Executive Summary

McDonalds continues to be recognized as a premier franchising company around the world. Approximately 70% of McDonalds worldwide restaurant businesses are owned & operated by independent businessmen & women, McDonalds franchisees. McDonalds outstanding brand recognition, experienced management, high quality food, site development expertise, advanced operational systems & unique global infrastructure position them to capitalize on global opportunities. McDonalds is currently seeking highly qualified individuals to join the McDonalds family as new franchisees in both U.S. & International markets. The feature of their tasty fast food items with unique value & services, creating a high demand for McDonalds in the international business arena. McDonalds already proves their demand in the global market by providing quality hamburgers & other fast foods. By 1997, McDonalds had 10,752 restaurants in 108 countries outside of the United States. Furthermore, there is a golden opportunity for McDonalds to expand their global foodservice in Bangladesh also. McDonalds can enter the Bangladeshi market for its demand & brand image. The biggest franchising company is McDonalds. Unique brand quality fast food provider McDonalds hold some exclusive strength. McDonalds is the provider of world quality foods. Different varieties of food items are there in McDonalds. McDonalds will get the maximum competitive advantage in Bangladesh for their exclusive brand image & superior food & service. Demand for McDonalds foods is another strength for them. McDonalds is always famous for their customer- oriented attitude. McDonalds always provide gift items with each purchase of food items or accessories. McDonalds hold some fabulous opportunities in Bangladesh as a world-class fast food provider. For a high demand of fast food in our country, they can set the high standard of fast food restaurant over here. One was the present condition of the fast food shops in Bangladesh & the other one was introducing McDonalds in Bangladesh. Almost 95% people are already ware of McDonalds & around 80% of the targeted audience want McDonalds to be in Bangladesh. Itll be beneficial for our countrys people, where they can get some world famous quality foods from McDonalds.

Problem & Purpose: Franchising McDonalds In Bangladesh

McDonalds is spreading out all over the world, because of its superior vision. The feature of their tasty fast food items with unique value & services, creating a high demand for McDonalds in the international business arena. Their attributes clearly define the support on creating a global market. As we already know, the globalization of markets refers to the merging of historically distinct & separate national markets into one huge global marketplace. That concept comes on the discussion only because of the McDonalds interference in the international business. McDonalds already proves their demand in the global market by providing quality hamburgers & other fast foods. Its almost everywhere around the world. By 1997, McDonalds had 10,752 restaurants in 108 countries outside of the United States. They generated $16.5 billion (53 percent) of the firms $31 billion in revenues. And McDonalds shows no signs of slowing down.

McDonalds is already in more than 120 countries. From the U.S. market to Europe, Europe to Asia, all around the globe, this international franchising company McDonalds has already built up more than 28,000 restaurants. Recently they captured the Indian market with high success as well. As they already creating demand in the Asian markets & with that, if the possibilities are in the favor of Bangladesh, then our country can create a great momentum with McDonalds. Furthermore, there is a golden opportunity for McDonalds to expand their global foodservice in Bangladesh also.

Scope & Limitations:

Scope of the Problem:
Premier franchising company McDonalds is spreading out all over the world. There are lots of fast food shops around Bangladesh. But, no one yet has taken the initiative to bring the worlds one of the best franchising company McDonalds in this country. So, theres a great scope for us to bring McDonalds in Bangladesh.

Limitations of the Problem:

There were certain limitations of the problem we face both in report preparing & also regarding franchising of McDonalds in Bangladesh.

Time limitation: A very short time was required to make such a vast report. We needed to collect a lot of information about the company. But the time constraint was there. Unavoidable conditions: Some of the unavoidable conditions also had a deterring effect on preparing the report. (Like, strike, etc.) Restriction within the problem: High initial investment, unavailability of the ingredients of the foods, lack of technology, etc. are the restrictions within the problem.

Absence of some information regarding data collection: While making the survey for data collection, we have faced problems. Some of the information which were really essential was hard to collect.

Historical Background

Recently McDonalds captured the Indian market with high success. As they are already creating demand in the Asian markets & with that, if the possibilities are in the favor of Bangladesh, then our country can create a great momentum with McDonalds. Furthermore, there is a golden opportunity for McDonalds to expand their global foodservice in Bangladesh. McDonalds is already in more than 120 countries. From the U.S. market to Europe, Europe to Asia, all around the globe, this international franchising company McDonalds has already built up more than 28,000 restaurants, but not in Bangladesh. And, till now (2002) we could not franchise McDonald fasts food restaurant in Bangladesh, and fulfill the demand for the McDonald food grievers. Therefore it is time for McDonalds to come over Bangladesh and be a part of our daily life, where we can enjoy all the delicious fast food with in the reach of our hand. This report will help us to take the flavor of Franchising McDonalds in Bangladesh.

Sources & Methods of collecting data

For the further enhancement of our report we uses several sources & methods for gathering information. These data & information helps us to predict & assess different sorts of factors that needed to be considered for the franchising of McDonalds in our country.

Sources: While preparing this report, we used both primary & secondary sources to collect data.

Primary sources: We did questionnaires, surveys, and interviewing people from different fast food shops etc. on collecting informations.

Secondary sources: As secondary sources we got the help from different books, websites of McDonalds etc. for our convenient on preparing this report. On collecting the datas, first of all we made a questionnaire for the general public. We constitute some general viewpoints of those people regarding the franchising of McDonalds in our country & also the present fast-food condition of our country. Then some personal interviews with the sales people of some of the fast food shops over here also provided extra help to us. In addition, the official web site of McDonalds gives us more information about their franchising requirements & other important & significant factors. Accumulated with all these sources, some of the books also provided some general but imperative informations on preparing & developing the report.

Report Preview
1. BRIEF VIEW AT MCDONALDS 2. FRANCHISING REQUIREMENTS OF MCDONALDS 3. HOW CAN MCDONALDS IS INTERNATIONALLY COMPETITIVE 4. FACTOR CONDITION 5. DEMAND CONDITION 6. RELATED & SUPPORTING INDUSTRIES 7. FIRM STRATEGY, STRUCTURE & RIVALRY 8. SWOT ANALYSIS OF MCDONALDS (STRENGTH, WEAKNESS, OPPORTUNITY & THREAT) 9. PEST ANALYSIS OF MCDONALDS (POLITICAL, ECONOMICAL, SOCIAL, TECHNOLOGICAL) 10. ESTIMATING THE MARKET POTENTIAL OF MCDONALDS 11. ESTIMATING THE SALES POTENTIAL OF MCDONALDS 12. DECIDING THE PRODUCT POLICY OF MCDONALDS 13. IMPLEMENTING A PRICING POLICY OF MCDONALDS 14. MAKING A DISTRIBUTION POLICY OF MCDONALDS 15. DEVELOPING A PROMOTION POLICY OF MCDONALDS 16. CONCLUSION 17. QUESTIONNAIRE ON MCDONALDS 18. ANALYSIS OF THE QUESTIONNAIRE 19. ANALYSIS OF THE PRESENT SITUATION 20. RECOMMENDATION 21. THE FUTURE PLAN 22. FEASIBILTY STUDY

Brief view at McDonalds

McDonalds has always been a franchising Company & has relied on its franchisee to play a major role in its success. McDonalds remains committed to franchising as a predominant way of doing business. McDonalds continues to be recognized as a premier franchising company around the world. Approximately 70% of McDonalds worldwide restaurant businesses are owned & operated by independent businessmen & women, McDonalds franchisees. Ray Albert Kroc (1902-1984), was the man behind the picture who brings McDonalds in this continuous success. McDonalds rich history began with him. The strong foundation that he built continues today with McDonalds vision- WORLDS BEST QUICK SERVICE RESTAURANT EXPERIENCE. McDonalds is the largest & best-known global foodservice retailer with more than 28,000 restaurants in 120 countries. Yet one day, even as the market leader, McDonalds serves less than 1% of the worlds population. McDonalds outstanding brand recognition, experienced management, high quality food, site development expertise, advanced operational systems & unique global infrastructure position them to capitalize on global opportunities. Its just because of their uniqueness in the vision where they are dominant as the provider of GREAT TASTING FOOD! SUPERIOR SERVICE! EVERYDAY VALUE! CONVENIENCE! McDonalds is, by choice, an equal opportunity franchiser, with a proven track record of franchising to all segments of society. In the U.S. minorities & women currently represent over 34% of their franchisees & 70% of all applicants in training. McDonalds is currently seeking highly qualified individuals to join the McDonalds family as new franchisees in both U.S. & International markets.

Franchising Requirements of McDonalds

Business qualification that McDonalds seek in its potential franchisees High personal integrity Entrepreneurial spirit & strong desire to succeed A proven ability to motivate & train people The ability to manage finances A willingness to personally devote fulltime A willingness to complete a comprehensive training program Financial resources McDonalds franchising cost New restaurant costs range from $444,800- $742,150 Additional cost for size, area, kitchen, decoration, inventory, pre- opening expenses Cash or liquid assets require to acquire a franchise- $175,000 McDonalds grant a Business Facilities Lease (BFL) An individual must have a minimum of $100,000 of no- borrowed personal resources to be considered to be franchise under the BFL Program. Availability of opportunities in ones country The availability of franchises in specific geographic areas must be discussed with McDonalds franchising personnel in the specific country for which someone have interest.

In PORTERS Framework McDonalds

The following are the four dimensions of Porter diamond Model that are concern about the international competitiveness of a product or company:

Factor Condition Demand Condition Related & Supporting Industries Firm Strategy, Structure & Rivalry All of the above terms of Porter Diamond Model will be taken into consideration, when McDonalds will enter in the Bangladeshi market. How this framework matters in Bangladesh is really important to know when McDonalds is there. So, lets have a close look when worlds biggest fast-food provider McDonalds & Porters Framework combines together.

Factor Condition: Economic theory says factors of production are labor, land, natural resources, capital & infrastructure. Those factors eventually will determine the flow of trade. The franchisee for McDonalds has to determine these factors that makes the most use of it. From the perspective of skilled labor & infrastructure, Bangladesh will get the advantage of large population with potential manpower. Also it has many unemployed people who are seeking for job every time. So, employees for the production house & also for the sales centers & offices will be very much available. So labor will not be a major factor to be considered. The location of the center can face a bit problem, as there is scarcity of place in Dhaka city- as it is the most populated cities in Bangladesh. Reasonable place in a reasonable cost (rental or sold) might be a problem to find. So, for a better location where McDonalds can have potential customers, places like Gulshan, Banani, Uttara, Baridhara or Dhanmondi can be the better options.

Continues with the framework McDonalds

Demand Condition: If we give a close look at the local demand of fast food in Bangladesh we will find out that there are very few good quality fast food shops meeting the demand of potential customers. The demand can be mainly found in Dhaka, because all the big & famous schools, colleges, universities & offices are situated over here. The appeal for McDonalds is greatly expanded by the people who can afford to buy, who has the craze, & who follows the trend. The sites or the locations that we already mentioned for McDonalds, is the reason for those people who have the attitude & acceptability power. In these posh areas of Dhaka, fast food centers are very much popular; food lovers gather there is large numbers to have snacks & drinks & also to pass some quality time. Because of lack of entertainment places, people of Dhaka also wish the food centers to be big & comfortable enough so that they can pass some times there. As we can see that other companies like Wimpy, Helvetia are already in the Bangladesh & captured the target market, McDonalds has got a greater chance to be the center of the attraction in the fast food competition over here.

Related & Supporting Industries: In that term, McDonalds will face most of the problem. As the climate & geographical conditions of Bangladesh are very different from that of U.S.A. & U.K., the quality raw materials that are essential for a food item to be an actual McDonalds item will be very difficult to get. The firm may not find the right quality of meat, potatoes, and pickles etc. they may need to produce them here or bring from some other countries to maintain the quality of the foods. For example, the potatoes used for the French Fries of McDonalds have to be a certain size & shape; they do not make fries from any other types of potatoes. But those types of potatoes are not available here; even the ground & climate are not also perfect for those potatoes. Same thing can be happen with other materials also- that will increase the cost of making the foods & subsequently the price of the foods- which might be unaffordable for the customers. In that case it would be good options to buy local materials without hampering its quality. It will be good for our economy because it encourages local industry.

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Still continues with the framework McDonalds

Firm Strategy, Structure & Rivalry: The Government of
Bangladesh does not create many problems for any foreign company to enter its market. So from that perspective, there are fewer problems expected. Rivalry wise, McDonalds dont have that much rivalry. The only direct rival in Dhaka may be Wimpy. Except for that, all the other fast food centers like Western Grill, Helvetia, American Burger, Swiss, & Golpea Burger are not comparable to McDonalds- as their quality, price, promotionall the styles are different from others. Just to take in consideration that buying power matters, McDonalds should offer the price of the snacks & drinks- like Wimpy or other big fast food shops are providing. The target should be the customer.

So, after considering all the factors, McDonalds can enter the Bangladeshi market for its demand & brand image. If they can attract the customers through its world quality foods & services with the convenience, then McDonalds has got a glorious opportunity to make a relationship with our country also- as they did with one hundred & twenty countries already.

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SWOT ANALYSIS of McDonalds

Now we are going to show a complete picture of the strength, weaknesses, opportunities, & threats of McDonalds when itll make its step on our country. Lets give a closer look on the following term:

STRENGTH McDonalds
Unique brand quality fast food provider McDonalds hold some exclusive strength. They can make a worth use of those when theyll be in the Bangladeshi market. Those are as following: McDonalds is famous for their brand image all around the globe. The potential customers of Bangladesh will support them, as McDonalds title is already in their mind. Means, peoples awareness will automatically create the demand. McDonalds is the provider of world quality foods. Different varieties of food items are there in McDonalds. This is one of the major strength that McDonalds holds to be successful in our country. McDonalds will get the maximum competitive advantage in Bangladesh for their exclusive brand image & superior food & service. Demand for McDonalds foods is another strength for them. McDonalds will sell their foods in a comparable price like Helvatia & Wimpy, where these two are regarding as their main competitor. McDonalds is always famous for their customer- oriented attitude. They are always conscious about consumers perception, their choice, their demand & so on. They always take customers suggestions & all the information. Such kind of attitude can easily make customers in Bangladesh. McDonalds always provide gift items with each purchase of food items or accessories. Such step will attract more customers in Bangladesh.

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Continues with the SWOT ANALYSIS WEAKNESS McDonalds

Though McDonalds is really strong for the above strength, they might face some problem for some of the weaknesses. Those are as following: A high initial cost is needed for the establishment & decoration of McDonalds. Unavailability of some raw materials can be a major weakness of McDonalds in Bangladesh. As we already mentioned, setup cost for McDonalds is really high. So, affordability is really necessary for that. Location is a big factor for McDonalds in Bangladesh. They need a good place to be selected for their location.

OPPORTUNITIES McDonalds
McDonalds hold some fabulous opportunities in Bangladesh as a world-class fast food provider. Those opportunities are as following:

For a high demand of fast food in our country, they can set the high standard of fast food restaurant over here. Availability of supplier will be on their support. Availability of labor is also one of their advantages in Bangladesh. McDonalds will get the opportunity of expanding their branch on the other part of the Bangladesh if they can create & maintain the overall demand. So, the branching opportunity is also in McDonalds favor.

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Still continues with the SWOT ANALYSIS THREATS McDonalds

McDonalds might face some threats as well in Bangladeshi market. Those threats are very minor for them, but possibilities are there in hampering their reputation. Those few threats are as following: As a major opponent, Wimpy can be a threat for them. Economic infrastructure of Bangladesh is not that superb. So that can be judge as a threat for this world quality restaurant. During strike time, supplier of McDonalds will face a major problem. Lack of customer at that time can be a major threat for their profit- making flexibility.

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PEST ANALYSIS of McDonalds

Now we will focus on the Political, Economical, Social, & Technological aspects in terms of McDonalds entrance in Bangladeshi market. How these terms can intervene in the condition of McDonalds, PEST Analysis will give us a clearer view on that.

POLITICAL CONDITIONS
Following political conditions can affect McDonalds in different manner: Political corruption like strike, hartal, etc. can negatively affect McDonalds. Government rules & regulations can intervene in McDonalds success. Trade barrier can create a lot of problem for McDonalds on bringing raw materials from other country.

ECONOMICAL CONDITIONS

McDonalds

Some economical criterias can affect McDonalds. These are as following: Poor economical infrastructure might affect McDonalds. Financial help can be generated from the banks of Bangladesh. Maintaining the profitability with high investment to be returned can be a Job in hand for McDonalds.

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Continues with the PEST ANALYSIS

SOCIAL CONDITIONS

McDonalds

There are some social factors that should be taken under consideration while entering the Bangladeshi market. McDonalds has to be lineal to judge those factors. Those are as following: First of all, they have to understand the culture of Bangladesh. Food must be provided according to the cultural substances. Religion is also important to consider. 95% people in Bangladesh are Muslim. There are also other religions people also. So, they can bring beef, chicken, vegetableall kind of food in this country.

TECHNOLOGICAL CONDITIONS

McDonalds
Some technological criterias should be mentioned which is important in McDonalds perspective. Those are as following: McDonalds technological items give them the competitive benefit on producing high quality food. They are also known as worlds best quick service restaurant. Its just because of the use of integrated & fast machines. The McDonalds franchising department will provide all the necessary machines. We dont have to pay any additional fees or charges for those exclusive machines. Itll be included with the initial cost.

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Market Potential of McDonalds

Demand for McDonalds:
We conducted a survey that was based on two things. One was the present condition of the fast food shops in Bangladesh & the other one was introducing McDonalds in Bangladesh. In the first part we tried to find the demand for fast food, where we found the demand has increased rapidly among the potential customers. The reason behind this is, in our country we are lacking of recreational areas & people always look for a place where they can go, spend some time, & relax. On the other hand, in the second part of our survey, we found that McDonalds can meet the vast demand of fast food in our country. Almost 95% people are already ware of McDonalds & around 80% of the targeted audience want McDonalds to be in Bangladesh.

Quality of food in McDonalds:

As we already know McDonalds unique vision, Worlds best quick service restaurant experience- is just because they are providing the supreme quality of food items. Some of the ingredients they are using for making those quality foods, they just bring those form the country where they origin from. They never sacrifice quality for anything else. Along with quality they also care about balance, variety, & moderation in consumers diet. Itll be beneficial for our countrys people, where they can get some world famous quality foods from McDonalds.

Varieties of food in McDonalds: Variation may occur depending on the local supplier, the region of the country & the season of the year. For instance, McDonalds provides specialties such as Egg McMuffinn, Sausage McMuffinn, Sausage Biscuit, pasteurized Eggs, Breakfast Sauce,

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Steak, Egg & Cheese Bagel & so on for breakfast only. These delicious items are hardly available in the either of the fast food restaurants of Bangladesh.

Sales Potential of McDonalds

ESTIMATED TOTAL COST: Approximately 5,00,00,000Tk. Cost Type NEW RESTAURANT COST OPENING EXPENSES 26,10,000Tk. INITIAL CASH INVESTMENT PROMOTIONAL CAMPAIGN COST OTHER EXPENSES TOTAL COST (approximately) 58,00,000Tk. 75,00,000Tk. 50,00,000Tk. 4 ,99,10,000Tk. Cost in Tk. 2 ,90,00,000Tk.

TARGETED TIME TO REACH THE BREAK- EVEN POINT: 4 yrs SALES NEEDED TO REACH THE INITIAL POINT (per year): 1,24,77,500Tk. ESTIMATED SALES: ITEMS BIG MAC MEAL CHICKEN NUGGETS FRENCH FRIES GRILLED CHICKEN SALES (Price*quantity per day*365days) 140*40*365 = 20,44,000Tk. 120*25*365 = 10,95,000Tk. 40*100*365 = 14,60,000Tk. 200*25*365 = 18,25,000Tk.
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CHICKEN McGRILL FILET- O- FISH JUICES SODAS OTHER ITEMS TOTAL SALES (per year)

145*25*365 150*25*365 50*25*365 30*200*365 *****

= 13,23,125Tk. = 13,68,750Tk. = 4,56,250Tk. = 21,90,000Tk. = 7,50,000Tk. = 1,25,12,125Tk.

(The above chart shows the estimated sales of McDonalds each year. This calculation will vary according to the demand, quantity, preferences & so on. It can also vary yearly. So, This is just an estimated figure by how McDonalds can reach the break-even point in 4 yrs.)

Product Policy of McDonalds

Product policy of McDonalds must be according to ones country culture and their food habits. For instance, 98% of the Bangladesh population is Muslims and as a result pork is prohibited in Bangladesh. Therefore, any kind of food items made from pork will not be accepted by our culture. So the management who are in charge of this has to keep this in mind while franchising McDonalds in Bangladesh. There are a wide variety of products that we can offer but there are some specific products that we cannot afford to offer. Products such as Hamburger; Julienne Ham; Ham, egg and cheese bagel; Peppered bacon; and all the sausages should be made from chicken or beef as preferred.

So to address the ingredients of McDonalds food, a complete list with details of the menu items from Big McSandwiches to small order of fries must be provided to the franchisee of Bangladesh. It therefore gives the management a clearer view about the contents of the food items as well as nutrition analysis.

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Pricing Policy of McDonalds

Now we are going to focus on the pricing policy of McDonalds. it should be according to the pricing policy of Wimpy as well as other local fast food shops for competitive reasons. If compared with Wimpys King size burger, which is 150Tk, McDonalds Big Mac will cost 140Tk. Chicken Nuggets (6 pcs.) in Wimpy costs 150Tk, same as in Helvatia, whereas is McDonalds it will cost 120Tk. This perhaps gives McDonalds a competitive advantage over the local competitors regarding the pricing policies & also in terms of the quality of the foods. A SAMPLE PRICE LISTING OF SOME FAMOUS McDonalds ITEMS

ITEMS
BIG MAC MEAL CHICKEN NUGGETS (6 pcs.) CHICKEN McGRILL GRILLED CHICKEN BREAST FILLET CRISPY CHICKEN BREAST FILLET CHICKEN MAC NUGGETS
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PRICE (In Tk.)

140 120 145 160 140 140

(6 pcs.) FILET- O- FISH GRILLED CHICKEN FRENCH FRIES CAESER SALAD CHEF SALAD GARDEN SALAD LOW FAT GRANOLA FRUIT & YOGART & PARFAIT SHAKE MIX ORANGE JUICE SODAS HOT CHOCOLATE MIX COFFEE TEA

150 200 40 120 120 135 120 140 80 50 30 50 30 25

Distribution Policy of

McDonalds

Distribution is needed very much for any company, and more complicated while a foreign company is entering a new market. It goes with McDonalds while entering Bangladesh. For the storehouse distribution, McDonalds does not need to work hard at first, as in the beginning it will start with only one place in Dhaka. So in the preliminary stage, the distribution of the foods to the customers will not be of much hazard. And even when there will be more than one stores, the distribution of the foods to the customers will never be a very big thing, as the foods are always prepared on spot at McDonalds. So the foods are always ready to reach the customers within some moments. The main distribution McDonalds has to think is the external distribution of how will they get the supplies of the raw materials and from where. There are many materials usually used to prepare the foods that are not easily available in Bangladesh. For those materials McDonalds has to bring them from other places, like India. As an example,

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the potatoes used by McDonalds for preparing their French-fries have to be of a certain quality. The potatoes have to be of a certain shape and size, and this needs special type of soil to grow, which may not be found here. So maybe the potatoes have to be brought from somewhere else. Like that items as sesame seeds for the buns, special sauce of McDonalds, tartar sauce, cellulose gum and some others are not very much available here. They need to be brought from somewhere else. According to the management contract policy of McDonalds, they have their certain distribution system. For the raw materials, they have certain places from where to bring which product and how. So we have to follow the instructions of the policies given by the authority to conduct the distribution.

Promotion Policy of McDonalds

Biggest fast food restaurant McDonalds promotional style will be vast. As we already know that they are very familiar with the potential customers in Bangladesh, their promotional activities will give them the additional benefit with the existing awareness among customers. Now let see what are the promotional activities McDonalds can plan & implement for making itself as a big shot in Bangladesh. There are different types of promotional campaign that can be taken to consideration. Further discussion will give us a clear view of McDonalds promotion policy. Advertising in the front page of the famous newspapers of our country. Like, The Observer, The Daily Star, Ittefaq, and Jugantar etc. Advertising inside the magazines. Lots of leaflets will be published & distributed in the roadside to make the awareness more among the people.

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Attractive brochures will also be published for more convenience. Electronic media, like television, radio will also help with general advertisement for more publicity. Itll be generated almost everyday. Use of Internet based media will help McDonalds to advertise itself that it has now in Bangladesh. Advertisement in different web- sites & web pages will allow McDonalds to make more of their publicity. McDonalds will provide gift items with each food purchase; this can be a very good promotional policy for McDonalds. From this they can gain much more competitive advantage, because still no fast food shop in our country is creating such kind of attraction. McDonalds will make a KID ZONE for small children just beside or inside the food store. This will make a quite good attraction among the young children. Finally, a lot of advertisement in the road- side billboards, posters, banners, & signboards will attract people. Whenever they see, wherever they see- all around the city; will give them the 100% competitive advantage in the fast food competition.

Conclusion

So, in the present condition of the fast food market in Bangladesh, arrival of McDonalds will be a great achievement for our country. The people will be able to taste the world quality food in comparison of other fast foods available in the country. As we have already figured out that factors & demand condition is already in our favor, itll be a great advantage for us to bring McDonalds in Bangladesh. Though the initial investment is very high, but the return in long term can be very much effective. So, everyone can expect McDonalds to be in Bangladesh very soon.

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Feasibility Study
After all the analysis & planning, if we do the feasibility study for McDonalds, then some criteria has to be consider. Those are as following:

For bringing McDonalds in Bangladesh, a very high investment is necessary. Making such a high payment at- a- time is really tough. Initial cost for bringing McDonalds is also very high. Cash/ liquid assets require to acquire a franchise is worth $175,000, which is a very big amount. Other additional costs are also there to make the investment very high. When McDonalds will be in Bangladesh, they have make a very quick sales & heed to reach at the break- even point in 4 yrs time. If they couldnt reach the target, then they might face a severe struggle in Bangladeshi market. They might create the attraction in the first year of their arrival. But if they couldnt continue in the same speed next couple of years, then loss will be there.

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Price of McDonalds items will play a big role on their success or failure. If the price is too high, the customer will be at the minimum level, because of the low affordability. McDonalds cant even dream of the profit then in Bangladesh.

So, we can conclude in our feasibility study that, for the high investment & price of foods, its not quite feasible enough to bring it in our country. Its just because, when a company is in international business, theyll always look for demand & then profit will be automatically there. So, if McDonalds cant guarantee to cover the whole cost in 4 years after their arrival in Bangladesh, then in our view its not feasible to bring McDonalds for the time being.

APPENDIX
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SAMPLE QUESTIONNAIRE
1. 2. 3. 4. Age: Gender: Profession: Residence: .

5. How do you rate fast food in Bangladesh? a. Poor b. Moderate c. Good d. Excellent

6. Do you want more fast food shops in Bangladesh? a. Yes b. No c. Dont know

7. How do you rate the quality of fast food in Bangladesh? a. Satisfying No comments b. Not satisfying c. Ill eat anyway d.

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8. How do you rate the price of fast food in Bangladesh? a. Affordable doesnt matter b. Cheap c. Oh my god! d. Price

9. Which fast food shop you prefer in Bangladesh? a. Helvatia e. Other 10. b. Wimpy c. Golpea Burger d. Swiss

How often you take fast food? b. Everyday c. once

a. Once a year (if I have money) a week d. never

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Have you ever heard of McDonalds? b. What is McDonalds?! c. Sounds

a. Definitely familiar!

12. If you found McDonalds in Bangladesh, what will be your reaction? a. Who cares? true 13. b. Wow c. So funny d. Dream comes

If McDonalds comes to our country, will you try it? b. Never- ever c. if its affordable, Ill be

a. Id like to there everyday

14. What price range of McDonalds fast food can make you go there? a. 100-150 b. 150-200 c. 200-250 d. >250

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15. With whom you always want to be in the McDonalds? a. Friends b. Mom & Dad! c. Girl friend/ Boy friend Alone e. Grandma! 16. a. Yes Have you ever tasted McDonalds in abroad? b. No c. I dont remember d.

17. Where you want McDonalds to be in the Dhaka City? a. Banani e. Uttara b. Dhanmondi c. Gulshan d. Baily road

18. Do you want McDonalds to compete with other fast food shops in Dhaka? a. Not at all b. Let them fight! c. Let see who wins? d. McDonalds will win! 19. McDonalds vision is WORLDS BEST QUICK SERVICE RESTAURANT EXPERIENCEWhat do u think about their vision? a. Acceptable b. oh really?! so (cuz I dont know) C. Cool d. I dont think

20. Do you really want to see McDonalds in Dhaka city? a. Never b. Im confused c. If its here, Ive no problem d. I want McDonalds!

THANKS FOR YOUR CO- OPERATION Situation Analysis

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Present condition of fast food shops in Bangladesh

Fast food is a growing trend in Bangladesh. Its rapid increase has showed that fast food restaurants are quite popular among the local people, especially the youth. A survey was conducted which was based on the present demand of fast food in our country. Through the survey we found out the following preferable conditions. Such as:

The growing demand for fast food in Bangladesh is 85%. According to the peoples need, there are not enough quality fast food shops in Dhaka. From the survey it shows that 92% of the people seeks for more quality fast food shops. Reviewing the customers preference, it shows that 36% people are not satisfied with the existing quality of the fast food. Only 31% of the people are satisfied with the quality. The rest of the people would eat anyway. In terms of price range, 84% of the people can afford to have fast food. Whereas, only 8% thinks that its beyond their affordability. Most popular fast food shop in Dhaka right now seems to be Helvatia. They have the preference of 60% people.

Situation Analysis

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Introducing McDonalds in Bangladesh

Along with the present situation of fast food in Bangladesh, we also found from the survey that how the people will perceive the introduction of McDonalds. 95% of the people are already aware of McDonalds. There is a positive reaction pattern among 80% of the people who are demanding for McDonalds to be in the Dhaka City. 69% of the people are expecting to be the price of the food items of McDonalds within the range of 100-150Tk. Majority of the people wants McDonalds to be situated in Dhanmondi area. It was quite obvious from the survey that McDonalds will definitely have a competitive advantage. Its about 85% people who believe it that way. The potential age group is found to be between 16- 28. Majority of the people would prefer to go to McDonalds with their friends & family.

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BIBLIOGRAPHY

Hill, Charles E. L. International Business. USA: McGraw- Hill Companies, 1994. Czinkota, M.R., Ronakainen, I.A., & Moffett, M.H. 1994, International Business, Third edition, The Dryden press. E. Boon Lovis, L. Kurtz David. Contemporary Business Communication. USA: Prentice Hall, 1997, Second edition. Lesikar, V.Raymond, Pettit, D. John. Business Communication. Delhi: Laxman Chand Arya, 2000, Sixth edition. From the original website of McDonalds- www.mcdonalds.com

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