...McDonald’s case study Ans1. The taste of the costumer are changing rapidly because of the variety of burgers the competitors are providing in the market and the promotions of these burgers about by 2 and get 1 free, the impact the would have in the McDonald’s is that they would lose the business if they don’t come up with a better solution. Ans2. The changes in the customers taste and preference are being well reflected by the competitive strategy because of which the customers and going for different tasteful foods and which are affordable McDonald need to breakthrough that will provide new revenues of growth. Ans3. The strength of McDonald’s is the counter attack of the “BIG MAC ATTACK”, and the weakness is that McDonald’s don’t have a segment in the burger. Ans4. Yes, McDonald should develop separate strategy for the heavy user segment of the fast food industry because it is losing business and profits due to their competitors which have a separate segment of burgers. Ans5. To grow sales and profits, Jack Greenberg should create awareness with in store team members of what constitute the true fast food experience. Install a computer –based customer feedback in every restaurant, set up a similar feedback system for drive thru customer. IKEA’s case study Ans1. IKEA's firm specific advantages are clear-cut as the low cost furniture manufacturer and retailer aims to the young and price-conscious consumer. IKEA has been developing innovative modular...
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...McDonald’s Case Analysis Nick Brown BUSN412 Business Policy May 14, 2010 CASE ANALYSIS McDonald’s COMPANY NAME: McDonald’s Corporation INDUSTRY: Food McDonald’s Corporation COMPANY WEBSITE: (www.mcdonalds.com) COMPANY BACKGROUND: Ray Kroc found McDonald’s corporation, a successful fast food restaurant, in 1955 were his vision was to create McDonalds restaurants all over the U.S, and within 3 year of establishing the franchise the corporation was already selling its 100 millionth burger. The franchise has now became a successful global fast food restaurant that sells a variety of items and has a unique philosophy that Ray Kroc envisioned with building this franchise which was “To Build a restaurant system that would be famous for food of consistently high quality and uniform methods of preparation”(McDonald’s Corporation 2009). He wanted, “To serve burgers, buns, fried and beverages that tasted just the same in Alaska as they did in Alabama”(McDonald’s Corporation 2009). The case study concentrated on the financial strengths and struggles of the franchise. With the early millennium years 2001, 2002 and 2003 the franchise seen a tremendous dip in total revenue and net profits, it wasn’t until 2007 when the company seen a turnaround in total revenue and net profits. Things were starting to look up for franchise. Currently the CEO at McDonald’s Corporation is Jim Skinner and he is providing the same vision that Ray Kroc was envisioning when he opened the doors. The...
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...MC DONALDS CASE STUDY ANALYSIS OF THE COMPANY McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. McDonald's operates over 34,000 restaurants worldwide, employing more than 1.7 million people. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth. McDonald's predominantly sells hamburgers, various types of chicken sandwiches and products, French fries, soft drinks, breakfast items, and desserts. In most markets, McDonald's offers salads and vegetarian items, wraps and other localized fare. McDonald's operates over 34,000 restaurants worldwide, employing more than 1.7 million people. In 2006, McDonald's introduced its "Forever Young" brand by redesigning all of its restaurants, the first major redesign since the 1970s.McDonald's has invested $1 billion to redesign nearly all of the 14,000 restaurants by 2015. SWOT analysis of McDonald's Strengths 1. Largest fast food market share in the world. McDonald’s is the largest fast food restaurant chain in terms of total world sales (8%). It is the second largest outlet operator with more than 34...
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...McDonald's Operation in South Africa A Case Study Abstract: The case focuses on the strategies adopted by the world's leading fast food restaurant chain, McDonalds Corporation (McDonald's) in South Africa. McDonald's opened its first restaurant in South Africa in November 1995. Today McDonald's operates 170 restaurants in nine of South Africa's provinces-Gauteng, Western Cape, Eastern Cape, KwaZulu-Natal, Mpumalanga, Free State, Northern Province, North West and Northern Cape. In March 2011, Shanduka Holdings, owned by Cyril Ramaphosa, acquired control of McDonald's South African operations. The deal gave Ramaphosa exclusive rights for 20 years; including the powers to lease out real estate of its stores. McDonald's has struggled under fierce home-grown competition. Famous Brands, its main rival has more than 1100 outlets operating under names such as Steers, Wimpy and Mugg and Bean. Since then, McDonald's has been expanding heavily in South Africa providing quality, service, and value to its customers. South Africa has proven to be one of the most successful markets for McDonald's at one point opening a staggering number of 30 restaurants in record time. This case concludes by addressing challenges faced by the new owners of McDonald's with increasing competition, commodity price fluctuations, and variances with direct costs. Issues: * Examine some of McDonald's efforts to localize its offerings in South Africa. * Understand McDonald's marketing strategies...
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...McDonald’s Restaurants law case Introduction The famous 1994 Liebeck v. McDonald’s Restaurants law case, popularly known as “the hot coffee lawsuit” sparked a debate in the U.S on product liability. The case resulted from the severe burns Mrs. Liebeck got from her coffee spill. Having bought coffee from McDonald’s, Liebeck told her grandson to stop the car so that she could add sugar to her coffee. She placed the cup on her lap but it got spilled causing a third degree burn to six percent of her body and less serious burn to sixteen percent. She was hospitalized for eight days and had to undergo skin grafting. She also spent the next two years on medication. Liebeck filed a lawsuit against the fast food restaurant and was awarded $640,000 by the trial judges. The parties however, decided to settle for a confidential amount before an appeal could be decided. Many people saw the case as worthy as many people before had received burns from McDonald’s coffee but not much was done toward it. Laws and ethical principles violated The serving of very hot coffee by the McDonalds violates the product liability law (Allee 1984). Coffee at temperatures between 180-190 degrees is well known to burn when spilt. The fast food chain knew this very well and it still continued serving this very hot coffee even after over 700 previous cases of burnt reported to it. This demonstrated very well that the food chain was not ready to take any responsibility for any health effect its product...
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...The McDonald’s Corporation opened their first restaurant in Des Plaines, Illinois in 1955 after Ray Kroc had purchased the rights to the restaurant from the McDonald’s brothers in 1954. Since Kroc first established the company, McDonald’s has become one the world’s largest franchises and continues to grow daily. McDonald’s has undergone several management changes since it was opened by Kroc including supervision by Fred Turner, Michael Quinlan, Jack Greenberg, and Jim Skinner. Jim Skinner helped turn McDonald’s Corporation around after it experienced its first ever quarterly loss. Skinner initiated a tactical proposal called “Plan to Win” that turned around the company and steered the business to its best financial results ever and doubled its market value. Skinner’s efforts to clean up the decline that McDonald’s has experienced in recent years contained strategies that would allow McDonald’s to stay aggressive with its competition. Skinner concluded that the corporation would need to improve its image in order to maintain a top fast-food restaurant. Skinner decided to not open new restaurants, and instead focused on upgrading and remodeling current open restaurants. In the efforts to develop his strategy, Skinner also improved the customer service and created new menu options that matched their competitors. Customers were receptive of these changes and McDonald’s quickly renewed itself. The strategy implemented by Jim Skinner was something that McDonald’s did right. They...
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...of the fast-food industry. However, sales growth in the United States had slowed to below the industry average in recent years. Jack Greenberg was trying to decide on a set of appropriate strategies for the future in order to reverse the declines and to stay ahead of competition. The Fast-Food Industry Years of profit drains and flat sales are driving fast-food chains to find new marketing strategies to compete in a mature market. While McDonald’s and most other hamburger chains continue discounting and offering a variety of new products to attract customers, they also seek to shed their “cheap and greasy” image with new store designs. Major competitors in the hamburger segment of the fast-food industry in order of annual sales are McDonalds, Burger King, Wendy’s, and Hardees. Since these chains recognize the importance of drive-through customers (65 percent of sales), they are all trying to increase the speed of drive-through delivery. Strategies include using timers to encourage employees to prepare and deliver food faster, training employees in faster food preparation methods, having separate kitchens and food preparation facilities for drive-through customers, and even windshield responders that automatically bill customers. Drive-through sales are expected to grow three times faster than on-premise sales....
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...this expansion, McDonald’s has faced the challenge of transferring a symbol of American culture to places where there are significant national, cultural and religious differences. This essay will analyse some management issues that McDonald’s has experienced. Firstly, the strategic debate regarding global integration versus national responsiveness will be examined. Associated with this issue, is the matter of diversity across different regions. Finally, the essay will consider McDonald’s corporate image of social responsibility in relation to environmental sustainability and increasing problems of worldwide obesity. McDonald’s as we know it today is a result of Ray Kroc taking the entrepreneurial hamburger ‘stall’ established by the McDonald brothers, and franchising the business with Ted Turner to create an international organisation (McDonald’s Australia, 2014). In the 1950s there was significant domestic growth in the United States of America. International expansion began in the late 1960s and 1970s, initially targeting Canada, the United Kingdom and western European countries of Germany, the Netherlands and Sweden (Stonehouse, et al, 2004). The first restaurant opened in Australia in 1971 (McDonald’s Australia, 2014). In 2001, McDonald’s was one of the top 10 brands and the leading food retailer serving 46 million customers per day, worldwide (Rowley, 2004). Today over 50 million customers will consume a McDonald’s product each day (McDonald’s Australia, 2014). From...
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...Every country in the world. It has more than 30,000 restaurants in over 119 countries, serving around 50 million people every day. All businesses face challenges every day. One of the major challenges facing McDonald's is managing stock. Stock management involves creating a balance between meeting customers' needs whilst at the same time minimising waste. Waste is reduced by: Accurate forecasting of demand so that products do not have to be thrown away as often. Accurate stock control of the raw materials. Stock management involves creating a balance between meeting customers' needs whilst at the same time minimising waste. This is an increasingly tough balancing act. As customer tastes change, McDonald's needs to increase the range of new products it offers, so the challenge of reducing waste becomes even greater. Why change was needed In the past, stock ordering was the responsibility of individual restaurant managers. They ordered stock using their local knowledge, as well as data on what the store sold the previous day, week and month. For example, if last week's sales figures showed they sold 100 units of coffee and net sales were rising at 10%, they would expect to sell 110 units this week. However, this was a simple method and involved no calculations to take account of factors such as national promotions or school holidays. It took up a lot of the Restaurant Manager's time, leaving them less time to concentrate on delivering quality food, service and cleanliness...
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...at British outlets by the end of the year, amid a backlash against firms blamed for a an "obesity epidemic". Medical experts have drawn a direct link between increasing obesity and giant portions of everything from fast food to chocolate bars and crisps. A super-size portion of fries at McDonald's contains 486 calories, more than double the 206 calories in a regular serving. McDonald's said of its salad that without the creamy dressing and croutons, the fat falls away and the less calorific balsamic vinegar dressing contains just 2g of fat. A spokeswoman added: "Free of dressing a chicken salad has only 222 calories. It's the Italian cheese that makes the difference". Read more: http://www.dailymail.co.uk/health/article-299653/McDonalds-salad-fatty-burger.html#ixzz3QV8gPeGJ Follow us: @MailOnline on Twitter | DailyMail on...
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...Case Study: McDonald’s With intense domestic and intentional competition in the Filipino fast-food market, McDonald’s needs accurate demographic and geographic data in order to understand the current market situation. Challenge With intense domestic and intentional competition in the Filipino fast-food market, McDonald’s needs accurate demographic and geographic data in order to understand the current market situation. Summary Company McDonald’s Philippines is a subsidiary of the Filipino-owned Golden Arches Development Corporation. The first Filipino McDonald’s to open for business was in the Morayta university districts in Manila during 1981. These days McDonald’s is operating over 150 restaurants throughout the islands of the Philippines. Being a 100% Filipino-owned franchise allows McDonald’s Philippines to be more agile and take quicker actions, making them an even more competitive force in the Filipino fast-food market. Challenge Accurate and timely demographic data is difficult to obtain in western economies; the ability to collect this precise data is even further strained when the survey is of a developing country. With a land area of 300,000 km2 spread over 7000 islands and a domestic population of nearly 100 million people, timely and accurate demographic data requires in-depth, thorough, but quick market surveying. McDonald’s Philippines has been operating in an incredibly competitive market for over 25 years. Domestic competition from the leading local...
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...1. After updating McDonald’s corporation summary of financial data from 2003 to 2011, I found that sales were on a rise. Looking closer into McDonalds total system wide sales, I noticed that sales have been increasing since 1997. When looking even closer into the company’s total system wide sales, I found that from the year 1997 to 2010, sales over doubled. When looking at the percent change between years, I noticed that the percent change was much higher in some cases, but sales were always on the up. For example, in the year 2007 total system wide sales were up 11.9% from 2006, but in 2006 sales were only up 7.3% when compared to 2005. Overall sales wise, McDonalds has done an excellent job, in continuing and meeting new sales growth each year. 2. One of the key macro environmental trends is the recognition of the importance of heavy users of fast food restaurants. Heavy users make up 20 percent of customers but account for 60 percent of all visits. Another major change in the fast food industry is the increase in the fast-casual segment. Restaurants in the fast- casual segment include, Boston Market, Panera Bread Company, and Atlanta Bread Company. The fast casual sector is growing at a rate of 15-20% a year, because customers are willing to spend a couple dollars more for a better dining experience. Americans are beginning to eat out less compared to previous years and eating habits are changing. Part of the reason is the recession, but that should affect more...
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...CASE of NOKIA PROBLEM STATEMENT Nokia Corporation with over 132,000 employees in 120 countries, sales in more than 150 countries and global annual revenue of over $55 billion and operating profit of $2.63 billion as of 2010. It was the world's largest manufacturer of mobile phones in 2011, with global device market share of 23% in the second quarter. But Nokia's estimated share of the converged mobile device market was 31% in the fourth quarter, compared with 38% in the third quarter of 2010. The Current Scenario…. On 11 February 2011 Nokia announced a partnership with Microsoft; all Nokia smartphones introduced since then were to run under Microsoft's Windows Phone (WP) operating system. On 26 October 2011 Nokia unveiled its first Windows Phone handsets, the WP7.5 Lumia 710 and 800. Yet Nokia has reported an operating loss of $1.38 billion in the fourth quarter of 2011 due to a drop in phone sales with revenue drop of 38 percent compared to last year’s Q4 and shipments also fell to 113.5 million, a 31 percent decline from last year. The net revenue fell for Nokia’s mobile phone and its network divisions 12.6 billion in the fourth quarter of 2011 to 10 billion. In a report, industry analysts noted Nokia also faced challenges in pushing its Windows Phone products with many customers already attached to the Google Android and Apple iOS platforms. It has failed to lure in the customers since a time by its earlier projects with MeeGo with a single device in market and the Maemo...
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...McDonald’s (in 2013): How to Win Again By MGT 4800: Strategic Management March 27, 2016 Table of Contents Analysis: Focus on External and/or Internal Environments 3 External Environment Trends 3 Position in Relation to Competition 3 Formulation: Focus on Business, Corporate, and/or Global Strategy 4 Business Level Strategy 4 International Strategy 5 Implementation: Focus on Recommendations and How to Execute Them 5 Organizational Structure 5 What Role Does Thompson Need to Play? 6 References 7 Analysis: Focus on External and/or Internal Environments External Environment Trends There are several trends that could have a negative impact on the ability that McDonald’s has to sustain their competitive advantage. The first is that consumer spending habits have changed due to the economic recession. People have less discretionary funds, which inevitably leads to more careful consideration of what they buy. In addition, people are eating out less due to the 8% unemployment rate as well as the 15% underemployed rate (Rothaermel, 2015, p. 534). The second trend is rising health concerns. With consumer preferences switching from beef over to other lean meats, the gluten-free movement, and the Patient Protection and Affordable Care Act which stipulates that all nutritional information must be displayed on the food menus; it is difficult for a fast food restaurant to continue to grow without making changes (Rothaermel, 2015, p. 534). Finally, the increasing supply...
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...: “information is power and it is for sale now “ Nowadays with the global economy and enterprises shift and emergence of the digital organizations makes a necessity in business today especially in the decision making process, it is important many reasons such as operational excellence ,the customer intimacy new products and business models : information system is very useful to enhance the way the company produces , delivers and sells to create wealth. Improved decision making , the competitive advantage or even the concern of survival. We will see below how does IT help McDonalds to minimise the threats based on the porter 5 forces and how does it enhance their value chain 2-Introduction: McDonald’s corporation is global company of fast food restaurants spread in 119 countries and serving around 68 million of customers every day via 32000 places . founded in 1940 by Richards and Maurice McDonald in San Bernardino in California , they started with the famous American style of ‘car hops ‘, 8years later under the pressure of a full menu and the increasing customers they decided to follow the idea of a limited menu “ only ham and cheeseburgers fries and drinks “because it was cheaper and could be cooked quickly , which led to an increase of customers...
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