...Teaching Note: Case 14 – McDonald’s Case Objectives 1. To investigate the key external environmental issues that can affect a firm’s strategy. 2. To examine how a reevaluation of strategy involves assessment of internal activities and resources. 3. To discuss the decisions and actions that a firm has to undertake to sustain a competitive advantage, especially when pursuing growth. See the table below to determine where to use this case: |Chapter Use |Key Concepts |Additional Readings or Exercises | |1: Strategy Concept |Strategic management; vision, mission, strategic |Visit McDonald’s website to evaluate its mission.| | |objectives |See an embedded video of a 1967 McDonald’s TV | | | |commercial. | |2: External Environment |External environmental forces; Porter’s five forces |Visit investor commentary on MCD, view embedded | | |model |video about current coffee strategy; read about | | | |healthy foods controversy, watch video re | | | ...
Words: 4915 - Pages: 20
...to $10 billion each in sales and 6% to 7% of the market. The three YUM! Brands restaurants in the top 20 (Taco Bell, Pizza Hut, and KFC) ranked sixth, seventh, and ninth individually. Together their sales totaled $16.7 billion, or 12% of the market, and placed YUM! Brands in second place behind McDonald’s. The restaurants in our analysis represent several different segments of the fast food market including burgers (McDonald’s, Burger King, Wendy’s, Sonic, and Dairy Queen), sandwiches (Subway), snacks (Starbucks and Dunkin’ Donuts), Mexican food (Taco Bell), pizza (Pizza Hut and Domino’s), and chicken (KFC).4 The number of U.S. locations of these twelve restaurants totaled almost 100,000 and ranged from approximately 3,500 Sonic restaurants to almost 24,000 Subway restaurants. These twelve restaurants comprised 41% of locations for the top 50 restaurants. Fast food segment Table 2 presents 2008 and 2009 sales data for the twenty largest fast food restaurants in the United States and highlights the twelve restaurants included in our full analysis. In addition to the ten restaurants with the highest sales in 2008 and 2009, we have also included Domino’s and Dairy Queen in our analysis due to the large number of TV advertisements seen by children for these restaurants. In 2008, Domino’s ranked ninth in the amount of TV advertising seen by children, Arby’s ranked tenth...
Words: 52447 - Pages: 210
...About | Contact | Jobs | [pic] • Lesson Store • Buy Video • Exercise Store • Powerpoint [pic][pic] Marketing Teacher: Home / The Marketing Environment The Marketing Environment [pic][pic][pic][pic][pic][pic][pic][pic] [pic][pic][pic][pic]The Marketing Environment What is the marketing environment? The marketing environment surrounds and impacts upon the organization. There are three key perspectives on the marketing environment, namely the 'macro-environment,' the 'micro-environment' and the 'internal environment'. [pic][pic][pic][pic][pic] The micro-environment This environment influences the organization directly. It includes suppliers that deal directly or indirectly, consumers and customers, and other local stakeholders. Micro tends to suggest small, but this can be misleading. In this context, micro describes the relationship between firms and the driving forces that control this relationship. It is a more local relationship, and the firm may exercise a degree of influence. The macro-environment This includes all factors that can influence and organization, but that are out of their direct control. A company does not generally influence any laws (although it is accepted that they could lobby or be part of a trade organization). It is continuously changing, and the company needs to be flexible to adapt. There may be aggressive competition and rivalry in a market. Globalization means that there is always the threat of substitute...
Words: 10461 - Pages: 42
...Executive Summary This report contains the strategic audit of McDonald’s. The instruments use the external and internal aspects to analysis the opportunities, threats, strengths and weaknesses (SWOT analysis and SWOT matrix). Analysis of the company's position has been undertaken different technology models have also been applied in to undertake the analysis of the technology practices in the company. In the end suggestions and recommendations are presented in to improve the competitive position of the company. The analysis of external environment includes three threats and three opportunities. The opportunities included global expansion, the trend of healthier eating, and the growing market for coffee drinks. The three threats came from social activists, the large amount of competition, and the unhealthy food image in the eyes of the public. The analysis of internal environment includes three strengths, which are which are global expansion, specializing training and efficiency of the top management; two weaknesses which are exploited workers and damaging the environment. McDonald’s corporation had four strategies include expand the coffee market domestically, as well as internationally; develop more eco-friendly methods of operating; develop a method to choose where to locate new stores; expand the healthier food options on their menu. Introduction McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers...
Words: 3454 - Pages: 14
...Chipotle M Marketing Plan Marketing 5341 Professor Besio December 9th, 2014 The 5 Cs Company Chipotle is a Mexican food chain dedicated to serving high quality “fast” food. The company was founded by Steve Ells in Denver Colorado in 1993, and has grown to over 1,000 stores by 2011. The initial growth of Chipotle was mainly attributed to McDonald’s investment in the company in 1999 for a 90% stake. With the involvement of McDonald’s, Chipotle was able to gain access to not only capital, but to the parent companies’ suppliers through their large distribution system. By 2003, Chipotle had opened 300 stores throughout the country, and had established a loyal customer base. Today, Chipotle remains dedicated to its vision of “Food with Integrity.” This represents their “commitment to finding the very best ingredients with respect for the animals, the environment, and the farmers.” In addition to promoting its high quality, fresh ingredients, Chipotle offers consumers a customizable menu with an open kitchen atmosphere and assembly line food preparation. This allows customers to obtain high quality food quickly and efficiently. Customers Chipotle has done an impeccable job of building customer loyalty. The company has gained this following mainly by word of mouth, considering the company has a small advertising budget of only $4.5 million, less than 1% of its revenue, as of 2011. Considering this small advertising expenditure, it is impressive that the company...
Words: 2426 - Pages: 10
...Abstract Brands rushed into social media, viewing social networks, video sharing, online communities, and microblogging sites as the panacea to diminishing returns for traditional brand building routes. But as more branding activity moves to the Web, marketers are confronted with the stark realization that social media was made for people, not for brands. In this article, we explore the emergent cultural landscape of open source branding, and identify marketing strategies directed at the hunt for consumer engagement on the People’s Web. These strategies present a paradox, for to gain coveted resonance, the brand must relinquish control. We discuss how Webbased power struggles between marketers and consumer brand authors challenge accepted branding truths and paradigms: where short-term brands can trump longterm icons; where marketing looks more like public relations; where brand building gives way to brand protection; and brand value is driven by risk, not returns. # 2011 Kelley School of Business, Indiana University. All rights reserved. 1. The party crashers: Marketers and the Social Web Brands today claim hundreds of thousands of Facebook friends, Twitter followers, online community members, and YouTube fans; yet, it is a lonely, scary time to be a brand manager. Despite marketers’ desires to leverage Web 2.0 technologies to their advantage, a stark truth presents itself: the Web was created not to sell branded products, but to link people together in collective conversational...
Words: 12470 - Pages: 50
...Business Horizons (2011) 54, 193—207 www.elsevier.com/locate/bushor The uninvited brand Susan Fournier a,*, Jill Avery b a b Boston University School of Management, 595 Commonwealth Avenue, Boston, MA 02215, U.S.A. Simmons School of Management, 300 The Fenway, M-336, Boston, MA 02115, U.S.A. KEYWORDS Branding; Brand management; Social media; Web 2.0; Co-creation Abstract Brands rushed into social media, viewing social networks, video sharing, online communities, and microblogging sites as the panacea to diminishing returns for traditional brand building routes. But as more branding activity moves to the Web, marketers are confronted with the stark realization that social media was made for people, not for brands. In this article, we explore the emergent cultural landscape of open source branding, and identify marketing strategies directed at the hunt for consumer engagement on the People’s Web. These strategies present a paradox, for to gain coveted resonance, the brand must relinquish control. We discuss how Webbased power struggles between marketers and consumer brand authors challenge accepted branding truths and paradigms: where short-term brands can trump longterm icons; where marketing looks more like public relations; where brand building gives way to brand protection; and brand value is driven by risk, not returns. # 2011 Kelley School of Business, Indiana University. All rights reserved. 1. The party crashers: Marketers and the Social Web Brands...
Words: 12407 - Pages: 50
...of Dhaka - the capital city of Bangladesh over last decade. The reasons could be attributed by the increase of awareness, growth of education, development of information technology, and expansion of television and print media in Bangladesh. This paper aims at identifying the preference factors of fast food consumers living in Dhaka city. This study was conducted among the university students who are used to take fast food at their leisure time. To conduct the study, a total of 250 respondents were interviewed with a structured questionnaire. Both descriptive and inferential statistics were used in analyzing the data. Multivariate analysis like factor analysis was performed to identify the preference factors of the fast food consumer. Multiple regressions were conducted to identify the relationship between the factors identified through factor analysis and the overall measure...
Words: 10438 - Pages: 42
...Background For over a century, Coca-Cola and Pepsi- Cola vied for “throat share” of the world’s beverage market. In a “ carefully-waged competitive struggle”, from 1975 to 1995, both Coke and Pepsi achieved annual growth of around 10%; this was largely attributed to the effectiveness of their marketing efforts. Analyzing the environment and understanding the market Instead of engaging in a “head-on confrontation” and getting involved in the largely dreaded price wars that promise to inflict much impact on the financials of both parties, both companies would always select customers that it can serve well and profitably. For instance, Pepsi “[is] going after the younger consumer… where the profits are”. This is an illustration of concentrated marketing, which has been Pepsi’s strategy since 1970s. It allowed Pepsi to gain a better foothold against Coca-Cola, the market giant, and eventually grew into a stronger competitor. Till now, Pepsi still practices demographic segmentation where it divides the market into smaller groups of customers in accordance to their age. They then targeted the niche group, youths or Generation X, whom Pepsi has always believe that it is the group with better segment structural attractiveness. Teenagers have distinct and unique behaviors such as “purchasing a single-serve product at a convenience store like 7-11”, thus when Pepsi offers such convenience services, it has created a loyal base of young customer who are the largest consumer market...
Words: 2205 - Pages: 9
...| 2015 | | [Analyzing Organization] | | Contents Introduction: 2 What is Organizational Behavior? 3 Paradigms 3 Functionalist paradigm 4 Interpretive paradigm 4 Radical humanist paradigm 4 Methodology of data gathering 5 Background information about the organization: 5 Analyzing data with literature review 6 Definition of Culture and Culture in McDonald 6 McDonald's development in China 7 Relating Schein’s model with McDonald 8 Levels of culture: 8 Artefacts: 8 Values: 9 Basic assumptions: 10 Conclusion: 10 References: 12 Introduction: An organization or company can be defined as the developed social elements by the humans in order to serve some kind of purpose. Generally the organization is consisting of an individual or a group of people purposely systemized or organized to achieve a common and an overall goal or set of goals. Usually organizations range in size from one person to thousands. Almost every organization has a structure of management that regulates relationships between the members and different activities and authority , responsibilities and assigning role to carry out different tasks within and outside of organization. An Organization is social arrangements for achieving controlled performance in pursuit of collective goals (According to Buchanan & Huczynski (1997). There are many vital aspects to keep in consideration about the goal of the business organization. These features are categorical (recognized...
Words: 3201 - Pages: 13
...Alanna Haynes Wednesday December 14th 2011 Chew on This Media Analysis How has fast food changed society? MLA: Super Size Me. Dir. Morgan Spurlock. Perf. Morgan S.. Disney, 2004. DVD. Type: Documentary Précis: Super Size Me is a 2004 American documentary film directed by and starring Morgan Spurlock. The film documents this lifestyle's drastic effect on Spurlock's physical and psychological well-being, and explores the fast food industry's corporate influence, including how it encourages poor nutrition for its own profit. Morgan was to eat at McDonald’s three times a day, and consume each item on the menu at least once for 30 days. As a result Morgan gained 24½ lbs. (11.1 kg), a 13% body mass increase, a cholesterol level of 230, and experienced mood swings, sexual dysfunction, and fat accumulation in his liver. Morgan risked his life to expose the secrets of fast food companies, and in particular McDonald’s to help educate the public. Examination of Bias: In the documentary, multiple forms of bias were exhibited, clearly establishing an anti-fast food campaign. Had the documentary not be biased, Morgan would’ve made some kind of an effort to get a hold of information that presented both sides of the story. However, without exception every person interviewed in the documentary had said something along the lines of fast food is bad for you, that it is harmful to your health, and that it will eventually...
Words: 2373 - Pages: 10
...approach involving the family, school, peer group, government and the society as a whole. Introduction Obesity has reached epidemic proportions globally and its prevalence has doubled in the last two decades (1). Over the last 5 years, most developing countries have reported prevalence rates of obesity (inclusive of overweight) > 15% in children and adolescents aged 5–19 year (2–4). Childhood obesity is increasing at an alarming pace in India, giving rise to adult diseases in youth, like high blood pressure, type 2 diabetes mellitus (T2DM), heart disease and osteoporosis. Junk food kills bacteria that protect against obesity, heart disease and cancer, study finds Strong link between good bacteria, diet and overall health discovered after researchers lived on McDonald's meals for 10 days straight . Eating junk food kills stomach bacteria which protect against obesity, diabetes, cancer, heart...
Words: 3784 - Pages: 16
...Introduction Two determined men by the names of James McLamore and David Edgerton had the same vision, to offer citizens great tasting, inexpensive food that would be served in a clean and welcoming environment. These entrepreneurs had already gained experience in the restaurant business in the past. In 1954 the first Burger King was open to the public in Miami, Florida (www.burgerking.ca/en/1122/index.php). By developing the first Burger King, James McLamore and David Edgerton had given the community a comfortable environment to eat inside of the restaurant, because the restaurant was the first fast food business to offer people the option of dining in the restaurant or going to the drive thru(www.burgerking.ca). With McDonalds being the largest fast food chain in the world, Burger King rates as the second largest hamburger fast food restaurant in the world, with Wendy’s following right behind it (Armstrong/Kotler, 450). Burger King came to be the second largest hamburger fast food chain in the world with a total amount of sales at $7.9 billion in the year of 2003, falling behind McDonalds with their sales being $22.1 billion (Armstrong/Kotler, 450). Burger King’s most popular product, the Original Whopper Sandwich was introduced to the world in 1957. The Whopper became a huge success and is still a world known sandwich that has a perfect fire-grilled taste (www.burgerking.ca/en/1121/index.php). This tasty hamburger was created to satisfy their customer...
Words: 2588 - Pages: 11
...CASE STUDIES Burger King case study Targeting the Superfan as a means of retaining growth in the fast food market Reference Code: CSCM0246 Publication Date: April 2009 DATAMONITOR VIEW CATALYST After years of poor sales, Burger King has turned its business around and now enjoys healthy business growth. This case study looks at how the company did this by refocusing its marketing towards the Superfan, namely young adult males who have a penchant for fast food. SUMMARY • Diageo was accused of neglecting Burger King under its ownership, letting the brand fall off the radar at a time when fast food in general was reporting favorable growth. The fast food chain's fortunes began to change after it was sold to a private equity triumvirate, which set about investing in promoting the business to the devoted fast food eater. This focus was a success, leading Burger King to gain 'cool status' in many peoples' eyes and to achieve strong growth. • Burger King's focus since being sold has been in targeting the Superfan, that is the 18–35 year old male who enjoys fast food. Company marketing efforts have focused on appealing to this consumer type, using both traditional and new media as a means to gain their attention. • Burger King's marketing has often been controversial, with two 2008 efforts standing out. The Whopper Virgins documentary, in which members of remote communities were given burgers to try for the first time, was deemed offensive and patronizing, while a Facebook...
Words: 4416 - Pages: 18
...2/15/2015 2/15/2015 Mikee Lyka C. Menes 3-Marketing Management Mikee Lyka C. Menes 3-Marketing Management Total Quality Management (Companies) Total Quality Management (Companies) * Total Quality Management of McDonalds Introduction The father of the quality movement which is W. Edwards Deming introduced the concept of management named Total Quality Management (TQM). This approach management originated in Japanese Industry in the 1950’s and became popular in the West since early 1980’s. TQM is a system for a customer focused organization in continual improvement that involves all employees of all aspects of the organization. Employee involvement, focus on the customer, benchmarking, and continuous improvement are the four significant elements of TQM. Besides, there are some management techniques which involve in the implementation of TQM, such as quality circles, Six Sigma, reduced cycle time and continuous improvement Employee involvement is creating an environment for employees as to have impact on decisions making and actions which can affect their jobs. Focus on the customer Customer is the only element who determine the level of quality and the worthwhile level from all the efforts which organization do to foster quality improvement, training employees, integrating quality into processes management. Benchmarking Benchmarking is the process of comparing one's business processes and performance to industry as to learn and practice from other industry for...
Words: 11942 - Pages: 48
