...The Changing of the Food Industry “In many respects, the fast food industry embodies the best and worst of American capitalism at the start of the twenty-first century – its constant stream of new products and innovations, its widening gulf between gulf between rich and poor” (Schlosser 6). In 2001 Eric Schlosser published “Fast Food Nation.” Eric Schlosser’s early 21st century muckraking text, “Fast Food Nation,” attempts to shed light on the consequences of the fast food industry on American society. The rise and growth of the fast food industry, like the meatpacking industry, illuminates the evolution of the American dream in post-World War II America. “Fast Food Nation” is a book about fast food, the values it embodies, and the world it has made. Fast food has proven to be a revolutionary force in American life; I am interested in it both as a commodity and as a metaphor. What people eat (or don’t eat) has always been determined by a complex interplay of social, economic, and technological forces (Schlosser 3). The fast food industry has been the largest industry to affect American society. It began as an industry with a few food stands here and there to an industry that has spread to every corner of America and wherever there are paying customers. The fast food industry has no limits. One can find fast food nearly anywhere nowadays in America. A person can find fast food at restaurants, zoos, stadiums, airports, malls, universities, trains, airplanes, Wal-Mart’s, gas...
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...the fast food industry is usually weak. Rather than growing potatoes, cows, coffee beans and etc. by themselves, most restaurants within the industry get their food from various farmers, butchers, packaging companies and partners. There are thousands of suppliers for restaurants to choose from and they can select their suppliers through the competitive bidding market. It will determine the cost of their products. Restaurants also tend to build long-term and trusty relationships with its suppliers, which makes bargaining power of suppliers weak to some extent. For example, McDonald’s has cooperated with some suppliers for more than 25 years. As a result, this force is typically weak in the fast food industry. Bargaining Power of Customers—low Although customer switching costs to regular restaurants are almost zero, the fast food industry in the U.S.A. does not worry too much about its customer volume, frequency and loyalty. First, the nature of the fast food industry attracts customers for its fast service, standardized taste and quality of food and low price. Second, the United States has the largest fast food industry in the world. Over 25 percent of Americans consume fast food every day. This volume of customers keeps customer bargaining power low. Threat of Substitutes—high Consumers are almost free to choose where to eat, so switching costs are nearly zero when they choose either to dine in some substitutes or even eat at home. In the quick service food industry, there...
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...Justification……………………………………..Page 4-5 Appendix…………………………………………………………………..Page 5 External Analysis of Industry Exhibit 1: Economic Characteristics & Driving Forces…………….Page 5 Exhibit 2: PESTEL Analysis……………………………………… .Page 7 Exhibit 3: Five Forces Analysis…………………………………….Page 8 Exhibit 4: Key Success Factors……………………………………..Page 9 Exhibit 5: Driving Forces…….……………………………………..Page 10 Internal Analysis of Yammer Exhibit 6: VRIN(E)……………………………………………… …Page 11 Exhibit 7: Weighted Competitive Strength Analysis.…. …………...Page 12 Exhibit 8: SWOT(TOWS)…………………………………………...Page 13 Exhibit 9: Strategic Group Map……………………………………..Page 14 Exhibit 10: Financial Analysis………………………………………Page 15 Executive Summary In 1981, Louis Kane and Ron Saich founded a bakery-café named Au Bon Pain that were opened up in airports, shopping centers, and malls throughout the east coast. Au Bon Pain found stiff competition from fast-food competitors, so they initiated a company overhaul and opened re-concepted restaurants which would soon become nation-wide. In August of 1998 they announced the sale of Au Bon Pain for $73 million in cash and the company changed its name to Panera Bread Company. Panera Bread Company was founded during a time of growth in the economy when customers were more willing to spend the few extra dollars for a higher quality meal. Panera offered unique baked goods such as bagels, pastries, and gourmet sandwiches for between $7-12$. The food industry has become a highly...
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...Analysing Mcdonalds (Fast Food Outlets) Using The Porters 5 Forces Model – Sometimes Called The Competitive Forces Model. Introduction McDonalds Corporation truly began in 1954 when Ray Kroc decided that he would turn the successful Californian store owned by the McDonald brothers into a chain. Today McDonalds is the world’s largest restaurant chain, worth over $70 billion (Yahoo7Finance 2008). McDonalds has grown via constant refinement of business practices and by knowing their customers needs. They have placed great importance on their long term relationships with suppliers and their aim is to ensure customers receive a consistent product quality. Analysis of McDonalds Corporation using the Porters 5 forces model to asses its competitive position in the fast food industry. As the name suggests the Porters 5 Forces model focuses on 5 key factors affecting the environment in which a business operates. They are 1) Competitive rivalry 2) Power of suppliers 3) Power of buyers 4) Threat of substitute 5) Threat on new market entrants Each of these five areas can be looked with relation to McDonalds and there position in the fast food industry. Competitive Rivalry If entry into a market is easy then rivalry is likely to be high. Generally rivalry will be high if, there is little differentiation between the product sold between customers, competitors are approximately the same size as each other, it is costly you leave the industry so they fight to stay...
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... Module : Strategic Management Coursework Title : Examining Strategic Management for Chicken Delight Ltd Date Of Submission: 23 April 2015 Lecturer: Mr. Narain Presented by: Ramdin Devesananda INTRODUCTION It is the beginning of a new era that the fast food industry has gradually breakthrough the Mauritius lifestyle. Due to the globalisation process, many fast food franchises are now available in Mauritius. Whether these fast foods have revolutionised Mauritius, today these products form part of our lifestyle and culture. People rely on their convenience to enhance their lives and productivity. But in the fast and increasing competitive business environment of today, the right marketing approach is necessary to compete with competitors. The ability to develop effective marketing strategy which enable the firm to become more responsive and adaptable to the market will perhaps more than ever before, differentiate the winners from the losers The rational of developing marketing strategies is to respond to the increasing high demand in fast food and to eventually increase the market share of chicken Delight Ltd. The answer lies in the fact that Chicken Delight Ltd franchise is in the fast food industry, selling fried chicken, chips and burgers, and its main and direct competitor is Kentucky Fried Chicken. Chicken Delight Ltd is relatively new on the Mauritian market and Kentucky Fried Chicken has already position itself in the mind of customers since it (KFC) was...
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...Michael Porter’s 5 market forces framework. McDonalds Corporation continually monitors its performance to make sure it is competitive and profitable while also being aware of its immediate community responsibilities. This can be achieved by using the Porters 5 Forces model so the company is able to determine where its business needs to change or improve in order to stay competitive in the fast food industry. Porters 5 Forces model focuses on 5 key factors affecting the environment in which a business operates. The threat of substitute products A substitute product is one that can be used as an alternative to a company’s own. It could be argued that the threat of substitute to McDonald’s comes from pizzas and other domestic kebab and fast food houses. However, most of the above do not have the same level of convenience that McDonald’s offers, in having a number of outlets in big cities and also through the use of multiple drive-through outlets. The threat of new competitors The easier it is for new companies to enter the industry, the more cutthroat competition there will be. Factors that can limit the threat of new entrants are: * How loyal are the end users in this industry? * How troublesome or hard is it for the end users to switch and use another product? * Does it require a large seed capital to enter this industry? * Do entries to this industry regulated by government? * How hard is it to gain access to the distribution...
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...Industry Rivalry The five forces that Michael Porter uses to evaluate an industry are industry rivalry, buyers, suppliers, threat of substitutes, and potential entrants. The first force, industry rivalry, is used to describe the overall conditions in an industry, including the number of competitors. For Subway, breaking through to the breakfast market will not be easy due to industry rivalry. However, Subway has done some research and has found that many fast food restaurants are lacking in the healthy food options in the morning. This has led them to create products that will target the customers that are looking for healthy morning meals. “Subway’s offer includes four Fresh Fit Egg White Muffin Melts, each with less than 180 calories, 4.5 grams of fat and 5 grams of fiber” (Francella). This is an example of a product that Subway has created to try and gain ground in the fast food breakfast industry, a $40.7 billion business in the United States. While Subway may be gaining ground with their healthier morning meals, they are still trailing to one of their biggest competitors, McDonalds. One of the biggest reasons why McDonalds has been able to dominate the industry is the use of their drive-through. “Subway doesn’t have drive-throughs, which has become a big part of America’s breakfast tradition” (Channick). A drive-through is convenient and offers expediency. In today’s society where American’s are labeled as lazy, having a drive through is a big help in boosting...
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...pre-prepared food items to be sold to the franchisees, thus assuring quality and consistency throughout the system. Additionally, they own Mr. Empanada Franchise Corp., which is responsible for selling, training and coordinating new and potential franchise locations.” The two industries that Mr. Empanada operates in are the fast casual industry and the franchise industry. “Fast casual restaurants feature limited service or self-service, average checks between $8 and $15, made-to-order food, and upscale décor.” A franchise happens when there is an agreement between the franchisor and the franchisee, which allows the franchisee to do certain activities. For instance the franchisee can sell/market the franchisor’s product. Legal/Political Environment There are many external factors that impacts a business. The one that I’m going to focus on is the legal/political environment. This comprises of laws, regulations, and policies that are put into place to control business activities. The legal/political (government/legal barriers) environment is one of the factors that helps determine the strength of one of Porter’s five forces, threats of new entrants, so it will be discussed below. Threats of New Entrants Porter’s five forces is basically a model that is used to help those responsible for governance determine a company’s corporate strategy. It helps them do this by identifying the industry’s structure and how the structure affects the company. One of the forces in this model...
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...Financial Management Report: McDonald’s Part 2: External Analysis Zaheer Mansuri Word Count: 3038 Tutor: Liz Warren 3|Page 0006529208 Contents PESTLE ..................................................................................................................................................................... 4 Political:............................................................................................................................................................... 4 Economic:............................................................................................................................................................ 5 Sociocultural: ...................................................................................................................................................... 5 Technological: ..................................................................................................................................................... 6 Legal:...
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...House of Kebab Contents 1 Introduction 2 1.1 Company Summary 2 1.2 Company Ownership 3 2 Five Forces Model and Analysis 4 2.1 Barriers To Entry 5 2.2 Supplier Power 8 2.3 Buyer Power 10 2.4 Threat of Substitutes 11 2.4.1 The Threat of Substitutes are High 11 2.5 Rivalry among Existing Firms 12 3 Conclusion 17 INTRODUCTION House of Kebab is a locally owned fast food outlet that will be positioned as an international franchise through our creative approach to the company's image and detail presentation. House of Kebab will provide a combination of excellent food at value pricing, with fun packaging and atmosphere. House of Kebab is the answer to an increasing demand for kebab and shawarma fast food. In today's highly competitive environment, it is becoming increasingly difficult to differentiate one fast food outlet from another. Our main priority is to establish one outlet in Kuala Lumpur, preferably in one of prominent housing estate. Later, our effort will be a further development of more retail outlets in the surrounding area. House of Kebab will entice youngsters to bring their friends and family with our innovative environment and our main focus will be serving high-quality food at a great value. COMPANY SUMMARY House of kebab sells specially made shawarma sandwich-like wrap usually composed of shaved lamb, goat, chicken, turkey, beef, or a mixture of meats and kebab which consist of thin slices cut from a cylindrical block of minced...
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...Report Macdonald’s 1.What are the chief economic and business characteristics of the fast-food industry? First, fast food restaurants represent one of the largest segments of the food industry. In 2003 sales for US consumer food-service market totaled approximately $408 billion. The sandwich sales represented $64 billion and the future growth in this segment was expected to be only around 2% annually. McDonalds and Burger King were the earliest and most aggressive hamburger chains to begin to expand around the world. Lasr few years , there was an explosive growth in foreign markets offset slowing growth in the United States and with the economic downturn, more people are cutting back on how much they spend when eating out, and therefore, are turning to fast food restaurants. 2.What does your 5-forces analysis of the fast-food industry tell you about the competition facing McDonald’s? With the Porter 5 forces model we identify that in general MacDonald and its competitors (Burger King, Wendy’s, Hardee’s, Jack in the Box, Sonic) are active in making fresh moves to improve their market standing and business performance by introducing innovation in their product and launching a lot of outlets. With those substitute products competitors need to compete on price and convenience Secondly, buyers are more focusing on value and healthy foods = it can force McDonald and its competitors to offer product innovation to attract buyers and match with buyers requirements...
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...EXECUTIVE SUMMARY Jollibee Foods Corporation (JFC) is the parent company of Jollibee, a fast-food restaurant chain based in the Philippines. Among JFC's popular brands are Jollibee, Chowking, Greenwich, Red Ribbon, Manong Pepe's and its recently acquired local fast-food Mang Inasal. Since its inception, Jollibee has become an increasingly profitable fast-food chain with 1,921 (Jollibee 702, Chowking 406, Greenwich 221, Red Ribbon 215, Delifrance 23, Mang Inasal, Manong Pepe 15) store branches in the Philippines and 395 in other countries employing 29,216 workers. Including all its brands, JFC has 1,804 stores worldwide and total sales of more than Php 52 billion as of December 2010. Despite owning 52% of the total local Quick Service Restaurants, the competition with its rival firms is still stiff. The source of rivalry stems from price wars and marketing innovations. The rivalry is also centered on the KSFs (Key Success Factors) of the industry, which are good food, good service and reasonable pricing. Rivals are somewhat equal in capabilities and opportunities, thus making the competition stiffer. Moreover, standardization of service contributes to the intensity of rivalry. INTRODUCTION Fast food, also known as Quick Service Restaurant (QSR) is the term given to food that can be prepared and served very quickly. While any meal with low preparation time can be considered to be fast food, typically the term refers to food sold in a restaurant or store with...
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...McDonald Dessert Industry Report McDonald’s Dessert INDEX Page Reference Part I. Introduction ITEM1 Analysis McDonald’s………………………………………………...01 ITEM2 Issues of McDonald’s…………………………………………….......02 ITEM3 Executive Summary of McDonald’s………………………………....05 Part II. Industry Analysis ITEM1 Definition of McDonald’s Desserts………………………………….06 ITEM2 Size & Trend Projection of McDonald’s Dessert…………………….07 ITEM3 Segments & Divisions of McDonald’s Dessert………………………10 ITEM4 Major Competitor with McDonald’s Dessert…………………………11 ITEM5 Definition of Analysis model to be untilized…………………………13 Part III. Conclusions and Recommendations ITEM1 Conclusions………………………………………………………......18 ITEM2 Recommendations……………………………………………………21 Part IV. Key Next Steps………………………………………………………......22 Part V. APPENDIX……………………………………………………..................23 Part I. ITEM 1. Introduction Analysis McDonald’s McDonald’s, the most famous restaurant in the world, ranked No. 6 and No. 186 for Forbes’s “Valuable Brands” and “Global 2000”. In 1940, McDonald brothers, Dick and Mac, began an undertaking in San Bernardino. They were famous for offering food quickly and drivethru window to their consumers, then Kroc bought the world rights in 1961, and there are more than 100 countries include the United States, Europe, and Asia-Pacific, Middle East and Africa, over 35,000 restaurants around the world, serving nearly 70 million people everyday. As McDonald’s proclaims, the “most successful food service organization...
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...could drive in the fast food restaurant. This was unique at that time, and this was the first time to drive in. McDonalds was successful. McDonalds was said to be the first of their kind in the fast food industry which gave a great opportunity to entering the market and shortly after that dominating it for years, and according to the 5 forces of porter they almost had no barriers for entry and they were also able to crush the rivalry "old classical eat-in- restaurants" with their unique idea of foods that were of a good quality, quickly assembled and served, and at the same time affordable to customers. Even though McDonalds is often the aim that gets the criticism in fast food industry, but also they made lots glories, such as in the year 2011, they got the most innovative food company and the 11th most admired company in the world, and in the year 2012, they got 4th most valuable global brand. When McDonalds faces problems, they respond very strongly and quickly. They try to do more than their competitors. The skinner’s plan was really helpful to improve the McDonalds image. They focused on the stores which they had rather than thinking about to build more stores. The trend of McDonalds is to be the biggest fast food brand in the world. Also it will be the most recognizable brands. As we know about McDonalds, and the background as I said above, let use the SWOT analysis method to analyze McDonalds. Strengths As we know, McDonalds is a strong brand of fast food restaurant in...
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...Introduction Before introducing the history, mission, and vision, I am enterprising a fast food company, Subway® restaurants in Malaysia. Subway® restaurants are the world's biggest submarine sandwich chain working more units in the US, Canada and Australia than McDonald's does (Dec 16, 2009). Today, there are more Subway restaurants in the world than other restaurant chain, 42996 restaurants in 108 countries, and there are 177 restaurants in Malaysia. “Subway, eat fresh”. (Nov27, 2013) History The founder of Subway, Fred Deluca. In 1965, he had just graduated from high school in Bridgeport, Connecticut, USA. He had dreams of attending college and he was a hard-working, competent and dependable young man, however, the $1.25-per-hour he earned working at the local hardware store would not be enough to finance his education. Discouraged, he decided ask an old friend, Dr. Peter Buck for advice and he gave Fred an idea to open a submarine sandwich shop that he would change his life and lives of people around the world. Dr. Buck explained how the shop could finance his future education. After that, they formed a partnership that would lead to the first SUBWAY® restaurant. The company continued to grow from first day. From that day, they had a goal of opening 32 submarine sandwich shops within 10 years. As Fred and Dr. Buck searched for approaches to develop the business, they settled on a choice that franchising was the way to obtain their objective. So Fred met with his...
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