1. Executive Summary
This report provides an analysis of the international marketing environment of fast- food industry in US and evaluates the international marketing activities of McDonald’s, which is considered a key player.
Firstly, the PEST framework is used to analyse external environmental factors influencing the industry. The Porter’s Five Forces framework is utilised to analyse the competitive rivalry within the industry, and its attractiveness for potential new entrants. Key players and their positioning was identified using a strategic-groups model, mapping brand value against global presence.
Based on the industry analysis, McDonald’s was identified as the market leader and an examination of their market entry modes was
…show more content…
For example, McDonald’s is the 9th most ‘liked’ brand on Facebook (CNBC, 2012) (Appendix 1). Additionally, digital displays allow outlets to change their menus efficiently, to suit the time of day (NRA, 2012) and self-service ordering points have increased service speed and reduced labour costs. Environmental
Environmental lobbyists and governments are pressuring the fast-food firms to become more ‘green’ (Greenpeace, 2012). Rainforests are being destroyed to increase the area of land for beef production to meet the demand for beef-burgers (Kline, 2007). Recycling is a prominent global issue and in response, McDonald 's adopted recyclable packaging. Increased environmental awareness among consumers provides firms with a significant opportunity to position themselves as ‘green’ to garner customer loyalty (National Pollution Prevention Centre for Higher Education, 1995).
Legal
Global operators must comply with country-specific regulations and legislation. This includes opening hours, taxation and employment regulations such as the National Minimum Wage Regulations (1999) in the UK. Firms are often required to meet national food standards such as the requirements set out by the US Food and Drug Administration (FDA). Furthermore, authorities are becoming increasingly worried about childhood obesity associated with the industry (WHO, 2012) and have tightened
Typically everyone will enjoy McDonald’s every once in a while, even if you are not a fan of fast food restaurants. Even though the food is inexpensive, it comes at more of a cost to the environment and the global economy than we may know. McDonald’s has a harmful impact on the environment in many ways. Besides the pollution from the factories where their food is created, the impracticable squander from nearly all the food they sell, and the large
This external analysis is critical in the development of a well rounded, cohesive strategic plan and will enable the JM Smuckers Company to gain a more comprehensive understanding of the current external operating environment and situational awareness of both future threats and opportunities. This analysis establishes a basic industrial framework, and then utilizes Porter’s 5-Forces model and PEST analysis in attempting to develop a common understanding of the industry and economic environmental threats and opportunities.
McDonalds was founded in 1943, and 1967 British Colombia was its first international expansion, advertising to middle and upper class. McDonalds decided to expand internationally, due to the enormous success in America. There was heavy research involved in the expansion. Through globalization and internationalization, McDonalds were able to develop marketing strategies according to cultural needs, to serve specific target markets. McDonalds enter India’s foreign market and 1996 and is a tough foreign market to enter, but with McDonald’s success they were able to earn high revenue in India. The success strategy is researching and the development of food. McDonalds thoroughly analyzed the preferred taste, especially to not offend locals. Their key to success is to “think global, act local.”
Additionally, on a socio-cultural level, many consumers feel that restaurants partaking in green initiatives and operations are doing their part to not only help sustain the earth but also to conserving natural resources (Hu, Parsa & Self, 2010). “Going green” is not simply a trend in the food service industry but around the world and in all forms of business. Corporate companies consider “going green” as a sensible business strategy in building recognition for corporate social responsibility among consumers concerned with environmental conservation efforts. Lastly, technological initiatives such as Energy Star appliances (dishwashers, refrigerators, ice machines, etc.) and faucets that use less water must also be analyzed in their ecological conservation capability and weighed against their financial costs (University of Notre Dame, 2014).
McDonald’s as we know is the biggest multinational-corporation in fast-food industry. McDonald’s is a symbol of American power and hegemony just like Coca Cola and Nike which its operations is all around the world. And how McDonald’s could successfully entering global markets ? the key components is its standardization in all McDonald’s outlets in the world known as QSC&V (Quality, Service, Cleanliness, Value). You can see and feel the same burger quality, same fast service, cleanliness of restroom and the same price in all McDonald’s outlets in every country. McDonald’s also made a strong relationship with supplier because this is another key success, every supplier which supply
Headquartered in United States of America (USA), McDonalds is known as the emblem to globalization with their successful worldwide franchises. McDonalds are a leader in the fast food industry. They have served over 68 million customers daily (Burger Business, 2012). McDonalds have around 35 000 restaurants worldwide, with 1.9 million employees working under their majestic corporation. Furthermore, 80% of their restaurants are franchised (McDonalds, 2014). Forbes (2013), ranked McDonalds #6 in the world’s most valuable brands. With a brand value of US$39.4 billion and US$88.3 billion of revenue, McDonalds topped the restaurant industry in the list. Now, how did McDonalds came about this success? Entrepreneur Ray Kroc bought over McDonalds in 1954 from the McDonalds brothers that saw the growth of the successful business (McDonalds, 2014). Ever since then, McDonalds had been the name on everyone’s lips when talked about scrumptious, tender, mouth-watering foods. McDonalds stated, “By 1958, McDonald’s had sold its 100 millionth hamburger.”. It was a success like no other. McDonalds were one of the first to bring the concept of fast-food in the food industry at the early era of 50s. It catered to its most famous menus – Filet O Fish, Big Mac and Egg McMuffin.
As the world's largest franchised corporation, with over 31,000 restaurants in 120 countries employing 1.5 million people, McDonald's is also one of the greatest consumer contributors to the trash epidemic facing our world today. As a corporation that boasts of its environmental responsibility, the question is: are they doing all they can.
McDonald’s PLC, is one of the largest fast food chains in the world, with 32,000 outlets in 117 countries. In the UK the first restaurant opened in 1974 and now in the UK stores alone, the chain serves 2.5 million customers daily. In the early 2000’s McDonalds saw for the first time some of its outlets closing, and drastically had to rethink the way that it operated. It was struck with a damaging title of the firm that didn’t care with non-eco-friendly practises, (the ecologist: 2011) and with the negative publicity
On your weekly trip to the supermarket it’s easy to find a number of products, from coffee to dishwashing soap, that flaunt their green attributes” (American Psychological Association, 2010). With such rumors of greenwashing, consumers are more confused than ever. However, some consumers know the tricks and are coming to find that there are companies whose marketing practices are legit, not exaggerated or deceiving. APA also found that, “people are willing to spend more of their hard-earned green on green products, according to a 2008 survey of 9,000 adults performed by the global business firm Boston Consulting Group” (American Psychological Association, 2010). Consumers who are willing to pay more for a product or service are assuming that they are purchasing a healthier, safer, and better quality product or service for the environment.
Every day, millions of products ranging from burgers to soda cups are packaged in paper and plastic which effectively becomes detrimental to the earth. Although there have been many controversies regarding the negativity of McDonald’s bio hazardous ways, the article focuses on three strategies of how McDonald’s corporation deviates away from serious trouble. The first is by selling the culture of McDonald’s to the consumer, the second is through transforming the ground which ultimately means that McDonald’s would define the environmental issue according to what they believe to be urgent and critical, and last is through commodification of their products. By advocating a healthy and concerned image of their company, the corporation got away with deviance at an extreme
To collect secondary data about the USA fast-food restaurant business, in order to determine McDonald’s market share, which are its competitors, and what changes have they done in their marketing strategies.
Sunchips provides not only a “healthier” chip but also uses renewable energy and a biodegradable bag and encourages consumers to join their eco movement. Other companies, such as Pepsi and Volkswagen, are joining in too. The “Refresh Everything” project launched by the major soda chain is attempting to make its product more environmentally friendly, and Volkswagen is taking even bigger strides with its movement, “The Fun Theory,” which encourages customers to be green while making the process fun (Park 1). Other major corporations jumping on the green bandwagon include Hewlett Packard, which boasts its recycling efforts and energy efficiency, and Ben and Jerry’s with its effort to “Lick Global Warming” and employ other eco-conscious practices (Rottkamp 1). While these strategies have shed light on being friendly to our planet, the fact remains that the large portion of our population simply is not embracing it.
assuage any guilt they might feel about consuming mass quantities of unnecessary, disposable goods by dutifully tossing these items into their recycling bins and hauling them out to the curb each week”. (Westervelt, Amy. "Can Recycling Be Bad for the Environment?" Forbes. Forbes Magazine, 25 Apr. 2012. Web. 5 Dec. 2015). So why is the reason that companies are starting to “Go Green”? Its clearly obvious that the change in America from an industrial country to a environmental country has taught big business how to market environmentalism in mass quantities of their product. The strategy of the consumption-environment mindset are increasing rapidly. If this trend of buying without thinking does not slow down, with problems like not shifting priority from consumption to being environmentally aware, things will certainly worsen. On the topic of green marketing, people often see that green marketing refers to the advertising of objects or products with environmental characteristics to them (Like the Nestle bottle, for example). Terms like “Environmentally Friendly”, “Refillable”, and “Recyclable”, are some of the things people associate with green marketing. In reality
REFERENCES•www.mcdonalds.com, accessed on 18 July, 2008•www.mcdonldsindia.net, accessed on 18 July, 2008•en.wikipedia.org/wiki/McDonald's, accessed on 19 July, 2008•http://www.associatedcontent.com/article/263943/mcdonalds_strategic_marketing_mix.html?cat=4, accessed on 19 July, 2008•www.kfc.com, accessed on 25 August, 2008
The public are now environmentally aware, hence McDonald’s has to pay more attention about environment. Thus McDonald’s have to be environmentally friendly.