2/26/2011

MCDONALDS

RESEARCH ON THE MCDONALDS

Group Members
Names
Ajit Nishad Saumil Parihk Manisha Peshwa Aditya Rane

Roll No
325 328 330 334

ACKNOWLEDGEMENT

We would like to thanks Nandini Mamam for assigning such an interesting project which has really explored our real talent and it helped us to make projects for our professional life. It has been really knowledge sharing experience to make this project. We would also like to thanks our parents who have helped us throughout our project. .This project helped us to make better known what basically research and survey is.

Presented to Prof Nandini Maam (SYBMM) (Nagindas Khandwala College)

OBJECTIVES OF RESEARCH
1 To know about the problems and challenges faced and facing by company. 2 To identify what factors made the customers dissatisfied with McDonald's and why it leads to allegations. 3 4 To know the views of people about McDonalds What are the factors about Mc Donalds that makes customers happy and dissatisfied? 5 6 To find the current corporate image of McDonald To determine whether the statements McDonalds makes are part of McDonalds 7 8 Is McDonalds serves a range of high-quality foods Is McDonalds provide the right balance between the energy they consume as food and the energy they burn in physical activity

.Methodology of this project For accessibility and availability of information we have chosen to work on the Most of the information used in this project is from primary Sources and secondary data. The main source of information was the, survey, in depth interviews and focus group discussion. In addition information was also collected from websites.

Research processes for McDonalds

Our research question is What are the factors about Mc Donalds that makes customers happy and dissatisfied? Is McDonalds serves a range of highquality foods? To determine whether the statements McDonalds makes are part of McDonalds? So we have for this in this way. y Designing the study y Sampling design y Resource allocation and budget y Valuing research information y Pilot testing y Data collection y Analysis and interpretation y Reporting the results

Designing the study: The objective of our research is to find the the factors about Mc Donalds that makes customers happy and dissatisfied. We have also planned for survey that is street, in-depth interview which will be conducted on the basis of structured questionnaires so that anything may not be missed. These techniques will be used due to the following benefits: y It is the best way of data collection. y Observation can be made y Analysis of written and recorded material

y Behavioral observation. y Knowledge can be gained. y Opinion can be taken. And our source will be people and organization. Survey questionnaires will be simple .it will be the mixture of open ended, close ended, forced, unforced and rating scale. Simple wording should be employed .survey will be evaluated on the basis of following factors: y Cost y Sample accessibility y Time constraints y Topic coverage Sampling design: Sample will be selected as college and residential area for survey and face to face discussion. So that accurate results can be attained Resource allocation:

Valuing research information: Without information our work will be on imagination based that may be wrong and can bring high cost of loss for us .We can make wrong hypothesis which will be not consistent .our result may be wrong much. So with information our observation will be more .our results will be real and our research will be authenticated so real data will be used through different techniques of research. Our experience will be high for future plans. Our exposure will be high.

Data collection: Data will be collected through survey by using in depth interview will be conducted for detailed information to know much about the subject .McDonalds websites and considering the information on net. Analysis and interpretation: Analysis of the data will be managed carefully by taking percentages of favorable and unfavorable results. Then summary of data will be presented by using statistical techniques. Than the result will be made after interpretation and can check whether the results are consistent with hypothesis or not. Pilot testing: Pilot testing will be employed to check the weaknesses in design and instrumentations. We will see whether the questionnaire is simple or complicated? Whether the questions are the mixture of forced or unforced? Whether all the questions are based on structured or not? Whether the objective is clear or not? Whether hypothesis is clearly chosen? In case of the failure of null hypothesis, what alternative hypothesis will be selected? Reporting the results: At the end report will be prepared in which we provide all the information in this pattern: y An executive summary y An overview of the research y Implementation strategies y A technical appendix y Attachment of survey questionnaires

Introduction of McDonalds
The first McDonald's was built in 1940 by the McDonald brothers (Dick and Mac) McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving more than 58 million customers daily.[4]In addition to its signature restaurant chain, McDonalds Corporation held a minority interest in Pret A Manger until 2008, was a major investor in theChipotle Mexican Grill until 2006 and owned the restaurant chain Boston Market until 2007 Started off as a hot dog stand in CA [1937] The McDonald brothers realized that hamburgers were their most profitable menu item, and changed their business to serve a limited menu. The majority of the restaurants are owned through franchises

A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9 billion.

McDonalds is a large corporation in the fast food industry. They have been around since 1955 when Ray Kroc started the chain of McDonalds. They have been growing ever since.

QSC&V......The Foundation that built McDonald's success When asked to explain McDonald's success, founder Ray Kroc used to say, "We take the hamburger business more seriously than anyone else." Kroc was a perfectionist. From the day he opened his first restaurant, he vowed to give his customers high quality products, served quickly --and with a smile, in a clean and pleasant environment, and all at a fair price. Quality, Service, Cleanliness and Value (QSC&V) became the philosophy that drove McDonald's business. McDonald's Quality Management instills the culture of quality through such principles as being customer driven, managing with facts, valuing people, and continually improving every aspect of our business Service that is fast and friendly and has always been a foundation for success at McDonald's Cleanliness for us means having the cleanest and freshest facilities from the kitchen to the rest rooms and parking lots Value at McDonald's means the total experience...... great food, friendly folks, a clean environment, quick and accurate service and fun!

 Going International
1971 McDonalds really starts going global  Asian: Tokyo Ginza District, Japan  European: Netherlands, Munich, Germany 1967 - Canada & Puerto Rico (first restaurants outside the U.S.) 1971 - Tokyo, Japan, Amsterdam, Netherlands & Sydney, Australia 1979 - Rio de Janeiro, Brazil 1990 - Moscow, Russia & China The first McDonalds Drive-Thru opened in Sierra Vista, Arizona in 1975 Happy Meals were added to McDonalds menu in 1979 McDonalds launched the new worldwide Balanced Active Lifestyles public awareness campaign in 2005 McDonalds celebrated its 50th Anniversary on April 15, 2005 They employ 447,000 people. They have over 3,200 restaurants in over 119 countries. The majority of the McDonalds franchises are owned by individual franchises. Their primary competitors are other fast food chains such as Burger King and Wendys. The competition can get pretty intense to build customer loyalty to their food. McDonalds has 132 restaurants in India of which 79 are in North & East India and 53 in West & South India. The McDonalds Brand is one of the most well known Brands in the world.

SWOT Analysis of McDonalds

Strengths
y Huge target market y Commercial area y Perfect location y Quality foods y Friendly services

Weakness
Disposing waste Management of service

Opportunities
Newer products More franchises - less risk Job opportunities Scope for expansion

Threats
Strong competitors, Competition - global, national, regional, and local. Commodity

 Growing health conscious population Food safety bacteria, e. coli, 41 -150

Pest Analysis
y Political
y Ecological/environmental issue y Fast food industry giants such as Wendy's, Pizza Hut, and McDonalds are some of the largest consumers of paper products in the US. "Every year millions of pounds of food packaging waste litter our roadways, clog our landfills and spoil our quality of life. y International pressure-groups y Pushing for increased regulations to make companies more responsible

y Wars and conflicts y war between countries where the company operates. y They have also become a symbol of capitalism and Americanism meaning that they have now become the target of terrorist group and attack.

Economic
y McDonalds must consider economic challenges when expanding internationally. y y Low set up costs = rapid expansion y y One of the challenge for fast food industry is that to keep the price is low for the customer.

Franchising facilitates set ups

y McDonalds corporation provides financing assistance and training for new franchise owners to manage cash flow and keep businesses profitable. y The main reason is the consumers worries had greatly increased with health fears so customers now opted for more healthier options like subway which offered more of a variety for health conscious customers

Social Challenges
The consumers worries had greatly increased with health fears.

Social Consideration
McDonalds changed its image vastly by evaluating the menu. Range of high-quality foods Emphasis on food safety

Technological Advantages
McDonalds has taken advantage of technology to streamline their processes and improve efficiency. Touch Order Allows You To Place Order At McDonalds Via Handset McDonalds has also implemented technology to improve supply chain management, and allows customers to access this information to make more informed decisions about what they eat.

Results of survey
y Nearly 70% of the respondents had visited McDonalds within 90 days on the moment they filled in the questionnaire.

y The average age of the participants is 25,7 with a minimum age of 19 and a maximum age of 56 years.

y When asked what distinguishes McDonalds from other members of the food industry, the three most important factors were speed, predictability and convenience

y The main reason for visiting McDonalds for 60% of the sample was to have diner.

y When visiting McDonalds, the most frequently placed order of half of the respondents was a menu that 16 out of 22 respondents did not agree with the statement that McDonalds serves a range of high-quality foods

y Almost 70% of the sample states that McDonalds has the responsibility to inform its customers on health related issues

y It must be noted that none of the respondents completely agreed with the statement that McDonalds serves food that can fit into a balanced diet.

y A possible explanation is that corporate image related research is mostly a matter of the company

y It seems that McDonalds has no need to bear this responsibility according to the majority of its customers. None of the respondents completely agreed with the statement that McDonalds serves food that can fit into a balanced diet.

McDonalds Strategies
McDonalds real goal as a corporation is to make money for the stockholders. Their stated goal is Long term sustainable growth for all stakeholders. McDonalds has realized that they are reaching a big maturation stage in the business cycle, based on its profits slowing down more and more every year. It is going to be time to reinvent or re-image this corporation to try to start the business cycle over again. Recommendations for McDonalds

Recommendations for McDonalds

More Healthy Choices McDonalds should develop menu choices that are healthy and socially acceptable. It is possible to develop a menu that people will enjoy and that also fits into the original Speedy Service model the company introduced in the 1950s. Use local food sources where possible. Using local sources decreases the time to market, and also decreases the use of fuel to transport goods. Locally focused menu choices McDonalds in India has specific menu items For the vegetarian market;

Personal Information

Questionnaire on McDonalds
1. When was the last time you visited McDonalds? Within the last 7 days Within the last 90 days Within the last 30 days Longer than 3 months ago

Name

Age Level of education

2. How frequently do you visit McDonalds? On average every ....... month(s).

3. For what meal(s) do you mostly visit McDonalds? Breakfast Lunch 4. What is your most frequently placed order? Menu Only burger Only salad 5. McDonalds distinguishes itself by: (Several answers possible) Taste Convenience Predictability Provision of choice Cleanliness Speed Healthiness Friendly staff Menu + supersize Only beverage Only fries Diner In between

6. McDonalds serves a range of high-quality foods. Totally Agree Neither Agree or Disagree Totally Disagree Partially Agree Partially Disagree

7. McDonalds serves food that can fit into a balanced diet. Totally Agree Neither Agree or Disagree Totally Disagree Partially Agree Partially Disagree

8. McDonalds helps people achieve the right balance between the energy they consume as food and the energy they burn in physical activity. Totally Agree Neither Agree or Disagree Totally Disagree Partially Agree Partially Disagree

9. According to you what are the negative points of McDonalds? ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------10. McDonalds leads the fast food industry on the well-being issues. Totally Agree Neither Agree or Disagree Totally Disagree Partially Agree Partially Disagree

11. McDonalds has a responsibility to inform its customers on health related issues. Totally Agree Neither Agree or Disagree Totally Disagree Partially Agree Partially Disagree Totally Disagree

12. Which factors are important to McDonalds customers? Taste Convenience Predictability Provision Cleanliness Speed Healthiness Staff

You have reached the end of the questionnaire, thank you for your participation.