...career threatening. In spite of the results, it is significant to understand when a decision has to be made and the best way to do it. A rational decision making model provides a structured, sequenced and wise way to decision making and it is based on the logic of optimal choice that would maximize the profit. Using such approach helps to ensure discipline and consistency that is built into decision making process. As the word rational tells us, this approach brings logic and order to decision making. However, in Administrative decision making model people with different levels of motivation have no time to make decisions, therefore they usually try to find short and easy ways to problems. Under the administrative model, decision maker never tries to optimize but instead satisfices and treats objectives as loose constraints. While rational model requires optimization, choosing the alternative with highest value, satisficing, administrative model, requires finding the first option with an acceptable value. For example, let`s assume that I had a house I wanted to sell. If I listed my house for $100,000 and had 10 offers for it, I could choose with either method. With rational method, I would determine which offer had the highest value in terms of conditions and price. On the other hand, with Administrative model, I would accept the first offer that met my lowest expectation. Administrative strategy may lead to a reduced decision quality, but saves time and effort....
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...WR 222-005 17 May 2015 What is McDonaldization Do you like fast food such as hamburgers and french fries? I like cheese burger pretty much, it not just as a banner of fast food and also is a part of the culture. With the developing of the fast food industry, the culture of fast food affects more and more people even causes some social phenomenons. For example, if people think about the symbolic culture of America, I will choose hamburgers. Because, the fast food industry has been rooted in international culture through global economic integration. Thanks to George Ritzer who is an American sociologist, professor, and author who studies globalization, metatheory, patterns of consumption, and modern and postmodern social theory. He creates a new definition, McDonaldization which draws upon Max Weber's idea of rationalization through the lens of the fast food industry. This definition helps people gain a better understanding of how fast food industry affects the whole society. McDonaldization is an academic term that coined by George Ritzer to describe a unique sociological phenomenon in his book The McDonaldization of Society (1993). McDonaldization means a process that makes cooking group or catering enterprise focus on efficiency, calculability, predictability and control shape organization. This improving trend will make fast food services transform mass production. It solves the most important problem that how to realize industrial globalization. In my mind, McDonaldization...
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...Analysis: 5 3.0 Gaps Model: 8 4.0 Apostle Model: 10 5.0 Service profit chain model: 11 6.0 Recommendation: 12 7.0 Conclusion: 12 8.0 References: 13 9.0 Appendix: 15 Executive Summary: This report provides an overall portfolio of business activities of MacDonald’s Corporation which considered being the world leading food retailer. This report made up of six main parts where the introduction includes the history of the company as well as a brief explanation about the case study. The situational analysis (TOWS) is about the company internal strengths and weaknesses, and the external opportunities and threats as well as the strategies. In addition, the main parts include the gap model where it shows the gaps in the services that the company provides to their customers and the strategies that may aid them to minimize or close those gaps. Furthermore, Apostle Model is one of the main parts in this report where it shows the types of customers according to their loyalty to the company. As well as, the service profit chain where it shows the relationship between profitability, customer loyalty, and employees’ satisfaction. In addition, recommendation is provided in this report which may aid the company to retain its customers and make them loyal to their brand. 1.0 Introduction: MacDonald’s is considered to be the world’s leading food service retailer, it was found by the two brothers Richard and Maurice MacDonald. They started their business with $5,000 loan from...
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...Learning) Module : Strategic Management Coursework Title : Examining Strategic Management for Chicken Delight Ltd Date Of Submission: 23 April 2015 Lecturer: Mr. Narain Presented by: Ramdin Devesananda INTRODUCTION It is the beginning of a new era that the fast food industry has gradually breakthrough the Mauritius lifestyle. Due to the globalisation process, many fast food franchises are now available in Mauritius. Whether these fast foods have revolutionised Mauritius, today these products form part of our lifestyle and culture. People rely on their convenience to enhance their lives and productivity. But in the fast and increasing competitive business environment of today, the right marketing approach is necessary to compete with competitors. The ability to develop effective marketing strategy which enable the firm to become more responsive and adaptable to the market will perhaps more than ever before, differentiate the winners from the losers The rational of developing marketing strategies is to respond to the increasing high demand in fast food and to eventually increase the market share of chicken Delight Ltd. The answer lies in the fact that Chicken Delight Ltd franchise is in the fast food industry, selling fried chicken, chips and burgers, and its main and direct competitor is Kentucky Fried Chicken. Chicken Delight Ltd is relatively new on the Mauritian market and Kentucky Fried Chicken has already position itself in the mind of customers since it (KFC)...
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...Jessica Hansen, Leslie Hansen, Nuradin Ahmed, Shane Ottmar Case Study MGT 499 07/27/2014 MGT 499 Jessica Hansen, Leslie Hansen, Nuradin Ahmed, Shane Ottmar Case Study MGT 499 07/27/2014 MGT 499 Table of Contents Situational Analysis Page 2 History Fast Casual Food Industry Strategy Page 3 Chipotle Value Chain Competitive Landscape Page 4 SWOT Analysis Page 6 Conclusions of Chipotle’s situation Page 8 General Environment Analysis (General & Direct Environments) Identification of Strategic Issues Page 10 Evaluation and Examining strategic alternatives ...
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...do some business analysts say that In-N-Out's business model is "counter intuitive"? In-N-Out’s business model is considered to be counter intuitive as it is opposite to the commonly found business model in the fast-food industry. Firstly, all the stores are privately owned by the promoter family only unlike other chains which use franchise based model to expand their business. Such conservative and slow expansion policy as adopted by In-N-Out is quite unique in its industry which usually focuses on rapidly expanding all across the country and abroad. This is why in spite of being in business since 1948; the numbers of stores of In-N-Out are far lesser than its peers like Burger King. McDonalds, Wendy’s, etc. Another aspect of In-N-Out which is unique is its menu and ambience offerings, which are same since decades. While normal fast-food chains have decided to improvise and adapt with changing times, In-N-Out has focused on its original burgers and fries along with same old theme of styling and furniture. Moreover, contrary to other fast food chains, In-N-Out does not focus too much on advertising and sales promotion, and rather garners its customers from word of mouth publicity. Also, another unique aspect of In-N-Out’s business model is the fact that the employees are treated very well and paid handsomely which is certainly not the case in other fast food joints, which are hampered by high attrition rate problems. Hence, we can see that In-N-Out’s business model is totally...
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...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, 1992) said “A franchise is created when one party, the franchisor, allows another, the franchisee, to use his trade name in operating a satellite business in return for fees”. Mendelsohn and Acheson 1989 go on to add that the “franchisor allows the franchisee make use of an entire package, comprising all the elements necessary to establish a previously untrained...
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...of the business and its market growth. As we all know that it's a world of globalization and competition and therefore every company has to make certain plans and strategies in order to tackle the problems they face due to the competition in the local and global markets. Every company has to make effective strategies and plans in order to tackle the internal and the external problems faced by the company. Internal problems can be linked with any internal department or process such as HR or Pay role or machinery etc and the external challenges can be competition, changing technologies etc. Globalization on one hand gives benefits to the company to explore new markets and increase its customers in order to make more profits but it also poses different problems and challenges which the company has to tackle to continue its success in the new markets. Company has to design proper strategic plan to point out and tackle the problems curbing the success of the business. Either it's a local or a global market company always needs an efficient strategy to tackle the issues curbing its success in the market. This assignment will discuss the various strategic issues of concern for the McDonalds and plans it has designed to tackle these problems. We will be using different strategic models such as Product Life Cycle, Porter's Five Forces model and BCG matrix in order to understand the issues of strategic concern for the company and how to tackle them for the success of its business. INTRODUCTION- ...
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...Service classification Taking nature of transport service into consideration of a service classification model, the Service Process Matrix model by Schmenner (1986) is considered to be the best in capturing service features and clearly describe a position of Inter-city train services in a service industry. According to the model, train services operations are classified in a high degree of capital investment relative to personnel employment. It also demonstrates less customer interaction along with providing a service standardisation rather than customsation. For example, all inter-city train service providers, in accordance with airline services, offer customers similar services and basic infrastructures such as train capacity, facilities and security; they are described in the nature of Service factory. Whilst fast food services provide less customised services but there are more labour intensity in the service operation, which classified in Mass service position. Strategic position tendency is moving towards Service factory in order to improve positive relation between labour and customisation as low-low relationship. Even the train services are standing in the position; train service providers keep improving their service system in a lower direct-interaction with customers. They tend to package automated service process with online system. Auto ticket machine, online booking, train timetable available on website are good examples to illustrate this idea. Airlines are also...
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...House of Kebab Contents 1 Introduction 2 1.1 Company Summary 2 1.2 Company Ownership 3 2 Five Forces Model and Analysis 4 2.1 Barriers To Entry 5 2.2 Supplier Power 8 2.3 Buyer Power 10 2.4 Threat of Substitutes 11 2.4.1 The Threat of Substitutes are High 11 2.5 Rivalry among Existing Firms 12 3 Conclusion 17 INTRODUCTION House of Kebab is a locally owned fast food outlet that will be positioned as an international franchise through our creative approach to the company's image and detail presentation. House of Kebab will provide a combination of excellent food at value pricing, with fun packaging and atmosphere. House of Kebab is the answer to an increasing demand for kebab and shawarma fast food. In today's highly competitive environment, it is becoming increasingly difficult to differentiate one fast food outlet from another. Our main priority is to establish one outlet in Kuala Lumpur, preferably in one of prominent housing estate. Later, our effort will be a further development of more retail outlets in the surrounding area. House of Kebab will entice youngsters to bring their friends and family with our innovative environment and our main focus will be serving high-quality food at a great value. COMPANY SUMMARY House of kebab sells specially made shawarma sandwich-like wrap usually composed of shaved lamb, goat, chicken, turkey, beef, or a mixture of meats and kebab which consist of thin slices cut from a cylindrical block of minced...
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...analysis - The fast-food industry is highly influenced by governmental policies, sales rates are grooving even during the recession. The changing lifestyles of consumers to a healthier and quicker one can be seen as both- a threat and opportunity. As a threat- due to a healthier lifestyle McDonald’s as well as other fast food restaurants can lose many consumers. As an opportunity- as people are getting more and more busy due to their work, they do not have enough time to make meals at home, and they choose to eat at fast food restaurants. McDonald’s have good quality of service and promotions, which is also one of the reasons of successful marketing. The main strength is of course their huge brand they built up. On the other hand the strongest weakness is the perception of the customers that look at McDonald’s as a very unhealthy place to eat. Competitive situation – The competitive situation within the fast food industry is very hard. McDonald’s is the leader in this industry, but still it has to deal with big rivalry. There are many other restaurants and other substitute products that consumers can choose. A big variety of the “other possibilities what and where to eat” makes strong buyers power. While in the global market entry barriers are high (due to high expenses to establish a big company), in a more local market, these barriers are much lower because it does not require big capital to establish a small business (for example- pizzerias as a family business). The biggest...
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...1.0 The business concept: The problem and solution Traditionally associated with pizza and hamburgers, the fast food industry has undergone a transformation over the past decade. The changes have been led by increasing social awareness about the importance of a healthy diet, which has made consumers rethink their fast food eating habits. In addition, Obesity rates have been increasing over recent decades in all industrialised countries, Australia having the dubious honour of being ranked as one of the fattest nations in the developed world. In 2011 to 2012, approximately 70% of males were overweight and 56% of females (ABS, 2013). Whilst obesity is ostensibly an individual disease, it imposes significant costs on society. Moreover, one-quarter of all Australian children, who aged 5-17, were overweight or obese in 2007 to 2008 (ABS, 2013). Consequently, industry retailers have responded by broadening the range of fast food options on offer and introducing new products to capture this expanding market. Trends in real household disposable incomes, consumer sentiment, competition from convenience stores and supermarkets and growth in the health consciousness of consumers have also driven demand for fast food. Most of these problems are satisfied by a few existing services and products such as Subway and Liten’Easy, and McDonald’s and Hungry Jack’s have tried to innovate their products to become healthier foods. However, there is lack of choices of products and services...
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...............................................9 4. Positioning..................................................................................................................10 5. Conclusion..................................................................................................................14 References........................................................................................................................15 1. INTRODUCTION OF KFC KFC Corporation, based in Louisville – Kentucky, is the internationally most famous restaurant chain and franchise specialising in chicken. It is currently owned by Yum! Brands, Inc., the largest group company in restaurant business in the world with more than 36,000 branches across the globe. On a daily basis, roughly 12 million customers are served at more than 18,000 KFC stores across 120 nations and territories. As of December 2012, there are 4,600 KFC outlets in the United States, 4,200...
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...Choong-Yil Kim Submission Title: McDonald’s Business Model [Use this document as a template by filling in your answers to the business model analysis questions below each underlined heading.] A VALUE-CREATION MODEL 1. Who are the customers and what is the product/service offering? There are two types of customers: - Direct customer: franchisees and general customers that use McDonald’s own stores. - Indirect customer: customers who look for fast & competitive price food with appropriate quality. Products: Fast Foods & Drinks for general customer Service: Company Brand Name & Ads, Standardized process to deliver fast food with low cost and consistent quality with high school kids who are paid minimum wage for franchisees. 2. How does the offering create differentiated value for them? Operational Excellence to be able to make low cost, consistent quality and speed 3. What is the value chain? What parts is the business in? McDonald dictates full of value chain from farm to their restaurants. They even control entire process of each value chain with McDonald’s operation system. 4. What is the go-to-market strategy? Speaking of McDonald corp. instead of each McDonald store, its GTM strategy is indirect channel strategy through franchisees with strong advertising. B PROFIT MODEL 1. What are the sources of revenue? For B2C (general customer), it would be transactional...
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...Murrell, the founder and chief executive officer of Five Guys Burgers and Fries, along with his wife and five sons, have acquired such balance and have become the fastest growing chain in the food industry, according to the research firm, Technomic (Boone & Kurtz, 2012). Just this month, the booming chain opened a new location that seats 300 people in London, and anticipates four more stores in the U.K. by 2014 (Weise, 2011). What is truly amazing is that such a large family can sustain such balance while running a business together. Perhaps it started with a simple, balanced business philosophy and consistent values. Philosophy and Values The matriarch of Five Guys Burgers and Fries, Jerry Murrell, realized that the only way to compete with the huge, established fast food chains like McDonald’s and Burger King was to concentrate all of their efforts and money on a quality product and customer service (Wiley Plus, 2012). The business plan of Five Guys Burgers and Fries was balanced and easy to stick to. “Sell a really good, juicy burger on a fresh bun. Make perfect fries. Do not cut corners,” (Wiley Plus, 2012). Murrell continues to stick with the plan by keeping it simple as he aligns his philosophy with that of JW Marriott. “Anyone can make money in the food business as long as you have a good...
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