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Fast Food Industry Analysis

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Industry analysis: The Fast Food Industry (McDonald’s)

NAICS 72221: Fast Food Restaurants. This industry is made up of establishments focused on the sale of prepared food and drinks for immediate consumption on or near the premises. Institutional and caterers and industrial organisations are also included in this business. Related Industries: Full-Service Restaurants
Grocery retailers
Grocery wholesalers
Packaged food manufacturing Sub industries include: Eating places Ice cream, soft drink and soda fountain stands, Coffee shop, Pizza delivery, Drive-in restaurant, Hamburger stand and Hot dog stand. (Barnes, C. (2014))
History
White Castle is seen as the the company that started fast food. They changed the public’s perception …show more content…

They implemented the “Speedee Service System”, applying the principles of the production line manufacture to fast food, thus simplified operations. The McDonald brothers also used paper and plastic rather than dishes and glassware to increase efficiency. Ray Kroc advanced on the blue ocean that Dick and Mac McDonald created and in 1955 he opened the first restaurant in the McDonald’s Corporation. More fast food restaurants began to open in the mid 1950s to late 1960s imitating and implementing the “Speedee Service System”.(Upton, D.M. and Margolis, J., …show more content…

Competitors of McDonald’s can be other fast food restaurants, coffee shops, ice cream shops, and other fast food businesses. McDonald’s primary competitors are global fast food chains similar to themselves, such as Burger King and Wendy’s. Starbuck’s is also a major competitor with McDonald’s because of its great popularity, particularly in the United States. McDonald’s Metcafe chains compete more directly with starbucks.(Brotherton, B. ed., 2012.) Porter’s Five Forces Analysis McDonald’s is the global leader within fast food industry. It has achieved this position as a result of effectively responding to the five forces of its industry environment. Michael Porter’s Five Forces Model identifies the most important external factors that affect business organisations. The environment of the fast food industry interacts with McDonald’s to affect the potential and success of the firm. McDonald’s current global success showcases that they are effective in identifying these five forces and overcoming issues they possess.

McDonald’s Five Forces analysis provides information of their strategic direction. In order for McDonald’s strategies to operate effectively they must align with the external factors that affect the fast food restaurant industry. (Barney, J.,

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