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Task One
• Give a brief introduction of McDonalds - Not more than 5 lines.
o Globalization of McDonalds – Discuss in detail
• Give a brief introduction of Starbucks - Not more than 5 lines.
o Globalization of Starbucks – Discuss in detail
Task Two
Compare the globalization approaches of Starbucks & McDonalds The parameters to be used for this comparison are:
• Cultural Environment
• Economic Environment
• Political & Legal Environment
• Any other parameters
Task Three
Situational Analysis
McDonald's is planning to capitalize on the public's willingness to pay $4 for a cup of coffee by hiring baristas and dropping espresso machines in 14,000 of their fast-food outlets. Meanwhile, Starbucks, with business lagging, is fighting back with an "if you can't beat 'em, join 'em" strategy, by offering heated breakfast sandwiches and adding drive-thru windows to some of their locations.
These two chains as polar opposites — one designed as a sophisticated faux living room where customers could get a decent coffee drink and read their newspapers; the other, a riot of plastic-and-vinyl booths and bright fluorescent lighting where meals are counted in billions served. Is it really possible for these two worlds to collide?
Assume you are a business manager at either one brand (either McDonalds OR Starbucks). What would be your strategy towards this situation.
“Mention the brand that you are choosing for task three in the title of the task”
(I) Task One : Brief note on McDonalds
McDonalds is one of the world’s leading fast food franchisee. They mainly concentrate on burgers with occasional additions with to suit the host country. They have designed meals targeted at adults to toddlers so as to reach wider range of audien...
... middle of paper ...
...se the size of the cup could undergo minute alteration. Price is a major factor when the current inflation around the world is taking its toll hence discouraging a few prospective consumers.
Reference:
http://seekingalpha.com/article/59134-mcdonald-s-global-exposure-perfect-for-an-economic-slowdown
http://www.albawaba.com/en/countries/UAE/216875
http://blog.futurelab.net/2007/11/starbucks_vs_mcdonalds_coffee.html
Principles of Marketing by Philip Kotler, Gary Armstrong
mcdonaldsAbout%20McDonald's.mht!http://www.mcdonalds.com/corp/about.html
mcdonaldsFinal Paper- Globalization of McDonalds - SeniorSeminar.mht
University of Wales Net Library
http://pr.ducttapemarketing.com/2006/03/starbucks_vs_mc.html
http://www.time.com/time/business/article/0,8599,1702277,00.html
http://stockmarketbeat.com/blog1/2006/05/05/starbucks-and-mcdonalds/
• Considering the two forces of competition and predict what McDonald’s Corporation might do to improve its ability to address these forces in the near future.
How should McDonald’s respond when ads promoting healthy lifestyles featuring Ronald McDonald are equated with Joe Camel and cigarette ads? Should McDonald’s eliminate Ronald McDonald in its ads?
they use the weakness of the competitor company to for example, reliance on US market, reliance on beverage innovation, lover revenue and income per employee, lower returns on quality than peers and problems in some international operations. Starbucks now are working really well on their technology in order to succeed. They now have new thing in which you can order and pay to their customer is about meeting their needs of convenience and customization at any time. Over many competitors, Starbucks now represents the easiest and fastest technology application on the phones they can be received by their customers and store partners. According to starbucks.com, the mobile order and pay feature allows customer to choose the beverage and food items. Starbucks correlates the job order cost system, by customizing the beverages in its stores. The raw materials are coffee. The works in process is the part where the customer customizes their order. An example of this step is when a guest orders the “iced coffee with two pumps of caramel syrup with soy milk. The finished product is the completed drinks that the barista makes. The cost of goods sold is the sale of the drink to the customer. It is a customized drink so the customer is paying for the “cost assigned for each job or
The company started its activity in 1971 as small coffee shop located in Seattle specialized in selling whole arabica coffee beans. After being taken over by Howard Schultz in 1982, following a rapid and impressive growth, by mid 2002 the company was the dominant specialty-coffee brand in North America, running about 4,500 stores, 400 international stores and 930 licenses.
In order to understand McDonald's structure and culture and why they continue to be the world's largest restaurant chain we conducted a SWOT analysis that allowed us to consider every dimension involved in the business level and corporate level strategies.
McDonald's Corporation is the largest fast-food operator in the World and was originally formed in 1955 after Ray Kroc pitched the idea of opening up several restaurants based on the original owned by Dick and Mac McDonald. McDonald's went public in 1965 and introduced its flagship product, the Big Mac, in 1968. Today, McDonald's operates more than 30,000 restaurants in over 100 countries and have one of the world's most widely known brand names. McDonald's sales hit $57 billion company-wide and over $25 billion in the United States in 2006 (S&P).
Starbucks recognizes its employees for much of its success. This is due mostly to maintenance of a great and proven work environment for all employees. The company does not have a formal organizational chart; sot employees are permitted by management to make decisions without a management referral. Moreover, management trust and stands behind the decision of the employees and it is this that allows for employees to thinks for themselves as a part of the business, so as to make them feel as a true asset and not as just another employee.
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.
This strategic capitalises on weaknesses since will decrease the cost of coffee beans/beverages but also Starbucks operating cost which they regularly ship across the world to various stores. Starbucks can capitalise on this weakness to improve their brand options. It adds value in the inbound logistics activities, operations and procurements. Starbucks should consider this option since it will decrease their operating cost and therefore will reduce the prices on their menu. The attractiveness is the exact same as mentioned in option 1.
Overall, how satisfied are you , with [PRODUCT/SERVICE]? Please answer using the rating scale where (5) means "extremely satisfied" and (1) means "very unsatisfied."
In 2003, Starbucks was listed as one of the Fortune 500. Despite the ongoing recession, the company had managed a 31% increase in net revenues for the year. This was reasonable, considering they only spent about 1% of total sales on marketing. All of this, coupled with the fact that they were popular with customers and employees, was a sure recipe for success.
Preliminary Starbucks – one of the fastest growing companies in the US and in the world - has built its position on the market by connecting with its customers, and creating a “third place” beside home and work, where people can relax and enjoy themselves. It was the motto of Starbucks’ owner Howard Schultz and, mostly thanks to his philosophy, the company has become the biggest coffee drink retailer in the world. However, within the new customer satisfaction report, there are shown some concerns, that the company has lost the connection with customers and it must be taken some steps to help Starbucks to go back on the right path regarding customer satisfaction. I will briefly summarize and examine issues facing Starbucks. Starting from there, I will pick the most important issue and study it from different positions.
3. Create a separate department within the company to keep consistency among the many McDonald?s franchises. While this would be a great tool in the overall operation of the company, there are probably too many franchises to be able to carry it out in a cost effective manner.
The McDonald’s Corporation case study take a comprehensive look into the competitive market of the fast food industry. Particularly, McDonald’s and some of it greatest fast food competitors. In this analysis I will be revealing the marketing strategies of McDonald’s and other fast food companies. Identifying the trending tastes of consumers in this market, tactics used by McDonald’s competitors such as Wendy’s and Burger King to one up the marketing strategies of McDonald’s. I’ll also be assessing the strength, weaknesses, opportunities and threats of McDonald’s in this market segment. Evaluating the consumer purchase decision process and purchase type in the food industry. Lastly, I’ll explore which growth strategies I believe would make the
In terms of machinery or technological suppliers, suppliers to the restaurant industry enjoy moderate power, as suppliers are few. This applies to suppliers of coffee, latte and espresso machinery as well due to the small number of organizations servicing the industry. Due to their success in differentiating themselves as providers of premium coffee, Starbucks faces little bargaining power from their customers around the globe. However, a lesson from their entry into the Chinese market has been that an organization needs to clearly understand their target consumers and price their products accordingly to avoid demand challenges.