CASE STUDY ON McDonald’s

Team PandavaaZHardeep SinghSharad NidagundiJayateerth JoshiNitin KatweKeerti PatilJuana Fernandes

Facts • McDonald's Is The World's Leading Global Foodservice Retailer

With More Than 33,000 Locations Serving Approximately 64 Million Customers In 118 Countries Each Day.

• More Than 80% Of McDonald's Restaurants Worldwide Are Owned And Operated By Independent Local Men And Women.

• In India, McDonald's Is Managed By Two Indian Entrepreneurs. Amit Jatia, Vice Chairman, Hardcastle Restaurants Pvt. Ltd. Owns And Spearheads McDonald's Operations In West & South India.

Facts • Vikram Bakshi, MD And Joint Venture Partner, Connaught

Plaza Restaurants Private Limited, Owns And Operates McDonald's In North And East India

• McDonald's Now Has A Network Of Over 235 Restaurants Across The Country

• The Company Invested Six Years To Develop Its Unique Cold Chain

• India Is The First Country In The World Where McDonald's Does Not Offer Any Beef Or Pork Items.

How People Process & Physical Evidence Utilized

People• All the employees and staff members.• Providing Quality Employment And Long-term Careers.• Leveraging World Class-training Inputs To Create

Ambassadors Of The Brand And Creating Food Service Professionals With Global Attitudes.

• The Brand Currently Has Over 8000 Employees In India

How People Process & Physical Evidence Utilized

• Stars As Per Their Performance.• Gives Employees Larger Role In Decisions.• Philosophy Of Quality, Service, Cleanliness And Value Is The

Guiding Force Behind Its Service.• Fast Friendly Service.• Provides Clean, Comfortable Environment Specially Suited

For Families.

How People Process & Physical Evidence Utilized

Process• Supply Chain Is Three Tiered, Consisting Of Farms, Processing Plants,

And Distribution Centers.• The Company Has Selected The Farmers Who Can Meet Its Quality And

Supply Standards And Directly Sources The Produce From Them • Company Has Tied Up With Various Local Suppliers Like Vista Processed

Foods Pvt. Ltd. A Joint Venture Of OSI Industries Inc., USA, And McDonald's India Pvt. Ltd.

• The Next Level Of Supply Chain Activity Is The Distribution Of Processed Food To The Outlets.

• Transporting The Processed Foods To The Outlets Using Temperature Controlled Transport Vehicles.

• Foodland Provides Logistics Support To McDonalds By Providing Cold Storage Facilities.

How People Process & Physical Evidence Utilized

Process• Food Manufacturing Transparent To Customers.• Training To The Licensees.• Invented The Most Efficient Cooking Equipment.• New Methods Of Food Packaging And Distribution.• McDonald's In India Followed The Same Tradition.• Spent Rs. 50 Crores On Market Research.

How People Process & Physical Evidence Utilized

Physical Evidence• Creating A Right Ambience In Its Outlets. .• Positioned Its Outlets As A Restaurant That Caters To The

Typical Indian Family.• Physical Environment Reflected That Image With The

Atmosphere Being Informal And Bright.• Outlets Were Spacious For Kids To Play Around.• Families Had The Facility To Conduct Events Like Birthday

Parties.

How People Process & Physical Evidence Utilized

Physical Evidence• The Physical Evidence Appearance Affects Not Only The

Impression Outsiders Have Of A Business But All The Way That Business Functions.

• The Outlets Were Made Non smoking Zones To Reflect The Sensibilities Of Indian Families

• Staff Members. • Location & Appearance.• Buildings Maintenance.

Reasons That Have Contributed To The Increased Popularity Of Western Fast

Food Chains In India• Fast Food Is The Term Given To Food That Can Be Prepared

And Served Very Quickly.• Low Preparation Time Can Be Considered To Be Fast Food.• Served To The Customer In A Packaged Form For

Take-out/Take-away.• Franchise Operations Which Are Part Of Restaurant Chains

Have Standardized Foodstuffs Shipped To Each Restaurant From Central Locations.

Reasons That Have Contributed To The Increased Popularity Of Western Fast

Food Chains In India• The Capital Requirements Involved In Opening Up A Fast

Food Restaurant Are Relatively Low.• Common Menu Items At Fast Food Outlets Include Fish And

Chips, Sandwiches, Pitas, Hamburgers, Fried Chicken, French Fries, Pizza, And Ice Cream, Although Many Fast Food Restaurants Offer "Slower" Foods Like Chili, Mashed Potatoes, And Salads.

Reasons That Have Contributed To The Increased Popularity Of Western Fast

Food Chains In India• In 2006, The Global Fast Food Market Grew By 4.8% And

Reached A Value Of 102.4 Billion And A Volume Of 80.3 Billion Transactions. In India Alone The Fast Food Industry Is Growing By 40% A Year.

• The Growth In Nuclear Families, Particularly In Urban India, Exposure To Global Media And Western Cuisine And An Increasing Number Of Women Joining The Workforce Have Had An Impact On Eating Out Trends.

Reasons That Have Contributed To The Increased Popularity Of Western Fast

Food Chains In India• The Main Reason Behind The Success Of The Multinational

Chains Is Their Expertise In Product Development, Sourcing Practices, Quality Standards, Service Levels And Standardized Operating Procedures In Their Restaurants, A Strength That They Have Developed Over Years Of Experience In India.

Reasons That Have Contributed To The Increased Popularity Of Western Fast

Food Chains In India• Gender Roles: Gender Roles Are Now Changing. Females

Have Started Working Outside. So, They Have No Time For Their Home And Cooking Food.

• Customer Sophistication And Confidence: Consumers Are Becoming More Sophisticated Now.

• Paucity Of Time: People Have No Time For Cooking. Because Of Emergence Of Working Women And Also Number Of Other Entertainment Items.

• Double Income Group: Emergence Of Double Income Group Leads To Increase In Disposable Income.

Reasons That Have Contributed To The Increased Popularity Of Western Fast

Food Chains In India• Large Population: India Being A Second Largest Country In

Terms Of Population Possesses Large Potential Market For All The Products/Services.

• Relaxation In Rules And Regulations: With The Economic Liberalization Of 1991, Most Of The Tariff And Non Tariff Barriers From The Indian Boundaries Are Either Removed Or Minimized.

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