Actually, the benefits of these strategies is cost saving. From the strategies we see that by standardizing the products and advertising across all business units will make a positive change in generating the economies of scale. The cost they saved can be used to reinvest into the company for R&D and offer low prices to consumers. However, besides standardization, McDonald’s also applies customization in order to act locally. McDonald’s manages its business and responded to the opportunity by organized into three distinct geographic segments: Europe, Asia/Pacific, Middle East and Africa (APMEA).
Name : Ereny wassim boshra Id : 1451510217 The First question : Strengths 1- wendy’s international are considered the third largest fast-food hamburger business in the world, although it reported higher revenues in 2002 than did Burger King. 2- The company as a whole generated $2.73 billion in revenues in 2002, up 14.2 percent from the previous year. With headquarters in Dublin, Ohio, the corporation operated over 9,000 restaurants in 33 countries worldwide. 3- One very important innovation contributed by Wendy’s was a special value menu that consisted of about 10 items that could be purchased for 99 cents. 4- in 1976 had its first public offering of 1 million shares at dollar 28 per share.
For the fourth quarter, it has already announced opening of two new stores and expects to open 11 additional stores. This brings its current store count to 388, totaling approximately 14.7 million square feet. It expects to cross the 500-store mark in 2017, while it sees demand for 1,200 Whole Foods Market stores in the United States in the longer term. Lastly, it is also a champion of employee rights and does well by its shareholders. As a result, the dip in the stock’s price provides a great buying opportunity, with an upside of 20 percent in the near
The need for establishing a suitable and noticeable trademark has always been a requirement for every company. Global expansion has caused McDonald’s to launch an identity design for branding and management of their product. The logo endorses the quality and authenticity of the McDonald’s product throughout the world. When McDonald’s extended its business worldwide, it required and utilized a logo design that guarantees the products’ value globally. Elegance, significance and solid corporate character are clearly portrayed by the golden arches of the McDonald’s logo (Famous Logos, 2008).
Burger King Corporation is the second largest fast food chain in the United States of America. More than 10,4000 restaurants are being franchises by this company, with locations in every 50 state and 56 other countries. It is believed that this company server 15.7 million customers per day. During 1990s, Burger King had falling sales and deteriorating franchisee relations. The company was sold to investors led by Texas Pacific Group in 2002.
It offers an excellent support to its operation of franchise. Lastly, whether the value of resources which are inimitable or rare are appropriately organized and made the greatest contribution to achieving higher levels of growth within VRIO analysis framework. The management of McDonald's is efficiently and it is make the company become the leading fast food industry all around the world. The resources of McDonald’s have been organized in an effectiveness way
3. Introduction McDonald's Corp (MCD) McDonald's Corporation operates and franchises McDonald's restaurants in December 21, 1964. The McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries across 35,000 outlets. McDonald's operates over 35,000 restaurants worldwide, employing more than 1.7 million people. The Company manages its business as distinct geographic segments: the United States (U.S.); Europe, and Asia/Pacific, Middle East and Africa (APMEA).
Opportunity* ● The restaurant chains of China are undergoing an unprecedented wave of overseas expansion. Chinese cuisine today plays an increasingly important role in the international market. In the United States, for example, Chinese, Italian and Mexican cuisines have become the three most popular cuisines. There are 50,000 large and small Chinese restaurants in the USA, more than the total number of outlets of McDonald's, Burger King and Wendy's altogether. They account for about 3.4% of U.S. retail outlets of the dining industry and 8.5% of its turnover, with an annual turnover of US$30 billion and 300,000 employees.
McDonalds is one of the largest and renowned fast food chains serving more than 60 million customers across the world. The company has established presence in almost 119 countries of the world with headquarter in United States. The production line principles related to fast delivery, minimum wastage, less lead time, reduced waiting time for the customer, high productivity, are clearly followed and adopted in the McDonalds. The large customer base has enabled the company to hold considerable dominance in the fast food industry and stimulating growth and development pace. The company operates mainly in the form of franchise, or food outlets.
For an example, in 2010, sales among the top 50 fast food chain restaurants exceed $141 billion in the US. A recent survey of adults found that there are 80% purchased fast food in the past month and 28% consumed fast food two or more times a week (Katherine W.Bauer, 2012). Home cooking has become second choice when people loves to take outside meals as their regular diet. A number of studies have shown increased frequency of takeaway and fast food consumption worldwide whereby Governmental reports in the UK indicated about 22% of residents were found to purchase foods from takeaway outlet at least once a week and 58% a few times a month. Instead of that, a similar frequency of consumption of takeaway or fast food has also been observed in other country (Agnieszka Jaworowska,