Yamini Hingorani

Timsy Garg
Anjo Thomas
Snehal Chaudhari
Santosh Barwal
Akshay Bhandari
Priya Chawla
 Agenda
Company Background:
History, Facts, 7 P’s
Internal and External Environment
Strategies followed in Europe & Asia
Basic Philosophy
Adaptation in changing Environments
 McHistory
• Ray Kroc opens the Des Plaines restaurant in
1955. First day’s revenues - $366.12
• In 1965, McDonald’s goes public with the
company’s first offering on the stock
exchange
• In 1967, Jim Delligatti invents the Big Mac
• “Makadonaldo” first opened in 1971 (Japan)
 McHistory

• Egg McMuffin is introduced in 1973;

Developed by owner operator Herb Peterson
• In 1974 Fred Hill of the Philadelphia Eagles
teams up with McDonald’s to create the Ronald
McDonald House
• Happy Meals (1979)
 Fascinating McFacts
• Today, the company operates more than
31,000 restaurants in 119 countries
• Since its founding in 1955, McDonald’s has
sold well over 100 billion hamburgers
• Every day McDonald's serves more than 47
million customers around the world. 
• McDonald’s prepares more than 6.8 million
pounds of French fries every day
• More than 50,000 students have graduated
from “Hamburger University”
 Franchising McFacts
• Approximately 85% of McDonald’s restaurant
businesses world-wide are owned and
operated by franchisees
• All franchisees are independent, full-time
operators
• McDonald’s was named Entrepreneur’s
number-one franchise for 1997
• Every day McDonald's serves more than 47
million customers around the world. 
The 7 P’s of Mc Donalds

PRODUCT:
– Varieties

PRICE:
- Economical
 The 7 P’s of Mc Donalds

PROMOTION:
- Happy Meals
- Lucky Draws
- Scratch Cards

PLACE:
- Worldwide
The 7 P’s of Mc Donalds

PEOPLE:
- Customers
- Employees

PROCESS:
- Transparency
The 7 P’s of Mc Donalds

PHYSICAL EVIDENCE:

- Interiors
o Clean and Hygienic
o Attractive
- Decorum
Opportunities and Threats in
the Internal & External Envt
faced by Mc Donald’s since
beginning and How has it
overcome them??
Internal Envt - Strengths
• QSCV
• Brand Equity…world-wide
• Consistency of food
• Successful items: Fries, Happy Meal, Big Mac,
Egg McMuffin, Promotions
• Overseas market
Internal Envt - Weaknesses

• Weak product development

• Disgruntled franchisees
• Quality and taste of products
• Slowed revenue and income growth
External Envt - Opportunities

• International expansion
• Only serving 1% of the world’s
population
• Growing dining-out market
 External Envt - Threats

• Strength of competition
• More health-conscious consumers
• Changing demographics
• Behavioural Patterns – Tastes and
Religions
Strategies followed by Mc
Donald’s in Europe and in
Asia that contribute to its
success in our opinion
 Europe:
• Relaxed Experience in a Sophisticated
Atmosphere
• Interior Redesigning
• Ronald Gym Clubs
• Localised Products and Experiences
• Wireless Internet Connection
• Rome
- Pasta

• France
- Wine
- Le Saga du
Fromage
• Munich
– Food
Innovation
Lab

• Germany
– Mexican
Themed Week
McDonald’s Footprint in
Asia:

Tailoring its menu and

restaurants to local
lifestyles, the fast-
food giant is
aggressively
expanding in China
and India
 Catering to Car-Crazy China

Drive-thru restaurant - Hainan Island southern

China
 Drive-Thru Cash Machines

Industrial cities such as Dongguan, in China’s booming

Pearl River Delta region, have seen a big surge in
car ownership
 Rice Delight

Taiwan Hong Kong, Singapore, and Thailand

Round the Clock

Singapore
 Passage to India

Eat-out market- about $128 billion a year in India,

compared to $132 billion in China
 Where Cows Are Sacred

Indian outlets have developed some popular

vegetarian dishes such as McCurry Pan.
 Cross-Fertilization

The McArabia flatbread, spicy chicken fillet, onion

and garlic mayonnaise number - debuted in the
Middle East
Shrimp sandwich

Wildly popular in Nippon

 Cheap Eats

Such programs are offered in Japan, South Korea,

China & India.
 What is Mc Donald’s Basic
Philosophy? How it enforces
this philosophy and adapts
to different environments?

Customer Centric !!
 “Mc Donald’s is committed to
Social Responsibility. We are
committed to doing the right
thing. We want to make a
positive difference to the
World”
- Jack Greenburg, Chairman &
CEO, McDonald’s.
 Asia [India]

• Challenges:

- 1997: Expensive
Only Non-Veg
- 1998: Competition by Domestic Food
Chains
 Asia [India]
• Adaptation:

- Substitution of Beef with Mutton

- Mc Aloo, Maharaja Mac
- Delhi Outlet on 1st day of Navaratris
- Tandoori Chicken Mc Burger
- Vegetable Puff
- Family Restaurant Image
 Middle East
• Challenges:
– Orthodox Belief System

• Adaptation:
– Separate Entry Gates for Single Men
and Women
 U.S.
• Challenge:

– Lawsuits by consumers because of fatty

and unhealthy food.
– Overweight issues
 U.S.
• Adaptation:

– Low calorie menu items

– More healthy cooking oil for French
Fries
 Europe & Mexico
• Challenge:

– Non productivity of Idaho potatoes in

Europe

• Adaptation:

– Golden Arches Supply Chain-frozen

potato transport
 France

• Challenge:
- Incompetent Franchisees

• Adaptation:
- Hamburger University near Chicago
Yamini Hingorani
Timsy Garg
McDonald’s
Anjo Thomas
Snehal Chaudhari
Santosh Barwal
Akshay Bhandari
Priya Chawla

THANK YOU ! !