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armed forces. M&M enjoys a market share of more than 50 per cent in this
segment.
M&M's automotive division is in the business of manufacturing and marketing
utility vehicles and LCVs. It is the leader in this segment, with a market share in
excess of 50 per cent. The M&M brand symbolizes ruggedness, durability,
reliability, easy maintainability and operational economy. The customer profile
here includes individuals, traders, entrepreneurs, contractors, tour operators, taxi
owners, car hire companies, government departments and institutions, and the
Indian army.
M & M Automobile Limited manufactures sports utility vehicles (SUV), three
wheelers, multi utility vehicles (MUV), light commercial vehicles & pick-ups. It has
its plants in Mumbai, Nasik, Igatpuri, Zahirabad, and Haridwar.
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Policies At M&M: -
Their policies are influenced by their past, tempered by their present and will
shape their future. The policies are an amalgam of what they have been, what
they are and what they want to be.
Good Corporate Citizenship
As in the past they will continue to seek long-term success, which is in alignment
with the country needs. They will do this without compromising ethical business
standards.
Professionalism
They have always sought the best people for the job and given them the freedom
and the opportunity to grow. They will continue to do so. They will support
innovation and well reasoned risk taking, but will demand performance.
Customer First
They exist and prosper only because of the customers. They will respond to
changing needs and expectations of their customers speedily, courteously and
effectively.
Quality Focus
Quality is the key to delivering value for money to their customers. They will
make quality a driving value in their work, in their products and in their
interactions with others. They will do it First Time Right.
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Dignity of the individual
They will individual dignity, uphold the right to express disagreement and respect
the time and efforts of others. Through their actions, they will nurture fairness,
trust and transparency.
These policies are the compass that guides their actions, both personal and
corporate.
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Departments at Mahindra & Mahindra
Business Planning Department
They create the vision about the future of the company
They maintain the accounts of the company
They decide upon the profits and margins
They conduct the audits
They look after the cash flow and the revenue generation
Research & Development
They develop products as per Marketing needs
They strive towards Innovation so as to provide the best and latest
products
They try to produce goods as per Customer Delights
They manufacture new models of the same product which can lead to
improvement in the same product
Production
They look after the production, planning and co-ordination.
They communicate with the marketing and sales department and decide
what and how much to produce
They have to take care of the environment
They also have to look after the safety of the employees while producing
Marketing and Sales
They predict the expected sales
They provide after sales service to the customers
They update the dealers with the latest information
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Vendor Management
In this department there is: -
The materials department
Strategy sourcing department
Pricing Cell
Product development
Quality Department
Capital Purchase: - They allocate the Capital and purchase accordingly
Engineering: - They look after the designing of tools and tooling.
System of Quality: - They maintain the quality of production.
HRD
They select the right people for the right jobs.
They look after the training and development of personnel.
They recruit the employees as per the requirements.
They motivate the employees so as to bring out the best from them.
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Threats To M&M
Because of more stringent regulatory norms and emission control
measures, manufacturing cost will go up which may affect margins and
profits.
Reduction in Import Tariffs will increase the competitive pressure on the
Indian vehicle manufacturers.
Exports may be adversely affected if the Rupee continues to appreciate.
The increase in lending rate from banks on vehicle loans may affect the
sales volumes.
The entry of new players has made the business more competitive.
M&M being a diesel-based company, the reduction in the price of petrol
and the increase in the price of diesel may lead to a fall in sales.
Mandatory use of vehicles by using alternative energy sources like CNG
and electricity may affect the sales volume. Major threats in the escalation of raw materials prices. Major increases in
prices of steel, iron and rubber may affect the demand.
Steep increase in crude oil prices may affect sales.
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Facts About M&M: -
They are a Rs.3 billion company.
By the year2015 the plan to produce 1 million vehicles.
In the automotive sector, they have 11,000 employees working and in
all the companies together they have 24,000 employees.
They have entered into a joint venture with Renault & International
Trucks and Engine Company.
All the vehicles produced by Mahindra & Mahindra are diesel-based and
Scorpio was the only car with a petrol variant.
In 3 years they will have thrice the revenue and three times the profits.
They are allowed to communicate with anyone, at any level and at any
status, in and out of the organization.
They have an open-door policy where anyone can walk in anyones
cabin at any given time.
They maintain the same uniform from the President to the Lower
Employees and everyone has to punch the time.
The 1st and 3rd Saturdays of each month are holidays. They enjoy 9 extra-
ordinary leaves and 30 annual leaves.
They can be asked to go and work in any location or any department
and in any subsidiary company.
They have won the following Awards: -
i. The prestigious Demning Award for quality.
ii. Total Productive Maintenance (TPM) Award.
iii. National Energy Conservation Award for the 3rd consecutive
year.
They have the following certifications:-
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i. TS 16949 for Environmental Safety.
ii. ISO 14000 for Quality Standards.
iii. BS 7795 for IT Security.
Corporate Responsibility At M&M
Corporate Social Responsibility has been basic to our philosophy at the
Mahindra Group since our birth in 1945. It has been an intense but deliberately
low profile activity based on the belief that social responsibility is a privilege and
not a portal for publicity. Today, there is a clarion call for business to lend a hand
to tackle the social challenges that are being thrown into relief because of our
increasing prosperity. It is our belief and conviction that Indias recent spectacular
growth provides us with an opportunity to redress some of the weaknesses that
exist in our social fabric. One cannot have a large section of a population denied
even the basic amenities like water, housing, health care and education. This is
not an acceptable situation. We are therefore convinced and believe that the
weaker sections of our society need help and support. We feel that the route to
addressing their problems is through education and training. We need to impart
skills which make it possible for them to be employed. The focus of our CSR
therefore is on appropriate education, vocational education and livelihood training
for the economically and socially disadvantaged, primary education for the girl
child and higher education for those who merit it. We plan on setting up Mahindra
Pride Schools that will provide youth from socially disadvantaged sections of
society with training to enable them to gain employment based on their skills.
Studies are currently on to decide the locations of these schools. Concurrently,
work has begun on curriculum development for the courses that will be offered.
Courses will be carefully designed based on the requirements of industry, in
terms of manpower and skills. Sunrise and booming sectors with growth potential
and shortage of skilled manpower will be targeted. We hope this will lead to
economic and social empowerment for many young people who are, today,
disadvantaged. We will also support six government schools in Mumbai. The aim
is to improve the overall quality of education in these schools and to achieve
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improved learning outcomes by working with teachers, children and the
community. Again, the main beneficiaries will be the children attending these
schools. In India only 3 girls out of every 10 who enroll in Std. I go on to complete
Std. X. To make a dent in this problem, the Group supports the education of
6,000 disadvantaged girl children through the Nanhi Kali project of the K. C.
Mahindra Education Trust. These girls belong to urban slums, backward and
tribal areas in rural India, where education is not a priority for girls. Through the
Nanhi Kali project they will not only receive education, but also get direct support
in the form of uniforms, clothes, stationery, etc. thus removing some of the
barriers to there completing school. We are also doubling the number of
Mahindra All India Talent Scholarships from 300 to 600. These scholarships are
given to students who wish to pursue job-oriented diploma courses in recognized
Government Polytechnics, enabling them to qualify for employment. Scholarships
are given to economically disadvantaged and socially weaker strata in both rural
and urban India. Deafness is another kind of disadvantage that is rarely
acknowledged in our society. As a special gift to the hearing impaired, the Group
will donate 60 Cochlear Implants over a 3-year period to beneficiaries below the
age of 5 years. With training, this will enable 60 profoundly deaf children to lead a
normal life and realise their full potential. Each Cochlear Implant costs
approximately Rs. 5 lacs. So far 7 children, all from the lower socio-economic
strata, have received the implant. Our employees believe that social
responsibility does not end with the giving of money. It is equally important to
give of our time, and of ourselves. The Group has launched a unique ESOPs
(Employee Social Options) Plan, through which its 24,000 strong workforce can
choose from a menu of social options, and participate in CSR activities by
volunteering their time. Through this plan, on any given day, Mahindra
employees somewhere in the country will be contributing directly to society.
In order to ensure that sufficient funds are available for us to undertake this task
in a modest manner, we as a Group have committed that one percent of our
Profits after Tax will be available on a continuing basis to support this CSR
initiative largely to benefit the socially and economically disadvantaged.
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- Keshub Mahindra
(Chairman)
McDonalds
Introduction
McDonald's is the world's No. 1 fast-food company by sales, with more than
31,000 flagship restaurants serving burgers and fries in more than 122 countries.
Thirty one thousand locations serve 51 million customers each day. More than 70
percent of McDonald's restaurants around the world are owned and operated by
independent local business people.
In addition, the company operates other restaurant brands, such as Aroma Caf,
Boston Market, Chipotle Mexican Grill, and has a minority stake in Pret a
Manger. Most standalone McDonald's restaurants offer both counter and drive-
through service, with indoor and sometimes outdoor seating. The Drive-Thru,
Auto-Mac, or McDrive as it is known in many countries, often has separate
stations for placing, paying for, and picking up orders, though the former two
steps are frequently combined. In some countries "McDrive" locations near
highways offer no counter service or seating. In contrast, locations in high-
density city neighborhoods often omit drive-through service.
The McDonald's Corporation's business model is slightly different from that of
most other fast-food chains. In addition to ordinary franchise fees, supplies, and
percentage of sales, McDonald's also collects rent, partially linked to sales. As a
condition of the franchise agreement, the Corporation owns the property on
which most McDonald's franchises are located.
According to Fast Food Nation by Eric Schlosser (2001), nearly one in eight
workers in the US has at some time been employed by McDonald's. The book
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also states that McDonald's is the largest private operator of playgrounds in the
U.S., as well as the single largest purchaser of beef, pork, and potatoes.
The Policies At McDonalds
They are dedicated to providing customers unparalleled levels of Quality,
Service, Cleanliness and Value. It is what their founder, Ray Kroc, taught
them.
They are committed to their people because they know that a diverse
team of well-trained individuals, working together, is the key to their
continued success.
They approach all aspects of their business with honesty and integrity.
They will always give back to the communities in which they do business.
They give back to the system that provides their success.
They celebrate their achievements, yet they always strive to achieve newheights.
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The Principles That Guides McDonalds: -
They are committed to exceeding their customers' expectations in
every restaurant every time.
They believe their success is dependent upon their three-legged stool -
Corporate, Franchisee Partners, and Supplier Partners.
They have a passion and a responsibility for enhancing and protecting the
McDonald's brand.
They believe in a collaborative management approach, employing a
mutually respectful business philosophy.
They are committed to franchising, maintaining a highly collaborative
relationship with their franchisees and making franchising decisions based
on what's best for their customers.
They will seize every opportunity to innovate and lead the industry on
behalf of their customers
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HRD AT MCDONALDS: -
Recruiting, selecting and training for success
McDonald's employs on a large scale. People are its key asset. This is because
customer satisfaction is vital for success. It is best brought about by good
workers. So it is vital that the way it recruits and trains staff is thorough. It needs
to attract, train and keep the best workers. A typical McDonald's employs about
60 people. Most are hourly paid. Managers and office staff are paid a salary. For
each job there is a:
Job description: This describes the duties of the job.
Person specification: This describes the skills and personal qualities
needed for the job.
Hourly paid
Each outlet fills its own hourly paid jobs. Hourly paid workers are recruited
through adverts in restaurants, job centre and career fairs. Interviews are
planned using the McDonald's interview guide. Candidates are rated on a scale.
Jobs are offered to those with higher ratings.
Managers
The management department in London recruits managers. They come from two
main sources. Over half are promoted hourly paid workers. Most of the rest have
degrees. People can apply on line, via the recruitment hotline or by post. The
online process includes a psychometric test. This shows whether the person is
suited to the job. A good first stage interview is followed by two days on site. This
is called 'On the Job Experience' or OJE. If the OJE is a success, there is a final
interview after which whether or not to appoint is decided.
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Welcome
Those who are successful are introduced to the business. This is called
induction. The Welcome Meeting gives an outline of the Company. It includes the
job role and food, hygiene and safety training. Standard policies and methods of
doing things are explained. The Meeting also covers administration, benefits and
training.
Training
McDonald's provides for workers to further their careers. There is a full training
programme which includes:
The Welcome Meeting.
A development programme. This has both on and off the job training.
Ongoing training. This goes towards an appraisal grade.
The Management Development Curriculum is aimed at people over 21 who have
degrees or some management background. There are four key programmes.
Running a shift.
Running systems.
Being a restaurant leader. Team building, communication, and decision
making.
Being a business leader.
Managers can also have the chance to work in the regional office.
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1. THE MARKETING PROCESS AT MCDONALDS
Marketing is based on finding out what customers want, and then providing it.
McDonald's is one of the world's best known brands. Branding is a vital part of
the marketing process. A strong brand presents a clear, strong message. This is
communicated through logos, colour schemes, slogans and other images. For
instance, a key part of the McDonald's brand is its 'M' logo otherwise known as
'The Golden Arches'.
Market research
This is needed to find out what customers want. McDonald's uses it to work out
the size of its market. It can also see if the market is growing or not. This helps it
to compete. Market research looks at:
types of customers and their wants
factors outside the firm's control such as changes in the economy or the
law
added reasons why people buy, such as image and enjoyment of thebrand.
McDonald's uses all the information to help it decide questions such as where to
locate an outlet, or menu changes.
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SWOT
McDonald's needs to meet the wants of its target market. To do this it needs to
find out what is helping it and what is not. It looks at its own strengths and
weaknesses. For instance, the brand is a strength. It then looks at outside
opportunities and threats. This is called a SWOT analysis. Its marketing plan
builds on the strengths and opportunities. It makes sure that any weakness or
threat has as little effect as possible.
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Facts About McDonalds: -
Food Quality: -
McDonalds serves 100% beef, 100% chicken, and Grade A eggs
McDonalds food comes only from certified suppliers who are audited and
inspected on a regular basis
Many of the foods McDonalds serves are from the same trusted brands
consumers purchase at the grocery store to enjoy at home Dannon,
Kraft, Nestl, Tyson, Dasani, Newmans Own, Heinz, Minute Maid and
many others
Food Safety: -
More than 2,000 safety, quality and inspection checks surround
McDonalds food as it moves from the farms to their restaurants
McDonalds requires that 72 safety protocols are conducted every single
day in McDonalds restaurants
McDonalds works closely with independent experts on science, healthand food to help McDonalds develop the most stringent safety protocols
Nutrition: -
For 30 years, McDonalds has provided comprehensive nutrition
information -- the first in the QSR industry to do so; this year, nutrition
information is on packaging, putting it right in the hands of customers
McDonalds serves premium salads, chicken, yogurt, bottled water, fruit &
more
A McDonalds hamburger is 260 calories and 9 grams of fat, and is the
same size as it was when introduced in 1955
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Jobs & Opportunity: -
20 of top 50 management started in McDonalds restaurants, including
their CEO, Jim Skinner
67,000 McDonalds restaurant managers and assistant managers started
as restaurant staff
McDonalds is the only restaurant organization to receive credit
recommendations from the American Council on Education (ACE)
Their People: -
Best Place to Work for Minorities Fortune Magazine 2005
McDonalds invests more than $1 billion annually in training
Hamburger University has more than 275,000 graduates worldwide &
with training, eligible for college credits
One out of 5 Best Places to Work in Latin American America
Economic Magazine 2005
Community Commitment: -
Ronald McDonald Houses are homes away from homes for families with
seriously ill children in more than 259 local communities around the world
Ronald McDonald Care Mobile program is a fleet of state-of-the-art
vehicles that deliver cost-effective medical, dental and education services
directly to underserved children in their own neighborhoods
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McDonald's Corporate Responsibility
At McDonalds, responsibility means striving to do what is right, being a good
neighbor in the community, and integrating social and environmental priorities
into their restaurants and our relationships with suppliers and business partners.
They are working hard to understand the complex issues that confront their
business and their industry and how they can make a significant difference.
Balanced, Active Lifestyles : Around the world, McDonalds wants to help
children and families achieve their balanced, active lifestyles goals. Within aglobal framework, their local and regional business units are rolling out a host of
new programs and menu offerings.
Community: McDonald's in the community means local development, support
for youth sports, and other community programs, help in times of need. Through
their support for the Ronald McDonald House Charities, they help improve the
health and well-being of children and families around the world.
Environment: McDonald's has a long-standing commitment to environmental
protection. Their restaurants around the world have innovative programs for
recycling, resource conservation, and waste reduction. They are working with
expert advisors and their suppliers to make further changes so that resources
used to meet today's needs will remain available for the needs of future
generations.
People: At McDonald's, they know that people are their most valuable resource.
Their People Principles express their commitment to respect, recognition,
openness, and employee development. They offer structured training programs
at every level and have a distinguished record of diversity in their U.S. business.
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Responsible Purchasing: McDonald's works with their suppliers to incorporate
socially responsible practices into their operations and build capabilities for
continuous improvement. Guided by expert advisors, their programs address
animal handling practices, uses of antibiotics, the quality and safety of our
products and restaurant environments, conservation of natural resources, their
suppliers' employment practices, and more. They have adopted a
comprehensive, strategic approach to these issues in their food supply chain.
Resources & Recognition: To guide their corporate responsibility efforts,
McDonald's seeks the advice of independent experts. They have been
recognized for their leadership in corporate responsibility by numerous
organizations and publications.
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