Akanksha Macdonalds Final Presentation

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    Presented by: Guided by:Bavarva Ruchita S Prof.Chitral Patel

    Shah Priyanka M

    Kotecha Vishal K

    Patel Akanksha MGandhi Manushi N

    Submitted To:

    Hasmukh Goswami Collage Of Engeneering

    In partial fulfillment of M.B.A. Program of

    GUJARAT TECHNOLOGICAL UNIVERSITY

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    Table of Contenty Introduction about U.S.A and MacDonald's.

    y Factor affecting selecting country.

    yOperation Management.

    y Export and import strategy.

    y Benefits .

    y Recommendations and suggestion.

    y Conclusion .

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    Introduction about U.S.A

    and MacDonald's

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    Information about U.S.A.y The United States of America is a Federal constitutional Republic

    comprising 50 states and federal district. The country is situated mostly in

    central North America, where its 48 contiguous states and Washington, the

    capital district.y At 3.79 million square miles and with over 310 million people, the United

    States is the third or fourth largest country by total area, and the third largest

    both by land area and population.

    y The U.S. economy is the world's largest national economy, with an

    estimated 2010 GDP of $14.780 trillion.y On July 4, 1776, they issued the Declaration of Independence, which

    proclaimed their right to self-determination and their establishment of a

    cooperative union.

    y The current United State Constitution was adopted on September 17, 1787.

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    Information about the Companyy McDonald's is the leading global foodservice retailer with more than 32,000

    local restaurants serving more than 64 million people in 118 countries each

    day. More than 80% of McDonald's restaurants worldwide are owned and

    operated by independent local men and women.

    y We serve the world some of its favorite foods - World Famous Fries, BigMac, Quarter Pounder, Chicken McNuggets and Egg McMuffin.

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    y Founder of , McDonald's

    Ray Kroc.

    y Number of Global Restaurants:More than 32,000

    y Number of Countries:

    118

    y Number of worldwide employees:

    1.7 milliony Percentage of franchised restaurants around the world:

    More than 80%

    y Chief Executive Officer:

    Jim Skinner

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    History of the companyy The business began in 1940, with a restaurant opened

    by brothers Richard and Maurice McDonald in San

    Bernardino, California.y McDonald's first filed for a U.S. trademark on the

    name McDonald's on May 4, 1961, with the description"Drive-In Restaurant Services.

    yIn the same year, on September 13, 1961, the companyfiled a logo trademark on an overlapping, doublearched "M" symbol.

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    y The first McDonald's restaurants opened in the UnitedStates, Canada, Costa Rica, Panama, Japan, theNetherlands, Germany, Australia, France, El Salvadorand Sweden, in order of openings.

    y The present corporation dates its founding to the

    opening of a franchised restaurant by Ray Kroc, in DesPlaines, Illinois, on April 15, 1955.

    y the ninth McDonald's restaurant overall. Kroc laterpurchased the McDonald brothers' equity in the

    company and led its worldwide expansion, and thecompany became listed on the public stock markets in1965.

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    McDonalds vision & missiony McDonald's vision

    McDonald's vision is to be the world's best quick service restaurantexperience. Being the best means providing outstanding quality,

    service, cleanliness, and value, so that we make every customer in everyrestaurant smile.

    y McDonald's MissionsBe the best employer for our people in each community around the

    world Deliver operational excellence to our customers in each of our

    restaurants; and Achieve enduring profitable growth by expanding thebrand and leveraging the strengths of the McDonald's system throughinnovation and technology.

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    Factor affecting selecting

    country

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    PESTEL AnalysisPestel is an analysis of the external macro environment

    in which a business operates. PESTEL stands for

    political, economic, social, technology, environmentaland legal factors.

    y Political Factors

    y Economic Factors

    y

    Socio-Cultural Factorsy Technological Factors

    y Environment

    y Legal Factors

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    SWOT analysisStrengths :-

    y It is a global brand that owns 32,000 restaurants

    serving in 118 countries. Of these 32,000 restaurants atleast14,000 restaurants are situated in the US.

    y It is recognized as one of the worlds most recognizedlogos.

    y It has located itself in major airports, cities, highways,tourist locations, theme parks.

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    Weaknesses :-

    y It uses advertising that mostly targets children.

    y High employee turn-over.y Lack of innovative products.

    Opportunities :-

    y It can adapt to the needs of the societies and undergoan innovative product line.

    y It can research ways to packaging which will work as apart of their promotional effort as well as fulfill their

    social responsibility.y It can upscale some of its restaurant settings at

    luxurious locations to attract more customers.

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    Threats :-

    y

    Foreign currency fluctuations are regarded to be amajor problem as it uses standard pricing for its fooditems.

    y Health issues regarding the fast food chain.

    y Heavy investments on promotional campaigns whichdecrease the gaining of market share.

    Literacy Rate of USA:

    y Literacy rate of USA is 99%.

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    Per capital income of the USA

    year 2006 2007 2008 2009 2010

    Per capitalincome

    44,663 46,406 46,971 45,745 47,084

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    Operation Management

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    Business in different country

    y Argentinay Australiay Brazily Canada

    y Chinay Francey Germanyy Hong Kongy India

    y Indonesiay Italyy Japany Malaysiay Mexico

    y New Zealandy Philippinesy Quebecy Singapore

    y South Koreay Spainy Taiwany Thailandy United Kingdom

    y United States

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    Country vise producty JAPAN-Shrimp burger,mashed potato, cabbage and kastu sauce ,green tea-

    flavored Milkshake.

    y CHILE - Burger with ketch up

    y HONGKONG- rice burger

    y INDIA-vegetarian burger, McAloo Tikki

    y GERMANY- beer with snakes.

    y NORWAY- McLaKs sandwich

    y CANADA-McLobster lobster roll

    Above mentioned items is the main item of the country. There are so manyitems which McDonalds serves in each country.McDonalds also serves chocolates, cute cake, creative sandwiches.

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    Marketing policy of McDonalds:

    y Goal changing from getting bigger, to getting better.

    yAdvertise on the internet more. Get more people tovisit their website.

    y

    Secondary advertisingy Of course build brand awareness and loyal customers.

    Attracting:

    y Secondary advertising customer videos and

    employee videos YoutubeyAdvertising on products happy meals, monopoly

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    Engaging :-

    y

    Macromedia Flash used extensivelyy Games for the kids

    y Online calculators for nutrition information

    Retaining :-

    y The site uses a common color theme of red, yellow andblack, with a logo on the top left

    y Theres a news link that shows the news that goes on,but is only updated once every two months

    y Overall the site is easy to navigate

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    Export and import

    strategy.

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    Reason of selling more internationally rather

    than domestically:

    y Globalization of Markets and Competition.

    y Stages in the International Involvement of aMacDonalds.

    y Some forces in international trade.

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    Benefits

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    Benefits received from different

    countries:y It sets you up for life

    y It will make new friends

    y The hours are flexible

    y There are great discounts

    y Its a safe environment

    y Scholarships & grants

    y Manager benefits

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    Benefits to Host Country [US]Restaurant Benefits :-

    y Competitive wages

    y

    Free uniformsy Free or discounted meals

    y Flexible hours

    y Medical insurance

    yPrescription drug coverage

    y 24-hour nurse line access

    yVision discount

    yAvailable dental

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    Additional Benefits

    yShort-term disability

    y Term life insurance

    y Paid holidays

    yVacation

    y Educational assistance

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    Benefits to societyEmployee Benefits:-

    y Health and Protection

    y Pay and Rewardsy Investing in the Future

    y Balance Work and Life

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    Key indicator

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    Financial indicatorsRatio title Proportion

    Return on asset 15.86%

    Return on equity 39.08%

    Return on capital 19.75%

    Gross profit 39.58%

    Total asset turnover 8:1

    Fixed asset turnover 1.2:1

    Current ratio0.9: 1

    Quick ratio 0.7:1

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    Recommendations andsuggestion

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    Conclusion

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    Today McDonalds has grown to 25000 restaurants in about120 countries serving 50 million customers daily.McDonalds is also leading in marketing activities whichmainly focus on attracting children segment so that they

    can capture the largest market. Although McDonalds failsto introduce innovative product rapidly but the salesrevenue of existing products is also rapidly increasing as weshown in financial information. The products of McDonalds in different countries conform to the cultural

    and social life style. McDonalds is having a competitiveadvantage over KFC. Wendys, burger king, star bucks, tacobell. Becoming the largest fast-food chain in all over the

    world

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