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Success of the McDonald's franchise
Mcdonald's case study from warren j keegan, global marketing
Mcdonald's case study from warren j keegan, global marketing
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Recommended: Success of the McDonald's franchise
Comparative Analysis McDonald 's is the largest global fast-food company operating in over 120 countries. No matter where you are in the world- the experience of ordering, buying, and eating a meal at McDonald 's is virtually the same even though menu items may be different depending on its locality. The success of McDonald 's is due to its employee training, high level customer service, quality of product, fast service, and hygenic establishments. McDonald 's operating system is a great example to other businesses since their operations are designed to satisfy customer expectations and the way they conduct business is the same around the world by successfully transfering expertise developed first at home to other markets worldwide. Two countries …show more content…
"Localized menu, delivered with precision quality at a price that works. One other trick they have used very effectively is an entry level ice cream which fuels the ability for consumers who might not ordinarily be able to afford to become a customer." The kind of customers McDonald 's attracts in India is very different from other countries. Adapting McDonald 's for the uniquely Indian market was a big expense when they started, for example: there was no lettuce supply chain in India and most people used cabbage on burgers- so they had to set it up from scratch and the infrastructure is also now becoming a local venture. They took apart the concept of the burger and piece by piece every component is now made locally as well as all the kitchen fabrication. The refrigeration, chillers and freezers and furniture are also made locally and in most cases their global suppliers have worked with local businesses to make that happen. They want to take it further and their current challenges are to make fryers locally. While recent weakening of consumer spending has seen a slowdown in sales, overall they have managed to grow same-store sales by 200% and are still not done. The plans are to open another 1,000 restaurants in the next decade since India’s …show more content…
In America you will see him at McDonald’s branches throughout the country waving a friendly “hello” according to American custom. In Thailand, Ronald is a culturally aware company mascot and instead of his hallmark wave gives a very Thai “wai” instead. Another difference between the US and Thai McDonald’s is the availability of delivery. This makes sense when you consider the traffic in Bangkok and must really increase sales for those people who are craving some McDonald’s but don’t want to worry about driving there and back. Talk about adapting to a country in order to sell your product. McDonald’s is one company that is slowly infiltrating into every corner of the
McDonald’s Corporation (MDC) known for its famous golden arches is the number one largest chain of fast food restaurant in the world. With headquarters in the United States and restaurants in 120 countries serving around 86 million customers a day. About 80% of the restaurants are operated by a franchisees or affiliates. McDonald's revenues come from the expenses paid by the franchisees such as fees, royalties, rent, as well as sales in company-operated restaurants. According to Hoovers, McDonald's Corporation in 2013 made and annual revenue of $28,105.7 compared to $27.5 billion made in 2012. Most of the restaurants are freestanding units offering dine-in and drive-through service, but McDonald's also has many restaurants located in airports, retail areas, and other high-traffic locations. The company has nine major markets – Australia, Canada, China, France, Germany, Japan, Russia, the UK, and the US – that account for 75% of sales. Although McDonald is a leading brand, the top companies that give McDonald competition include: Doctor’s Associates Inc., YUM! Brands Inc., Starbucks Corporation, Darden Restaurant Inc., and Burger King
I believe that McDonald’s should respond to the comparison between Ronald McDonald and Joe Camel by removing Ronald McDonald from the campaign. They should mot feature their mascot since it can have negative effect on their campaign. It is unethical to use cartoon characters to try to market for children. They should’ve focused more on creating awareness to their newly added healthy menu to the parents and try to get the parents to come to McDonald instead of advertising to the children. They should still use Ronald McDonald as an entertainment
A world without the Big Mac, Happy Meals, Chicken McNuggets, and the phrase “I’m lovin’ it,” is almost inconceivable. People around the globe have become accustomed to the high gleaming golden arches that make up the famous emblem for McDonald’s. McDonald’s has grasped the concept that culture flows from power. In this case, the American culture flows through the veins of this fast-food giant and the more that is supplied, the greater the demand. It is no secret that McDonald’s has become one of the world’s largest fast-food retailers. It has become a well known icon that has played a huge part in globalization, with chains located in many different countries… transforming the meaning of fast-food all around the world.
McDonalds also uses diversification in its global marketing. McDonalds recognizes that different countries have different values, customs, and tastes. Therefore, McDonalds satisfies these diverse global tastes by diversifying the menu according to each country’s unique preferences. This added diversification tactic, allows McDonalds to stay competitive in a global market. Examples of McDonalds globally diversified menu would be that McDonalds offers an exclusive beefless menu to its customers who live in India. This is because eating beef in India is sacrilegious. To meet the tastes of customers in India, McDonalds created new offerings such as the “Pizza McPuff” and the “McVeggie.” McDonalds considers the cultural tastes in every country it opens its doors
Mc Donald’s is world’s famous fast food restaurant chain consisting of 34000 local restaurants. It is present in 119 countries serving 47 million customers on daily basis. It is globally recognized by the Golden arches as its logo. In 1954, Mc Donald’s founder Raymond Kroc passed by a hamburger stand in San Bernardino, California and then he came up with an idea of forming a countrywide fast food chain.
According to Royle (1999) McDonald’s is a very large multinational enterprise (MNE) and the largest food service operation in the world. Currently the company has 1.5 million workers with 23,500 stores in over 110 countries with the United Kingdom and Germany amongst the corporation’s six biggest markets, and over 12,000 restaurants in the United States. In 1974 the United Kingdom corporation was established and in 1971 the Germany corporation was established, currently the combined corporation has over 900 restaurants and close to 50,000 employees in each of these countries (Royle, 1999).
McDonald’s is one of the popular fast food chains in Hong Kong and the success of McDonald’s is due to it is able to create a homogeneous “global” culture that suit to the demands of a capitalist world. In Hong Kong, Time is money thus McDonald’s strategy is consistently fit to the fast food industry. The company has both economic strategy targeting at customer globally and locally.
Strategic management is the way of implementing different business strategies and plans to attain certain specific aims and objectives. It involves collection of decisions and different rules and policies that tend to define the results that are generated in the form of better business performance. For undertaking these activities, management should possess an in depth understanding and be able to assess the general and competitive external and internal business environment to take proper business decisions (Cornelis, 2010). McDonalds is an organization that offers a range of products and services in a very effective manner that makes it a market leader in providing fast food services all over the world. By enforcing suitable strategies, McDonalds can increase its level of sales and will also help in upgrading as well as sustaining the market by acquiring competitive advantage (Schoenberg, Collier and Bowman, 2013).
The McDonald's Corporation is the largest chain of fast food restaurants in the world. It is franchised in over 119 countries and serves an average of 68 million customers daily. The company started in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald in the United States. They reorganized their business as a hamburger stand in 1948. In 1955, Businessman Ray Kroc joined the company as a franchise agent. He purchased the chain from the McDonald brothers and oversaw its global-wide growth (McDonald’s 2014).
"Studying McDonald's ABroad: Overseas Branches Merge Regional Preferences, Corporate Directives." Editorial. Nations Restaurant News 11 Nov. 2005: n. pag. MasterFILE Premier. Web. 5 Mar. 2013.
In today’s market, McDonalds faces numerous challenges such as fierce competition, a more health conscious customer, and the continual need for improved customer satisfaction and menu. McDonalds needs to go through some changes in order to remain ahead in the fast-food industry.
This proposal is aimed at conducting a research on the market potential for Fast Food Restaurants Services in India. It will be mainly focusing towards understanding the importance of various factors affecting the choice and the need of fast food outlets by Indian young consumers. Also, it aims to study the consumption pattern towards fast foods particularly with respect to the frequency of visits and choice of fast food outlets. It aims to study the impact of hygiene and nutritional value of fast foods on consumer purchase decisions. These services may provide an opportunity to develop a niche market. This proposal aims to study the feasibility and practicality of implementing this idea.
McDonald’s has proven over time that the business practices they utilize work well and have led them to obtaining the title of the largest food retailer in the world. The founder of the company made a tactical decision in franchising the idea of providing fast food at a cheap price. Today, fast food has become a staple of not only American life but a viable food option all over the world. For McDonald’s a critical factor in them reaching the level of growth they currently experience has been franchising. It can be assured that McDonald’s will continue to grow through the usage of the franchising techniques as new food markets continue to develop all over the world.
Much like a smile, the “Golden Arches” can be understood in any language. The McDonalds brand is the most well-known, internationally embraced fast food empire. McDonalds operates over 31,000 franchises throughout the world, with the United States leading the way with a whopping 13,381outlets as of May 2009 [1]. McDonalds has the fast food market cornered, offering an increasing variety of food of beverages, marketed to people of all ages to eat at any time of the day. However, being a corporate giant has its issues. McDonalds has faced a lot of criticism for its high-fat, high-sugar, potentially addictive menu. While the corporation is not likely to outright admit responsible for its actions, McDonalds has seen some changes to address some of the issues. Despite the flaws in the public elements of the brand, McDonalds has established an almost recession-proof economic base [2].
McDonald’s target market is conscious of budget and is made up of those who is looking to stretch a dollar while still getting the quality food in clean environment. One of the main market segment of McDonald’s is the youth and the family with young children. Most of McDonald’s locations have indoor playground to attract the families with young children. It offers economic way to spend quality family time without stretching their budget. McDonald’s failed attempt at Angus burger is a prime example that McDonald’s target market is not the high end premium dining but the value driven, simple, and convenient food