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Mcdonalds operational advantages
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McDonald's Corporation Case Study Analysis
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Much like a smile, the “Golden Arches” can be understood in any language. The McDonalds brand is the most well-known, internationally embraced fast food empire. McDonalds operates over 31,000 franchises throughout the world, with the United States leading the way with a whopping 13,381outlets as of May 2009 [1]. McDonalds has the fast food market cornered, offering an increasing variety of food of beverages, marketed to people of all ages to eat at any time of the day. However, being a corporate giant has its issues. McDonalds has faced a lot of criticism for its high-fat, high-sugar, potentially addictive menu. While the corporation is not likely to outright admit responsible for its actions, McDonalds has seen some changes to address some of the issues. Despite the flaws in the public elements of the brand, McDonalds has established an almost recession-proof economic base [2]. Some of the benefits of the McDonalds brand are pretty obvious. The golden arches and the mascot Ronald McDonald have some the best recognition worldwide. This stems from the benefit of having global operations and the availability of culturally diverse foods that are provided based on the location of the restaurant [3]. McDonalds also utilizes installations in prime locations such as theme parks, airports, superstores and even in hospitals. The business is ranked number one in Fortune Magazine's 2008 list of most admired food service companies [4]. McDonalds is also associated with cheap prices, good tasting food and fast service. McDonalds also maintains a strong community oriented vibe with its Ronald McDonald Houses which provide charitable services to families with sick children requiring extended hospital stays (www.rmhc.org). McDonalds also sponso... ... middle of paper ... ...y are creating "cradle to grave" marketing, entice children as young as one year old with special meals, toys and playgrounds then children grow up eating McDonalds which continues into adulthood. [4] They have also been sued multiple times for having "unhealthy" food, allegedly with addictive additives, contributing to the obesity epidemic in America. McDonalds is a strong company that has been around a long time and is ingrained into the memories of many people. They have indisputably strong brand recognition and loyalty. However, it may be time for McDonalds to undergo a makeover, especially in the areas of quality and their link to health concerns. It is pretty clear that McDonalds isn’t going bankrupt anytime soon. McDonalds has the ability to do good things for the world if they exchange some of their money saving ways more socially responsible practices.
McDonald’s mission has always been to give the best food for the lowest price – a value for money statement. It provides affordable menus in thousands of outlets across the world. In the past decade it saw a bigger threat from competitors such as Burger King, local fast-food chains and other segments of the food service as well. The change in competitive landscape led McDonald’s to put efforts towards menu diversification and restaurant renovation in order to improve the in-store experience. Their new positioning focused on great food at an enjoyable (I’m lovin’ it!) ambiance. A strong brand directly influences sales results in the food industry.
It has been noticed throughout the running of McDonald’s that they tend to market to the eyes of children with Ronald McDonald as their notorious “spokesclown” that is recognized by 96% of American children. Also, in 1998, McDonald’s signed a long-term deal with the Walt Disney Company to include Disney merchandise as giveaways in its Happy Meals.
Mcdonalds is one of the biggest and largest fast food chains in America, it can be viewed as a cultural icon. The principles of McDonalds as a business has a tremendous influence on every aspect of a culture. The business characterizes American Culture through the impacts on our society and economy.
In many ways, McDonald’s is the model business empire. All-American food, speedy service and a perceived value for money all go some way to explaining why the giant corporation continues to pack in diners to its restaurants every day. Nothing seems to dent the popularity of the mighty Big Mac, even under the pressure of harsh criticism that golden arch still stands tall. Somethings however you just can 't ignore on many different accounts very disgusting things have been found inside of different items on the menu. “Katherine Ortega bought a large order of nuggets from a Newport News McDonald’s and took them home to feed her kids, only to shake a deep-fried chicken head out of the box and onto the plate. That’s not white meat, obviously.”(K
With strength ultimately comes weakness and McDonald's has its fair share, especially in the last few years. Many weaknesses are due to the external environment which includes market saturation, increased price competition, and food and labor costs. These weaknesses affect many firms in the fast food industry so McDonald's is trying to effectively combat these forces using a differentiation strategy. Developing new products such
When Ray Kroc opened his first restaurant in Des Plaines, Illinois, the famous chain was born. The company has become very successful with having sold over one billion hamburgers within just eight years of business (McSpotlight - History of McDonalds). So if this chain is so popular, why has McDonalds been criticised so much lately? Mostly because their food options are very high in calories and fat. The most caloric item on their menu is the Triple Thick Chocolate Shake - 1160 calories, 27g of fat, 168g of sugar, and 510mg of sodium. The most fattening menu item is the Double Quarter Pounder with Cheese - 740 calories, 42g of fat (19g Saturated), and 1380mg of sodium! “It delivers the highest calorie, fat, and sodium content of any sandwich or burger at McDonalds.” The other three most unhealthy foods on the top five list are: Chicken Selects with 660 calories, Grilled Chicken Club with 570 calories, and the Big Mac with 540 calories (Fitzpatrick). Only seven items on the McMenu contain no sugar - fries, sausage, coffee, Chicken McNuggets, hash browns, Diet Coke, and iced tea (Super Size ...
MCDONALDS founded in 1940 , One of the largest fast food restaurant company with more than 32000 restaurants serving over 69 million customers daily in over more than 100 countries . Largest and most diverse geographical segment spanning over 80 markets across parts of Asia , Europe , Middle East and Africa and Latin America . They serve the best quality of food to the customers hamburgers and fries are always been at the front of the menu also they serve a large verities of deserts , hot drinks and cold drinks . Burger king , subway , kfc , pizza hut , Wendy's etc . . are some of the competitors of MCDONALDS
...-service supermarkets, also leading people to go to McDonalds®. Healthier food can often times be more expensive. McDonald’s® food, although cheap and tasty, is unhealthy and doesn’t fill you up as well as a true dine in restaurants or expensive healthy food. The evidence of hunger and obesity as sidekicks is incriminating.
Within saying this, each McDonalds fits the lifestyle and trends in each country differently. In the US, McDonalds seems to be the most unhealthy place to go. People are more worried about what money they could
McDonalds over the years has defended its unethical practices and those of their franchisees, they have been slapped with numerous lawsuits for various violations w...
First, my personal reaction to this is documentary is an eye opener. I knew McDonalds was more harmful to than other fast food places, but I never knew about the lawsuit between McDonalds and it consumers. I never saw McDonalds as having big impact on my life; this is probably because the McDonald’s in my hometown never had a super-size option. In the video, Spurlock conducted interviews to gain ...
McDonald's is the world's leading food service retailer with more than 30,000 restaurants in 118 countries serving 46 million customers each day. It is one of the most well-known and valuable brands and holds a leading share in the globally branded quick service restaurant segment of the informal eating-out market in virtually every country in which it does business. Problems Faced By McDonalds And The Public Opinion Of McDonalds For many years, McDonalds enjoyed worldwide success built on a few well-known, highly standard conditions. The company with the Golden Arches served a simple menu- hamburgers, French fries, and milkshakes or soft drinks. The food was priced low, its quality was consistent, and it was served speedily from establishments that all looked alike and were extremely clean. However in recent years, McDonalds has seen its growth rate slow down and its dominant market position slip. There are various reasons for this. The main reason is the several allegations made against them by environmentalist and health experts. These allegations are: Destruction Of Rain Forests McDonalds sells beef. Many beef suppliers get their beef from Central and South American countries. These cattle farms are usually placed on rainforest land that had been cut and cleared. The poor soil of the rainforest can only sustain life (grain for the cattle to fed upon) for up to a decade (although the mean is 2 years). The beef suppliers must move their farms every few years and consequently destroy more rainforest. Rarely does the forest re-grow, even if replanted. 70% of the moisture that makes a rainforest a "rain" forest originates from the transpiration of the leaves on the vegetation. Once that vegetation is removed for a few years and...
McDonalds provide high quality products, such as burgers, fries, drinks, muffins, etc, which are safe and reliable that it does what it is supposed to do, but not only does the quality of the products matter, the good value for money affects the business. E.g. buy one extra value meal and get one free with a food voucher that represents the offer only. They ensure that a high standard of the product is carried out at all times and they try to compete very competitively with other fast food businesses with their good value for money. Also a customer would know if the product is good value for money by checking in another food outlet like KFC for their services and products.
In today’s market, McDonalds faces numerous challenges such as fierce competition, a more health conscious customer, and the continual need for improved customer satisfaction and menu. McDonalds needs to go through some changes in order to remain ahead in the fast-food industry.
Overall, McDonalds are able to reach customers all around the globe and they market their products inexpensively. According to Naim (2001, p. 1) it is acknowledged that, “McDonald 's is a global brand, but we run our business in a fundamentally different way that ought to appeal to some critics of globalization. We are a decentralized entrepreneurial network of locally owned stores that is very flexible and adapts very well to local conditions. We offer an opportunity to entrepreneurs to run a local business with local people supplied by a local infrastructure. Each creates a lot of small businesses around