A PROJECT REPORT ON MC DONALD

Submitted in the partial fulfillment of the requirement for the award of the Degree of Bachelors of Business Administration

SUBMITTED BY: ___________________ BBA (4TH SEMESTER)

UNDER GUIDANCE OF:

BHARATI VIDYAPEETHs INSTITUTE OF MANAGEMENT & RESEARCH, NEW DELHI

Student Undertaking

I ________________ have completed the Summer Training Project titled Mc Donald under the guidance of ____________________in the partial fulfillment of the requirement for the award of degree of Bachelor of Business Administration of BVU, SDE, Academic Study Center BVIMR, New Delhi. This is an original piece of work & I have neither copied and nor submitted it earlier elsewhere.

_______________
Students Signature

ACKNOWLEDGEMENT

The present work is an effort to throw some light on Mc Donald. The work would not have been possible to come to the present shape without the able guidance, supervision and help to me by number of people. With deep sense of gratitude I acknowledge the encouragement and guidance received by my project guide _____________and other staff members of Mc Donald. I convey my heartful affection to all those people who helped and supported me during the course, for completion of my Project Report.

PREFACE

A hallmark of any premier business school is its willingness and ability to constantly explore and implement new ideas and practices in the field of management education. Institute constantly reorients their programs in order to keep abreast of changing development. The initial interaction between school students and industry takes place when the students undergo project is usually for knowing the process for recruitment, selection, industrial relations & training of that institution. It is often the exposure to corporate culture that a student receives, particularly true for students without prior work experience. During my training at Mc donald, I was taken project on recruitment, selection & training policy of Mc donald. The main purpose of the study is to know the policies of the bank regarding recruitment, selection & training, which helped me in gaining knowledge about the different working pattern of different departments of the company.

CONTENTS
CHAPTER 1: INTRODUCTION OVERVIEW OF INDIAN ECONOMY AND ITS GROWTH OVERVIEW OF INDUSTRY INDUSTRY INTRODUCTION COMPANIES CONTRIBUTION WITH IN THE INDUSTRY

PROFILE OF THE ORGANISATION HISTORY OF THE COMPANY VISION AND MISSION STATEMENT OF COMPANY ORGANISATION STRUCTURE

CHAPTER 2: COMPANY ANALYSIS PEST ANALYSIS PORTERS 5 FORCES SWOT ANALYSIS USP OF ANY DEPARTMENT MODEL

CHAPTER3: MARKETING STRATEGIES INTRODUCTION AND IMPORTANCE OF MARKETING STRATEGIES MARKETING MIX OF THE COMPANY STP ANALYSIS OF THE COMPANY BCG MATRIX OF THE COMPANY

CHAPTER4: FINANCIAL ANALYSIS SOURCES OF FINANCE KEY INVESTMENTS RATIO

CHAPTER5: HR-POLICIES AND STRATEGIES SOURCES OF RECRUITMENT PROCESS OF RECRUITMENT TRANING AND DEVLOPEMENT BENEFITS OF COMPANSATION SYSTEM

CHAPTER6: PRODUCTION POLICIES CHAPTER 7: FINDINGS AND CONCLUSIONS BIBLIOGRAPHY

INTRODUCTION

EXECUTIVE SUMMARY
Mc Donalds is the market leader in fast food industry. The aim of this project is to get an insight of the frequency of New Product Introduction in Mc Donalds and to find that whether customers are aware of new products in time and the source of information of new product introduction. The aim was also to find out the factors that make customers try new products.

The need of this project arose because a survey which would show that whether the work which is done by the company in the area of new products is liked by the customers or not. The major focus of the research conducted, therefore was basically discovering the factors that people are aware or not and the attribute of product that attract them for a trial. The study was restricted to only around 50-60 % of our target audience, because the respondents included in the study are people who are the regular visitors of McDonalds.

The methodology adopted to conduct the research involved structured questionnaires, telephonic & personal interviews & observation.

THE INDIAN FAST FOOD MARKET - AN OVERVIEW

Up to the year 1995 the traditional dhabas, potential restaurants in the customers colony and some restaurants in a five star hotel predominantly dominated 1995 Indian food market. Having fast food i.e., burgers, pizzas etc., was considered to be an option for eating out. It was not at all synonymous with the American concept of fast food as a quick takeaway bite or a substitute for lunch. Apart from fast food being available at the local colony restaurants and at some five star restaurants, Nirulas was the only fast food chain existing in the country with its restaurants expanding with every passing year since its inception. It has been almost 50 years now since its set up and there is hardly any one who doesnt know that Nirulas exists. Nirulas was the first one to bring fast food to India back in the 50s since then it has evolved into an eating-place with tremendous brand equity and brand recognition. It proved to be a perfect eating place for an average middle class who wants to eat out at an affordable price who cant afford the five-star restaurants and would not want to go to the local dhabas. Nirulas almost had a monopoly for decades due to the way it has been placed. It is a place where a person from an average middle class group to upper class group can go to eat out. Its popularity has increased over the decades. With the trends changing and the incomes raising almost anybody who can afford to eat out could go for a snack at Nirulas. However the year 1995-96 witnessed a drastic change. 1996 is considered to be the year of Indias entry into the world food market. International giants such as McDonalds, KFC, TGIF, Dominos, and Pizza Hut all bombarded the Indian food market. Before these, UK-based joint called Wimpys had established its chain in the country in 1990. By year 1996 it had about three to four joints established in Delhi. However it did not pose much of a threat to Nirulas reason being lack of variety and that Wimpy was looked at more of a hangout place rather than eating out with the family. Its been the American international giants i.e., McDonalds, Pizza Hut etc., who have targeted their restaurants to the families. Apart from the foreign and Indian fast food

chains setting up shop, there is a range of specialty restaurants offering varied fare such as Chinese, Mexican, French, Italian etc. These places however offer range of items different from burgers, pizzas etc, but they definitely are competition to both foreign and Indian fast food chains. However, restaurant business is such which is surrounded by threat from everywhere be it Indian joints or foreign joints. It is only these international joints and specialty restaurants that are gradually coming up and some Indian restaurants that have made up the food market. Prior to this it was only the local restaurant that became visible while passing by or through local banners etc., and the five star restaurants were for the elite class out of reach by the average middle class customer. There was hardly any awareness or promotion to beat competition. Each of the foreign food joints that have come into the country has their own strategy lined up to differ from the rest. Each of these studied the Indian tastes and style and thereby targeted the Indian customer. An average Indian restaurant goers is no convenience eater, unlike the Americans. If he is paying, he is paying for food that tastes good (Spicy, soft, savory etc.), not for how pleasantly the stuff is served or how spotless the widows are. He wants food for that can make him come back to the restaurant. Customer loyalty in a restaurant business is essentially low. A customer when he comes to a restaurant usually looks at the quality of food, variety, ambience, speed of delivery and the location. The variety would influence the frequency of visits since taste is a dominating factor to the Indian customers. Almost all the fast food chains both Indian i.e., Nirulas and foreign i.e., McDonalds etc., are targeting the families. This serves to be an advantage because the turnaround time is short and family has higher propensity to spend because different members order larger variety of dishes. Each of these restaurants delivers quality, value and services in its own way through its line of strategies. The emphasis is on the value that the restaurant is delivering to the customers.

COMPANY PROFILE

History and Background of Mc Donald

In 1955, Ray Kroc, a 52-year old salesman of milkshake mixing machines, became interested in a string of seven restaurants owned by Richard and Maurice McDonald. These two founded the quick service restaurant industry when they converted their barbecue drive in with car hops into the worlds first McDonands limited menu, self service drive-in in 1958, in California. Kroc liked their fast-food restaurant concept and bought the Chain for $2.7 million. He opened his first McDonalds in Illinois in April 1955 and founded the company that evolved into McDonalds Corporation. He decided to expand the chain by selling Franchises, and the number of restaurants grew rapidly.
Worldwide Operations

MCDONALDS IS THE LARGEST AND BEST-KNOWN GLOBAL FOODSERVICE RETAILER WITH MORE THAN 30,000 RESTAURANTS IN 121 COUNTRIES. THEIR OUTSTANDING BRAND RECOGNITION, EXPERIENCED MANAGEMENT, HIGH-QUALITY FOOD, SITE DEVELOPMENT EXPERTISE, ADVANCED OPERATIONAL SYSTEMS AND UNIQUE GLOBAL INFRASTRUCTURE POSITION THEM TO CAPITALIZE ON GLOBAL OPPORTUNITIES. THEY PLAN TO EXPAND THEIR LEADERSHIP POSITION THROUGH GREAT TASTING FOOD, SUPERIOR SERVICE, EVERYDAY VALUE AND CONVENIENCE. THEIR EFFORTS TO INCREASE MARKET SHARE, PROFITABILITY AND CUSTOMER SATISFACTION HAVE PRODUCED GOOD RETURN TO SHAREHOLDERS A COMPOUND ANNUAL TOTAL RETURN OF 12 PERCENT FOR THE TEN YEARS ENDED DECEMBER 31,2001. McDonalds is the largest and the best-known global food service retailer. Its global market potential is enormous seeing the member of restaurants it has. On any day McDonalds serves less than one percent of the worlds population. Its outstanding brand recognition. (It is one of the most recognized brand all over the world), experienced management, high quality food, site development, high quality food, site development expertise, advanced operational systems and unique global infrastructure position it to capitalize on global opportunities.

Number of Restaurants Country USA Europe Asia Pacific Latin America Canada, Middle East And Africa Other Total 2004 12804 5,460 6,260 1,510 1,665 1,008 28,707 1998 11,368 2,597 2,735 584 1,105 0 18,299

Vision of Mc Donald
McDonalds Vision is to dominate the global food service industry. Global dominance means setting the performance standard for customer satisfaction and increasing market share and profitability through successfully implementing convenience value and exception strategies. In order to expand its operation McDonalds goes by a simple thumb rule to estimate haw many outlets it wants: One restaurant for every 25,000 people with new markets sprouting in so many parts of the would, the chain is expanding at a breathtaking pace of one restaurant every three hours. This can be known from the following:

McDonalds franchises restaurants in many international markets, and decisions relating to the selection of candidates are made local by the management in the country where the restaurant is located.
McDONALDS INDIA -A locally Owned Company

McDonalds India is a locally owned company managed by Indians. In Mumbai Amit Jatias company, Hard castle restaurants Pvt. Ltd., owns and manages McDonalds restaurants. In Delhi, McDonalds restaurants are owned and managed by Vikram Bakshis Connaught Plaza restaurants Pvt. Ltd. Both these individuals are responsible for the running of McDonalds India. Local Sourcing is Key for Truly Indian Products Around the world, McDonalds traditionally operates with local partners or local management. In India too, McDonalds purchases from local suppliers. McDonalds constructs its restaurants using local architects, contractors, labour and - where possible - local materials. McDonalds hires local personnel for all positions within the restaurants and contributes a portion of its success to communities in the form of municipal taxes and reinvestment. Its 98% of the inputs are obtained domestically. McDonalds sources food products from local companies. Mutton patties are supplied by Al-Kabeer, Hyderabad, Andhra Pradesh; fresh lettuce comes from Pune, Ooty, Maharashtra and Dehradun; cheese from Dynamix Dairies, Baramati, Maharashtra; sesame seed buns and sauces from Cremica Industries Phillaur, Punjab, and pickles from VST Natural Foods, Hyderabad, Andhra Pradesh. Setting Up of an Extensive Food Chain For three years before the opening of the first McDonalds restaurant in India,

McDonalds and its international supplier partners worked together with local Indian companies to develop products that meet McDonalds vigorous quality standards. These standards also strictly adhere to Indian Government regulation on food, health and hygiene. Part of this development involves the ability to compete in todays international markets. For instance, Ceramic Industries worked with another McDonalds supplier from Europe to develop technology and expertise that allowed Ceramic to expand it business from baking to also providing breading and batters to McDonalds Indian and other companies. Another benefit is expertise in the areas of agriculture that allowed McDonalds and its suppliers to work with farmers in Ooty, Pune and Dehradun and other regions to cultivate high quality lettuce. This includes sharing advanced agricultural technology and expertise like utilization of drip irrigation systems, which reduce overall water consumption and agricultural management practices, which result in greater yields. In some cases, these Indian suppliers had the technology - but no market for the products they produced. For example, Dynamix Dairies -- through its relationship with McDonalds was introduced to a large customer of milk casein and other milk derivatives. The two companies entered into a business relationship resulting in an initial export order of approximately US $ 12 million per year - with the potential to increase. McDonalds local supply networks through Radhakrishna Foodland, to get products from the various suppliers to restaurants in Delhi and Mumbai. transfer of state-of-the-art food processing technology, which has enabled Indian business to grow by improving their

Respect for the Indian Customs and Culture McDonalds worldwide is well known for the high degree of respect to the local culture. McDonalds has developed a menu especially for India with vegetarian selections to suit Indian tastes and culture. Keeping in line with this McDonalds does not offer any beef or pork items in India. McDonalds has also re-engineered its operations to address the special requirements of a vegetarian menu. Vegetable products are prepared separately, using dedicated equipment and utensils. This

separation of vegetarian and non-vegetarian food products is maintained throughout the various stages of procurement, cooking and serving. Quality, Service, Cleanliness and Value The McDonalds philosophy of QSC & V is the guiding force behind its service to the customers. McDonalds India serves only the highest quality products. All McDonalds suppliers adhere to Indian government regulations on food, health and hygiene while continuously maintaining McDonalds own recognized standards. All McDonalds products are prepared using the most current, state-of-the-art cooking equipment to ensure quality and safety. At McDonalds the customer always comes first. McDonalds India provides fast, friendly service - the hallmark of McDonalds, which sets its restaurants apart from others. McDonalds restaurants provide a clean, comfortable environment especially suited for families. This is achieved through McDonalds stringent cleaning standards, carefully adhered to. McDonalds menu is priced at a value that the largest segment of Indian consumers can afford. McDonalds does not sacrifice quality for price - rather McDonalds leverages economies of scale to minimize costs while maximizing value to customers. McDonalds has a 20-year profitability plan for India and it intends having at least 50 restaurants here by the year 2000. The company has already invested Rs. 50 crore in its Indian operations, and each of the two joint venture partners has invested about Rs. 17.56 crore.

MARKETING FUNCTIONS
Mc Donalds started its operations in India in October 1996 and by July 1998 it has served about 10 million customers in the country. Mc Donalds marketing philosophy is captured in its motto of Q.S.C.V., which is the guiding force behind its service to the customers. Mc Donalds India serves only the highest QUALITY products. All Mc Donalds suppliers adhere to Indian government regulations on food, health and hygiene while maintaining Mc Donalds own recognized standards. All its products are prepared using the most current, state of the art cooking equipment to ensure quality and safety. At Mc Donalds, the customers always come first. Mc Donalds India provides fast friendly SERVICE the hallmark of Mc Donalds that sets its restaurants apart from others. Its restaurants provide a CLEAN, comfortable environment especially suited for families. This is achieved through Mc Donalds stringent cleaning standards, carefully adhered to. Mc Donalds menu is priced at a VALUE that the largest segment of Indian customers can afford. Its strategy in India is to target the plain and simple mass market. The target consumers for Mc Donalds are the family and the kids. Mc Donalds has been positioned as a Family Restaurant.

Product Information
The Original Menu The original McDonalds menu was simplicity itself-hamburgers (15 cents), cheeseburgers (19 cents), fries (10 cents), soft drinks (10 and 15 cents), coffee (10 cents), and shakes (20 cents). This limited menu concept triggered the fast food concept because focusing on just a few items that were prepared with standardized procedures made food service a model of efficiency. McDonalds Taste Around the World.

Internationally, our restaurants offer our standard menu items, and occasionally develop other items, which appeal to our host countrys cultural preferences. Some McDonalds restaurants service items such as: rice dishes and fried chicken in Japan; beer in Germany; Kiwi burgers in New Zealand; spaghetti in the Philippines; and in Islamic countries, like Saudi Arabia, our restaurants offer a Halal menu. Canada Cheese, vegetable, pepperoni and deluxe pizza Uruguay McHuevo - A hamburger with a poached egg on top Thailand Samurai Pork burger- a sandwich marinated with teriyaki sauce Philippines McSpaghetti- Pasta in a sauce with frankfurter bits New Zealand Kiwiburger- A hamburger with a fried egg and slice of beet Japan Chicken Tatsuta A fried chicken sandwich spiced with soy sauce and ginger Frankfurters, beer and a cold four-course meal

The Big Idea Called Big Mac

This sandwich was the brainchild of Jim Delligatti, one of McDonalds earliest owner/operators. Delligattis restaurants near Pittsburgh, Pennsylvania, struggled with sub-par volume and he was convinced the way to broaden his customer base was to broaden the menu. In 1967, McDonalds agreed to let him test a large sandwich that featured two 10:1 patties, which he called the Big Mac. Ralph Lanphar, then Regional Manager in Columbus, helped garner support for the Big Mac test from McDonalds top

management. Test results in each of Delligattis restaurants showed at least a 12 percent sales increase. Soon, the product was added to other test markets, and when it scored 10 percent or better sales gains in every test, the Big Mac was put into national distribution by late 1968. It is now our flagship sandwich. Happy meal Since 1979 the Happy Meal has been making kids visits that much more special. Clubs the world over collect Happy Meals toys and boxes.

New Products Desserts: Fruit n Yogurt Parfait Salads: Chef Salad Garden Salad Griolled Chicken Caesar Salad Salad Dressings: Caesar Dressing Fat Free Herb Vinaigrette Dressing Honey Mustard Dressing Ranch Dressing Red French Reduced Calorie Dressing 1000 island Dressing

INDIAN SCIENARIO
Happy Birthday, Maharaja Mac! McDonald in India Oak Brook, IL- Where in the world can you get a Maharaja Mac Since the opening of Indias first restaurant in New Delhi, one year ago McDonalds has served more than 350,000 Maharaja Macs, Indias signature McDonalds sandwich During its first twelve months in India, McDonalds has opened seven restaurants four in Delhi and three in Mumbai- to meet the demands of the six million customers who visited the restaurants in McDonalds inaugural year. The company plans to more than double its presence in Indian in 1998, ending the year with 20 restaurants. When McDonalds opened in India, it came up against the obvious problem; their profits were founded on selling billions of beef patties how could it succeed in a Hindu country ? No problem, said McDonalds corporate chefs, we will invent a mutton burger. And thus was born the Maharaja Mac, alias the Goat Burger. McDonalds worked with its local, Indian partners to adapt the menu to meet local tastes and needs. As the old advertising jingle goes, the Maharaja Mac is made of: two all lamb patties, special sauce, lettuce, cheese pickles, onions on a sesame seed bun. The famous sandwichs main ingredient, beef, was replaced out of respect for the local Hindu population of India. It was a disaster from the beginning. The taste, the smell, and the texture nothing was right. If you were used to the real thing the beef hamburger then this variation left you deeply unsatisfied. Small wonder then that, last month, the Goat Burger uttered its last bleat and went off into fast food heaven along with such previous

McFailures as the Roast Beef Sandwich, The Triple Ripple Ice-Cream and the Deep Sea Dory. McDonalds now concentrates on selling the kind of fast food that Indians really like: anything deep-fried and smothered in sauce. Consumers who dont realize that the chicken burger is breaded and deep-fried now convince themselves that they are eating healthily because it is white meat. But then, what can be expected from a chain whose breakthrough in the dessert market came when a franchisee decided not deep fry his apple pie? The Hamburger purists will tell that it is a dish on its last legs. The ideal hamburger should consist of a patty made from ground fillet mignon and cooked rare, but its descent into fast-food land has ensured that most us see it as a slender slice of meat, slathered in condiments, with no real taste of its own. On the whole the real hamburgers best days are over. It survives, in its fast-food avatar, largely as a dish for people who want something to eat with French Fries. In the Far East, McDonalds has introduced some interesting variations (such as the Samurai Pork Burger) but it is the fries that taste so much better in South East Asia. The changes didnt end with product re-formulations which also include a specially developed vegetable burger, vegetable nuggets and locally flavored dipping sauces like chili and macula the commitment required operational changes as well. At McDonalds two different menu boards are displayed in each restaurant green for vegetarian products and purple for nonvegetarian, making it easier for customers to see their options and make their choices. Behind the counter, restaurant kitchens have separate, dedicated preparation areas for the meat and non-meat products and even crew assigned to the products cooking have different uniforms to distinguish their roles. These extra steps are

taken to assure Indian customers of the wholesomeness of both products and their correct preparation. McDonalds is the world largest food service organization with more than 22000 restaurants in 106 countries on five continents.

Product Related Strategies

World over Mc Donalds is known for its juicy beef burgers. But in order to settle in India the entire concept of beef burgers had to be changed. India is the only country where Mc Donalds is offering veggie burgers and non-veg burgers without beef (uses mutton instead). This is a classic case of Product Adaptation, where Mc Donalds adapted its product according to the culture and norms of the country in order to position itself in the market. There have been other product adaptations too. Mc Donalds sells a spicier Maharaja Mac in India as its flagship product in place of the globally famed Big Mac. It also has a large capacity for vegetarian burgers, the production and serving of which is separated in such a way that the customer can actually see it. Mc Donalds product line is almost similar to other burger chains in the country. Burgers Desserts Beverages/shakes Assorted items. Product standards, packaging, quality, processing are all the same like at any other Mc Donalds outlet in the world. The quality standards are so stringent that nowhere not even is its rawest state, is any of the food touched by hand. The typical burger undergoes 54 checks before it is served. The menu at Mc Donalds has remained more

or less the same over the past 2 years except a couple of additions in the burgers variety and inclusion of couple of items in the dessert variety. Mc Donalds even has the calorie count carefully worked out for its burgers. A veg burger offers 418 calorie, 10 gm of protein, 22gm of fat and 48 gm of carbohydrate. All Mc Donalds menu items fit into a balanced diet and it offers certain items that fit well within a low fat diet (option of burger with or without cheese).

Pricing Strategies
Worldwide Mc Donalds is known for its Purchasing power pricing. The ability to pay-of a large section of customers has been the sole criteria. This was assessed through market research. It wanted to price its products in such a way that it can even be accessible to a child. For this it examined Indian spending on snacks and other foods before setting on the prices. The company continued with the 1996 prices for about a year in order to meet its one million target audience. One look at the restaurant and it doesnt seem that the prices of its products would be this low. Reason being that Mc Donalds gets the materials (55 per cent of an outlets running expenses) at very cheap rates. Therefore this is one of the reasons that Mc Donalds products are priced reasonably. It buys its supplier from 35 suppliers who sell at incredibly low prices. Products at Mc Donalds are neither elitist in its pricing nor at the dhaba level, they are average in its pricing. Mc Donalds was offering a softie at a price of Rs 6/- about few years back. Today this softie costs only a rupee more at Rs.7/-. No restaurant of this caliber offers a product at this rate. Mc Donalds recently has come up with Economeals, in which one can afford to have a burger and coke for as little as Rs. 29/- and at max for Rs. 49/- (In store

pamphlet enclosed) Mc Donalds keeps on coming up with such meals almost every month such that almost anyone can afford to have a Mc Donalds product.

Promotional Strategies
Mc Donalds ad line goes like:

Food Family Fun

Mc Donalds had started its promotional activity with local area banners and posters and now it has moved on to movie hall commercial. Its commercial is a 60-second close up which focuses on a burger being prepared in slow motion tantalizing the audience as though its a strip tease. It has even started advertising through local channels such as siti cable. Mudra is the ad agency, which puts up publicity banners in Delhi and Mumbai and takes up the local T.V. commercials. Newspapers such as Delhi times are also being used for local advertising. McDonalds plans to advertise in national newspapers such as Hindustan Times and Times of India in another couple of months. In addition to this Mc Donalds also has a public relation agency handling its account that takes care of publicity and press releases. McDonalds keeps on coming up with sales promotion schemes every now and then. During World Cup Soccer it came up with this soccer game for Rs.11/- with every meal combo ordered. Since kids are the prime targets by the restaurant, it has come up with happy meals especially for the kids along which a game is free. Also, for the kids Mc Donalds is the most happening place for birthday parties kids love the place due to all the attention and knick knacks they are showered with. The restaurant even has playpens displayed especially for the kids. McDonalds also comes up with special schemes during the festive season Last month i.e. September, during Navratras it came up with special Shudh Shakahari Meal where a meal for two was for Rs. 99/- and a meal for four was for Rs. 199/- (In store pamphlet enclosed). Another way through which Mc Donalds is promoting its image

is via community services. There are Mc Sermons on maintaining parks, conducting litter patrols and putting up public trash cans. At majority of McDonalds restaurants, the management emphasizes on developing parks for the kids as a playground for them. E.g. At McDonalds G.K. restaurant there is a playground developed for the kids in front of the restaurant. The management has put

boards at these parks to put across certain messages for the community as a whole, such as : If you see someone without a smile, give them one of yours Children are the light of our future etc. In addition to all these promotional measures, McDonalds has boards put all over the roads to show directions to their restaurant. These boards are put almost two to three kms before the location of the restaurant. This makes it easier for the customer who is not familiar with McDonalds restaurant location.

Mission Statement
Leadership Maintain our relationship of the Indian cement industry Throughout the continuous modernization and expansion of our Manufacturing facilities and activities marketing network Profitability-Achieve a fair and reasonable return on capital by promoting productivity throughout the company Growth- Ensure a steady growth of business by strengthening our position in the cement industry. Quality- Maintain high quality of our products and services and ensure their supply their supply at fair prices. Equity- Promote and maintain fair industrial relations and an environment for the effective involvement, welfare, and development of staff at all levels. Pioneering- Promote research and development efforts in the areas of product development and energy, and fuel conservation and to innovate and optimize productivity. and through establishment of a wide and efficient

INTRODUCTION
Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need is called a product and the set of all actual and potential buyers of a product or service comprise its market. A product may include physical objects, services, persons, places, organizations, and ideas. Then, it is quite obvious that a product is of no use unless & until it has a market for itself & a market cannot thrive without products. The market for Fast food joints include all age people who believe in moving out for fun and have enough deposable income. That is the reason most of the fast food joint are situated in the cities where the income level is high. The aim of McDonalds- India is to target the plain and simple mass market. The target consumers for Mc Donalds are the family and the kids. Mc Donalds has been positioned as a Family Restaurant. Any Company goes for innovations according to the taste and demand of the customers to exist in the competitive environment. McDonald is into continuous innovation and introduction of new products in the market.

Product Development Strategies of McDonalds

The variety influences the frequency of visits since taste is a dominating factor to the Indian customers. Almost all the fast food chains are targeting the families. This serves to be an advantage because the turnaround time is short and family has higher propensity to spend because different members order larger variety of dishes.

As Mc Donald is a Standardized company and is famous for its standard product through out the world. It generally does not go for innovations on large scale. The New Product Development Strategies of Mc Donald is based on the area or region it caters to. The product development in Mc Donald is in three steps International Level

International Level Product Development is based on the idea and taste of the whole world. This development is done to cater the whole world. Regional Level

Few products are developed on regional level keeping in mind the taste and preference of the customers according to the area. For instance Mc Donalds came in India with the burgers containing beef but keeping the Indian customers in mind they had to change it to chicken burgers. Local Level

Product Development in local level is rarely seen in Mc Donalds. This development is done keeping in mind the taste of the customers in that area. For instance it introduced Mc Aloo Tikki according to the taste of North Indians.

PROBLEM AND NEED OF RESEARCH

Everything good and positive has a sour side to it. The same for this concept ventured by Mc Donald is that, the company is into continuous introduction of new products in the market but many people restrict to the menus that they do not like to change. A consolidation of these and a lot of other factors has hindered the awareness and trial of new products offered by Mc Donalds. Out of the above said, a need was there to conduct a survey which would show that whether customers are aware of the products offered by Mc Donalds and what are the attributes of the products which attract them. The major focus of the research conducted, therefore was basically discovering the other factors which act as attracting agent.

OBJECTIVES OF RESEARCH To find the frequency of New Product Introduction. To find that whether customers are aware of new products in time and the source of information. To find out the factors that make customers try new products.

Market Research is a systematic and objective study of problems pertaining to the marketing of goods and services. It is not restricted to any particular area of marketing but is applicable to all its phases and aspects. In other words it is the function that links the consumer, customer and the general public that comes under the purview of the target audience. The objective of this research definitely goes in sync with the above definition because the respondents included in the study are the people who are regular customer of McDonald

Research Design The research conducted was of the Descriptive type because first the objective of the research was clear and specific and second the motive was to determine the awareness of new products among the customers of Mc Donald.

Sources of Data Primary Data Questionnaires Interviews

For the purpose of collecting maximum primary data, a structured questionnaire was used wherein questions pertaining to the general awareness of people about McDonalds

Products, the attribute of the products, which make them try the product etc, were incorporated. Also, people from the company and Mc Donald outlets were interviewed telephonically & personally to study the products of Mc Donald and the frequency of new product introduction in the market. Secondary Data Internet Articles, Newspapers

The data that were gathered for the prior information of the details about Mc Donald and its products were through the company website, the articles and newspapers.

Sample Design Convenient Sampling

Sample Size No of People Approached: 70 No of respondents: 54 Thereby, the sample size surveyed was 54.

Scope
This study is restricted to only 50-60% of our target audience; the respondents included in the study are people who are the regular visitors of McDonald.

DESIGNING AND ADMINISTRATION OF QUESTIONNAIRE The questionnaire was designed keeping in mind many bases. I have kept 8 questions for the fulfillment of our objective. Questionnaire was one of the primary data about information.

I wanted to get familiar with certain general information like age and profession of the respondent because the psychology of a person varies with their age and their level of thinking differs with their profession. By knowing the age and profession of the respondents it will be easy to know that which kind of people are interested in trying different products frequently.

By knowing the frequency of visit of the respondents it will be easier to know that whether the people who are visiting Mc Donald frequently are aware of new product introduction or not.

Question no2 was asked to know about the liking of people for new products. It was necessary to know that people who like product innovations are aware of the introduction of new products or not. It was also important to know that people who are aware of new products in the fast food market are interested in the products or they want to restrict themselves to certain products.

Knowing about the customers knowledge of the innovation in the products will through light on their awareness of new products in time. Question No 3 and 4 through light on this aspect.

Whenever a company launches a product in the market it tries to communicate this message to the target audience properly otherwise no on will come to know about any introduction. To know about the source of awareness of new products was also one of the major concerns of the research. Few parameters are given in the question, which has to be ticked. These were: o Advertisement Advertisement is the source of information to the people as most of the information regarding the products offered by Mc Donald is advertised.

o Friends There are a lot of people who try different new products. It is quite possible that they must have spread information among their friends.

o Visit to Mc Donald Visit to a Mc Donald is one of the major sources of information about the products.

o Pamphlets Pamphlets are also one of the sources of information about the products launched in the market.

It was important to know the position of Mc Donald in the area of new products according to customers preference. The major players in the fast food industry in India including Mc Donald are Nirulas, Pizza Hut, Wimpy and Subway.

There are certain attributes of a product that attracts customers to go for it. To find out the factors that make customers try new products was one of the objectives of research. Certain parameters were found on the basis of secondary data collection and after pre testing that attract customers to try new products. These areo o o o o o Price Look The way it is served Quantity Advertisements Scheme & Promotion

MARKETING STRATEGIES

INTRODUCTION AND IMPORTANCE OF MARKETING STRATEGIES

Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable advantage. A marketing strategy should be centred on the key concept that customer satisfaction is the main goal. Marketing strategy is a method of focusing an organization's energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements; identifies the firm's marketing goals, and explains how they will be achieved, ideally within a stated timeframe. Marketing strategy determines the choice of target market segments, positioning, marketing mix, and allocation of resources. It is most effective when it is an integral component of overall firm strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena. Corporate strategies, corporate missions, and corporate goals. As the customer constitutes the source of a company's revenue, marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement.

Importance of Marketing Strategy

The importance of marketing plans outweighs any other decision that can be taken in the realm of marketing strategies. Yes, marketing plan is essential to grab the market segment before any other player captures the market. What are the target groups? Which segment of the market presents higher revenue generating opportunities? These are some of the questions that marketing teams ponder over, in the pursuit of achieving a good plan. This is where the importance of marketing research comes into picture. The market research team analyzes and understands the requirements of the consumers. Conducts polls and researches and comes up with data and statistics that help to logically target a market. Another factor that governs the marketing plans is the marketing mix elements. Marketing mix elements are the sets of factors that help firms to achieve their targets of reaching the products to the consumers and also achieve organizational objectives. The importance of marketing mix is, that it takes into MCDONALDount the four P's of marketing, that are Product, Price, Promotion and Place of distribution.

MARKETING MIX OF THE COMPANY

MARKETING MIX

The term "marketing mix" was first used in 1953 when Neil Borden, in his American Marketing Association presidential address, took the recipe idea one step further and coined the term "marketing-mix". A prominent marketer, E. Jerome McCarthy, proposed a 4 P classification in 1960, which has seen wide use. The four Ps concept is explained in most marketing textbooks and classes. Four P's Elements of the marketing mix are often referred to as 'the four Ps':

Product - A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are service based like the tourism industry & the hotel industry or codes-based products like cellphone load and credits. Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system. Packaging also needs to be taken into consideration. Every product is subject to a life-cycle including a growth phase followed by an eventual period of decline as the product approaches market saturation. To retain its competitiveness in the market, product differentiation is required and is one of the strategy to differentiate from its competitors.

Price The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have the same product.

Place Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet. Place is not exactly a physical store where it is available Place is nothing but how the product takes place or create image in the mind of customers. It depends upon the perception of customers.

Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements: advertising, public relations, personal selling and sales promotion. A certain amount of crossover

occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from cinema commercials, radio and Internet adverts through print media and billboards. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations (see Product above).

STP ANALYSIS OF THE COMPANY

Segmentation MCDONALD cement has segmented its customer in the following ways: Understanding needs and preferences of consumers -- Having housing, infrastructure, and commercial construction, as demand drivers, the company analyze the needs and preferences of consumers in these sectors. Grouping customers based on their needs and preferences -- Customers with similar needs and preferences are included in this segment. Targeting the segment that the company can best meet the needs and preferences of - The Company targets the customers, of which it can meet the needs and preferences. I.e. customer needs higher- strength or low price. Branding the commodity -- Though being a commodity product, branding is important for a cement company. The company positions its brand among Architects and Builders rather than household individuals. Provide required product to meet targeted customers' needs and preferences -- Delivering up to the expectations of the targeted segment.

Targeting
Its customer base represents the masses of India - individual homebuilders in small towns, rural and semi-urban India. The company targets on the important projects like dams, roads in the country It targets the Manufacturing companies like L&T etc It Targets Indian Railways. It targets an individual building his home(Retail Marketing)

Positioning
A good brand positioning help guide marketing strategy by clarifying the brands essence but goals it help the consumer achieve and how it does so in a unique way. The result of the positioning is the successful creation of a customer focused value proposition, a cogent reason why the target market should buy the product.

BCG MATRIX OF THE COMPANY

MCDONALDordingly, the BCG matrix divides products/businesses into four Categories:

Stars: These high growth products in a fast growing market need more resource commitments. Cash Cows: These are low growth, high market share products, where minimal investments are envisaged. Indeed, cash cows provide the cash flows that support other businesses. Question Marks: These are low market share business units in high growth markets. Investment is needed to build them into stars Dogs: These are low growth and low market share businesses which generate just enough cash to maintain themselves. They are businesses from which the company is likely to withdraw in the near future.

PEST ANALYSIS Political Taxation policy Environmental protection laws Employment laws Economical Inflation Employment Disposable income Business cycles Energy availability and cost Social Demographics

 Distribution of income Social mobility Lifestyle changes Consumerism Levels of education

Technology New discoveries and innovations Speed of technology transfer Rates of obsolescence Internet Information technology

PORTERS 5 FORCES

MODEL

Market segmentation It is the act of dividing a market into distinct groups of buyers who require separate products. Its market research division has segmented consumers on the basis of following: 1. Geographic variables 2. Demographic variables 3. User status and lifestyle Market targeting Act of developing measures of segment attractiveness. Involves evaluating various market segments. It targets different segments of population of all categories of age groups. Also targets the population outside India. Market positioning Indias largest company. MCDONALD MOTORS is market capital and no.5 in sales and profit. MCDONALD is the market leader. They are the highest contributor in revenue. Marketing strategy adopted Advertisement 1. Television 2. Radio 3. Internet 4. Newspaper/magazines 5. Hoardings

BCG MATRIX

In the early 1970's, BCG Matrix first propounded by Bruce Henderson of the Boston Consulting Group. It is also known as BCG matrix, Boston Consulting Group Matrix, BCG Growth-Share Matrix or Matrix Quadrants. Using the Product Portfolio Matrix approach, a company classified all its SBUs or Products/Markets MCDONALDording to Growth-Share Matrix. Therefore, it is best describe as Portfolio planning model. In this Matrix Quadrants, the plate is divided 4 categories named A. Star B. Cash Cow C. Question Mark D. Dog The division is based on Market Share and Growth rate. A brief discussion comes follow: A. Star: Leader [i.e. high market share] of high growth market is called star. These SBUs are net user of cash, because they always require heavy investment to finance rapid growth and to sustain market share. When the product comes to mature

stage, then the growth slow down and they turn to cash cow. B. Cash Cow: Cash cows are low growth but high market share (Market leader) businesses or products. Their high earnings, coupled with their depreciation, represent high cash inflows and they need very little in the way of reinvestment. And thus, they are the net provider of cash. Surplus cash are used for Research and Development and to support other SBUs that need investment. C. Question mark: Products in a growth market with low market share are categorized as Question Mark. Because of growth, these SBUs require a lot of cash to hold their market share and let alone to increase it. If nothing is done to increase the market share, a Question mark will simply absorb large amount of cash in the short run and later, as growth slow down, become a dog. Thus, unless something is done to change its perspective, it becomes a cash trap. Management has to decide which question marks should try to build into stars and which should be phased out. D. Dog: Dog are low growths, low market share SBUs. They may generate enough cash to maintain themselves, but do not promise to be large source of cash. Most often case, it should be liquidate and try with Question mark SBUs for investment. Market Growth Rate and Relative Market Share play important roll in BCG Matrix. Market Growth Rate is the measure of industry attractiveness and Relative Market Share is the measure of Competitive advantage. Therefore, these two are most important factors to consider organizations profitability and strategic plan.

Extended Marketing Mix (3 Ps) Now a days three more Ps have been added to the marketing mix namely People, Process and Physical Evidence. This marketing mix is known as Extended Marketing Mix.

People: All people involved with consumption of a service are important. For example workers, management, consumers etc Process: Procedure, mechanism and flow of activities by which services are used. Physical Evidence: The environment in which the service or product is delivered, tangible are the one which helps to communicate and intangible is the knowledge of the people around us.

UNIQUE SELLING PROPOSITION

To best position your practice, you need to develop a powerful and compelling unique selling proposition (USP). What is a USP? A unique selling proposition is a proposition that competitors cannot make or have not made.

MARKETING PROCESS
Understand the Marketing Place, Needs, Wants & Demand Designing a Customer Driven Strategies Prepare a Marketing Plan Building Customer Relationship Capture value from customers in return

1. Designing a Customer Driven Marketing Strategy:

Their main strategy that they still follow today is the diversification of products they offer. MCDONALDording to customers demand they make their strategies by keeping following points in mind; Which customer they will serve?

Which customer they will serve?

They serve their customers on the bases of income level, age through market segmentation.

Their main segment which they has captured are combination of higher incomes & dual career families.

How will they serve these customers?

They fulfill their customers demand through;

Value proposition Positioning Unique selling proposition (USP)

3. CAPTURE VALUE FROM CUSTOMER IN RETURN:

Committed to providing uncompromising product quality offering customers the highest value for money & giving service that is warm, friendly & personal. They also follow social factors to maintain their image through corporate social responsibility.

4. Designing a Customer Driven Marketing Strategy:

Their main strategy that they still follow today is the diversification of products they offer. MCDONALDording to customers demand they make their strategies by keeping following points in mind;

FINANCIAL ANALYSIS

SOURCES OF FINANCE
Share holders Fund Shareholder funds is all the money belonging to common stock shareholders which includes the balance of share capital, all profits retained and money classified as reserves. Loan Funds A Loan Fund is a source of money from which loans are made for small business development projects. A loan is made to one person or business at a time and, as repayments are made, funds become available for new loans to other businesses. Hence, the money revolves from one person or business to another. Deferred Tax Liabilities An MCDONALDount on a company's balance sheet that is a result of temporary differences between the company's MCDONALDounting and tax carrying values, the anticipated and enacted income tax rate, and estimated taxes payable for the current year. This liability may or may not be realized during any given year, which makes the deferred status appropriate.

RATIO ANALYSIS Current Ratio shows an average ratio of 1.21which is less than the ideal ratio is 2:1. Cash Ratio shows as average greater than its ideal ratio that is 0.5. Debtors Turnover Ratio shows the amount of credit sales has been increased, collection period is derived as 18 days In the calculation of Working capital Turnover Ratio there is an adequacy of fund except the year 2009-2010. Gross profit ratio is fluctuating during the period of study.

 Inventory Turnover ratio implies that the Inventory has been utilized efficiently.

RATIO CURRENT RATIO QUICK RATIO CASH RATIO DEBTORS TURNOVER RATIO NETASSETS TURNOVER RATIO CURRENT ASSETS TURNOVER RATIO INVENTORY TURNOVER RATIO DEBT EQUITY RATIO EQUITY RATIO NET PROFIT RATIO

FY09 1.31 0.91 0.95 27.12 1.33 2.89 7.49 0.49 0.72 20.92

FY10 1.07 0.72 0.76 24.22 1.41 3.18 6.79 0.50 0.84 20.53

1.

Methods or Devices of Financial Analysis:

A Number of methods or devices are used to study the relationship between different statements. The following methods of analysis are generally used: i. ii. iii. iv. v. vi. vii. Comparative statements Trend analysis Common size statements Funds flow analysis Cash flow analysis Ratio analysis Cost-volume-profit analysis In this project the Comparative Statement and Ratio Analysis is used to study the financial statement of Orissa State Co-operative Bank Ltd.

Comparative statements:
The comparative financial statements are statements of the financial position at different periods of time. The elements of financial position are shown in a comparative form so as to give an idea of financial position at two or more periods. Any statement prepared in a comparative form will be covered in comparative statements. From practical point of view generally, two financial statements 1. Balance Sheet 2. Income Statement

Comparative balance sheet

The comparative balance sheet analysis is the study of the trend of the same items, group of items and computed items, group of items and computed items in two or more balance sheets of the same business enterprise on different dates. The changes in periodic balance sheet items reflect the conduct of a business. The changes can be

observed by comparison of the balance sheet at the beginning and at the end of a period and these changes can help in forming an opinion about the progress of an enterprise. The comparative balance sheet has two columns for the data of original balance sheets. A third column is used to show this increase in figures. The fourth column may be added for giving percentage of increases and decreases.

Guidelines for Interpretation of Comparative Balance Sheet:

While interpreting comparative balance sheet the interpreter is expected to study the following aspects: 1. Current Financial Position and Liquidity Position 2. Long term Financial Position 3. Profitability of the Concern 1. For studying the Financial Position and short term Financial Position of a concern, one sees the working capital in both the years. The excess of current assets over current liabilities will give the figure of working capital. The increase in working capital means improvement in the current financial position of the business. An increase in current assets MCDONALDompanied by the increase in current liabilities of the same amount will not show any improvement in short term financial position. One should study the increase or decrease in current assets and current liabilities and this will enable him to analyse the current financial position. The second aspect which should be studied in current financial position is the liquidity position of the concern. If liquid assets like cash in hand, cash at bank, bills receivable, debtors, etc. show an increase in the second year over the first year, this will improve the liquidity position of the concern. The increase in inventory can be on MCDONALDount of MCDONALDumulation of stocks for want of customers, decrease in demand or inadequate sales promotion efforts. An increase in inventory may increase working capital of the business but it will not be good for business. 2. The long term financial position of the concern can be analysed by studying the changes in fixed assets, long term liabilities and capital. The proper

financial policy of concern will be to finance fixed assets by the issue of either long-term securities such as debentures, bonds, loans from financial institutions or issue of fresh share capital. An increase in fixed assets should be compared to the increase in long term loans and capital. If the increase in fixed assets is more than the long term securities then parts of fixed assets have not only been financed from long term sources. A wise policy will be to finance fixed assets by raising long term funds. 3. The new aspects to be studied in a comparative balance sheet questions is the profitability of the concern. The study of increase or decrease in retained earnings, various resources and surpluses, etc. will enable the interpreter to see whether the profitability has improved or not. An increase in the balance of profit and loss MCDONALDount and the other resources created from profits will mean an increase in profitability to the concern. The decrease in such MCDONALDounts may mean issue dividend, issue of bonus share or deterioration in profitability of the concern. 4. After studying various assets and liabilities an opinion should be formed about the financial position of the concern. One cannot say if short term financial position is good then long term financial position will also be good or vice versa. A concluding word about the overall financial position must be given at the end.

Comparative Income Statement:

The income statement gives the results of the operation of a business. The comparative income statement gives an idea of the progress of a business over a period of time. The changes in absolute data in money values and percentages can be determined to analyse the profitability of the business. Like comparative balance sheet income statement also has four columns. First two columns give figures of various items for two years. Third and fourth columns are used to show increase or decrease in figures in absolute amounts and percentages respectively.

Guidelines for Interpretation of Comparative Income Statement:

The analysis and interpretation of income statement will involve the following steps:

1. The increase or decrease in sales should be compared with the increase or decrease in costs of goods sold. An increase in sales will not always mean an increase in profit. The profitability will improve if increase in sales is more than increase in costs of goods sold. The amount of gross profit should be studied in the first step. 2. The second step of analysis should be the operational profits. The operating expenses such as office and administrative expenses, selling and distribution expenses should be deducted from gross profit to find out operating profits. An increase in operating profit will result from the increase in sales position and control of operating expenses. A decrease in operating profit may be due to an increase in operating expenses or decrease in sales. The change in individual expenses should also be studied. Some expenses may increase due to the expansion of business activities while others may go up due to managerial inefficiency. 3. The increase or decrease in net profit will give an idea about the overall profitability of the concern. Non operating expenses such as interest paid, losses from sales of assets, writing off deferred expenses, payment of tax, etc. decrease the figure of operating profit. When all non-operating expenses are deducted from operational profit, we get a figure of net profit. Some non operating incomes may also be there which will increase net profit. An increase in net profit will gave us an idea about the progress of the concern. 4. An opinion should be formed about profitability of the concern and it should be given at the end. It should be mentioned whether the overall profitability of the concern is good or not.

Focus of Financial Statement Analysis:

Financial statement analysis involves evaluating different aspects of a business enterprise, which are of great importance to different users such as management, investors, creditors, bankers, analyst, investment advisers, etc. generally, the following analyses are made while making Financial Statement Analysis. 1. Liquidity or short term solvency analysis

2. Profitability analysis 3. Capital structure or gearing analysis 4. Market strength or investor analysis 5. Growth and stability analysis

Application of Financial Analysis:

Following are the application of financial analysis: 1. Assessing Corporate Excellence 2. Judging credit worthiness 3. Forecasting bankruptcy 4. Valuing equity shares 5. Predicting bonds ratings 6. Estimating market risk

Limitations of Financial Statement Analysis:

Financial analysis is a powerful mechanism of determining financial strengths and weakness of a firm. But, the analysis is based on the information available in the financial statements. Thus, the financial analysis suffers from serious inherent limitations of financial statements. The financial analyst has also be careful about the impact of price level changes, windows dressing of financial statements, changes in the MCDONALDounting policies of a firm, MCDONALDounting concepts and conventions, and personal judgement, etc. The readers are advised to relate the limitations of financial statements as given in the previous chapter and also the limitations of ratios as a tool of financial analysis as discussed in Ratio Analysis. Some of the important limitations of financial analysis are, however, summed up as below: i. ii. iii. It is only a study of interim reports. Financial analysis is based upon only monetary information and nonmonetary factors are ignored. It does not consider changes in price levels.

iv.

As the financial statements are prepared on the basis of a going concern, it does not give exact position. Thus MCDONALDounting concepts and conventions cause a serious limitation to financial analysis.

v. vi.

Changes in MCDONALDounting procedure by a firm may often make financial analysis misleading. Analysis is only a means and not an end in itself. The analyst has to make interpretation and draw his own conclusions. Different people may interpret the same analysis in different ways.

Overview of Ratio Analysis

Introduction: Ratio analysis is one of the techniques used to analyse the financial statements. It is one of the most powerful tools of financial analysis. It is the process of establishing and interpreting various ratios (quantitative relationship between figures and group of figures). Through ratio analysis financial statement can analyse more clearly and decision made from such analysis. MCDONALDording to MCDONALDountants Handbook by Wixon Kell and Bedford, a ratio is an expression, of the quantitative relationship between the numbers. Nature of Ratio Analysis: Ratio analysis is a technique of analysis and interpretation of financial statements. It is the process of establishing and interpreting various ratios for helping in making certain decision. However, ratio analysis is not an end in itself. It is only a means of better understanding of financial strength and weaknesses of affirm. Calculation of mere ratios does not serve any purpose, unless several appropriate ratio are analysed and interpreted. There are a number of ratios which can be calculated from the information given in the financial statements, but the analyst select the appropriate data and calculate only a few appropriate ratios from the same keeping in mind the objective of analysis. The ratios may be used as a symptom like blood pressure, the pulse rate or the body temperature and their interpretation depends upon the caliber and competence of the analyst. The following are the four steps involved in the ratio analysis:

i.

Selection of relevant data from the financial statements depending upon the objective of the analysis.

ii. iii.

Calculation of appropriate ratios from the above data. Comparison of the calculated ratios with the ratios of the same firm in the past, or the ratios developed from projected financial statements or the ratio of some other firms or the comparison with ratios of the industry to which the firm belongs.

iv.

Interpretation of the ratios.

Use and Significance of Ratio Analysis: Helpful in decision making. Helpful in financial forecasting and planning. Helpful in communication. Helpful in co-ordination. Helpful in Control. Helpful in efficiency appraisal. Helpful in evaluation of financial position. Helpful to investors, financial institution, employee.

HR POLICIES & STRATEGIES

SOURCES OF RECRUITMENT
MCDONALD offers employment opportunities in a wide range of functions. The process of recruitment in MCDONALD is fair and transparent, with adequate opportunities to look for suitable candidates both internally and from outside. Recruitment is a continuous process in MCDONALD. They regularly hold walk-in interviews in principal cities. Campus interviews are arranged in leading institutes and universities. In other cases, applications are invited for specific vacancies announced through advertisements in leading newspapers or announced in this website. However some of the sources are as follows: TRANSFERS The employees are transferred from one department to another MCDONALD ording to their efficiency and experience in MCDONALD limited PROMOTIONS the employees are promoted from one department to another with more benefits and greater responsibility based on efficiency and experience. PRESS ADVERTISEMENTS Advertisements of the vacancy in newspapers and journals are a widely used source of recruitment in the company. The main advantage of this method is that it has a wide reach, so it is used by MCDONALD limited EDUCATIONAL INSTITUTES various management institutes, engineering colleges, medical Colleges etc. are a good source of recruiting well qualified executives, engineers, etc. They provide facilities for campus interviews and placements. This source is known as Campus Recruitment and it is also used by the company LABOUR CONTRACTORS Manual workers can be recruited through contractors who maintain close contacts with the sources of such workers. This source is used to recruit labor for construction jobs. however child labor is not used by the company

RECRUITMENT
Recruitment in MCDONALD is a very fair and transparent process with adequate opportunities to look for suitable candidates internally as well as from outside. Applicants are generally invited on the basis of specific advertisements in newspapers and websites. A Committee of officers called the Central Recruitment Committee handles the entire recruitment process comprising screening of applications, preliminary short-listing, interviews and final selection. Every attempt is made to make the selection process as objective as possible by incorporating tests of competence. In some cases, outside consultants are retained. All decisions of the recruitment committee are recorded in respect of each candidate. Candidates are informed of their short-listing and selection immediately after the interview or at the earliest thereafter. The process of Recruitment in MCDONALD Ltd

1. 2. job

Identify vacancy Prepare

description and person specification 3. Advertising the vacancy 4. Managing the response 5. Short-listing 6. Arrange interviews

TRAINING AND DEVELOPMENT PROGRAMME OF THE COMPANY

Our new Performance Management System incorporates a process called Competency Assessment and Training and Developmental Needs wherein appraisers are specifically called upon to identify and assess training needs of employees at specific intervals that do not coincide with Performance Appraisals. This is so that training needs can be assessed objectively. Training is imparted to take care of an individuals career development as well as functional and skill enhancement. Competency and Development training inputs include Skill and general performance enhancement, communication skills and Career development. Functional training needs are identified and conducted by functional departments while Corporate HR organizes competency and developmental inputs.

BENEFITS OF COMPENSATION SYSTEM

Employee welfare receives prime attention at MCDONALD. We have several schemes for general welfare of employees and their families. These cover education, healthcare, retirement benefits, loans and financial assistance and recreation facilities.

Education
Education is imparted not only to children of MCDONALD employees but also more importantly to children from rural areas who do not have MCDONALDess to any medium of information or education. MCDONALD schools maintain high standards and are open to other children of the vicinity. Often these schools are the most preferred centres of learning in the district and adjoining areas. Wherever possible, MCDONALD provides funds and infrastructure to help set up local schools, colleges and centres for learning and education.MCDONALD townships have excellent schools that are often the best in the district. Education at these schools is subsidized for employees wards. They offer attractive scholarship allowances for children studying at places away from their parents, merit scholarships for outstanding children and financial assistance for employees children to pursue higher professional education.

Health Care

Liberal medical benefits are made available to employees and their family members by way of reimbursements towards normal medical treatment, domiciliary treatments and special sanctions for serious illness. Each of their townships has well-equipped health care centres with qualified medical staff and facilities, ambulance, referrals and tie-ups with reputed hospitals for specialised treatment. In addition, there are regular health checkups, camps and programmes. MCDONALD takes pride in providing various forms of medical assistance to the families of their employees and also to all those living in surrounding villages. Each factory has a medical centre with fullfledged doctors and the latest of basic equipment. Mobile medical services are provided in the vicinity and regular medical camps are held to eradicate diseases, offer medical help, treatment and preventive care.

Financial Assistance
Employees are eligible to apply for loans and financial assistance for various purposes such as purchase of assets, residential premises as well as a scheme that provides for supply of cement at subsidized rates to those building their own houses.

MCDONALDommodation
At our cement plants and factories, employees are provided furnished and unfurnished MCDONALDommodation based on their entitlements. At many locations, the employees are given free electricity, free water supply and free bus facility for nearby places and schools. These houses are well-maintained and periodically upgraded.

Employee Satisfaction
In addition to periodic internal Employee Satisfaction Surveys, They participate in Employee Satisfaction and Work Places Surveys conducted by reputed external agencies and organisations like Hewitt Associates Grow Talent. And from time to time, MCDONALD has also retained reputed firms like Mercer and Boston Consulting Group to study our internal work environment and employee policies and suggest areas of improvement. They share below salient points of the latest survey of employees:

 People are treated fairly regardless of religion and gender MCDONALD is a safe place to work Management is competent in running business Employees feel good about what we do for society Proud to tell others I work here Management thinks positively The overall findings show significant job satisfaction at all levels as also deep respect for the company, its performance management system and its overall business performance. Recruitment for MCDONALD The recruitment and selection is the major function of the human resource department and recruitment process is the first step towards creating the competitive strength and the recruitment strategic advantage for the organisations. Recruitment process involves a systematic procedure from sourcing the candidates to arranging and conducting the interviews and requires many resources and time. A general recruitment process is as follows: Identifying the vacancy: The recruitment process begins with the human resource department receiving requisitions for recruitment from any department of the company. These contain: Posts to be filled Number of persons Duties to be performed Qualifications required

Preparing the job description and person specification. Locating and developing the sources of required number and type of employees (Advertising etc). Short-listing and identifying the prospective employee with required characteristics. Arranging the interviews with the selected candidates. Conducting the interview and decision making

1. Identify vacancy 2. Prepare job description and person specification 3. Advertising the vacancy 4. Managing the response 5. Short-listing 6. Arrange interviews 7. Conducting interview and decision making

The recruitment process is immediately followed by the selection process i.e. the final interviews and the decision making, conveying the decision and the appointment formalities. Instructional Design Of Training Programme In MCDONALD MOTORS The Programme Coordinator While Designing The Programme Schedule Should Notice Following Points: a. The Objective Of The Programme Should Be Clearly Spelt Out. Not Only It Should Be Mentioned In The Programme Schedule But It Must Be Made Clear To Participants Also. b. The Level Of The Participants, Their Existing Knowledge, Skills And Experience Should Be Kept In Mind Before Finalizing The Programme Schedule To Know From What Level Of Knowledge The Trainer Should Concentrate And Carry The Participants With Him Trill Every Aspect Of The Subject Is Cleared. c. Training Can Be Very Interesting, Enriching Experience If The Faculty Provides Variety, Mixing Practical With Theory Sessions, Quoting From Personnel Experiences And Allowing Time For Discussion And Absorption. d. Adequate Time Should Be Available For Doing Justice To All The Subjects. e. Flexibility In The Design Of The [Programme Would Ensure That Participants Do Not Have To Learn Those Aspects Which They Already Know And

Whenever Such Situation Is Faced By The Faculty, Either The Level Of Discussion May Be Increased Or Subject May Be Changed. f. An Inbuilt Feedback System To Facilitate Revision, If Any, Desired By The Participants During The Course Of The Programmed May Be Planned And Some Cushion Periods Should Be Provided. g. The Programme Coordinator Should Prepare Brief Synopsis Of Each Topic To Be Covered During The Programme In Case The Standardized Synopsis Are Not Available And He May Revise Or Improve The Standardized Synopsis Also In The Light Of Latest Developments And Requirements.

MCDONALDMOTORS is Defining Focus & Objective of Programme: Defining The Focus And The Objective Of The Programme Is Very Important Of Designing Programme. In Fact Defining Focus And Objective, Target Group Is Also Important. Objective Of Any Training Programme Is Very Strongly Related To Training Needs Of The Organization & Corporate Expectations From The Training System. Some Of The Usual Objectives Are: a. Developing Of Skills (If Not Existing Earlier) b. Sharpening Of Skills (If Existent But Need Is There To Provide Cutting Edge) c. Building Up a Cadre of A Trained Person. d. Creating Awareness e. Improving Proficiency (To Improve Efficiency And Speed Of Handling Transactions) f. Exposing (To New Developments, Environment) g. Upgrading Of Skills (Like Training Participants From Branch Small/Ssi Loans To Handle Large Borrower MCDONALDounts).

PRODUCTION POLICIES

PRODUCTION LAYOUT
Cement manufacturing need process layout for raw-material preparation, which require crushing, grinding and mixing of the various raw materials such as lime-stone,

clay, bauxite and iron-ore. Once the raw materials are prepared and converted into raw-meal by mixing different raw materials in predetermined proportion, production processes such as pre-heating, precalcining, calcinations for conversion of raw meal into clinker and cooling of clinker would use product layout. Within the plant, workshop activities are arranged by using process layout, whereas the packing and dispatch operations of the cement through trucks need product layout. In cases of repairs of kiln in plant, which cannot be moved, a fixed layout is to be used.

OTHER RAW MATERIALS- DIFFRENT SUPPLIERS IN DIFFRENT PLANT

They have implemented a SAP based Enterprise Resource Planning (ERP) system for the Procurement function. Central procurement is divided into the following major groups: Raw materials Energy, Fuels and Gases Maintenance spares Wearing parts, Consumable materials Administrative & office supplies Services Packing The structure provides for procurement managers at regional level and plants. There is a Separate projects head for procurement of capital equipment and purchases.

SUPPLIER RELATIONSHIPS
MCDONALD treats its vendors as business associates. All vendors are treated with respect and dignity. Our vendor base includes reputed manufacturers and trusted brand names, usually the leading 3-4 vendors of their particular industry segment who are technically and financially sound and have the intrinsic capacity to supply material of desired quality and on time. MCDONALD prefers vendors who demonstrate good corporate citizenship and promote sustainable development.

Adequate care is taken to ensure transparency in procurement processes. Our procurement policy has a clearly defined code of practice for procurement conduct and encourages fair and open competition in markets.

QUALITY CONCEPT USED BY THE COMPANY

Product Development has always been an important activity at MCDONALD, arising out of a focus on quality and process improvement. It has been a constant partner, driving research, innovation and evaluation. MCDONALD has effectively pledged its reputation as the market leader in the quality of cement. Maintaining this lead calls for harnessing the resources and expertise of the company - from applied research and production to marketing. MCDONALDordingly, all MCDONALD factories are equipped with state-of-the-art process control instrumentation and associated quality control and testing laboratories manned by qualified personnel. As a result of this focus on quality, MCDONALD cement specifications exceed those set by BIS by a wide margin. Today, all MCDONALD cement plants have the ISO 9001 Quality Systems certification. This demonstrates our tradition of providing reliable and consistent quality through the application of modern technology, and justifies the preferences of a nationwide customer base.

:: Production Policy :: Group is utilized its production natured over the years to create reliable, safe production lines. A comprehensive schedule is being implemented at all group companies facilities to minimize manpower requirement and streamline operations. ISO certification and production policies as part of group program to guarantee unsurpassed Quality and Reliability. Quality Policy We at HKGROUP is committed to organizational growth by providing precision quality components through enhancing customer satisfaction, controlling waste, by using latest mfg. technology with involvement of all employees and our valued suppliers to achieve excellent quality & on time delivery by continually improving Quality Management System. Quality Objective Reduction in Rejection, rework On time delivery Customer Complaint towards zero Reduce tool cost Minimizing down time Motivating & training to all employees

Health and Safety Policy We firmly believe that, Health and safety of our employees, who are an asset to the company, is most importance. Therefore we are committed to bring safety on top of mind for all employees by maintaining high standards of safety culture with all manufacturing processes, activities and operations.

Environmental Policy In recognition of the Interest of the society in securing sustainable industrial growth, compatible with the environment, Climax Engineering Enterprises affirms that it assigns high importance to promotion and maintenance of a pollution free environment in its all manufacturing processes, activities and operations.

Quality Management : P&G has led the Indian automobile industry's anti-pollution efforts by introducing cleaner engines. It is the first Indian company introduce vehicles with Euro I and Euro II norms. P&G is committed to maximizing customer satisfaction and strives to achieve the goal of excellence, by continual improvement, through ongoing going design and development, manufacture and sale of reliable, safe, cost-effective, quality products and services of international standards, using environmentally sustainable technologies, for improving levels of efficiency and productivity within its premises and ancillaries. The PCBU plant in Pune has obtained ISO 9001:2000 certificate from Bureau Veritas Quality International-BVQI in July 2003. PCBU of P&G has received the certificate of approval of its quality management system (QMS) from Bureau Veritas Certification (BVC), for compliance with ISO / TS 16949:2002. TS (Technical Specification)-16949 defines the quality management system requirements for the design and development, production, installation and service of automotive-related products. And to control the quality of its cars P&G applies various stringent measures during the pre-manufacturing stage as well as post-manufacturing stage. During the manufacturing stage regulars quality Mercedests are held by the in-house

Mercedestors in all the shops. All the process sheets, spot plans, control plan etc are displayed near the work place. In the post manufacturing stage once the vehicle comes out of the assembly line it passes through stringent testing standards such as shower test, wheel balancing etc. On successful completion of testing, the car is ready to be despatched after Pre Delivery Inspection (PDI).

Environmental Management: P&G reaffirms its commitment to minimize the adverse impacts of its products, operations and services on the environment. It strives to: Reduce the emission levels of vehicles in full compliance of the regulatory norms & proactively work with the industry, Government, other related industries & agencies to bring in international practices. Use of environmentally sustainable technologies & practices for prevention of pollution and the continual improvement in environment performance. Conserve natural resources and energy by minimizing their consumption & wastage. The unit is cerified with ISO 14001 : 1996 for Environmental Management System (EMS) Work Measurement : P&G is the first Indian Company to introduce the Balance Scorecard System in automotive sector in India. The scorecard incorporates SQDCM (Safety, Quality, Delivery, Cost and Morale). The implementation of the Balanced Scorecard has enabled greater focus on different elements of operational performance. Defining, cascading and communicating strategies across the organization have brought about transparency and alignment. Apart from Balance scorecard half yearly review of the employees is done on the basis of attendance, kaizen at work place etc.

A suggestion scheme is started by the management wherein any employee irrespective of his cadre can suggest an improvement in the work place and if this suggestion is approved by the concerned authority the employee gets rewards points. Once an employee achieves a specified limit of points he gets a gift voucher. Apart from this employees also receive bonus on certain festive occasion. Value Engineering: Continuous efforts are made to reduce the cost of service in P&G. Rejection of input parts received from vendors is very closely monitored in all the departments. The vendors are penalized if rejection exceeds beyond the defined limits. Apart from rejection of regular parts some stations are identified as CTQ (Critical to Quality) Stage. Special care is taken of the components added on these stations. Any negligence on these stations may lead to a customer claiming replacement of the vehicle. Value Engineering team also works for searching energy efficient alternatives, methods and eco-friendly technology, by adopting effective maintenance & work. The consumption of electricity, water, LPG, Compressed air etc is continuously monitored and steps are taken to reduce the consumption of these resources. Material Management : P&G uses SAP 4.6C Material Management (MM) module for: materials planning and control, purchasing, goods receiving, inventory management, invoice verification. Various spare parts for the machines, and other necessary equipments are ordered by the maintenance and T & PS departments through central maintenance shop and purchase department. Quotations are invited from the interested parties and after the negotiations one party

is finalised to procure the material.

CONCLUSION

As seen above, it was found out through questionnaire analysis, and witness in Mc Donalds outlets, talking to the customers in the outlet, and with the conversation with employee that:The liking of new product in the fast food industry is high. 68% of the people want innovation in the products offered by Mc Donalds. In spite of being the regular customer of Mc Donalds people want innovations in the products that should be taken care by the company.

The level of awareness of new Products among the regular customers is on a 5050 situation (barring the limitations of the research), which is unsatisfactory and should be raised to a considerable extent by means of more frequent advertisements and direct marketing activities. Awareness of the new products introduced in Mc Donalds is mostly through visit to Mc Donalds outlets and by seeing the posters pasted on the walls of outlets. There is a great potential for the company to make people aware of the products through other means also so that people who are not the regular visitor of Mc Donald can also come and try the product.

Attributes that attract customers try new things in Mc Donalds is the looks followed by price and then by promotional schemes.

LIMITATIONS

Since the sample size considered for the study is only 50-60 people specifically who are regular customers of Mc Donalds, it is quite possible that the result obtained from the study are not 100% accurate, because the sample chosen (randomly), may not be an ideal representative of the target market.

The perfection of the questionnaire analysis.

Since many analyses is done on the basis of personal interaction with the customers and employees of Mc Donalds, the responses received may or may not be authentic.

LEARNINGS
It was a great opportunity to carry a research project on such a reputed organization, which gave me a good learning experience and knowledge about the products and industry. Another very crucial area that needs mention is the experience I gained while talking to & interacting with people. This has been a truly enriching experience because interacting with people with varied profiles helped in enhancing my communication skills. The project I was doing was going simultaneously with my job in Dainik Jagran, so while doing this project I learned how to manage time in a most effective manner.

RECOMMENDATIONS
Mc Donald should come with some less calorie products so that it does not harm the growing children who like eating only junk food. It should come up with more of products, which are nutritious because growing children are the major customers of Mc Donalds. Mc Donalds should first advertise and then come up with new products in the outlets to create maximum recall in the mind of potential customer. It should come up with some spicy items also to beat the competition from Nirulas and Indian Dhabas.

BIBLIOGRAPHY

Kotler,

Philip

(1998)

Marketing

Management:

Analysis,

Planning,

Implementation and Control, Prentice-Hall Inc, New Jersey. Beri, GC Marketing Research

Boyed, Harper W (1999) Marketing Research

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