McDonalds is one of the most well known fast food restaurants in the world. It is so popular that it sells seventy-five hamburgers every second and is shockingly also the worlds largest toy distributor (Lubin, and Badkar.) The powerful company is an overwhelming influence not only in the worlds economy, but also the worlds holistic lifestyle and health; therefore, McDonalds must be carefully monitored-carefully monitored meaning every move, every change, every single action the company makes needs to be a healthy one. Since the McDonalds business is unbelievably large, it has to manufacture a lot of food, and in a fast food business more in numbers means lower quality. But the food served isn’t lower quality.
McDonald’s SWOT Profile I would be further discussing the McDonald’s SWOT profile to better understand the company’s situation. This would evaluate the company’s overall performance. Strengths McDonald’s has the largest fast food market share in the world. As mentioned, it serves 68 million customers every day in 119 countries, allowing it to be the second largest outlet operator with more than 34,000 outlets. Brand recognition is valued at $40 million.
Outback Steakhouse Case 1) What are the standout business and economic characteristics of the restaurant industry? * Restaurant-industry sales are forecast to advance 4.5% in 2003 and equal 4% of the U.S. gross domestic product. * The overall economic impact of the restaurant industry is expected to exceed $1 trillion in 2003, including sales in related industries such as agriculture, transportation and manufacturing. * Food and Drink revenues were estimated at $426 billion. * More than seven out of 10 eating-and-drinking places are single-unit (independent) operations.
In this industry, the most lucrative segment is leisure which has a market share of 71.1% (MarketLine, 2012). Sunshine Inn (fictional) is a small independent hotel that operates within the leisure segment of the hotel and motel industry in the United States. It is an adventure-themed hotel situated along the California-Nevada border in order to capture the tourist market for Lake Tahoe. Sunshine Inn has 30 bedrooms and 15 suites and offers specialty home-cooked type meals to guests for breakfast, lunch and dinner. It must be emphasized that the hotel and motel industry is one of the most fiercely competitive in the United States, and in fact, in the world (Johanson & Cho, 2009; Kosarkoska, 2010).
Table of Contents McDonald’s Corporation 2 Brief Description 2 Business Model 2 Calculations of ROE 3 Porter’s five forces 3 Competitive Rivalry 3 Threat of Substitutes 4 Threat of new entrants 4 Buyer’s power 4 Supplier’s Power 4 Sustainable Competitive Advantage 5 Long term Prediction 5 References 6 McDonald’s Corporation Brief Description McDonald’s Corporation headquartered in United States is the largest chain of fast food restaurants and with more than 34,000 local restaurants around the globe . It has around 1.8 million employees and was founded in May 1940 in San Bernardino, California and in April 1955 in Des Plaines, Illinois . Some of the top selling products of the firm are burgers, French fries and other fast food products which are commercialized by the firm. Don Thompson is the current acting president and Chief Executive Officer of the firm. Business Model The firm describes its business model as follows “Our business model is depicted by our three-legged stool of owner/operators, suppliers, and company employees, is our foundation, and balancing the interests of all three groups is key”.
“Baja Fresh & Taco Bell” In today’s increasingly competitive marketplace businesses must be very creative in their marketing strategies in order to attract as much business possible. Companies spend a tremendous amount of their budget on advertising, soliciting, marketing and selling their products and / or services. Businesses that aren’t creative don’t appear to succeed as much as those that produce good marketing campaigns. Fast food restaurants are one of the most recognized businesses. It appears that at just about every major intersection you’ll find some sort of fast food establishment.
McDonalds revenues rely entirely on the success of privately McDonalds owned-restaurant revenues, royalties, rent, and franchisee fees. In 2012, the company had approximately $27.5 billion in sales and $5.5 billion in earnings. The key to success of these thrilling numbers lay down at the skeleton of the business model of McDonalds. The so-called “ Three legged stool” skeleton of the business mode... ... middle of paper ... ...to action”. This may be to: buy the product, visit a restaurant, recommend the choice to a friend or increase purchase of the menu item.
They really do not rely distributors as large restaurants do. Threat of new substitutes: The restaurant industry is segmented into many parts: full service restaurants ($120 billion); quick- service restaurants ($110 billion); away-from-home managed institutions, examples: food services for schools and hospitals ($21 billion); and other food industries ($106 billion). (Marshall Jones, 1999). Rivalry among competi... ... middle of paper ... ...que product differentiation but find ways to reduce cost to stay ahead. There is not a perfect solution in the industry.
Finding new ways to adapt to the development of technology can increase restaurant ‘s profit. Threats Legal threats including lawsuits against the restaurant against out advertising, meals, obesity caused by our food, employment etc. Competition from major food chains likes McDonald's, Burger King, KFC and mid-range local restaurants. The global economic crisis may make people lose income. They may prefer eating at home than eating at
There are different ways you can get finance to start off the restaurant business like a loan from friend, a loan from bank and grant's from states or cities. The last resources that an individual need in order to operate a restaurant is a lot of information about restaurant business like what kind of restaurant is good for this location, what kind of thing he is going to put on his menu and how much each an every thing gone cost. All these things look simple and ... ... middle of paper ... ...you just open a brand new restaurant and don't have a parking place there are more chances you might end up closing the restaurant. Advertising: In the restaurant business advertising plays a major role this will increase the income of the restaurant. The more people hear about the restaurant more will come.