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How the processes of “McDonaldization” shape socio-cultural and economic conditions of today’s world
McDonald's business strategy analysis
How the processes of “McDonaldization” shape socio-cultural and economic conditions of today’s world
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When society thinks about the local McDonald’s, they probably do not think “innovation’. That is because everyone has become accustomed to the many novelties that McDonald’s has introduced over the years. Some people do not even know that McDonalds was the leader in innovation being the first major international fast food restaurant, with the first drive-through window. What many people do not realize is that McDonald’s continues to drive innovation in fast food. Some times the innovation is well advertised, but other times they are designed so that customers will never even notice (Ritzer, 2004).
This paper examines the effects that optimal product positioning strategies have on innovation and creativity for retail outlet locations in the fast food industry. The global fast food powerhouse McDonalds has been the biggest marketer of fast food since 2004, with over 31,000 restaurants in 120 countries, brining in 47 million customers per day (Ritzer, 2004). The relationship between profits and product differentiation reveals that McDonalds is better than most fast food chains at competing locally and globally in large market areas. Ritzer defined this as McDonaldization which is a process by which the principles of fast food restaurants is to dominate more and more sectors of American society as well as the rest of the world (Ritzer, 2004).
In large markets such as India with limited competition, McDonalds had the challenge of addressing flavor immigration through global cuisine. For McDonalds converting was going to involve various forms of selection and different taste buds, delivery as well as compatibility. A fast food chain such as McDonalds may market a general menu but in countries like India this chain still needed to...
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Food Industry. Marketing Science. 26(6), 792-804.
In the book Fast Food Nation: The Darks Side of the All-American Meal, Eric Schlosser claims that fast food impacts more than our eating habits, it impacts “…our economy, our culture, and our values”(3) . At the heart of Schlosser’s argument is that the entrepreneurial spirit —defined by hard work, innovation, and taking extraordinary risks— has nothing to do with the rise of the fast food empire and all its subsidiaries. In reality, the success of a fast food restaurant is contingent upon obtaining taxpayer money, avoiding government restraints, and indoctrinating its target audience from as young as possible. The resulting affordable, good-tasting, nostalgic, and addictive foods make it difficult to be reasonable about food choices, specifically in a fast food industry chiefly built by greedy executives.
The American life has been transformed by the fast food industry not just changing the American diet but also the culture, workplace, economy, and the landscape. “Today about half of the money used to buy food is spent at restaurants-mainly fast food restaurants.” (Schlosser) This could be due to the fact that about two-thirds of working women are mothers. The impact of fast food on the American culture is transparent when just looking at McDonald’s. McDonald’s has become the world’s most famous brand; the golden arches are more known than the Christian cross. “A survey of American schoolchildren found that 96 percent could identify Ronald McDonald.” (Schlosser) McDonald’s is responsible for 90 percent of new jobs in The United States. The landscape has changed due to the fast food ...
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
The purpose of this research is to provide a substantial assessment/explanation/analysis of the degree to which the McDonald’s operates based on a universal cultural or whether it is most strongly influenced by the national culture of that country. The researcher will explain how McDonald’s uses diversity and organizational initiatives to contribute to the corporate bottom line. Finally, the researcher will evaluate the company’s bottom-line rationale for diversity initiatives.
McDonalds traditional competitors include many of the other fast food outlets across the country, i.e. Burger King, Taco Bell, KFC, Wendy’s. It has been shown by Professor Michael Waterson (2004) that the presence of a Burger King, for example, will increase the likelihood that McDonalds will open near by. Thus it can be seen that the threat of competition from traditi...
Vignali, C. (2001). McDonald’s: “think global, act local”--the marketing mix. British Food Journal, 103(2), pp.97--111.
"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.
KFC is one of the most popular fast-food restaurant chains by the Yum! Brands and fried chicken is what the company specializes. KFC was founded by Harland Sanders, which was later known as Colonel Sanders. Moreover, KFC was one of the first fast-food restaurant chains to expand internationally, including the opening outlets in Beijing, China, in November 1987 (KFC Website, 2013). The fact that KFC was the first Western fast food company in China makes it very challenging to satisfy the Chinese market. Trying to sell the same products or services is a typical approach to most foreign expansion for franchise businesses (Bell, 2011). However, one-size fits all approach is not what KFC chooses to apply for their company. According to Shelman, the writer of the case study regarding KFC’s Explosive Growth in China, key success for KFC China is to change the menu to suit Chinese tastes and style of eating (Starvish, 2011). “One of the lessons I take away from this case is that to ...
This particular case is about the implementation of the popular fast-food chain, Burger King, into the Japanese market. Despite its’ strong market position in other countries, Burger King has some difficulties to face within the Japanese market. In this report, my team and I will analyze Burger King’s current situation and problems and suggest alternatives.
Innovation is an important aspect of business today. It is important for companies to be innovative in order to stay competitive with their competitors. Innovation can come in different forms depends on the company’s objective. KFC, one of the most popular fast-food restaurants by the Yum! Brands, chooses to be innovative for their business model. Although, there is a huge amount of fast food chain available in the global market, KFC found the key to stand out from the intense competitive environment. By expanding the business to China, KFC learned unprecedented success by being different, not by being the same. The company’s business model is all about adapting to the local culture and understanding the needs of the Chinese market. Three main innovative strategies of KFC in China are localizing the menu, understanding the Chinese culture, and hiring local management.
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.
By choosing to expand into markets later than other fast food restaurants Burger King hopes to avoid the problems of developing infrastructure and establishing a market base. For instance, by following McDonalds into Brazil, Burger King avoided the need to develop the infrastructure and mark...
CHANGING PREFRECE depended vastly on the fast food manus. For example we can mention about SALAD. Now salad was never considered as a part of fast food menu. But with the change of taste and preference, fast food chains like Windy, Taco Bell, and McDonald have introduced SALAD into their menus. This preference is not stopping only with salads. In 2002, McDonald’s introduced great tasting new products including premium salads, n salads plus menu; Chicken McNuggets made with white meat; Fish McDippers; Chicken Selects; and new breakfast offerings like the McGriddle sandwiches. Here as a fast food chain, McDonald did not have to introduce new dishes in their menus but with the impression and image in the market analysis, of increasing demand and chan...
In modern society technology has made an advancement in history and has helped launched a new advancement for society. It is a great source that helps get job done and has made work a lot faster and more efficient. However, some might consider these advancements to be a little too overwhelming. In society today, people are always on the go so they often look for ways that are fast and efficient. For example, now and days we often see many fast food restaraunts all over the place, just waiting for the average busy consumer to stop by maybe on their way to work or something to grab a bite to eat. These fast food restaurants are often easy to spot and become so familiar to most people that going there can be part of the everyday routine. According to the following sources online there is a theory called “McDoanldization”, that is used to describe the spread of the fast food chain industry, and how it has influenced the society’s social structure and even how people behave and act. McDonaldization is a theory created by George Ritzer, who has come up with a theory to explain how a society is becoming “rationalized.” This relates to how corporations have taken control of how the government runs society. According to the sources online, Corporations of Fast Food Industries have taken over and created a process that helps eliminate aspects of individuality in society. It has become a fast growing trend and takes conformity to a whole new level. According to the theory McDonaldization is based on four central principles: predictability which is the ability to recognize and familiarize yourself with that place based on what you expect from it. For example when people go to a fast food joint they expect to see the standard c...