...Introduction Yum! is one of the world’s leading fast food service provider. KFC, which is one of its subsidiaries, not only specializes in fried chicken but is also the leading brand for it. KFC China, since its inception, has been growing at a very fast pace. It has taken astute strategic steps to establish itself in China. It had various key competitive advantages which permitted it to expand to more than 4000 outlets in China (Bell and Shelman, 2011). The company hired a managerial team from Taiwan which had an experience of more than 15 years in the fast food industry (Cho, 2009). It introduced a new concept of high-end, modern and western fast food in China. People considered KFC to be a nice place where they could take their dates. The Chinese love fried chicken, which is probably one of key reasons it has a competitive advantage over the beef focused MacDonald’s, with a ratio of 2:1 unprecedented anywhere else in the world (Cho, 2009). It also catered to local tastes by localizing its menu to suit the Chinese and acquired East drawing- a chain which serves local food. KFC china is also known for its frequent product releases. KFC also dealt with China’s dynamic and rapidly changing business environment by establishing its own supply chain and owning most of the chains instead of giving franchisees like it operates in the US. This was mainly to protect itself from the problems it could face by getting off on the wrong foot with the local partners. (Bell and Shelman,...
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...of the project. At this early stage also, most decisions in the project will be made by the founder himself but may also be assisted by the two financial partners. In addition, it is also the responsibility of the founder to as well monitor or manage all the business activities within the project reason being that the project is still at its early stages and therefore may not require many people in the management; in other words, it only requires a very simple kind of organization. However, in the near future whereby the project is expected to pick up and grow drastically, the management is expected to change by especially having more managers who will manage various units in the project. It is also expected in the future that as the project grows the management structure will be divided into two to include, the executive management and the store management. Executive management will be majorly involved in decisions and financial matters associated with the project while the store management level will be expected to work in ensuring that customers are treated in the right way as well as making sure that all requirements for the project are available. Executive Summary Outline I. Type of problem A. The fast food...
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...ealth concerns lead to a substantial slow down by fast food chain companies in the 1990’s. Health campaigns bombarded the media claiming that obesity was the result of excessive fast food consumption. Fear of heart conditions, damaged liver and other health conditions, resulted in lower consumption of fast food, which proved to be a major threat to fast food sellers, particularly large chains like Burger King who had thousands of outlets spread across the globe reflecting high investments in the franchise. This major setback also led to a considerable drop in value meals which had been introduced to beat stiff competition from other fast food suppliers. Such favourable pricing strategies encouraged consumers to opt for the ‘added value’ meal options, contributing further to health problems including obesity. During this period, “Obesity was believed to cause more deaths than smoking.” (Case Study:4) Apart from consuming high levels of fast food, people hardly engaged in physical due to their working commitments and hectic lifestyles which were the main reasons for drawing crowds to fast food consumption. Had fast food companies not have catered for such a shift in demand, they would have probably been driven out of the market particularly since people have become more health conscious due to higher exposure to media and the internet – the latter being a super highway of information. The emerging popularity of certain diets including the Atkins and the South Beach diets,...
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...on and on. So far, though, public-health interventions have failed spectacularly. But why? Although the rise of obesity is often described as an effect of specific individual and lifestyle choices, the problem is largely a byproduct of deeper political and economic changes in society. In a recent study published in the Bulletin of the World Health Organization, a group of researchers, led by myself, found that, when compared with more protected economies, countries adopting more aggressive deregulation policies experienced faster increases in body mass index and consumption of fast food and soft drinks. After taking into account alternative explanations and competing risk factors, we concluded unequivocally that the freer an economy is, the fatter its people are. How does an unregulated market relate to the rise of obesity? Through market concentration and the rise of food oligopolies that flood markets with cheap, unhealthy, ultra-processed products, in addition to fast food and soft drinks. It may seem paradoxical, but unfettered market competition tends to naturally degenerate into market oligopolies. This happens because, in a market without rules, the winners of a competition find it more profitable and rational to suppress the very competition that made them win. This often translates into a gradual decline of smaller economic actors, which are pushed out of business or...
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...Pizza is to be the best pizza delivery company in the world. Domino’s offers the finest customer services. So, Domino’s pizza has a passion to serve delicious pizzas. Vision: Domino’s Pizza wants to be the pizza first choice in the world that is says to detain half of pizza’s market. They aim to open 50 new stores each year. So today, they are working towards their goal of opening 1,000 stores by 2017. Objectives: Domino’s Pizza plc. Recognises that its day to day operations impact the environment. The company is committed to delivering great tasting, hot pizzas and will aim for continuous improvement in all aspects of its environment performance, while continuing to deliver a great service to its customers. Key to success: Every business has to set goals and to achieve them. There are some main...
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...Burger Bots: Burger Making Machines That Will Revolutionize the Fast Food Industry Discussing the loss of human jobs to machines, Andrew McAfee, co-author of the book Race against the Machine, says “we ain’t seen nothing yet.” In the United States, the fast food industry has one of the highest employee turnover rates at 50 percent, costing the industry about $3.4 billion in recruiting and training. Many chains are already looking for ingenious ways to take humans out of the picture, threatening workers in an industry that employs 2.4 million wait staffers, nearly 3 million cooks and food preparers and many of the United States’ 3.3 million cashiers. Automation in the fast food industry has already started. In Europe, McDonald’s “hired” 7,000 touch-screen kiosks to handle cashiering duties, taking orders and handling payments. The use of touch screens at drive-thrus will also soon be available. While the full automation of fast-food cashiers isn’t here just yet, researchers and those in the business say it’s only a matter of time before ordering and payment become primarily self-service. In this essay I would like to discuss another type of automation, a technology which I believe will further revolutionize and potentially result in a significant number of jobs lost in the fast food industry, the burger making robot or burger bot. The burger bot doesn’t just flip the beef patties; it actually makes the burgers from start to finish. It may sound ludicrous at first, but...
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...Chipotle Mexican Grill Within the fast casual segment, there are certain external trends and forces that the industry must address. Some of these trends and forces can lend themselves to being opportunistic in nature; however there are some that can threaten the well-being of the restaurant. The success of a company ultimately depends upon how well it can use its strengths to take advantage of external trends. By utilizing an External Factor Evaluation Matrix (EFE) a company’s chief strategist can analyze and determine crucial external opportunities and threats important to the future of their organization. Another growing trend that the fast casual industry can capitalize on is the growing health trends among consumers. More and more people are becoming aware of the foods that they consume and are making strides to eat healthier. In fact, according to a recent survey by the National Restaurant Association, 19% of all customers are actively seeking out healthy alternatives when dining out. This is a direct result of obesity rates constantly rising in the United States. Furthermore, several restaurants competing in the fast casual sector have made conscious efforts to offer rather healthy meals to their customers. Certainly, realizing that customers are seeking out healthy options when dining out will prompt the industry to enjoy much success in the coming years. A third trend is the expanding interest in, and availability of, organic food ingredients. Several restaurant chains...
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...The History and Effects of Two Fast Food Restaurants By: Tim Forsthoefel COM/155 University Composition and Communication I Aimee Szilagyi 06/20/2013 The dangers that fast food restaurants are posing on our world’s nations are staggering and a change needs to be made to secure a healthy future for our children. Wendy’s and Burger King are two major organizations in the fast food industry that have influenced the health and well-being of people all over the world. Wendy's and Burger King share similar characteristics, but the differences between them are vast because they became world renowned through different paths and offer different products. In 1953, with the invention of a machine called the “Insta-broiler”, Keith J Kramer and Matthew Burns opened up a company named “Insta-Burger King” in Jacksonville, Florida. Three years later a man named Dave Thomas, the founder of Wendy’s Old Fashioned Hamburgers got his first start in the fast food industry, when he worked for the Kentucky Fried Chicken company. In 1959 the Insta-Burger King company began to struggle, and was sold to James McLamore and David R. Edgerton. These two men decided that the franchise needed some reconstructing and the first thing they did was change the name to Burger King. McLamore and Edgerton had success for eight years as independent owners...
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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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...Nottingham University Business School MBA Programme Business Economics (N14M79) The Perspective View of PESTEL Analysis for McDonald’s Chummar Pudussery (011869) Copy 2 Word Count: 2126 TABLE OF CONTENT EXECUTIVE SUMMARY .........………………………………………………………3 1.0 INTRODUCTION 1.1 The History of McDonalds ………………………...…………….……4 1.2 Industry Overview ………………………………………………….....4 1.3 The challenges…………………………………………………...….…5-6 2.0 PESTEL Analysis 2.1 Political ………………………………………………....………...…. 7 2.2 Economical ……………………………………………………….…...7 2.3 Social………………………………………………………….....…….8 2.4 Technological……………………………………………….……..…..8 2.5 Environmental……………………………………………..…….….…9 2.6 Law………………………………………………………..…….…..…9 3.0 Recommendations………………………………………………….…….…..10-11 4.0 Conclusion ……………………………………………………………...……12 5.0 Bibliography ……………………………………………………………..…..13-14 Executive Summary McDonald’s considered one of the pioneers in the fast food industry, is clearly got many aspects to discuss about which is related to functioning of their business. In this study, PESTEL Analysis was conducted to understand various factors surrounding the environment. The factors are namely Political, Economic, Social, Technology, Environmental and Law. This paper is organized as follows: In the first section, will give an introduction to the History of McDonald’s, Industry Overview and The challenges faced by the industry. In the second section, PESTEL Analysis is used...
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...FAST MOVING CONSUMER GOODS www.ibef.org FAST MOVING CONSUMER GOODS WHY INDIA INDIA COMPETITIVENESS AND COMPARISON WITH THE WORLD MARKETS POLICY TRENDS AND PLAYERS MARKET OPPORTUNITIES FOR INVESTMENT ANNEX: APEX CONTACTS AGENCIES 3 7 9 12 32 38 A report by PricewaterhouseCoopers for IBEF Executive summary The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterised by a wellestablished distribution network, intense competition between the organised and unorganised segments and low operational cost. Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry. FAST MOVING CONSUMER...
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...Inhaltsverzeichnis Executive Summary and methodology 3 TASK 1 3 1. PESTLE ANALYSIS 3 1.1.2 LEGA INFLUENCES 4 1.1.3 ECOLOGICAL INFLUENCES 5 1.1.4 POLITICAL INFLUENCES 6 1.1.5 ECONOMICAL AND FINANCIAL INFLUENCES 7 1.1.6 SOCIAL-CULTURAL INFLUENCES 8 1.1.7 TECHNOLOGICAL INFLUENCES 9 TASK 2 10 PORTER’S FIVE FORCES 10 1.1.8 THREAT OF NEW ENTRANTS 11 1.1.9 DEGREE OF RIVALRY 12 1.1.10 THREAT OF SUBSITUTES 12 1.1.11 BARGAINING POWER OF BUYERS 13 1.1.12 BARGAINING POWER OF SUPPLIERS 14 SWOT Analysis 14 RECOMMENDED STRATEGIES 16 Conclusion 16 APPENDIX 17 References 18 Executive Summary and methodology The goal of this report is to give a brief overview of the primary external influences on McDonalds in the fast food industry of Germany by using the PESTEL framework (refer to Appendix 1 for Corporate Profile). In the second part of the report, the reader is instructed about the changing competitive environment based on the theoretical framework of Porter’s five forces modell and the SWOT analysis of McDonald’s Germany. The analysis demonstrates the influences on the company’s policies and the effectiveness of the organization’s response. This is followed by recommendations on how to improve the current situation and give an overview of McDondals alternative strategy approach to increase their market share as well their profitability. TASK 1 1. PESTLE ANALYSIS According to the PESTLE analysis, an understanding of the environment – macro forces...
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...Marketing Strategy 10 6.2 Sales Strategy 11 6.2.1 Scalability and Sales Forecast 11 7 Personnel Plan 12 8 Financial Planning 13 8.1 Projected Cash Flow 13 8.2 Break-even Analysis 13 8.3 Projected Profit and Loss 14 8.4 Projected Balance Sheet 15 8.5 Business Ratios 16 1 Research Methodology “Exploratory” research has been conducted in order to study the Indian Restaurant sector and gather data necessary for chalking out a business plan for opening a QSR. Major portion of the findings and analysis are based on: * Literature review from multiple sources * Exhaustive Secondary research The workflow for the study/research has been outlined in the figure given below. 2 Restaurant Industry Analysis Restaurant market in India is growing fast due to the increasing number of people eating out. * Restaurant/Food service market in India has witnessed tremendous growth in recent years * With increasing number of people eating out the industry offers major opportunities to the players to capture a larger consumer base * Changing demographics, rising income levels and increasing urbanization has also fuelled market growth * The growing segment comprises of formats like fast food chains, cafes and fine dining restaurants * There is an increasing trend of Indian players exploring the foreign market *...
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...Bargaining Power of Suppliers | | 1. Supplier concentration | According to Tim Roache of the DPI Agribusiness Group, over 50% of the country’s land mass is classified as agricultural land. Agricultural production is undertaken by small landholders who either lease or own their lands or companies with vast agricultural estates. Due to rapid population growth and escalating commodity prices, increasing food self-sufficiency is a major concern. Similarly, food produced from large agricultural estates results in the Philippines being a major producer of sugar, rice, corn, tropical fruits, poultry, and pork. Manufacturing and agriculture comprise more than half (65%) of the country’s economy, and the agrifood sector employs over one-third of the population. Calata corporation (one of the biggest agricultural conglomerates, 2.7 billion) | 2. Availability of substitute inputs | The Philippines’ food processing sector is the most dominant manufacturing sector in the country. It accounts for 40% of total manufacturing output, contributes 20% of GDP per annum and is growing at 8-10% per annum. The sector comprises of fruits and vegetables, meat and poultry, flour, dairy products, fish and marine products, and the like. This sector is heavily reliant on both domestically produced and imported agrifood products. Recent economic liberalizations by the government has resulted in a trading system that’s relatively open and has some of the lowest applied tariffs in the region. (membership...
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...Fast Food and Consumer Behavior ABSTRACT Marketing can impact the economy in one or two ways. First, marketing has the potential to increase the demand for a good or service. Effective marketing campaigns entice people to want/buy a specific good or service. The market demand curve is comprised of individual demand curves for a good. General theory states that consumers will buy less of a product as the price increases. However, marketing can cause the demand for the good or service to become more inelastic, which causes consumers to still buy even when the price increases. This is because strategic marketing plans have a goal to convince consumers that there is no real substitute for the good or service. Some argue that consumer behavior is manipulated by marketing and that consumers need to operate within a “laissez faire” market. This paper will discuss the impacts of marketing on consumer behavior in the fast food economy and the ability to generate demand curves. It will test the following three hypotheses: (1) consumer behavior is influenced by marketing (2) effective marketing impacts the indifference curve (3) marketing can override the individual and market demand theory. The research paper will present the research that supports the psychological and economic theory of consumer behavior in the fast food industry to support the results demonstrating the economic effect from the efforts of marketing. Introduction ...
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