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how the processes of “McDonaldization” shape socio-cultural and economic conditions of today’s world,
McDonald's business strategy analysis
how the processes of “McDonaldization” shape socio-cultural and economic conditions of today’s world,
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When society thinks about the local McDonald’s, they probably do not think “innovation’. That is because everyone has become accustomed to the many novelties that McDonald’s has introduced over the years. Some people do not even know that McDonalds was the leader in innovation being the first major international fast food restaurant, with the first drive-through window. What many people do not realize is that McDonald’s continues to drive innovation in fast food. Some times the innovation is well advertised, but other times they are designed so that customers will never even notice (Ritzer, 2004). This paper examines the effects that optimal product positioning strategies have on innovation and creativity for retail outlet locations in the fast food industry. The global fast food powerhouse McDonalds has been the biggest marketer of fast food since 2004, with over 31,000 restaurants in 120 countries, brining in 47 million customers per day (Ritzer, 2004). The relationship between profits and product differentiation reveals that McDonalds is better than most fast food chains at competing locally and globally in large market areas. Ritzer defined this as McDonaldization which is a process by which the principles of fast food restaurants is to dominate more and more sectors of American society as well as the rest of the world (Ritzer, 2004). In large markets such as India with limited competition, McDonalds had the challenge of addressing flavor immigration through global cuisine. For McDonalds converting was going to involve various forms of selection and different taste buds, delivery as well as compatibility. A fast food chain such as McDonalds may market a general menu but in countries like India this chain still needed to... ... middle of paper ... ...ing big, start small, scale fast” growing customer innovation at McDonald’s. , from EBSCOhost Direct database. Hanacek, A. (2007). Unique approaches to innovation: McDonald’s relies on ‘a strange, but beautiful relationship’ to bring new ideas to the marketplace. Snack Food & Wholesale Backery. Retrieved July 23, 2010, from http://www.allbusiness.com/retail-trade/food-beverage-stores-specialty-food/4510323-1.html Murphy, C. (2008). 10 Most Admired for Innovation. Fortune. Retrieved July 08, 2010, from EBSCOhost Direct database. Ritzer, G. (1993). The McDonaldization of Society. Newburry Park, CA. Pine Forge Press. Stamm, B.V. (2008). Managing Innovation, Design and Creativity. John Wiley & Sons, Ltd. Thomadsen, R. (2007). Product Positioning and Competition: The Role of Location in the Fast Food Industry. Marketing Science. 26(6), 792-804.
The McDonaldization Thesis presupposes some familiarity with Ritzer's earlier work, The McDonaldization of Society (1993), in which he defines McDonaldization as "the process by which the principles of the fast-food restaurant are coming to dominate more and more sectors of American society as well as the rest of the world" (1). These principles include efficiency, predictability, calculability (or an emphasis on quantification), and control (especially via non-human technologies). Taken together, they constitute the formal (functional or instrumental) rationality that undergirds McDonaldization. In the present work, Ritzer continues to sound the alarm by depicting McDonaldization as "a largely one-way process in which a series of American innovations are being aggressively exported to much of the rest of the world" (8).
McDonaldization is the process in which the principles of popular fast food companies such as McDonald’s are appearing throughout the world in many aspects of our modern society. As McDonaldization sweeps across the globe, The authors of McDonaldization Revisited argue that “‘Americanisation’ is so often a synonym for cultural decline” (Alfino, Caputo, & Wynyard , 1998, p. 8). George Ritzer claims that this is due to the rationalization of society as McDonaldization is meant to signify the optimal fusion of efficiency, calculability, predictability, and control (Ritzer, 2011). The intricacies of the human touch are utterly eliminated from this process, and what is left is an uninviting, cold, and unforgiving concept. When the novelty of something so foreign and American wears off, adaptation is needed to sustain one’s position in other countries. One research design type that researchers might utilize to view McDonaldization would be observation of the adaptation and cultural assimilation across different parts the world. This can be measured with ethnographies, the systematic study of the customs of people and cultures.
Consumers’ interests for hamburgers and fries have been steadily decreasing to favor sandwiches, which gives Subway a competitive advantage over competition such as MacDonald’s or Burger King, for example. While most fast food restaurants react to this phenomenon by modifying their menus to include healthier choices, Subway benefits from the 15% annual sales growth of sandwiches compared to a lean 3% growth for hamburgers and steaks (McCarty, 2007). The United States...
"The McDonaldization Thesis: Explorations and Extensions. George Ritzer. London: SAGE Publications, 1998." indiana.edu 20 Feb 2014
Ritzer explains that the way McDonald’s runs their entire corporation has been perfected to the form known as McDonaldization. According to Ritzer, this is “the process by which the principles of the fast food restaurant are coming to dominate more and more sectors of American society as well as of the rest of the world” (Ritzer 5). McDonaldization has the four main components: efficiency, predictability, calculability and control of non-human technology. The first, efficiency, is the “optimum method for getting from one point to another” (Ritzer 15). The second portion of McDonaldization is the calculability which according to Ritzer is the “emphasis on the quantitative aspects of products sold (portion size, cost) and services offered (the time it t...
In order to open the Indian market, McDonald has to follow the local culture to make some improvements to the menu. Of course, McDonald also adds curry dishes and other local specialties in the menu.
A world without the Big Mac, Happy Meals, Chicken McNuggets, and the phrase “I’m lovin’ it,” is almost inconceivable. People around the globe have become accustomed to the high gleaming golden arches that make up the famous emblem for McDonald’s. McDonald’s has grasped the concept that culture flows from power. In this case, the American culture flows through the veins of this fast-food giant and the more that is supplied, the greater the demand. It is no secret that McDonald’s has become one of the world’s largest fast-food retailers. It has become a well known icon that has played a huge part in globalization, with chains located in many different countries… transforming the meaning of fast-food all around the world.
Critically analyse Ritzer’s theory of ‘McDonaldization’ and the associated term ‘McJobs’. To what extent do you agree with Ritzer’s argument that a ‘McDonaldization of Society’ is occurring in modern times, said to be characterized by the increasing rationalisation of work organisation? Illustrate arguments with practical real-world examples.
McDonald’s workforce consist of 73 percent women and people of color making, 43 percent of them are franchise staff and 55 percent are suppliers; additionally, the company has two stores opening everyday in China (Singh, 2010). Furthermore, Lee and Kye-Sung (2000) states 49 percent of McDonald’s total revenue comes from the international market. Gibison (2008) states in order for McDonald’s to reach and increase consumers from diverse backgrounds and different cultures the company tailor its menu by added specialty food for different countries and cultures. An example is the company...
In France, McDonald’s has more than 1,200 restaurants in France and yet even the chain’s success serves as a proof that French consumers continue to appreciate more their traditional kinds of food and ways of life, even in a contemporary, globalized society. In the article “Born in the USA, Made in France: How McDonald’s Succeeds in the Land of Michelin Stars”, Lucy Fancourt, Bredesen Lewis and Nicholas Majka remind us that the reason of McDonald’s success in France is due to the fact that it has redefined itself as a French company that is constantly looking to adapt to the needs and preferences of the French culture. Some of these adaptations include tailoring its menu to the French palate, creating friendly and comfortable interiors to encourage long-meals, introducing the McCafé, baguette sandwiches and many
"Studying McDonald's ABroad: Overseas Branches Merge Regional Preferences, Corporate Directives." Editorial. Nations Restaurant News 11 Nov. 2005: n. pag. MasterFILE Premier. Web. 5 Mar. 2013.
KFC is one of the most popular fast-food restaurant chains by the Yum! Brands and fried chicken is what the company specializes. KFC was founded by Harland Sanders, which was later known as Colonel Sanders. Moreover, KFC was one of the first fast-food restaurant chains to expand internationally, including the opening outlets in Beijing, China, in November 1987 (KFC Website, 2013). The fact that KFC was the first Western fast food company in China makes it very challenging to satisfy the Chinese market. Trying to sell the same products or services is a typical approach to most foreign expansion for franchise businesses (Bell, 2011). However, one-size fits all approach is not what KFC chooses to apply for their company. According to Shelman, the writer of the case study regarding KFC’s Explosive Growth in China, key success for KFC China is to change the menu to suit Chinese tastes and style of eating (Starvish, 2011). “One of the lessons I take away from this case is that to ...
McDonalds also uses diversification in its global marketing. McDonalds recognizes that different countries have different values, customs, and tastes. Therefore, McDonalds satisfies these diverse global tastes by diversifying the menu according to each country’s unique preferences. This added diversification tactic, allows McDonalds to stay competitive in a global market. Examples of McDonalds globally diversified menu would be that McDonalds offers an exclusive beefless menu to its customers who live in India. This is because eating beef in India is sacrilegious. To meet the tastes of customers in India, McDonalds created new offerings such as the “Pizza McPuff” and the “McVeggie.” McDonalds considers the cultural tastes in every country it opens its doors
CHANGING PREFRECE depended vastly on the fast food manus. For example we can mention about SALAD. Now salad was never considered as a part of fast food menu. But with the change of taste and preference, fast food chains like Windy, Taco Bell, and McDonald have introduced SALAD into their menus. This preference is not stopping only with salads. In 2002, McDonald’s introduced great tasting new products including premium salads, n salads plus menu; Chicken McNuggets made with white meat; Fish McDippers; Chicken Selects; and new breakfast offerings like the McGriddle sandwiches. Here as a fast food chain, McDonald did not have to introduce new dishes in their menus but with the impression and image in the market analysis, of increasing demand and chan...
Innovation is an important aspect of business today. It is important for companies to be innovative in order to stay competitive with their competitors. Innovation can come in different forms depends on the company’s objective. KFC, one of the most popular fast-food restaurants by the Yum! Brands, chooses to be innovative for their business model. Although, there is a huge amount of fast food chain available in the global market, KFC found the key to stand out from the intense competitive environment. By expanding the business to China, KFC learned unprecedented success by being different, not by being the same. The company’s business model is all about adapting to the local culture and understanding the needs of the Chinese market. Three main innovative strategies of KFC in China are localizing the menu, understanding the Chinese culture, and hiring local management.