M&M & MacDonalds

8/6/2019 M&M & MacDonalds

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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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M&M & MacDonalds

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