...summary……………………………………………… page 3 II. Situational analysis……………………………………………………. 4 III. Marketing strategy…………………………………………………... 7 IV. Manufacturing plan………………………………………………….. 10 V. Financial plan………………………………………………………... 10 VI. Human resources plan……………………………………………….. 11 I. EXECUTIVE SUMMARY: McDonald’s Corporation is a “Centralized, International company”, which competes in the fast food industry supplying hamburgers, French fries and other consumable items using standardization, heavy expansion and branding as the driving force. McDonald’s operates in over 121 countries and has over 30,000 restaurants worldwide. McDonald’s utilized an intense, rapid expansion into foreign countries through three primary methods, franchising, company owned restaurants, and joint ventures. With the majority of international restaurants stemming from franchising agreements, McDonald’s management relied on this method to aid in the acceptance of a new style of eating into unfamiliar markets. With minimal risk and maximum gains, franchising continues to contribute heavily to McDonald’s international success. With a centralized, international structure, McDonald’s keeps a tight grasp on operations, cost and quality. With an ethnocentric management strategy, McDonald’s relies on domestic based logic and attitudes and transfers them to their international outlets and restaurants. In order to control its overseas operation, McDonald’s uses a combination of...
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...Report | International Business Management | MKT-324 | | | Submitted to: Dr. Amira Khattak Submitted by: Aqsa Qamar Sarah Malik Sabah Anwar Hayat Solangi Afaq Baig Date: January, 26th, 2015 Table of Contents 1.0 Company Introduction 4 2.0 Problem Statement 5 3.0 Literature Review 5 3.1 The Concept of Internationalization 5 3.12 The Entry Mode 5 3.13 The Factors That Influence Entry Mode Choice 6 4.0 Findings 7 4.1 Mode of entry 7 4.12 Autonomy in Operations 8 4.13 Conditions of Franchising. 8 4.14 Restaurant Ownership 8 4.2 Location 9 4.21 Mission as the Guiding Principle. 9 4.22 Market share 10 4.23 Pricing Strategy 10 4.3 Functional Strategies 11 4.31 Marketing Problems 11 4.32 HR Problems 11 4.33 Training 11 4.34 Adapting to Pakistani culture 12 4.35 Promotional strategies 12 4.4 Environmental Scanning 12 4.41PEST Analysis 12 5.0 Conclusion and Recommendations 14 6.0 References 16 Abstract In this age of internationalization, people are able to share any kinds of food from different parts of the world, thanks to the global business of food and beverage companies. As the leading driver of global growth in consumer food service, the fast food industry...
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...on McDonalds One of the competitive advantages is the strategy used in a company. In McDonalds Company, the strategies can be divided into several parts which are the strategies of competitors, globalization, health issues and how McDonalds overcome them, respect towards cultural differences among every different countries, and they put a strong focus on children. There are many international fast food franchises such as Burger King, KFC, Subway and etc. However, McDonalds are one of the international fast food and they are struggling that the consumers start to switch to their competitors in the year of 2002 (Han, 2008). It is because most of their competitors put a strong emphasis on offering healthier, hotter and higher quality of food yet cheaper. In this case, McDonalds used the strategy of adapting environmental change, that they start promoting healthier and affordable prices to satisfy the customer’s demands. Besides that, McDonalds also faces the impact of health issue. Some claims that McDonalds provide oily and unhealthy food that will lead a person to become an obese. However, McDonalds came out with the strategy of changing their menu to by adding salads and other lighter options into the menu. Other than that, McDonalds serve McGriddles sandwiches for breakfast in United States and Canada. Furthermore, they provide the customers to access the internet with the technology of wireless platform. This strategy of McDonalds has successfully attracts not only the students...
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...Question #1 ‐ What are the key differences across countries that confront international competitors in the fast food restaurant industry Although the fast food industry can be divided in at least 12 categories, according to the case study we just focus on the main four segments: Burger, Pizza, Chicken and Mexican food. Despite culinary and cultural differences global players also face other competitive challenges concerning market segmentation in these distinguished categories. In order to have a better analysis structure we decided to use the STEP Analysis by Stonehouse, which uses four main categories: social cultural demographic effects, technological and infrastructural effects, economical and financial effects, political and legal effects. Within each category we will distinguish between the four main segments of the fast industry. Social, Cultural and Demographic An overall phenomenon, we can see in all segments of fast food industry, is a general openness to international products especially in the Asian market. There are also differences regarding the target groups in the different markets, e.g. KFC, which was positioned for the middleclass in Australia whereas attracting blue collar in the U.S. The first and the biggest category is the burger segment with McDonalds and Burger King as main players of the market. One of the main problems competitors are facing in this segment are health concerns by the customers like mad cow disease, overweight, cholesterol or diabetes especially in ...
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...Summary………………………………………………………………………………3 Company History…………………………………………………………………………………3 Problem Statement………………………………………………………………………………..5 Human Resources Issues……………………………………………………………………...5 Operating Management Issues………………………………………………………………...5 Financial Issues…………………………………………………………………………..........6 Marketing Issues………………………………………………………………………............6 Supporting Arguments……………………………………………………………………………7 Industries Analysis…………………………………………………………………………….7 Fast Food Industry………………………………………………………………………… 7 Porter’s 5 forces model for JFC…………………………………………………………….....8 Firm Analysis………………………………………………………………………………….8 Alternatives Strategies…………………………………………………………………………...10 Choosing the Right Strategy…………………………………………………………….........10 Existing Strategy for Jollibee……………………………………………………………...….11 Recommendation for Decision making………………………………………………………… .11 Papua New Guinea………………………………………………………………………...… 11 Hong Kong…………………………………………………………………………..……… .11 California……………………………………………………………………………………. .11 Implementation Plan……………………………………………………………………………. 11 Human Resources Revamp plan………………………………………………………………12 Operations Revamp plan……………………………………………………………………....12 Financial Revamp Plan………………………………………………………………………..13 Marketing Revamp Plan………………………………………………………………………13 Appendix…………………………………………………………………………………………14 References………………………………………………………………………………………..15 Executive Summary Jollibee Food Corporation...
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...on the success of an International Franchise: The case of McDonalds in East Asia and The Americas. Executive Summary In the last six decades, the significance of franchises worldwide has grown to such a large extent that many successful high street shops as well as restaurants have a link to franchising. This dissertation is going to discuss the means by which an international franchise can become successful through the incorporation of cultural adaptations in a foreign country. This discussion would be restricted to international franchises in the fast food industry examining the case of McDonalds in particular as well as how its global success has led to the term known as McDonaldisation. Definition of Franchise: The right granted by a company to an individual or group to market its products or services in specific territory. Definition of Culture: Ideas, customs and social behaviour of a particular people or society. (These definitions are from a dictionary, is that allowed?) LITERATURE REVIEW This literature review would discuss the evolvement of franchising as well as how it has spread on an international scale. It would further enlighten us on the benefits franchising brings to individuals and the economies of various countries. Lastly, it would highlight the birth of the McDonalds franchise as well as how this business medium has adapted to cultural differences in various countries in terms of the operations and its food menu. (Dnes,...
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...1Introduction 1.1McDonald’s operations in international markets McDonald’s is the leading global foodservice retailer with more than 30,000 local restaurants serving 52 million people in more than 100 countries each day. It is one of the world’s most well-known and valuable brands and holds a leading share in the globally branded quick service restaurant segment of the informal eating-out market in virtuallyevery country in which it operates. 2McDonald’s and its external environment 2.1Political/legal factors A legal issue occurred in Russia for McDonald’s when, in 1993, a law was passedin Moscow requiring all stores to have Russian names, or at least names translated into the Cyrillic alphabet. This meant the company had to translate its brand name to. This enabled McDonald’s to at least retain the sound of its name. 2.2Economic factors Economic factors include factors that affect consumer purchasing power and spending patterns. It is, therefore, important for McDonald’s to understand that, in countries with a lower stage of economic development, it is necessary to set a lower price.. For example, in foreign markets with low economic development, McDonald’s should try to use cost effective methods of promotion, otherwise the final price would be beyond the reach of most customers. 2.3Technological factors Technological developments have made international travel and communication more accessible to consumers and led to a situation in which social habits and fashions...
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...Recommendations 5.Conclusion Reference list Executive Summary: The purpose of this report is to assess the current situation of Jollibee to determine whether the brand should enter the UK or not. The report is divided into five sections. The first section is the background to Jollibee and its international operations. The second section is the environmental analysis of Jollibee through the external analysis--- PESTEL and internal analysis---the value chain in terms of market trends, customers, competitors and current position along with the SWOT analysis. The third section is the strategic concerns faced by Jollibee in the UK market. The recommendations based on the previous discussion will be given for the UK market in the fourth section. In the final section, the conclusion will be given out. 1. Introduction: Jollibee Foods Corporation was an ice cream parlor named magnolia, started by Chinese-Filipino Tony Tan Caktiong in 1975 as a family-based business in the Philippines. And Jollibee then began offering hot meals and sandwiches in 1977, which are unique Filipino food that meet with local tastes. This home-style Philippine recipe appeals to the customers and make Jollibee expand quickly throughout the Philippines. And Jollibee’s success in the Philippines had brought...
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...What is McDonald’s doing right in India? What elements of its business strategy are working for it and how does it manage to get more out of its stores? McDonald’s made a very meticulous and calculated entry into India. Instead of getting the first mover advantage, McDonald’s purposely delayed their entry into India. In the early 1990’s many of the U.S. based fast food chains made their entry into the Indian market with some of the more notable competitors being KFC and Pizza Hut. McDonalds deliberately postponed their entry until 1996 to research various aspects of the Indian market. Much emphasis of their research was placed on Indian consumer tastes, product development, and it’s supply chain. The research that McDonalds did helped them execute a strategic plan of entry. This plan is summed up succinctly in their written strategy, “think global, act local.” As a part of their strategy McDonalds set up two joint ventures on a 50:50 basis with local entrepreneurs from Mumbai and Delhi. The West and South regions are managed by Hardcastle Restaurants (Amit Jatia) and the East and North regions are managed by Cannaught Plaza Restaurants (Vikram Bakshi). This localization strategy was imperative to adapting McDonald’s to the distinct Indian culture and allowed them to strengthen the back-end of the supply chain. In implementing the localization strategy they made a conscious effort to hire local people, purchase from local suppliers, architects, contractors, and materials when...
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...Share Swot analysis on McDonalds. McDonalds is an international food outlet preferred by every age group around the world. It is a multinational food outlet, despite this it has to be analyzed to evaluate its strengths, weaknesses, opportunities and the threats. Let’s analyze the outlet using swot analysis. Weakness * The weakness that hits the list is the employee turnover rate. Every year many of their employees are fired out of the restaurant * McDonalds mostly advertises products and food items that targets children. You will notice that bill boards always display the advertisements of Happy Meal and any other deal that is ordered for the kids mainly * Health conscious people seldom complain that they do not provide us with the organic and healthy food. This becomes their weakness when they get in the complaints * They also face quality issue at times. This affects the business as they are running the outlet worldwide, if one franchise gets affected others also get a bad name Strength * McDonalds holds a very strong brand name worldwide * They have large partnerships with other companies that provides them with their desired products, this increases the goodwill of the company * Socially responsible firms earn a good name in the market due to their projects they do to help people, McDonalds is one the most reputed firms who are socially responsible * It is said that McDonalds was the first food outlet to provide its customers with nutritional...
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...on the one hand, standardisation and uniformity and, on the other hand, geographical variations in market conditions and resource availability. Previous research has demonstrated in the case of independent small firms that local geographical conditions influence business strategy. This paper examines whether variations in the local geographical environment, notably in terms of demand and supply side conditions, affect format implementation and whether franchisors permit franchisees to make local adaptations of the format in response to local environmental conditions. The study is based on interviews with 40 UK-based franchisors, all of whom were at the later stages of roll-out or in the consolidation stage of network development. Local variations in the business environment do create a conflict with the need to maintain the uniformity of the franchise format. Adaptation was restricted to peripheral format components. No changes were made to the core format components. Most franchisors recognise that their franchisees are an important source of new innovation. However, implementation of franchisee ideas across the system is found in only a minority of cases. Key words: franchising, geography, adaptation, standardisation Please direct correspondence about this paper to Colin Mason 1. Introduction Business format franchising operates on the principle of ‘cloning’ a standardised tried and tested business format based around a trade name or trademark product...
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...CONCEPTUAL FRAMEWORK............................................................................ 02 3. GLOBALIZATION OF FOOD SYSTEMS IN CONTEXT................................ 03 a. Urbanization.................................................................................................. 03 b. Economics, health and education................................................................. 04 c. Employment................................................................................................... 05 d. Technology and facilitating mechanisms..................................................... 06 4. CHANGES IN DIETARY PATTERNS ............................................................... 07 a. Dietary convergence ..................................................................................... 07 b. Dietary adaptation ....................................................................................... 08 i. Lifestyle changes and adaptation of meal patterns........................... 08 ii. Street foods......................................................................................... 09 iii. Supermarkets ..................................................................................... 09 iv. Fast food industry .............................................................................. 09 v. Role of advertising...
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...Case 3: JOLLIBEE FOODS CORPORATION Student’s Name Professor’s Name Date Question 1 Jollibee’s effective policy, backed by economic and political activities in the country, allowed the company to build its leading position in the Philippines’ fast-food industry. Its “Five Fs” viewpoint (friendliness, a fun atmosphere, flavorful food, flexibility in outfitting to customer desires, and a focus on families) recapitulates its strength over its competitors. McDonald’s company had more money and vastly developed systems, but Jollibee was capable to compete head to head by taking advantage of its most important competitive advantage: Philippine customers preferred Jollibee’s hamburger taste by a wide margin. Takeing on a frontal attack strategy, Jollibee reacted to the impressive operation of Big Mac, Mc Donald’s biggest and best-known sandwich, by launching an even larger burger of its own, referred to as the Champ (Bartlett, Ghoshal, & Birkinshaw, 2003). Jollibee was able to seizure the economic and political disaster in the year 1983 to its advantage. While McDonald’s cut down its investments in the the Philippines, Jollibee profited from the Filipinos’ enthusiastic display of national pride. The company not allowing fortune to sit on its lap, it took full advantage of the opportunity to expand its market by proliferating its core menu with taste-tested provisions of chicken, spaghetti, and a exceptional peach-mango dessert pie, all...
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...Introduction Burger King is the world’s largest flame broiled fast food restaurant chain. As of 2011, Burger King operates restaurants in 12,300 locations serving over 11 million guests daily in 76 countries and territories worldwide (Burger King , 2011). Burger King’s core competency is its unique flame-broiled burgers. This process is difficult to imitate and helps differentiates Burger King from other fast food chains that fry their burgers instead. So much so in fact, no other fast food provider flame broils their burgers. In addition, Burger King allows and encourages consumers to customize the unique flame-broiled burgers with options to their liking. This creates a win-win situation for both Burger King and the consumer. Burger King has the benefit of offering a different product and the consumer benefits by having numerous burger options. Although Burger King has expanded its menu selections, they have remained true to their original flame-broiled burgers. This product gives them an advantage over other fast food chains. Facing intense competition and limited growth opportunities domestically, Burger King hopes strengthen their competitive stance through international expansion. By mid 2009, Burger King was not in any of the following countries: France, India, Nigeria, Pakistan and South Africa. Compare these countries as possible future locations for Burger King. In looking for new countries to enter, Burger King needs to identify countries that fit its ideal demographic...
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...Mcdonalds in India full Assignment Mcdonald is the world famous fast food restaurant.The idea of mcdonald’s was introduced by two brothers Mac (Maurice) and Dick (Richard) Mcdonald in California.their father Patrick Mcdonald in 1937 was having a hot dog cottage called as Airdrome restaurant near the airport.In 1940 the restaurant was renamed as Mcdonald’s Famous Barbeque.In 1940 both brothers came to a conclusion that most of their profit comes from selling hamburger so they made their menu very simple by selling only Hamberger,cheeseburger,soft drinks French fries and apple pie.in 1954 a turning point came in mcdonald’s brother history.Ray kroc a seller of Multimixer milkshake visited mcdonald and he liked the idea of mcdonald.Mcdonalds corporation was build in those times and as a result kroc started expanding their business by opening franchises for mcdonalds.1960 mcdonald’s advertising campaign “look for the golden arches” gave mcdonald’s sale a big boost.1965 mcdonald corporation went public.in 1968 mcdonal open its 1000th restaurant.1974 mcdonalds started their business in UK and Newzealand.in 1980 mcdonalds was facing very big competition from its rival Burger King and Wendy but mcdonald with its innovation was experiencing boost in its sales.in early and mid ninties mcdonalds was having decline in their sales and as a result they start improving their business.taste was improved and some new menu items were introduced.Mcdonald introduced first Kosher Mcdonald in...
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