...McDonalds in malaysia Executive Summary The first section of this case study will introduce the background of McDonalds in Malaysia, the mission and vision of McDonalds and also the opportunity and threats of McDonalds. After the brief introduction is the external environmental analysis of McDonalds. The next section analyses the fast food industry through Porter's five forces model as well as the competitor analysis that consist of Burger King and KFC. Subsequently, market analysis is conducted to indentify the market trend and also the market size and growth. Next is the analysis of the buyer analysis. The analysis is being analyzed base on the psychological factors, personal and social factors. Then followed on are the internal analysis and core competencies. This analysis is to analyzed McDonald's strengths and also its weaknesses The next segment will discuss the market segmentation, targeting and positioning of McDonalds in Malaysia market. The marketing program of McDonalds will then be evaluated as well as its financial performance. Lastly, the issues and problems are brought up and recommendations are given to improve the situation. 1.0 Company Overview McDonalds was founded by two brothers, Richard and Maurice McDonald in 1937 in California. This largest global fast food chained arrived in Malaysia 43 years later in December 1980. McDonald Corp. gave their license to Golden Arches Sdn Bhd to open McDonald's Restaurant in Malaysia. After twenty six years they...
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...Executive Summary This assignment is about the ethical aspects of the two organizations chosen by me which are McDonald and KFC. I have done some research about the definition of business ethics, the history of these both organization, evaluate and analyst the ethical and unethical business practices of one company compared to the other company within the same industry and also applied 4 relevant ethical theories to these both organizations and also how they use it. Table of Contents Executive Summary 1 Definition of Business Ethics 3 1.0 Introduction 4 1.1 KFC’s History 4 1.2 McDonald’s History 5 2.0 Evaluation and Comparison of Business Practices in the Ethical Aspects between McDonalds and KFC 6 2.1 Prices 6 2.2 Food Packaging and Environmental Recycle 7 2.3 Public Relationship 8 2.4 Working Condition 9 3.0 Application of 4 Relevant Ethical Theories is Analysis which is: 10 3.1 Communitarianism 10 3.2 Justice 11 3.3 Ethics of Care 12 3.4 Rights Theory 13 Conclusion 14 List of Referencing 15 Bibliography 15 Definition of Business Ethics Business ethics is the applied ethics discipline that addresses the moral features of commercial activity. In practice, however, a dizzying array of projects is pursued under its rubric. Programs of legal compliance, empirical studies into the moral beliefs and attitudes of business people, a panoply of best-practices claims, arguments for mandatory...
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...Kentucky Fried Chicken and the Global Fast-Food Industry Case Analysis 1.0 Source Problem The change in demographic trends in the past two decades has seen an overall increase in costs for KFC and other fast food chains. Due to immense price competition and saturation of the US market, KFC is unable to raise its prices to cover the increased costs. The slower US population growth rate, oversupply of fast food chains and the minuscule 1% growth in the US restaurant industry per year has resulted in KFC¡¦s focus on expansion of their international markets. 2.0 Secondary Problems 2.1 Short Term - New product introductions are slow. - Market research inefficiency. Eg. Germans were not accustomed to buying takeout or ordering over the counter. McDonalds performed better in this aspect. - Crispy strips and chicken sandwiches cannibalized the fried chicken sales. 2.2 Long Term - Differences between the PepsiCo and KFC corporate strategy and culture. - PepsiCo/KFC poor relationship with franchisees. - Increased competition from direct and indirect competitors. - Reduction in market share in the US market. - Risks involved in international operations: long distances made it difficult to control quality and service, increased transportation and other resource costs, and time, culture and language differences increased communication and operational problems. - Fast food sales grew at a slower rate (5%) in comparison to other sectors in the restaurant industry. ...
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...the strategy is implemented and the results are examined. http://us.123rf.com/400wm/400/400/dskdesign/dskdesign1207/dskdesign120700077/14652330-marketing-process-concept--segmentation--targeting--positioning--approaching.jpg Explanation of the various elements of the marketing process. Step 1 – swot analysis Step 2 – segmentation, targeting, positioning Step 3 – marketing mix Step 4 – implementation – go out there and sell your product no time to Step 5 – control Swot analysis An important part of the planning process is observing at the present position of the business and trying to choose how factors outside of the business might affect the business. Business do a SWOT examination as a way of determining which marketing strategy to use. The business does a review on the interior and exterior nature of the business looking at the current and upcoming condition. An audit is a review of all the business’ doings. Example of a business swot analysis KFC Strengths | Weakness | Second best world-wide brand in fast food Original 11 herbs and spices recipe Strong position in emerging china KFC is the market front-runner in the world amongst businesses featuring chicken as their primary produce offering. | Unreliable dealers Bad advertising Unhealthy food menu High worker income...
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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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...Case Study McDonald’s and KFC: Recipes for success in China COUNTRY LEVEL With the largest population in the world, the emerging economy of China was an easy target for companies to begin their international growth. The opportunity to make money in this country is what excites companies to try and integrate their businesses into the area. China is currently a part of the BRICS association making it one of the five major emerging economies in the world. China is located in Southeast Asia along the coastline of the Pacific Ocean. It sits as the fourth largest country in the world and is currently the second largest economy in the world measured by the Purchasing Power Parity Scale. This scale shows that a product in two different countries should have the same price when expressed at the same currency. With China’s size and increasing economy they have really worked to open their economy to international trade. This opens up the market for companies to try and enter and become successful. (Economy, 2010). Companies like KFC and McDonalds saw they opportunity and began to enter the Chinese market. These bolds moves paid off for some and not so much for others. Throughout the analysis we will see who the real winner is and what the future holds for these industries. QUICK-SERVICE INDUSTRY Both KFC and McDonalds are part of the quick-service industry. Many people know this industry as fast food but this is the correct name for it. This industry has been around for years and is...
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...Case #10 McDonalds 2013/12/11 Strategic Planning Professor Mrak E. Bush Background McDonalds started by McDonalds brothers in the year 1941. The brothers thought out a new idea, which customers could drive in the fast food restaurant. This was unique at that time, and this was the first time to drive in. McDonalds was successful. McDonalds was said to be the first of their kind in the fast food industry which gave a great opportunity to entering the market and shortly after that dominating it for years, and according to the 5 forces of porter they almost had no barriers for entry and they were also able to crush the rivalry "old classical eat-in- restaurants" with their unique idea of foods that were of a good quality, quickly assembled and served, and at the same time affordable to customers. Even though McDonalds is often the aim that gets the criticism in fast food industry, but also they made lots glories, such as in the year 2011, they got the most innovative food company and the 11th most admired company in the world, and in the year 2012, they got 4th most valuable global brand. When McDonalds faces problems, they respond very strongly and quickly. They try to do more than their competitors. The skinner’s plan was really helpful to improve the McDonalds image. They focused on the stores which they had rather than thinking about to build more stores. The trend of McDonalds is to be the biggest fast food brand in the world. Also it will be the most recognizable brands...
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... | Contents 1. Introduction 2. Mission Statement 3. Marketing Audit 1. Macroenvironment 1. Politics 2. Economic 3. Ecological 4. Social 5. Technological 2. Microenvironment 1. Competition 2. Suppliers 3. Customers 4. SWOT Analysis 1. Strengths 2. Weaknesses 3. Opportunities 4. Threats 5. Marketing Objectives 1. Strategic Thrusts 2. Strategic Objectives 6. Core Strategy 1. Target Marketing 1. Segmentation 2. Targeting 3. Positioning 2. Competitor Targets 3. Competitive Advantage 7. Marketing Mix Decisions 8. Organisation and Implementation 9. Control 10. References 11. Bibliography 12. Appendices 1. Introduction This report will provide you, as McDonalds, with a full marketing plan identifying the key issues. In this plan we will critically analyse each stage of the marketing planning process, and suggest possible strategy changes which you may wish to consider. We will set examples with theories throughout the plan and compare existing marketing decisions with our recommendations and the importance in building and maintaining your competitive advantage. 2. Mission Statement ...
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...McDonald case analysis History and growth of McDonald across Globe : McDonald Corporation is the world's leading food service retailer with more than 31,000 restaurants in 120 countries serving more than 50 million customers each day. Origin of this US based company can be traced back in 1940 as a barbecue restaurant operated by the Richard and Maurice McDonald . Ray Kroc another business man joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers . McDonald's first filed for a U.S. trademark on the name "McDonald's" on May 4, 1961, with the description "Drive-In Restaurant Services,". In the same year, on September 13, 1961, the company filed a logo trademark on an overlapping, double arched "M" symbol. McDonald serves some of the world famous favourite food like French fries ,Big Mac, hamburgers, soft drinks ,desserts, shake etc . Mc Donald focus on global expansion strategies .McDonald’s first opened stores outside the United States in 1967 in British Columbia and Puerto Rico . Currently it has made its presence in 120 countries . McDonald Business model is based on Franchises . Almost 85% of its restaurant is based on franchise model only 15% is owned by company. In India, McDonald's is a joint-venture company managed by two Indians. While Amit Jatia, M.D. Hardcastle Restaurants Pvt. Ltd. owns and spearheads McDonalds in west & south India, McDonald’s restaurants in North & East India are owned...
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...management style and strategies are extremely effective when faced with the vast amount of issues it has in its sixty plus years of history. McDonald's business in India: McDonald’s success in global growth is exemplified in its achievement in infiltrating the Indian food market. This infiltration has been made famous due to management and strategic issues encountered by McDonald's from the macroeconomic environment, particularly in the economic, demographic, socio cultural and the competitive environment. McDonald's entry strategy in India is a major reason in the way its success came about. The company was faced with many different possibilities, but encouraged by previous failings from rival companies in KFC and a vast amount of research into India and its markets McDonald'. McDonald’s is...
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...passed since Raymond Kroc envisioned a nationwide fast food chain, which needless to say went on to revolutionise the American restaurant industry and become the world’s number #1 fast food restaurant. Today McDonald’s serves 52 million people a day from one of its 31,000 restaurants dotted around the world (Ritabrata Giiosii, R.G. 2009). The golden arches along with Ronald McDonald and the catch phrase “I’m lovin’ it” have assisted McDonald’s in becoming one of the most globally recognised brands, allowing them to become McDonald’s most valuable intangible assets, but how did they do it? Countless elements threaten McDonald’s reputation; health issues, legal and technological changes, social factors, environmentalists and obviously competitors especially those who offer similar services and products such as KFC. They too have become a national brand recognized all around the world however to understand how McDonalds have achieved such success we must first understand what they do differently and what objectives have allowed them to achieve such aims which have assisted them in becoming the best (McDonalds Corporation. 2008). Constantly changing and bettering the marketing strategy has allowed McDonald’s to remain the best, however their main objective has always remained the same; not to be the biggest fast food restaurant chain but to be best fast food restaurant chain and to do so they...
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...perception on the brand equity of the fast food chains operating in Karachi. The selected fast food chains for the purpose of this research were KFC, McDonalds, Subway and Mr. Burger. A closed ended questionnaire based on a liker rating scale was developed. The questionnaire was based on literature survey, and the theoretical framework. The field survey was carried out in October 2004. The final sample size was of 83 respondents. The brand equity of KFC with the mean of 3.95 was highest and the brand equity of Mr. Burger with a mean of 3.13 was lowest. The respondents’ opinions varied normally with standard deviation of 0.69 to 1.02. The developed hypotheses were tested through one way and two- way ANOVA. Subway and Mr. Burger have adopted a niche-focused strategy and it was found that they both are doing well in their respective areas. KFC was found to be the leading brand. McDonalds has to improve a lot in terms of brand image and positioning. It is one of the most marketed and advertised fast food brands in the country and it has not been successful as shown by its relatively low brand equity score. i. Objective of Study The objective of this study is to measure consumers’ perception on the brand equity of the fast food chains operating in Karachi. The selected fast food chains for the purpose of this research are KFC, McDonalds, Subway and Mr. Burger. II. Literature Survey An Overview Brand is a powerful concept as it blends performance – based...
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...competitive advantage 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...
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...India Introduction Fast Food Industry Overview India is blessed with one of the fastest growing fast food market of the world. It is estimated to be nearly worth of 41.3 billion USD and it is a healthy growing industry at a compound annual growth rate (CAGR) of 11%. The Organized Food Service Industry is worth $13.79 bn (approx. 33% of total Indian Food Service Industry), which is growing towards at 17%. (Industry report 2014) By year 2017 this bench marks will reach by other category, like as follows: (Ref) Category | Current Market Share | Compound Annual Growth Rate (CAGR) | Expected Market Share by 2017 | Organized | 30% | 12-14% | 45% | Unorganized | 70% | 8-10% | 55% | In present situation Indian GDP is around 6 % for last couple of years. As a result there is a significant numbers of monthly disposable Income are growing gradually. Now a day people of India spend on eating outside almost Rs.33, 000 Crore according to the size of the market. Some recent research study is expected this growth will reach US$68 billion by 2018. (Ref) On the other side delivery segment is an integral part of the Indian Food Service segment. The size of Organized Indian QSR delivery market is US$0.62 billion, growing at a healthy CAGR of 20% and is expected to reach US$1.1 billion by 2017-18. (Ref) In major cities comprise of large workplace clusters and high density residential areas people and young Indian consumers are highly price sensitive, through online they compare the...
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...Project Report. As stated in the developing story section, we received invaluable advices and suggestions during the development and revision process. Purpose Of The Project The purpose of this project is to find out the History, Functions, Operations and Services of KFC . Then do give suggestions and recommendations and in the end to conclude the effect of the implementations. Executive Summary This project gives a brief detail of Fast Food Industry in Pakistan The Final Project gives the brief snap shot of Situational Analysis on Fast Food Industry. The SWOT analysis indicates the Strength, Weakness, Opportunities and Threats of the KFC. To get reasonable market share in Fast Food Industry required a reasonable amount of capital to open up outlets in different locations, plants with high definition equipments for food processing and for designing a distribution channel form plant to outlet. Also huge amount required for the marketing to sell their product at different locations and to establish the positing in the mind of potential customers. The market leader in Fast Food Industry is KFC and its major competitors are McDonald, Pizza Hut. KFC is sticked with their original recipe but...
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