ENTREPRENEURSHIP

PROJECT
PROJECT REPORT AND
MARKET SURVEY OF
MCDONALD’S

Name: Muskan Yeshmin Ali

Class:12-M
Roll no: 19
Admission no: 2010/2095
Session: 2023-2024
 ACKNOWLEDGEMENT
I express my sincere gratitude towards my teacher Sumona
ma’am who had given us the opportunity and space to explore
new avenues for the entrepreneurship project. Also, would like
to express my sincere gratitude to our principal who gave me
this golden opportunity. Thank you CBSE for providing us with a
platform to illustrate our creativities; my friends for their
unconditional support and cooperation. The book and websites
need special mention here as they laid the foundation to our
projects.
 FAST FOOD RESTAURANT
An INTRODUCTION

A fast food restaurant, also known as a quick-service restaurant

(QSR), is a type of restaurant characterized by its fast food
cuisine and minimal table service. It typically serves a "meat-
sweet diet" and is cooked in bulk in advance and kept hot. The
first fast food restaurants originated in the United States with
A&W in 1916 and White Castle in 1921. Today, American-
founded fast food chains such as McDonald's and KFC are
multinational corporations with outlets across the globe.
Variations on the fast food restaurant concept include fast casual
restaurants and catering trucks. Fast casual restaurants have
higher sit-in ratios, while catering trucks often park outside
worksites and are popular with factory workers. The modern
history of fast food in America dates back to July 7, 1912, with the
opening of the Automat in New York. Modern commercial fast
food is highly processed and prepared on a large scale from bulk
ingredients using standardized cooking and production methods
and equipment. Menu items are usually made from processed
ingredients prepared at a central supply facility and shipped to
individual outlets where they are cooked or assembled in a short
amount of time.
To ensure quick service and accuracy, many fast food restaurants
have incorporated hospitality point of sale systems. These
systems allow kitchen crew people to view orders placed at the
front counter or drive through in real time, and can operate on
computer networks using various software programs.

MCDONALD’S
AN INTRODUCTION
McDonald's Corporation (NYSE: MCD) is the
world's largest chain of hamburger fast food
restaurants, serving around 68 million customers
daily in 119 countries.
Headquartered in the United States, the company
began in 1940 as a barbecue restaurant operated
by Richard and Maurice McDonald; in 1948 they
reorganized their business as a hamburger stand
using production line principles.
Businessman Ray Kroc joined the company as a
franchise agent in 1955.
Ray Kroc subsequently purchased the chain from
the McDonald brothers and oversaw its worldwide
growth.
A McDonald's restaurant is operated either by
a franchisee, or an affiliate, 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 percent over the
three years ending in 2007 to $22.8 billion, and
9 percent growth in operating income to $3.9
billion.
McDonald's primarily sells hamburgers, cheese
burgers, chicken, French
fries, breakfast items, soft drinks, milkshakes
and desserts. In response to changing consumer
tastes, the company has expanded its menu to
include salads, wraps, smoothies and fruits.
In July 2011, McDonald's announced that their
largest restaurant in the world will be built on
the 2012 London Olympics site. The restaurant
will contain over 1,500 seats and is half the
length of an American Football field. Over 470
staff will be employed serving on average
(during the 2012 Olympics) 100,000 portions of
fries, 50,000 Big Macs and 30,000 Milkshakes.
This restaurant will overshadow the current
largest McDonald's in the world in Moscow,
Russia. In January 2012, the company announced
revenue for 2011 reached an all -time high of $27
billion, and that 2400 restaurants would be
updated and 1300 new ones opened worldwide.
 LIST OF PRODUCTS
McDonald's offers a variety of products, including
seasoned beef patties, signature menu items like the Big
Mac and Quarter Pounder with cheese, hamburger and
cheeseburger, double cheeseburger, McDouble, Daily
Double, Big N' Tasty, McFeast, and chicken, fish, and
pork.
The Big Mac is a signature menu item, featuring two 1.6-
ounce ground beef patties, special Big Mac sauce,
shredded iceberg lettuce, cheese, gherkin slices, and re-
hydrated onions on a toasted sesame seed bun. The Big
N' Tasty consists of a quarter-pound beef patty with
ketchup, mayonnaise, slivered onions, two dill pickle
slices, leaf lettuce, and one tomato slice on a toasted bun.
The Quarter Pounder is a 4-ounce ground beef patty with
ketchup, mustard, slivered onions, two gherkin slices, and
two slices of cheese. The Hamburger and Cheeseburger
is a 45 g ground beef patty with ketchup, mustard, a single
dill pickle, re-hydrated onions, on a toasted bun.
The Double Cheeseburger has two 45 g ground beef
patties, with ketchup, mustard, two slices of dill pickle, re-
hydrated onions, and two pieces of cheese on a toasted
bun. The McFeast is a hamburger with lettuce, tomato,
and mayonnaise, containing a quarter-pounder patty,
lettuce, and modified mayonnaise with lemon juice,
ketchup, onion, and tomato.
McChicken is a mildly spicy chicken sandwich made from
ground white meat chicken, mayonnaise, and shredded
lettuce on a toasted bun. Premium chicken sandwiches
include the Classic, Southern Style Chicken Sandwich,
Snack Wrap, Chicken Fajita, and Chicken McNuggets.
 CORPORATE OVERVIEW
McDonald's operates over 31,000 restaurants worldwide, serving
58 million customers daily. The company has divested from other
chains, including Chipotle Mexican Grill and Donatos Pizza, and
sold Boston Market to Sun Capital Partners in 2007. McDonald's
has increased shareholder dividends for 25 consecutive years,
making it one of the S&P 500 Dividend Aristocrats.
McDonald's restaurants offer both counter service and drive-
through service, with indoor and sometimes outdoor seating. The
"McDrive" concept, introduced in 1975, has separate stations for
placing, paying for, and picking up orders. McDonald's introduced
McCafé, a café-style accompaniment to McDonald's restaurants
in the style of Starbucks, in 1993. As of the end of 2003, there
were over 600 McCafés worldwide.
McDonald's has become emblematic of globalization, sometimes
referred to as the "McDonaldization" of society. The Economist
newspaper uses the "Big Mac Index" to compare the cost of a Big
Mac in various world currencies. Norway has the most expensive
Big Mac in the world, while India has the least expensive.
McDonald's has also contributed to the standard of service in
markets it enters, such as Hong Kong, where it consistently
offered clean restrooms. The company has also partnered with
Sinopec, the second largest oil company in China, to take
advantage of its market position.
 MARKETING MIX
The marketing mix of a company consists of the various
elements as follows which form the core of a company's
marketing system and hence helps to achieve marketing
objectives. The marketing mix of McDonald's is as follows:-

 Product: - McDonald's places considerable emphasis on

developing a menu which customers want. However, customers'
requirements change over time. In order to meet these changes,
McDonald's has introduced new products and phased out old
ones, and will continue to do so. McDonald's knows that items
on its menu will vary in popularity.

 Price: - The customer's perception of value is an important

determinant of the price charged. The danger of using low price
as a marketing tool is that the customer may feel that quality is
being compromised. It is important when deciding on price to be
fully aware of the brand and its integrity. In India McDonalds
classifies its products into 2 categories namely the branded
affordability (BA) and branded core value products (BCV).

 Promotion:- The promotions aspect of the marketing mix

covers all types of marketing communications .One of the
methods employed is advertising, Advertising is conducted on
TV, radio, in cinema, online, using poster sites and in the press
for example in newspapers and magazines. Other promotional
methods include sales promotions, point of sale display,
merchandising, direct mail, loyalty schemes, door drops, etc.
effective results. For example, TV advertising makes people
aware of a food item and press advertising provides more detail.
This may be supported by in-store promotions to get people to
try the product and a collectable promotional device to
encourage them to keep on buying the item. At McDonalds the
prime focus is on targeting children. In happy meals too which
are targeted at children small toys are given along with the meal.
Apart from this, various schemes for winning prices by way of
lucky draws and also scratch cards are given when an order is
placed on the various mean combos.

 Place: - Place, as an element of the marketing mix, is not just

about the physical location or distribution points for products. It
encompasses the management of a range of processes involved
in bringing products to the end consumer. McDonald's outlets
are very evenly spread throughout the cities making them very
accessible. Drive in and drive through options make McDonald's
products further convenient to the consumers.

 Other than the main four elements mentioned above there are
a few other elements too in the marketing mix, which are as
follows:- People:-The employees in McDonald's have a standard
uniform and McDonald's specially focuses on friendly and
prompt service.
 SWOT ANALYSIS
Strengths
 McDonald’s holds a very strong brand name
worldwide.
 They have large partnerships with other
companies that provide them with their desired
products; this increases the goodwill of the
company.
 McDonald’s is one of the most reputed firms
who are socially responsible.
 Loyal employees & management & customer are
their biggest strength.
 McDonald’s makes sure that cultural & regional
barriers are kept in mind while providing food
to different countries.
 Clean environment and play areas for childr en
where they can enjoy their time.

Weakness
 The weakness that hits the list of employee
turnover rate. Every year many of their
employees are fired out of the restaurant.
 McDonalds mostly advertises products and food
items that targets children.
 Health conscious people often complain that
they do not provide us with the organic and
healthy food. This becomes their weakness
when they get in the complaints.
 They also face quality issue at time s. This
affects the business as they are running the
outlet worldwide, if one franchise gets
affected others also get a bad name.
Opportunities
 It can open up online services for their
customers so that they can easily ord er their
desired meals sitting at home.
 Discounts given on every food item may help
them gain more customers.
 They can go for a joint venture with the
retailers they work with.
 They can introduce healthy hamburgers and
healthy drinks for the people who are health
conscious.
 In order to be environment friendly, they can
use packing material which can be recycl e later or
material that does not create pollution.
Threats
 Emerging competition of similar outlets is
becoming a problem for McDonalds.
 Health issue also becomes a problem when it
comes to food.
 As it is a multinational food outlet,
fluctuations in the currency of other
countri es becomes a problem for such
companies.
 Recession in any country would definitely
affect the whole outlet worldwide.
 People facing heart problems and obesity
accuse McDonalds for not providing them with
the healthy food .
 They have a threat of local food outlets in
different countries.
 McDonalds is operating in a fully fledged
economy where competition is increasing day by
day therefore they should work effectively to
overcome their drawbacks because of the
recession.
 SURVEY RESPONSE ANALYSIS
THE TOP FIVE REASONSWHY
MCDONALD’S IS SO POPULAR:
1. The System
This is the first thing that makes McDonald's so successful, by
having an effective and efficient system in place, which
exploits the minimum wage labour available, in the form of
young teenagers who are just looking to make some cash or
pick up fundamental job skills.
2. Convenience
The second reason why McDonald's is so popular is because
it's everywhere. There a McDonald's at every corner of the
map, at every major shopping centre, district, highway,
freeway, every place which attracts even, remotely m ore than
10 people, will have a McDonald's restaurant not too far from
them. McDonald's is having the best Real Estate locations
around the world which makes it so popular around the globe.
3. Likability and Familiarity
The Golden Arches, the Big M. Ronald McDonald, happiness
and fun; all these are the associations with McDonald’s which
makes it so familiar by being so familiar to all age groups and
to everybody.
4. The Menu
McDonald's has one of the most diverse menus, targeting all
ages from little kids to old pensioners, and everyone else in
between. There's Big Macs for the big kids and junior burgers
for the little. The menu's versatility is accentuated when they
introduced the "healthy tick" concept, which target t hose
people who wants to watch what they eat (even though it
doesn't make sense to go to a fast food restaurant to eat
healthy).
5. Consistency
The last reason is, McDonald's is so successful because of its
consistency. The expectations that we have abo ut everything
surrounding the store are fulfilled in almost every store
nationwide, worldwide. So everybody knows what they're
getting into before they come to McDonald's, and by being so
consistent, it has a solid reputation to uphold.

CONCLUSION
What started as a simple food stand on Huntington drive,
California in 1937, through the ages have become a billion
Dollar corporation and the world’s second largest fast - food
chain. When analysed, one would understand that
McDonald’s had a stable growth in the past years.
The credits of building it into one of world’s largest fast
food operation can be given to Ray Kroc who took over
McDonald’s from its establishers, modernised and expanded
it to suit the contemporary trend. Today McDonald’s has a
net worth of $15.15 billion. Through this project report and
market survey we saw the how McDonald’s was formed, its
history and the present position. We also its list of
various products offered and the corporate profile.
Through the marketing mix, we saw how they make use of
their product, price, place, promotion mixes. SWOT analysis
showed us the strengths and weakness of McDonald’s as
well as the opportunities and threats they have got.
The consolidated financial statement showed us the financial
position of the corporation as of 2011. The questionnaire
survey provided us with a clear picture of the needs, want
and expectations of the consumers of the fast food market in
general and McDonald’s in particular. The respondents also
rated the services provi ded by the corporation. At last we
also saw the top five reasons that make McDonald’s so
popular. I gladly hope that this project has met its aim.

Let me conclude by quoting this quote by Ray Kroc

"Perfection is very difficult to achieve, and perfectio n
was what I wanted in McDonald's. Everything else was
secondary for me."

BIBLIOGRAPHY
 www.google.com
 www.wikipedia.org
 www.macdonalds.com
 www.slideshare.net
 www.marketing91.com

THANK YOU