McDonald’s Pakistan
I ’m lovin’it
Vision:
To be the world's best quick service restaurant experience. Being the best means providing
outstanding quality, service, cleanliness and value, so that their food makes every customer in
every restaurant smile
Mission:
McDonald's mission is 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
About McDonald’s:
Aiming to be the world's best quick service restaurant experience, McDonald's started its
operations in Pakistan in 1998 and is a leading fast food service retailer for its valued customers.
With a strong belief in the phrase when it's green it's growing, McDonald's Pakistan is growing
with the focus to provide friendly and quick service restaurant experience to their customers.
Currently McDonald's Pakistan is operating in various cities of Pakistan I-e Lahore, Faisalabad,
Karachi, Hyderabad, and Islamabad & Rawalpindi with the plans to cover the customer base in
various other cities of the country.
McDonald's Pakistan is a part of the Lakson Group of Companies, with a regional office in
Lahore and the main Head Office in Karachi. They are operating with a network of restaurants
to reach our customers for providing friendly services in all different regions of the country.
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McDonald's a Global Phenomenon:
Formed in 1954, McDonald's brand is the leading global foodservice retailer with more than
30,000 local restaurants serving nearly 50 million people in more than 120 countries each day.
Its rich history began with the founder Ray Kroc's vision and his commitment, transformed in
their talented executives, and will keep the shine on McDonald's arches for years to come.
Core Values of McDonald’s:
•
Integrity and Honesty
•
Open, Respectful and Supportive
•
Prepared to take challenges and see them through
•
Deep regards for Customers, Business partners and employees
•
Quality in Product
Quality:
McDonald’s is very strict about the quality of services they provide. They don’t compromise
anything over quality. Quality is considered to be one of their foremost objectives.
They want 100 % quality of service. Quality is checked on for:
•
High standard of food, services provided to the customers.
•
Communication skills i.e. English speaking skills
•
Appearance and grooming
•
Ability to communicate with guests and handle versatile situations.
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McDonald’s Business Infrastructure
Head
office
Regional
Office
Branch
Office
Responsibilities and Activity of Branch office Managers
1. Team Leader-team leader who leads and give order and work to all managers
2. Crew Chief- crew chief who leads all frontline employees and distribute their duty
and set time schedule of them.
3. Floor Manager -'Floor management' includes managing staff who give services to
customers and allocate the duties of opening and closing restaurant. The manager is
responsible for making sure his or her staff is following the service standards and health
and safety regulations. The manager is the most important person in the front-of-thehouse environment, since it is up to him or her to motivate the staff and give them job
satisfaction. The manager also looks after and guides the personal well-being of the staff,
since it makes the work force stronger and more profitable.
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4. Kitchen Manager-'Kitchen management' includes the managing staff
working in the kitchen. The kitchen is the most important part of the business
and the main reason customers patronize the restaurant. Managing the kitchen staff helps
to control food quality. As most commercial kitchens are a closed environment, the staff
may become bored or tired from the work. Without proper management, this often
results in an inconsistent food product
5. Restaurant Manager- restaurant manager who is the head of floor manager, kitchen
manager, crew chief and also employees.
Activity of McDonald’s Employees/ works
In McDonald’s we see Activity of all Employees
• Frontline Employee-In McDonald’s there are 4 counters and frontline employees operate
that counters and deal with customers and the end of the day they count per product sale
amount and total amount of the sale. Simple format is given below-
Product Name
Sales
Amount
Grand total
Happy Meal
5000
100000
100000
Cold drinks
5000
150000
150000
Ice cream
9000
270000
270000
520000
All works are doing manually and the frontline employees give this report to the restaurant
manager.
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•
Restaurant Manager–restaurant manager take all counters reports
from the frontline employees, he checks all the reports and by mail he give this
report to the regional office and head office.
Frontline employees
Branch Office Manager
Regional Office
Manager
Head office Manager
Flowchart of report moving
Our Philosophy:.
"We take the burger business more seriously than anyone else." When McDonald's founder, Ray
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Kroc made that memorable statement, he was letting the world in on the philosophy
and secret behind McDonald's phenomenal success.
Our vision to be Pakistan "best" quick service restaurant experience is supported by a set of
principles and core values [McDonald’s Way]
The principles that guide us …
•
Quality, Service, Cleanliness & Value - It is an unflinching McDonald's ideology
that our customers must always get quality products, served quickly and with a
smile, in a clean and pleasant environment; and all at a fair price
•
We are committed to exceeding our customers' expectations in every restaurant every
time.
•
We have a passion and a responsibility for enhancing and protecting the McDonald's
brand.
•
We believe in a collaborative management approach, employing a mutually
respectful business philosophy,
•
We will seize every opportunity to innovate and lead the industry on behalf of our
customers.
Data Mining Introduction:
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Data mining, the extraction of hidden predictive information from large databases, is
a powerful new technology with great potential to help companies focus on the most
important information in their data warehouses. Data mining tools predict future trends and
behaviors, allowing businesses to make proactive, knowledge-driven decisions.
Most companies already collect and refine massive quantities of data. Data mining techniques
can be implemented rapidly on existing software and hardware platforms to enhance the value
of existing information resources, and can be integrated with new products and systems as they
are brought on-line
The Foundations of Data Mining:
Data mining techniques are the result of a long process of research and product development.
This evolution began when business data was first stored on computers, continued with
improvements in data access, and more recently, generated technologies that allow users to
navigate through their data in real time. Data mining takes this evolutionary process beyond
retrospective data access and navigation to prospective and proactive information delivery. Data
mining is ready for application in the business community because it is supported by three
technologies that are now sufficiently mature:
•
Massive data collection
•
Powerful multiprocessor computers
•
Data mining algorithms
What can data mining do?
Data mining is primarily used today by companies with a strong consumer focus - retail,
financial, communication, and marketing organizations. It enables these companies to determine
relationships among "internal" factors such as price, product positioning, or staff skills, and
"external" factors such as economic indicators, competition, and customer demographics. And,
it enables them to determine the impact on sales, customer satisfaction, and corporate profits.
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Finally, it enables them to "drill down" into summary information to view detail
transactional data.
Data mining consists of five major elements:
•
Extract, transform, and load transaction data onto the data warehouse system.
•
Store and manage the data in a multidimensional database system.
•
Provide data access to business analysts and information technology professionals.
•
Analyze the data by application software.
•
Present the data in a useful format, such as a graph or table.
•
Data Mining is based on mathematical algorithm and analytical skills to drive the desired
results from the huge database collection.
What technological infrastructure is required?
•
Size of the database: the more data being processed and maintained, the more powerful
the system required.
•
Query complexity: the more complex the queries and the greater the number of queries
being processed, the more powerful the system required.
Data Mining Importance in Today’s Corporate Industry:
•
Data Mining is largely used in several applications such as understanding consumer
research
marketing,
product
analysis,
and
demand
and
supply
analysis,
telecommunications and so on.
•
Data mining software enables users to analyze large databases to provide solutions to
business decision problems.
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•
Data mining is a technology and not a business solution like statistics. Thus
the data mining software provides an idea about the customers that would be
intrigued by the new product.
•
Data Mining therefore has arrived on the scene at the very appropriate time, helping
these enterprises to achieve a number of complex tasks that would have taken up ages
but for the advent of this marvelous new technology
Stages of Data Mining:
Exploration is the first stage, and as the name implies, you will want to explore and prepare
data. You may need to clean the data you have, or it may need to be transformed into another
form. In addition to this, you may also need to create records. If you have a large number of
variables to consider, you may need to reduce them to a range that is easy to deal with
After you've explored, refined, and defined specific variables, you will next want to move on to
stage 2, which is also called pattern identification. The first thing you will want to do is look for
patterns and choose one that will allow you to make the best predictions. For example, if you are
looking at data to find patterns that will allow your store to earn more profits, you could take
two shopping patterns of your customers and apply them to a hypothetical strategy to determine
which one performs the best.
The third stage is called deployment. You will not want to move to this stage until you have
found a consistent pattern from stage 2 that is highly predictive. For example, if you find that
many of your customers are consistently buying a specific product on a certain date, you will be
able to predict their future behavior. Now that you've done this, you can take the pattern and
apply it in order to see if you can achieve the desired outcome.
How McDonald International Applies Data mining
McDonalds is having database for management of data. The data is used for
•
The sales data predicts the total sales of the products for the whole day.
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•
The products with higher sales are used for advertisement of the product with
higher demand.
•
The data can also the inventory management
•
The availability of raw material in the stock
•
The database containing data of employees are used for hiring the right people
•
In case of shortage of employees the database is used to select CV meeting the criteria
and the right person is employed.
•
The data is used to know the total number of employees employed.
•
The data is also used to find employees who need the training.
•
The data is used for pricing the products
•
The data is used to find out the competitors share in the market and the products of the
competitors which are most liked by the users.
•
The data is used to find tactics to capture market.
McDonald Pakistan:
Currently McDonald Pakistan is not using data mining they hire external companies to do
survey regarding the customer taste and satisfaction. Every time new surveys are conducted is
conducted to know the customer taste and affordability. McDonald Pakistan is using simple data
base at counter to know the sales.
Database at Counter:
The data base shows the over all sales of the day .The menu is available in the data base which
sows the pricing of each product
• Inventory Management:
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The data base shows the inventory available on hand, on shipment and the
recorder point
• Inventory on hand:
The software shows the over all inventory in the store that how much amount of material
is available in the stock room.
• Shipment inventory:
McDonald requires some material from out side sources through shipment .The material is
sent through shipment .The material contains some specific flavors or material that makes
the product of McDonald Pakistan Similar to the standard of McDonald international.
• Reorder point:
The software indicates the reorder point that at which point the next order is to be made.
• New Equipment:
McDonald uses the latest equipment to reduce the cooking period. At specific intervals
they purchase new machines that reduce the making of food.
• Sales Management:
McDonald software contains the data regarding the over all sales of the whole day. This data
helps in knowing which product has the highest sales during the day.
• Advertisement of the products:
According to the sales data base McDonald advertise for their products for example happy
meals are like day the children’s McDonalds so emphasis on targeting the children’s through
their ads. People like McDonald Ice cream and sakes so these products are advertised more.
• Surveys conducted by Companies:
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McDonalds usually depend on research companies who conduct surveys For
McDonald.
• Consumer taste:
Surveys are conducted for launching of a new product by Companies who tell McDonald
that what are the consumer demand as in Pakistan people prefer eating beef or mutton
products more as compared to chicken products. But McDonald chicken products are
more in demand
• Service delivery:
Surveys are conducted to know that is people are having any problem related to the
service delivery of McDonald are people are satisfied which the current service or do
they need any change in the physical area where service is been made
• Food Delivery:
Surveys are conducted to know that where people are satisfied by the food stuff do they
need any change in the menu. As in summers McDonald offers Milk shakes as people more
like to drink shakes.
• New product Launch:
For launching of a new product surveys are made then the product is been tasted by the
internal employees also there are permanent customers of McDonald whose database is been
made McDonald personally invite them to taste the new product.
• Competitors Market Share:
McDonald main competitors are Pizza Hutt and KFC they make survey that what are their
competitors are offering to the customers as well as their pricing strategy .Pizza Hutt
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hygienic standards are good as compared to mcdoanld.KFC is direct competitor of
McDonald.
• Food Hygiene:
McDonalds maintained the performance standard for food they have standards for food and
service.
Standards at McDonald:
At McDonald its always like coming home .We make sure that the warmth of our homely touch
reaches your highest expectation. Be it food, service or the ambience we keep evaluating our
quality standards to new levels McDonald has implemented rigorous food standards called
“from farm to restaurant”.
• MEAT with 100% purity:
100% purity is the reason why all beef sandwiches taste so delicious. Chicken that
McDonald serve is carefully deboned breast meat only, with seasoned batter and a
choice of sauce portion.
• High Quality baked Buns:
McDonald sources buns from suppliers who use high quality wheat. All buns are subject
to strict quality control.
• Crunchy Farm –Fresh Vegetables:
McDonald selects the best of the best vegetables that are continually monitored for
freshness, high nutrients and safety to maintain top quality standards.
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• No Compromise:
McDonald gives high importance to smallest to detail, from meat to species and every
thing is standardized. McDonald follow global set standards with no compromise right
from the farm to the restaurant till the time it is being served.
• High Energy Wholesome Dairies:
For McDonald cheese, shakes, Mcflurry and sundaes McDonald ensure that fresh milk
come from approved regional and local suppliers. Quality control procedures are follows
through out the supply chain.
• Fries –Naturally Crisp:
The secret lies in the harvesting of high quality potatoes that come from trusted suppliers
the potatoes are then cooked using 100%vegetable oil with no flavors or fats only some
salt is added after cooking.
• All Safe ‘N Sound:
HACCP (hazard analysis and critical control point) is applied to keep food safety
absolute from point zero till the tome it is served to the customers.
The ERP Model used in McDonald:
•
ERP plays the important role of running system on front. Whatever decision are made,
mostly are through the system of ERP. ERP is supported by various other supports. This
is the place where major decision making and their execution takes place.
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•
EDI (Electronic Data Interchange) consists of direct computer-to-computer
transmission among multiple firms of data in a machine readable, structured format.
•
AMS (Attendance Monitoring System) is required for personal planning of the
employees in the organization. It also helps in availability and scheduling.
•
CAD/CAM/CAE
(Computer
Aided
Design/
Computer
Aided
Manufacturing/ Computer Aided Engineering). This system handles the
design, manufacturing and engineering functions in the organization. This provides
drawing and design engineering information to ERP in the execution of manufacturing
and purchase functions
•
DMS (Document Management System). This system helps in keeping
important document for viewing at later times. For the purpose of transaction handling
this system some time have a facility of document modification, by giving text-editing
facility
•
CMS (Communication Management Systems). The ERP uses CMS as a tool
for all its communication needs of recording an event. This system is used for tracking
the important resource for action.
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•
SMS (Security Management System). This system handles the
security, entry access requirement of business operations.
ERP System:
•
ERP software is a family of software modules that support the business activities
involved in these vital back-office processes.
•
For example, ERP software for a manufacturing company will typically track the status
of sales, inventory, shipping, and invoicing, as well as forecasting raw material and
human resource requirements.
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•
Enterprise Applications/ Packages/ Suites/ Systems connects all of the
information, which flows through a company to a single integrated set of
systems.
•
This is implemented in modules, which can be integrated.
•
ERP may work with a wide variety of databases, hardware, and operating systems.
•
Leading Vendors of ERP are SAP, Oracle.
•
Originally. ERP packages were targeted at the manufacturing industry.
•
Their goal is to integrate information across the company and eliminate complex links
between computer systems.
•
The architecture is client/server and uses OO methodology for design and development
of whole system.
•
Key advantage of ERP is that it provides an integrated solution for all the requirements
of the business.
•
It takes care of organizational hierarchy of authorities
•
Basically ERP solutions are based on Unix and Windows NT platform.
A typical ERP solution has following modules: •
Marketing, Distribution and sales
•
Manufacturing process
•
Accounting and finance
•
Personal management
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•
Planning and control
•
Purchase and inventory
The modules are designed for following purposes: •
Data capture from transactions
•
Data transaction validation
•
Analysis
•
Updating and reporting of accounting
ERP Benefits:
•
ERP offers lots of benefits to the implementing organization.
•
It helps for a manager to make decision at the right time.
•
This is possible when entire organization is sharing information and interprets in same
perspectives.
•
The benefits of ERP can be classified in two categories: •
Tangible benefits (Those which can be measured in one form or other)
•
Intangible benefits (Difficult to measure in absolute terms)
Reduction of lead-time
•
The elapsed time between placing an order and receiving is known as the lead-time.
•
In order to reduce lead-times, the organization should have an efficient inventory
management system.
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•
This inventory system is integrated with the purchase, production planning
and production department.
•
The ERP systems help in automating this task and thus make inventory management
more effective and efficient.
•
Doubled business
•
Increase of inventory turn to over 30%
•
Cycle time cut to 80% :
•
Cycle time is the time between receipt of the order and delivery of the product.
•
Make –to – order
•
Make –to – stock
Going Live
•
The old system is removed and the new system is used for doing business.
•
Data conversion is done, databases are up and running.
•
Prototype is fully configured and tested and ready to go operational. So the system is
live.
Conclusion:
From the overall analysis of the database management system we conclude that McDonald
Pakistan should have its own database instead of going for research companies to do research on
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their behalf. As McDonald is operating in only five cities of Pakistan it has to do
research if they want to open in other cities as the consumer taste various according to
every city. It will reduce its cost also
Suggestion:
We give some suggestions to McDonalds, the suggestions are
•
Provide access to information form any where any time.
•
Head office management and regional office management access to the proposal for
status monitoring and tracking.
•
Create a business management database/data warehouse that is useful to management ,
sales managers
•
Besides real time online systems develops data mining application for strategic
management of business.
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