shenzhen 850

India October 13,

1996[Delhi 192

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http://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Netherlandshttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/List_of_countries_with_McDonald's_franchises#cite_note-McDonald.27s_India-17http://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Netherlandshttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/List_of_countries_with_McDonald's_franchises#cite_note-McDonald.27s_India-17


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Recognized Premier Franchising Company

McDonald's continues to be recognized as a premier franchising company

around the world. Over 75% of their restaurants worldwide are owned and

operated by their Franchisees.

The following publications consistently recognize McDonald's as a top

franchisor:

Entrepreneur Magazine Every year, Entrepreneur Magazine listsits Franchise 500. Over the last several years McDonalds has been

recognized as one of the Top 10 Franchises.

Franchise Times Magazine McDonalds has been ranked #1 onits list of top 200 franchises.

USA Today McDonalds has been selected by the National MinorityFranchise Initiative (NMFI) as one of the 50 Top Franchises for

Minorities.

Black Enterprise Magazine McDonalds was listed as one of the40 best Franchises for African Americans.

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Analyzing MCDONALDSPRODUTIVITY & QUALITY.

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The site of the first McDonald's to be franchised by Ray Kroc is now a

museum in Des Plaines, Illinois. The building is a reproduction of the

original, which was the ninth McDonald's restaurant.

To accommodate the current trend for high quality coffee and the popularity

of coffee shops in general, McDonald's introduced McCafs. The McCaf

concept is a caf-style accompaniment to McDonald's restaurants. McCaf

is a concept of McDonald's Australia, starting with Melbourne in 1993.

Today, most McDonald's in Australia have McCafs located within the

existing McDonald's restaurant. In Tasmania there are McCafs in every

store, with the rest of the states quickly following suit. After upgrading to thenew McCaf look and feel, some Australian stores have noticed up to a 60%

increase in sales. As of the end of 2003 there were over 600 McCafs

worldwide.

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-Martstores. McStop is a location targeted at truckers and travelers which may

have services found at truck stops. McDonald's announced on May 22, 2008

that, in the U.S. and Canada, it will be introducing cooking oil for its French

fries that contain no trans fats. The company will use canola-based oil with

corn and soy oils by year's end for its baked items, pies and cookies.

In a bid to tap into growing consumer interest in the provenance of food,

the fast-food chain recently switched its supplier of both coffee beans and

milk. UK chief executive Steve Easterbrook said: "British consumers are

increasingly interested in the quality, sourcing and ethics of the food and

drink they buy". McDonald's coffee is now brewed from beans taken from

stocks that have been certified by the Rainforest Alliance, a conservation

group. Similarly, milk supplies used for its hot drinks and milkshakes have

been switched to organic sources which could account for 5% of the UK'sorganic milk output. The company has also expanded the McDonald's menu

in recent decades to include alternative meal options, such as salads and

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snack wraps, in order to capitalize on growing consumer interest in health

and wellness. McDonald's predominantly sells hamburgers, various types of

chickensandwiches and products, French fries, soft drinks, breakfast items,

and desserts. In most markets, McDonald's offers salads and vegetarian

items, wraps and other localized fare. This local deviation from the standard

menu is a characteristic for which the chain is particularly known, and one

which is employed either to continue by regional food taboos (such as the

religious prohibition of beef consumption in India) or to make available foods

with which the regional market is more familiar (such as the sale of Mc Rice

in Indonesia). There have been continuous efforts to enhance variety in the

menu by developing more such products.

McDonald's has also re-engineered its operations repeatedly in its

11 years in India to address the special requirements of a vegetarian menu.

Vegetable products are 100% vegetarian; they are prepared separately,

using dedicated equipment and utensils. Only pure vegetarian oil is used as

a cooking medium. Cheese and sauces are completely vegetarian and egg

less. Separation of vegetarian and non-vegetarian food products is

maintained throughout the various stages of procurement, cooking and

serving.

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Giving their customers quality, Choice and value

Whether its a quick breakfast, lunch on the go or dinner with the kids,

customers come to McDonalds for quality food at a great value. Its goal is to

continuously improve their classic offerings and increase the number andvariety of new options that deliver the great taste and balance their

customers seek.

In addition to an evolving array of menu items, they also offer many ways for

customers to learn about the nutrition information of their food. They pay

particular attention to their offerings for children and how they communicate

about them to both children and their parents.

With guidance from their Global Advisory Council (GAC), they

Continue to evolve their overall approach, while supporting their individualmarkets in meeting the specific needs and requirements of their local

cultures and governments. Since 2004, the GAC has provided McDonalds

guidance on key areas such as global nutrition labeling, McDonalds what I

eat, what I do childrens well-being platform, the development of internal

metrics to gauge their progress, and approaches for motivating children to

eat more fruits & vegetables.

Feature: Farm to Front Counter

The taste & quality of every McDonalds menu items starts with its

integrants-where they are sourced, how they are handled and, ultimately-

how they are prepared in the restaurant.

They focus on every aspect of this journey in order to ensure quality and

safety, work towards greater sustainability and continuously create

opportunities for people and communities-all while delivering a great value to

customers.

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Taking potatoes as one example

From field to freezer to fryer, McDonalds potatoes are on a sustainability

journey of their own. They work with their suppliers to incorporate

sustainable practices at all stages of the supply chain and to ensure thateach potato meets their high standards of quality, safety, appearance and

taste.

AT FARM STAGE

Potatoes are planted, grown and harvested in farms around the world in

keeping with a set of good agricultural practices (GAP) developed by

McDonalds employees, suppliers and outside consultants

AT PRODUCION STAGE

Potatoes arrive and are washed, peeled, washed again and inspected for

blemishes. Potatoes are then cut into shoestring-style strips that are

inspected, and then blanched in hot water to preserve texture. After drying,

the potato strips are partially fried, then frozen and packaged for transport to

McDonalds Distribution Centers.

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AT RESTAURANTS

Fries are delivered to restaurants and stored in the freezer until use. Fries

are then cooked, salted and served crisp, hot and fresh to customers.

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ANALIYSIS ON

MCDONALDS

ADVERTISEMENT

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McDonald's has for decades maintained an extensive advertising campaign.

In addition to the usual media (television, radio, and newspaper), the

company makes significant use of billboards(outdoors, on which large

advertisements or notices are posted.) and signage, sponsors sporting

events from ranging from Little League to the Olympic Games, and makes

coolers oforange drink with their logo available for local events of all kinds.

Nonetheless, television has always played a central role in the company's

advertising strategy.

Over the years, McDonald's has developed TV advertising campaigns that

have become, like McDonald's, a part of our lives and culture. McDonald's

commercials have focused not only on product, but rather on the overall

McDonald's experience, portraying warmth and a real slice of every day life.

This "image" or "reputation" advertising has become a trademark of the

company and created many memorable television moments and themes.

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McDonald's has for decades maintained an extensive advertising

campaign.

sponsors sporting events from ranging from Little League to the

Olympic Games.

, television has always played a central role in the company's

advertising strategy.

McDonald's commercials have focused not only on product, but

rather on the overall McDonald's experience, portraying warmth

and a real slice of everyday life.

FEW MEMORABLE ARE:

-McDonald's is Your Kind of Place (1967)

- You Deserve a Break Today (1971)

- We Do it All for You (1975)

Twoallbeefpattiesspecialsaucelettucecheesepicklesonionsonasesamesee

dbun (1975)

-

- You, You're The One (1976)-Nobody Can Do It Like McDonald's Can (1979)

-Renewed: You Deserve a Break Today (1980 & 1981)- Nobody Makes Your Day Like McDonald's Can (1981)

- McDonald's and You (1983)- Its a Good Time for the Great Taste of McDonald's (1984)

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-Good Time, Great Taste, That's Why This is My Place

(1988)

-Food, Folks and Fun (1990)

- McDonald's Today (1991)-What You Want is What You Get (1992)

-Have you Had your Break Today? (1995)

-My McDonald's (1997)- Did Somebody Say McDonald's (1997)

- We Love to See You Smile(2000)

-There's a little McDonald's in Everyone (2001) - Canada Only

- Im lovin' it (2003)

McDonaldland

McDonaldland was a fantasy world used in

the marketingfor McDonald's restaurants. It was based on the "total concept

and feel" of Sid and Marty Krofft's H.R. Pufnstuf television program.[1]McDonaldland was inhabited by Ronald McDonald and other characters. In

addition to being used in advertising, the characters were used as the basis

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for equipment in the playgroundsattached to some McDonald's.

McDonaldland and the supporting characters have been abandoned in their

marketing, but Ronald McDonald is still seen in commercials and in Happy

Meal toys.

Ronald McDonald

Ronald McDonald is a clown character used as the primary mascot of

the McDonald'sfast-food restaurant chain. In television commercials, the

clown inhabits a fantasy world called McDonaldland, and has adventures

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with his friends Mayor McCheese, the Ham burglar, Grimace, Birdie the

Early Bird, and The Fry Kids. In recent years, McDonaldland has been

largely phased out, and Ronald is instead shown interacting with normal kids

in their everyday lives

MAKING FRUITS AND VEGETABLES FUN

In May 2010, McDonalds launched a Global Happy Meal promotion

featuring the characters from DreamWorks Shrek Forever After. The

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promotion ran in the majority of our major markets and was translated into

nine languages.

Advertising and packaging featured fruit, vegetable and dairy items such as

carrots, apple slices or milk. There were also interactive games such as a

pop-out Puss in Boots who makes drinking milk more fun.

McDonald's Marketing Guidelines

Talking with kids about food and nutrition is a responsibility that McDonald's

takes seriously. We have our own global Children's Marketing Guidelines

that include the following commitments:

Communicating balanced food choices that fit within a child's nutritional

needs

Using licensed characters and properties to encourage activity and

balanced food choices for children to make food, such as fruit and

vegetables, fun to eat

Promoting positive messages that support their well-being - mind, body

and spirit

Providing nutrition information on our food to help parents and families

make informed choices

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Engaging the support of experts and informed third parties to help

guide our efforts for children and families worldwide

MCDONALDS HUMAN

FORCE

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People make the difference at McDonalds

McDonalds and its independent franchisees employ more than 1.6 million

people worldwide they are the face of our brand and differentiate us fromthe competition. Our continued success requires that we develop and retain

a diverse, engaged and talented workforce. We must do this in a range of

cultural environments and in the face of often negative perceptions of

working in the quick service industry. Thats why we focus our people

programs and policies on three priority areas: respect and inclusion,

Employee Value Proposition (EVP) and talent management.

EMPLOYEE BENEFIT PLANS

The following information highlights McDonald's benefits for Staff (e.g., home

office, division or region office) employees.

McDonald's benefits program is designed to attract, retain and engage

talented people who deliver strong performance and help McDonald's

achieve their business goals and objectives.

For McDonald's Corporation employees at corporate, division and

region offices, many benefits are organized into four categories:

Health and Protection

Health and insurance benefits

Medical

Vision supplement plan Dental

Flexible spending accounts

Short and long term disability

Employee and dependent life insurance

Accidental death & dismemberment (AD&D)

Travel and business travel accident insurance

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Pay and Rewards

Compensation, reward and recognition programs

Base pay

Incentive pay

Long Term Incentives

Company car program

Recognition programs

Investing in Future

Savings, investment and financial management programs

Profit Sharing and Savings Plan (includes our 401(k) feature) MCDirect Shares

Mc$ave

Credit union

Financial planning services

Helping Balance Work and Life

Work/life benefits

Vacation

Holidays

Anniversary Splash

Sabbatical program

Summer Hours

Leave of absence

Alternative Work Approach Adoption assistance

Child care discount

Educational assistance

Matching gifts program

Employee Resource Connection

Auto and home insurance group discount program

McDonald's Fitness Discount Program

Beyond Work Internet discount program

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All in all, our benefits programs provide our McDonald's Corporation

employees with a valuable and compelling package. We believe you'll find

there's a lot to gain from being part of the McDonald's team.

The information contained on this site is highlights of McDonald's

Corporation benefits and policies for U.S. staff employees only. The official

Plan documents govern in case of any discrepancy between the Plan and

the descriptions on this site.

The Global Womens Initiative

The Global Womens Initiative is active in all Areas of the World and

sponsored by President and Chief Operating Officer, Don Thompson. TheGlobal Womens Initiative supports the recruitment, development, and

advancement of women at all levels within McDonalds while creating a

culture where women have the opportunity to succeed and grow.

Asia Pacific Middle East and Africa Women's Leadership Network

European Women's Leadership Network

Canada Women's Leadership Network

Latin America Women's Leadership Network

U.S. Women's Leadership Network

Employee Business Networks

McDonalds employees business networks are a resource providing

education, support, and advocacy on behalf of employees.

Current business networks are:

McDonalds African American Council (MA2C)

Asia-Pacific, Middle-Eastern Employee Business Network (APMEN) Hispanic Employee Business Network (HEBN)

Womens Leadership Network (WLN)

McDonalds Gay, Lesbian, and Allies Network (MGLAN)

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Education

McDonalds Intercultural Learning Practice is uniquely designed to promote

diversity and create a more inclusive environment. Some workshops

McDonalds offers its employees are as follows: Intercultural Learning Lab

Asian Career Development

Black Career Development

Hispanic Career Development

Lesbian Gay Career Development

Womens Career Development

REASON TO WORK WITH MCDONALDS

Fast-track Career Progression

Young , Energetic & Flexible Environment

Excellent learning Potential Dignity of Labour

World class Training Systems

Global Exposure

Good Benefits

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MCDONALDS FINANCIAL

ACCOUNTS ARENA

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The entire McDonalds System is thriving. Our world-class franchisees

continue to invest in their restaurants and their people in order to elevate the

entire customer experience, resulting in significant increases in cash flow.

Our suppliers perform what I like to call the McDonalds Daily Miracle

providing 32,000 restaurants an assured supply of safe, high-quality

products at competitive prices, with ever improving efficiency. Lastly, our

highly experienced company employees worked smarter to propel our

business forward. With the powerful alignment of our System and the Plan to

Win as the foundation, we will continue our winning formula: building on the

basics as we further modernize and differentiate the brand.

VIEW TO 2010 ANNUAL REPORT

The Company franchises and operates McDonalds restaurants. Of the

32,737 restaurants in 117 countries at year-end 2010, 26,338 were

franchised or licensed (including 19,279 franchised to conventional

franchisees, 3,485 licensed to developmental licensees and 3,574 licensedto foreign affiliates (affiliates) primarily Japan) and 6,399 were operated by

the Company.

HIGHLIGHTS FROM THE YEAR INCLUDED:

Comparable sales grew 5.0% and guest counts rose 4.9%, building on

2009 increases of 3.8% and 1.4%, respectively.

Revenues increased 6% (5% in constant currencies).

Company-operated margins improved to 19.6% and franchised margins

improved to 82.4%.

Operating income increased 9% (9% in constant currencies).

Earnings per share were $4.58, an increase of 11%.

Cash provided by operations increased $591 million to $6.3 billion.

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The Company increased the quarterly cash dividend per share 11% to

$0.61 for the fourth quarterbringing our current annual dividend rate to

$2.44 per share.

One-year ROIIC was 37.3% and three-year ROIIC was 38.3% for the

period ended December 31, 2010.

The Company returned $5.1 billion to shareholders through share

repurchases and dividends paid.

3-YEAR SUMMARY

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Dollars in millions, except per share

data 2010 2009 2008

Company-operated sales

$16,23

3

$15,45

9

16,56

1

Franchised revenues $ 7,842 $ 7,286

6,96

1

Total revenues

$24,07

5

$22,74

5

23,52

2

Operating income

$

7,473

$

6,841

6,44

3Income from continuing

operations

$

4,946

$

4,551

4,31

3

Net income $ 4,946 $ 4,551

4,31

3

Cash provided by operations

$

6,342

$

5,751

5,91

7

Cash used for investing activities

$

2,056

$

1,655

1,62

5

Capital expenditures

$

2,136

$

1,952

2,13

6Cash used for (provided

by)fin.activity

$

3,729

$

4,421

4,11

5

Treasury stock repurchased(11)$

2,648

$

2,854

3,98

1

Common stock cash dividends

$

2,408

$

2,235

1,82

3

Financial position at year end:

Total assets $31,975 $30,225

28,46

2

Total debt $11,505 $10,578

10,21

8

Total shareholders' equity $14,634 $14,034

13,38

3

Shares outstanding in millions

1,05

4

1,07

7

1,11

5

Per common share:

Income from continuing operations-

diluted $ 4.58 $ 4.11

3.7

6

Net income-diluted $ 4.58 $ 4.11

3.7

6

Dividends declared $ 2.26 $ 2.05

1.6

3

Market price at year end $ 76.76 $ 62.44

62.1

9

Company-operated restaurants

6,39

9

6,26

2

6,50

2

Franchised restaurants

26,33

8

26,21

6

25,46

5

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Franchised sales(12)$61,14

7

$56,92

8

54,13

2

McDonald's Consolidated Statement of Income

In millions, except

per share data

Years

ended

December

31,2010 2009 2008 REVENUES

Sales by Company-

operated restaurants $16,233.3

$

15,458.

5

$

16,560.

9Revenues from

franchised restaurants 7,841.3 7,286.2 6,961.5Total

revenue

s 24,074.6

22,744.

7

23,522.

4

OPERATING COSTSAND EXPENSES Company-operated

restaurant expensesFood

&

paper 5,300.1 5,178.0 5,586.1Payroll &

employee

benefits 4,121.4 3,965.6 4,300.1

Occupancy & other operating expenses

3,638.

0

3,507.

6

3,766.

7Franchised restaurants-

occupancy expenses 1,377.8 1,301.7 1,230.3Selling, general &

administrative expenses 2,333.3 2,234.2 2,355.5Impairment and other

charges (credits), net 29.1 (61.1) 6.0Other operating (income)

expense, net(198.2)

(222.3) (165.2)total

operating

cost and

16,601.5 15,903.

7

17,079.

5

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expensesOperating

income 7,473.1 6,841.0 6,442.9Interest expense-net of capitalized interest of $12.0, $11.7

and $12.3 450.9 473.2 522.6Nonoperating (income)

expense, net 21.9 (24.3) (77.6)Gain on sale of

investment (94.9) (160.1)Income before provision

for income taxes 7,000.3 6,487.0 6,158.0Provision for income

taxes 2,054.0 1,936.0 1,844.8

Net income $ 4,946.3

$

4,551.0

$

4,313.2

Earnings per commonshare-basic: $ 4.64

$4.17

$3.83

Earnings per common

share-diluted: $ 4.58

$

4.11

$

3.76Dividends declared per

common share $ 2.26

$

2.05

$

1.63Weighted-average shares

outstanding-basic 1,066.0 1,092.2 1,126.6

Weighted-average shares outstanding-diluted

1,080.

3

1,107.

4

1,146.

0

McDonald's Consolidated Balance Sheet

In millions, except per share data

Decembe

r 31,2010 2009

ASSETS Current assets

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Cash and equivalents

$

2,387.0

$

1,796.0

Accounts and notes receivable

1,179.

1

1,060.

4Inventories, at cost, not in excess of market 109.9 106.2Prepaid expenses and other current assets 692.5 453.7

Total current assets 4,368.5 3,416.3Other assets Investments in and advances to affiliates 1,335.3 1,212.7Goodwill 2,586.1 2,425.2Miscellaneous 1,624.7 1,639.2

Total other assets 5,546.1 5,277.1Property and equipment Property and equipment, at cost 34,482.4 33,440.5

Accumulated depreciation and amortization

(12,421.8

)

(11,909.0

)

Net property and equipment 22,060.6 21,531.5

Total assets

$

31,975.2

$

30,224.9

LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities

Accounts payable

$

943.9

$

636.0Income taxes 111.3 202.4Other taxes 275.6 277.4Accrued interest 200.7 195.8Accrued payroll and other liabilities 1,384.9 1,659.0Current maturities of long-term debt 8.3 18.1

Total current liabilities 2,924.7 2,988.7Long-term debt 11,497.0 10,560.3Other long-term liabilities 1,586.9 1,363.1Deferred income taxes 1,332.4 1,278.9Shareholders' equity Preferred stock, no par value; authorized - 165.0 million shares; issued - noneCommon stock, $.01 par value; authorized - 3.5 billion shares;

issued - 1,660.6 million shares 16.6 16.6

Additional paid-in capital 5,196.4 4,853.9Retained earnings 33,811.7 31,270.8Accumulated other comprehensive income 752.9 747.4Common stock in treasury, at cost; 607.0 and 583.9 million

shares

(25,143.4

)

(22,854.8

)Total shareholders' equity 14,634.2 14,033.9

Total liabilities and shareholders' equity 31,975.2 30,224.9

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INCOME TAX UNCERTAINTIES

The Company, like other multi-national companies, is regularly audited by

federal, state and foreign tax authorities, and tax assessments may arise

several years after tax returns have been filed. Accordingly, tax liabilities arerecorded when, in managements judgment, a tax position does not meet the

more likely than not threshold for recognition. For tax positions that meet the

more likely than not threshold, a tax liability may be recorded depending on

managements assessment of how the tax position will ultimately be settled.

The Company records interest and penalties on unrecognized tax benefits in

the provision for income taxes.

MCDONALDS IMPORT-

EXPORT.

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The business is managed as distinct geographic segments. Significantreportable segments include the United States (U.S.), Europe, and

Asia/Pacific, Middle East and Africa (APMEA). In addition, throughout this

report we present Other Countries & Corporate that includes operations in

Canada and Latin America, as well as Corporate activities and certain

investments. The U.S., Europe and APMEA segments account for 35%, 39%

and 16% of total revenues, respectively. France, Germany and the United

Kingdom (U.K.), collectively, account for approximately 60% of Europes

revenues; and Australia, China and Japan a 50%-owned affiliate accountedfor under the equity method), collectively, account for over 50% of APMEAs

revenues. These six markets along with the U.S. and Canada are referred to

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as major markets throughout this report and comprise over 70% of total

revenues. The Company continues to focus its management and financial

resources on the McDonalds restaurant business as we believe the

opportunities for long-term growth remain significant. Accordingly, during the

third quarter 2007, the Company sold its investment in Boston Market. The

Company disposed of its investment in Chipotle Mexican Grill (Chipotle) via

public stock offerings and a tax-free exchange for McDonalds common

stock.

In past years, both Boston Markets and Chipotles results of operations and

transaction gains have been reflected as discontinued operations for all

periods presented. In analyzing business trends, management considers a

variety of performance and financial measures including comparable sales

growth, System wide sales growth, restaurant margins and returns.

Constant currency results exclude the effects of foreign currency translation

and are calculated by translating current year results at prior year average

exchange rates. Management reviews and analyzes business results in

constant currencies and bases certain compensation plans on these results

because we believe they better represent the underlying business trends.

Comparable sales are a key performance indicator used within the retail

industry and are indicative of acceptance of the Companys initiatives as well

as local economic and consumer trends. Increases or decreases in

comparable sales represent the percent change in constant currency sales

from the same period in the prior year for all restaurants in operation at least

thirteen months, including those temporarily closed. Some of the reasons

restaurants may be temporarily closed include road construction, reimaging

or remodelling, rebuilding, and natural disasters. McDonalds reports on a

calendar basis and therefore the comparability of the same month, quarter

and year with the corresponding period of the prior year will be impacted by

the mix of days.

The number of weekdays, weekend days and timing of holidays in a

given timeframe can have a positive or negative impact on comparable

sales. The Company refers to this impact as the calendars shift/trading

day adjustment. This impact varies geographically due to consumer

spending patterns and has the greatest impact on monthly comparable

sales. Typically, the annual impact is minimal, with the exception of

leap years.

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System wide sales include sales at all restaurants, whether operated by the

Company, by franchisees or by affiliates. While sales by franchisees and

affiliates are not recorded as revenues by the Company, management

believes the information is important in understanding the Companys

financial performance because it is the basis on which the Company

calculates and records franchised and affiliated revenues and is indicative of

the financial health of our franchisee base.

MCDONALDS AT

CORPORATE SOCIAL

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McDonalds Corporate Responsibility = Values in

Practice

For McDonalds, corporate responsibility is about living their values each and

every day. Its about taking action, achieving results and always

maintaining open lines of communication with customers and other key

stakeholders.

Theyre determined to continuously improve their social and

environmental performance. They work hard, together with their

suppliers and independent restaurant franchisees, to strive toward a

sustainable future for company and the communities in which they

operate.

MCDONALDS VALUES

Placing the customer experience at the core of all they do

Customers are the reason for their existence. They demonstrate their

appreciation by providing them with high quality food and superior service, in

a clean, welcoming environment, at a great value. The goal is quality for

each and every customer, each and every time.

Commitment to people

It consists providing opportunity, nurturing talent, developing leaders and

reward achievement. They believe that a team of well-trained individuals with

diverse backgrounds and experiences, working together in an environment

that fosters respect and drives high levels of engagement, is essential to

continued success.

Believe in the McDonalds System

McDonalds business model, depicted by the three-legged stool of

owner/operators, suppliers, and company employees, is its foundation, and

the balance of interests among the three groups is key.

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Sound ethics is good business. At McDonalds, it hold themselves and

conduct business to high standards of fairness, honesty, and integrity. They

are individually accountable and collectively responsible.

Giving back to our communities

Taking seriously the responsibilities that come with being a leader. They

help their customers build better communities, support Ronald McDonald

House Charities, and leverage their size, scope and resources to help make

the world a better place.

Growing business profitably

McDonalds is a publicly traded company. As such, they work to provide

sustained profitable growth for shareholders. This requires a continuing

focus on customers and the health of system.

ENVIRONMENTAL RESPONSIBILITY

Doing more with less

Less is more when it comes to the environment less energy, fewer

emissions and less waste. At McDonalds, they seek to reduce their

environmental impact because it is not only good for our planet, but also

good for long-term financial success. Aim is to use less and spend less

through three areas of activity: sustainable packing and waste management,

energy conservation and green restaurant design.

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McDonalds continues to test and learn how to incorporate more green

elements into their buildings. There are green components already present

in their existing restaurant standards around the world, and they are working

to enhance these. Several of markets, including France, Canada, Germany,Brazil, Costa Rica and the U.S., currently have plans to install and track the

performance of new sustainable features to improve energy efficiency.

Waste Conscious

McDonalds uses an internal global scorecard tool called the Eco-Filter to

help them to make packaging decisions while keeping the environment in

mind. Over time, they have made changes aimed at reducing the amount ofpackaging and increasing their use of recycled materials. For example, in

2009, McDonalds France introduced a frappe cup and lid made out of 40%

recycled plastic (rPET). Using recycled materials reduces the amount of

virgin resin needed by 123 metric tons per year and reduces the amount of

landfill waste by an equivalent amount

Serving Up Quality, Affordability and the Power to Make the

Right Choices

McDonalds is committed to offering quality at an affordable price. Theyre

also committed to the well-being of customers. They work together with their

employees, franchisees and suppliers to serve a balanced array of quality

food products and provide the information needed to make individual

choices.

There continues concern about obesity rates and related risks to humanwell-being among consumers, governments, NGOs, and health and nutrition

experts. They take these issues seriously and are working to do what they

can to positively influence the situation.

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Giving Customers What They Want Choice and Regional

Variety at the Right Price

Many equate the Golden Arches with classics such as the Big Mac and

World-famous Fries. These consumer favourites are part of McDonalds coremenu, but they have continued to expand their selection of food and

beverage choices to meet the diverse needs and preferences of customers

in every country where they operate.

McDonalds has continued to develop new menu offerings to meet the needs

of diverse markets around the world. For example, McDonalds USA has

introduced Fruit and Maple Oatmeal, a wholesome new addition to the

breakfast menu featuring about cup of real fruit and 32 grams of wholegrains. (This is two-thirds of an individuals daily requirement.) Theyve also

introduced a line of new juices throughout Latin America that features 40%

fewer calories and less sugar while still providing the benefits of fruit juice. In

other markets, they continue to expand portable sandwich offerings with

additional wrap offerings, including grilled chicken with fresh lettuce and

tomatoes.

Regardless of the location, menu options are always developed with thecustomers lifestyle and financial needs in mind.

McDonalds Is Committed to Its People

It goes without saying that they support fundamental human rights for all

people. They comply with employment laws in every market where they

operate, and will not employ underage children or forced labourers. They

respect the right of employees to associate or not to associate with anygroup, as permitted by and in accordance with, applicable laws and

regulations.

But these things are just the greens fees to running a successful, sustainable

business in todays world.

Delivering on responsible food and customer expectations demands an

engaged, committed and talented workforce. McDonalds knows this, and so

do McDonalds franchisees. People are absolutely fundamental to brand andto building business.

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APPROACH

They have a modern, strategic approach to addressing these and otherchallenges. Business is strong and they need high-performing employees to

help them continue that trend. Their operations span a range of cultural

environments. Theyre diverse by design. People policies and programs are

designed to meet employee needs through the following priorities:

Respect - Create a diverse and inclusive culture where everyone feels

valued and respected.

Commitment Enhancement - Enhancing employment value propositionto drive high levels of employee commitment.

Talent Management - Attract, develop and retain the most talented

people at all levels.

Reaching out and giving back to the

Communities they serve

Giving back to the community is an essential part of McDonalds heritageand values it is part of our DNA. They are kind of committed to using

scope, people and profits to create lasting impact on the communities in

which they live and work. Across the globe, they seek to make a difference

through four primary avenues: support of Ronald McDonalds House

Charities and their childrens programs; local, regional and global

partnerships and sponsorships; involvement by their owner/operators in their

local communities; and disaster relief.

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MCDONALDS IN INDIA

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McDonalds India Pvt. Ltd (MIPL),the wholly-owned subsidiary of theUS-based fast-food giant, McDonald's Corporation, is likely to put on hold its

earlier declared expansion plan of opening 80 restaurants in India by 2003.

McDonalds has 132 restaurants in India of which 79 are in North & EastIndia and 53 in West & South India.

79 restaurants in North & East India:

33 in Delhi

22 in Uttar Pradesh Noida (5), Ghaziabad (4), Mathura (1)

(Highway and Drive Thru), Kanpur (2), Meerut (2), Lucknow (4),

Agra (1), Allahabad (1), Varanasi (2)

11 in Haryana - Faridabad (3), Manesar (1) (Highway and Drive- Thru), Gurgaon (5), Karnal (1) (Highway and Drive - Thru),

Panipat (1)

7 in Punjab - Chandigarh (2), Ludhiana (2), Doraha (1)

(Highway and Drive - Thru), Jalandhar (1), Patarsi (1) (Highway

and Drive - Thru)

3 in Rajasthan - Jaipur (3)

1 in Uttaranchal - Dehradun (1)

1 in West Bengal Kolkata (1) 1 in Himachal Pradesh- Jabli (1).

53 Restaurants in West & South India:

32 in Maharashtra Mumbai (23), Pune (8), Nasik (1)

7 in Gujarat Ahmedabad (4), Vadodara (2), Surat (1)

7 in Karnataka Bangalore(7)

4 in Andhra Pradesh Hyderabad (4) 3 in Madhya Pradesh Indore (3)

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McDonald's India Culturally Sensitive.!!!

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1996 The first McDonald's restaurant opened on Oct. 13, at Basant Lok,

Vasant Vihar, New Delhi. It was also the first McDonald's restaurant

in the world not serving beef on its menu

1997 The first Drive - Thru restaurant at Noida (UP)

The first disabled friendly store at Noida (UP)

1999 The first Mall location restaurant at Ansal Plaza (New Delhi)

2000 The first highway restaurant at Mathura (UP)

2001 The first thematic restaurant at Connaught Place (New Delhi)

2002 The first restaurant in a food court at 3C's, Lajpat Nagar (New

Delhi)

The first restaurant at the Delhi Metro Station at Inter State Bus

Terminus

The first annual fundraiser in association with ORBIS and Dr.

Shroff's Charity Eye Hospital.(Delhi)

2003 The first Dessert Kiosk - Faridabad (Haryana)

2003-04 Indigenous products like McAloo Tikki, McVeggie and Pizza McPuffexported to Middle East countries

2004 McDonald's Delivery Service (McDeliveryTM ) introduced in New

Delhi

2006 McDelivery on Bicycles flagged off at Chandni Chowk (Delhi)-

another first initiative by McDonald's India

100th McDonald's Restaurant in India

2007 The first Restaurant opened in the Eastern Region at Park Street,

Kolkata (West Bengal)

The first Restaurant opened at Airport.(Domestic Airport, New

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McDonald's worldwide is well known for the high degree of respect for the

local customs and culture. McDonalds has developed a menu especially for

India with vegetarian selections to suit Indian tastes and preferences.

Keeping in line with this, McDonald's does not offer any beef or pork

items in India. In the last decade it has introduced some vegetarian and

non-vegetarian products with local flavours that have appealed to the Indian

palate. There have been continuous efforts to enhance variety in the menu

by developing more such products.

McDonald's has also re-engineered its operations repeatedly in its 11 years

in India to address the special requirements of a vegetarian menu.

Vegetable products are 100% vegetarian, i.e.

They are prepared separately, using dedicated equipment and utensils.

Only pure vegetarian oil is used as a cooking medium.

Cheese and sauces are completely vegetarian and egg less.

Separation of vegetarian and non-vegetarian food products is maintained

throughout the various stages of procurement, cooking and serving.

McDonald's India - A decade of quality service

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For its unparalleled benchmarks established in the QSR sector

McDonalds India has been bestowed with many prestigious awards.

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Most Respected Company' for four consecutiveyears, 2003-2007 in the Food Services sector,

by Businessworld

Most Wanted Brand of the Year' Award 2003 &

2004 by Franchising Holdings India Ltd.

Retailer of the Year' Award for catering

services, 2004-2006 at the Images Retail

Awards.

The 'Most Preferred Fast Food Outlet' 2006 &2007 by Awaaz Consumer Award, hosted by

CNBC.

Star Retailer - The Consumer Way, Food

Services Retailer' of the Year 2006 & 2007, by

Franchise India

Amity Corporate Excellence Award'-in 2007 &

2008


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MCDONALDS AND ITS

COMPETITORS: THE

BRAND FIGHT

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McDonalds vs Burger King

MacDonalds have a few franchises where they have playgrounds tokeep kids busy with play while adults have their snacks. McDonalds

also have home delivery at some places.

As far as size of burger is concerned, Burger King wins with the size

of its burger being almost 20% bigger than that of McDonalds.

McDonalds is cheaper than Burger King, but this is to be expected with

a size difference.

Most of the customers who fluctuate between Burger King and

McDonalds feel that the quality of meat is slightly better at Burger King. There is a difference in taste also owing to Burger King Flame broiling

their meats. This gives a distinct flavour to foods in BK while at

McDonalds fry meats on a grill and then throw them on a holding pan

from where they are served, sometimes remaining there for more than

a few minutes thus becoming dry and flavourless.

Another difference that I feel is a genuine one is that McDonalds cater

more to kids tastes than adults as they believe it is kids who ask

parents to come to McDonalds. On the other hand, the flavour andtaste at burger king suggests it is primarily to cater to adults taste

buds.

The Marketing

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McDonald's single biggest accomplishment is their ability to market to

children. A great percentage of their business comes from

children asking begging their parents to take them to McDonald's. For

years, Burger King had no answer to this. It had a sad Kid's Club with B-level

promotions, while McDonald's co-marketed with children's hits such as

Disney, Mattel, and Barbie.

So how did Burger King gain ground on Ronald, Grimace, and

the Ham burglar?

By not competing with them at all, but by targeting a slightly older

demographic. It began with the "subservient chicken" ad campaign,

capturing the Adult Swim teen audience, and has continued with the "Creepy

King" and his Xbox games.

Another diversion in strategy for the two companies is what they are

advertising to adults. McDonald's has been advertising their salads, looking

to appease the mothers who bring their children into the golden-arched

restaurants, while Burger King has gone the other direction, promoting the

Stacker sandwich, a sandwich made of layers of meat and cheese stacking

up to four burgers high. This sandwich, I can imagine, caters more to the

young stoners that would play an Xbox game based on a fast-food brand.

Regardless, Burger King's strategy of avoiding McDonald's strengths has

paid off, and both chains and their shareholders are savouring the success.

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McDonald s vs Subway

McDonalds hamburger: patty (100% pure inspected beef; no additives,no fillers, no extenders.), bun, ketchup, pickle slices, onions (dehydrated),

seasoning-salt, pepper, partially hydrogenated vegetables oil(cottonseed

and soybean.)

Subway sub sandwich: turkey breast: sliced turkey breast and standard

vegetables (can be altered-iceberg lettuce, tomatoes, red onions, green

peppers, olives and pickles.

The ingredients are different

Subway6 inch turkey breast: 280 calories, 5 FAT (grams).

McDonalds Big Mac: 560 calories, 30FAT (grams).

A subway sandwich compared to a McDonalds Big Mac can save hundreds

of calories and at least 25 Grams of Fat.

It is clear that from above comparison, Subway always associate them with

The Biggest Loserwhile for most of the time, McDonalds is on the other

way round The Bigger Gainer.

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METHDOLOGY

This project is prepared with the help of theoretical knowledge as well as

practical knowledge & a crumb of advises & suggestions from the concerned

professors.

The theoretical pert taken from the various books & magazines

available on this subject. And other recent happing in marketing is taken

from magazines & news paper.

As far as practical is concerned, all the information about the companies

information available on net.

Overall this mission has been completed with the combination of al those

things & it had been with the best of my facts & information.

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CONCLUSION

TODAY, MCDONALDS HAS GROWN TO 25,000

RESTAURANTS IN ABOUT 120 COUNTRIES SERVING 50MILLION CUSTOMERS DAILY. BECOMING THE

LARGEST FAST FOOD CHAIN IN ALL OVER THE

WORLD

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PHOTO GALLERY

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BIBLIOGRAPHY

MAGAZINES:-

BUSINESS WORLD.

100 TOP BRANDS.

THE VALUABLE BRANDS OF INDIA.

WEB SITES:-

www.mcdonalds.com

www.mcdonaldsindia.com

en.wikipedia.org/wiki/McDonald's

www.mcdonaldsindia.net/

Scribd.com

Slideshare.com

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B Y EB Y ES E E U A TM c D o nS

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