FINAL REPORT

Mission
McDonald's brand mission is to be our customers' favorite place and way to eat and drink. Our
worldwide operations are aligned around a global strategy called the Plan to Win, which center on
an exceptional customer experience People, Products, Place, Price and Promotion. We are
committed to continuously improving our operations and enhancing our customers' experience.

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

McDonalds Pakistan history

McDonalds first restaurant opened its door to the people of Pakistan in September 1998 in Lahore.
This launch was met with unprecedented enthusiasm from the citizens of Lahore, who are known
for their liveliness, vigor and penchant for quality food. Karachi opened its first restaurant a week
after Lahore. Ever since we opened the doors of our restaurants both in Karachi & Lahore, we have
been proud to provide our customers the same great taste, outstanding value and superior service
that is synonymous with the Golden Arches all over the world.

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There are now 44 restaurants in 16 major cities of Pakistan. (Karachi, Hyderabad, Lahore, Multan,
Faisalabad, Kala Shah Kaku, Sialkot, Gujranwala, Gujrat, Islamabad, Rawalpindi, Jhelum,
Peshawar, Quetta, Sahiwal and Bhera)
Today millions of Pakistanis place their trust in McDonalds to provide
them with food of a very high standard, quick service and value for
money. So next time you walk into one of our restaurants, please
remember, McDonalds Pakistan is here now, to put a smile on your
face, each and every time you visit us.
McDonalds is firmly committed to giving back to the community
where it operates. We are happy to become involved because we
recognize that organizations have a role to play in helping
communities to work successfully. The contribution we enjoy most is the experience of working
together with others in the community to achieve worthwhile benefits for those who need it most.

McDonalds Pakistan
Being a responsible corporate citizen, McDonalds firmly believes in giving back to the
communities it operates in. We love to provide support and encouragement to the people who need
it the most. All our restaurants contribute to their local community and every year we help set up
and support numerous educational, sporting and charity programs designed to help a wide range
of people.
McDonald's has a proactive approach to charities and sponsorships. We believe these help inspire
and support the people of Pakistan, especially the underprivileged ones, to live a better life. We
are dedicated to delivering great experiences through our ongoing community support programs.
McDonalds follow the polycentric approach as it customize the products as per the demand and
requirements of the host country.
Whereas the infrastructure, logo, quality, policies and employees dress code remains same globally
following the ethnocentric approach.

Effect of Sub Culture

Cultural factors as the one crucial characteristics influencing of consumer behavior in marketing
management that influences the customers choices and buying behavior greatly, because there are
different culture on different regions and countries, culture is the most basic factor for
understanding the personal desire and consumption habit. The marketing strategies should be
based on the cultural diversity. Many global marketing and advertising have witnessed this point,
such as McDonalds marketing and advertising strategies. McDonalds marketing has
different strategy in different regions. Even in Asia, the advertising content for each country is

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different. It is very subtle to reflect cultural characteristics in different areas,
including culture, subculture, and social class.

Culture Factors
For example, in Japan, most Japanese have high preferences on animations and the animation in
Japan is the fastest growing industry as well. So McDonald tends to use more animation
elements for marketing and advertising. It aims to attract more target customers, including Kids,
teenagers, even young adults. Many well-known cartoons were used
in McDonalds advertisement marketing that enhances the attractiveness and popularity
of products.
Moreover, McDonalds in China, Kung Fu and the movie stars of the show are utilized in
advertisement. Its marketing was integrated Chinese traditional culture with star effect.
Furthermore, for example, during Childrens Day in China, the Kung Fu show was also integrated
into the marketing activities. It could be more popular in China because of the cultural identity.

Subculture
Some small subcultures are contained in the each culture, such as religions, nationalities and racial
group. When implement the market segment, the marketers should consider the subculture.
McDonalds in Malaysia focused on the local culture, religion and customs, it emphasized the
family experiences, the Halal logo are indicated in all kinds of Halal food advertising. It also
emphasizes on good values with draw attentions of local customs. The customs in different areas
presents diversity.
McDonald considered the local eating habits to practice the different marketing strategies. For
example, many Chinese people choose Chinese food for breakfast, McDonalds launched
a Chinese-style breakfast based on the eating habits. Especially in 2013, McDonalds no longer
just focused on burgers, fries, the Chinese food, like Fritters, soy milk and porridge, are also
become its new products. Because of persistent weakness in earnings growth, the US fast
food industry is exploring its transition in order to better engage the customers.

Social Class
The people share the similar behavior, values and interests in the certain social class. So, we should
consider the customers income, occupation and education in different social class that is important
for successful marketing, because the customers have the similar buying behavior within same
social class. McDonalds mostly targets customers with limited time for having meal especially
young people. The characteristics of the meals and services of McDonalds are quick, tasty and

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cheap that because young people usually

being busy on studying and working also
have limited power of consumption.

McDonald Chinese Pancakes

Moreover, McDonalds marketing strategy is quite clear that they spend lot attention on children.
It is not hard to get found that a large number of McDonalds advertisings are relevant to children
such as new children meal and toys come with special children meal. Furthermore, their children
focus strategy also brings the business chances on family meal because young children wont come
alone; therefore McDonalds also provide the family set quick meal. In the other hand, other single
meals such as with burgers and nuggets are suitable for young adults have a busy work.
McDonalds organizational culture supports the companys industry positioning goals. As the
biggest player in the global fast food restaurant market, McDonalds uses its organizational culture
to attract customers and qualified employees. A firms organizational culture defines the traditions,
habits and values that influence workers behaviors. To ensure business efficiency in production
and service, McDonalds organizational culture encourages learning. In a way, the continuing
evolution of the organization reflects the firms effectiveness in applying its corporate culture to
achieve the desired levels of human resource capabilities. This condition highlights the
significance of organizational culture as a success factor in McDonalds international business.

McDonalds Organizational Culture

McDonalds organizational culture supports the companys industry positioning goals. As the
biggest player in the global fast food restaurant market, McDonalds uses its organizational culture
to attract customers and qualified employees. A firms organizational culture defines the traditions,
habits and values that influence workers behaviors. To ensure business efficiency in production
and service, McDonalds organizational culture encourages learning. In a way, the continuing
evolution of the organization reflects the firms effectiveness in applying its corporate culture to

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achieve the desired levels of human resource capabilities. This condition highlights the
significance of organizational culture as a success factor in McDonalds international business.

Features of McDonalds Organizational Culture

McDonalds organizational culture emphasizes human resource development and efficiency. It
supports business growth and success in the international fast food restaurant market. This
organizational culture has the following characteristics, arranged according to McDonalds
prioritization:

1. People-centricity
2. Individual learning
3. Organizational learning
4. Diversity and inclusion

People-Centricity: McDonalds organizational culture prioritizes employees needs and

development. The companys Core Values and Standards of Business Conduct emphasize the
importance of supporting people. This is understandable, considering that McDonalds is a service
business. To ensure support for people, the companys organizational culture encourages
employees to engage management to help improve processes and procedures.

Individual Learning: McDonalds organizational culture highlights the importance of

lifelong learning. The belief is that individual learning promotes productivity, quality, and business
effectiveness. To facilitate individual learning, the company offers training and development
opportunities through Hamburger University, internships, global mobility, and leadership
development programs. These efforts ensure that McDonalds maintains an organizational culture
that motivates employees to keep learning.

Organizational Learning: McDonalds organizational culture also supports organizational

learning. The firm aims to use individual learning to develop organizational knowledge to push
the business forward to new heights of performance. McDonalds applies this feature of its
organizational culture through policies, programs and meetings that encourage employee feedback
and knowledge sharing.

Diversity and Inclusion: McDonalds official human resource management policy states that
diversity and inclusion are key factors in the firms organizational culture. McDonalds recognizes
the importance of diversity and inclusion in optimizing HR capabilities to deal with an increasingly
diverse market. To ensure support for diversity and inclusion, McDonalds organizational culture
encourages employees, suppliers, franchisees, and customers to give their feedback and engage in
meaningful conversations to improve the business.

McDonalds Organizational Culture Advantages & Disadvantages

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McDonalds organizational culture has the advantage of enabling the company to improve quality
of service through people-centricity, individual learning, and organizational learning. However,
excellence and high quality are considerations not effectively covered in the corporate culture.
While McDonalds highlights learning and support for people in the organizational culture, there
is no emphasis on excellence in individual performance. Thus, a possible improvement is for
McDonalds to emphasize excellence and high quality output in its organizational culture.
McDonalds corporate strategy is to do the right things and provide the best to the customers and
community they serve, and the employees of the organization. McDonalds has a strong corporate
culture and supportive about the global youth employment. In McDonalds every procedure has a
very particular rules and regulations of how it should be carried out. It tries to provide best support
to its employees. It is dedicated to provide the customers unique level of quality, cleanliness, value
and service. They are in the believe that well trained team will serve the best by working together
and , so they are committed with people and encourages team building and team work. McDonalds
sets out all aspects of business with integrity and honesty. They believe in celebrating the
achievement and are strived for new higher goals and its accomplishments. They are highly
committed to customer's expectation and satisfaction. They are directed to convert awareness into
action. The Goal of McDonalds is to have people within the organization to work to better
performance and living to reach their full potential. They have performance based rewards for the
employees which provide a platform for the workers to deliver the best to the day to day activities.
They believe in balance of work as higher burden of time and work pressure will deteriorate the
performance of the employees. They have proper and specific roles and responsibly mentioned for
each employees of the workforce.

Theories of Motivation
Motivation at work is viewed increasingly as being a significant factor in contributing to a
companys overall success in achieving corporate goals. McDonald's Corporation, usually called
McDonald's by the crowd, which is the largest chain of hamburger fast food restaurants around the
world, serve about 68 million customers in 119 countries every day. To support this amazing
business, 761,000 employees are working for McDonald's.
In the restaurants crew members constitute the entry-level position and are by far the most
numerous. A large majority are part-time workers, roughly three-quarters. Their wages are low.
Swing Managers constitute the first true managerial position in the hierarchy, although their hourly
wages are only slightly higher than crew member wages. Assistant managers are higher salaried.
There is only one Restaurant Manager per McDonald's restaurant.
McDonald's provide a good future development chance for their employees. More than 50% of
their owner operators started off behind the counter, so did more than 75% of their restaurant
managers (McDonald's, 2013).
If we are going to anywhere, weve got to have talent. And, Im going to put my money in talent,
said by Ray Kroc, who built McDonald's into the most successful fast food operation around the
world. McDonalds official website reveals that employees who are students can earn up to 46

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credit hours toward their 2 or 4-year degree if enrolling in its management training and education
programs. Also, McDonald's USA National Employee Scholarship Program recognizes and
rewards the accomplishments of McDonald's outstanding student-employee applicants with
scholarships.
Also, as shown on McDonald's official website, McDonald's provides various benefits for their
employees, including competitive wages, MAC Card, Haircut Discounts, wages increases,
McDonald's training programs, life insurance, education support, direct shares, uniforms, flexible
hours, paid vacation, bonus scheme and stock purchase plan.

Maslows Hierarchy of Needs

Abraham Maslow divided the needs of employees to five classes: physiological needs, safety
needs, love and belonging needs, esteem needs and self-actualization. He separated these five
needs into higher and lower levels. Physiological and safety needs were described as lower order
needs, while the other needs are classified as higher order needs. He thought once each level is
satisfied, the needs at this level become less important (Business Studies, 2007).
McDonald's does not emphasize the lower order needs in their career description. The reason of
this may be that the work in McDonald's is safe, and the majority of employees in this company
consist of students, whose physiological needs can be satisfied by their families. However,
McDonald's emphasize their flexible work time and experience employees can get from their work.
McDonald's has a clear recognition on their employees needs, satisfying their employees with
higher levels in Maslows hierarchy of needs. In this case, Maslows theory is being implemented
enormously by McDonalds.

Herzbergs Two Factor Theory

The factors that can motivate workers were categorized into motivators and hygiene factors by
Fredrick Herzberg. Motivators like interest in work and future opportunities are factors which give
workers job satisfaction, while hygiene factors such as working environment lead workers to be
dissatisfied.
McDonald's seems believe that the motivators in Herzbergs two factor theory can bring employees
satisfaction. The rewards got from great performance and future development chances are both
used to motivate employees by McDonald's. McDonald's may try to make employees motivated
by their work instead of hygiene factors including salaries.

Theory X and Theory Y

Douglas McGregor divided employees to two completely different types. One is Theory X,
standing for people who are lazy, selfish, dislike work and need to be controlled. On the contrary,
people who are Theory Y are able to enjoy their work, take responsibility if motivated and have
creativities or job knowledge. The main difference between people who are Theory X or Theory

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Y is if they are motivated by money or many different needs. Theory X assumes that people are
only motivated by money, but Theory Y has an opposite assumption.
McDonalds attaches importance to their workers motivation generated from different factors,
but wages cannot be the factor. Therefore, McDonalds do not intend to attract employees who are
Theory X. At the same time, McDonalds emphasize its flexible hours again and again as their
most important HR policy. If taking this motivator as one of the incentives for employees who
belong to Theory Y, this factor seems not effective enough. In short, there is no clear links between
McDonalds HR policies and the Theory X and Theory Y.

Equity Theory
Equity theory proposes that employees compare their own output/input ratio (the ratio of the output
they receive from their work place and to the inputs they contribute) to the output/input ratio of
another person. Unequal ratios create job dissatisfaction and motivate the employees to restore
equity. When ratios are equal, employees experience job satisfaction and are motivated to maintain
their current ratio of outcomes and inputs or raise their inputs if they want their outcomes to get
higher. Outcomes consist of pay, fringe benefits, status, opportunities for advancement, job
security, job verity, flexible working arrangement and anything else that employees desire and
receive from an organization. Inputs comprise special skills, training, education, and work
experience, effort on the job, time, interpersonal skills and anything else that employees perceive
that they contribute to an organization.

Expectancy Theory
Expectancy theory characterizes individuals as rational beings. People think about what they must
do to be remunerated and how much remuneration means to them before they actually perform
their jobs. As per this theory, individuals have different sets of goals and can be motivated if they
have certain expectations. This theory implies that management needs to show to employees that
their effort will be recognized and rewarded in both financial and non-financial terms. Victors
expectancy theory is based on different beliefs.

Hofstedes Dimension
Power Distance
Power Distance describes the degree to which less powerful members or a society accept an
unequal distribution of power. The central question in this dimension is how a society handles
inequalities among individuals. A high power distance means that people within a society have
accepted a certain hierarchical order and the inequalities that come with it. In a society with a low
power distance, people are constantly trying to equalize the distribution of power, especially those
who have less power.
People from societies with a small power distance dont like to be controlled. They only accept
leadership if its based on true expertise. Offer enough objective and detailed information on your

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website to allow people to make up their own mind. Meet your website visitors on eye-level, treat
them with respect, and show interest in their needs. Communicate with this group in an informal,
direct, and participative way to gain their trust and get them engaged.
The Dutch site of McDonalds is very minimalistic and professional in its design and offers rich
information on all different kind of topics, such as products, quality of ingredients, restaurant
locations, and sustainability. The visitor is confronted with a clean design and a clear and
trustworthy content structure. Any action taken gives the impression it is taken on our own
initiative.
Visitors from societies with a big power distance are used to authorities and solid structures. Be
prepared that they take you as an expert and trust you as authority figure. Make sure you offer
them facts and clear statements and dont give them too much responsibility. Visitors from this
group are less critical and less driven to search for detailed information in order to make up their
own mind.

Individualism versus Collectivism

The second dimension describes how much people in a group focus on themselves and on the
group as a whole. The position of a society on this dimension is reflected in whether people refer
to themselves as I or we. Individualist societies prefer a loose social network in which
everyone is expected to take care of themselves and their immediate families. In a collectivist
culture, people care as much or even more for others than for themselves. In exchange, others take
care of them.
The US site of McDonalds is very focused on the benefits of the individual visitor. The design is
clear and the site offers a lot of information on all different kind of topics. The site offers a lot of
personal calls to action, such as Meet McDonalds fish supplier Kenny Logan, Find your
favorite deal, or Try our newest catch, which require the visitors to interact with the site. Also,
on one of the pages it says exactly what you want, which appeals to the individual visitor and
the idea of self-fulfillment.
On the other hand, visitors from a collectivist culture act in the interest of the group, rather than
their own interest. They make decisions based on the opinion of others and on whats common or
popular, not so much on their individual desire. Consider this on your website and offer enough
reference points, such as most popular categories, testimonials, or social media sharing options
to gather instant and personal feedback from friends.
On the Turkish website of McDonalds, the social aspect is very important. For example, social
media buttons can be found on three different spots on the homepage, highlighting the McDonalds
community and its popularity. The visual of the cook, who presents different menus,
demonstrates expertise and works as a reference point for customers. Also, visitors can download
a mobile app with different features, such as customer reviews and restaurant ratings.

Masculinity versus Femininity

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This dimension is pretty much concerned with the motivations and core values of a society.
Masculine societies are competitive and driven by achievement, heroism, assertiveness, and
materialism. Feminine societies are consensus-oriented and prefer values, such as cooperation,
modesty, caring for the weak, and quality of life.
People raised in a masculine society are constantly striving for success. They want to prove
themselves by being the best in what they do. Once success has been attained, there is no hesitation
to show it. These expectations not only apply to themselves, but also to the people around them
and for example to the products and services they use. When they visit your website, make sure
you are prepared for their critical evaluation and offer them high quality. Competition, or
incentives can be used as attention grabbers.
The site of McDonalds Saudi Arabia is well prepared for critical visitors with high expectations.
They offer a lot of information and point out their expertise. For example, they offer a category
called Truth, which provides visitors with all different kind of information on who owns
McDonalds in the UAE, where profits go, where the food comes from. Its a central aspect of the
site to make it easy for visitors to get honest, straightforward answers filled with facts. Besides,
the homepage highlights facts such as 100% locally owned & operated and our quality is no
mystery.
Website visitors from a more feminine society dont desire to stand out from the crowd, rather they
want to avoid conflicts and enjoy life. The positive experience with your website or product is
more important than technical details, the prize, or whether you are the best in the field or not. This
group likes to get engaged and entertained. As long as they are enjoying your website, they are
willing to forgive minor flaws. Make sure you offer contact information and be open for feedback
and questions. This group is very cooperative and if they want to give feedback, they dont hesitate
to get in contact with you.
The Norwegian site of McDonalds on the other hand is very feminine. The design is playful and
creates a carefree sphere. The happy colors and the deliciously looking images of different
products make it a fun experience. At the same time, the site is very clear and offers a lot of
information. The Contact Us link in the main menu brings you directly to a contact form together
with comprehensive contact details.

Uncertainty Avoidance
This dimension describes how people from a society deal with uncertainty and ambiguity. The
main issue of this dimension is how people handle the fact that they cannot control the future.
Cultures with a high uncertainty avoidance stick to what they know and avoid unorthodox
behaviors or ideas. On the other hand, cultures with a low uncertainty avoidance prefer practice
over principles and welcome change.
In societies with a high uncertainty avoidance, people prefer deductive rather than inductive
approaches. They like to think things through and base their decisions and actions on a systematic
evaluation of all available and relevant aspects. Also, they like and prefer the familiar over the
unfamiliar. For your website this means that you should present as much relevant information as

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possible in a structured and clear way. People from this group need to be able to balance different
options against each other in order to make a reliable decision.
The Russian site of McDonalds has a clear and classy design. It features a classical header area
with logo and comprehensive top navigation menu, a content area with lots of visuals, and a footer
with some secondary links. The overall impression of the site is very positive, which conveys a
safe and trustworthy feeling. Images of happy people in real-life situations furthermore help to
relate to the site.
Visitors with a low uncertainty avoidance are more open for new ideas, willing to try something
different, and take risks. They are more tolerant of new ideas and opinions that differ from their
own. These group of visitors is spontaneous and thinks practical, which means they can easily
adapt to new situations. On the Web, trends and technology offer new possibilities every day.
Make sure your main target group appreciates this. If so, great. If not, dont ask too much of them
and retain a certain degree of familiarity.
The site of McDonalds India on the other hand requires much more flexibility and tolerance of
new ideas. While the overall structure is very clear and user-friendly, the site offers some special
features. For example, you can switch between different color schemes, browse through the
different products using a slick content-slider, or engage with the McDonalds community on
facebook.

Long-term versus Short-term Orientation

The last dimension describes how much a society is concerned with its virtue. Societies with a
short-term orientation are normative in their thinking. They value traditions and are interested in
establishing the absolute truth of the moment. They live in the here and now and dont worry too
much about the future. A long-term orientation on the other hand results in a society that believes
truth depends on situation, context, and time. People believe that traditions can be adapted to
changed conditions, they plan their lives ahead, and set long-term goals.
People with a short-term orientation can be seen to live more in the past and in the present than in
the future. What counts are quick results that are in line with known values and traditions. On your
website, make sure you offer short cuts and options to take immediate action. Also grab peoples
attention with something they are familiar with, not with an outlook to the future.
The German site of McDonalds has a modern design with a classical top navigation. The site
features many aspects that are in line with German values and traditions. For example, the big
visual shows a man who is enjoying his McCurrywurst. This likable guy and his currywurst
create a sense of familiarity, which helps customers to relate to the product. Other concepts that
are used on this site to convince visitors are: family values, sustainability, professionalism, and
clarity.
Those with a long-term orientation make thorough decisions for the future. Offer detailed
information and advantages that truly convince them of the value of your product. You can for
example work with installment-sales, or a long-term discount. Also you can offer ways for your

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visitors to save their browsing history, such as wish lists, or social media sharing options. This
way you dont force your visitors into an immediate decision.
The McDonalds website of Hong Kong helps customers to make reasonable and informed
decisions not only about their food, but also about their lifestyle. Instead of labeling their different
menus with Products like most sites do, it says East Smart. Also there is an entire section of
the site devoted to Healthy Living, promoting the belief that a balanced Diet is the key of
maintaining ones health. This site carefully informs people about the advantages and long-term
benefits of their products.

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