Strategies and Government Policies Brenda Ocampo, Eileen Pool, Bernardo Villegas, Roderick Phipps, & Mohammed Alodeh ECO 365 February 4, 2013 Gregory Czarnecki McDonald’s The fast food industry is a highly competitive environment. For a leading chain such as McDonalds they always need to be thinking ahead about the competition and how the economy affects their industry. Although McDonalds is one of the biggest fast food chains they have to be aware of new companies entering in to the market, mergers, globalization, pricing, and how to continuously sustain their profits.
By being aware of these main points they stay ahead in their market. Next McDonalds must regulate themselves in regards to global competition with decisions made by management. Within the fast food industry they must be consistently aware of their labor demands, supplies, relations and unions. Besides keeping track of the competition and the current economy McDonalds must also stay on top of the current and expected government and polices as well as their own rules and regulations. Market, Mergers, and Globalization McDonalds, is in restaurant industry but narrowed to the fast food market.
The Essay on Different Types Of Food Service Industry
* A buffet is typically a self service presentation of food. Guests are invited to help themselves. * It is a type of service where guests help themselves from the food at the buffet table. COUNTER SERVICE * Counter service is a type of hospitality strategy that is used in bars, pubs, and some restaurants. Sometimes referred to as bar service, this approach to serving customers involves providing ...
McDonald’s competition would include Burger King, Jack in the box, and Sonic to name a few. They is very little or opportunity for others to enter the market on a larger scale. ___ there is a huge opportunity for a small mom and pop restaurant or food truck to enter the market. McDonalds would move in next door, or just buy the competition out. McDonald main focus is at current competitor’s edging forward and obtaining more market share and customers. To remain competitive in the market McDonalds must keep up with customer demands and societies behavior.
As stated in the Huffington Post Jack and the Box has their entire menu available around the clock (Huffington Post, 2013).
With increasing demand and to balance the playing field, McDonalds is planning on offering both breakfast and lunch items. McDonalds has also Ventured in to the Coffee market. McDonalds’ is not able to offer what Dunkin Donuts and Starbucks in gourmet Coffees, and lattes along with the current menu. This move has been very profitable for McDonalds. McDonalds has been involved in a number of horizontal mergers, such as the 2000 McDonalds’ purchased Boston Market that was currently undergoing Chapter 11 Bankruptcy.
Then sold the chain in 2007 to Sun Capital in a conglomerate merger (Bloomberg, 2007) McDonalds’ also had a financial stake in several companies such as Chipotle Mexican grill, Donatos Pizza, so it could focus more attention on McDonalds. In the world of acquisitions and mergers, McDonalds was the initial investor in Redbox which was sold in 2009 to Coin Star in another conglomerate merger (Longino, 209).
It is in McDonalds’ best interest to stick to what they know which is restaurants. They have the market, years of experience and they know what customers want and are willing to pay.
McDonald’s has established 31,000 stores in 119 countries around the world. McDonalds’ will demand more resources due to there being so many stores in so many places around the world. There is no such thing as one size fits all in the restaurants business. McDonalds has come a long way to develop the menu to fit the countries standard. In India McDonalds has created a popular McSpicy Paneer (Lubin, 2011) in Israel, Egypt they are serving the McArabia. Canadians’ have a Poutine, it is french fries layered with cheese curds and smothered brown gravy.
The Research paper on McDonald’s “Seniors” Restaurant
In the study of the briefing of the McDonald’s Restaurant, there are positives to the problem and negatives towards the problem. A McDonald’s in a city crowded with seniors are overwhelmed with senior customers during the early hours of the day. The senior come in as a meeting area where they eat and commune at the restaurant. The number of seniors that come in, crowds the dining area in which ...
Globalization of an American company comes along with baggage, due to the fact that America is the unhealthiest country on the planet. Farmers working for McDonald’s have worked with Ecologist around the world to correct the problem to make sure that the meat used no longer contains genetically modified grain, creating a healthier product. With everything being about time, and time equaling money, there is never enough time to relax and have a good meal. From China, to Africa, back to the Middle East and here at homes when a person sees the golden arches, they know it McDonalds’.
McDonalds has a menu for everyone no matter what country you are in, at any time, this is globalization at its best. Government policies & taxations The Government is involved in almost everything that everyone does. They intervene in the business and personal lives of people all over the world. They put rules and regulations in place to help control certain aspects of the business and help the public in a way. Obesity has becoming one of the fastest growing problems with Americans due to the health and diets that there are in America.
The government has invited McDonald’s by the Department of Health to help write government policy on obesity, alcohol and diet-related disease. The government has also helped ban bad oils and other ingredients in fast foods to reduce the health problems with heart disease, high cholesterol, and other problems that lead to obesity. The government is trying to control what we can and cannot eat. The government is trying to ban toys in the Happy Meals and considering passing other laws and regulations, taxes, and initiatives to limit how these restaurants prepare their foods.
In Seattle and other restaurants in other states are required to post calorie information for all meals served. These rules have also lead to increasing taxes on sodas and fattening foods to prevent people from purchasing them anymore and making healthier choices. With the choice of government raising taxes on certain products than that causes the restaurant to also make an increase in products thus causing there to be less people visiting fast food places. These regulations are not always the best for business but if products are replaced or changed than this can offset the products that cannot be sold.
The Essay on Survival Time Without Food
An average, but healthy, person is capable of surviving without food for forty or more days, however, that same person would not be able to survive for more than three to five days without water. It is very important to keep water going in the human body because of a couple of reasons. The body is primarily composed of water and the balance of the water in a human is critical. Once the water level ...
Including a variety of drinks can also help the sales and offset the soda tax. All of these choices are part of externalities because they affect the population who visits these places, as well as the wallets of thee people, and the business. These are rules and regulations being enforced to help people realize that we need to eat healthier. But this is not always seen as a positive thing from the public because this means that we’re being deprived from taking our own freedom in choice as to what we eat and what we do. Global competition. McDonalds has been one of the initial companies that emerged into the global market.
Its brand has reached various parts of the world making its culture part of society’s day to day events. Their management style and effective decision making has been able to strategically create a demand for their products. This focus on consumers has also been able to dictate preferences which in turn provide a larger perspective of how the company thinks out of the box. Forbes, Markets, McDonalds’s Winning Strategy, At Home And Abroad, (2012)stated, “In the 1970s and the 1980s, the company rode the globalization trend by transferring the American way of life to many countries around the world.
At the same time, it adapted to the social context of each county by franchising to local entrepreneurs”. McDonald’s reputation has keep all shareholders satisfied as their efforts have been carefully monitored by various entities as their financial performance has remained solid despite the global markets economic issues that have been presented in the past. Bloomberg BusinessWeek, News, Analysts keep positive ratings on McDonalds (2012) stated, “Analysts said they expect challenges to persist throughout the next several quarters, but said longer term the chain will likely remain dominant in the fast food industry”.
From a business standpoint they are considered on the leads in the fast food industry, therefore the possibility of growth is highly foreseeable and can ensure economical compensations for all its parties involved . What is an essential feature that is evidently taken into consideration in the decision process is the importance of reaching out to customers within different a diversity’s. This supports and at the same time makes good business sense providing their products and services at a global scale is the product of efficient decision making that has positioned the company to become a solid competitor with high financial performance.
The Business plan on Home Depot Company Market Industry
Introduction History The Home Depot was founded in 1978 by Bernard Marcus, Arthur Blank, and Ronald Brill. These men founded The Home Depot because they were laid-off of their management jobs at the Handy Dan home center chain. They used the knowledge that they acquired from the Handy Dan along with funds provided by a New York venture capitalists firm to form The Home Depot. The Home Depot ...
Conclusion McDonalds continues to focus on their customers, shareholders, employees, competition as well as the government and their policies and regulations. By doing so, they have become involved in the global market thus expanding their industry to new consumers. With the expansion McDonalds must now comply with international laws, rules and regulations. Also being able to continuously adapt and change to the different environment in which a McDonalds store is located.
