1. Mohammad Ali Jinnah University
(Karachi Campus)
McDonalds Pakistan
Submitted To:
Mr. Muddasir Hussain
A Report by:
Irfan Nizar (FA10-MB-0034) (CEO)
Zarfan Nizar (FA10-MB-0037)
Nazish Verteji (FA10-MB-0033)

3. Global Existence
McDonald's is the world's number 1 fast-food company
by sales, with about 32,000 restaurants serving burgers
and fries in about 120 countries. The popular chain is
well-known for its Big Macs and Chicken McNuggets.
Most of its outlets are free-standing units, but
McDonald's also has many units located in airports and
retail areas.

4. McDonald's History
In the late 1940’s, Dick and Mac McDonald were searching for a way to improve their little drive-in
restaurant business in San Bernardino, California , they invented an entirely new concept based upon
speedy service, low prices, and big volume.
The trademark design for the fast food was carefully studied and it came with a happy clown character
known as Ronald MacDonald (McDonald Corporation 2005).
When the new McDonald’s re-opened in December of 1948, business took a while to build. But it soon
became apparent that they had captured the spirit of post-war America. By the mid-1950s, their little
hamburger factory enjoyed annual revenues of $350,000 – almost double the volume of their previous
drive-in business at the same location.
Word of their success spread quickly, and a cover article on their operations in American Restaurant
Magazine in 1952 prompted as many as 300 inquiries a month from around the country. Their first
franchisee was Neil Fox, and the brothers decided that his drive-in in Phoenix, Arizona would be the
prototype for the chain they envisioned. The resulting red-and-white tile building with a slanting roof
and the “Golden Arches” on the sides became the model for the first wave of McDonald’s restaurants to
hit the country, and an enduring symbol of the industry.

5. McDonald's In Pakistan
• McDonald’s Pakistan is part of the Lakson Group of Companies, a
leading business house in Pakistan.
• McDonald’s first restaurant opened its doors to the people of
Pakistan in September 1998 in Lahore.
• Karachi opened its first restaurant a week after Lahore.
• There are now 22 restaurants in four major cities of Pakistan.
• 9 in Karachi
• 1 Sialkot
• 1 in Hyderabad
• 8 in Lahore
• 1 in Faisalabad
• 1 in Islamabad
• 1 in Rawalpindi

6. Some Facts and Figures
• Originated in 1940.
• World’s largest fast food chain.
• 6th in world’s top brands.
• Over 32,000 locations in over 120 countries
– 80% franchises
– 20% company operated
• 2010 3rd Qtr
– Revenues $6,304,900,000 (6.3 Bn)
– Net Income $1,388,400,000 (1.38 Bn)

7. Management Structure

8. Career Path at McDonald's Restaurant

9. Career Path For Office Jobs

14. Mission Statement of McDonalds
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.

15. Vision of McDonald’s
"To be the world's best quick service restaurant
experience. Being the best means providing
outstanding quality, service, cleanliness, and
value, so that we make every customer in every
restaurant smile."

16. SWOT Analysis

17. SWOT Analysis
Strengths
• Offer various products for each season
• Strong Customer Services
• Free home and office delivery
• Brand name of the Company / Brand Recognition
• Socially responsible (Charity)
• Peaceful environment of franchise
• The Homely Touch of the Highest Quality Standards at McDonald’s
• Separate play area for kids
• Strong Training Development
• Standardized quality products (Halal)
• Excellent Location (Airport, Parks)
• Provide nutrition information to customers
• Offer variety of new products
• Large number of loyal customers

18. SWOT Analysis
Weaknesses:
• No good employee retention policies
• Few options of eating healthy
• Drives-in service is not good
• Lack of innovative products
• Target group is low
• Price competition with the competitor resulting in low revenue
• Advertisement not attracting the entire people
• High employee turn over

19. SWOT Analysis
Opportunities:
• Introducing the new flavors and taste for health conscious people
• Capture market share globally
• Developing a Healthy Lifestyle program to attract health conscious customers
• It can adapt to the needs of the societies and undergo an innovative product line
• Growth of the fast food industry
• Market Potential-Growing market for fast food
• People's need or variety in the food and entertainment sector
• Ecommerce and Technology
• Opportunity to offered breakfast deal
• People's attraction towards promotional offers
• It can create new product offerings, use mobile text messaging to offer services
that appeal to consumers.

20. SWOT Analysis
Threaths:
• Change in the taste of the people
• Availability of substitute in the market
• Price range of competing product
• Health issues regarding the fast food chain
• Threat related to any chicken disease
• Political problems in the countries
• Poor performance in one outlet affects others
• Relation between dealer and franchiser
• Rising raw material process
• Negative advertising by competitors

21. External Factor Evaluation Matrix (EFE)
Key External Factors
TOTAL
OPPORTUNITIES WEIGHTAGE RATING RATING
Introducing the new flavors and taste for health conscious people 0.11 4 0.44
Capture market share globally 0.06 3 0.18
Developing a Healthy Lifestyle program to attract health conscious customers 0.03 2 0.06
It can adapt to the needs of the societies and undergo an innovative product line 0.08 1 0.08
Growth of the fast food industry 0.10 4 0.4
Market Potential-Growing market for fast food 0.04 2 0.08
People's need or variety in the food and entertainment sector 0.06 3 0.18
Ecommerce and Technology 0.04 1 0.04
Opportunity to offered breakfast deal 0.02 1 0.02
People's attraction towards promotional offers 0.09 3 0.27
It can create new product offerings, use mobile text messaging to offer services that
appeal to consumers. 0.01 2 0.02
TOTAL
THREATHS WEIGHTAGE RATING RATING
Change in the taste of the people 0.01 4 0.04
Availability of substitute in the market 0.04 2 0.08
Price range of competing product 0.09 2 0.18
Health issues regarding the fast food chain 0.02 3 0.06
Threat related to any chicken disease 0.01 4 0.04
Political problems in the countries 0.06 2 0.12
Poor performance in one outlet affects others 0.02 1 0.02
Relation between dealer and franchiser 0.06 3 0.18
Rising raw material process 0.02 4 0.08
Negative advertising by competitors 0.03 2 0.06
1.00 2.63

22. Conclusion (EFE):
Total weighted score of 2.63 shows that,
McDonalds is responding above average to its
external factors. They are trying to grab
maximum opportunities available there and
avoiding threats to their best.

23. Internal Factor Evaluation Matrix (IFE)
Key Internal Factors
STRENGTHS WEIGHTAGE RATING TOTAL RATING
Offer various products for each season 0.03 3 0.09
Strong Customer Services 0.09 4 0.36
Free home and office delivery 0.07 3 0.21
Brand name of the Company / Brand Recognition 0.05 4 0.2
Socially responsible (Charity) 0.02 4 0.08
Peaceful environment of franchise 0.03 3 0.09
The Homely Touch of the Highest Quality Standards at McDonald’s 0.09 4 0.36
Separate play area for kids 0.04 3 0.12
Strong Training Development 0.03 3 0.09
Standardized quality products (Halal) 0.05 4 0.2
Excellent Location (Airport, Parks) 0.08 3 0.24
Provide nutrition information to customers 0.06 3 0.18
Offer variety of new products 0.04 3 0.12
Large number of loyal customers 0.02 3 0.06
WEAKNESSES WEIGHTAGE RATING TOTAL RATING
No good employee retention policies 0.05 1 0.05
Few options of eating healthy 0.04 2 0.08
Drives-in service is not good 0.06 2 0.12
Lack of innovative products 0.02 1 0.022
Target group is low 0.02 1 0.02
Price competition with the competitor resulting in low revenue 0.03 2 0.06
Advertisement not attracting the entire people 0.02 1 0.02
High employee turn over 0.06 2 0.12
1.00 2.892

24. Conclusion (IFE):
Total weighted score of 2.892 shows that,
McDonalds has solid internal position and its
strengths are overcoming the weaknesses.

25. BCG Matrix

27. Conclusion – BCG Matrix:
The analysis of above BCG matrix depicts that
newly launch McSwirl is in Question Mark
quadrant because of its high growth but low
market share. Mcdonald’s McFlurry ice-cream
will appear as a Star due to their high market
share and sales growth. Ice-cream, Fries &
Different deals are Cash Cows products due to
their high market shares but low sales growth.
Tea, coffee and apple pie become Dog due to its
low market share and sales growth.

28. IE Matrix

30. Conclusion – IE Matrix:
The analysis of above IE matrix depicts that the
scores of 2.892 for IFE and 2.63 for EFE, position
McDonalds on 5th quadrant. This placement
suggests the company to hold and maintains its
position by adopting product development and
market penetration strategies. The above matrix
also shows that if the company slightly improves it’s
IFE and EFE scores then it will place under quadrant
1st, 2nd or 4th quadrant that suggest grow and
build strategy to the company.

31. Grand Strategy Matrix

33. Conclusion – Grand Strategy Matrix:
McDonalds has strong competitive position
against its major competitors but the current
market growth is slow hence we may place
McDonalds in the 4th quadrant of Grand
Strategy Matrix. This placement suggests the
company to adopt diversification strategies like
related diversification, unrelated diversification
& joint ventures.

34. Quantitative Strategic Planning Matrix (QSPM)
Strategic Alternatives
Diversificatio Market
n Development
Sr.# Key Factors Weight AS TAS AS TAS
OPPORTUNITIES
1 Introducing the new flavors and taste for health conscious people 0.11 2 0.22 1 0.11
2 Capture market share globally 0.06 - - 1 0.06
3 Developing a Healthy Lifestyle program to attract health conscious customers 0.03 - - - -
4 It can adapt to the needs of the societies and undergo an innovative product line 0.08 - - 2 0.16
5 Growth of the fast food industry 0.10 - - 4 0.4
6 Market Potential-Growing market for fast food 0.04 - - - -
7 People's need or variety in the food and entertainment sector 0.06 - - 4 0.24
8 Ecommerce and Technology 0.04 - - - -
9 Opportunity to offered breakfast deal 0.02 - - - -
10 People's attraction towards promotional offers 0.09 - - - -
It can create new product offerings, use mobile text messaging to offer services that appeal - -
11 to consumers. 0.01 - -
THREATHS
1 Change in the taste of the people 0.01 - - - -
2 Availability of substitute in the market 0.04 - - - -
3 Price range of competing product 0.09 - - 2 0.18
4 Health issues regarding the fast food chain 0.02 - - - -
5 Threat related to any chicken disease 0.01 - - - -
6 Political problems in the countries 0.06 - - - -
7 Poor performance in one outlet affects others 0.02 - - - -
8 Relation between dealer and franchiser 0.06 - - - -
9 Rising raw material process 0.02 2 0.01 - -
10 Negative advertising by competitors 0.03 - - - -
11 Change in the taste of the people 0.01 1 0.01 - -
1.00

35. STRENGTHS
1 Offer various products for each season 0.03 - - 4 0.12
2 Strong Customer Services 0.09 - - 3 0.27
3 Free home and office delivery 0.07 - - 1 0.07
4 Brand name of the Company / Brand Recognition 0.05 1 0.05 - -
5 Socially responsible (Charity) 0.02 - - - -
6 Peaceful environment of franchise 0.03 - - - -
- - -
7 The Homely Touch of the Highest Quality Standards at McDonald’s 0.09 -
8 Separate play area for kids 0.04 - - - -
9 Strong Training Development 0.03 - - - -
10 Standardized quality products (Halal) 0.05 - - - -
11 Excellent Location (Airport, Parks) 0.08 - - - -
WEAKNESS
1 No good employee retention policies 0.05 - - - -
2 Few options of eating healthy 0.04 - - - -
3 Drives-in service is not good 0.06 - - - -
4 Lack of innovative products 0.02 - - - -
5 Target group is low 0.02 - - - -
- -
6 Price competition with the competitor resulting in low revenue 0.03 2 0.06
7 Advertisement not attracting the entire people 0.02 - - - -
8 High employee turn over 0.06 - - - -
1.00 0.38 1.61

36. Conclusion (QSPM):
The analyses of QSPM matrix conclude that the
strategy of “Market Development” have more
weight-age i.e. 1.61 than the strategy of
“Diversification” have weight-age of 0.38.

37. Conclusion
McDonald’s represents the homogenization of the world due to its success over the decades in spreading its arches across
the globe. McDonald’s has provided millions of jobs throughout the world and participated in programs to improve the
community.
McDonalds understands that keeping the restaurants clean and well maintained is just as crucial as serving quality food.
McDonald’s believes in ensuring that it offers brilliant customer service and a safe, and a fun environment that
McDonald’s customers expect.
McDonald believes in keeping everything super clean and running smoothly. That is why all the employees are made to
work in such a way that McDonald’s image as a “Safe, and fun restaurant providing quality food”, is maintained.
McDonald takes extra care in the general and detail cleanliness of the restaurant and parking lot. It ensures daily filtering
to ensure quality products, along with maintaining offloads, check-in and organizing deliveries. It takes care of minor
equipment troubleshooting and repair. It ensures rooftop cleanliness and maintenance.
McDonald’s approach to supporting balanced, active lifestyles differs around the world, but its goals remain the same - to
continue to address the wishes of its customers by offering even more menu choice, providing access to user-friendly
nutrition education and information, supporting physical activity and communicating the importance of energy balance.
Children and families are valued customers of McDonald’s, and therefore McDonalds will continue to work hard to earn
and keep their trust with responsible communications and quality food.
As the needs and demands of the customers change, McDonalds will continue to evolve its approach and programs.
McDonald believes this will help its customers to continue to make McDonald’s a part of reaching their balanced active
lifestyle goals.