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McDonald’s India McDonald’s India

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McDonald’s India

McDonald’s India

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Submitted By:Siddhant Agrawal

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About the Company:

The McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 118 countries.

Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald.

There are over 310 McDonald's restaurants across the country today.

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History of the Company:McDonald's India opened its first restaurant in 1996. Locally owned

by Hardcastle Restaurants Pvt Ltd (HPRL) and Connaught Plaza Restaurants Pvt Ltd (CPRL).

Time Line:Launch of First McDonald's® Restaurant - 1996

Introduction of Happy Meals™ - 1997

Introduction of Drive thru - Kalamboli restaurant – 2001

Launch of Delivery - Bandra restaurant in 2004

Introduction of Happy Price Menu™ - 2004

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About the Owner: In India, McDonald's has two Indian entrepreneurs:Amit Jatia, Vice Chairman, Hardcastle Restaurants Pvt. Ltd, which

has been awarded a Development Licensee status by McDonald's Corporation, U.S.A, spearheads McDonald's operations in West & South India.

McDonald's restaurants in North & East India is managed by Vikram Bakshi's Connaught Plaza Restaurants Private Limited, which is still a Joint Venture with McDonald's Corporation.

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Products in India:

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Mission Statement

"McDonald's brand mission is to be our customers' favourite place and way to eat." 

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Vision Statement

“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.”

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Core Values: We place the customer experience at the core of all we do. We are committed to our people. We believe in the McDonald's System. We operate our business ethically. We give back to our communities. We grow our business profitably. We strive continually to improve.

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Business Strategy Introduction of Vegetarian Burger in Indian Market such as

McVeggie and McAloo Tikki.Targets some specific set of audience like kids, youth and the young

urban family. Introduces new toys in Happy Meal every week to target the kids.Special discounts and promotional offers are given to generate

more customers.Happy Price Menu.

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Business EnvironmentSuppliersCompetitorsCustomersPublics Intermediaries

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Corporate Social ResponsibilityRonald McDonald House Charities (RMHC).Commitment to Children.“Light up your life, Adopt a child” Educational workshops Hand in Hand Saving Sight Programme.

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Energy Saving Initiatives Initiatives for Water ConservationA Greener Neighborhood I Care for Eye Care

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Human Resource StrategyOrganizational Structure. Job Analysis and Job Evaluation.Recruitment and Selection Process.Management development(Training and Development).Motivation Performance management and Appraisal.Reward and  Employee Benefits.

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Marketing MixProductPlacePricePromotion

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SWOT Analysis

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StrengthsFlexibility and Innovation in productsSupply Chain ManagementAffordable PricesCentralized Customers Support ServiceLot of restaurants across India

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WeaknessLimited Menu Inefficiencies in Home deliveryGlobal WarmingNegative PublicityHigh Employee Turnover

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OpportunitiesExpansionOut-of-Home BreakfastBetter Home DeliveryEnvironmental Friendly Packaging Increasing demand for healthier food.

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ThreatsReligious and political confrontation.Changing Customers’ preferences.Threats of New Entrance.Lawsuits against McDonald’s.Trend towards healthy eating.

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PEST Analysis

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PoliticalThe business operation of an organization is always influenced by

the policies of state and its government. In India, McDonald’s business is also under the control of

government’s rules and regulations The main issue of controlling food business is health and other

issues are license, employee laws, tax issues etc.Political instability of local state is also affects McDonald’s business.

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Economic

All companies are affected by ongoing global economic slowdown. McDonald’s India faces different scale of tax and revenue

measurement.McDonald’s also faces difficulties because of international currency

fluctuations especially in its global food distribution. Local economical condition is also responsible for affecting

McDonald’s operation.

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SocialThe life style of people is being changed and the demand of this

change affects McDonald’s. In India, Hindu people prefer vegetable, Muslim people avoid pork.

To fulfil the customers’ expectation, McDonald’s needs to research the market and also needs to provide effective food menu.

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Technological

The impact of technological innovation is also considerable to meet the customers’ expectation.

As all existing food chains for instance, KFC, Pizza Hut etc, compete each other, McDonald’s has to ensure the all technological access to influence the customers.

Modern and speedy distribution channels, easy and quick payment facility, customer entertaining equipment in store, wireless internet facility in all stores etc. can help McDonald’s to keep on its success.

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AchievementsThe ‘Most Respected Company’ for four consecutive years (2003-

2006) in the Food Services sector, by Businessworld.The ‘Most Preferred Fast Food Outlet’ 2006 & 2007 by Awaaz

Consumer Award hosted by CNBC. Star Retailer – the ‘Consumer Way, Food Services Retailer’ of the

Year 2006 & 2007, 2008 by Franchise. ‘Retailer of the Year’ Award for catering services (2004-2006) at the

Images Retail Awards.

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The ‘Amity Corporate Excellence Award’ –in 2007 & 2008.The ‘Most Wanted Brand of the Year’ Award 2003 & 2004 by

Franchising Holdings India Ltd. The ‘Most Admired F & B Retailer of the Year: QSRs Foreign Origin’ –

The Golden Spoon Awards by Images Retail.  The Company with the Best Corporate Conscience – 2008 by

Business & Economy ‘Value for Money’ brand – 2010 by Pitch Magazine The most trusted family restaurant brand in the country award in

2009, 2010, 2011 by Reader’s Digest Food service retailer of the year 2011 and 2012 – Star Retailer

Awards

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CompetitorsSubwayKentucky Fried Chicken (KFC).Venky’s.Pizza Hut.Domino’s.Locally owned fast food restaurants.

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Corporate Social ResponsibilityCorporate responsibility is a core value at McDonald's. Ronald McDonald House Charities (RMHC) Commitment to Children“Light up your life, Adopt a child” Educational workshopsCare for Environment

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