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Subm|tted 1o
nasmukh Goswam| Co||ege of Lng|neer|ng and Management


Under the gu|dance of
rofCh|tra| ate|
Subm|tted by
Akanksha aLel



2

PREFACE
There is a large gap between theoretically knowledge and practical knowledge about handling
and managing a business. Only book`s knowledge can`t help in building up an eIIective
administrator.
A through and practical study, knowledge and learning can only be useIul to become more
eligible and competitive. Due to this point oI view each and every student oI M.B.A. has to
undergo the industrial training to execute business enterprise as per GTU norms, which is really
helpIul to the students Ior making their bright career.
Master oI Business Administration course is design with the objective oI preparing the most
competent person with a view to achieve this objective in the best possible manner.
Thus, GTU has specially included the practical subject oI summer internship training as per
syllabus.
According to it is compulsory Ior every students oI MBA sem.3 to prepare report on company
in any country.
We consider our selI very Iortunate that we got opportunity to prepare report on country.

3



Acknowledgement

t has been a great honor to and privilege to reporting session at Hasmukh Goswami collage oI
Engineering and Management.
We would like to take the opportunity to express our most humble gratitude to Mrs.
RekhaThotalani our report. Her constant guidance and willingness to share her vast knowledge
made us understand the report and her maniIestations in great depths and helped us to complete
the assigned tasks.
We are highly thankIul to Prof. Chitral patel whose invaluable guidance helped us to
understand the report better and give brieI knowledge regarding this report.
Although there may be many who remain unacknowledged in this humble note oI gratitude,
there are none who remain unappreciated.












4

Lxecut|ve Summary
McDonald`s Corp, operates or licenses more than 30,450 Iast-Iood restaurants in the U.S,
Canada and overseas. FiIty eight percent oI these stores are operated by Iranchisees, twenty
eight by the company, and Iourteen percent by aIIiliates. t`s partner brands include Boston
Market, Chipotle and Donatos Pizzeria, which are all located primarily in the United States, and
Aroma CaIe, located primarily in the United Kingdom. Foreign operations contribute around
51 oI system wide sales and about 65 oI operating proIits. ts main source oI income is
through Iranchise Iees. Under the conventional Iranchise arrangement, Iranchisees provide
capital by initially investing in the equipment, signs, seating and decor oI their restaurant
businesses, and by reinvesting in the business over time. The Company shares the investment by
generally owning or leasing the land and building. Franchisees in the United States generally
have the option to own new restaurant buildings while leasing the land Irom the Company.
Franchisees contribute to the Company's revenue stream through payment oI rent and service
Iees based upon a percentage oI sales, with speciIied minimum payments, along with initial Iees.
The conventional Iranchise arrangement typically lasts 20 years and Iranchising practices are
generally consistent throughout the world. One oI the companies major cost is advertising
McDonald`s has had many successIul marketing campaigns and has built it`s selI a solid brand
name. Evidence oI this can be seen by the Iact that (Business week) ranked McDonalds eighth in
the world Ior brand name value. Business week Iigured that McDonalds brand value Ior 2002 is
about 26.4 billion McDonalds current market cap is 21.2 billion. Showing that it`s brand value
alone is worth more then the current market cap. From the Iollowing valuations and research we
have conclude we have decided to buy McDonalds. Precise buy order inIormation can be
viewed on the Iollowing page.









3

1ab|e of content

1.Introduction
nIormation about U.S.A
nIormation about McDonald`s




2.Factor affecting U.S.A
PEST Analysis
SWOT Analysis
Per capital income
iteracy rate oI U.S.A




3.Operation Management
Business in diIIerent country
Marketing policy
Financial perIormance oI last 5 years
Human resource policy
Product & Distribution




4.Export & import strategy
Percentage oI domestic and international sale
#eason Ior more international sale rather than
domestically




5. Benefits
BeneIits receiving Irom diIIerent country
BeneIits toward host country
BeneIits to society
Tax BeneIits




. key indicator
Financial indicator
Employment to local people





6


7. Recommendation



8. Conclusion



9. Bibliography



















7








1.
Introduction of country and company











8

Information of USA

The United States of America (also reIerred to as the United States, the U.S., the USA, or
America) is a Iederal constitutional republic comprising IiIty states and a Iederal district. The
country is situated mostly in central North America, where its Iorty-eight contiguous states and
Washington, D.C., the capital district, lie between the PaciIic and Atlantic Oceans, bordered by
Canada to the north and Mexico to the south. The state oI the country also possesses several
territories in the Caribbean and PaciIic.
At 3.79 million square miles (9.83 million km
2
) and with over 310 million people, the United
States is the third or Iourth largest country by total area, and the third largest both by land area
and population. t is one oI the world's most ethnically diverse and multicultural nations, the
product oI large-scale immigration Irom many countries. The U.S. economy is the world's largest
national economy, with an estimated 2010 GDP oI $14.780 trillion (23 oI nominal global GDP
and 20 oI global GDP at purchasing power parity
The United States was Iounded by thirteen British colonies located along the Atlantic seaboard.
On July 4, 1776, they issued the Declaration oI ndependence, which proclaimed their right to
selI-determination and their establishment oI a cooperative union. The rebellious states deIeated
the British Empire in the American #evolution, the Iirst successIul colonial war oI
independence. The current United States Constitution was adopted on September 17, 1787; its
ratiIication, the Iollowing year, made the states part oI a single Iederal republic with a strong
Iederal government. The Bill oI #ights, comprising ten constitutional amendments guaranteeing
many Iundamental civil rights and Ireedoms, was ratiIied in 1791.
Through the 19th century, the United States displaced native tribes, acquired the ouisiana
territory Irom France, Florida Irom Spain, part oI the Oregon Country Irom the United Kingdom,
Alta CaliIornia and New Mexico Irom Mexico, Alaska Irom #ussia, and annexed the #epublic oI
Texas and the #epublic oI Hawaii. Disputes between the agrarian South and industrial North
over the expansion oI the institution oI slavery and states' rights provoked the Civil War oI the
1860s. The North's victory prevented a permanent split oI the country and led to the end oI legal
slavery in the United States. By the 1870s, its national economy was the world's largest. The
SpanishAmerican War and World War conIirmed the country's status as a military power.
t emerged Irom World War as the Iirst country with nuclear weapons and a permanent
member oI the United Nations Security Council. The end oI the Cold War and the dissolution oI
the Soviet Union leIt the United States as the sole superpower. The country accounts Ior 41 oI
global military spending, and it is a leading economic, political, and cultural Iorce in the world.



9

Information about McDonald`s

McDonald's is the leading global Ioodservice retailer with more than 32,000 local restaurants
serving more than 64 million people in 118 countries each day. More than 80 oI McDonald's
restaurants worldwide are owned and operated by independent local men and women.
Founder of , McDonald's
#ay Kroc.
Number of Global Restaurants:
More than 32,000
Number of Countries:
118
Number of worldwide employees:
1.7 million
Percentage of franchised restaurants around the world:
More than 80
Chief Executive Officer:
Jim Skinner









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History of McDonalds
The business began in 1940, with a restaurant opened by brothers #ichard and Maurice
McDonald in San Bernardino, CaliIornia. Their introduction oI the "Speedee Service System" in
1948 established the principles oI the modern Iast-Iood restaurant. The original mascot oI
McDonald's was a man with a cheI's hat on top oI a hamburger shaped head whose name was
"Speedee." Speedee was eventually replaced with #onald McDonald by 1967 when the company
Iirst Iiled a U.S. trademark on a clown shaped man having puIIed out costume legs.
McDonald's Iirst Iiled Ior a U.S. trademark on the name McDonald's on May 4, 1961, with the
description "Drive-n #estaurant Services," which continues to be renewed through the end oI
December 2009. n the same year, on September 13, 1961, the company Iiled a logo trademark
on an overlapping, double arched "M" symbol. The overlapping double arched "M" symbol logo
was temporarily disIavored by September 6, 1962, when a trademark was Iiled Ior a single arch,
shaped over many oI the early McDonald's restaurants in the early years. The Iamous double
arched "M" symbol in use today did not appear until November 18, 1968, when the company
Iiled a U.S. trademark.
The Iirst McDonald's restaurants opened in the United States, Canada, Costa #ica, Panama,
Japan, the Netherlands, Germany, Australia, France, El Salvador and Sweden, in order oI
openings.
The present corporation dates its Iounding to the opening oI a Iranchised restaurant by #ay Kroc,
in Des Plaines, llinois, on April 15, 1955, the ninth McDonald's restaurant overall. Kroc later
purchased the McDonald brothers' 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 Ior
aggressive business practices, compelling the McDonald brothers to leave the Iast Iood industry.
The McDonald brothers and Kroc Ieuded over control oI the business, as documented in both
Kroc's autobiography and in the McDonald brothers' autobiography. The site oI the McDonald
brothers' original restaurant is now a monument.
With the expansion oI McDonald's into many international markets, the company has become a
symbol oI globalization and the spread oI the American way oI liIe. ts prominence has also
made it a Irequent topic oI public debates about obesity, corporate ethics and consumer
responsibility.




11


McDonald's restaurants are Iound in 119 countries and territories around the world and serve 58
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
CaIe.
Focusing on its core brand, McDonald's began divesting itselI oI other chains it had acquired
during the 1990s. The company owned a majority stake in Chipotle Mexican Grill until October
2006, when McDonald's Iully divested Irom Chipotle through a stock exchange. Until December
2003, it also owned Donatos Pizza. On August 27, 2007, McDonald's sold Boston Market to Sun
Capital Partners.

McDonald's vision

McDonald's vision is to be the world's best quick service restaurant experience. Being the best
means providing outstanding quality, service, cleanliness, and value, so that we make every
customer in every restaurant smile.

McDonald's Missions
O Be the best employer Ior our people in each community around the world
O Deliver operational excellence to our customers in each oI our restaurants; and
O Achieve enduring proIitable growth by expanding the brand and leveraging the strengths oI the
McDonald's system through innovation and technology.












12









2.
Factor affection selecting country












13


PESTEL Analysis
esLle ls an analysls of Lhe exLernal macro envlronmenL ln whlch a buslness operaLes LS1LL
sLands for pollLlcal economlc soclal Lechnology and envlronmenLal facLors

A. Political Factors
The international operations oI McDonald`s are highly inIluenced by the individual state
policies enIorced by each government.
On the other hand, the company is controlled by the individual policies and regulations oI
operations.
SpeciIic markets Iocus on diIIerent areas oI concern such as that oI health, worker
protection, and environment.
All these elements are seen in the government control oI the licensing oI the restaurants
in the respective state.
There are also other studies that points to the inIringement oI McDonald`s Stores with
reIerence to the existing employment laws in the target market.
ike any business venture, these McDonald`s stores have to contend with the issues oI
employment procedures as well as their tax obligations so as to succeed in the Ioreign
market.
B. Economic Factors
Branches and Iranchises oI Iast Iood chains like McDonald`s has the tendency to
experience hardship in instances where the economy oI the respective states is hit by
inIlation and changes in the exchange rates.
Their problem depends on the response oI the consumers on these Iundamentals and how
it could inIluence their general sales
n regarding the operations oI the company, Iood chains like McDonald`s tend to import
much oI their raw materials into a speciIic territory iI there is a dearth oI supply.
The rate at which the economy oI that particular state grows determines the purchasing
power oI the consumers in that country..
C. Socio-Cultural Factors
McDonald`s indulge a particular variety oI consumers with deIinite types oI personalities.
t has also been noted that the company have given the markets such as the United
Kingdom, an option with regards to their dining needs.
Additionally, those who are aged just below the bracket oI thirty-Iive are said to be the
most Irequent consumers oI McDonald`s Iranchises.


14




Technological Factors
McDonald`s generates a demand Ior their own products. (2006) The company`s key tool
Ior marketing is by means oI television advertisements.There are similarly some claims
that McDonald`s are inclined to interest the younger populations more. The existence oI
play spots as well as toys in meals oIIered by the company shows this actuality. ( 1995)
Other demonstration oI such a marketing strategy is apparent in the commercials oI they
use. The like has become endorsers Ior McDonald`s worldwide 'loving` it campaign.
Elements like the inventory system and the management oI the value chain oI the
company allows Ior easy payments Ior their suppliers and other vendors which the
individual stores in respective markets deal with.
The integration oI technology in the operations oI McDonalds tend to add value to their
products. Basically, this is maniIested in the improvements on its value chain.
E. Legal Factors
egal Iactors is tied up with the socio-cultural attributes oI the market on which they
operate. For instance, operations in predominantly Muslim countries require their meat to
conIorm to the ,, requirements oI the law.
n the same regard, those that operate in countries in the European Union should conIorm
to the existing laws banning the use oI genetically modiIied meat products in their Iood.
Other legal concepts like tax obligations, employment standards, and quality
requirements are only a Iew oI important elements on which the company has to take into
consideration. Otherwise, smooth operations shall be hard to achieve.
F. Environment
The social responsibilities oI McDonald`s on the state are inIluential to the operations oI
the company. These entail accusations oI environmental damage. Among the reasons
why they are charged with such claims is the employ oI non-biodegradable substances Ior
their drinks glasses and StyroIoam coIIers






13



SWOT Analysis

Strengths
W t has a strong global presence and is considered as a market leader in both the domestic as well
as the international markets.
W t is a global brand that owns 31,000 restaurants serving in 120 countries. OI these 31,000
restaurants at least14,000 restaurants are situated in the US.
W t uses economies oI scale Ior reducing the cost, as its huge expansion diversiIies the overall
risk involved with the economic perIormance.
W t takes steps in adjusting the ngredients and product oIIerings in order to comply with the
upgraded health standards deemed necessary by the USDA.
W t earns revenue by Iast Iood sales as well as a property investor and a Iranchiser oI restaurants.
W t has branded menu items i-e Big Mac, Chicken McNuggets, which Iurther promote
McDonalds.
W t is recognized as one oI the world`s most recognized logos.
W t has located itselI in major airports, cities, highways, tourist locations, theme parks.
Weaknesses
W t uses advertising that mostly targets children.
W High employee turn-over.
W t has yet to accomplish going on the trend oI organic Iood.
W Price competition with the competitors resulting in low revenue.
W ack oI innovative products.


16


Opportunities
W t can adapt to the needs oI the societies and undergo an innovative product line.
W t can research ways to use green` energy and packaging which will work as a part oI their
promotional eIIort as well as IulIill their social responsibility.
W t can create new product oIIerings, use mobile text messaging to oIIer services that appeal to
consumers.
W t can upscale some oI its restaurant settings at luxurious locations to attract more customers.

Threats
W The recession negatively impacts the holding position oI the Iirm regarding its revenue streams,
even though they are quite diversiIied.
W Foreign currency Iluctuations are regarded to be a major problem as it uses standard pricing Ior
its Iood items.
W Health issues regarding the Iast Iood chain.
W Heavy investments on promotional campaigns which decrease the gaining oI market share.










17


Per capital income of the USA

year 2006 2007 2008 2009 2010

Per capital
income
44,663 46,406 46,971 45,745 47,084







Litracy Rate of USA:
iteracy rate oI USA is 99.

43000
43300
44000
44300
43000
43300
46000
46300
47000
47300
2006 2007 2008 2009 2010
er ca|ta| |ncome of the USA
per caplLal lncome


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3.
Operation management















19


Business in different country
Countries in which McDonalds operate
O Argentina
O Australia
O Brazil
O Canada
O China
O France
O Germany
O Hong Kong
O ndia
O ndonesia
O taly
O Japan
O Malaysia
O Mexico
O New Zealand
O Philippines
O "uebec
O Singapore
O South Korea
O Spain
O Taiwan
O Thailand
O United Kingdom
O United States

Country vise product

AANShrlmp burgermashed poLaLo cabbage and kasLu sauce green Leaflavored Mllkshake

CnILL 8urger wlLh keLch up

HONGKONG- rice burger



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INDIA vegeLarlan burgerMcAloo 1lkkl

GLkMAN beer wlLh snakes

NCkWA McLaks sandwlch

CANADAMcLobsLer lobsLer roll

Above menLloned lLems ls Lhe maln lLem of Lhe counLry 1here are so many lLems whlch
Mcuonald's serves ln each counLry
Mcuonald's also serves chocolaLes cuLe cake creaLlve sandwlches















21


Marketing policy of McDonald`s:

W Goal changing Irom getting bigger, to getting better.
W Advertise on the internet more. Get more people to visit their website.
W Secondary advertising
W OI course build brand awareness and loyal customers

They utilize the following items:
Attracting:
W Secondary advertising customer videos and employee videos Youtube
W Advertising on products happy meals, monopoly
Engaging
W Macromedia Flash used extensively
W Games Ior the kids
W Online calculators Ior nutrition inIormation
Retaining
W The site uses a common color theme oI red, yellow and black, with a logo on the top leIt
W There`s a news link that shows the news that goes on, but is only updated once every two
months
W Overall the site is easy to navigate



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Financial performance of last five year

5-Year Summary
Dollars in millions,

2010 2009 2008 2007 2006
Company operated saIe $16233 15459 16561 16611 15402
Franchised revenue $7842 7286 6961 6176 5493
TotaI revenue $24075 22745 23522 22787 20895
Operating income $7473 6841 6443 3879 4433
Income from operation $4946 4551 4313 2335 2866
Net income $4551 4313 2395 3544 2602
Cash by operation $6342 5751 5917 4876 4341
Cash used on investment $2056 1655 1625 1150 1274
CapitaI expenditure $2136 1952 2136 1947 1742
Cash used for financing
activities
$3729 4421 4115 3996 5460
Cash dividend $2408 2235 1823 1766 1217




FinanciaI condition at year end:
Year 2010 2009 2008 2007 2006
TotaI asset $31975 30255 28462 29393 28974
TotaI debt $11505 10578 10218 9301 8408
TotaI sharehoIders' equity $14634 14304 13383 15280 15458
Share outstanding in miIIion 1054 1077 1151 1165 1204
Market price at the year end $76.76 62.44 62.19 58.91 44.33








23


Total return comparison of last five year






uec2003 uec2006 uec2007 uec2008 uec2009 uec2010
Column1 $100 $133 $183 $199 $207 $263
$100
$133
$183
$199
$207
$263
$0
$30
$100
$130
$200
$230
$300
U
S
D
LAk


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Human resources policies followed by McDonalds:
n eIIect, McDonald's is able to take advantage oI the weak and marginalized sectors oI
the labor market, in other words, young workers who lack the previous experience, maturity and
conIidence to challenge managerial authority and Ioreign workers who are very concerned about
keeping their jobs.
Furthermore, employees in all 'categories' may have no long-term interest in the
company, in which case contesting management prerogative may simply 'not be worth the
trouble' These workers are eIIectively marginalized in the labor market and Iind it diIIicult to
Iind other work elsewhere Ior several reasons:
problems with language;
problems with the recognition oI their qualiIications;
these labor markets are extremely competitive in terms oI qualiIications;
number oI Ioreign and other migrant workers in Germany
The work oIIered by McDonald's may have some positive elements, but workers are
oIten choosing employment at McDonald's in the context oI having Iew other attractive options.
Almost regardless oI what people think oI the work itselI, working at McDonald's could be said
to oIIer advantages Ior some employees who want Ilexible hours and are engaged in other
activities and responsibilities. For those marginalized in the labor market who have Iew chances
oI a job elsewhere, McDonald's oIIers much needed work.
However, the employees' dependence on McDonald's and/or their tendency to see their
employment as a short-term strategy makes them vulnerable to management manipulation. Those
with minimum interest simply leave iI they do not like it, and this is clearly reIlected in high
labor turnover. Perhaps they are attracted by the combination oI Iairly secure employment,
Iamiliar 'Iamily' surroundings created by a highly paternalistic approach to management and lots
oI employees oI similar age or temperament. This may help to explain how the corporation
sometimes retains individuals who could probably obtain better paid and more skilled work
elsewhere. As (1986) puts it, it is 'recruiting as means oI control'. As already suggested,
however, whether this is a deliberate 'strategy' or something else is not clear (, 1994).
The employment relationship at McDonald's is managed by a complete spectrum oI
controls, Irom simple, direct and bureaucratic controls to the management oI subjectivity. At one
end oI the spectrum, restaurant managers are disciplined to accept tough work schedules and
must prove themselves 'up to the challenge' oI punishing schedules. ong hours and loyalty are
locked in, with young managers being persuaded not only to accept as the norm many hours oI
unpaid work but also to gain a perverse satisIaction Irom surviving these tough and


23


uncompromising work routines. n addition, young managers who may or may not get similar
'opportunities' elsewhere in the labor market are romanced by oIIers oI promotion and career
development. At the other end oI the spectrum, more direct methods are used to maintain control.
However, this still leaves unanswered the question oI how the corporation has managed to
sustain the uniIormity oI its employee relations practices despite major diIIerences across
societal cultures.

















26


Product and Distribution channel



McDonald's Big Mac combo meal served with French Iries and Coca-Cola.

McDonald's predominantly sells hamburgers, various types oI chicken sandwiches and products,
French Iries, soIt drinks, breakIast items, and desserts. n most markets, McDonald's oIIers
salads and vegetarian items, wraps and other localized Iare. On a seasonal basis, McDonald's
oIIers the Mc#ib sandwich. Some speculate the seasonality oI the Mc#ib adds to its
appeal.
|58|
Portugal is the only country with McDonald's restaurants currently serving soup. This
local deviation Irom the standard menu is a characteristic Ior which the chain is particularly
known, and one which is employed either to abide by regional Iood taboos (such as the religious
prohibition oI beeI consumption in ndia) or to make available Ioods with which the regional
market is more Iamiliar (such as the sale oI Mc#ice in ndonesia).










27









4.
Export & import strategy














28



International and domestic sales of the McDonald`s



As above mentioned domestic sales oI the MacDonald`s is 35 which is less than
international sales that is 65.





63
33
Sa|es
lnLernaLlonal
domesLlc


29


Reason of selling more internationally rather than domestically:
Globalization of Markets and Competition:
Trade is increasingly global in scope today. There are several reasons Ior this. One signiIicant
reason is technologicalbecause oI improved transportation and communication opportunities
today, trade is now more practical. Thus, consumers and businesses now have access to the very
best products Irom many diIIerent countries. ncreasingly rapid technology liIecycles also
increases the competition among countries as to who can produce the newest in technology. n
part to accommodate these realities, countries in the last several decades have taken increasing
steps to promote global trade through agreements such as the General Treaty on Trade and
TariIIs, and trade organizations such as the World Trade Organization (WTO), North American
Free Trade Agreement (NAFTA), and the European Union (EU). Ior these reason MacDonald`s
has decided to operate internationally.
Stages in the International Involvement of a MacDonald`s:
A purely domestic Iirm Iocuses only on its home market, has no current ambitions oI expanding
abroad, and does not perceive any signiIicant competitive threat Irom abroad. Such a Iirm may
eventually get some orders Irom abroad, which are seen either as an irritation (Ior small orders,
there may be a great deal oI eIIort and cost involved in obtaining relatively modest revenue) or
as "icing on the cake." As the Iirm begins to give Iranchise more, it enters the good stage, where
little eIIort is made to market the product abroad n the multi-national stage, some eIIiciencies
are pursued by standardizing across a region (e.g., Central America, West AIrica, or Northern
Europe). Thus MacDonald`s can give product according to local neerds i.e n ndia vegetarian
Iood, other countries non-vegetarian.
Some forces in international trade.
The text contains a rather long-winded appendix discussing some relatively simple ideas.
Comparative advantage suggests trade between countries is beneIicial because these countries
diIIer in their relative economic strengthssome have more advanced technology and some
have lower costs. The nternational Product iIe Cycle suggests that countries will diIIer in their
timing oI the demand Ior various products. Products tend to be adopted more quickly in the
United States and Japan. Thus by entering in to international market MacDonald`s can reduce
cost and can adopt the technology oI that country.




30









5
BeneIits















31




Benefits received from different countries:

1]. It sets you up for life:
At McDonald`s, we will learn valuable skills which will serve you will in all areas oI liIe, like
time management, customer service, and how to work as part oI a team. , we will also be trained
in proIessional skills like handling money, quality control, and equipment maintenance. earn
more about the training we oIIer.

2] It will make new friends:
McDonald`s is a Iun environment with a Iriendly team. t`s a great way to meet new people or to
work with our existing Iriends. Plus, there`s always a social event every year.

3] The hours are flexible:
Many oI the restaurants oIIer work hours that can Iit around your commitments, like school,
sport or Iamily. To help young employees balance work and studying, our Ilexible rostering
system can accommodate exam periods and other important activities. Plus, iI any student under
17, you won't be asked to work aIter 11pm on a school night.

4] There are great discounts:
You`ll receive the exclusive me time BeneIit Card, oIIering Iantastic discounts on McDonald`s
Iood and a huge range oI your other Iavorite stores. You'll also get a 50 discount on a meal
during, beIore or aIter each shiIt you work.





32




5] It`s a safe environment:
They are committed to providing a work environment where everyone can expect to be treated
equally, with dignity and respect. They promise to provide Iair pay and saIe working conditions
Ior all, and they have strict Equal Employment Opportunity and Workplace SaIety policies in
place.


] Scholarships & grants
Juggling work, study and your personal liIe can be hard. So to make it all worthwhile, they
award a number oI Sports Grants and Crew Scholarships to support your studies and sporting
dreams.
To be awarded the McDonald's Crew Scholarship Iund, they don`t have to be the top oI their
class or a star athlete. nstead, it allows them to give something back to them Ior showing
dedication and working hard at McDonald's, while remaining in school.

8] Manager benefits
Making a career at McDonald`s means they`ll be entitled to a wide range oI beneIits and
rewards, some available Irom day one, others to reward them increasing skills and responsibility.
O Flexible roistering system through their shiIt arrangements. Most oI their restaurants
trade 7 days a week, 24 hours a day. ThereIore, the majority oI their mangers are 'Iully
Ilexible meaning they are available to work any time or day oI the week. #osters are
usually posted a month in advance, and will change Irom week to week allowing them to
accommodate a wide range oI non-work related activities.
O Mentoring programs and schemes to develop managerial staII
O ong service awards.
O #estaurant Managers may also be entitled a Company Car and private Healthcare Ior and
their Iamily.



33



Benefits to Host Country US]

Restaurant Benefits
They don`t have to achieve upper-level management status to reap the rewards. When they`re a
part oI their restaurant crew, they`ll enjoy a competitive wage, a schedule that Iits their needs, a
team that`s there to support you in every way, and a workplace that`s close to wherever they
need to be. t`s a great way to earn extra income Ior anyone, Irom students to moms and dads.
O Competitive wages
O Free uniIorms
O Free or discounted meals
O Flexible hours
O Medical insurance
O Prescription drug coverage
O 24-hour nurse line access
O 'ision discount
O Available dental
Additional Benefits
O Short-term disability
O Term liIe insurance
O 401(k)
O Paid holidays
O 'acation
O Educational assistance
Corporate Staff Benefits
Our beneIits program is designed to attract, energize, reward and retain top talentthe kind
oI people who will enhance our brand and produce solid results.




34



Benefits to Parent Country
O Competitive Compensation: they`ll receive a competitive starting salary which
increases as their career progresses based on salary ranges and merit increases that lead
their quick service restaurant competition. PerIormance and salary reviews are conducted
annually as well as at the time oI promotion they'll also be eligible Ior bonuses based on
restaurant results.
O Comprehensive Group Insurance Plan: Extended health, dental, disability and liIe
insurance are available Ior they and their Iamily through a Ilexible beneIits program.
O Profit Sharing: Share in the proIits oI the most successIul quick service restaurant
organization in the world.
O 'acation: As your years oI service grow, so does their vacation entitlement.
O Sabbatical Program: An eight week paid sabbatical Ior every ten years oI Iull-time
salaried service in addition to their regular vacation!
O McDonald's Gold Card, Home and Auto Insurance Program, Technology Purchase
Program : #ealize savings through discounts on retail merchandise using McDonald's
group buying power
O MCDirect Shares Stock Purchase Plan, Group RRSP and Canada Payroll Savings
Program: Save Ior the Iuture through payroll deductions to various group savings plans
O Educational Assistance: McDonald's reimburses a portion oI approved employment
related degree courses.
O Matching Donations Program: Employee contributions to approved charitable
organizations or institutions will be matched dollar Ior dollar by McDonald's.
O Service and Recognition Awards: Service awards are given on milestone anniversaries
as well as recognition awards Ior outstanding contributions.
O Social Activities: Enjoy a variety oI activities with your team which could include a
Convention, summer picnic or outing, seasonal celebrations, Children's Holiday Party,
sports teams, golI tournaments, ski trips, etc.



33


Benefits to society
Employee Benefits:
The Iollowing inIormation highlights McDonald's beneIits Ior StaII (e.g., home oIIice, division
or region oIIice) employees located in the United States. Highlights oI McDonald's Corporation
beneIits Ior U.S. #estaurant Management and Crew employees can be Iound on the USA Careers
site.
McDonald's beneIits program is designed to attract, retain and engage talented people who will
deliver strong perIormance and help McDonald's achieve their business goals and objectives.
For McDonald's Corporation U.S. employees at corporate, division and region oIIices, many
beneIits are organized into Iour categories:
Health and Protection
O Medical
O 'ision supplement plan
O Dental
O Flexible spending accounts
O Short and long term disability
O Employee and dependent liIe insurance
O Accidental death & dismemberment (AD&D)
O Travel and business travel accident insurance
Pay and Rewards
O Base pay
O ncentive pay
O Company car program
O #ecognition programs
Investing in the Future
O ProIit Sharing and Savings Plan
O MCDirect Shares
O Mc$ave
O Credit union
O Financial planning services



36


Balance Work and Life
O 'acation
O Holidays
O Anniversary Splash
O Sabbatical program



























37



Tax benefit available to the McDonald`s

(1) A tax beneIit oI $316.4 million ($0.26 per share) resulting Irom the completion oI an
nternal #evenue Service (#S) examination oI the Company`s 2003-2004 U.S. Iederal tax
returns.

(2) A net tax beneIit oI $73 million ($0.05 per share) comprised oI $179 million ($0.14 per
share) oI income tax beneIit resulting Irom the completion oI an #S examination oI the
Company`s 2000-2002 U.S. tax returns, partly oIIset by $106 million ($0.09 per share) oI
incremental tax expense resulting Irom the decision to repatriate certain Ioreign earnings under
the Homeland nvestment Act (HA).



















38










6
Key indicator














39


Financial indicators





















kat|o t|t|e roort|on
eLurn on asseL 1386
eLurn on equlLy 3908
eLurn on caplLal 1973
Cross proflL 3938
1oLal asseL Lurnover 81
llxed asseL Lurnover 121
CurrenL raLlo 09 1
Culck raLlo 071


40




Employment to local people

n addition to their 750,000 US restaurant employees, approximately 2,800 staII members
provide a wide variety oI support Iunctions to the 30,000 McDonald's restaurants around the
globe through a network oI divisional, regional and local-country oIIices.
They believe in the words 'Welcome to McDonald`s. They believe that making people glad
they`re here is our business. And what goes Ior the customers goes Ior the employees. So they
work hard to create jobs that satisIy on all levels. That`s why credits earned in their management
training programs may be applied toward 2-and 4-year college degrees. Because they believe that
when they say 'Welcome to McDonald`s, that`s exactly what people should Ieel.















41

Recommendation and suggestion

As per our analysis based on the theoretical knowledge, we would like to suggest McDonald`s
should take Iollowing steps to increase their revenue as compare to now.
As we shown that McDonalds target only children segment but they should also divert
their Iocus on young segment.
McDonald`s should introduce innovative product continually to increase customer loyalty
towards them.
McDonald`s should provide good salary package, beneIit , incentive, welIare Iacilities
according to the local requirement oI the employee rather than using standard
compensation system.
McDonald`s should make necessary quality management inspection to secure the health
oI the customer in every country.
They should engage with their suppliers and the scientiIic community in Iurther research
on this very important issue to ensure that their position reIlects the latest scientiIic
inIormation and sustainability best practices related to all relevant Iactors, such as animal
welIare, saIety, quality, cost and the environment.











42


Conclusion

Today McDonalds` has grown to 25000 restaurants in about 120 countries serving 50 million
customers daily. McDonald`s is also leading in marketing activities which mainly Iocus on
attracting children segment so that they can capture the largest market. Although McDonald`s
Iails to introduce innovative product rapidly but the sales revenue oI existing products is also
rapidly increasing as we shown in Iinancial inIormation. The products oI McDonald`s in
diIIerent countries conIorm to the cultural and social liIe style. McDonald`s is having a
competitive advantage over KFC. Wendy`s, burger king, star bucks, taco bell. Becoming the
largest Iast-Iood chain in all over the world.
















43



Bibliography

wwwmcdonaldsusacom

wwwmcdonldscom

wwwscrlbdcom

wwwwlkepedlacom