...is thriving due to a large number of working families, we live in American, which has the largest fast food industry in the world. McDonald’s is one of the largest fast food restaurants in the fast food industry serving around 68 million people daily, in over 118 countries. McDonald’s has a loyal based of customers who have been patronizing the establishment for many years, operated by a franchise agent, an affiliate or the corporation. McDonald’s business strategies has been said to be the best in the fast food industry, maintaining cost leadership while producing dependable food with great service. Today we see McDonald’s in a mature industry that uses product proliferation to meet many needs in the fast food industry while deterring new entrants (Hill and Jones, 205). McDonald’s prides their strategy by setting the standards with their products and within the industry as well. I feel that the strategy McDonald’s incorporates within the company is the best for them, setting the standard to be the best in the industry promotes the necessary competitive edge needed to ensure the company continues to delivery its winning edge products that keeps customers loyal to the name. McDonald’s is also known for their child meal concepts selling hamburgers French fries soft drinks breakfast items chicken sandwiches and deserts. McDonald’s business level strategy also responds to the competitive dynamics of the industry by innovating new products, such as the Snack Wrap, market...
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...McDonald’s India Behind the golden arches – Building a robust supply chain Some facts about who we are… • International – First restaurant opened in 1955 in Des Plaines, Illinois USA – Single largest Food Service Retailer in the world – Serves around 50 million customers every day – Around than 30,000 Restaurants worldwide across 120+ countries • India – Started in 1996 – Currently present in around 40 cities with around 180 restaurants – Serves around 500,000 customers daily – Unique menu with Vegetarian products and Nonvegetarian products (Fish, Chicken) …World’s largest democracy … 2nd largest population in the world …fastest growing middle class consumers Incredible India A land of huge opportunities • At 175 million tonnes per annum, India is the second largest producer of fruits and vegetables ……but more than 15 billion US$ worth fruits and vegetables wasted every year post harvest …. only 2.2% of the produce is processed 3rd largest producer of potatoes …..but less than 5% of potatoes grown are process grade • • World’s largest producer of milk …however yield per lactation cycle of a buffalo is 1/10th of US Supply Chain Challenges Agriculture •Outdated farming and irrigation practices Logistics & Distribution •Poor road and other infrastructure conditions •Cold chain – virtually non-existent •Huge wastage of natural resources (water, electricity etc.) •Lack of proper storage facility at farm level for storing post harvest produce •Crops like iceberg lettuce...
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...INTRODUCTION The reason how McDonalds Restaurant became a well-established brand around the world began with the series of strategies they used throughout the years in building its success. From the beginning there was only a local food stand more like the food trucks on the streets now to becoming the multi-billion corporation with over a billion employees. The way McDonalds is able to penetrate through different markets around the world is very amazing because they may be the only fast food brand that could be found around the world with the possibility of finding one just at a corner near you. The brand is well known around the world yet they may only know the name and that it is a fast food restaurant. Yet different countries or cities may have discrepancies in menu engineering where the company accommodates to the food preferences of the people or the culture of the regions. As many may know, operating a hospitality establishment requires much effort to maintain and operate while the failure rate of restaurants are statistically calculated to be quite high. As discussed by the “RestaurantOwners” website, “Within a 90 percent confidence interval, CRG found that the first year failure rate for startups averaged 23 percent over four years in that market. Based on the study, you could say that there is a one in four chance a new startup will fail.” Nonetheless all company may have there ups and downs while the McDonalds Restaurants brand reign in the fast food market for...
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...Case Study 1 - Documentary Credit M/S Auto India Introduction M/S Auto India is a public limited company; they manufacture SUVs (sports utility Vehicle), in technical collaboration with General Motors of USA. The company has established their manufacturing base at Ranjangaon in Pune. They have acquired an area of 250 acres and the total project cost is estimated at Rs 1500 crores. As per the projections, the company is slated to achieve a 25% market share in the Indian market, within a period of two years. Out of the total project cost, 49% is brought in by General Motors and the rest is tied up with financial institutions, international banks and Indian banks. The working capital is financed by a consortium of banks in which Global bank, Pune branch, is the leader. The company imports many parts of the car engine in a CKD (completely knocked down) condition from General Motors, Detroit, after establishing import letters of credit through its main bankers, Global Bank, Pune Branch. M/S Auto India approached Global Bank, Pune for opening of import letter of credit as per UCP ICC 600 for USD 100,000, on sight basis, in favour of General Motors, Detroit. Type of credit - Irrevocable negotiable Application - UCP ICC 600 Applicant - M/S Auto India, Pune, India Beneficiary - M/S General Motors, Detroit, USA. Issuing Bank - Global Bank, Pune, India Advising Bank - The American Bank, New York Negotiating Bank - The American Bank, New York Reimbursing Bank - International Bank, New York...
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...THE GOLDEN ARCHES IN INDIA Introduction: The Golden Arches are the symbol of McDonald's, the global fast-food restaurant chain. Originally, real arches were part of the restaurant design. They were incorporated into the chain's logo in 1962, which resembled a stylized restaurant, and in the current Golden Arches logo, introduced 1968, resembling an "M" for "McDonald's. McDonald's overall business: Internationally, McDonald's is the largest chain of fast food restaurants, operating over 31,000 restaurants serving 46 million people in more than 118 countries (But now it is 33,000 restaurants and served on 68 million customers each day in 119 countries). In 1954, a man named Ray Kroc discovered a small burger restaurant in California, and wrote the first page of McDonald’s history. Each McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself. The corporations' revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. This can only be attributed to the fact that McDonald's management style and strategies are extremely effective when faced with the vast amount of issues it has in its sixty plus years of history. McDonald's business in India: McDonald’s success in global growth is exemplified in its achievement in infiltrating the Indian food market. This infiltration has been made famous due to management and strategic issues encountered by McDonald's from the macroeconomic...
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...Johanna Christine Swierzy – Student ID 504072 CASE 1-2: McDonald’s Expands Globally While Adjusting Its Local Recipe Overview. Today, McDonald’s golden arches are one of the most recognized symbols in the world, just behind the Olympic rings. While growth within the U.S. has slowed, the picture outside the U.S. has appeared brighter, until recently. However, globally, taste profiles and consumer desires are changing. McDonald’s has responded to these changes by altering their basic products (when necessary) to fit the requirements of the local markets. While not always successful, it has proven to be a winning strategy. 1. Identify the key elements in McDonald’s global marketing strategy (GMS). In particular, how does McDonald’s approach the issue of standardization? The status of American-style hamburgers, fries, and soft drinks is already very popular in the whole world. In many locations, the menu adapt the customs and tastes of individual countries. McDonald’s offers an ultimate example of “global localization.” The key elements in McDonald’s marketing strategies are - inexpensive food - good taste - easily available for everyone - quick service - attend and serve the customer as fast as possible instant and receptive satisfaction from the customer. - clean, familiar environment. One of their major global marketing strategies is that they adapt their food to each region, but doing it in a way that they keep selling and offering the same product in a way people from...
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...Guilherme Karaoglan MBA 509: International Business Management Dr. Sivakumar Ventakaramany Individual Research Project McDonalds in Brazil November 24th 2013 McDonalds Introduction McDonald's is a company responsible for an international fast-food chain, being the second largest network in the world in the area, just behind Subway network. The term also refers to the brand of this company, which transcends and reveals inserted in contemporary mass culture. The network was founded in April 1955 in Illinois, USA. It currently sells about 190 burgers per second in the world, with a new store being opened every ten hours. Between 1955 and 1993, its 14,000 stores sold 80 billion sandwiches. Alongside brands like Coca-Cola McDonald's is considered one of the most widespread international symbols of capitalism. Its most famous product is the sandwich known as Big Mac. (http://pt.wikipedia.org/wiki/McDonald's) Arcos Dorados, the largest McDonald's franchise in the world, added profit of nearly $ 20 million in the third quarter of this year. In Brazil, the network operation achieved sales of 444.5 million dollars, similar to that achieved a year earlier amount. The Brazilian market represented, between the months of July to September, 44% of total company revenues, which totaled revenues of $ 1 billion in the period, up 6.2% compared to 2012. Currently, Arcos Dorados has almost 2,000 restaurants, 2,157 dessert centers and 344 McCafé units operating in 20 countries where it...
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...From September 16th to 29th, McDonald’s restaurants around the country gave out absolutely free small coffees to their customers during breakfast hours. The first free coffee giveaway took place around six months ago, and this past one was more or less a repetition of the first. McDonald’s released a statement that explained the reasoning behind the giveaway, which stated, “This event builds on McDonald’s first-ever Free Coffee Event launched in March, when the company gave away millions of cups of free coffee during the two-week period.” It’s also worth noting that McDonald’s has been undergoing horrible sales in eleven of the past twelve months. I think it’s safe to say that McDonald’s is hoping that this marketing maneuver will result in a turnaround in sales for the long run. The first step of the consumer decision-making process is problem recognition. It’s a well-known fact that a vast majority of Americans crave a cup of coffee in the morning, which is why coffee is such a huge business in the U.S. When most consumers think of restaurant coffee, they think of Starbucks, Dunk n’ Donuts, or Panera Bread. In my opinion, McDonald’s free coffee giveaway was an attempt to break into this list of high quality brand name coffee. McDonald’s had never been known for their coffee, but a year or so ago they started releasing a variety of coffee drinks labeled “McCafe,” that were basically a cheap version of the typical Starbucks coffee drink, such as the McCafe Latte or the...
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...Unit V Case Study Corey Reed Columbia Southern University BBA 4951, Business Policy and Strategy Professor Don Jernigan, MBA McDonald’s Case Study V McDonald’s perceived product positioning maps in comparison to their corporate strategy do line up to what is expected. There are areas for improvement in relation to their direct competition in every town. In reference to EPS/EBIT, it is relevant to their strategy implementation. McDonald’s product positioning maps do line up with their corporate strategy. Their strategy or motto is “Plan to Win”. When I think of a fast food restaurant winning, I think of winning over the masses of customer traffic. They certainly do this well. What makes up this strategy is; continued growth in the US and abroad, being a sustainable company, new items, new designs of business models, and remaining very competitive (NMINM's University, "n.d."). There is nothing about being the best quality, friendliest customer service, healthiest option, or most comfortable atmosphere. In these categories, I feel that they want to just do better than they have in the past with continued improvements. When you take a look at these product positioning maps, they tend to fall on the lower ends and very conservative in many fields such as atmosphere, quality, healthy choices, and limited choices (NMINM's University, "n.d."). Areas they tend to do better than some of their competition is speed of service, taste, and price (NMINM's University, "n.d."). This...
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...criterions and the target market is the group of customers a company wants to serve. “Market segmentation does matter as it helps to craft messages for a definite audience” (Diamandies & 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...
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...Tutorial One – A visit to McDonald’s Paul and his wife Emma set off from their home in Yorkshire to drive for a holiday in Scotland. It’s late in the morning, and the young couple are on the A1, heading up to Scotch Corner. The scenery is new and exciting, and their home seems a long way away. It’s noon, so they decide to eat a fast lunch at the next exit. A few miles later, they leave the Al and begin to wonder where they should eat. But the question is answered for them almost as soon as it has arisen, for at the bottom of the exit ramp is a familiar sign, a gold arch on a red background – ‘McDonald’s – Straight Ahead One Mile’. McDonald’s! Hamburgers! French fries! ‘Let’s eat at McDonald’s!’ Paul suggests. ‘We can’t see anywhere else to go, and at least we know what their food is like’. ‘Sure’ Emma agrees. ‘I could just eat a cheeseburger...or maybe even a Big Mac!’. About a mile further on is a large shopping centre, and at the far ends of its car park the golden arches of McDonald’s are plainly visible. Paul and Emma enter the restaurant, walk down the centre aisle between uniform rows of spotlessly clean tables, and examine the menu that is posted behind and above the service counter. Exactly the same menu as the one back home! They quickly decide what to have and approach the counter. ‘Can I take your order, please?’ inquires the crew member, smiling at them. ‘Two Big Mac meals with Diet Coke, to go please’. ‘Is that large?’ she replies. The order is placed...
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...societies of the world, for second because the kindness of McDonald's employees and the precision of McDonald's Web site, are perfect sources for all kind of information that can help analyse through Porter's value chain, all the aspects of its value creation. In the late 1940s, Dick and Mac McDonalds were searching for a way to improve their little drive-in restaurant in San Bernardino, California, U.S.A.; they invented an entirely new concept based upon speed service, low prices, and big volumes. Word of its success spread quickly, in 1952 they had more than 300 franchising inquires a month from all over the country. McDonald's is now the largest and best-known foodservice retailer and one of the two best-known and powerful brands in the market. With more than 24,500 restaurants in 115 countries, some of those operated by the company, some by franchisees or by affiliates operating under joint-venture agreements. The global market potential is still huge: yet on any day, even as the market leader, McDonald's serves less than one percent of the world's population. The restaurant chain plans to expand their leadership position through convenience, superior value and excellent operations. The effort to increase market share, profita! bility and customer satisfaction has produced high returns to shareholders: a compound annual total earning of 21% over the past 10 years. McDonald's vision is to dominate the world-wide foodservice industry...
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...strategies of McDonald’s Corporation and Starbucks Corporation. An overview of the company histories is included along with the basic business philosophies. The focus of the paper is on the marketing strategies, both domestic and international, examining the marketing mix for each company. The four P’s of marketing are detailed with examples of how each company uses them to their advantage. The reasons for the successful global expansion of both companies are incorporated into the compiled information. A Look at the Global Marketing Strategies of McDonald’s and Starbucks McDonalds and Starbucks are two domestic companies that are very successful. Both have emerged first as leaders in their respective markets domestically, and because of that success have been able to grow and expanded into countries all over the world. This paper will examine these two companies from a global perspective in order to evaluate their marketing strategies, with a particular emphasis on how successful they have been in foreign markets. The paper will focus on how each company has applied the four P’s of price, product, place and promotion in their marketing mix, detailing how they are used gain an advantage in their respective markets. Finally, the paper will evaluate the success of these organizations in developing niches in their markets as compared to their competition. The first company examined is McDonald’s Corporation or McDonald’s as the brand name most widely known. McDonald’s operates...
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...1.)How has McDonald’s concept changed since the 1960s ? What environmental forces were behind these changes? By 1960, the company had more than one hundred restaurants. Kroc and the McDonalds owned some, but most were franchises. In addition to paying a franchise fee and part of their profits, franchisees also paid the company rent on the land where the stores sat. This income eventually earned more money for the McDonald's Corporation than selling food. During the 1960s, McDonald's saw many changes. Kroc became the sole owner in 1961, paying the McDonalds $2.7 million for their share of the business. The same year, the company opened "Hamburger University" at its Oak Brook, Illinois, headquarters to train employees. In 1962, McDonald's golden arches replaced Speedee as the restaurant's main symbol, and ads told customers to "Look for the golden arches." McDONALDS : MACRO ENVIRONMENT Organization’s decision making and performance and strategies are sometimes affected by some external factorsThe most common methods used for macro economic environment analysis is PESTanalysis. PEST anlayis do the environmental analysis from the following points of view:Source: Marketing Model, 2009.: Macro Environment and Marketing Mix3 A. Political factors Political factor mainly refers to government policy. For example, the degree of government’s intervention in an economy is a good example of political factor .According to Oxford University Press political factors mainly deals with...
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...1 Introduction "No two countries that both had McDonald's had fought a war against each other since each got its McDonald's.” This quote of Thomas L. Friedman, a well-known US-American foreign affairs and globalization expert, shows two of the main results of globalization: Companies that are becoming more international and a world in which the countries start cooperating more and more instead of fighting wars. People start in-teracting borderlessly and politicians and newspapers mention the “world community.” There are mainly three forces that are contributing to the process of globalization: the liberalization of capital movements, the opening of global markets to trade and invest-ment, and the increasing use of information and communication technologies. If you want to define globalization you have to emphasize that Globalization is a multi-dimensional phenomenon that not only touches political, economic, social and cultural spheres of any society but also reshapes the traditional way of studying the “social world and human nature” first. At political and economic level, globalization is the process of denationalization of markets, politics and legal systems, it is the rise of global economy. Good examples for this development are e.g. the European Union or the negotiations of the European Union with the United States to create the biggest trade zone of the world. At the business level, globalization is when companies decide to take part in the emerging global economy...
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