...of McDonalds Malaysia briefly. Apart from this, we would also present the SWOT analysis which is Strengths, Weaknesses, Opportunity, and Threats of the McDonalds. Strengths and weaknesses is internal environment, while opportunity and threats is external environment. Lastly, we suggested some recommendations to improve the situation of the McDonalds. 1.0. COMPANY’S BACKGROUND According to McDonalds (2014), McDonald’s is the global leading fast food retailer with more than 35,000 restaurants serving approximately 70 million people each day in more than 100 countries. There are more than 80% of restaurants worldwide are franchised by independent local franchisees. McDonald’s arrived in Malaysia in December 1980 and McDonald Corp. gave their license to Golden Arches Restaurants Sdn Bhd (GARSB) to open McDonald's Restaurant in Malaysia by Tan Sri Vincent Tan. Since then, McDonald’s Malaysia has about 196 franchise outlets nationwide and is currently expanding annually. It has created over 7000 job opportunity since they arrive in Malaysia over the years. (ifranchisemalaysia, 2014) 2.0. SWOT ANALYSIS 2.1 STRENGTHS According to Strategic Management Insight (2014), McDonalds has strong brand name, reputation and considered the first one who entered to fast food industry compare to other companies in Malaysia. According to McDonalds (2014), McDonald’s success is base on a foundation of integrity. There are hundreds of millions of people around the world trust McDonalds. McDonalds...
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...McDonalds in malaysia Executive Summary The first section of this case study will introduce the background of McDonalds in Malaysia, the mission and vision of McDonalds and also the opportunity and threats of McDonalds. After the brief introduction is the external environmental analysis of McDonalds. The next section analyses the fast food industry through Porter's five forces model as well as the competitor analysis that consist of Burger King and KFC. Subsequently, market analysis is conducted to indentify the market trend and also the market size and growth. Next is the analysis of the buyer analysis. The analysis is being analyzed base on the psychological factors, personal and social factors. Then followed on are the internal analysis and core competencies. This analysis is to analyzed McDonald's strengths and also its weaknesses The next segment will discuss the market segmentation, targeting and positioning of McDonalds in Malaysia market. The marketing program of McDonalds will then be evaluated as well as its financial performance. Lastly, the issues and problems are brought up and recommendations are given to improve the situation. 1.0 Company Overview McDonalds was founded by two brothers, Richard and Maurice McDonald in 1937 in California. This largest global fast food chained arrived in Malaysia 43 years later in December 1980. McDonald Corp. gave their license to Golden Arches Sdn Bhd to open McDonald's Restaurant in Malaysia. After twenty six years they...
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...McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries. Headquartered is located in the United States. The company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald. However, in 1948, they reorganized their restaurant stand using production line principles. Then Ray Kroc who is businessperson joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth. 2. Mission and Vision: Mission: McDonald's brand mission is to be our customers' favorite place and way to eat and drink. Our worldwide operations are aligned around a global strategy called the Plan to Win, which center on an exceptional customer experience – People, Products, Place, Price and Promotion. We are committed to continuously improving our operations and enhancing our customers' experience. Vision: McDonald's vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile 3. Business Objective: To achieve 100 percent total customer satisfaction …everyday...in every restaurant...for every customer II. S.W.O.T Analysis S.W.O.T table: Strengths 1. Stabile and Predictable brand name 2. Largest fast food market share in the world 3. Brand Recognition...
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...Question 1: Discuss any FIVE (5) management actions that have contributed to the success of McDonalds. Every organization has their different objectives, missions and visions to achieve in order to ensure company’s growth. However, the skills of management in the company are relatively important in order to motivate and provide guidance to employees so that everyone is in the right path to the common target. According to Pearson Educations (2012), management carries a definition of a skill that involves coordinating and overseeing the work activities of other employees so that the activities are 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...
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...McDonald’s Malaysia, it is vital that the production of this meal must abide the rules and regulations of Malaysia. First of all, McDonald’s must acquire a trademark for The Hearty Meal to distinguish it from any other fast food meal in the industry. Trademark is a symbol, word that is legally registered to represent a company or product. A trademark should be given to The Hearty Meal as it is a new product that is modified from the Happy Meal. Besides getting a trademark, it is compulsory that the Hearty Meal must be Halal certified by JAKIM as Malaysia is a Muslim country. Halal certified food will prove that this meal is suitable for the consumption of all religion in Malaysia especially the Muslims. On top of that, the quality of The Hearty Meal is assured for it is known that the meat that is supplied to McDonald’s fast food chain is ISO9001: 2000 certified and also awarded the Veterinary Health Mark by the Department of Veterinary Services. There must be food safety management systems in place that includes Quality Assurance Program (QAP), a verified Hazard Analysis Control Point (HACCP) plan and a crisis management as well as food security programs. To ensure this, McDonald’s use only approved colouring and ingredients. Besides that, McDonald’s uses good grades eggs and chicken meat from its own poultry farm that is free from harmful chemical and all other meats from its own farm as an initiative to ensure the quality assurance. Apart from the resources of food, the...
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...analysis forces a company to reflect on who it is and ask who they want to be in the future. Where is your company now? Burger King Holdings, Inc. was founded in 1953. Burger King is the world's number 2 hamburger chains after McDonalds. By the early 2000s Burger King is a little left behind. Years of under-investment left it struggling in its rival's shadow by the early2000s. Although a lot of consumers agree that it meals taste better than McDonald ones but it doesn't have the excellent perception created the administrative power and the aggressive marketing of his main by concurrent. It was freed in 2002 from Diageo the number one in wine and spirit drinks, which owned it since 1997, after a merger with Guinness. Although owned by Texas Pacific Group for US$2.26 billion, it recovered its latitudes of the sixties. The number 2 in hamburger fast food came back progressively in the fight with McDonalds. Since 2004 their performance constantly increased. In their intensive marketing campaign it targeted particularly core young male market. Advertising Age estimated global measured advertising expenditure of US$356m in 2007; making Burger King the world’s number 95 advertisers. Burger King in Malaysia came in December 1997. To date, there are 20restaurants in Malaysia. Look out for more outlets in the near future. There are currently, 3...
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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...
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...Conclusion The McDonald's Corporation is the world's largest chain of hamburger fast food restaurants. The company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald and takeover by Ray Kroc after that. McDonald's restaurants are found in 118 countries and territories around the world and serve 68 million customers each day. McDonald's operates over 34,000 restaurants worldwide, employing more than 1.7 million people.Golden Arches Restaurants Sdn Bhd is a company incorporated in Malaysia in December 1980 which has the license to operate McDonald’s restaurants in Malaysia from McDonald’s Corporation. At McDonald's, cross-functional job rotations are encouraged, globally and in Malaysia. About 80 per cent of McDonald's employees are from Generation Y - those born in the late 80s and early 90s because young staffs want flexible working hours and are easily bored. However, McDonald's job rotation policy makes them feel like they can learn something new every day. Job rotation avoids monopoly and provides an opportunity to broaden one’s knowledge. Besides, it can avoid the fraudulent practice and prevent employees from doing any kind of fraud. Job rotation attempts to overcome the disadvantages of job specialization by periodically moving workers from one specialized job to another to give them more variety and opportunity to use different skills. There are also cons of job rotation. For who is doing a particular job and get it comfortable suddenly...
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...PESTLE Mcdonald's PESTLE Analysis POLITICAL The operations of McDonalds are affected by the government policies on the regulations of fast food operation. Currently government are controlling the marketing of fast food restaurant because of health concern such as cardiovascular and cholesterol issue and obesity among the young and children in the country. Governments also control the license given for open the fast food restaurant and other business regulation need to follow such as for a franchise business. Good relationship with government in giving mutual benefits such as employment and tax is a must for the company to succeed in any foreign market. McDonalds should also protect its workers by ensuring all the hiring, compensation, training or repatriation is according to Malaysian Labor Law as stipulated. ECONOMICS As a business entity, McDonalds need to face a lot of economic variables outside its company or its macro environment. Dealing with international sourcing for its material McDonalds should be aware on the global supply and currencies exchange. Remember, McDonalds import most of its raw material such as beef and potatoes due to local market cannot supply in abundant to meet the demand of its product. Any upside of currencies especially dollar will be impacting its cost of purchase. Working on the local country, McDonalds must face government regulations on tax of profit where it gains from the operation and other tax such as entertainment and restaurant...
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...Restaurants are one of the most common places all over the world. The restaurant business has grown rapidly in twenty first century because of the fact that almost every day there are thousands of people going to restaurant. There are many reasons for people dining in at a restaurant. People dine in at the restaurant because of the busy schedule, to socialize, to eat varieties of food, and many more. What is a restaurant? According to oxford dictionary, “Restaurant is a place where people pay to sit and utilize the service along with the food and drinks.” Looking at the current context of restaurant, the meaning of restaurant has changed widely. According to Prof. and author John R. Walker, “Delmonico’s, located in New York City, is thought to be the first restaurant in America and Delmonico’s opened its door to the public in 1827” (John, 2008 (fifth edition)). There used to be times when people used to cook at homes which changed drastically and nine out of ten people would visit restaurant on a daily basis at least 2-3 times a day. Cooking have faded away in American because people are working more than what they used to work 10 years ago. This is one of the reasons that gave birth to restaurants and became a huge success in the twenty-first century. According to Lorri Mealey, “ By the seventeenth century, while full meals were typically eaten at home, moderately well-to-do people would hire a trattatorie(caterer) or take their meals in private salon, rather than in the main...
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...restaurant industry. Restaurant is basically a place that prepares and serves food for customers outside from home. The main purpose of a restaurant is serving food to customers, but some may also provide entertainment or other services. With all the various types of food that we consumers demand for, the restaurant industries have different kind of restaurants, for example, Thai cuisine restaurant, Chinese food restaurant, Sushi restaurants, fast food restaurant, in order to satisfy customers’ desire. The restaurant industry is the largest employer in the private sector, and it continues to get larger every year (Vault.com, 2014). According to the National Restaurant Association’s analysis, the restaurant employment stands 441,000 jobs above its high point before the recession, while the overall economy in 2012 is still down 3.2 million jobs from the prerecession peak (Qsrmagazine.com, 2013). It might seem like an easy business to set up as food is under the physiological needs according to the Maslow’s hierarchy of needs, which means there will be no problem of running the business as an individual moves up the needs hierarchy from one level to the next (McLeod, 2007). Human needs food to survive, thus, the restaurant industry may easily gain a desirable profit. However, there are a few external environmental factors that affect the organization. For example, the most well-known globalized fast food restaurant that is operating now, McDonald’s, has to face some of the external...
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...Chosen product detailed description After researching, we can find that Jollibee is an American-style fast-food restaurant with Filipino-influenced dishes specializing in burgers, spaghetti, chicken and some local Filipino dishes. In the Philippines, Jollibee serves Coca-Cola products for its beverages; in overseas markets, the chain serves Pepsi products. The Jollibee brand successfully incorporated into its line-up the Sweet & Sour Meatballs, Grilled Pork Tenders, Jollibee floats and Flavored Crispy Fries in 2011. It also introduces the Crunchy Chicken Burger and Chicken Nugget Crunchers to its chicken offerings. The charming thing for me is the brand also added the Corned Beef Pandesal, Chicken Sausages and Pancake Combos, and Hash Brown Burger to its breakfast line, and the Choco Crumble Sundae and Strawberry Sundae for dessert lovers. Thus, we can see that Jollibee is always progress until now. Core target group analysis in the selected market Jollibee principal business is the development operation and franchising of quick-service restaurants under the trade name “Jollibee.” However, Jollibee knows the food quality, service, price-value relationship, store location and ambience, and efficient operations continue to be critical elements of the Company’s success in the quick-service restaurant industry. The company president is Tony Tan Caktiong (better known as TTC). He started Jollibee in 1975 as an ice cream parlor owned and run by the Chinese-Filipino Tan family...
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...deeply involved in the restaurant business. Their main idea for the restaurant was center around a place that people would come to and get the best quality food. They also wanted the experience to be in a pleasant atmosphere. Burger King operates more than 12,000 restaurants in all 50 states and in 76 countries worldwide. About 10,800 of those restaurants are owned and operated by independent franchisees, many of them family-owned operations that have been in business for decades. Below is their mission statement. Burger King’s Mission Statement – “We will prepare and sell quick service food to fulfill our guest's needs more accurately, quickly, courteously, and in a cleaner environment than our competitors. We will conduct all our business affairs ethically, and with the best employees in the mid-south. We will continue to grow profitably and responsibly, and provide career advancement opportunities for every willing member of our organization." GAP Analysis: Where is your company now? Burger King Holdings, inc. was been founded in 1953. Burger King is the world'snumber 2 hamburger chains after McDonalds. By the early 2000s Burger King is a littleleft behind. Years of under-investment left it struggling in its rival's shadow by the early2000s. Although a lot of consumers agree that it meals taste better than McDonald onesbut it doesn't have the excellent perception created the administrative power and theaggressive marketing of his main by concurrent.It was freed in...
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...McDonald's Headquartered in the United States, McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries. In 1937, Patrick McDonald opened "The Airdrome", a food stand,in Monrovia, California. Hamburgers were ten cents, and all-you-can-drink orange juice was five cents. In 1940, his two sons, Maurice and Richard moved the entire building to San Bernardino, California and operated it as a barbecue restaurant. Businessman Ray Kroc joined the company as a franchise agent in 1955. He purchased the chain from the McDonald brothers and oversaw its worldwide growth. In 1955, Ray Kroc opened the first franchised restaurant in Des Plaines, Illinois, the ninth Mc Donald's restaurant overall. (Franchising is the practice of using another firm's successful business model.) With the expansion of McDonald's into many international markets, the company has become a symbol of globalization and the spread of the American way of life. The original mascot of McDonald's was a man with a chef's hat on top of a hamburger shaped head whose name was "Speedee". Speedee was eventually replaced with Ronald McDonald a clown shaped man having puffed out costume legs. 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. In Germany, 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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