...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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...a competitive environment: A McDonald's Restaurants case study For businesses to understand adequately the nature of the competition they face, they must define their market accurately. This involves recognising a broad base of competitors. McDonald's has thousands of competitors, each seeking a share of the market. McDonald's recognises that it is up against not only other large burger and chicken chains but also independently owned fish and chips shops and other eat-in or take-out establishments. A company like McDonald's therefore, has to develop competitive strategies that differentiate it from its rivals. All organisations need to be in touch with their business environment in order to make sure that what they do fits with customer expectations. These expectations change over time. Moreover, the IEO market in which McDonald's operates is becoming increasingly competitive, as the chart below illustrates. Recently, in this crowded market place, McDonald's competitive lead came under pressure largely because many fast food outlets have either: • copied the trail-blazing ideas that previously set McDonald's apart and put it ahead of the field • promoted new ideas of their own e.g. urban supermarkets and petrol stations that sell convenient, portable mealtime replacements. McDonald's recognises the need to respond. It is looking to increase the competitive gap by: • adding greater value through innovation • making the process of visiting a McDonald's less routine and...
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...com - Free Term Papers, Essays and Research Documents The Research Paper Factory JoinSearchBrowseSaved Papers Home Page » Business and Management Case of Gm (Non-Market Environment) In: Business and Management Case of Gm (Non-Market Environment) Question 1: Identify and explain the 4l’s based on the case. a. Issues The dispute over the safety of the PICKUP TRUCKS, vehicle safety and defective design Firstly, the root cause is that the GM company has a unreasonable design of their gas tank on the collisions GM C/K pickups, the report shows that this pickups’ gas tank was too close with the bumper, it only 25 centimeters long. This is dangerous because that will cause explosions if there is any strike. A safety design should be place the gas tank on the top of axle or add on a shield between the gas tank and bumper. Further, the report also shows that the gas tank design was used for trucks manufactured between 1979 and 1987, and the fact is GM knows about their design problem but take no measure to fix or recall their cars because that will cause more cost. At the Moseley case happens, there are at least 130 other lawsuits involving the design of the gas tank GM need to faced. So the major issue of this case in this point is that whether the gas tank design and placement were defective and because that explosion case after their pickup was struck on the side by another vehicle. And those assumptions were proved by the GM engineer who is testified that GM company hidden...
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...OPERATIONS MANAGEMENT OF : | McDonald’s Restaurant | | This documentation of research looks into the operation management of McDonald’s restaurant under the grounds of Quality, Inventory and Capacity management. This report has been prepared for the purpose of International Operation Management module for MBA program of ANGLIA RUSKIN UNIVERSITY. | | 0977106/1 137068/268400 | 4/14/2011 | | LONDON COLLEGE OF ACCOUNTANCY INTERNATIONAL OPERATIONS MANAGEMENT PREPARED BY: LCA STUDENT NUMBER: 137068/268400 ARU STUDENT NUMBER: 0977106/1 WORDS IN TOTAL: 3847/4338 Table of contents: 1. Introduction........................................................................4 1.1 Case Introduction.....................................................................4 1.2 Introduction of the company...................................................5 1.2.1 Brief Introduction of raw product...........................................7 2. Product Design process....................................................8 2.1 Filet-O-Fish: - History of its own............................................10 3. Capacity and Inventory management issues..............12 3.1 Inventory management for filet-o-fish in McDonald’s...........13 4. Quality Management........................................................14 4.1 Total Quality Management.....................
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...of the external macro environment in which a business operates. According to (2008), pestle stands for political, economic, social, technology, and environmental factors. A. Political Factors The international operations of McDonald’s are highly influenced by the individual state policies enforced by each government. (2001, 705) For instance, there are certain groups in Europe and the United States that clamour for state actions pertaining to the health implications of eating fast food. (2005) They have indicated that harmful elements like cholesterol and adverse effects like obesity are attributable to consuming fast food products. On the other hand, the company is controlled by the individual policies and regulations of operations. Specific markets focus on different areas of concern such as that of health, worker protection, and environment. All these elements are seen in the government control of the licensing of the restaurants in the respective states. For instance, there is an impending legal dispute in the McDonald’s franchise in India where certain infringement of rights and violation of religious laws pertaining to the contents of the food. The existence of meat in their menus in India is apparently offensive to the Hindu religion in the said market. There are also other studies that point to the infringement of McDonald’s Stores with reference to the existing employment laws in the target market. Like any business venture, these McDonald’s stores have to contend...
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...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 environment, particularly in the economic, demographic...
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...CASE ANALYSIS #1: McDonald’s “Seniors” Restaurant In the study of the briefing of the McDonald’s Restaurant, there are positives to the problem and negatives towards the problem. A McDonald’s in a city crowded with seniors are overwhelmed with senior customers during the early hours of the day. The senior come in as a meeting area where they eat and commune at the restaurant. The number of seniors that come in, crowds the dining area in which customers come in and eat. They come in on the fourth Monday of every month to get extra special, over the age of 55 discounts. This is a meal that cost 1.99 and free coffee refills. The staff knows the seniors very well and go to see them if they are hospitalized. The relationship is considered a good one between the staff and the seniors. In addition, a idea of adding bingo to add to the excitement of the mornings for the seniors from nine to eleven a.m. Using the party room would accommodate up to 150 senior patrons. A primary problem to this case study is the senior crowd. The restaurant already takes on the task of having enough room to seat the entire dining style crowd, if it engages in bingo than the crowd will become even more outrageous. Not only will the restaurant have the meeting crowd they will have a bingo crowd as well. Meaning, that more senior crowd will come in ready and only ready to engage in bingo. A secondary problem would be the title of the restaurant would be at risk. The fast food label...
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...1.0 Introduction This case study is discussing about strategic adaptation made by McDonald’s in India in effort to penetrate and sustain its market in the country. India is a country whereby 80% of its population are Hindu and 40% are vegetarian. Hence, for Hindu they should not eat beef because cow is a symbol of holy in their religion and for vegetarian eating any food that related to animals are prohibited. The accelerating numbers of local chain in quick service restaurant that offered food that more attuned to local taste increase the intense of competition. On top of that, the slowing of Indian economy also becomes a major problem for McDonald’s operation. Thus, this study will discuss about the problems facing by McDonald’s in India. In the next section, strategic audit regarding current situation, corporate governance and external and internal factor analysis summary will be presented. Fourth and fifth section is discussing about strategic factors analysis summary and strategy alternatives recommend to McDonald’s in India. For the sixth section, implementation strategy of McDonald’s will be presented and lastly, evaluation and control system in measuring the implementation of strategy are being discussed. 6.0 Implementation strategy of McDonald’s This section is discussing about implementation strategy that McDonald’s used based on the strategy alternative recommended in section five. 6.1 Differentiation strategy Differentiation strategy can be implemented through...
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...[pic] McDonald's and the Environmental Defense Fund: a case study of a green alliance Sharon Livesey Originally published in…The Journal of Business Communication • January 1999 In 1987, the United Nations World Commission on Environment and Development, which had convened to address the global ecological crisis, produced Our Common Future (the Brundtland Report). This watershed event established the conceptual underpinnings for environmental politics and debate in the 1990s by reframing the problem of the natural environment as one of sustainable development. In the wake of this reframing, a new practice in environmental management emerged - that of green alliances or partnerships between business and ecology groups (Westley & Vredenburg, 1991, pp. 71-72). These alliances, considered one of the ten most significant trends in environmental management and the greening of industry (Gladwin, 1993, p. 46), appeared to signal a sea change in the way business, as well as environmentalists, could respond to the ecological impacts of firms' economic activities. Indeed, environmental partnerships offered both business and ecology groups the potential for a new rhetorical stance. Business communication scholarship has identified a variety of rhetorical strategies adopted by corporations in the face of environmental controversy: defensiveness and apologia (e.g., Ice, 1991; Tyler, 1992), competing information campaigns (e.g., Lange, 1993; Moore, 1993), or retreat (e.g., Seiter...
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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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...the environment. Characteristics of networks, which appear due to the environment, influence the drivers of performance, i.e. the factors that are responsible for the networks’ success or failure. The paper is theoretical and makes use of different sources of evidence: empirical and theoretical studies on franchising and inter-organisational networks. The conceptual framework is finally tested on a small case study of two franchising networks operating in Russia. JEL-code: Franchising Networks, Performance, Flexibility, Information Exchange, Innovation and Learning Outline I. Introduction 3 II. Definition of franchising networks 4 III. Institutional environment of a transition economy 5 IV. Performance of franchising networks 7 A. Flexibility 7 B. Information exchange 10 C. Innovation and learning 12 IV. Conceptual Framework 15 A. Sociological and Economic Traditions of Network Research 15 B. Economic Theories for the Study of Networks 16 C. Sociological Theories for the Study of Networks 17 D. Conceptual Framework for the study of Performance of Franchising Networks 20 V. Empirical case study 23 VI. Conclusions 23 VII. Bibliography 25 Introduction With people waiting in line for three hours to get into the first McDonald’s restaurant opened in Moscow in 1990, the concept of franchising was brought to Russia. After almost a decade this concept does not sound unfamiliar any more. Lots of Western companies like McDonald’s, Alphagraphics...
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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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...consumer service; two organisations that operate in the fast-food industry are McDonald's and Hungry Jack's. McDonald's was chosen because it is the primary operator in this market and holds the greatest market share. Hungry Jack's was chosen because the product they offer is the most similar to McDonald's. I thought it would be interesting to compare marketing strategies of two organisations that offer a fairly similar product. McDonald's is the market leader both in Australia and throughout the world. Hungry Jack's is positioned more as a market follower. Companies use target marketing to tailor for specific markets. There are three components involved in target marketing: market segmentation, market targeting and market positioning. McDonald's primary target markets are seniors, adults and teenagers however the most heavily targeted segment is children. Hungry Jack's also essentially segment their market using demographic variables. The final step in target marketing is developing a marketing mix. These tools are also known as the four P's and in the case of services, the seven P's. They are product, price, promotion, place, people, process and physical evidence. With the marketing mix of McDonald's compared to Hungry Jack's, the major difference is that McDonald's promote their product using the marketing mix more evenly. Hungry Jack's use many elements of the marketing mix similar to McDonald's, however they are not as heavily promoted and are more interested in promoting...
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...Pollution Prevention in Corporate Strategy NATIONAL POLLUTION PREVENTION CENTER FOR HIGHER EDUCATION Case A: McDonald’s Environmental Strategy Susan Svoboda, manager of the University of Michigan Corporate Environmental Management Program (CEMP), prepared this case under the guidance of Stuart Hart, director of CEMP and assistant professor of Corporate Strategy and Organizational Behavior at the U-M School of Business Administration, as the basis for class discussion rather than to illustrate either effective or ineffective handling of an adminstrative situation. This document may be used by either students or faculty for background information. Introduction Rooted in Ray Kroc’s founding principles of Quality, Service, Cleanliness & Value (Q.S.C.&V.), McDonald’s management has always believed in being a leader in issues that affect their customers. This philosophy is evident in McDonald’s involvement in various community projects regarding education, health care, medical research, and rehabilitation facilities. These activities help the corporation to extend their image beyond fun and entertainment into social responsibility. However, in the late 1980s, McDonald’s began to face criticism for its environmental policies, especially those surrounding polystyrene clamshell containers. In 1987, McDonald’s replaced CFCs, the blowing agent used in clamshell production, with weaker HCFC-22’s after facing public criticism that CFC usage was contributing to ozone depletion. But...
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