I. Introduction McDonalds has always been a leader in the fast food industry. Through its dynamic market expansion, new products and special promotional strategies, it has succeeded in making a name for itself in the minds of the target customers. However, McDonald’s earnings has declined in the late 1990’s and 2000s. This is mainly due to a fiercely competitive industry and variety in customer tastes and preferences. II. Statement of the Problem How can McDonalds increase its sales, market share and profits in a fiercely competitive industry? III. Objectives McDonalds objectives are to reverse the decline of sales, to continue staying ahead of the competition in the fast food industry and to find new strategies that would help the restaurant successfully compete in the a fiercely competitive market. IV. Areas of Consideration Situation · Eating habits of Americans are changing · Younger consumers are getting tired of fast food and are becoming health conscious · Growing dissatisfaction with the quality aspect of fast food restaurants such as McDonalds · Fast food is losing its sense of appeal to the large group of customers who frequently eat out Environment · another segment of the fast-food industry is comprised of a non-hamburger restaurants, growing trend is moving customers to non-burger sandwiches · increase in the fast-casual segment that includes restaurants that offer deli sandwiches and more upscale meals with more comfortable surroundings but faster Background · McDonalds has added new products on its menu · Advertising message focused on tasty and nutritious food, friendly folks and fun · Invested heavily in advertising and improving its public image · Opened first domestic McCafe Customers · recognize the importance of drive-through customers (try to increase the speed of drive-through delivery) · Importance of heavy users of fast-food restaurants Threats · McDonalds cheap and greasy image Major Competitors in the Hamburger Segment · Burger King Corp. that offers an array of value-priced offerings and makes kitchen and drive through upgrades · Hardee’s that continually introduce new items in the menu and join the price-promotion burger wars · Wendy’s International who has the strongest same-store-sales gains in recent years Major Competitors in the Non-Hamburger Segment · Pizza Hut that dominates the Pizza Segment · KFC that uses programs to attract kids and families to its food offerings · Taco Bell that practice successful high-priced offerings V. Alternative Causes of Action & Analysis 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. Alternative 1 McDonalds should focus greatly on building good customer relationship and uphold customer retention. This is done by allocating time and budget in improving their resources and making changes that actually cater to their customers’ needs and comfort.
• Considering the two forces of competition and predict what McDonald’s Corporation might do to improve its ability to address these forces in the near future.
Fast food restaurants, like McDonald’s, Burger King, and Wendy’s, are all popular places out of many that a lot of people like to eat from. Whether
From a study completed by Chicago-based Research International USA completed a study called “Fast Food Nation 2008. The panel consisted of 1,000 respondents of ages 16-65 who provided their inputs with an online survey which was conducted between March 13 through 2008. Which was based on results on fast food restaurants like McDonald’s, Burger King, and Wendy’s are gaining popularity even through the economic hardship and recession. Marketing strategy has become more of influence on kids and young American’s. As population grows and the demand increases of fast food restaurants are expanding their stores to capturing more consumers. Fast food chains are also willing to change their menus to continue to gain and retain repeating customers. With each generation that passes, brings fast food chains into more homes and continues impacting lives.
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
Over the last three decades, fast food has infiltrated every nook and cranny of American society and has become nothing less than a revolutionary force in American life. Fast food has gained a great popularity among different age groups in different parts of the globe, becoming a favorite delicacy of both adults and children.
Have you ever wondered how the business empire of McDonalds was started? With over ninety nine billion served, it was started in 1940 in San Bernardino, California. It was started off as just a Bar-B-Q that served just twenty items. Its first mascot was named “Speedee” They eventually realized that by setting up their kitchen like an assembly line that they could be much more productive and get their food done faster, with every employee doing a specified job; the restaurants production rate became much higher. A milkshake machine vendor came into their small restaurant one day, his name was Ray Kroc. He saw how much potential the restaurant has, so he bought it out and opened one of the first franchises. Within the first year of Ray Kroc buying it, there were one hundred and two locations all around the world. McDonalds currently is one of the largest fast food restaurants in the world and currently has served over sixty four million customers through one of their thirty two thousand sites. It has almost become a way of life for America. Though, McDonalds started off as a small business between two brothers, it grew into one of the largest restaurant franchises in the world and greatly affects our society and how we eat our food.
This particular case is about the implementation of the popular fast-food chain, Burger King, into the Japanese market. Despite its’ strong market position in other countries, Burger King has some difficulties to face within the Japanese market. In this report, my team and I will analyze Burger King’s current situation and problems and suggest alternatives.
The mission statement of McDonald’s fast food restaurants is a common mission for every restaurant, but the McDonald’s values reflect the McDonald’s experience. The mission statement of McDonald's fast food restaurants around the world is not much different from any restaurant. A broad and common mission statement is more clearly defined by the McDonald's Values, which reflects the experience that customers can expect when walking into a McDonald's fast food restaurant no matter where it is located. “We place the customer experience at the core of all we do, we are committed to our people, we believe in the McDonald's System, We operate our business ethically, we give back to our communities, we grow our business profitably, and we strive continually to improve”. These are the mission statement of McDonald’s. Also McDonald's is implementing a global strategy ...
McDonald’s has proven over time that the business practices they utilize work well and have led them to obtaining the title of the largest food retailer in the world. The founder of the company made a tactical decision in franchising the idea of providing fast food at a cheap price. Today, fast food has become a staple of not only American life but a viable food option all over the world. For McDonald’s a critical factor in them reaching the level of growth they currently experience has been franchising. It can be assured that McDonald’s will continue to grow through the usage of the franchising techniques as new food markets continue to develop all over the world.
To sum up all information above, it is understandable that McDonalds has positioned itself as fastest and cheapest fast-food retailer. According to this statement, the main competitive priority for the company is low-cost and dependability of their product. Nevertheless, McDonalds takes into account other competitive priority like high design-performance, credible consistent quality and cultural flexibility.
McDonald's current customer environment is people on the go or people who don't want to spend a lot while going out and need something quick and good to eat. It is best stated in McDonald's mission statement that they want to be the world's best quick service restaurant experience. As stated before, McDonald's has restaurants in 121 countries and has extensive global experience in customer service and satisfaction. McDonald's is excellent at researching an international area before building restaurant there. For example, in India McDonald's realized that the majority of the population was Hindu and vegetarian, they therefore, did not even bother to put beef or any other red meat on the menu.
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...
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.
These are opportunities because they are all options McDonalds can take advantage of in order to expand their company. By doing these, McDonalds will bring in more customers as these changes will attract consumers that are looking for a fast food restaurant that possess these
Burger King uses a dispersed configuration for day to day operations as the majority of their restaurants are franchises with local suppliers. Yet Burger King Headquarters uses a concentrated configuration for marketing and development of products, as well as pricing. This centralization of marketing assists all franchises worldwide and provides the greatest value for the company, but the direction of available products and pricing has proven detrimental to the overall success of the firm. An article on CNNMoney.com describes the failure of the $1 double cheese burger to stimulate sales and how a number of franchisees filed lawsuits against the headquarters due to being forced to sell the double cheese burger at less than cost in order to boost revenues for the headquarters and shareholders and not the franchisees.