...FASTFOOD / RESTAURANT INDUSTRY Introduction Indian QSR (quick service restaurants) Industry is growing very rapidly. It is a reflection of the change in the lifestyle, food habits and consumption pattern of the population. The incidence of Dining out, ordering from home as well as takeaways is rising creating an opportunity to cater to a wide mass of population. What was the domain of upper class, singles or forced bachelors, has percolated to all echelons of society. The incidence and value differ substantially, but penetration of such consumption habits is wide spread and is on the increase. Although largely an urban phenomenon, the pattern is also emerging in rural areas with better road connectivity, increased vehicle ownership and rise in income levels. In a country with more than a billion people, opportunities in India are abound. This has led to a rapid growth of the QSR industry. However, simultaneously, it has also created a canvass that has many failures and carcass. Several outlets have been closed, a large number are struggling, still a large number are just about surviving and lot many of them have not been able to find their feet. There are a lot who are successful, but, more importantly, there is almost a complete absence of national chains. This indicates to the fact that just having a lot of opportunities is not enough. These opportunities need to be harnessed and converted into profitable enterprises. This paper is an attempt to understand the industry, its...
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...Globalization Paper - Fast Food in China Anastasia Allen, Terry Clevenger, Robert Combs, Kirk Dickerson, Cassie Sherlin April 28, 2013 China is a country that prides themselves on history and tradition. China has possibly been the greatest country to contribute to modern day society. But not even the ever so powerful China can resist a bucket of Kentucky Fried Chicken or a juicy hamburger from Burger King. The majority of fast food began in the United States, but now has spread across the globe. Besides the United States, China is one of the biggest contributors to fast food business. The fast food market from China contributes an estimated $29 billion alone (Economist). This is big money business for any genre of an organization. With the proper techniques, skills, and drive, any sort of organization can succeed anywhere in the world. How does an American business work and succeed across the world? Does the business incorporate China’s culture into manufacturing and marketing? What strategies do businesses take in advancing the opportunity in China? These questions along with others will be answered to find out how and what is done to allow fast food businesses to be successful in the fast-pace, culture rich, and tradition loving China. Cultural considerations in terms of product manufacture and marketing in relation to fast foods in China. A successful product launch demands a better understanding of the market in terms of both culture and consumption...
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...Globalization When a business goes into the global market, there are both good and bad aspects that must be looked at. The decision to go global affects the business, the laborer, and the consumer all on different levels. Sometimes companies fail to realize this and as they are taking that step to go global, take a few falls as they proceed. The advantages of globalization for a business include the opportunity to gain a bigger market area, which will help to increase sales. They also have the opportunity to hire in other countries, bringing the labor expenses down and the capability for bigger production. With these two facts, a company’s bottom line can have a major change for the better. For the laborer in those countries, it brings in jobs and opportunities that would not be possible without globalization. It will help to stimulate their economy and also create a positive bond between the both countries. And for the consumer, the choices in products and services are made more vast them ever before. It gives them the opportunity to experience the products of other countries without having to actually visit them. The good example of this was the one of McDonalds opening in a different country and even though the weather wasn’t at its best, thousands still came out to have that taste of American Fast Food. For the consumer, there also is less price inflation because of products being made cheaper and companies being able to keep the rise of end costs not as steep...
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...wAnalysis external environment for fast-food industry Presume that China is the potential market for a new fast-food enterprise to open, I would like to analyze relative conditions related to the extension of the market. General macroeconomic conditions In 2014, the economic conditions in China is enthusiastic. According to the data from National Bureau of Statistics of China, Total Retail Sales of Consumer Goods in January and February have experienced a generally increase, going up by 11.8%. Compared with the increasing pace in 2013, it was slowed down in the first two month in 2014. This may means the motivations for consuming in 2014 would be weaker. At the same time, the consumptions in restaurant also decreased by 0.5%, which may be a detrimental signal for restaurant industry. While it is possible that this phenomenon is triggered by the pledge of consumptions in luxury restaurant instead of fast-food industry. If this hypothesis is correct, the food consumption in fast-food restaurants may go up as the industry is actually an alternative to be a substitute for this high monetary required cuisines. Population demographics China, generally speaking, is the country owning the largest population which represents 19.30% of global population at 1,384,694,199. Also, China is one of the country with high population density at 139.6 people per square kilometer and almost 70% of people will live in urban area by 2035. The large population base guarantees adequate passengers...
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...Nicholas Duerson Whitney Snyder Business 112 February 24, 2014 30 Years of Papa’s Pizza It all started 30 years ago, when John “Papa” Schnatter crafted the idea to knock out a broom closet inside of his father’s tavern located in Jeffersonville, Indiana (Papa Johns International 1). After receiving a business degree from Ball State University and turning his father’s failing tavern around with an idea of pizza, Mr. Schnatter would wind up selling his beloved ’71 Camero for a $1600.00 investment towards pizza equipment. (Papa Johns International 1) It was that entrepreneurial move which would eventually solidify an excellent business model to launch what is now known as “Papa John’s” and currently the third largest pizza franchise. Taking a look at how Mr. Schnatter rose his company to that achievement; you will see that popular partnerships, international expansion, and a first-class outlook on “quality over quantity” pays out in the long run! Papa John’s was conceived on October 2, 1984, when Mr. Schnatter knocked out a broom closet inside of his father’s tavern. (Papa Johns International 1) The business was nearly bankrupt, but Mr. Schnatter took initiative and planned to sell $5 dollar pizzas and 50 beers up front in his father’s business. It was that entrepreneurial move to start his own business that would keep that drive going. Only after a short and successful year, Mr. Schnatter would open his first Papa John’s store. Papa John’s started franchising their...
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...Strategic Management and Strategic Competitiveness Cathy Shaw Professor Etta Steed BUS499 Business Administration Capstone 16 January 2016 Globalization changes have impacted Burger King in the following ways; since the company began in 1953 with its first restaurant in Jacksonville, Florida and opened several locations across the United States, the company began its international expansion in 1969 with its first international franchise location in Canada, followed by Australia in 1971, and Europe in 1975. The setting up of franchises outside the United States was as a result of fast food opportunities arising outside the United States. So as to fully integrate in the international market, Burger King had to adopt and embrace globalization changes that were occurring at that time. Globalization changes that occurred in the past world and that continue to occur in the present world include the availability of different products, the emergence of new ideas, the integration of culture as well as the presence of new opportunities in new markets. With the emergence of globalization, technology is available for various parts of the world for the company to use. Such technology includes the use of the internet that will allow the company to communicate with business partners worldwide. The company also has the ability to set up a franchises in any part of the world. The company has over 13,000 outlets in 79 countries worldwide. Having a large global presence has enable the...
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... | |HR587 Managing Organizational Change | K Milburn 29 May 2011 |This document brings into picture the change that took place in McDonalds | Table of Contents Executive Summary Assessment/Diagnosis Analysis of the Change Strategy Results/Outcomes Evaluation of the Effort Discussion and Conclusion Works Cited Appendix Introduction: ‘You can change without improving, but you cannot improve without changing!’ In today’s fast growing and highly competitive environment everyone wants to stay ahead and always remain connected to the whole world. The last two decades have seen many inventions that are really path breaking and changed our lifestyles in more than one or another way. This is possible only because of the changes and innovation in the organization. Companies across a range of industries are confronting fundamental change. The advent of 3G technology poses...
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...Pick any industry you are familiar with (examples: fast food industry, automotive industry, Personal Computer industry, financial services industry, etc. other than the Casino Industry). Provide brief answers to the following about this industry. Industry: ________fast food industry__________________ 1. Industry Driving Forces/PEST Analysis: Identify four to five emerging factors in the environment that could have a significant impact on the industry in the future. Driving Force | Potential Influence on the Industry | globalization | More and more people from other countries are adopting American culture so there might be opportunities for fast food companies to open new markets. | health | They might get less consumers in the future because recently more and more people are concerned about their health. | Life style | The pace of life is increasing; people who work in large cities and do not have time to have something big may choose to consume fast food. | technology | With the development of online ordering and 24 hours home delivery, it is much easier for people to consume fast food so it provides opportunities for the industry. | | | 2. Conduct a brief analysis of the Industry Structure using Porter’s Five Forces Framework. Identify and describe each force as it applies to the industry you chose above. What is your conclusion about the industry? Which of the five forces had the most influence on the conclusion? Force | Description | Strong/weak...
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...CHALLENGING THE GLOBAL LEADER: LESSONS FROM WENDY’S AND JOLLIBEE INTRODUCTION Competition in fast-food industry is intensely grow, thus globalization is carefully observed along with its unique innovation in order to attract potential consumers. Fast-food chains generally offered wide array of products from simple refreshments to full meals. In the Philippines, Jollibee and McDonald’s are the two industry leaders which is primarily been at the forefront as the new entrants established their foundation while existing fast-food chain players continued their battle for market share (Figure 1). WENDY’S In 1969, Wendy’s was founded by R. David Thomas in Columbus, Ohio and was considered one of the leading fast-food chains in the world. At Wendy’s inception, the brand represented Wendy’s competitive advantages in the marketplace for being known for its innovation to their menus such as the Salad Bar, Hot-Stuffed Baked Potatoes and the whole breast Chicken Sandwiches aside from its great tasting hamburger. Wendy's set an industry practice by offering old fashioned and made to order hamburgers using fresh meat. “To become bigger than McDonald’s” but not “another McDonald’s” was the goal of Thomas that also serves as his motivator for his action plan in Wendy’s growth development. As the fast-food industry is growing, Wendy’s has remained committed to providing the highest quality and freshness foods while assuring competitive prices where quality and freshness was conceptualize for the...
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...With your group, consider a fast food chain going into Eastern Europe. Decide on your initial level of desired international involvement and your entry strategy. Draw up an appropriate organizational design, taking into account strategic goals, relevant variables in particular countries in which you will have operations, technology used, size of the firm, and other related issues. Post your organization chart, including a description of operations and rationale. What are some of the major control issues to be considered? Your final product should be clear, detailed, and demonstrate mastery of organization structure and control systems. Scenario Assumptions An American fast-food chain plans its market entry in Russia. Country Profile – Major Concerns of a Market Entry in Russia Table 1 summarizes the main general, current opportunities and risks prevalent for doing business in Russia. Opportunities in Russia | Risks in Russia | - Russia has a population of 142.9 million. This offers a great growth potential of our customer base. (Ernst&Young, 2012) The population is broad-based, young and not picky (Wilson, 2004). | - The Russian labor market is highly segmented. Earning, income and educational inequalities are large. Additionally, the enforcement of labor standards is lax and collective bargaining is underdeveloped. (OECD, 2012) Therefore, we will need mechanisms to control their enforcement after the market entry. | - Russia is still experiencing an economic...
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...Kentucky Fried Chicken (JAPAN) Limited 1. By the apparent basic interpretation of the fast food, one of the most significant characteristic is the food to be served fast. a. Within few minutes, the food is ready to go. b. Order in the counter, as well as take the order. c. Product standardization. There is no table-service, less waiting time, no need for reservation, fast food simply save people’s time. While the high calories, low nutrition and health issue such as diabetes lower the people’s intention to dine at there. Japanese prefer delight food and cooked with only little oil, their staple food is rice, and the protein source from fish, soy beans seafood and other meat. I believe that Japanese customer do not want oily food, and prefer some innovations between rice and fish or any seafood such as rice burger or fish burger etc. The success factors that KFC in Japan take is the reduction of the original 12 pieces chicken to 6 piece chicken which described that Japanese prefer less volume food than American, also the innovative fish burger is welcomed by customers. 2. What are the rules between the country managers and headquarter decision? This report almost describes their relation in almost half pages. Headquarter want its franchise to report their every report, and corporate with its central decision to make the stable management to sustain certain level of control, which is conversely not abided by subsidiary. What headquarters’ goal is to back to the basic...
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... | |HR587 Managing Organizational Change | K Milburn 29 May 2011 |This document brings into picture the change that took place in McDonalds | Table of Contents Executive Summary Assessment/Diagnosis Analysis of the Change Strategy Results/Outcomes Evaluation of the Effort Discussion and Conclusion Works Cited Appendix Introduction: ‘You can change without improving, but you cannot improve without changing!’ In today’s fast growing and highly competitive environment everyone wants to stay ahead and always remain connected to the whole world. The last two decades have seen many inventions that are really path breaking and changed our lifestyles in more than one or another way. This is possible only because of the changes and innovation in the organization. Companies across a range of industries are confronting fundamental change. The advent of 3G technology poses...
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...EXECUTIVE SUMMARY- The following assignment talks about the strategic management in context to McDonalds. Strategic management is one of the critical issues to be studied by a company in order to understand the causes and solution of the problems and hurdles in the way of the success 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...
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...challenges 14 3.1 Recommendations 15 3.2 Conclusion 15 Exhibit I 16 Exhibit II 18 Exhibit III 29 References 32 McDonald Enters Vietnam Abstract This paper analyzes the globalization options for McDonald’s by going into Vietnam. The paper explores McDonald’s global strategy as well as its expansion strategy. Aside from the globalization evaluation, this study also examines the entry mode in Vietnam. In the concluding sections, I was able to outline the challenges and recommendations for McDonald’s. Key words: globalization, strategy, fast food, expansion 1.0 Introduction McDonald’s Corporation is the world’s largest hamburger fast food chains which serves up to 64 million customers daily. McDonald’s annual report in 2007 revealed that it served one billion more customers globally in the previous year because of its reasonably priced menus such as Ein Mal Eins in Germany, the value Menu in China and the Dollar Menu in the US. These menus normally included up to 10 items with desserts, side dishes, entrees and drinks which could be mixed by customers to make a meal or a fast snack. According to McDonald’s 2010...
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...Marketing Plan Teresa Bowie University of Phoenix Marketing MKT/421 Tracy Coomes October 2, 2012 Marketing Plan: Phase II Introduction Subway is a growing business with the strength of motivating the world to healthy eating. So how do we identify the segmentation criteria that will affect their target market selection? To understand the effect on the segmentation criteria the key is to identify the target market of the business. In order for the market to achieve their goals, they must follow the step of researching the target market. Describe the organizational buyers and consumers of the new services “the reward system” and the factors that influence their purchasing decisions. Factor will discuss how their involvement will affect the marketing strategy along with analyzing current competitors and define the competitive landscape for the service of the “reward system”. The segmentation criteria Market segmentation is common marketing processes that entail separating a large audience into distinctive segments with consumers who have similar needs or wants. This process identifies targeted marketing segments, so companies can use discretely the marketing mix approach for the most profitable markets. These processes build marketing investments and allow the investments to be more efficient. Detailed criterion is helpful in targeting...
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