Business Analysis : Ikea And Nike

The way that Burger King and other fast food restaurant chains do business and markets their products to consumers is due to the change in our society to where the consumer wants the biggest, fastest, and best product they can get for their money. This change in society can be attributed to a process known as McDonaldization. Although McDonaldization can be applied to many other parts of our society, this paper will focus on its impact on Burger King and Taco Bell restaurants. My belief is that the process of McDonaldization has lead our generations toward a more a much more efficient lifestyle, with much less quality. From my observations and studies of these fast food resturants, several themes have become

McDonald’s Corporation are the most successful and popular fast food brand in the world, holding the largest fast food market share and being the leading fast food restaurant chain in terms of world sales (8%). They are the second greatest outlet operator with more than 34,000 outlets, serving worldwide to 69 million customers daily, across 119 countries. Their brand is the seventh most valuable and

Due to the famous, well-known symbol of the golden arch, McDonalds is seen as a worldwide trademark. “Beginning the international venture into Canada in 1967, the McDonald’s Corporation has rapidly expanded abroad” (Curtis, 1982). This can be related to the documentary watched in class, showing the rapid progression of Coca-Cola becoming a necessity in our society, and the cultural ties connected to the commodity. The fascination and popularity grew rapidly, therefore creating an international symbol profoundly. The

McDonald’s is not some ordinary fast food restaurant with its trademark logo advertised almost everywhere in the U.S., many people all over the world know about these famous golden arches. The McDonald’s franchising started in 1955 and in less than fifty years, McDonald’s was introduced all over the world in countries such as, China, Japan, Great Britain, Sweden, France etc. McDonald’s global expansion has intermingled with cultural traditions because these countries are becoming more westernized. Since East Asia is becoming more westernized it also means that there is a cultural difference because of the influences from outside the country. The cultures are being changed because of how ideas are expressed by people and not by their

The impact of the McDonaldization is seen in a consumer’s life at least everyday. It was enlightening to be given the opportunity to learn about this process by visiting a local restaurant called Schlotzsky’s. During my hour there, I learned how McDonaldization is all around the consumers and they should stop and take the time to learn about the effects of the industrialization of the fast food industry.

Since its release in the year 1993, ‘The McDonaldization of Society’, has gone through various revisions and republications. Its on the context of the observations made by Ritzer, that the argument of the entire process of McDonaldization finds its place; which states that the concepts and principles followed by fast food restaurant chains, are rapidly taking over majority of the sectors in the American economy, and may dominate over the rest of the world (Ritzer, 2004, pg1).

Despite McDonald’s excellent global strategy and localization they do face controversy. From the first time McDonald’s opened its doors in 1972, policymakers and the media was concerned about the impact the fast-food would have on the French culture. This controversy kept the company in the pubic eyes. So, when the World Cup finals was held in France, French citizens protest when McDonald’s became the official food. They believed it is too symbolic to America. McDonald’s is an easy target as everyone around the world know what McDonald’s is. Also, it is known to be an icon of capitalism. The company internationally is symbolized as “all to American”, therefore is a huge target for protest.

In the book of “The Mcdonaldization of Society” by a sociologist George Ritzer, the term Mcdonaldization is used. Mcdonaldization occurs when a business such as Ikea, Taco Bell, Wendy’s, Wal-mart, Bed bath and beyond, etc. possesses the characteristics of a fast-food restaurant, like McDonalds. Max Weber used the word “bureaucracy” to represent the direction of Mcdonaldization changing the society; with today’s present society, the concept of Mcdonaldization is gaining in consideration of different aspects, such as a culture. The cultural version of a McDonaldization thesis is the recent idea of the world wide homogenization of cultures. The process of it could be summarized in a way in which the fast food principles, are dominating more and more sectors of American society, and as well as of the rest of the world.

Nike’s main strategy revolves around product branding. Their brand compromises of a swoosh logo which is accompanied by a message of “just do it”. The logo was imprinted on all of their products with the message developed to express the individuality of their target group. The branding was further promoted by Nike’s relentless approach on the quality of their product as demonstrated when considering overseas business opportunities, quality must not be compromised in order to do so. This ensures consumer satisfaction and loyalty towards Nike.

Brands use different strategies to create competitive advantages to beat with their rivals. Some companies use “Overall Cost Leadership” to increase profit by reducing costs and increase market share by lowering price. Some companies use “Focus Strategies” to select a group of market and tailor its strategy to serve that group. The others use “Product Differentiation” as a strategy to obtain a premium price by making unique products. Nike, with its differentiation strategy, the company is continuing to separate its self from the competitors by using its superior technology and innovation. This paper mainly discusses on the company’s product differentiation and analysis how the company using this strategy to build its brand image and become a market leader in sportswear industry. A brief discuss about Nike competitive advantage which related to its broad differentiation aspect and the company product life cycle are also presented on this paper.

McDonald's is known as one of the best-known brands worldwide, which has main aims to build its brand by listening to its customers. It also identifies the various stages in the marketing process. Branding develops a personality for an organisation, product or service. The brand image represents how consumers view the organisation.

Today’s society and culture is becoming more and more McDonaldized. This paper will illustrate what the process of McDonaldization is. In addition, this paper will show how today’s society has adapted to this process along with using the theories from Max Weber.

The theory of ‘McDonaldization’ was founded by the American Sociologist, George Ritzer, in the late 19th Century. In his book, ‘The McDonaldization of Society’, he defines the term ‘McDonaldization’ as “the process by which the principles of the fast-food restaurant are coming to dominate more and more sectors of American society as well as of the rest of the World.” (Ritzer, 2014). ‘McDonaldization’ was adapted from the original ideas of Max Weber and his ideas of bureaucracy and rationalisation. In his theory, Weber stated that the Western World has been captured by efficiency, predictability, calculability and control (Ritzer, 2000); the four principles that Ritzer refers to in his definition of ‘McDonaldization’.

In PEST analysis, we will look into what will be affect by the business environment. It includes political environment, economical environment, social environment and technological environment.

Since McDonald’s is the most well know fast food chain in the world with a market cap of 69.35 billion, brand recognition is their biggest strength. The secret of McDonald’s success is its willingness to innovate and maintain consistency in the operation of its many outlets. In recent years McDonald’s has introduced Premium Salads, Snack Wraps, fresh Apple Dippers in the United States, and Corn Cups in China. Also, McDonald 's products are priced so low that economic conditions are almost insignificant.