McDonald is a world famous fast food chain restaurant. In California, the concept of McDonald was introduced by two brothers named Mac (Maurice) and Dick (Richard) McDonald. In 1940, the restaurant was renamed to McDonald’s Famous Barbeque from Airdrome restaurant (located near the airport), which was ran by their father, Patrick McDonald in 1937.
In 1940, two brothers figured out most of the profit were coming from selling hamburger. Hence, they made their menu very simple by selling only hamburger, cheeseburger, soft drinks French fries and apple pie etc. In 1954, Ray Kroc a seller of multimixer milkshake brought a turning point in the history of McDonald. He liked the idea of McDonalds and started expanding their business by opening franchises for McDonalds. In 1960, McDonald’s advertising campaign “look for the golden arches” gave McDonald’s sale a big boost. 1965 Corporation went public and in 1968 McDonald opened its 1000th restaurant. By 2000’s, McDonalds entered into UK, New Zealand, Jerusalem and some Asian countries etc.
McDonald’s had quite a long history in Asia. It entered the Japanese market in 1971, which as followed by entry into other newly industrializing economy such as Singapore and Hong Kong. McDonald’s entered into Into India in 1996. and its joint venture partners had opened 46 restaurants between 1995 and December 2002. They initially opened their restaurant in Mumbai and Delhi, where they can find the customers who could actually afford their food from expensive restaurant like McDonald. Later on McDonald extended their outlets all over India. Till now McDonald has been one of the leading fast food chain restaurant due to their innovation and diversification even after facing many ups and downs.
1. The Moscow McDonald's is not only the largest in the world, but also it is really truly McDonald's: McDonald's menu, equipment, uniform, sweepstakes and, of course, fast service with smile. If you come at any McDonald's in any part of the world, you are sure you will see the same. McDonald's has been extremely successful in Russia by having good cooperation with the Russians and by taking their ...
1.3. Market Share According to a report published by Crisil, the Indian unit of Standard & Poor’s rating agency published that the fast-food segment will be worth 70 billion rupees ($1.1 billion) by 2014. The chain has one fifth of the market share in the Indian fast-food segment, while McDonald’s have just over 10% of it. 1.4. Industry size
Today McDonald’s has more than 33000 outlets and is operating in 125 countries. It has 211 stores in India with over 250,000 customers visiting their outlets every day.
1.5. Major players India is a vast market for fast food industry and there are so many renowned fast food restaurants. Including McDonald’s, the other major players of fast food restaurant in India are Subway, Nandos, Paramount, Dominos, Barista, Pizza Hut, Wimpy Bar, Pizza Corner and KFC etc.
1.6. Product serving
(I shall write it)
Objective – As a beef-based hamburger chain to achieve success in the unique cultural space of India, where most people prefer vegetarian foods and people’s food habits are dominated by regional food preferences. Acquire market share of middle-class and lower middle class segments in India by making its products available at an affordable price.
I shall write Q:1.
Q: 1: Discuss the main strategic and management issues that McDonalds had to consider to enter into India. To enter in the market McDonalds had to analyze the External environment. External Environment
Product segment – burgers, French fries, nuggets, beverages and coffees and cakes in McCafe Current life cycle position in the industry – mature stage TEMPLES Technology (+) – adding technology to make drive-thru, ordering and payment processes easier Economic (-) – GFC during 2008-2009 affected US and the rest of the world which led to the declines in consumer wealth and purchasing power, and a ...
1. Macro environment Technological Global Economic Political Socio-cultural Demographic Global 2. Industry structure Porter’s 5 forces 3. Strategic group mapping 4. Competitors analysis 5. Critical success factor
Opu Bhai will write Q:2: Q: 2: Critically analyse its entry strategy in the Indian growing fast food industry. Anwar bhai will write Q:3 Q: 3: Identify the functional strategy that McDonalds pursued to establish its strong foothold and make India as an export based for cheese lettuce and other products.
1. Conclusion – Anwar bhai will write it 2 paragraph (Summery)… 2. Recommendation Opu Bhai will write 3. Reference Opu Bhai will write
(N.B. Avoid bullet points and incomplete sentence)….!