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2/26/2011
MCDONALDS RESEARCH ON THE MCDONALDS
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Group Members
Names Roll No
Ajit Nishad 325
Saumil Parihk 328
Manisha Peshwa 330
Aditya Rane 334
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ACKNOWLEDGEMENT
We would like to thanks Nandini Mamam forassigning such an interesting project
which has really explored our real talent and it helped us to make projects for our
professional life.
It has bee
nreally k
nowledge sh
arin
g experience to m
ake this project. We would
also like to thanks our parents who have helped us throughout our project. .This
project helped us to make better known what basically research and survey is.
Presented to ProfNandini
Maam
(SYBMM)
(Nagindas Khandwala College)
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OBJECTIVES OF RESEARCH
1 To know a bout the problems and challenges faced and facing by
company.
2 To identify what factors made the customers dissatisfied with
McDonald's and why it leads to allegations.
3 To know the views of people about McDonalds
4 What are the factors about Mc Donalds that makes customers happy and
dissatisfied?
5 To find the current corporate image of McDonald
6 To determine whether the statements McDonalds makes are part of
McDonalds
7 Is McDonalds serves a range of high-quality foods
8 Is McDonalds provide the right balance between the energy they
consume as food and the energy they burn in physical activity
.Methodology of this project
Foraccessibility and availability of information we have chosen to work on the
Most of the information used in this project is from primary Sources and
secondary data. The main source of information was the, survey, in depth
interviews and focus group discussion. In addition information was also
collected from websites.
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Research processes for McDonalds
Our research question isWhat are the factors about Mc Donalds that makes
customers happy and dissatisfied? Is McDonalds serves a range of high-
quality foods? To determine whether the statements McDonalds makes are
part of McDonalds? So we have for this in this way.
y Designing the study
y Sampling design
y Resource allocationand budget
y Valuing research information
y Pilot testing
y Data collection
y Analysis and interpretation
y Reporting the results
Designing the study:
The objective of our research is to find the the factors about Mc Donalds that
makes customers happy and dissatisfied. We have also planned for survey that is
street, in-depth interview which will be conducted on the basis of structured
questionnaires so that anything may not be missed. These techniques will be used
due to the followin
g ben
efits:
y It is the best way of data collection.
y Observation can be made
y Analysis of writtenand recorded material
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y Behavioral observation.
y Knowledge can be gained.
y Opinion can be taken.
And our source will be people and organization. Survey questionnaires will be
simple .it will be the mixture of open ended, close ended, forced, unforced and
rating scale. Simple wording should be employed .survey will be evaluated on the
basis of following factors:
y Cost
y Sample accessibility
y Time constraints
y Topic coverage
Sampling design:
Sample will be selected as college and residential area for survey and face
to face discussion. So that accurate results can be attained
Resource allocation:
Valuing research information:
Without information our work will be on imagination based that may be
wrong and can bring high cost of loss for us .We can make wrong hypothesis
which will be not consistent .our result may be wrong much.
So with information our observation will be more .our results will be real
and our research will be authenticated so real data will be used through different
techniques of research. Our experience will be high for future plans. Our exposure
will be high.
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Data collection:
Data will be collected through survey by using in depth interview will be
conducted for detailed information to know much a bout the subject .McDonalds
websites and considering the information onnet.
Analysis and interpretation:
Analysis of the data will be managed carefully by taking percentages of
favorable and unfavora ble results. Then summary of data will be presented by
using statistical techniques. Than the result will be made after interpretationand
can check whether the results are consistent with hypothesis ornot.
Pilot testing:
Pilot testing will be employed to check the weaknesses in designand
instrumentations. We will see whether the questionnaire is simple or complicated?
Whether the questions are the mixture of forced or unforced? Whether all the
questions are based on structured or not? Whether the objective is clear or not?
Whether hypothesis is clea
rly chosen
? In
ca
se of the fa
ilure ofn
ull hypothesis,what alternative hypothesis will be selected?
Reporting the results:
At the end report will be prepared in which we provide
all the information in this pattern:
y An executive summary
y An overview of the research
y Implementation strategies
y A technical appendix
y Attachment of survey questionnaires
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.
Introduction of McDonalds
The first McDonald's was built in 1940 by the McDonald brothers (Dick and
Mac) McDonald's Corporation is the world's largest chain of hamburgerfast
food restaurants, serving more than 58 million customers daily.[4]
Inaddition to
its signa
ture resta
uran
t cha
in
, McDona
lds Corpora
tion
helda
min
ority in
terestinPret A Mangeruntil 2008, was a ma jor investor in theChipotle Mexican
Grill until 2006 and owned the restaurant chainBoston Market until 2007
Started offas a hot dog stand in CA [1937]
The McDonald brothers realized that hamburgers were their most profitable
menu item, and changed their business to serve a limited menu.
The majority of the restaurants are owned through franchises
AMcDonald's restaurant is operated by eitherafranchisee, anaffiliate, or the
corporation itself. The corporation's 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.
McDonalds is a large corporation in the fast food industry.
They have beenaround since 1955 when Ray Kroc started the chain of
McDonalds. They have been growing ever since.
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QSC&V......The Foundation that built McDonald's success
Whenasked to explainMcDonald's success, founder Ray
Kroc used to say, "We take the hamburger business more
seriously thananyone else."
Kroc was a perfectionist. From the day he opened his first
restaurant, he vowed to give his customers high quality
products, served quickly --and with a smile, ina cleanand
pleasant environment, and all at a fair price. Quality,
Service, Cleanliness and Value (QSC&V) became the
philosophy that drove McDonald's business.
McDonald's Quality Management instills the culture of quality through such
principles as being customer driven, managing with facts, valuing people, and
continually improving every aspect of our business
Service that is fast and friendly and has always beena foundation for success at
McDonald's
Cleanliness for us means having the cleanest and freshest facilities from the
kitchen to the rest rooms and parking lots
Valueat McDonald's means the total experience...... great food, friendly folks, a
clean environment, quickand accurate service and fun!
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Going International
1971 McDonalds really starts going global
Asian: Tokyo Ginza District, Japan
European: Netherlands, Munich, Germany
1967 - Canada & Puerto Rico (first restaurants outside the U.S.)
1971 - Tokyo, Japan, Amsterdam, Netherlands & Sydney, Australia
1979 - Rio de Janeiro, Brazil
1990 - Moscow, Russia & China
The first McDonalds Drive-Thru opened in SierraVista, Arizona in 1975
Happy Meals were added to McDonalds menu in 1979
McDonalds launched the new worldwide Balanced Active Lifestyles public
awareness campaign in 2005
McDonalds celebrated its 50th Anniversary onApril 15, 2005
They employ 447,000 people.
They have over 3,200 restaurants in over 119 countries.
The majority of the McDonalds franchises are owned by individual
franchises.
Their primary competitors are other fast food chains such as Burger King
and Wendys. The competition can get pretty intense to build customer
loyalty to their food.
McDonalds has 132 restaurants in India of which 79 are inNorth & East
Indiaand 53 inWest & South India.
The McDonalds Brand is one of the most well known Brands in the world.
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SWOT Analysis of McDonalds
Strengths
y Huge target market
y Commercial area
y Perfect location
y Quality foods
y Friendly services
Weakness
Disposing waste
Management of service
Opportunities
Newer products
More franchises - less risk
Job opportunities
Scope for expansion
Threats
Strong competitors, Competition - global, national, regional, and local.
Commodity
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Growing health conscious population
Food safety bacteria, e. coli, 41 -150
Pest Analysisy Political
y Ecological/environmental issue
y Fast food industry giants such as Wendy's, Pizza Hut, and McDonalds are
some of the largest consumers of paper products in the US. "Every year
millions of pounds of food packaging waste litter our roadways, clog our
lan
dfillsan
d spoil our quality of life.
y International pressure-groups
y Pushing for increased regulations to make companies more responsible
y Wars and conflicts
y war between countries where the company operates.
y They have also become a symbol of capitalism and Americanism meaning
that they have now become the target of terrorist group and attack.
Economic
y McDonalds must consider economic challenges when expanding
internationally.
y
y Low set up costs = rapid expansion
y One of the challenge for fast food industry is that to keep the price is
low for the customer.
y
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y Franchising facilitates set ups
y McDonalds corporation provides financing assistance and training fornew
franchise owners to manage cash flow and keep businesses profitable.
y The main reason is the consumers worries had greatly increased with
health fears so customers now opted for more healthier options like
subway which offered more ofavariety for health conscious customers
Social ChallengesThe consumers worries had greatly increased with health fears.
Social ConsiderationMcDonalds changed its image vastly by evaluating the menu.Range of high-quality foodsEmphasis on food safety
Technological Advantages
McDonalds has takenadvantage of technology to streamline their processesand improve efficiency.
Touch OrderAllows You To Place OrderAt McDonalds Via Handset
McDonalds has also implemented technology to improve supply chainmanagement, and allows customers to access this information to make moreinformed decisions about what they eat.
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Results of survey
y Nearly 70% of the respondents had visited McDonalds within 90 days
on the moment they filled in the questionnaire.
y The average age of the participants is 25,7 with a minimum age of 19
and a maximum age of 56 years.
y When asked what distinguishes McDonalds from other members of the
food industry, the three most important factors were speed,
predictability and convenience
y The main reason for visiting McDonalds for 60% of the sample was to
have diner.
y When visiting McDonalds, the most frequently placed order of half of
the respondents was a menu that 16 out of 22 respondents did not agree
with the statement that McDonalds serves a range of high-quality foods
y Almost 70% of the sample states that McDonalds has the responsibility
to inform its customers on health related issues
y It must be noted that none of the respondents completely agreed with
the statement that McDonalds serves food that can fit into a balanced
diet.
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y A possible explanation is that corporate image related research is
mostly a matter of the company
y It seems that McDonalds has no need to bear this responsibility
according to the majority of its customers. None of the respondents
completely agreed with the statement that McDonalds serves food that
can fit into a balanced diet.
McDonalds Strategies
McDonalds real goal as a corporation is to make money for thestockholders. Their stated goal is Long term sustainable growth forallstakeholders.
McDonalds has realized that they are reaching a big maturation stage in thebusiness cycle, based on its profits slowing down more and more every year.It is going to be time to reinvent or re-image this corporation to try to startthe business cycle overagain.
Recommendations for McDonalds
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Recommendations for McDonalds
More Healthy Choices
McDonalds should develop menu choices that are healthy
and socially acceptable. It is possible to develop a menu that people will enjoy
and that also fits into the original Speedy Service
model the company introduced in the 1950s. Use local food sources where possible.
Using local sources decreases the time to
market, and also decreases the use of fuel to
transport goods. Locally focused menu choices
McDonalds in India has specific menu items For the vegetarian market;
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Questionnaire on McDonalds
1. When was the last time you visited McDonalds?
2. How frequently do you visit McDonalds?
Onaverage every ....... month(s).
3. For what meal(s) do you mostly visit McDonalds?
Breakfast Diner
Lunch In between
4. What is your most frequently placed order?
Menu Menu + supersize
Only burger Only beverage
Only salad Only fries
5. McDonalds distinguishes itself by:
(Several answers possible)
Taste Cleanliness
Convenience Speed
Predicta bility Healthiness
Provision of choice Friendly staff
6. McDonalds serves a range of high-quality foods.
7. McDonalds serves food that can fit into a balanced diet.
TotallyAgree PartiallyAgree
NeitherAgree or Disagree Partially Disagree
Totally Disagree
Personal InformationName
Age
Level ofeducation
Within the last 7 days Within the last 30 days
Within the last 90 days Longer than 3 months ago
Totally Agree PartiallyAgree
NeitherAgree or Disagree Partially Disagree
Totally Disagree
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8. McDonalds helps people achieve the right balance between the energy they consume
as food and the energy they burn in physical activity.
TotallyAgree Partially Agree
NeitherAgree or Disagree Partially Disagree
Totally Disagree
9. According to you what are the negative points of McDonalds?
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10.McDonalds leads the fast food industry on the well-being issues.
TotallyAgree PartiallyAgree
NeitherAgree or Disagree Partially Disagree
Totally Disagree
11.McDonalds has a responsibility to inform its customers on health related issues.
TotallyAgree PartiallyAgree
NeitherAgree or Disagree Partially Disagree
Totally Disagree Totally Disagree
12.Which factors are important to McDonalds customers?
Taste Cleanliness
Convenience Speed
Predicta bility Healthiness
Provision Staff
You have reached the end of the questionnaire, thank you for your participation.
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