...Factors | Opportunities | Demographic | * (O) Fast food saves time and efforts of people so it’s a good meal for people. (Bose, 2012) * It is an opportunity for fast food industries as it is a ready to eat food and people who go on work prefer to eat it as it saves their time. * (T) Large percentage of baby boomers is becoming threat for fast food industries. . (generation in the workplace in the united states and canada, 2012) * 31.9% of the whole Canadian population is covered by Baby Boomers and they don’t prefer to consume fast food which is going to be a threat | Socio-Culture | * (T) People are stepping backward from fast food which is going to be a big threat in future (Lojitmairembam, 2013) * Now, people are becoming more health conscious. They are stepping back from fast food as it does not contain any vitamins, minerals and fibres and this going to be a threat for fast food industries industries in future. | Economic | * (T)Increasing minimum wage rate is going to be a threat for the fast food industries. (Drum, 2013) * As the minimum wage rate increases for the fast food workers than the fast food industries have to pay more to the worker which decrease the profit margin of the industries. * (T)Inflation and exchange rates are the other threats for fast food Industries. (Rodrigo, 2012) * Inflation rates and exchange rates both effects the supply and demand relationship of raw material which directly affect the industry’s production...
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... Module : Strategic Management Coursework Title : Examining Strategic Management for Chicken Delight Ltd Date Of Submission: 23 April 2015 Lecturer: Mr. Narain Presented by: Ramdin Devesananda INTRODUCTION It is the beginning of a new era that the fast food industry has gradually breakthrough the Mauritius lifestyle. Due to the globalisation process, many fast food franchises are now available in Mauritius. Whether these fast foods have revolutionised Mauritius, today these products form part of our lifestyle and culture. People rely on their convenience to enhance their lives and productivity. But in the fast and increasing competitive business environment of today, the right marketing approach is necessary to compete with competitors. The ability to develop effective marketing strategy which enable the firm to become more responsive and adaptable to the market will perhaps more than ever before, differentiate the winners from the losers The rational of developing marketing strategies is to respond to the increasing high demand in fast food and to eventually increase the market share of chicken Delight Ltd. The answer lies in the fact that Chicken Delight Ltd franchise is in the fast food industry, selling fried chicken, chips and burgers, and its main and direct competitor is Kentucky Fried Chicken. Chicken Delight Ltd is relatively new on the Mauritian market and Kentucky Fried Chicken has already position itself in the mind of customers since it (KFC) was...
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...External Factor Evaluation Paper Example 1: Dell Computer Key External Factors Opportunities Increasing demand for Speed, Memory and Graphic Capability Increasing demand for Portability Emergence and early popularity of "Tablet" Products Improving outlook for PC sales Increasing focus on cost reduction Increased Use of Wireless Technology Increase in Strategic Acquisition Increasing Demand for Green Products Threats Increase in Competition Increasing interest in longer battery life Expansion of Business Models to incorporate new lines of business (Related Diversification) as the core business matures Decline in Netbook Sales Total Analysis of the External Environment Every company deals with internal and external factors that affect their business. These external factors involve trends related to things such as oil price changes, political instability, government regulation and many more. External environment impacts every company; it’s all about how every company adjusts to external trends and prepares for them before they occur. The best companies always try to anticipate these external factors and respond strategically to them. There are two types of trends: the ones that can offer the company strategic opportunities and the ones that provide threats. By identifying opportunities and threats, companies can protect themselves from future harm and take advantage of opportunities as they emerge. There is a set 0.1 0.06 0.07 0.08 1 2 2 4 3 35 0.2 0.12 0.28 0.24 2.92 Weight Rating...
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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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...Case 25: KFC and the global fast-food industry (1) Using the five forces model, assess the strength of each force within the fast-food industry. The fast-food industry includes group of companies that are offering different products and services, which satisfy customers’ needs. These products and services might be considered as close substitutes for each other. Therefore, the critical task of managers is to analyze the competitive forces in the industry’s environment in order to identify the threats and opportunities that the firm can protect or get benefit from. Porter’s five forces model helps manager to identify and analyze the competitive force within the industry. This model stated that the increase in the strength of a particular force limits and reduces the ability of established companies to increase their prices and earn more profits. By using this model, managers would be able to identify new opportunities or threats that might affect their businesses’ operations. The five forces model includes the following: 1- Risk of entry by Potential competitors. Potential competitors are companies that are not currently operating and competing in a certain industry, but they are expected to enter the industry as they have the capability to compete with other companies if they choose. Potential competitors might face some difficulties or barriers that are formed by established companies that are already operating in the industry (incumbent companies) to discourage them...
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...multinational fast food giant McDonald’s Corporation, with particular attention paid to the corporation’s situation in China. Given the disparity in cultural foods between Western countries like the United States, and China, and that McDonald’s food very much reflects food preferences in the U.S., it is very interesting to see how McDonald’s works to capture China’s attention and takes hold in the Chinese market. This case study includes: a company profile of McDonald’s; a situational analysis; a SWOT analysis that performs an investigation on internal and external circumstances of the fast food chain in China and Hong Kong; an identification of some of the problems that the chain is facing in China; possible solutions to the identified problems. McDonald’s: Company Profile McDonald’s Corporation was established in 1955 in the state of Illinois. The corporation franchises, operates and develops a global network of restaurants, that each sells a limited menu of value foods. McDonald’s is the most popular ‘fast food’ service retailer in the world, with more than 30,000 restaurants in over 119 countries serving approximately 50 million people every day (McDonald’s, 2005). Popular menu options include the Quarter Pounder, Big Mac, Happy Meal, Egg McMuffin and Chicken McNuggets, as well as a large range of other menu options including fries, chicken sandwiches, salads and sundaes at reasonable prices that the majority of people can afford. The corporation is well known for its fast service...
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...House of Kebab Contents 1 Introduction 2 1.1 Company Summary 2 1.2 Company Ownership 3 2 Five Forces Model and Analysis 4 2.1 Barriers To Entry 5 2.2 Supplier Power 8 2.3 Buyer Power 10 2.4 Threat of Substitutes 11 2.4.1 The Threat of Substitutes are High 11 2.5 Rivalry among Existing Firms 12 3 Conclusion 17 INTRODUCTION House of Kebab is a locally owned fast food outlet that will be positioned as an international franchise through our creative approach to the company's image and detail presentation. House of Kebab will provide a combination of excellent food at value pricing, with fun packaging and atmosphere. House of Kebab is the answer to an increasing demand for kebab and shawarma fast food. In today's highly competitive environment, it is becoming increasingly difficult to differentiate one fast food outlet from another. Our main priority is to establish one outlet in Kuala Lumpur, preferably in one of prominent housing estate. Later, our effort will be a further development of more retail outlets in the surrounding area. House of Kebab will entice youngsters to bring their friends and family with our innovative environment and our main focus will be serving high-quality food at a great value. COMPANY SUMMARY House of kebab sells specially made shawarma sandwich-like wrap usually composed of shaved lamb, goat, chicken, turkey, beef, or a mixture of meats and kebab which consist of thin slices cut from a cylindrical block of minced...
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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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...in the TOWS matrix are the strength, weaknesses, opportunities, threats and cross matching of these analyses to develop strategies that can be used to enhance situations that may be derived from advantages or improve situations that may cause disadvantages. The strengths that are identified are that Mc Donald’s is a fast food franchise company which takes consideration over the nutritional facts and values of the food that they provide for the consumers. Apart from that, another marketing strength that they have is that they have penetrated the fast paced market by providing delivery services. This delivery services can be obtained at any point of the day as it is a 24-hour service. Mc Donald’s also practices Corporate Social Responsibility to aid the Earth and conserve its resources as well as contributing to society. Weaknesses of Mc Donald’s are that they no doubt a fast food company and that the public are aware that this type of food is unhealthy. The freshness of the products may impose a concern as sometimes, the food that is purchased from Mc Donald’s tastes soggy. In the staff aspect, the Mc Donald’s workers are not paid very high whereby this may affect their performances. Opportunities that can be derived for Mc Donald’s is that they are a large chain company who adheres to the rules and regulations of the countries that they have penetrated in the local market. In Malaysia, there are consumer rules that food must have a minimal nutritional value to be sold...
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...will make our analysis of internal environment of KFC. In the last section, we will give our recommendation to KFC to help them further success. The more detailed information are as following. 2. Issues and Outlook Profile KFC is one of the world's largest fast-food chains, which held more than 55 percent of the US market in terms of sales. It is also one of the first fast-food chains to go international. Nowadays, KFC operates more than 5,200 restaurants in the United States and more than 15,000 units around the world (Loh, 2009). KFC's early international strategy was to grow its company and franchise restaurant base throughout the world. By 2000, however KFC refocused its international strategy on several high growth markets such as Canada, Australia, China, Thailand and so on. KFC planned to base much of its growth in these markets on company-owned restaurants, which gave KFC greater control over product quality, service and restaurant cleanliness. In other international markets, KFC planned to grow primarily through franchises, which were operated by local business people who understood the local market better than KFC (Loh, 2009). Although KFC remains the largest player in the growing segment of fast-food chicken, its share continues to drop, according to Technomic. KFC's market share tumbled six full points since 2005 to 30% in 2009, while the category grew from $14.5 billion to $16.1...
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...in the restaurant industry? How has this unique position contributed to the firm’s success? Do you think Panera Bread will reach its goal of becoming a leading national brand in the restaurant industry? Why or why not? Panera Bread has established a unique position in the restaurant industry by developing itself with various approaches. First of all, Panera Bread has observed the consumer always wanted good food quality and speed services. This has given the Panera Bread an opportunity to reposition itself by joining the concept of fast food and casual dining category. This category provided the consumer the alternative they wanted by capturing the advantages of the both categories. Besides, with the good timing which became the first mover to this new category also led itself to this favorable position. This new category has made Panera Bread’s position not only unique but also contributed to its success. Panera Bread did a lot of things to distinguish itself from its rivals such as adding specialty food, different menus, catering service, new time suggesting of specialty food and providing inviting neighborly atmosphere. According to the text, Panera Bread serves nearly six million customers a week systemwide and become one of the largest chains. This shows that the unique position has contributed to its success. In my opinion, I think Panera Bread will reach its goal because the company is relying on its unique position strategy, its signature foods and savvy execution...
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...EXECUTIVE SUMMARY Jollibee Foods Corporation (JFC) is the parent company of Jollibee, a fast-food restaurant chain based in the Philippines. Among JFC's popular brands are Jollibee, Chowking, Greenwich, Red Ribbon, Manong Pepe's and its recently acquired local fast-food Mang Inasal. Since its inception, Jollibee has become an increasingly profitable fast-food chain with 1,921 (Jollibee 702, Chowking 406, Greenwich 221, Red Ribbon 215, Delifrance 23, Mang Inasal, Manong Pepe 15) store branches in the Philippines and 395 in other countries employing 29,216 workers. Including all its brands, JFC has 1,804 stores worldwide and total sales of more than Php 52 billion as of December 2010. Despite owning 52% of the total local Quick Service Restaurants, the competition with its rival firms is still stiff. The source of rivalry stems from price wars and marketing innovations. The rivalry is also centered on the KSFs (Key Success Factors) of the industry, which are good food, good service and reasonable pricing. Rivals are somewhat equal in capabilities and opportunities, thus making the competition stiffer. Moreover, standardization of service contributes to the intensity of rivalry. INTRODUCTION Fast food, also known as Quick Service Restaurant (QSR) is the term given to food that can be prepared and served very quickly. While any meal with low preparation time can be considered to be fast food, typically the term refers to food sold in a restaurant or store with...
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...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. As we know about McDonalds, and the background as I said above, let use the SWOT analysis method to analyze McDonalds. Strengths As we know, McDonalds is a strong brand of fast food restaurant in...
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...| McDonald’s: Polishing the Golden Arches Case Analysis by Amber Zirnhelt © 2006 Amber ZirnheltOriginally Submitted for Management 680: Corporate Strategic Planning and Policy Professor Frank ShipperPOLICY AND FUNCTIONAL STRATEGIES McDonald’s has been an industry leader within the fast food industry for years. In the introductory phase of their business operations they focused on following a generic low cost strategy consisting of offering consumers low priced food products in order to, “make eating out on a regular basis affordable for families…” (Marino 627). Faced with changing consumer trends and competitors pursuing aggressive competitive strategies focused on product differentiation and quality; McDonald’s then CEO, Jim Cantalupo, determined in order to address the companies recent profit losses and challenges a different stand on generic strategy must be taken. Through the implementation of McDonald’s Plan to Win strategy, Cantalupo shifted the company’s generic strategy to differentiation by focusing on marketing to turnaround the negative publicity recently experienced through offering customers a better overall fast food experience as compared to their competitors. McDonald’s financial strategy focused on decreasing capital expenditures by 40% while using their cash from 2003 operations to pay off debt and return cash to stockholders. These financial strategies have allowed the company to implement the Plan to Win strategy while also improving...
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...which is Strengths, Weaknesses, Opportunity, and Threats of the McDonalds. Strengths and weaknesses is internal environment, while opportunity and threats is external environment. Lastly, we suggested some recommendations to improve the situation of the McDonalds. 1.0. COMPANY’S BACKGROUND According to McDonalds (2014), McDonald’s is the global leading fast food retailer with more than 35,000 restaurants serving approximately 70 million people each day in more than 100 countries. There are more than 80% of restaurants worldwide are franchised by independent local franchisees. McDonald’s arrived in Malaysia in December 1980 and McDonald Corp. gave their license to Golden Arches Restaurants Sdn Bhd (GARSB) to open McDonald's Restaurant in Malaysia by Tan Sri Vincent Tan. Since then, McDonald’s Malaysia has about 196 franchise outlets nationwide and is currently expanding annually. It has created over 7000 job opportunity since they arrive in Malaysia over the years. (ifranchisemalaysia, 2014) 2.0. SWOT ANALYSIS 2.1 STRENGTHS According to Strategic Management Insight (2014), McDonalds has strong brand name, reputation and considered the first one who entered to fast food industry compare to other companies in Malaysia. According to McDonalds (2014), McDonald’s success is base on a foundation of integrity. There are hundreds of millions of people around the world trust McDonalds. McDonalds earn that trust everyday by providing safety food, respecting our customers and employees...
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