Steers And Mcdonalds Case Study

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The main purpose of this research task is to accept or reject the hypothesis that ‘There are no significant factors that distinguish one of the following franchises (Steers, Debonairs, Wimpy) from their competitors. Consumers buy from a specific food franchise because it is purely convenient.’ For this research task, Steers and McDonald’s were chosen, McDonald’s being the competitor franchise. The reason that these two franchises were chosen is because both Steers and McDonald’s offer similar products; such as burgers, both franchises offer to eat the food in the store or to collect. Recently McDonald’s began delivering, so that is also something that Steers and McDonald’s have in common. To be able to do this research task and to attain…show more content…
In order to avoid losing the customers, Steers could use a market penetration strategy which would result in Steers pricing their goods in order to match the product with the price a bit better. Another part of market penetration is that Steers would increase the amount of marketing and advertising that the franchise does, this will result in customers being made aware of what Steers offer in terms of products but an increase in advertising would also result in an increase of new customers. Labour disputes can cause severe problems for a franchise. Labour disputes can cause a franchise to decrease in productivity, or completely stall the production of a franchise. Labour disputes should be avoided at all costs and therefore it must be of most importance to abide to all the various labour legislations such as the Labour Relations Act (LRA) and the Employment Equity Act (EEA). To achieve this, there should be complete transparency between the management of the franchise and the…show more content…
This would allow for people that cannot afford the higher cost meals to be able to purchase products/food at a Steers franchise but it would also allow Steers to continue making financial gains by using a wide variety of strategies to satisfy the public and meet the customer demands. Porter’s Five Forces Model Porter’s Five Forces Model for Steers Availability of Substitute Products Substitute products not only include other fast food franchises that sell the same type of product such as McDonald’s and KFC Substitute products also include food franchises such as Debonairs, Primi Piatti, Anat and Fish & Chips. Level of Rivalry in the Market There are several other fast food franchises that are in the same area of the shopping mall as Steers, this will allow for customers to choose which franchise they want to purchase

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