...insecure in their job and negotiate more about financial matters (Shama, 1978). Despite many companies cutting theirs operational costs or reducing employees, McDonald’s in India planned to increase its headcount and strategically do not cut its cost. Taking advantage from the reducing prices of real estates, McDonalds start to gain more market share. McDonald’s management team believed that the economic crisis gives more opportunities to conduct business aggressively. Exploring the case study for McDonalds – Business Strategy in India, a study approach is to explore the whole picture of a successful this fast good chain’s action and strategy to cope with down turn economy. In other words, this case was about to discusses how McDonald’s managed to buck the trend, its early years and business strategy to get more out of its stores in India. On the same time, how McDonald’s can maintain and improve their performance by adjusting their competitive strategy properly. 2. Introduction McDonald's is the leading global foodservice retailer with more than 32,000 local restaurants serving more than 58 million people in around 130 countries each day. 70 percent of our restaurants worldwide are owned and operated by independent, local businessmen and businesswoman. In 1996, McDonald's opened in India for the first time, a country...
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...Executive Summary This documentation is mainly about the business operation of McDonald’s in India & how it applies their operation to interact with external environment. This discussed about the Porter’s five forces of models to imply the company’s strategies in details that helps to access the competitive environment in India. PESTLE analysis will give also the details about Political, Economic, Sociocultural and Technological, Environmental and Legal analysis and effects of this analysis on McDonald’s. Dunning eclectic framework provides to complete country’s advantages that helps the McDonalds to analysis India on the basis of how attractive India is in terms of market potential and investment risk.The study conducts a comprehensive study on the MacDonald which is one of the major players in the food services industry in India. The research tries to develop a case study which studies McDonalds and its business process very closely with a greater emphasis on major activities which it carries out in India. We have also discussed about market entry strategy of MacDonald in India. Usually McDonald’s follow franchising of entry mode but in India they followed the joint ventures of entry mode. They choose a busy residential area VasantVihar. Internationalization theory is also provide a prominent theory in international business regarding how firms expand overseas & it suggests that firms minimize the uncertainty associated with going abroad by adopting some kinds of internationalization...
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...McDonald’s operations in India Introduction The central purpose of the study is to determine the best international marketing strategy for McDonalds in India and shedding light on these strategies- Standardisation or Adaptation. Background McDonald's™ is a pioneer in the foodservice industry with over 32,000 restaurants in about 130 countries. The brand is handled and overseen by two following business organisations in India: * Connaught Plaza Restaurants Private Limited, headed by Mr. Vikram Bakshi, JV Partner and Managing Director, East and North India * Hardcastle Restaurants Private Limited, headed by Ms. Smita Jatia, Managing Director (MD), West and South India McDonalds believes in Q-Quality, S-Service, C-Cleanliness and V-Value. This motto is their driving force in the Indian marketplace. For McDonalds, India was the first country wherein no-beef or pork products were served. McDonalds in India catered to wants and needs of the people, with different menus as well as food processing plants for vegetarian and non-vegetarian customers. Currently, in India there are 300 McDonalds. Discussion Standardisation approach is quite different from the adaptation international marketing approach. When the needs and wants of the target market are same, standardization strategy comes into the picture. On the other hand, if the wants and needs of the target audience are different, and also the socio-economic conditions of the target market differ, in that case, adaptation strategy...
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...Wrexham, UK 15th November, 2012 To, The Marketing Director Nike, UK Subject: A study of changes in the Sportswear market in India in the past decade with focus on footwear sector. Analysis and suggestion about the marketing techniques that need to be implemented for the launch of a new product. The study also includes formulating a Pricing strategy and various promotional measures to be opted by Nike. In today's competitive market, companies always try to introduce different types of products and creative marketing approaches so as to showcase the uniqueness in their products and to survive in the dynamic marketing environments. Nike, the American multinational company is a leading manufacturer and supplier of sportswear, apparel, accessories and services and holds the top spot in supplying athletic shoes and apparel throughout the world. The company, today is among the most valued brands. (Skoloda, 2010) The product is due to be launched in India, which holds the top spot in terms of being among the fastest growing economies in Asia and is the most preferred markets for multinational companies. Indian economy is growing at 8.8%, which is among the best in Asia. (Nobrega & Sinha, 2008) Changes in the Sportswear market over the last decade: As Isaac Asimov once said “The only constant is Change” so is it. The current markets are ever changing. Philip Kotler & John Caslione (2009) state that “Turbulence is the new normal”. Companies...
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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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...A Study of Production and Operation Management Of McDonald's Submitted to: Prof. Vivek Raina Submitted by: Mahesh Kumar Meena (M00220) Ajay Patel (M00226) McDonald's Himalaya Mall Location Gurukul › Ground Floor, Himalaya Mall, Gurukul, Ahmedabad Cuisines Fast Food Opening hours 10 AM to 12 Midnight World's largest chain of fast food restaurants. The Golden Arches—the corporate emblem, symbolized pleasant, fast service and tasty, inexpensive food. Serve around 68 million customers daily in 119 countries. Operates over 34,000 restaurants worldwide, employing more than 1.7 million people. Between 1990 and 1991, sales per unit had slowed down. Reasons: Consumers were changing management to wonder whether the company’s operating system, suited to the new circumstances the company faced McDonald’s was gathering flak from environmentalists who decried all the litter and solid waste its restaurants generated each day to counter some of the criticism, McDonald’s partnered with the Environmental defense fund to explore new ways to make its operations more friendly to the environment. INTRODUCTION McDonald’s is a limited menu restaurant is characterized by speed of operations. McDonald’s is the world leading retailer with more than 33,000 restaurants in 118 countries serving more than 67 million customers each day. In India, the first outlets of the chain threw open their doors to the public in Delhi and Mumbai in 1996 within one month of each other. McDonald’s...
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...Question 1 (a) i. Motorola Company ‘To be the leading product provider of innovative products that meets the expanding needs of customers around the world’ There are a lot of customers around the world, thus there’ll have different needs and wants demand by customers. Motorola would like to be the leading product provider. So, it has to be a product provider that can provide innovative products for all the customers in orders to fulfill what have been demand by the them. It can complete its tasks through the providing portfolio of technologies, solving method and services. ii. Honda Company "Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at a reasonable price for worldwide customer satisfaction." Its mission statement is also known as their company principle. Honda company is trying to offer products at sensible price for customers in orders to fulfill customers’ contentment. It will offer the highest quality product in sequence to maintaining the global viewpoint. If the Honda management team works accordingly to the Management Policies it will definitely lead the company to achieve their mission in future. So, we now can see that Honda Company has a lot of brunches at all around the world in order to expand their business. iii. AirAsia “Create a globally recognized ASEAN brand” AirAsia provide the cheapest ticket that can let traveler travel to any Asian destination compare to other air line company. It is...
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...& Kotler, 2015). For this paper, I have selected McDonalds for discussion. As a company McDonalds has a great reputation as Pfeffer (2006) suggested, “even if the world ends, McDonald’s would still be open”. This paper provides an adequate discussion regarding the market segmentation and positioning strategy followed by McDonalds. McDonalds has segmented its market according to demographic, psychographic, geographic, and behavioral characteristics. They also have segmentation among students, kids, and family. Their positioning strategy has given them an extra edge to become one of the largest chains around the world. Company Overview McDonald's Corporation has been the world's largest chain of hamburger fast food restaurants. It serves approximately 68 million customers in 119 countries in 35,000 outlets around the world. Richard and Maurice McDonald founded McDonald’s in 1940. In 1960, the advertising campaign named "Look for the Golden Arches" gave the company a great sales boost. In 1954, Ray Kroc joined and suggested to franchise the restaurants throughout the countries. McDonalds used its corporate logo from November 18, 1968 to 2006. McDonalds has a predominant market for selling hamburgers, variety of chicken sandwiches, French fries, breakfast items, soft drinks, and desserts. It also sells vegetarian items, wraps, salads and some localized items according to demand and locations. An appealing item from McDonalds is the McRib,...
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...McDonald's had made a publicizing battle of the same name, which recommended the Top Tips (and afterward the option spare cash by going to McDonald's). A percentage of the likenesses were practically word-for-word: Spare a fortune on clothing bills. Give your messy shirts to Oxfam. They will wash and iron them, and after that you can purchase them back for 50p. Viz Top Tip, distributed May 1989. Spare a fortune on clothing bills. Give your filthy shirts to a second-hand shop. They will wash and iron them, and after that you can purchase them back for 50p. McDonald's advert, 1996. The case was settled out of court for an undisclosed whole, which was given to the philanthropy Entertainment. Notwithstanding, numerous Viz perusers accepted that the comic had given authorization for their utilization, prompting Top Tips entries, for example, "Geordie magazine editors. Keep paying your home loan and purchasing costly prepare sets... by just permitting the Top Tips idea to a multinational burger enterprise." In 2003, a decision by the UK Publicizing Models Power established that the company had acted in rupture of the codes of practice in depicting how its French fries were arranged. A McDonald's print promotion expressed that "subsequent to selecting certain potatoes" "we peel them, cut them, broil them...
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...The Global Success of McDonald's MBA/521 Jan-7th-2012 Abstract When people think about the franchising concept, McDonald's usually comes up first as a prime example. Although McDonald's was not the first franchise business Isaac Singer, the inventor of the sewing machine gets credit for originating the franchise idea-the hamburger chain certainly exemplifies franchising success. The first McDonald's restaurant was opened by brothers Dick and Mac McDonald in 1940 on Route 66 in San Bernadino, California. The menu had about 25 offerings, and carhops brought the food out to patrons waiting in their cars. Today, McDonald's franchise network is the world’s leading food service retailer with more than 30,000 franchise restaurants serving 52 million people in more than 100 countries. Of those stores, more than 70% are owned by independent operator franchisees (Franchise Direct, n.d). In the following pages a brief summary of how McDonald's has been able to successfully establish itself at National and International Level is presented. McDonald's Success Story McDonald's has over the years continued to stay on the growth curve by recursively innovating and adopting though they have had some setbacks along the way for example about eight yrs ago they reported their 1st loss in a quarter in the history of the company, though many saw this as the beginning of the end of the company, McDonald's looked...
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...MC DONALDS CASE STUDY ANALYSIS OF THE COMPANY McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. McDonald's operates over 34,000 restaurants worldwide, employing more than 1.7 million people. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth. McDonald's predominantly sells hamburgers, various types of chicken sandwiches and products, French fries, soft drinks, breakfast items, and desserts. In most markets, McDonald's offers salads and vegetarian items, wraps and other localized fare. McDonald's operates over 34,000 restaurants worldwide, employing more than 1.7 million people. In 2006, McDonald's introduced its "Forever Young" brand by redesigning all of its restaurants, the first major redesign since the 1970s.McDonald's has invested $1 billion to redesign nearly all of the 14,000 restaurants by 2015. SWOT analysis of McDonald's Strengths 1. Largest fast food market share in the world. McDonald’s is the largest fast food restaurant chain in terms of total world sales (8%). It is the second largest outlet operator with more than 34...
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...India Introduction Fast Food Industry Overview India is blessed with one of the fastest growing fast food market of the world. It is estimated to be nearly worth of 41.3 billion USD and it is a healthy growing industry at a compound annual growth rate (CAGR) of 11%. The Organized Food Service Industry is worth $13.79 bn (approx. 33% of total Indian Food Service Industry), which is growing towards at 17%. (Industry report 2014) By year 2017 this bench marks will reach by other category, like as follows: (Ref) Category | Current Market Share | Compound Annual Growth Rate (CAGR) | Expected Market Share by 2017 | Organized | 30% | 12-14% | 45% | Unorganized | 70% | 8-10% | 55% | In present situation Indian GDP is around 6 % for last couple of years. As a result there is a significant numbers of monthly disposable Income are growing gradually. Now a day people of India spend on eating outside almost Rs.33, 000 Crore according to the size of the market. Some recent research study is expected this growth will reach US$68 billion by 2018. (Ref) On the other side delivery segment is an integral part of the Indian Food Service segment. The size of Organized Indian QSR delivery market is US$0.62 billion, growing at a healthy CAGR of 20% and is expected to reach US$1.1 billion by 2017-18. (Ref) In major cities comprise of large workplace clusters and high density residential areas people and young Indian consumers are highly price sensitive, through online they compare the...
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...coming from outside of its home country. (Duesterberg, 2007, pg 13).There are over 40,000 multinational corporations currently operating in the global economy, in addition to approximately 250,000 overseas affiliates running cross-continental businesses. (Eldridge, 1999, pg 1). A multinational organisation will allow for greater economies of scale, lower labour costs, reduced manufacturing and distribution costs and access to new technologies and methods. However with multinational corporations operating a largely as they are it is important to ensure that the management of such organisations is correct. Should this management be rigid and controlled in the way of UPS where each employee is given a set of rules, or more relaxed as in the case of SOL where each employee decides their own rules? Does being a multinational organisation make a difference to this decision? One thing that is for sure if that the management has to be strong whether it be strong and uniform across all countries, or whether it is strong and very different across all countries. This essay will analyse whether all parts of a business should operate in an integrated fashion or whether it is more successful to allow individuality amongst the subsidiaries. It will look at and compare the operations of existing companies and make a decision about the best practise. Organizations are always pulled by the two forces of uniformity and diversity. By nature they would prefer uniformity. That way lies predictability...
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...hitch to productivity, economic growth and poverty reduction. We again end up asking the unchanged question, who is responsible? Definition UNICEFii defines malnutrition as a broad term commonly used as an alternative to undernutrition but technically it also refers to overnutrition. People are malnourished if their diet does not provide adequate calories and protein for growth and maintenance or they are unable to fully utilize the food they eat due to illness (undernutrition). They are also malnourished if they consume too many calories (overnutrition). Words like GDP and GNP which was covered in the class, provided me with a different perspective to the situation. I took time to review the effect of malnutrition in my country, India. I found that malnutrition was causing a loss as high as 3 to 4% to my country’s growing GDPiii. Even though the overall GDP of the country has been rising, the amount of loss caused by malnutrition is also increasing. Effect of Malnutrition on Economy Malnutrition indicates poor economic policies of the country, deprived agricultural conditions and also...
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