...McDonald’s: Behind The Golden Arches “Since 1955, we’ve been proud to serve the world some of its favourite food. And along the way, we’ve managed not just to live history, but create it: from drive-thru restaurants to Chicken McNuggets to college credits from Hamburger U and much more. It’s been quite the journey, and we promise this is just the beginning-we’ve got our hearts set on making more history” (McDonald’s Corporation, 2011). Almost 60 years have passed since Raymond Kroc envisioned a nationwide fast food chain, which needless to say went on to revolutionise the American restaurant industry and become the world’s number #1 fast food restaurant. Today McDonald’s serves 52 million people a day from one of its 31,000 restaurants dotted around the world (Ritabrata Giiosii, R.G. 2009). The golden arches along with Ronald McDonald and the catch phrase “I’m lovin’ it” have assisted McDonald’s in becoming one of the most globally recognised brands, allowing them to become McDonald’s most valuable intangible assets, but how did they do it? Countless elements threaten McDonald’s reputation; health issues, legal and technological changes, social factors, environmentalists and obviously competitors especially those who offer similar services and products such as KFC. They too have become a national brand recognized all around the world however to understand how McDonalds have achieved such success we must first understand what they do differently and what objectives...
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...Comparative Study of McDonald's and Kentucky Fried Chicken (KFC) Development in China Wei Hu & Yuanyuan Xie Bachelor’s Thesis 28. 04. 2013 International Business Administration Bachelor’s degree (UAS) SAVONIA UNIVERSITY OF APPLIED SCIENCES THESIS Abstract Field of Study Social Sciences, Business and Administration Degree Programme Degree Programme in International Business Author(s) Wei Hu & Yuanyuan Xie Title of Thesis Comparative Study of McDonald's and Kentucky Fried Chicken (KFC) development in China Date 28.04.2013 Pages/Appendices 53+2 Supervisor(s) Jari Niemelä &Heikki Likitalo Client Organization/Partners McDonald's Corporation & Kentucky Fried Chicken Corporation Abstract McDonald's and KFC are two international fast food restaurants. They both expended their businesses in global scale. It is obvious that McDonald surpassed KFC in terms of sales and fame in international level. However, in China, KFC performs better than McDonald's. The aim of this study is to find out how these two companies developed differently in Chinese market. By making a comparative study of McDonald's and KFC, different operation and competitive strategy theory will be integrated with their development situation. Research is made based on strategy theory, Internet sources and interviews. The thesis is started with general information, Chinese fast food industrial situation introduction and thesis structure. After having introduced the two companies background, we illustrated strategy...
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...Comparative Study of McDonald's and Kentucky Fried Chicken (KFC) Development in China Wei Hu & Yuanyuan Xie Bachelor’s Thesis 28. 04. 2013 International Business Administration Bachelor’s degree (UAS) SAVONIA UNIVERSITY OF APPLIED SCIENCES THESIS Abstract Field of Study Social Sciences, Business and Administration Degree Programme Degree Programme in International Business Author(s) Wei Hu & Yuanyuan Xie Title of Thesis Comparative Study of McDonald's and Kentucky Fried Chicken (KFC) development in China Date 28.04.2013 Pages/Appendices 53+2 Supervisor(s) Jari Niemelä &Heikki Likitalo Client Organization/Partners McDonald's Corporation & Kentucky Fried Chicken Corporation Abstract McDonald's and KFC are two international fast food restaurants. They both expended their businesses in global scale. It is obvious that McDonald surpassed KFC in terms of sales and fame in international level. However, in China, KFC performs better than McDonald's. The aim of this study is to find out how these two companies developed differently in Chinese market. By making a comparative study of McDonald's and KFC, different operation and competitive strategy theory will be integrated with their development situation. Research is made based on strategy theory, Internet sources and interviews. The thesis is started with general information, Chinese fast food industrial situation introduction and thesis structure. After having introduced the two companies background, we illustrated strategy...
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...segmentation, targeting, positioning Step 3 – marketing mix Step 4 – implementation – go out there and sell your product no time to Step 5 – control Swot analysis An important part of the planning process is observing at the present position of the business and trying to choose how factors outside of the business might affect the business. Business do a SWOT examination as a way of determining which marketing strategy to use. The business does a review on the interior and exterior nature of the business looking at the current and upcoming condition. An audit is a review of all the business’ doings. Example of a business swot analysis KFC Strengths | Weakness | Second best world-wide brand in fast food Original 11 herbs and spices recipe Strong position in emerging china KFC is the market front-runner in the world amongst businesses featuring chicken as their primary produce offering. | Unreliable dealers Bad advertising Unhealthy food menu High worker income...
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...Executive Summary This assignment is about the ethical aspects of the two organizations chosen by me which are McDonald and KFC. I have done some research about the definition of business ethics, the history of these both organization, evaluate and analyst the ethical and unethical business practices of one company compared to the other company within the same industry and also applied 4 relevant ethical theories to these both organizations and also how they use it. Table of Contents Executive Summary 1 Definition of Business Ethics 3 1.0 Introduction 4 1.1 KFC’s History 4 1.2 McDonald’s History 5 2.0 Evaluation and Comparison of Business Practices in the Ethical Aspects between McDonalds and KFC 6 2.1 Prices 6 2.2 Food Packaging and Environmental Recycle 7 2.3 Public Relationship 8 2.4 Working Condition 9 3.0 Application of 4 Relevant Ethical Theories is Analysis which is: 10 3.1 Communitarianism 10 3.2 Justice 11 3.3 Ethics of Care 12 3.4 Rights Theory 13 Conclusion 14 List of Referencing 15 Bibliography 15 Definition of Business Ethics Business ethics is the applied ethics discipline that addresses the moral features of commercial activity. In practice, however, a dizzying array of projects is pursued under its rubric. Programs of legal compliance, empirical studies into the moral beliefs and attitudes of business people, a panoply of best-practices claims, arguments for mandatory worker...
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...McDonald case analysis History and growth of McDonald across Globe : McDonald Corporation is the world's leading food service retailer with more than 31,000 restaurants in 120 countries serving more than 50 million customers each day. Origin of this US based company can be traced back in 1940 as a barbecue restaurant operated by the Richard and Maurice McDonald . Ray Kroc another business man joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers . McDonald's first filed for a U.S. trademark on the name "McDonald's" on May 4, 1961, with the description "Drive-In Restaurant Services,". In the same year, on September 13, 1961, the company filed a logo trademark on an overlapping, double arched "M" symbol. McDonald serves some of the world famous favourite food like French fries ,Big Mac, hamburgers, soft drinks ,desserts, shake etc . Mc Donald focus on global expansion strategies .McDonald’s first opened stores outside the United States in 1967 in British Columbia and Puerto Rico . Currently it has made its presence in 120 countries . McDonald Business model is based on Franchises . Almost 85% of its restaurant is based on franchise model only 15% is owned by company. In India, McDonald's is a joint-venture company managed by two Indians. While Amit Jatia, M.D. Hardcastle Restaurants Pvt. Ltd. owns and spearheads McDonalds in west & south India, McDonald’s restaurants in North & East India are owned...
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...Marketing Research Assignment – Wendy´s Case Martin Meister – Boston University THE WENDY´S CASE A DEMOSTRATION HOW MARKETING RESEARCH AND ANALYSIS CAN HELP RESOLVING A MANAGEMENT DECISION PROBLEM Martin Meister – martinmeisterg@yahoo.com Boston University - MET AD 856 fall 2012 – Professor Vladimir Zlatev February 27, 2012 1 Marketing Research Assignment – Wendy´s Case Martin Meister – Boston University Table of Contents Introduction ...................................................................................................................................................... 3 1. - Problem Definition ....................................................................................................................................... 3 a. - Background to the problem...................................................................................................................... 3 b. - Statement to the problem........................................................................................................................ 4 2. - Approach to the Problem ............................................................................................................................. 5 3. - Research Design ........................................................................................................................................... 8 a. - Information needs ........................................................................................
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...completed efficiently and effectively. Managers, are those people who have the responsibility to ensure that the management of company is running smoothly and flawless. In an organization, there are different management actions that the company should be concerned. In the case study of McDonalds, our team has found out five significant management actions that have contributed to McDonalds’ success. There are strategic management, democratic leadership skills, human resources management, ethics management and 1.1 Strategic Management One of the management actions that have contributed to the success of McDonalds will be their strategic plan which called ‘plan to win’. The idea of this plan not only for them to be the biggest fast food restaurant chain but to be the best fast food restaurant chain. McDonald implement this plan by analyzing the 4 P’s which are product, price, promotion and place. Product is the features, quality and quantity of product or services offered by McDonalds to its customers, such as packaging, desirability, looks etc. According to A.Linbranza, McDonald’s first entered India in 1996 which doesn’t really fit their representative kind of market. To apply the mentioned strategy, McDonald’s adopted product localization and innovation skill, as they...
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...Strategy recommendation for how KFC should incorporate the reality of the Internet and social media into its business plan Yum! Brands is a global company that operates in 41 different countries and territories with approximately 41,000 restaurants. The company was formed in 1997 as a spin-off of PepsiCo and has become a leader in international retail development, opening an average of five restaurants per day outside the U.S. Yum! Currently owns 3 different concepts: KFC, Taco Bell and Pizza Hut. Colonel Harland Sanders is the founder of Kentucky Fried Chicken and is proven to be a great American success story. He began frying chicken in the early 1930’s at a travelers’ service station in Corbin, KY and after perfecting his 11 herbs and spices and frying technique that is still used today, the Colonel began franchising in 1955. 10 years later there were over 600 restaurants in the U.S. and Canada. The Benefits of using social media and the internet The benefits in using social media and the internet for any business is to increase exposure, gain traffic and connect with people. A business needs to create strategies that link the customer experience with the technologies and systems required to deliver the right content at the right time. (Hisaka, 2012, para. 1) KFC has to stay relevant to its customers and followers because it’s a brand that everyone knows and has been around since the 1950’s. Interacting with customers and asking for their opinion allows...
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...CONSUMER FOODSERVICE IN MALAYSIA Euromonitor International October 2012 CONSUMER FOODSERVICE IN MALAYSIA Passport I LIST OF CONTENTS AND TABLES Executive Summary ..................................................................................................................... 1 Malaysians Spend More on Foodservice .................................................................................. 1 Increases in Prices Hit Consumers ........................................................................................... 1 Multinational Brands Maintain the Top Positions, But Local Companies Progress Well ........... 1 Increasing Trend of Dining Out ................................................................................................. 1 Positive Outlook for Multinational and Local Foodservice Companies...................................... 2 Key Trends and Developments .................................................................................................... 2 Rising Prices Affect Consumer Confidence .............................................................................. 2 Government and Private Sector Inject Growth Into Foodservice .............................................. 3 Healthier Choices for Consumers in Restaurants ..................................................................... 5 Foodservice Companies Compete for Customers Through Online Coupon Giveaways........... 6 Tackling Halal Issues in 2011 ....................
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...International Marketing Management Using Business Format Franchising as a Market Entry Method McDonald’s Student Name: Nursulu Student ID: Lecturer: Dr. Lester Massingham/ Dr. Tom Abstract This report is based on the advantages and disadvantages of business format franchising and the fundamentals of market entry methods. Using McDonalds which happens to be one of the largest food service companies in the world, the author of this paper will look into the concepts of various market entry strategies in comparison to business format franchising. This report will also look into various elements that will essentially be needed to be addressed. It will critically discuss the various aspects involved in franchising as a market entry strategy and focus on how business format franchising can assessed as an expansion strategy in contrast to other modes of entry. Contents A Brief Journey into the History of McDonalds 3 1.0 An Introduction to Franchising (Facts about Franchising) 4 2.0 The Advantages and Disadvantages of Business Format Franchising 5 2.1 Marketing Franchises Vs Marketing Standalone Enterprises 7 2.2 Brand Image Transformation – Maintained Brand Equity of Franchises 8 2.2 Franchise Marketing Mix Vs Other Entry Modes 9 3.0 Market Entry Methods 10 3.1 Direct Export & Indirect Exportation 10 3.2 Licensing 11 3.3 Contracting 11 3.4 Manufacturing Abroad 11 3.5 Joint Venture 11 4.0 Conclusions & Recommendations 12 Bibliography 13 List of Figures ...
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...Introduction: This case study shows the challenge the one of American Multi-unit restaurant to Chinese market. China was a ripe for investment and it was very attractive for many of the U.S companies because Chinese annual growth in China was 14.5% for the past decade and the population was 1.4 billion people and in contrast, the economy in the U.S.A has been turned down and the market size have been downsizing. However there were a lot of difficulties in success and not all companies succeed in China. The I institutional voids and Chinese politics, culture, specific market needs make difficult for some companies to success in Chinese market. The new CEO, Mia Foster is now Levendary Café is now facing the struggle in management of the Vice President in China and the business strategy. Case Questions: Q1. What is a Multi-unit Restaurant (MuR) Business? How big is it? Is it a consolidated or fragmented industry? What are its economics (use the Porter’s Model to evaluate profitability in addition to the data given in the case)? Multi-Unit restaurant business is a geographically dispersed stores built from standard units which are aggregated into larger geographic groupings such as districts, regions, and divisions. Every tier has its own set of managers. Multi-Unit Restaurant concepts consist of the following 3 segments. I. Specialty Establishments mainly served snack and beverages under$5 such as Starbucks and Dunkin’ Donuts. II. Quick Service Restaurants, as it is called...
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...menu above the counter; they provide no wait staff; and customers typically pay before eating and choose and clear their own tables. These restaurants are also known as quick serve restaurants (QSRs). Main type of food sold at the restaurant, including burgers, sandwiches, snacks, Mexican food, and pizza. sales. The next four, Subway, Burger King, Starbucks, and Wendy’s, had $8 to $10 billion each in sales and 6% to 7% of the market. The three YUM! Brands restaurants in the top 20 (Taco Bell, Pizza Hut, and KFC) ranked sixth, seventh, and ninth individually. Together their sales totaled $16.7 billion, or 12% of the market, and placed YUM! Brands in second place behind McDonald’s. The restaurants in our analysis represent several different segments of the fast food market including burgers (McDonald’s, Burger King, Wendy’s, Sonic, and Dairy Queen), sandwiches (Subway), snacks (Starbucks and Dunkin’ Donuts), Mexican food (Taco Bell), pizza (Pizza Hut and Domino’s), and chicken (KFC).4 The number of U.S. locations of these twelve restaurants totaled almost 100,000 and ranged from approximately 3,500 Sonic restaurants to almost 24,000 Subway restaurants. These twelve restaurants comprised 41% of locations for the top 50 restaurants. Fast food segment Table 2 presents 2008 and 2009 sales data for the twenty largest fast food restaurants in the United States and highlights the twelve restaurants included in our full analysis. In addition to the ten restaurants with the highest sales in...
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...REPORT ON THE FINANCIAL EVALUATION: MCDONALD'S CORPORATION AND YUM! BRANDS REPORT ON THE FINANCIAL EVALUATION: McDONALD'S CORPORATION AND YUM! BRANDS TAMARA AYRAPETOVA The aim of this paper is to perform financial analysis by using financial ratios and to comment, evaluate, and understand the origins of the results by using the comparison of two companies chosen as a case study. The McDonald's Corporation is the largest fast food restaurant in the world. McDonald's Corporation statistics base it in over 119 countries and it serves more than 68 million customers daily. The company's revenues are coming not only from its primary products like hamburgers, cheeseburgers, etc., but also from rent, royalties, and fees paid by the franchisees. This report will look at the financial statements of the McDonald's Corporation over the past 3 years starting from 2010 through 2012. The author of the paper will apply financial ratios to analyze company's position and to identify patterns and trends. She will then compare the results of the analysis with one of the biggest competitors of McDonald's - Yum! Brands Inc. and the industrial averages. Yum! Brands Inc. is a US based corporation. It includes famous brands like KFC and Pizza Hut in their chain. Currently Yum! Brands are the largest competitors McDonald's has in the fast-food industry. To compare the two companies financial statements will be taken from Yahoo Finance (2013). Unauthenticated Download Date | 12/14/14 11:28 PM ...
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...Healthy Menus Mean Positive Financial Performance? A Case Study of Chipotle Mexican Grill An honors thesis presented to the Department of Accounting, University at Albany, State University of New York in partial fulfillment of the requirements for graduation from The Honors College. Cara N. Veneziano Research Advisor: Raymond K. Van Ness, Ph.D. May, 2013 Abstract The purpose of this study is to assess the consequences of offering healthy menus versus providing historically popular fast foods. Healthier foods are better for society and being able to understand how serving healthier menus will impact the financial performance of a company is crucial. I focus my attention on Chipotle Mexican Grill since it has been making a concerted effort to provide healthier foods. I have selected McDonald’s Corporation as a benchmark comparison. My specific investigative question is: Does a healthier menu translate into greater profits. My study begins with a comparison of Chipotle and McDonald’s meal options and ingredients in order to assess the overall health of their menus. This comparison revealed that Chipotle clearly had a healthier menu. Succeeding the menu comparisons, a financial analysis was performed on Chipotle and McDonald’s. The results of this study found that Chipotle, the healthier company, performed better in terms of Share Price, Stock Volatility, and Liquidity. The findings indicate that McDonald’s, the unhealthier firm, performed better in the areas...
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