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FINAL PROJECT –
MCDONALDS PAKISTAN
This report analyzes the operations, practices and functions of McDonalds in
Pakistan.

M.Usama Imran
BUSN 360-B
Operation and project
Sir Shoaib Nazir
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Table of Contents
Introduction................................................................................................................................................3
CEO of McDonalds......................................................................................................................................3
Leadership style of CEO of McDonalds Pakistan........................................................................................3
Supply chain and quality assurance of McDonalds Pakistan.....................................................................4
Freshness................................................................................................................................................4
Innovation...............................................................................................................................................4
Supply chain of McDonalds........................................................................................................................4
Quality control of McDonalds....................................................................................................................4
Total Quality Management (TQM) of McDonalds......................................................................................5
Goals of McDonalds Pakistan.....................................................................................................................5
Key issues and solutions.............................................................................................................................5
Political...................................................................................................................................................5
Economic.................................................................................................................................................6
Social.......................................................................................................................................................6
Technological..........................................................................................................................................6
Legal........................................................................................................................................................6
Environmental.........................................................................................................................................7
Targeting the customers.............................................................................................................................7
Employee motivation.................................................................................................................................8
Training and development......................................................................................................................8
Hamburger University.............................................................................................................................8
Rewards..................................................................................................................................................8
Designations............................................................................................................................................8
Employee of the month..........................................................................................................................8
Democratic approach..............................................................................................................................9
Marketing roles and processes within McDonalds Pakistan.....................................................................9
Organizational hierarchy of McDonalds Pakistan....................................................................................10
Arguments................................................................................................................................................12
Conclusion.................................................................................................................................................13
Recommendations....................................................................................................................................13
Bibliography..............................................................................................................................................14
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Introduction.
McDonalds is a well-known Multi-National Company (MNC) that has been working in the
market for years now. McDonalds is a fast food chain that has its outlets all around the world
including Pakistan. McDonalds focuses on giving back to the community that it is serving and
hence, McDonalds is highly involved in the Corporate Social Responsibility (CSR) in Pakistan.
McDonalds has a number of branches sin different cities of Pakistan including Lahore,
Islamabad, Karachi, Abbottabad and many more. McDonalds is known for its famous tagline
‘I’m lovin’ it’. The mascot of McDonalds known as the Ronald clown also gained immense
popularity among the consumers in Pakistan as McDonalds mainly focused on children as its
target market and the mascots of McDonalds and the happy environment is an eye candy for the
children. (McDonalds website).

CEO of McDonalds.
The ultimate CEO of McDonalds is Chris Kempczinski who happens to be the predecessor of
Steve Easterbrook. In the context of Pakistan, Mr.Aftab Ahmad serves as the CEO of
McDonalds Pakistan. The Lakhani family owns the fast food chain of McDonalds in Pakistan
and share the responsibilities as the board of directors. The board of directors in McDonalds
Pakistan are as follows.

 Iqbal Ali Lakhani (Director and Chairman).

 Zulfiqar Ali Lakhani (Director).
 Amin Mohammad Lakhani (Director).
 Tasleemuddin Ahmed Batlay (Director).
 Shahid Ahmed Khan (Director).
 Aftab Ahmed (Director and CEO).
 Kemal Shoaib (Independent director).
 M. Imran Rafiq (Nominee Director).

(Centurypaper, 2021).

Leadership style of CEO of McDonalds Pakistan.

McDonalds is a company that believes in providing a comfortable and friendly environment to
both – its employees and customers. In order to maintain its position as a fast food giant in the
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market, McDonalds Pakistan has adopted a democratic leadership style and believes in the
welfare of the countries that it operates in. We can commonly see McDonalds celebrating
various cultural festivals in Pakistan and introducing pocket friendly menu items for people
belonging to different income groups. So, the organization is working smoothly with the support
of its owners and managers that allocate equal value and respect to the employees and the
customers.

Supply chain and quality assurance of McDonalds Pakistan.

Following are the main supply chain challenges and problems being faced by McDonalds
Pakistan.

Freshness.
McDonalds does not compromise on the freshness and quality of its products. The efficiency of
supply chain is depicted by the high quality of products in McDonalds Pakistan.

Innovation.
McDonalds believes in the innovation of its products and the product innovation of McDonalds
continuously requires an updates supply chain and the supply chain of McDonalds is used
extensively in this regard.

Supply chain of McDonalds.

McDonalds invests in crores in its supply chain and ensures that the products of highest quality
are being offered and transferred. McDonalds has its own farm where the products are made and
are delivered to the outlets in a fresh and healthy state. The supply chain of McDonalds is
exceptionally efficient while ensuring a high quality control.

Quality control of McDonalds.

McDonalds has an efficient quality control system as the organization properly monitors the
processes of the products and ensures that high quality products are being used in the process.
McDonalds has a quality assurance department that makes sure that the products and processes
are safe and healthy for the consumers. Considering the fact that the main target market of
McDonalds are kids, McDonalds takes good care of the quality of its products.

Total Quality Management (TQM) of McDonalds.

The TQM of McDonalds involves certain points including the facts that are mentioned below.
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 Employees should arrive on time.

 Employees must take good care of their hygiene.
 Employees must be neatly dressed.
 Employees must follow the SOPs especially during the pandemic.
 The food should safely reach the customers.
 Current and future trends of McDonalds.

McDonald’s currently have 31 restaurants in 8 cities of Pakistan which are operating at their full
capacity. All the restaurants have dine in, take away and drive thru. As this is the trend all over
the world that there are drive thru restaurants near the filling stations, Pakistan has also signed an
agreement with SHELL Pakistan in order to open up the restaurant’s drive thru on the Shell
filling stations across the country. McDonald’s expect to increase their sales very high through
this strategy. Moreover, McDonald’s is planning to target every SEC in order to be more
accepted restaurant. Targeting more SEC’s will help McDonalds to reach to the more customers.

Goals of McDonalds Pakistan.

The Multi-National Company (MNC) of McDonalds Pakistan is focused on providing a clean
and safe environment to its customers. However, as the awareness is increasing about
sustainability in the market, McDonalds now aims to provide high quality and sustainable
products to its customers. The company McDonalds also recently changed its packaging recently
to improve its services and goodwill in the market.

Key issues and solutions.

Like any other organization, McDonalds Pakistan also had to go through some rough patches in
order to be where it is today. We can analyze the performance of any organization by conducting
a PESTLE analysis. We will look at different PESTLE problems that were being faced by
McDonald’s in Pakistan and how McDonalds solved these issues.

Political.
An organization must take care of the political aspects in a country as it is important for an
organization to respect the political beliefs of people and refrain from getting involved into
political debates with people. However, to keep in touch with the political drives, McDonalds
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keep on introducing new deals in the days of elections and McDonalds Paksitan also encouraged
the community to place their votes wisely in the days of elections.

Economic.
It is quite common for the Multi-National Companies (MNCs) to work for the betterment of their
parent countries but McDonalds has a large and wide spread network in Pakistan and consumers
cannot even tell that McDonalds does not belong to Pakistan. McDonalds benefits the economy
of Pakistan by paying taxes properly and abiding my all the economic rules in the country.

Social.
McDonalds is widely known for its CSR activities and McDonalds is an ideal example for a
social restaurant which encourages people to live in the moment and get involved socially.
McDonalds hold different competitions like fancy dress competitions for kids and allows the
children to celebrate their birthdays and special occasions with McDonalds. The social activities
of McDonalds keep the organization connected with its audience and ensures that the people
enjoy their experience at McDonalds. McDonalds supports various educational and charity
programs to help people suffering from rough patches in their lives and the company believes
that its owes something to the society and by being considerate and supportive towards the
society, they can win the hearts of their audience.

Technological.
McDonalds is one of the most technologically advanced countries in Pakistan. A common
example of McDonalds being technologically advanced is the use of Kiosks at McDonalds.
There are very rare restaurants using the facility of kiosks in their outlets. McDonalds has created
convenience for its customers by adopting the technology and using kiosks to reduce human
errors and ensure that the customers can conveniently place their orders. McDonalds also became
technologically advanced by taking feedback in a digital manner through tablets instead of using
the traditional way.

Legal.
McDonalds abides by all the legal laws in the country. McDonalds does not break any legal rules
and even if it gets blamed for being unethical and not following the law, McDonalds ensures that
the customers are satisfied and the blame is proven to be false. A common example of this can be
the allegation that was placed on McDonalds a few years back. It was stated that McDonalds has
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been using haram ingredients in Pakistan for the processing and making of the meals. In order to
wash off the allegation, McDonalds introduced the free kitchen tours in Pakistan which allowed
the customers to pay a free in the kitchens of McDonalds and look at the quality and practices
with their own eyes. This built credibility of the company in the sight of the consumers and the
customers believed that the allegation was merely a lie and started placing their trust in
McDonalds again.

Environmental.
McDonalds believes in sustainability and takes all the required measures to be as environment
friendly as possible. In order to maintain the sustainability of the business, McDonalds uses
sustainable and recycled packaging and refrains from the use of packaging that is harmful for the
environment.

Targeting the customers.

McDonalds is a restaurant that targets all kinds of people ranging from kids to teenagers to
adults. For the people who do not prefer to consume fast food, McDonalds has given the option
of McCafe which enables the consumers to have something sweet or a coffee with their snacks.
Apart from that, McDonalds is budget friendly for almost everyone as McDonalds has a variety
in its menu. McDonalds Pakistan also caters to the students by offering student deals. Some ways
in which McDonalds is catering to all demographic groups is as follows.

 McDonalds Pakistan is offering happy meals for the children with an option of opting for
either nuggets or burger.
 McDonalds Pakistan is offering share box for people who are on a budget and are looking
for quality food options.
 McDonalds Pakistan is offering value meals in an affordable price to the consumers that
are looking for affordable food options.
 McDonalds Pakistan is offering a variety in the meals to cater to all kinds of customers.
 McDonalds Pakistan is offering McCafe for the people having a sweet tooth.

Employee motivation.
In order for an organization to work smoothly anywhere, it is crucial to ensure that the
employees working for the company are motivated enough to perform their task effectively and
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efficiently. McDonalds Pakistan motivates its employees by using various different techniques
and ways. Some of the common ways in which McDonalds Pakistan is motivating its employees
are as follows.

Training and development.

McDonalds keeps the gates of learning open to their employees despite the fact that the
employees are serving McDonalds in a desirable way. McDonalds Pakistan offers training and
development programs for its employees which serves as an opportunities for the employees to
grow in the market and learn more about the company and how they can play a beneficial role in
the society and earn a better living at McDonalds.

Hamburger University.
McDonalds has its own university called the hamburger university which makes the people a
perfect fit the get employed in the well-known Multi-National of McDonalds and this university
also offers a credible degree to its students.

Rewards.
McDonalds understand the struggles of its employees and supports the employees in earning a
decent income for their families. In order to enhance the performance of its employees,
McDonalds offers certain rewards to its employees based on their performance. For example,
McDonalds offers certain bonuses to its employees for performing in a certain way and in
achieving the tasks efficiently.

Designations.
Based on the performance, McDonalds also offers promotions and elevation in the designation to
its employees.

Employee of the month.

It is commonly believed that if a company makes an employee feel privileged, it would
ultimately come back to the organization and McDonald’s is doing a pretty good job in this
concern as they have a title called employee of the month and this title is allotted to anyone who
performs the best in the month. This makes the employees feel important in the organization and
motivates them to do better in the future.
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Democratic approach.
McDonalds motivates its employees and makes them feel like an important part of the
organization by using a democratic approach. The democratic approach of McDonalds keeps the
employees involved in all the processes and the employees play an important role in making
decisions for the organization. This not only makes the employees feel important but also adds in
to their loyalty towards the organization.

Marketing roles and processes within McDonalds Pakistan.

There are certain marketing processes which an organization adopt in order to run a handsome
marketing campaigns. These processes and roles play an important part in implementation of
marketing plans of an organization. These marketing processes are accepted worldwide by the
organizations in order to run the marketing campaigns and making the brand image more
attractive. Marketing process consists of 4 elements:

 Strategic marketing analysis
 Marketing-mix planning
 Marketing implementation
 Marketing control.

Marketing plays an important role in an organization. Marketing is the thing which

creates a strong relationship between consumers and brand. So far, all the organizations
working in the world are running on the basis of the basis of marketing. How consumer
perceives the brand in the mind is the thing directly related to the marketing strategies
adopted by the organization.

Organizations are contending to be at the highest point of the clients mind and
simultaneously attempting to ensure their piece of the overall industry. Showcasing is at the
focal point of making client dedication and client maintenance. Accordingly, the capacity
does advancements, crusades every once in a while and this has been demonstrated as a
fruitful activity in additionally drawing in more clients.

Same is the case with McDonald’s Pakistan. First of all, the market is analyzed. For
example, Haram food is something which is not accepted here in Pakistan so no one is going
to buy the burger having the haram material in it. This is something carried out after market
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analysis. Moreover, there are different SECs which can be targeted. So the pricing is set
accordingly. There are a lot more things which are analyzed while doing the marketing
analysis. After that, marketing mix is planned. Marketing mix consists of 4 Ps which are
product, price, placement and promotion. For example, nuggets can be a product. There is a
proper research through which its price is set. Place is something which tells that where your
products are shown. For example, the advertisement of beef burger cannot be shown in India
as they don’t eat beef. The advertisement of Apple can’t be shown at village where people
does not know the apple company. Same is the case with Promotion, promotion is the extent
to which you market your products on bill boards, Ads etc. All these Ps plays an important
role in marketing process. Once all the plans are designed, the plans are implemented and the
results are recorded after the implementation that whether these plans works according to the
targets set or not. Marketing control is the last element which tells that how the process are
carried out. Where are the scarce resource? Where there is a need for more budget? All these
processes comes under the marketing control of the marketing process.

Organizational hierarchy of McDonalds Pakistan.

We know that all the departments of any organization work together in order to be more
efficient. There are the following departments in McDonalds:

 Sales
 Marketing
 Finance
 Supply Chain
 Restaurants

The organizational hierarchy is as under:

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Marketing

department is an

important

department in

any organization.

Marketing

department is linked with Finance and Sales. What marketing department does is that they are

responsible to advertise the restaurant as much as possible. So they need a certain budget to fulfil their

needs. In order to fulfil their financial desire, they contact with the finance department. After they get

the desired budget, they do marketing. For getting the certain budget, they design the marketing

strategies first and then make an expected budget. After they are done with that, they present the

budget against higher authorities, if the budget is approved, they get that amount of money from the

finance department. After that they are responsible for the marketing campaign. The ultimate process of

this goal is to have higher sales. The sales target is already set. After all the campaign is carried out,

they see the sales whether the target is achieved or not? That is how marketing department is linked

with the other departments.

Finance Budget Marketing Increased Sales

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The flow chart describes the working of different departments within the organization. The inputs and

outputs of the marketing department are clearly shown. The Marketing department get the money

which is input and is bound to increase the sales or make the brand name more authentic which is the

increased sales.

In case of McDonalds, the same process is carried out, First of all the marketing campaign is

designed and the higher authorities discuss this strategy. If the strategy is approved, the marketing

department makes a budget for the designed marketing campaign. In order to get the budget, the

marketing department get this budget approved by the higher authorities of related departments. The

finance department than gives them the desired budget. The sales target is already set and the sales are

recorded. A report is then made which tells the organization whether the desired results are achieved or

not.

Arguments.
Looking at the functioning and operations of Pakistan, we can assume that McDonalds is doing pretty

well in the Pakistani Market but it is important to note that McDonalds, at the end of the day, is an

American chain of fast food and all the revenues that McDonalds is earning from Pakistan are

benefitting America in one way or another. So, we can say that apparently McDonalds is working in the

favor of Pakistan but in the literal sense, it is benefitting America more than any other country.

Talking about the sustainability and environment friendliness of the company, despite the fact that

McDonalds claims to be all environmentally friendly, it I still using the plastic straws which are known to

be quite harmful for the environment.

Moreover, the people that are being hired by McDonalds are now being classified as a certain class in

the society and no matter how well McDonalds is treating its employees, the employees still face

struggles in their everyday lives which raises the question in the minds of the customers that is
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McDonalds really that understanding towards its employees. McDonalds has placed the complaints and

suggestion box in their outlets but the customers and the audience doubt if these even get checked

properly by the management or not.

McDonalds was widely known for its flamboyant infrastructure and interior but as the time is passing,

McDonalds is now altering its buildings and interior in a more subtle and sober manner which is taking

away the actual personality of McDonalds as a brand.

McDonalds does not have much branches in the northern areas of Pakistan while the local restaurants

like Sweet tooth are available in cities like Nathia gali in Pakistan as well.

Conclusion.
McDonalds is a well-known Multi-National Company that is doing a fabulous job in the Pakistani market.

McDonalds treats its employees in a democratic manner and makes sure that the company is taking care

of its employees and customers. The needs of the customers are being catered to effectively while

ensuring that the employees stay motivated and loyal to the organization. McDonalds has a very

desirable organizational hierarchy and the marketing department of McDonalds is doing a great job as

well. However, there are some critics of McDonalds present in the market who point out various facts

about how and where McDonalds is lacking.

Recommendations.
Keeping the research stated above in mind, we can make certain recommendations or suggestions to

McDonalds Pakistan. The trends are now changing in Pakistan and people are becoming more and more

health conscious as the time is passing. McDonalds should introduce McSalads in Pakistan as well as the

salads of McDonalds are a huge hit in the west. Instead of becoming more serious and sober with the

infrastructure, McDonalds should stick to its friendly and children/family oriented infrastructure since
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that represented the personality of the brand to a great extent. McDonalds may also consider market

development.

Bibliography.
Staff, T. (2019). Hamburger University: A McDonald’s College Education. TheBestSchools.org. Retrieved

28 February 2021, from https://thebestschools.org/magazine/mcdonalds-hamburger-university/.

HRD. (2021). How does McDonald’s inspire its staff?. Hcamag.com. Retrieved 28 February 2021, from

https://www.hcamag.com/au/specialisation/learning-development/how-does-mcdonalds-inspire-its-

staff/145704.

Century paper. (2021). Centurypaper.com.pk. Retrieved 28 February 2021, from

http://www.centurypaper.com.pk/documents/PROFILE%20OF%20BOD-CPBM.pdf.

McDonald’s Pakistan – McDonald's. Mcdonalds.com.pk. (2021). Retrieved 28 February 2021, from

https://mcdonalds.com.pk/mcdonalds-pakistan/.