21167331 Mcdonalds Project Report

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“One world, One

Burger”

- McDonald’s2




CERTIFICATE

3




AKNOWLEDGEMENT

I HAVE GREAT PLEASURE IN PRESENTING MY PROJECT

ENTITLED MC DONALD I TAKE THIS AN OPPORTUNITY TO

EXPRESS MY DEEPEST GRATITUDE & INEPTNESS TO ALL

THOSE WHO CONTRIBUTED INDIRECTLY THEIR VALUABLE

TIME & ASSISTED ME IN MY PROJECT.

I WOULD LIKE TO THANK MY PROJECT GUIDES, ALL

THE FACULTY MEMBERS. FOR THIS APPROVAL & ALSO FOR

HER VALUABLE GUIDANCE & SUPPORT IN COMPLETING MY

PROJECT OF MC DONALD.

LAST BUT NOT THE LEAST I WOULD LIKE TO EXPRESS MY

SINCERE THANKS TO THOSE WHO DIRECTLY & INDIRECTLY

HELPED IN THIS PROJECT.

SUBMITTED BY, AJAY AVHAD

PARAG AWATE

SNEHA VINEKAR

4




DECLARATTION

WE STUDENTS OF BIRLA COLLEGE, STUDENT OF

SY. B.M.S (SEMESTER 4) HEREBY DECLARES THAT

WE HAVE ACCORDINGLY COMPLETED MY PROJECT

ON MC DONALDS IN THE YEAR 2008- 2009.

THE INFORMATION SUBMITTED IS TRUE

&ORIGINAL TO THE BEST OF MY KNOWLEDGE.

5




SR

NO.PARTICULARS

PAGE

NO.

1. INTRODUCTION 7-9

2. CHAPTER 1

COMPANY PROFILE

10-18

3. CHAPTER 2

ANALIYSIS ON MCDONALDS AS A SMALL

SCALE CORPORATION IN THE BEGINNING

19-24

4.

CHAPTER 3

ANALIYSIS ON MCDONALDS

CORPORATION AT INTERNATIONAL

LEVEL.

25-30

5.

CHAPTER 4

ANALIYSIS ON MCDONALDS ON PRODUTIVITY

& QUALITY.

31-35

6.

CHAPTER 5


ADVERTISEMENT AND PUBILE RELATIONS.

36-41

7.

CHAPTER 6

ANALIYSIS ON VALUATION OF TAX OF

MCDONALDS CORPORATION.

42-47

8.

CHAPTER 7

ANALIYSIS ON MCDONALDS IMPORT-

EXPORT.

48-51

6




INTRODUCTION

Although the realm of accounting and finance has

often been viewed as dull ‘bean counting’, in today’s modern and

competitive business environment, the finance department should

be at the heart of any company, encompassing a variety of

functions that go beyond its traditional financial reporting role.

While it is still a priority for accountants to ensure a company’s

financial statutory accounts meet legal requirements, dynamic

companies such as McDonald’s have shifted the focus of their

accounting and finance function to additionally include the

evaluation of past performance and appraisal of future

opportunities, helping to ensure the

Company maximises its strategic capabilities.

McDonald’s Restaurants UK Limited, a wholly owned

subsidiary of the U.S. parent company, opened its first UK

restaurant in Woolwich in 1974. There are now 1,200 restaurants

operating in the UK which, despite representing only 4% of the

total number of McDonald’s restaurants worldwide, contribute

7




7% of global profits, making the UK a very important financial

market for McDonald’s shareholders.

McDonald’s understands the value of an integrated

accounting and finance function, extending from the restaurant

floor up to the board of directors. Each individual McDonald’s

restaurant is structured as an independent business, with

restaurant management responsible for its financial performance,

supported by the centralised Accounting & Finance department.

DEPARTMENT STRUCTURE & FUNCTION

McDonald’s Finance Department has two key areas of

responsibility: financial reporting and management accounting.

Although each of these functions has different priorities, working

together ensures the best financial position for the company now

and for the future.

8




HOW DOES MCDONALD’S MAKE A PROFIT?

McDonald’s has two sources of profit:

• Sales made by company-owned restaurants

• Rental and royalty income from franchised restaurants.

RESTAURANT SALES

McDonald’s retains all of the profit earned by company-owned

restaurants. An example Profit & Loss Statement for a restaurantis shown left and highlights how food and labour constitute a

restaurant’s largest costs. In addition to variable costs, which

increase or decrease depending on the level of sales, McDonald’s

also incurs costs that are largely fixed, for example utilities and

advertising, which need to be paid for even before the restaurant

makes any sales. Increasing sales and controlling costs are

fundamental to ensuring the profit of each restaurant is either

maintained or increased.

9




CHAPTER:-1

COMPANY PROFILE

10




McDonalds is a leader in convenient foods and

beverages, with revenues of about $23 billion and over i.6 million

employees serving the customer’s world wide. The company

consists of the snack business of Beverages and Foods. PepsiCo

brands are available in nearly 115 countries having more than

24,500 restaurants in the world providing 24 hour service. Having

about 1 billon customers to be served all over the world.

McDonalds’s success is the result of superior products,

high standards of performance, distinctive competitive strategies

and the high integrity of our people. McDonalds is continuing to

expand and introduce new alternative beverages in the market.

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

Our mission is to be the world's premier consumer

Products Company focused on convenient foods and beverages.

We seek to produce healthy financial rewards to investors as we

provide opportunities for growth and enrichment to our

employees, our business partners and the communities in which

we operate. And in everything we do, we strive for honesty,fairness and integrity you could now join our team. Greater

11




variety and quality choices surprise and delight customers with

the food and beverage they desire.

McDonald’s corp. is currently one of the most successful

consumer products company in the world with annual revenues

exceeding $23 million and has more than 1.6 million employees.

McDonald’s products are recognized and are most respected all

around the globe. Currently, its divisions operate in all over the

world in beverages, snack foods, and restaurants. The

corporations increasing success has been based on high standards

of performance, marketing strategies, competitiveness,

determination, commitment, and the personal and professional

integrity of their people, products and business practices.

McDonald’s believes their success depends upon the quality

and value of their products by providing a safe, whole some,

economically efficient and a healthy environment for their customers; and by providing a fair return to their investors while

maintaining the highest standards of integrity.

12




HISTORY OF McDONALDS.

13




The McDonald's History - 1954 to 1955

Raymond Albert Kroc 1902-1984, A SalesmanRay Kroc mortgaged his home and investedhis entire life savings to become theexclusive distributor of a five-spindled milkshake maker called the Multimixer. Hearingabout the McDonald's hamburger stand inCalifornia running eight Multimixers at a time,

he packed up his car and headed West. Itwas 1954. He was 52 years old.

Dick and Mac McDonald's Restaurant, San Bernardino,California

Ray Kroc had never seen so many people

served so quickly when he pulled up to takea look. Seizing the day, he pitched the ideaof opening up several restaurants to thebrothers Dick and Mac McDonald, convincedthat he could sell eight of his Multimixers toeach and every one. "Who could we get toopen them for us?" Dick McDonald said.

"Well," Kroc answered, "what about me?"

Where it all began, Des Plaines, Illinois

14




Ray Kroc opened the Des Plaines restaurantin 1955. First day's revenues-$366.12! Nolonger a functioning restaurant, the DesPlaines building is now a museum containingMcDonald's memorabilia and artifacts,including the Multimixer!


Ray Kroc At Work

"If you've got time to lean, you've got time to clean,"Ray Kroc preached to his troops. Heeding his ownwords, here the Chairman of the Board cleans theparking lot of the first McDonald's franchise in DesPlaines, Illinois.

Ronald McDonald, In Any Language He Means "Fun!"

"The smile known around the world," In his first TVappearance in 1963 the happy clown was portrayed bynone other than Willard Scott.

Fred Turner And Ray Kroc, Architects Of A Dream

15




Here Ray Kroc (right) and Fred Turner study the designwhich would replace the red and white tile buildings thathad become landmarks throughout the U.S. CalledKroc's first "grill man extraordinaire," Turner is today

Senior Chairman of the Board.


McDonald's Comes To Wall Street

In 1965 McDonald's went public with the company's firstoffering on the stock exchange. A hundred shares of stock costing $2,250 dollars that day would havemultiplied into 74,360 shares today, worthapproximately $3.3 million on December 31, 2006. In1985 McDonald's was added to the 30-company DowJones Industrial Average.

A Big Idea Called "Big Mac"

"Introduced systemwide in 1968, the Big Mac was thebrainchild of Jim Delligatti, one of Ray Kroc's earliestfranchisees, who by the late 1960s operated a dozenstores in Pittsburgh."

The Egg McMuffin

Introduced in 1973, the Egg McMuffin was developedby owner operator Herb Peterson.

16




The First Ronald McDonald House in Philadelphia, PA

In 1974 Fred Hill of the Philadelphia Eagles teamed upwith McDonald's to create Ronald McDonald House.Here the families of critically ill children have a place tocall home while they're away from home as the youngpatients undergo treatment for their conditions.

The Happy Meal

Since 1979 the Happy Meal has been making kids visitsthat much more special. Clubs the world over collectHappy Meals toys and boxes.

The Future Begins Now

McDonald's Express for a world that can't slowdown!. McDonald's is popping up in more non-traditional locations like Amoco and Chevronstations, with full menu offerings and dining roomseating, just like you'll find in a traditionalMcDonald's.

FACTS & FIGURES

1.6millionRestaurant employees System wide dedicated to serving our

customers

17




540millionSnack Wraps were sold in 2007

24,500Restaurants around the world offer extended or 24-hour

service

1billionMore customers were served in 2007 than in 2006

115Countries participated in one of McDonald’s most successful

promotions ever –

Our tie-in with DreamWorks’ Shriek the Third™

18




CHAPTER:-2

ANALIYSIS ON MCDONALDS AS

A SMALL SCALE

CORPORATION IN THE

BEGINNING.

McDonald’s is one of the leading restaurant chains in

the world, touching the lives of people everyday. The long

journey of the burger brand started in 1940, when two brothers,

Dick and Mac McDonald opened the first McDonald’s restaurant

in San Bernardino, California. Initially, they owned a hotdog19




stand, but after establishing the restaurant they served around 25

items, which were mostly barbequed. It became a popular and

profitable teen hangout. In 1948, the brothers closed and

reopened the restaurant to sell only hamburgers, milkshakes and

French fries.

As per the information of the McDonald’s history, the

major revenue came from hamburgers, which were sold at anominal price of 15 cents. The restaurant gradually became

famous and the McDonald brothers begin franchising their

restaurant in the year 1953. The first franchise was taken by Neil

Fox and under it; the second Mc Donald’s restaurant was opened

in Fresno, California. It was the first to introduce the Golden

Arch design. The third and fourth restaurants were opened in

Saginaw, Michigan and Downey, California, respectively.

The business began in 1940, with a restaurant opened by siblings Dick and Mac McDonald in San Bernardino,

California. Their introduction of the "Speedee Service System" in

1948 established the principles of the modern fast-food

restaurant. The original mascot of McDonald's was a man with a

chef's hat on top of a hamburger shaped head whose name was

20

http://en.wikipedia.org/wiki/Restaurant

http://en.wikipedia.org/wiki/Dick_and_Mac_McDonald

http://en.wikipedia.org/wiki/San_Bernardino,_California

http://en.wikipedia.org/wiki/California

http://en.wikipedia.org/wiki/Fast_food#Overview


http://en.wikipedia.org/wiki/Restaurant

http://en.wikipedia.org/wiki/Dick_and_Mac_McDonald

http://en.wikipedia.org/wiki/San_Bernardino,_California

http://en.wikipedia.org/wiki/California






"Speedee." Speedee was eventually replaced with Ronald

McDonald in 1963.

The present corporation dates its founding to the opening

of a franchised restaurant by Ray Kroc, in Des Plaines, Illinois 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 for

aggressive business practices, compelling the McDonald's

brothers to leave the fast food industry. The McDonald's brothers

and Kroc feuded over control of the business, as documented in

both Kroc's autobiography and in the McDonald brothers

autobiography. The site of the McDonald brothers' original

restaurant is now a monument.

With the expansion of McDonald's into many international

markets, the company has become a symbol of globalization and

the spread of the American way of life. Its prominence has also

made it a frequent topic of public debates about obesity, corporate

ethics and consumer responsibility.

MCDONALD'S India Pvt Ltd (MIPL), the wholly-owned

subsidiary of the US-based fast-food giant, McDonald's

21

http://en.wikipedia.org/wiki/Franchising

http://en.wikipedia.org/wiki/Ray_Kroc

http://en.wikipedia.org/wiki/Des_Plaines,_Illinois

http://en.wikipedia.org/wiki/Illinois

http://en.wikipedia.org/wiki/Dick_and_Mac_McDonald#Franchising


http://en.wikipedia.org/wiki/Globalization

http://en.wikipedia.org/wiki/American_way

http://en.wikipedia.org/wiki/Obesity

http://en.wikipedia.org/wiki/Business_ethics


http://en.wikipedia.org/wiki/Consumer

http://en.wikipedia.org/wiki/Moral_responsibility

http://en.wikipedia.org/wiki/Franchising

http://en.wikipedia.org/wiki/Ray_Kroc





http://en.wikipedia.org/wiki/Globalization

http://en.wikipedia.org/wiki/American_way

http://en.wikipedia.org/wiki/Obesity



http://en.wikipedia.org/wiki/Consumer

http://en.wikipedia.org/wiki/Moral_responsibility




Corporation, is likely to put on hold its earlier declared expansion

plan of opening 80 restaurants in India by 2003.

McDonald’s has 132 restaurants in India of which 79 are in North & East

India and 53 in West & South India.

79 restaurants in North & East India: with

33 in Delhi

• 22 in Uttar Pradesh – Noida (5),

• Ghaziabad (4), Mathura (1) (Highway and Drive Thru), Kanpur (2),

Meerut (2), Lucknow (4), Agra (1), Allahabad (1), Varanasi (2)

22




• 11 in Haryana - Faridabad (3), Manesar (1) (Highway and Drive -

Thru), Gurgaon (5), Karnal (1) (Highway and Drive - Thru), Panipat

(1)

• 7 in Punjab - Chandigarh (2), Ludhiana (2), Doraha (1) (Highway

and Drive - Thru), Jalandhar (1), Patarsi (1) (Highway and Drive -

Thru)

• 3 in Rajasthan - Jaipur (3)

• 1 in Uttaranchal - Dehradun (1)

• 1 in West Bengal – Kolkata (1)• 1 in Himachal Pradesh- Jabli (1).

53 Restaurants in West & South India:

32 in Maharashtra – Mumbai (23), Pune (8), Nasik (1)

• 7 in Gujarat – Ahmedabad (4), Vadodara (2), Surat (1)

• 7 in Karnataka – Bangalore(7)

• 4 in Andhra Pradesh – Hyderabad (4), 3 in Madhya Pradesh –

Indore (3)

23




1996 The first McDonald's restaurant opened on Oct. 13, at Basant Lok,Vasant Vihar, New Delhi. It was also the first McDonald's

restaurant in the world not serving beef on its menu

1997 The first Drive - Thru restaurant at Noida (UP)

The first disabled friendly store at Noida (UP)

1999 The first Mall location restaurant at Ansal Plaza (New Delhi)

2000 The first highway restaurant at Mathura (UP)

2001 The first thematic restaurant at Connaught Place (New Delhi)

2002 The first restaurant in a food court at 3C's, Lajpat Nagar (NewDelhi)

The first restaurant at the Delhi Metro Station at Inter State BusTerminus

The first annual fundraiser in association with ORBIS and Dr.Shroff's Charity Eye Hospital.(Delhi)

2003 The first Dessert Kiosk - Faridabad (Haryana)2003-

04

Indigenous products like McAloo Tikki, McVeggie and PizzaMcPuff exported to Middle East countries

2004 McDonald's Delivery Service (McDeliveryTM ) introduced in NewDelhi

2006 McDelivery on Bicycles flagged off at Chandni Chowk (Delhi)-another first initiative by McDonald's India

100th McDonald's Restaurant in India

10 Year Anniversary

2007 The first Restaurant opened in the Eastern Region at Park Street,Kolkata (West Bengal)

The first Restaurant opened at Airport.(Domestic Airport, NewDelhi)

24




CHAPTER:-3

ANALIYSIS ON MCDONALDSCORPORATION AT

INTERNATIONAL LEVEL.

McDonald's International through its wholly owned

subsidiary McDonald's India entered into two JVs, one with

25




Connaught Plaza Restaurants Pvt. Ltd. in the Northern & Eastern

region and another with Hard Castle Restaurants Pvt. Ltd. in the

Western & Southern region

McDonald's restaurants are found in 119 countries and

territories around the world and serve nearly 47 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

Café, and has a minority stake in Pret a Manger . The company

owned a majority stake in Chipotle Mexican Grill until

completing its divestment in October 2006. Until December 2003,

it also owned Donatos Pizza. On August 27, 2007, McDonald'ssold Boston Market to Sun Capital Partners.

Most standalone McDonald's restaurants offer both

counter service and drive-through service, with indoor and

sometimes outdoor seating. Drive-Thru, Auto-Mac, Pay and

Drive, or McDrive as it is known in many countries, often has

separate stations for placing, paying for, and picking up orders,

26

http://en.wikipedia.org/wiki/Brand

http://en.wikipedia.org/wiki/Pret_a_Manger

http://en.wikipedia.org/wiki/Chipotle_Mexican_Grill

http://en.wikipedia.org/wiki/Divestment

http://en.wikipedia.org/wiki/Donatos_Pizza

http://en.wikipedia.org/wiki/Boston_Market

http://en.wikipedia.org/wiki/Sun_Capital_Partners

http://en.wikipedia.org/wiki/Counter_service

http://en.wikipedia.org/wiki/Drive-through

http://en.wikipedia.org/wiki/Brand

http://en.wikipedia.org/wiki/Pret_a_Manger

http://en.wikipedia.org/wiki/Chipotle_Mexican_Grill

http://en.wikipedia.org/wiki/Divestment

http://en.wikipedia.org/wiki/Donatos_Pizza

http://en.wikipedia.org/wiki/Boston_Market

http://en.wikipedia.org/wiki/Sun_Capital_Partners

http://en.wikipedia.org/wiki/Counter_service





though the latter two steps are frequently combined; it was first

introduced in Arizona in 1975, following the lead of other fast-

food chains. 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. There are also a few locations, located mostly in

downtown districts, that offer Walk-Thru service in place of

Drive-Thru. Especially themed restaurants also exist, such as the"Solid Gold McDonald's," a 1950s rock-and-roll themed

restaurant. In Victoria, British Columbia, there is also a

McDonald's with a 24 carat (100%) gold chandelier and similar

light fixtures.

Each McDonald's restaurant is operated by a franchisee, an

affiliate, or the corporation itself. The corporations' revenues

come from the rent, royalties and fees paid by the franchisees, as

well as sales in company-operated restaurants. McDonald's

revenues grew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9 billion.

Full year 2008 highlights included:

27

http://en.wikipedia.org/wiki/Highway



http://en.wikipedia.org/wiki/Victoria,_British_Columbia

http://en.wikipedia.org/wiki/British_Columbia

http://en.wikipedia.org/wiki/Chandelier

http://en.wikipedia.org/wiki/Highway



http://en.wikipedia.org/wiki/Victoria,_British_Columbia

http://en.wikipedia.org/wiki/British_Columbia

http://en.wikipedia.org/wiki/Chandelier




• Global comparable sales increase of 6.9%, including

U.S. 4.0%, Europe 8.5%, and Asia/Pacific, Middle East and

Africa 9.0%

• Growth in McDonald’s combined operating margin of 320

basis points to 27.4%, after adjusting for the impact of the

2007 Latin America transaction

• Operating income increases in the U.S. 8%, Europe 23%

(17% in constant currencies) and Asia/Pacific, Middle Eastand Africa 33% (28% in constant currencies)

• Earnings per share from continuing operations of $3.76, an

increase of 16% (14% in constant currencies), after adjusting

for the impact of the 2007 Latin America transaction

Return of $5.8 billion to shareholders through shares repurchased

and dividends paid, including a 33% increase in the quarterly

cash dividend to $0.50 per share for the fourth quarter – bringing

our current annual dividend rate to $2.00 per share

Individual franchise arrangements generally include a leaseand a license and provide for payment of initial fees, as well as

continuing rent and royalties to the Company based upon a

percent of sales with minimum rent payments that parallel the

Company’s underlying leases and escalations (on properties that

are leased). McDonald’s franchisees are granted the right to

operate a restaurant using the McDonald’s System and, in most

28




cases, the use of a restaurant facility, generally for a period of 20

years. Franchisees pay related occupancy costs including property

taxes, insurance and maintenance. In addition, in certain markets

outside the U.S., franchisees pay a refundable, non interest-

bearing security deposit. Foreign

affiliates and developmental licensees pay a royalty to the

Company based upon a percent of sales, as well as initial fees.

The results of operations of restaurant businesses purchased andsold in transactions with franchisees, affiliates and others were

not material to the consolidated financial statements for periods

prior to purchase and sale.

McDonald's India…… Culturally Sensitive

McDonald's worldwide is well known for the high degree of

respect for the local customs and culture. McDonald’s has

29




developed a menu especially for India with vegetarian selections

to suit Indian tastes and preferences. Keeping in line with this,

McDonald's does not offer any beef or pork items in India. In

the last decade it has introduced some vegetarian and non-

vegetarian products with local flavours that have appealed to the

Indian palate. There have been continuous efforts to enhance

variety in the menu by developing more such products.

McDonald's has also re-engineered its operations repeatedly in its

11 years in India to address the special requirements of a

vegetarian menu. Vegetable products are 100% vegetarian, i.e.

• They are prepared separately, using dedicated equipment and

utensils.

• Only pure vegetarian oil is used as a cooking medium.

• Cheese and sauces are completely vegetarian and egg less.

• Separation of vegetarian and non-vegetarian food products is

maintained throughout the various stages of procurement,cooking and serving.

30




CHAPTER:-4

ANALIYSIS ON MCDONALDS ONPRODUTIVITY & QUALITY.

The site of the first McDonald's to be franchised by Ray

Kroc is now a museum in Des Plaines, Illinois. The building is a

reproduction of the original, which was the ninth McDonald's

restaurant.

31

http://en.wikipedia.org/wiki/McDonald's_Museum



http://en.wikipedia.org/wiki/McDonald's_Museum






To accommodate the current trend for high quality coffee

and the popularity of coffee shops in general, McDonald's

introduced McCafés. The McCafé concept is a café-style

accompaniment to McDonald's restaurants. McCafé is a concept

of McDonald's Australia, starting with Melbourne in 1993.

Today, most McDonald's in Australia have McCafés located

within the existing McDonald's restaurant. In Tasmania there are

McCafés in every store, with the rest of the states quicklyfollowing suit. After upgrading to the new McCafé look and feel,

some Australian stores have noticed up to a 60% increase in sales.

As of the end of 2003 there were over 600 McCafés worldwide.

Some locations are connected to gas stations/convenience

stores, while others called McDonald's Express have limited

seating and/or menu or may be located in a shopping mall. Other

McDonald's are located in Wal-Mart stores. McStop is a location

targeted at truckers and travelers which may have services found

at truck stops. McDonald's announced on May 22, 2008 that, inthe U.S. and Canada, it will be introducing cooking oil for its

French fries that contain no trans fats. The company will use

canola-based oil with corn and soy oils by year's end for its baked

items, pies and cookies.

In a bid to tap into growing consumer interest in the

provenance of food, the fast-food chain recently switched its

32

http://en.wikipedia.org/wiki/Caf%C3%A9

http://en.wikipedia.org/wiki/Australia


http://en.wikipedia.org/wiki/Tasmania

http://en.wikipedia.org/wiki/Gas_station

http://en.wikipedia.org/wiki/Convenience_store


http://en.wikipedia.org/wiki/Shopping_mall

http://en.wikipedia.org/wiki/Wal-Mart

http://en.wikipedia.org/wiki/Truck_stop

http://en.wikipedia.org/wiki/French_fries

http://en.wikipedia.org/wiki/Trans_fat

http://en.wikipedia.org/wiki/Provenance

http://en.wikipedia.org/wiki/Caf%C3%A9



http://en.wikipedia.org/wiki/Tasmania

http://en.wikipedia.org/wiki/Gas_station



http://en.wikipedia.org/wiki/Shopping_mall

http://en.wikipedia.org/wiki/Wal-Mart

http://en.wikipedia.org/wiki/Truck_stop


http://en.wikipedia.org/wiki/Trans_fat

http://en.wikipedia.org/wiki/Provenance




supplier of both coffee beans and milk . UK chief executive Steve

Easterbrook said: "British consumers are increasingly interested

in the quality, sourcing and ethics of the food and drink they

buy". McDonald's coffee is now brewed from beans taken from

stocks that have been certified by the Rainforest Alliance, a

conservation group. Similarly, milk supplies used for its hot

drinks and milkshakes have been switched to organic sources

which could account for 5% of the UK's organic milk output. Thecompany has also expanded the McDonald's menu in recent

decades to include alternative meal options, such as salads and

snack wraps, in order to capitalize on growing consumer interest

in health and wellness. McDonald's predominantly sells

hamburgers, various types of chicken sandwiches and products,

French fries, soft drinks, breakfast items, and desserts. In most

markets, McDonald's offers salads and vegetarian items, wraps

and other localized fare. This local deviation from the standard

menu is a characteristic for which the chain is particularly known,

and one which is employed either to continue by regional food

taboos (such as the religious prohibition of beef consumption in

India) or to make available foods with which the regional market

is more familiar (such as the sale of Mc Rice in Indonesia). There

have been continuous efforts to enhance variety in the menu by

developing more such products.

33

http://en.wikipedia.org/wiki/Supplier

http://en.wikipedia.org/wiki/Coffee

http://en.wikipedia.org/wiki/Milk

http://en.wikipedia.org/wiki/Fair_trade

http://en.wikipedia.org/wiki/Rainforest_Alliance

http://en.wikipedia.org/wiki/Tropical_rainforest_conservation

http://en.wikipedia.org/wiki/Organic_food

http://en.wikipedia.org/wiki/Hamburgers

http://en.wikipedia.org/wiki/Chicken

http://en.wikipedia.org/wiki/Sandwiches


http://en.wikipedia.org/wiki/Soft_drinks

http://en.wikipedia.org/wiki/Breakfast

http://en.wikipedia.org/wiki/Desserts

http://en.wikipedia.org/wiki/Salads

http://en.wikipedia.org/wiki/Vegetarian

http://en.wikipedia.org/wiki/Wrap_(food)

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Indonesia

http://en.wikipedia.org/wiki/Supplier

http://en.wikipedia.org/wiki/Coffee

http://en.wikipedia.org/wiki/Milk

http://en.wikipedia.org/wiki/Fair_trade

http://en.wikipedia.org/wiki/Rainforest_Alliance

http://en.wikipedia.org/wiki/Tropical_rainforest_conservation

http://en.wikipedia.org/wiki/Organic_food

http://en.wikipedia.org/wiki/Hamburgers

http://en.wikipedia.org/wiki/Chicken

http://en.wikipedia.org/wiki/Sandwiches


http://en.wikipedia.org/wiki/Soft_drinks

http://en.wikipedia.org/wiki/Breakfast

http://en.wikipedia.org/wiki/Desserts

http://en.wikipedia.org/wiki/Salads

http://en.wikipedia.org/wiki/Vegetarian

http://en.wikipedia.org/wiki/Wrap_(food)

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Indonesia




McDonald's has also re-engineered its operations

repeatedly in its 11 years in India to address the special

requirements of a vegetarian menu. Vegetable products are 100%

vegetarian, They are prepared separately, using dedicated

equipment and utensils. Only pure vegetarian oil is used as a

cooking medium. Cheese and sauces are completely vegetarian

and egg less. Separation of vegetarian and non-vegetarian food

products is maintained throughout the various stages of

procurement, cooking and serving.

• Most Respected Company' for four consecutive

years, 2003-2007 in the Food Services sector, by

Businessworld

• Most Wanted Brand of the Year' Award 2003 &

2004 by Franchising Holdings India Ltd.

• Retailer of the Year' Award for catering services,

2004-2006 at the Images Retail Awards.

• 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, by Franchise

India

• Amity Corporate Excellence Award'-in 2007 &

2008

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McDonald's India - A decade of quality service

For its unparalleled benchmarks established in the QSR sector McDonald’s India has been bestowed with many prestigious

awards. To name a few:

CHAPTER:-5


ADVERTISEMENT AND PUBILE

RELATIONS.

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Over the years, McDonald's has developed TV advertising

campaigns that have become, like McDonald's, a part of our lives

and culture. McDonald's commercials have focused not only on product, but rather on the overall McDonald's experience,

portraying warmth and a real slice of every day life. This "image"

or "reputation" advertising has become a trademark of the

company and created many memorable television moments and

themes, including:-

McDonald's is Your Kind of Place (1967)

You Deserve a Break Today (1971)

We Do it All for You (1975)

Twoallbeefpattiesspecialsaucelettucecheesepicklesonionsonasesa

meseedbun (1975)

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You, You're The One (1976)

Nobody Can Do It Like McDonald's Can (1979)

Renewed: You Deserve a Break Today (1980 & 1981)

Nobody Makes Your Day Like McDonald's Can (1981)

McDonald's and You (1983)

It's a Good Time for the Great Taste of McDonald's (1984)

Good Time, Great Taste, That's Why This is My Place (1988)

Food, Folks and Fun (1990)McDonald's Today (1991)

What You Want is What You Get (1992)

Have you Had your Break Today? (1995)

My McDonald's (1997)

Did Somebody Say McDonald's (1997)

We Love to See You Smile (2000)

There's a little McDonald's in Everyone (2001) - Canada Only

I’m lovin' it (2003)

McDonald's has for decades maintained an extensive advertisingcampaign. In addition to the usual media (television, radio, and

newspaper), the company makes significant use of

billboards(outdoors, on which large advertisements or notices are

posted.) and signage, sponsors sporting events from ranging from

Little League to the Olympic Games, and makes coolers of

orange drink with their logo available for local events of all kinds.

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http://en.wikipedia.org/wiki/Little_League

http://en.wikipedia.org/wiki/Olympic_Games

http://en.wikipedia.org/wiki/Orange_drink

http://en.wikipedia.org/wiki/Little_League

http://en.wikipedia.org/wiki/Olympic_Games

http://en.wikipedia.org/wiki/Orange_drink




Nonetheless, television has always played a central role in the

company's advertising strategy.

EMPLOYEE BENEFIT PLANS

The Company’s Profit Sharing and Savings Plan for U.S.- based employees includes a 401(k) feature, a leveraged employee

stock ownership (ESOP) feature, and a discretionary employer

profit sharing match. The 401(k) feature allows participants to

make pre-tax contributions that are partly matched from shares

released under the ESOP. The Profit Sharing and Savings Plan

also provides for a discretionary employer profit sharing match at

the end of the year for those eligible participants who have

contributed to the 401(k) feature. All contributions and related

earnings can be invested in several investment alternatives as well

as McDonald’s common stock in accordance with each

participant’s elections. Participants’ contributions to the 401(k)38




feature and the discretionary employer match are limited to 20%

investment in McDonald’s common stock. The Company also

maintains certain supplemental benefit t plans that allow

participants to (i) make tax-deferred contributions

and (ii) receive Company-provided allocations that cannot be

made under the Profit Sharing and Savings Plan because of

Internal Revenue Service limitations. The investment alternatives

and returns are based on certain market-rate investmentalternatives under the Profit Sharing and Savings Plan. Total

liabilities were $415.3 million at December 31, 2007 and $378.6

million at December 31, 2006 and were included in other long-

term liabilities in the Consolidated balance sheet. The Company

has entered into derivative contracts to hedge market-driven

changes in certain of the liabilities. At December 31, 2007,

derivatives with a fair value of $100.8 million indexed to the

Company’s stock as well as an investment totalling $82.0 million

indexed to certain market indices were included in miscellaneous

other assets in the Consolidated balance sheet. All changes in

liabilities for these nonqualified plans and in the fair value of the

derivatives are recorded in selling, general & administrative

expenses. Changes in fair value of the derivatives indexed to the

Company’s stock are recorded in the income statement because

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the contracts provide the counterparty with a choice to settle in

cash or shares.

Total U.S. costs for the Profit Sharing and Savings Plan,

including nonqualified benefits and related hedging activities,

were (in millions): 2007–$57.6; 2006–$60.1; 2005–$58.0. Certain

subsidiaries outside the U.S. also offer profit sharing, stock

purchase or other similar benefit plans. Total plan costs outside

the U.S. were (in millions): 2007–$62.7; 2006–$69.8; 2005– $54.1. The total combined liabilities for international retirement

plans were $129.4 million and $197.6 million at December 31,

2007 and 2006, respectively, primarily in Canada and the U.K.

Other postretirement benefits and post-employment benefits were

immaterial.

REASON TO WORK WITH MCDONALDS

• Fast-track Career Progression• Young , Energetic & Flexible

Environment

• Excellent learning Potential

•

Dignity of Labour• World class Training Systems

• Global Exposure

• Good Benefits

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CHAPTER:-6

ANALIYSIS ON VALUATION OF

TAX OF MCDONALDSCORPORATION.

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The Company records a valuation allowance to reduce

its deferred tax assets if it is more likely than not that some

portion or all of the deferred assets will not be realized. While the

Company has considered future taxable income and ongoing

prudent and feasible tax strategies, including the sale of

appreciated assets, in assessing the need for the valuation

allowance, if these estimates and assumptions change in the

future, the Company may be required to adjust its valuation

allowance. This could result in a charge to, or an increase in,

income in the period such determination is made. In addition, the

Company operates within multiple taxing jurisdictions and is

subject to audit in these jurisdictions. The Company records

accruals for the estimated outcomes of these audits, and the

accruals may change in the future due to new developments in

each matter. During 2007, the Company recorded a $316 million

benefit as a result of the completion of an IRS examination of the

Company’s 2003-2004 U.S. tax returns. During 2005, the

Company recorded a $179 million benefit due to the completion

of an IRS examination of the Company’s 2000-2002 U.S. tax

returns. The Company’s 2005-2006 U.S. tax returns are under

audit and the completion is expected in late2008 or early 2009.

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Deferred U.S. income taxes have not been recorded for

temporary differences totalling $6.7 billion related to investments

in certain foreign subsidiaries and corporate joint ventures. The

temporary differences consist primarily of undistributed earnings

that are considered permanently invested in operations outside the

U.S. If management’s intentions change in the future, deferred

taxes may need to be provided.

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BALANCE SHEET OF MCDONALDS 2007-08

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PERIOD

ENDING

30-Jun-07 31-Mar-07 31-Dec-06 30-Sep-06

Assets

Current Assets

Cash And

Cash

Equivalents

2,142,100 2,438,400 2,136,400 4,282,700

Short Term

Investments

- - - -

Net

Receivables784,600 848,000 904,200 812,500

Inventory 1,055,500 143,700 149,000 144,500

Other

Current

Assets

379,200 449,300 435,700 596,000

Total CurrentAssets 4,361,400 3,879,400 3,625,300 5,835,700

Long Term

Investments1,060,100 1,064,400 1,036,200 1,032,300

Property

Plant and

Equipment

20,106,600 20,975,200 20,845,700 20,526,200

Goodwill 2,198,300 2,254,300 2,209,200 2,156,100

Intangible

Assets- - - -

Accumulated

Amortization- - - -

Other Assets 1,268,500 1,300,200 1,307,400 1,278,900

Deferred

Long Term

Asset

Charges

- - - -

Total Assets 28,994,900 29,473,500 29,023,800 30,829,20045




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Liabilities

Current Liabilities

Accounts

Payable2,120,900 2,451,000 2,739,000 4,122,100

Short/Current

Long Term

Debt

288,200 613,500 17,700 454,200

Other Current

Liabilities 1,020,500 - 251,400 -

Total Current

Liabilities3,429,600 3,064,500 3,008,100 4,576,300

Long Term

Debt7,885,500 8,199,900 8,416,500 8,569,400

Other

Liabilities1,652,500 1,471,000 1,074,900 1,154,300

Deferred Long

Term Liability

Charges

941,600 971,100 1,066,000 1,002,900

Minority

Interest- - - -

Negative

Goodwill- - - -

Total

Liabilities13,909,200 13,706,500 13,565,500 15,302,900

Stockholders' Equity

Misc Stocks

Options

Warrants

- - - -

Redeemable

Preferred

Stock

- - - -

PreferredStock

- - - -

Common

Stock16,600 16,600 16,600 16,600

Retained

Earnings25,881,200 26,592,500 25,845,600 24,585,700

Treasury

Stock(14,832,700) (14,371,900) (13,552,200) (11,858,500)

CapitalSurplus

3,957,000 3,731,300 3,445,000 3,228,200

Other

Stockholder

Equity

63,600

(201,500)

(296,700) (445,700)

Total

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CHAPTER:-7

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IMPORT- EXPORT.

The business is managed as distinct geographic segments.

Significant reportable segments include the United States (U.S.),

Europe, and Asia/Pacific, Middle East and Africa (APMEA). In

addition, throughout this report we present “Other Countries &

Corporate” that includes operations in Canada and Latin America,

as well as Corporate activities and certain investments. The U.S.,Europe and APMEA segments account for 35%, 39% and 16% of

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total revenues, respectively. France, Germany and the United

Kingdom (U.K.), collectively, account for approximately 60% of

Europe’s revenues; and Australia, China and Japan a 50%-owned

affiliate accounted for under the equity method), collectively,

account for over 50% of APMEA’s revenues. These six markets

along with the U.S. and Canada are referred to as “major

markets” throughout this report and comprise over 70% of total

revenues. The Company continues to focus its management andfinancial resources on the McDonald’s restaurant business as we

believe the opportunities for long-term growth remain signifi

cant. Accordingly, during the third quarter 2007, the Company

sold its investment in Boston Market. In 2006, the Company

disposed of its investment in Chipotle Mexican Grill (Chipotle)

via public stock offerings and a tax-free exchange for

McDonald’s common stock. As a result of the disposals during

2007 and 2006, both Boston Market’s and Chipotle’s results of

operations and transaction gains have been reflected as

discontinued operations for all periods presented. In analyzing

business trends, management considers a variety of performance

and financial measures including comparable sales growth,

System wide sales growth, restaurant margins and returns.

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• Constant currency results exclude the effects of foreign currency

translation and are calculated by translating current year results at

prior year average exchange rates. Management reviews and

analyzes business results in constant currencies and bases certain

compensation plans on these results because we believe they

better represent the underlying business trends.

• Comparable sales are a key performance indicator used withinthe retail industry and are indicative of acceptance of the

Company’s initiatives as well as local economic and consumer

trends. Increases or decreases in comparable sales represent the

percent change in constant currency sales from the same period in

the prior year for all restaurants in operation at least thirteen

months, including those temporarily closed. Some of the reasons

restaurants may be temporarily closed include road construction,

reimaging or remodelling, rebuilding, and natural disasters.

McDonald’s reports on a calendar basis and therefore the

comparability of the same month, quarter and year with the

corresponding period of the prior year will be impacted by the

mix of days.

The number of weekdays, weekend days and timing of

holidays in a given timeframe can have a positive or negative

impact on comparable sales. The Company refers to this impact

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as the calendar shift/trading day adjustment. This impact varies

geographically due to consumer spending patterns and has the

greatest impact on monthly comparable sales. Typically, the

annual impact is minimal, with the exception of leap years.

• System wide sales include sales at all restaurants, whether

operated by the Company, by franchisees or by affiliates. While

sales by franchisees and affiliates are not recorded as revenues by

the Company, management believes the information is importantin understanding the Company’s financial performance because it

is the basis on which the Company calculates and records

franchised and affiliated revenues and is indicative of the

financial health of our franchisee base.

METHDOLOGY

This project is prepared with the help of

theoretical knowledge as well as practical

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knowledge & a crumb of advises & suggestions

from the concerned professors.

The theoretical pert taken from the various

books & magazines available on this subject. And

other recent happing in marketing is taken from

magazines & news paper.

As far as practical is concerned, all the

information about the companies information

available on net.

Overall this mission has been completed with the

combination of al those things & it had been with

the best of my facts & information.

BIBLOGRAPHY

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• BOOKS:-

BRAND PRACTICES.

• MAZINES:-

BUSINESS WORLD.

100 TOP BRANDS.

THE VALUABLE BRANDS OF INDIA.

• WEB SITES:-

www.mcdonaldsindia.com

www.mcdonalds.com

CONCLUSION…………

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http://www.mcdonaldsindia.com/

http://www.mcdonalds.com/

http://www.mcdonaldsindia.com/

http://www.mcdonalds.com/




TODAY, MCDONALDS HAS

GROWN TO 25,000 RESTAURANTS IN

ABOUT 120 COUNTRIES SERVING 50

MILLION CUSTOMERS DAILY.

BECOMING THE LARGEST FAST FOOD

CHAIN IN ALL OVER THE WORLD………

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B56




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21167331 Mcdonalds Project Report

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