Product and competitive environment
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
Doctors’s Associates, Inc.: A company who owns and operates Subway. It has approximate 40,855 restaurants in 105 countries, in January, 1, 2014. The total annual revenue is of $32.1 million dollars.
Yum! Brands, Inc. or Yum! Is the world’s largest fast food restaurant company- they have more than 40,000 restaurants globally and operates in 125 countries. YUM! Licenses Taco Bell, KFC, Pizza Hut and Wing Street. The total annual revenue is of $13,084 million dollars.
Starbucks Corporation is the largest coffeehouse company in the world, with 20,891 stores i...
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Advertisers have done a lot of research looking into these behaviors to ensure their resources are spent in the most profitable areas. In Kim Souza’s “Wal-Mart to focus more on Hispanic Shoppers”, she showcases that Walmart recognizes the importance of the Latino demographic and is creating a shopping atmosphere that Latinos are comfortable with. Within the article, there is data that show several differences in Latino consumer behaviors compared to other consumers. Below is the data:
U.S. Census Bureau, (2010). Cumulative Estimates of the Components of Resident Population Change by Race and Hispanic Origin for the United States. Retrieved from http://www.prb.org/Publications/PopulationBulletins/2010/latinosupdate1.aspx
Suro, Roberto. "The Rise Of The Second Generation - Changing Patterns In Hispanic Population Growth." Pew Hispanic Center (2003). 18 July 2005 .
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U.S. Department of Education, National Center for Education Statistics. (2003). Status and trends in the education of Hispanics (NCES 2003-008). Washington, DC: U.S. Government Printing Office.
Secondly, another area that is highly influenced by American society is the religion of the Mexican Americans. Ninety percent of Spanish speaking people are Roman Catholic (C...
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Kanellos, Nicolás, Felix M- Padilla, and Claudio Esteva Fabregat, eds. Handbook of Hispanic Cultures in the United States: Sociology. Houston: Arte Publico Press, 1994. Print.
The Hispanic community represents many nationalities and ethnicities, including Mexicans, Cubans, Puerto Ricans, 15 Central and South American countries, Spain, and the Dominican Republic (Cattan, 1993). Hispanic group are well known in the workforce, politics, education, social economic and religion. The Spanish culture influences a variety of areas such as music, food, language. Most languages are rooted in Latin. It is always good to learn about other cultures if we expect the same consideration when we visit other countries. Differences are what make life interesting. Majority of the United States is built on immigration, which has made this country the most diverse. And the Hispanic group contributes to that diversity.
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2. US Census Bureau. "Hispanic Population of the United States."Census Bureau Homepage. N.p., n.d. Web. 5 Feb. 2012.
"As Growth Stalls, Unauthorized Immigrant Population Becomes More Settled." Pew Research Centers Hispanic Trends Project RSS. N.p., n.d. Web. 05 Oct. 2014.
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 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.