McDonald’s Pakistan

I ’m lovin’it

Vision: To be the world's best quick service restaurant experience. Being the best means providing

outstanding quality, service, cleanliness and value, so that their food makes every customer in

every restaurant smile

Mission:McDonald's mission is to be their customers' favorite place and way to eat with inspired people

who delight each customer with unmatched quality, service, cleanliness and value every time

About McDonald’s :

Aiming to be the world's best quick service restaurant experience, McDonald's started its

operations in Pakistan in 1998 and is a leading fast food service retailer for its valued customers.

With a strong belief in the phrase when it's green it's growing, McDonald's Pakistan is growing

with the focus to provide friendly and quick service restaurant experience to their customers.

Currently McDonald's Pakistan is operating in various cities of Pakistan I-e Lahore, Faisalabad,

Karachi, Hyderabad, and Islamabad & Rawalpindi with the plans to cover the customer base in

various other cities of the country.

McDonald's Pakistan is a part of the Lakson Group of Companies, with a regional office in

Lahore and the main Head Office in Karachi. They are operating with a network of restaurants to

reach our customers for providing friendly services in all different regions of the country.

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McDonald's a Global Phenomenon :

Formed in 1954, McDonald's brand is the leading global foodservice retailer with more than

30,000 local restaurants serving nearly 50 million people in more than 120 countries each day.

Its rich history began with the founder Ray Kroc's vision and his commitment, transformed in

their talented executives, and will keep the shine on McDonald's arches for years to come.

Core Values of McDonald’s :

Integrity and Honesty

Open, Respectful and Supportive

Prepared to take challenges and see them through

Deep regards for Customers, Business partners and employees

Quality in Product

Quality:McDonald’s is very strict about the quality of services they provide. They don’t compromise

anything over quality. Quality is considered to be one of their foremost objectives. They want

100 % quality of service. Quality is checked on for:

High standard of food, services provided to the customers.

Communication skills i.e. English speaking skills

Appearance and grooming

Ability to communicate with guests and handle versatile situations.

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McDonald’s Business Infrastructure

Responsibilities and Activity of Branch office Managers

1. Team Leader-team leader who leads and give order and work to all managers

2. Crew Chief- crew chief who leads all frontline employees and distribute their duty and

set time schedule of them.

3. Floor Manager -'Floor management' includes managing staff who give services to

customers and allocate the duties of opening and closing restaurant. The manager is

responsible for making sure his or her staff is following the service standards and health

and safety regulations. The manager is the most important person in the front-of-the-

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Head office

Regional

Office

Branch

Office

house environment, since it is up to him or her to motivate the staff and give

them job satisfaction. The manager also looks after and guides the personal

well-being of the staff, since it makes the work force stronger and more profitable.

4. Kitchen Manager-'Kitchen management' includes the managing staff working in the

kitchen. The kitchen is the most important part of the business and the main reason

customers patronize the restaurant. Managing the kitchen staff helps to control food

quality. As most commercial kitchens are a closed environment, the staff may become

bored or tired from the work. Without proper management, this often results in an

inconsistent food product

5. Restaurant Manager- restaurant manager who is the head of floor manager, kitchen

manager, crew chief and also employees.

Activity of McDonald’s Employees/ works

In McDonald’s we see Activity of all Employees

Frontline Employee-In McDonald’s there are 4 counters and frontline employees

operate that counters and deal with customers and the end of the day they count per product

sale amount and total amount of the sale. Simple format is given below-

Product Name Sales Amount Grand total

Happy Meal 5000 100000 100000

Cold drinks 5000 150000 150000

Ice cream 9000 270000 270000

520000

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All works are doing manually and the frontline employees give this report to the

restaurant manager.

Restaurant Manager–restaurant manager take all counters reports from the

frontline employees, he checks all the reports and by mail he give this report to the regional

office and head office.

Flowchart of report moving

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Frontline employees

Branch Office Manager

Regional Office Manager Head office Manager

Our Philosophy:."We take the burger business more seriously than anyone else." When McDonald's founder, Ray

Kroc made that memorable statement, he was letting the world in on the philosophy and secret

behind McDonald's phenomenal success.

Our vision to be Pakistan "best" quick service restaurant experience is supported by a set of

principles and core values [McDonald’s Way]

The principles that guide us …

Quality, Service, Cleanliness & Value - It is an unflinching McDonald's ideology that

our customers must always get quality products, served quickly and with a smile, in a

clean and pleasant environment; and all at a fair price

We are committed to exceeding our customers' expectations in every restaurant every

time.

We have a passion and a responsibility for enhancing and protecting the McDonald's

brand.

We believe in a collaborative management approach, employing a mutually respectful

business philosophy,

We will seize every opportunity to innovate and lead the industry on behalf of our

customers.

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Data Mining Introduction:

Data mining, the extraction of hidden predictive information from large databases, is a powerful

new technology with great potential to help companies focus on the most important information

in their data warehouses. Data mining tools predict future trends and behaviors, allowing

businesses to make proactive, knowledge-driven decisions.

Most companies already collect and refine massive quantities of data. Data mining techniques

can be implemented rapidly on existing software and hardware platforms to enhance the value of

existing information resources, and can be integrated with new products and systems as they are

brought on-line

The Foundations of Data Mining:

Data mining techniques are the result of a long process of research and product development.

This evolution began when business data was first stored on computers, continued with

improvements in data access, and more recently, generated technologies that allow users to

navigate through their data in real time. Data mining takes this evolutionary process beyond

retrospective data access and navigation to prospective and proactive information delivery. Data

mining is ready for application in the business community because it is supported by three

technologies that are now sufficiently mature:

Massive data collection

Powerful multiprocessor computers

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Data mining algorithms

What can data mining do?

Data mining is primarily used today by companies with a strong consumer focus - retail,

financial, communication, and marketing organizations. It enables these companies to determine

relationships among "internal" factors such as price, product positioning, or staff skills, and

"external" factors such as economic indicators, competition, and customer demographics. And, it

enables them to determine the impact on sales, customer satisfaction, and corporate profits.

Finally, it enables them to "drill down" into summary information to view detail transactional

data.

Data mining consists of five major elements:

Extract, transform, and load transaction data onto the data warehouse system.

Store and manage the data in a multidimensional database system.

Provide data access to business analysts and information technology professionals.

Analyze the data by application software.

Present the data in a useful format, such as a graph or table.

Data Mining is based on mathematical algorithm and analytical skills to drive the desired

results from the huge database collection.

What technological infrastructure is required?

Size of the database: the more data being processed and maintained, the more powerful

the system required.

Query complexity: the more complex the queries and the greater the number of queries

being processed, the more powerful the system required.

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Data Mining Importance in Today’s Corporate Industry:

Data Mining is largely used in several applications such as understanding consumer

research marketing, product analysis, and demand and supply analysis,

telecommunications and so on.

Data mining software enables users to analyze large databases to provide solutions to

business decision problems.

Data mining is a technology and not a business solution like statistics. Thus the data

mining software provides an idea about the customers that would be intrigued by the new

product.

Data Mining therefore has arrived on the scene at the very appropriate time, helping these

enterprises to achieve a number of complex tasks that would have taken up ages but for

the advent of this marvelous new technology

Stages of Data Mining:Exploration is the first stage, and as the name implies, you will want to explore and prepare data.

You may need to clean the data you have, or it may need to be transformed into another form. In

addition to this, you may also need to create records. If you have a large number of variables to

consider, you may need to reduce them to a range that is easy to deal with

After you've explored, refined, and defined specific variables, you will next want to move on to

stage 2, which is also called pattern identification. The first thing you will want to do is look for

patterns and choose one that will allow you to make the best predictions. For example, if you are

looking at data to find patterns that will allow your store to earn more profits, you could take two

shopping patterns of your customers and apply them to a hypothetical strategy to determine

which one performs the best.

The third stage is called deployment. You will not want to move to this stage until you have

found a consistent pattern from stage 2 that is highly predictive. For example, if you find that

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many of your customers are consistently buying a specific product on a certain date,

you will be able to predict their future behavior. Now that you've done this, you can

take the pattern and apply it in order to see if you can achieve the desired outcome.

How McDonald International Applies Data miningMcDonalds is having database for management of data. The data is used for

The sales data predicts the total sales of the products for the whole day.

The products with higher sales are used for advertisement of the product with higher

demand.

The data can also the inventory management

The availability of raw material in the stock

The database containing data of employees are used for hiring the right people

In case of shortage of employees the database is used to select CV meeting the criteria

and the right person is employed.

The data is used to know the total number of employees employed.

The data is also used to find employees who need the training.

The data is used for pricing the products

The data is used to find out the competitors share in the market and the products of the

competitors which are most liked by the users.

The data is used to find tactics to capture market.

McDonald Pakistan:

Currently McDonald Pakistan is not using data mining they hire external companies to do survey

regarding the customer taste and satisfaction. Every time new surveys are conducted is

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conducted to know the customer taste and affordability. McDonald Pakistan is using

simple data base at counter to know the sales.

Database at Counter:

The data base shows the over all sales of the day .The menu is available in the data base which

sows the pricing of each product

Inventory Management:

The data base shows the inventory available on hand, on shipment and the recorder point

Inventory on hand:

The software shows the over all inventory in the store that how much amount of material

is available in the stock room.

Shipment inventory:

McDonald requires some material from out side sources through shipment .The material is

sent through shipment .The material contains some specific flavors or material that makes the

product of McDonald Pakistan Similar to the standard of McDonald international.

Reorder point:

The software indicates the reorder point that at which point the next order is to be made.

New Equipment:

McDonald uses the latest equipment to reduce the cooking period. At specific intervals

they purchase new machines that reduce the making of food.

Sales Management:

McDonald software contains the data regarding the over all sales of the whole day. This data

helps in knowing which product has the highest sales during the day.

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Advertisement of the products:

According to the sales data base McDonald advertise for their products for example happy

meals are like day the children’s McDonalds so emphasis on targeting the children’s through

their ads. People like McDonald Ice cream and sakes so these products are advertised more.

Surveys conducted by Companies:

McDonalds usually depend on research companies who conduct surveys For McDonald.

Consumer taste:

Surveys are conducted for launching of a new product by Companies who tell McDonald

that what are the consumer demand as in Pakistan people prefer eating beef or mutton

products more as compared to chicken products. But McDonald chicken products are

more in demand

Service delivery:

Surveys are conducted to know that is people are having any problem related to the

service delivery of McDonald are people are satisfied which the current service or do

they need any change in the physical area where service is been made

Food Delivery:

Surveys are conducted to know that where people are satisfied by the food stuff do they

need any change in the menu. As in summers McDonald offers Milk shakes as people more

like to drink shakes.

New product Launch:

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For launching of a new product surveys are made then the product is been tasted

by the internal employees also there are permanent customers of McDonald

whose database is been made McDonald personally invite them to taste the new product.

Competitors Market Share:

McDonald main competitors are Pizza Hutt and KFC they make survey that what are their

competitors are offering to the customers as well as their pricing strategy .Pizza Hutt

hygienic standards are good as compared to mcdoanld.KFC is direct competitor of

McDonald.

Food Hygiene:

McDonalds maintained the performance standard for food they have standards for food and

service.

Standards at McDonald:

At McDonald its always like coming home .We make sure that the warmth of our homely touch

reaches your highest expectation. Be it food, service or the ambience we keep evaluating our

quality standards to new levels McDonald has implemented rigorous food standards called “from

farm to restaurant”.

MEAT with 100% purity:

100% purity is the reason why all beef sandwiches taste so delicious. Chicken that

McDonald serve is carefully deboned breast meat only, with seasoned batter and a choice

of sauce portion.

High Quality baked Buns:

McDonald sources buns from suppliers who use high quality wheat. All buns are subject

to strict quality control.

Crunchy Farm –Fresh Vegetables:13

McDonald selects the best of the best vegetables that are continually

monitored for freshness, high nutrients and safety to maintain top quality

standards.

No Compromise:

McDonald gives high importance to smallest to detail, from meat to species and every

thing is standardized. McDonald follow global set standards with no compromise right

from the farm to the restaurant till the time it is being served.

High Energy Wholesome Dairies:

For McDonald cheese, shakes, Mcflurry and sundaes McDonald ensure that fresh milk

come from approved regional and local suppliers. Quality control procedures are follows

through out the supply chain.

Fries –Naturally Crisp:

The secret lies in the harvesting of high quality potatoes that come from trusted suppliers

the potatoes are then cooked using 100%vegetable oil with no flavors or fats only some

salt is added after cooking.

All Safe ‘N Sound:

HACCP (hazard analysis and critical control point) is applied to keep food safety

absolute from point zero till the tome it is served to the customers.

The ERP Model used in McDonald : 14

ERP plays the important role of running system on front. Whatever decision

are made, mostly are through the system of ERP. ERP is supported by various

other supports. This is the place where major decision making and their execution takes

place.

EDI (Electronic Data Interchange) consists of direct computer-to-computer

transmission among multiple firms of data in a machine readable, structured format.

AMS (Attendance Monitoring System) is required for personal planning of the

employees in the organization. It also helps in availability and scheduling.

CAD/CAM/CAE (Computer Aided Design/ Computer Aided

Manufacturing/ Computer Aided Engineering). This system handles the

design, manufacturing and engineering functions in the organization. This provides

drawing and design engineering information to ERP in the execution of manufacturing

and purchase functions

DMS (Document Management System). This system helps in keeping important

document for viewing at later times. For the purpose of transaction handling this system

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some time have a facility of document modification, by giving text-editing

facility

CMS (Communication Management Systems). The ERP uses CMS as a tool

for all its communication needs of recording an event. This system is used for tracking

the important resource for action.

SMS (Security Management System). This system handles the security, entry

access requirement of business operations.

ERP System:

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ERP software is a family of software modules that support the business

activities involved in these vital back-office processes.

For example, ERP software for a manufacturing company will typically track the status

of sales, inventory, shipping, and invoicing, as well as forecasting raw material and

human resource requirements.

Enterprise Applications/ Packages/ Suites/ Systems connects all of the information,

which flows through a company to a single integrated set of systems.

This is implemented in modules, which can be integrated.

ERP may work with a wide variety of databases, hardware, and operating systems.

Leading Vendors of ERP are SAP, Oracle.

Originally. ERP packages were targeted at the manufacturing industry.

Their goal is to integrate information across the company and eliminate complex links

between computer systems.

The architecture is client/server and uses OO methodology for design and development of

whole system.

Key advantage of ERP is that it provides an integrated solution for all the requirements of

the business.

It takes care of organizational hierarchy of authorities

Basically ERP solutions are based on Unix and Windows NT platform.

A typical ERP solution has following modules: -

Marketing, Distribution and sales

Manufacturing process17

Accounting and finance

Personal management

Planning and control

Purchase and inventory

The modules are designed for following purposes: -

Data capture from transactions

Data transaction validation

Analysis

Updating and reporting of accounting

ERP Benefits:

ERP offers lots of benefits to the implementing organization.

It helps for a manager to make decision at the right time.

This is possible when entire organization is sharing information and interprets in same

perspectives.

The benefits of ERP can be classified in two categories: -

Tangible benefits (Those which can be measured in one form or other)

Intangible benefits (Difficult to measure in absolute terms)

Reduction of lead-time

The elapsed time between placing an order and receiving is known as the lead-time.

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In order to reduce lead-times, the organization should have an efficient

inventory management system.

This inventory system is integrated with the purchase, production planning and

production department.

The ERP systems help in automating this task and thus make inventory management

more effective and efficient.

Doubled business

Increase of inventory turn to over 30%

Cycle time cut to 80% :

Cycle time is the time between receipt of the order and delivery of the product.

Make –to – order

Make –to – stock

Going Live

The old system is removed and the new system is used for doing business.

Data conversion is done, databases are up and running.

Prototype is fully configured and tested and ready to go operational. So the system is live.

Conclusion:

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From the overall analysis of the database management system we conclude that

McDonald Pakistan should have its own database instead of going for research

companies to do research on their behalf. As McDonald is operating in only five cities of

Pakistan it has to do research if they want to open in other cities as the consumer taste various

according to every city. It will reduce its cost also

Suggestion:

We give some suggestions to McDonalds, the suggestions are

Provide access to information form any where any time.

Head office management and regional office management access to the proposal for

status monitoring and tracking.

Create a business management database/data warehouse that is useful to management ,

sales managers

Besides real time online systems develops data mining application for strategic

management of business.

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