Consultancy Project Report

McDonalds
By

Haroon Zahid Qureshi

CIIT/FA14-EMBA-207/CVC
Masters in Business Administration
(Executive)

COMSATS Institute of Information Technology

Virtual Campus Pakistan

INTRODUCTION
OVERVIEW OF FAST FOOD INDUSTRIES
The food industry is on a high as Indians continue to have a feast. Fueled by what can be termed
as a perfect ingredient for any industry - large disposable incomes - the food sector has been
witnessing a marked change in consumption patterns, especially in terms of food. An increasing
number of international fast food chains rushing to India is because all of them see tremendous
potential in for this type of business. The large upwardly mobile population in the urban areas
tend to eat out more often or business or for leisure.
The various players operating in India are the well-established Indian chains like Nirula's,
Haldiram's and multinational companies like McDonalds, Pizza hut, Domino's pizza, etc.
In addition to these, apparently some of the best known international food chains are looking at
India. Among them are Great American Disaster, The Burger King, Mexican food chain
Tacogrill, Move-n-pick, etc. are some of them to name.
The players are fighting on products, pricing, positioning and trying to convert their first trials
into regular purchase by providing delightful service quality. The focus is on product quality and
standardization on taste. Consistency is the key, as its standardization in fast food as the
consumer is short on time and wants to satisfy his taste buds with a consistent taste experience.
Beyond this each player has its own strategy to expand consumer base.

Some feel that pricing is not the deciding factor since fast food is not price
sensitive market because it is not a single diet of Indians.

Some others are competing on positioning which is surprisingly varied, giving the
small size of the market.

For most, targeting children seems the right strategy.

Advertising is popular.

However, with competition hooting up most chains are increasing reach as well as working on
establishing a national presence. The wind of change is blowing through the empire of fast food.
The vision of endless growth through new markets across the planet for fast food companies now
looks unsustainable when its time to adapt or die. As the fast food companies have expanded
around the world, they have had to adapt to local sensitivities.

The aim of this project is to conduct a market study on a thriving fast food
restaurant, going deep into its formation, history and growth; then to
analyze the reason that make it so popular.
MCDONALDS AN INTRODUCTION
McDonald's Corporation 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. He subsequently
purchased the chain from the McDonald brothers and oversaw its worldwide growth.
A McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself. The
corporation's revenues come from the rent, royalties and fees paid by the franchises, 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, cheeseburgers, 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 fruit.

BUSINESS MODEL:
Franchise Model Only 15% of the total number of restaurants are owned by the Company.
The remaining 85% is operated by franchises. The company follows a comprehensive
framework of training and monitoring of its franchises to ensure that they adhere to the
Quality, Service, Cleanliness and Value propositions offered by the company to its
customers.

 Product Consistency By developing a sophisticated supplier networked operation and

distribution system, the company has been able to achieve consistent product taste and
quality across geographies.
Act like a retailer and think like a brand McDonalds focuses not only on delivering sales
for the immediate present, but also protecting its long term brand reputation.
2. Objectives of Studying the Organization
The McDonalds main objective is to provide its customers with food of a high standard, quick
service and value for money. They also provide good returns to shareholders.
Evaluating the objectives
McDonalds must set objectives in order to meet the aims of the business. A business objective
needs to be SMART objectives. SMART is an acronym which stands for specific, measurable,
achievable, and relevant and time specific.
Specific:
The business can make objectives to achieve their targets at the end of the year. The specific is
important in the business plan to find out what kind of specific targets McDonalds needs to
make. For example, McDonalds might set an objective of serving at least to per cent of singleorder customers within a minute of the order being placed.
Measureable:
The objective needs to be measured so that managers can see whether it has been achieved. For
example, McDonalds could measure service times during a typical one-hour period and record
the number of times single-order customers were served within a minute of placing their order.
Achievable:
The objectives should be achievable. McDonalds have to make sure that they have different
taste foods and serve the food as fast as possible. The manager of the McDonalds needs to
assess whether it is feasible for employees, if they work efficiently to serve single-order
customers within a minute of the order being placed.
Relevant to the aims:

The objectives are very important to achieve the aims of the business, without making customer
happy they will not be able to make the profit that they want to make. So the business wont be
able to grow. For example, by setting an objective to serve customers quickly, the McDonalds
hopes to increase its profits by attracting and serving more customers.

Time:
The objectives should set with start and finish dates. For example, McDonalds manager might
tell the employees that they have one month to achieve the one minute service time objectives.
The key objective of McDonalds is to reach their aims, because they want to do better than their
competitors. McDonald's main aims are to serve good food in a friendly and fun environment, to
be a socially responsible company and provide good returns to their shareholders. McDonalds
customers are mainly teenagers and kids. The company aims to provide its customers with food
of a high standard, quick service and value for money. They also wish to be more eco-friendly
and to serve healthier food. So they can gain more customers and it will help business to make a
profit. Making a profit will maximize the increase in sales and in market share it will help
business to grow. Objectives communicate what markers want to achieve, guide marketing
actions and are used to measure how well a plan is working. They can be related to market share,
sales reaching the market audience and creating awareness in the marketplace. Long-term
objectives are broken down into shorter-term measurable targets. Results can be analyzed
regularly to see whether objectives are being met. This type of feedback allows the company to
change plans and allows flexibility.
The main aim is to maximize profit and to provide goods/ services that are cheap and affordable
to the consumers. The best way to achieve objectives is to make more customers and to do this
McDonalds can advertise their business. If McDonalds gain more customers, that will help the
business to make more profit. It will also maximize the increase in sales and the market share. If
McDonalds makes more profit, they will be able to remain the number one retail company in the
UK.

This graph shows the differences in the market share between the other fast food restaurants.
McDonalds has leading the market share out of all of them. This proves that McDonalds has
achieved their aims of market share.

3. Overview of the Organization

History:
In 1954 in the USA there was a milkshake machine salesman named Ray Kroc. Ray received an
order from the McDonald brothers' hamburger outlet in California, and was impressed by their
company - the menu was simple and cheap but the hamburgers were good; the fries were made
in-store; and the shakes were thicker than usual.
Ray made them an offer. "Let me open new McDonalds stores and I'll give you half of one per
cent of the gross sales for the use of the name and the idea."
The McDonald's brothers accepted and Ray opened his first store in Des Plaines, Illinois. He
began to build the business by granting franchises to local entrepreneurs. By 1960, he'd opened
200 restaurants throughout the USA. In 1961 he bought the McDonald brothers' share of the
business for $3 million and in 1965 the company became the McDonald's Corporation.
Today, we've got more than 34,000 restaurants in over 118 countries. Every day, we're serving
meals to more than 50 million people worldwide.
Timeline
1955. Ray Kroc opens the first McDonalds in Des Plaines, Illinois.
1957. 'Quality, Service, Cleanliness and Value' (QSC&V) becomes the Company motto.
1959. A new McDonald's opens at a rate of one every five and a half days. The 100th

McDonald's opens in Wisconsin.

1962. The Golden Arches become the company logo.
1966. Ronald McDonald makes his first national television appearance. McDonald's stock is
listed on the New York Stock Exchange.
1968. The 1,000th restaurant opens in Des Plaines, Illinois. The Big Mac is added to the menu.
1971. McDonald's Australia opens its first restaurant in the Sydney suburb of Yagoona.
1972. The 2,000th restaurant opens in Des Plaines, Illinois. The Quarter Pounder is introduced.
1974. The first Ronald McDonald House opens in Philadelphia, USA.
1975. McDonalds celebrates its 20th anniversary. The Drive-Thru concept is unveiled in
Oklahoma.
1978. The 5,000th restaurant opens in Fujiswawa City, Japan. The first Australian Drive-Thru
store opens in Warrawong, NSW.
1981. Australia's first Ronald McDonald House opens at the Royal Alexandra Children's
Hospital, Camperdown NSW.
1984. Ray Kroc, McDonald's Founder and Senior Chairman, dies and Ronald McDonald
Childrens Charities (RMCC) is established in his memory.
1985. Ronald McDonald House Charities becomes a registered Australian charity.
1986. The 9,000th restaurant opens in Sydney, Australia. McDonald's opens its first restaurant
near the North Pole, with the address McDonald's, Santa Claus Lane, North Pole, Alaska.
1990. The world's largest McDonald's with 900 seats opens in Pushkin Square, Moscow. A
McDonald's restaurant opens somewhere in the world every 14.5 hours.
1991. The 150th Ronald McDonald House opens in Paris. McHappy Day is held for the first time
in Australia, raising $375,000 for Ronald McDonald House Charities and the Variety Clubs of
Australia.
1993. McDonald's becomes the second most recognised brand in the world. The worlds first
McCafe opens in Melbourne, Victoria.
1999. McDonald's opens its 25,000th restaurant in Chicago, USA. McDonalds Australias
flagship burger 'The McOz' arrives on the menu.
2000. McDonald's is the Official Restaurant of the Sydney 2000 Olympic Games, serving more
than 1.2 million meals to athletes, officials and spectators.

2001. McDonald's celebrates its 30th Birthday Down Under, and the 20th birthday of Ronald
McDonald House Charities in Australia. The McFamily rallies to support those affected by the
11th September events through donations of food, services and money. RMHC is named one of
the top 100 charities by Worth Magazine.
2003. The 100th McCafe opens in Australia.
2004. The Happy Meal celebrates 25 years (1979 - 2004). Nutrition labelling is introduced to
packaging on McDonalds core menu items - a Quick Service Restaurant Industry First.
2005. McDonald's celebrates its 50th Anniversary on 15 April. McDonald's Australia raised more
than $715,000 for CARE Australia through its restaurants to provide immediate and long-term
assistance to those affected by the Tsunami.
2007. We update the McDonalds packaging featuring 24 faces from the first ever global casting
call.
2008. The packaging redesign goes a step further with the most comprehensive global redesign
rolled out across the world.
2011. McDonalds now operates in 119 countries having opened stores in Bosnia and
Herzegovina, and Trinidad & Tobago
3.2. Type and Nature of Business of the organization
Types of restaurants
Most standalone McDonald's restaurants offer both counter service and drive-through service,
with indoor and sometimes outdoor seating. Drive-Thru, Auto-Mac, Pay and Drive, or
"McDrive" as it is known in many countries, often has separate stations for placing, paying for,
and picking up orders, though the latter two steps are frequently combined; it was first
introduced in Arizona in 1975, following the lead of other fast-food chains. The first such
restaurant in Britain opened at Fallow field, Manchester in 1986.
McDrive:
In some countries, "McDrive" locations near highways offer no counter service or seating. In
contrast, locations in high-density city neighborhoods often omit drive-through service. There are
also a few locations, located mostly in downtown districts that offer a "Walk-Thru" service in
place of Drive-Thru.
McCafe

McCaf is a caf-style accompaniment to McDonald's restaurants and is a concept created by

McDonald's Australia (also known as "Maccas"), starting with Melbourne in 1993. As of 2016,
most McDonald's in Australia have McCafs located within the existing McDonald's restaurant.
In Tasmania, there are McCafs in every store, with the rest of the states quickly following suit.
After upgrading to the new McCaf look and feel, some Australian stores have noticed up to a
60% increase in sales. At the end of 2003 there were over 600 McCafs worldwide.
Create Your Taste restaurants
In 2014 McDonald's began testing a new gourmet burger service/restaurant concept based on
other gourmet restaurants such as Shake Shack and Grill'd. It was rolled out for the first time in
Australia during the early months of 2015. It has since expanded to China, Hong Kong,
Singapore, and Arabia, New Zealand and has ongoing trials in the US market. Using the
dedicated Create Your Taste (CYT) kiosks a person can choose all ingredients including type of
bun and meat along with additional extras. In late 2015 the Australian CYT service introduced
CYT Salads to give more options to health conscious customers. After a person has ordered their
food, McDonald's advises that wait times are between 10-15 minutes. When the food is ready
dedicated crew specially trained to deliver a higher quality service called 'Hosts' bring the food to
the customer's table. Instead of the traditional packaging one may expect when visiting a
McDonald's restaurant, the CYT food is presented on wooden boards, fries in wire baskets and
Salads in china bowls and metal cutlery. These services are a slightly higher price due to the
gourmet ingredients and cost of labor. The Create Your Taste concept is being rolled out in
various ways throughout the world, including a concept of a 'Burger Bar' in Australia, 'Taste
Crafted' in some US stores, 'McDonald's Next' in Hong Kong, and the 'Signature Collection' in
the United Kingdom. For the most part however, the standard CYT service is incorporated into
traditional restaurants.
Other
Some locations are connected to gas stations/convenience stores,[45] while others called
McExpress have limited seating and/or menu or may be located in a shopping mall. Other
McDonald's are located in Walmart stores. McStop is a location targeted at truckers and travelers
which may have services found at truck stops.
Nature of business

The Company franchises and operates McDonalds restaurants in the food service industry. The
Company had a minority ownership interest in U.K.-based Pret A Manger that it sold in May
2008, and a 100% ownership interest in U.S.-based Boston Market that it sold in August 2007.
All restaurants are operated either by the Company or by franchisees, including conventional
franchisees under franchise arrangements, and foreign affiliated markets (affiliates) and
developmental licensees under license agreements.
The following table presents restaurant information by ownership type:
Restaurants at December 31,

2009

2008

2007

Conventional franchised

19,020

18,402

17,634

Developmental licensed

3,160

2,926

2,756

Affiliated

4,036

4,137

4,081

Franchised

26,216

25,465

24,471

Company-operated

6,262

6,502

6,906

System wide restaurants

32,478

31,967

31,377

3.3 McDonald's International Operations

McDonald's revenues through payment of rent and service fees based upon a percentage of sales,
with specified minimum payments. Generally, the conventional franchise arrangement lasts 20
years. Franchising practices are consistent throughout the world.
Another key area of McDonald's operation is its training program. Training begins at the
restaurant with one-on-one instruction and videotapes. Aspiring restaurant managers progress
through a development program of classes in basic and intermediate operations, management and
equipment. Assistant managers are eligible to attend advanced operations and management class
at one of the five Hamburger University campuses in the United States, Germany, England,
Japan or Australia. The curriculum at Hamburger University concentrates on skills and practices
essential to delivering customer satisfaction and running a restaurant business.
McDonald's brand is well known throughout the world. Marketing and promotional activities are
designed to nurture this brand image and differentiate the company from its competitors by
focusing on value, taste and customer satisfaction. Funding for promotions is handled at the local

restaurant level; funding for regional and national efforts is handled through advertising
cooperatives. Franchised, company-operated and affiliated restaurants throughout the world
make voluntary contributions to cooperatives which purchase media. Production costs for certain
advertising efforts are borne by McDonald's.
International operations are key to McDonald's success. McDonald's, combined with Kentucky
Fried Chicken (KFC), brought the concept of franchising too many of the countries around the
world where both have stores.
3.4 SWOT ANALYSIS
SWOT analysis is a simple framework for generating strategic alternatives from a situation
analysis. It is applicable to either the corporate level or the business unit level and frequently
appears in marketing plans. Such an analysis of the strategic environment is referred to as a
SWOT analysis. A scan of the internal and external environment is an important part of the
strategic planning process. Environmental factors internal to the firm usually can be classified as
strengths or weaknesses, and those external to the firm can be classified as opportunities or
threats. The SWOT analysis provides information that is helpful in matching the firm's resources
and capabilities to the competitive environment in which it operates.
STRENGTH

Strong brand name, image and reputation.

Large market share.
Strong global presence.
Specialized training for managers known as the Hamburger University.
McDonalds Plan to win focuses on people, products, place, price and promotion.
Strong financial performance and position.
Introduction of new products.
Customer focus (centric).
Strong performance in the global market place

WEAKNESS

Large market share.

Strong supply chain.
Rigorous food safety standards.
Decentralized yet connected system
Ignoring breakfast from the menu

OPPORTUNITY

Expansion of other cashless payment systems.

Well-being and ethical image improvement.

Expansion of the children market (other business market penetration)

Setting up vegetarian menus or outlets to expand the market
Growing health trends among consumers
Joint ventures with retailers (e.g. supermarkets).
Consolidation of retailers likely, so better locations for franchisees.
International expansion into emerging markets of China and India.
Diversification and acquisition of other quick-service restaurants.
Growth of the fast-food industry.
Worldwide deregulation.
Low cost menu that will attract the customers.

THREATS

The relationship between corporate level McDonald's and its franchise dealers.
Anti-American sentiments.
Global recession and fluctuating foreign currencies.
Intense Competitions
Growth of health conscious eaters
Outbreak of diseases (mad cow, H5N1, bird flu, SARS)
Recent hygiene complaints affect sales

3.5 BUSINESS PLAN OF Mc DONALDS

Initial franchise fees:
The initial franchise fee varies from company to company and is paid by the franchisee
when the franchise is granted.
The initial franchise fee covers the cost of training, recruiting, territory analysis, site
identification, specialist equipment, stationary, franchisee launch, etc.
You will need a minimum of Rs.1,50,00000 in non-borrowed, personal resources to be
considered for a franchise.
Ongoing Fees to McDonald's:
Service fee- A monthly fee based upon the restaurants sales performance (currently a
service fee of 4.0% of monthly sales).
Rent - A monthly base rent or percentage rent that is a percentage of monthly sales.
McDonald's usually owns the property and also acts as the landlord.
Advertising Fee:
Advertising fees are used to advertise the franchise system.
Normally an advertising fee is based upon a percentage of gross sales or net sales.

 They typically range from 1% to 5% of gross sales.

Other Issues:
The greater the perceived reputation of the franchise, the higher the initial fee.
The greater the reliance on the franchisor's efforts and support, the higher the fee.
Renewal fee is when a franchisee is charged a fee by the franchisor on granting an
extended contract term.
Transfer fee can be charged when the franchisee sells the outlet to another person.
Special fees may also be charged by the franchisor for services such as training in the
use of new software.
4. ORGANIZATIONAL STRUCTURE
McDonalds organizational structure was reformed in July 1, 2015 to improve the companys
handling of its global operations. A firms organizational structure defines the system through
which organizational components coordinate to achieve business objectives. McDonalds
organizational structure facilitates managing markets based on performance levels. As the largest
fast food restaurant chain in the world, McDonalds keeps evolving to address current and
emerging market issues. The firm rolls out new products to maintain its performance in
satisfying customers. These endeavors are supported through McDonalds organizational
structure, which is designed to adapt to the changing business environment.
The McDonald's executive organizational department areas are as follows: at the top are the
chairman and chief executive officer, and the chief operating officer. Below that, the departments
are broken down into: corporate affairs, marketing, human resources, national operations,
regional managers, finance, information, and strategic planning.
Other functional departments within McDonald's are legal, customer services, franchising,
security, hygiene and safety, property and construction, supply chain and restaurant services.
Features of McDonalds Organizational Structure
McDonalds has a divisional organizational structure. Each division handles a specific
operational area. The aim of this organizational structure is to support autonomy and
organizational flexibility. McDonalds organizational structure has the following characteristics,
arranged according to significance:
4.1 Global Hierarchy. McDonalds has a global hierarchy to cover all its operations worldwide.

This feature of the organizational structure emphasizes corporate control. For example,
McDonalds CEO directs the activities of all business areas. Mandates are passed from the CEO
down to middle managers, and to the restaurant managers and personnel. This characteristic of
McDonalds organizational structure is typical of most global business organizations.
4.2 Performance-Based Divisions. The performance-based divisions are the most distinct
feature of McDonalds organizational structure. The company reorganized its structure on July 1,
2015. Before the reorganization, the geographic divisions in McDonalds organizational structure
were (a) U.S., (b) Europe, (c) Asia/Pacific, (d) Middle East and Africa (APMEA) and (e) Other
Countries & Corporate (OCC) including Canada, Latin America and Corporate. After the
reorganization, McDonalds used performance as basis for the new divisions in its organizational
structure: (a) U.S., (b) International Lead Markets, (c) High Growth Markets, and (d)
Foundational Markets and Corporate. The U.S. accounts for more than 40% of McDonalds
revenues, and the lead markets for 40%. The high-growth markets account for 10% of revenues.
4.3 Function-Based Groups. McDonalds maintains function-based groups in its organizational
structure. For example, under corporate operations, the company has a human resource
management group, a supply chain and franchising group, and a legal group. This characteristic
of the organizational structure enables McDonalds to address the basic functions in its business.

Organization Hierarchy:

5. PRODUCTS / SERVICES

Product: - McDonalds places considerable emphasis on developing a menu which customers

want. Market research establishes exactly what this is. However, customers requirements change
over time. In order to meet these changes, McDonalds has introduced new products and phased
out old ones, and will continue to do so. Care is taken not to adversely affect the sales of one
choice by introducing a new choice, which will cannibalize sales from the existing one (trade
off). McDonalds knows that items on its menu will vary in popularity. Their ability to generate
profits will vary at different points in their cycle. In India McDonalds has a diversified product
range focusing more on the vegetarian products as most consumers in India are primarily
vegetarian. The happy meal for the children is a great seller among others.
McDonalds Services
Were here for you! At McDonalds we know what you expect from us: convenience, good times,
friendly service, cleanliness and of course, delicious food.
5.1 List of products
All beef patties are seasoned, consisting primarily of salt and black pepper.
Big Mac: Along with the Quarter Pounder with cheese, this is one of the two McDonald's
signature menu items, introduced in 1967 as a response to the flagship burger at Big Boy
restaurants. Two 1.6-ounce ground beef patties, special Big Mac sauce, shredded iceberg lettuce,
cheese, two gherkin slices, and re-hydrated onions on a toasted sesame seed bun, with an
additional middle bun separating both beef patties.
Big N' Tasty: The Big N' Tasty consists of a seasoned quarter-pound beef patty with ketchup,
mayonnaise, slivered onions, two dill pickle slices, leaf lettuce, and one tomato slice on a sesame
seed bun.
Quarter Pounder: Along with the Big Mac, this is one of the two McDonald's signature menu
items. 4-ounce of ground beef patty with ketchup, mustard, slivered onions, two gherkin slices,
and two slices of cheese.
Hamburger and cheeseburger: A 45 g ground beef patty, with ketchup, mustard, a single dill
pickle, re-hydrated onions, on a toasted bun. Also sold as a double or triple, adding an extra
pickle slice for each beef patty added
Double Cheeseburger: It 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.

McDouble: It similar to a Double Cheeseburger, but with just one slice of cheese. It was
reintroduced as a permanent dollar-menu item in December 2008.
Daily Double: Similar to the double cheeseburger, however the toppings are different. The Daily
Double is made with lettuce, tomato, slivered onions, and mayonnaise. It also has only one slice
of cheese, rather than the two slices that are on the double cheeseburger.
The Big N' Tasty: It was introduced in 1997 and has beef patty with ketchup, cheese,
mayonnaise with a grill flavouring, diced onions, two pickles, leaf lettuce, kebab meat and a
tomato slice, on a toasted bun. It was devised to resemble Burger King's Whopper sandwich.
McFeast: A hamburger with lettuce, tomato, and mayonnaise, the McFeast contains a quarter
pounder patty, lettuce, and modified mayonnaise with lemon juice, ketchup, onion and tomato.
Chicken, Fish, Pork
McChicken: It is a mildly spicy chicken sandwich. Made from ground white meat chicken,
mayonnaise, and shredded lettuce, on a toasted bun. It still remains one of the biggest sellers, just
behind the Big Mac.
Premium chicken sandwiches: The Classic is a rebranding of the Crispy Chicken and Chicken
McGrill sandwiches, with mayonnaise, leaf lettuce, and a tomato slice. All are served on a
whole-grain roll, with either a grilled or crispy chicken breast.
Southern Style Chicken Sandwich: A southern-style fried chicken breast filet, on a steamed bun,
dressed with butter and two pickles.
Snack Wrap: McDonald's version of a wrap made with white meat chicken breast, lettuce,
shredded Cheddar cheese and Monterey Jack cheese, and a sauce, wrapped in a soft flour tortilla.
There is also a Mac Snack Wrap which features the fixings of the Big Mac, but without the bun
and wrapped in a tortilla shell, and uses one half of a piece of quarter meat.
Chicken Fajita: Chicken, cheese, red and green bell peppers, and diced onions in a flour tortilla.
Comes with Picante sauce packets on request, which is available in mild and spicy.
Chicken McNuggets: Introduced in 1980 as a replacement for the McChicken, these are small
chicken chunks served with dipping sauces of Barbecue, Sweet n' Sour, Honey, and Hot Mustard.
In 2011, 4 new dipping sauces were introduced and added to the lineup: Sweet Chili, Honey
Mustard, Spicy Buffalo, and Creamy Ranch.
Chicken Selects: McDonald's version of chicken strips. They include choices of spicy buffalo,
creamy ranch, Honey Mustard, and Chipotle barbecue dipping sauces; sauce selections in the UK

are Smokey barbecue, sour cream and sweet chilli sauce.

Filet-O-Fish: It is a whitefish fillet with tartar sauce and a half slice of cheese, on a steamed bun.
McRib: It is a sandwich featuring boneless pork with barbecue sauce, slivered onions, and
pickles.
McArabia: There are two versions of the McArabia: Grilled chicken and grilled kofta (beef with
spices). Both are served with lettuce, tomatoes, onions, and garlic mayonnaise in addition to two
small patties of grilled chicken or kofta, all wrapped in an Arabic style pita bread. The McArabia
has been very well received throughout the Middle East.
Chicken McBites: They are Popcorn chicken breast with "home-style seasoning. Dipping
sauces include ranch, Sweet n' Sour, Tangy BBQ, Chipotle BBQ, and Honey Mustard.
Fish McBites: Similar to the Chicken McBites, these are small pieces of flaky whitefish dipped
in batter and fried until golden brown, and served with tartar sauce for dipping.
Salads and side orders
McDonald's first introduced salads to its menu in 1985. The Premium Salads all are a mixture of
iceberg lettuce and a special lettuce assortment, with cherry tomatoes and different toppings to
differentiate them; additionally all salads can be topped with warm grilled or crispy chicken. All
of its salads are part of McDonald's move towards creating a healthier image.
McDonald's sells French fries as its primary side order. They also sell potato wedges, a type of
French fry that is thick cut and wedge shaped, fried onion pieces and onion rings.

5.2. Product Lines

Above is the diagram of McDonalds product range and shows McDonalds product items, depth
of McDonalds various product lines and the breadth of McDonalds product mix. *Note: This
diagram does not include all the products that McDonalds offers and all the variety of the same
product it offers, this is just a brief diagram of McDonalds product portfolio. As you can see
above, McDonalds has a very large collection of product items for each product line and it has
significant depth in each product line. * In an average McDonalds restaurant there are 20+
burgers for your choice and they continue to invent new burgers every time to satisfy consumers.
Furthermore, McDonalds has a very broad product mix, providing products from burgers, ice
cream, drinks and even salad. With the huge product range of McDonalds, advantages would be
that there are more choices for the customers and they can satisfy/suit the wants of different

market segments. Furthermore, with McDonalds diversification of its products and its extensive
product range, it will be easier for McDonalds to grow and expand.
5.3 Mc Donalds Production Process:

Open
the
stores

Grow the
food
(Meats and
vegetables)

Organize with
companies to buy
and sell drinks,
ice-creams etc.

And finally, it is
ready to be served

Import and
export the
foods and
drinks

Process the
meats

Prepare the
food

Take all the

food, drinks,
and other food
items to stores