Assignment Title:

Explain Mc Donald’s Basic Philosophy? How

Does It Enforces This Philosophy And Adapt To
Different Environments While Operating In
Pakistan?
“Introduction”
 Richard “Dick” Mc Donald And Maurice “Mac” Mc
Donald Were The Two Brothers Who Are The Founder
Of Mc Donald’s.
Mc Donald Family Was Irish But
They Lived In Manchester, New
Hampshire.

Mc Donald Brothers Fast Food

Venture Was In 1937 With A Hot-
Dog Stand Which They Named It
As “AIRDROME”. Which Was in
Monrovia, California…
 Ray Kroc (1902-1984):
Ray Kroc was born in 1902 to
A Czech Family originated in
Chicago, IL.

Ray Kroc was a trained

Ambulance Driver in World War
I
Ray Kroc tried his hand in so
many trades like, Paper-cup
salesman.
He also was a pianist and he had worked
with some band as well.
 Then Ray Kroc Worked for Ray
Damburgh Restaurants.

He Eventually became a Multi-

Mixer milkshake machine
salesman in the year 1954.

In 1955 Ray Kroc And Mc

Donald Brothers joint together
and opened a Mc Donald’s
Restaurant.
 In the year 1961, The
McDonald brothers agreed
to sell Kroc business rights
to their operation. The
agreement was for the
McDonald Brothers to
receive $2.7 million for the
chain and to continue to
receive an overriding
royalty of 1% on the gross
sales
“Mc Donaldization- The Basic
philosophy”
 George Ritzer is a US
sociologist best known for
advocating the Mcdonaldization
thesis Ritzer (1996,1998,2002).
In his first book on this
subject(1996)he argued that the
principles on which Fast-food
restaurants such as McDonald’s
were organized were becoming
an increasingly common feature
of society.
THESE PRINCIPLES INCLUDES:

Trying to maximize efficiency.

To make all aspects of provision fast-foods

calculable.

To make the process of producing and

consuming burgers predictable.

4.Ensuring that management retained the

maximum possible control over the process.
 THE PRINCIPLES OF
MCDONALDIZATION:

Four alluring dimensions lie at the

heart of the success of
mcdonaldization.

Efficiency

Calculability

Predictability

Control
 EFFICIENCY:

Ritzer defines
efficiency as “the
optimum method for
getting from one point to
another” .To the
customer of McDonald’s
this means ‘the best way
of getting from being
hungry to be full’.
 FOR EXAMPLE:
The process was speeded up
if the buns supplied to the
restaurants were pre-sliced.

Optimum amount of wax

put on the pieces of paper
separating individual beef
burgers.
The use of conveyor belts.

Developed a system whereby a frozen

burger could be moved over a flame and
cooked in 94 seconds.
CALCULABILITY:

McDonald’s offers
calculability, or
emphasis on the
quantitative aspects of
product sold (portion
size, cost) and service
offered. Quantity has
become equivalent to
quality.
PREDICTABILITY:
McDonald’s offers
predictability, the
assurance that their
products and services
will be the same over
time and in all locals
CONTROL:

Control, especially
through the
substitution of non-
human for human
tech, is exerted over
the people who enter
world of McDonald’s. A
human technology is
controlled by people
and a non-human
technology controls
people.
“Adeptation of Mc Donald’s In Different
Enviorments”
:Opening Strategy of Mc-Donald's
Ray Kroc opened the first
McDonald’s restaurant in
1955. He offered a limited
menu of high-quality,
moderately-priced food
served fast in spotless
surroundings.

McDonald’s “QSC&V” (quality, service,

cleanliness, and value) was a hit. The chain
expanded into every state in the nation.
By 1983 it had more than 6000 restaurants in
the United States and by 1995 it had more than
18,000 restaurants in 89 countries, located in
six continents
 Price Ranges:
The prices vary considerably around the
world ranging from $5.20 in Switzerland to
$1.05 in China for the Big Mac that costs in
the United States $2.32

The Economist magazine even devised a `Big Mac

Index’ to estimate whether a currency is over or
undervalued. Thus, the $1.05 Chinese Mac translates
into an Implied Purchasing Power Parity of $3.88.

The inference is that the Chinese currency is

undervalued while the Swiss France is
overvalued.
Taste Setting:
Its traditional menu has been
surprisingly successful

People with diverse dining

habits have adopted burgers and
fries wholeheartedly.

Services:
Despite the global operation,
McDonald’s stays in close contact with
its customers who want good taste, fast
and friendly service, clean
surroundings, and quality
Advertising:

The advertising campaigns

are based on local themes and
reflect the different
environments

In Japan, where burgers are a

snack, McDonald’s competes
against confectioneries and new
“fast sushi” restaurants.
Regional Distribution:

McDonald’s ensures
consistent products by
controlling every stage of
the distribution.

Regional distribution
centers purchase products
and distribute them to
individual restaurants.

The centers will buy from local suppliers if

the suppliers can meet detailed specifications.
Competitive Strategy:

McDonald’s uses essentially the same

competitive strategy in every country: Be
first in a market, and establish its brand as
rapidly as possible by advertising very
heavily
Competitive Strategy:

New restaurants are opened with a bang.

So many people attended the opening of
one Tokyo restaurant that the police closed
the street to vehicles.
Competitive Strategy:

The strategy has helped McDonald’s

develop a strong market share in the fast
food market, even though its US
competitors and new local competitors
quickly enter the market
 Challenges:
Despite its success, McDonald’s face
tough challenges in the form of its
competitors such as Burger King,
Wendy’s Kentucky Fried Chicken, and
now also Pizza Hut with its pizza.

However, fast food in reheat able

containers is now also sold in supermarkets,
delicatessens (a store selling foods already
prepared or requiring little preparation for
serving) and convenience stores, and even
gas stations.

McDonald’s has done very well, with a great

percentage of profits coming now from
international operations.
“Created Place In Pakistan Food
Industry”
 Aiming to be the world’s best quick service
restaurant experience, Mc Donald’s started it’s
operation in Pakistan in 1998 and is a leading fast
food service retailer for its valued costumers.

To realize the Mc Donald’s service vision, we

believe in strengthening and we focus to deliver:

I. Resources & Recognition

II. Values & Leadership Behaviors
III. Competitive Pay & Benefits
IV. Learning Development & Personal
Growth
V. Resources to get job done
Demand Trends:
There are many variations observed in the
demand trends for Mc Donald’s in pakistan.

The demand also fell because of security

issues that affected demand for Mc Donald’s
e.g., Suicide attacks on western establishments
a year ago.
Key Success factors:
Mc donald’s pakistan has an aggressive
plan to expand in all other cities of pakistan
and is rapidly growing with the focus to
provide friendly and a quick service
restaurant experience to its costumers.
“How Mc Donald’s Can Sustain It’s
Status In Pakistan”
Strategic Problems:

The problem Mc Donald’s is facing now a days is

developing new strategies in order to sustain a
competitive advantage in a market.
Innovation & Diversification:

In order for Mc Donald’s to sustain in this market

or counter this problem they must stay innovative &
Further diversifying their business to sustain their
comparative advantage.

Cheap & Greasy Image:

Main problem they are facing is of having

Cheap & greasy “Image” countred by Subway
in Middle East and other countries.
Market Evolution & Mc Donald’s Image:

The evolution of fast food is causing Mc Donald’s

it’s meet & has forced it to re-think their overall
stratagy introducing new products and re-shaping of
their image.

Solution to the problem:

Mc Donald’s has tried to satisfy this need through

government sales and wraps but there is a need to
introduce non-burger products.
Conclusion:
Through implementing new trends
Some new exciting offers will be helpful.
Set new Trends.
Coffee or three hot + Cold drinks can really help.

As people of Pakistan are health concious provide

them with some new products with fulfils the
requirement.
Making itself available to move people

Start a campaign our something like that for

people so they can express their views on brining a
new product into the market.