Mcdonald 's And Kentucky Fried Chicken

An unsuccessful attempt to expand into US markets also puts the companies at risk for experiencing loss in capital. Many new stores will have to be designed and built in the US markets in convenient locations. One must recall that Wendy’s absorbed the company in 1995, and only 11 years later spun it off as its own company again. Wendy’s could not figure out how to successfully expand Tim Hortons in the US, which makes one wonder if Burger King will be any different. It has been proven before through the example of Wendy’s and Krispy Kreme that it is difficult to penetrate markets across borders (Hemmadi, 2014).

1. Franchisees gain numerous advantage when they purchase a franchise. First, while a franchisee may be opening a new store, it is part of an already established business and system. This means a franchisee has access to turnkey operations, allowing an increased speed to establishing and growing the business. Franchisees also get support for management and training activities, as well as financial assistance. Going hand in hand with this, a franchise already has an established brand name, quality of goods and service which have been standardized across the franchisor’s larger company, and national advertising programs from franchisors. Franchises also have large-volume, centralized buying power. A franchise has proven products, and

The McDonald’s in Beijing created these trends because they used the same menu as the American counterpart. This increased business and attracted customers because they felt more modern eating the so-called “American cuisine.” The McDonald’s in Beijing is most definitely considered an example of an American-inspired, transnational culture because the Chinese are intrigued with the western influence and this does change their culture because they are becoming more modern and opening up to outside influences. With a positive view from China, McDonald’s decided to expand even more.

The franchiser can attain rapid growth for the chain by sign- ing up many franchisees in many different locations.

The small businesses that I've decided to use would be Food Lion, Kroger's, and Food City. Although, Kroger's and Food Lion seem to be much of a bigger company than Food City, I would like to compare the three companies and their social media platforms. Advice is much appreciated.

Our research over the past five years into the battles between multinationals and local Chinese companies reveals that while market dominance by local champions is far from universal, it’s becoming ever more frequent. In industries as different as beer brewing, mobile-phone manufacturing and laundry-detergent production, Chinese companies — often seeming to appear from nowhere — are forcing multinationals to rethink their strategies and their hopes for explosive growth in the China market.

When it comes to the consumption of coffee and donuts, I wonder to myself who does the best job at doing so at a reasonable price and who has the most benefits. That is when I decided that I was to put Dunkin’ Donuts and Krispy Kreme side-by-side to see who would be the best in the modern marketing world. In order to do this, I will be discussing the four P’s to differentiate the companies and use other material that was discussed in class. When I started to write this report; my original plan was to use Dunkin’ Donuts and Starbucks to determine which would be better, however these companies are far from comparison and I chose a company that would be more similar in products and service, with that company being Krispy Kreme Doughnuts.

(1) Wendy’s was able to achieve its initial success and grow so rapidly at a time when the quick service hamburger business appeared to be saturated because Wendy’s chose a strategic plan of targeting a different segment of the hamburger market, young adults and adults. Dave Thomas’s idea of an “old fashioned” hamburger allowed Wendy’s to differentiate from the competitors. The hamburger itself is made from fresh beef that is cooked to order and served directly from the grill to the customer. It is done this way to allow the customer to see what they are ordering. Allowing customers the opportunity to see the cooking process gains a certain level of comfort between the customer and the restaurant. “Old fashioned” hamburgers are square in

Since the late 1800s, Chinese immigrants have come to our country bringing with them a rich culture, that not only included art and poetry but they brought with them their very unique style of cuisine. Chinese food has had a unique influence on American cuisine, with over 40,000 restaurants across the United States, there are more Chinese restaurants in America than all the McDonald's Burger King's and KFC's combined. The Chinese culture has truly made a huge imprint on the American food industry.

Multinational companies opt to franchise as a way of expansion strategy (Siebert, n.d.). Chick-fil-A is dominant only in the US market. The firm has only ventured into the Canadian market in the airport of Calgary. Many United States Corporations have engaged in franchising in the United States as a form of the expansion strategy. Laws concerning franchising are neither strict in Canada. Our form of non-equity mode will be franchising, therefore our form of entry will be a small-scale entry. This will allow our company to get exposure in key locations and learn from Canadian consumers. The benefit to franchising at first is that it is less costly and less risky for the franchisor.

With China emerging as a global power in business within the last decade, knowing about doing business in China has become more important than ever. There are both many advantanges and challenges with doing business in China in this modern era, and understanding both sides of this coin is the key to being successful in China. Some aspects to keep in mind include the cultural barrier, the price of the work force in China compared to the United States, and have the “made in China” brand be accepted back in the United States.

Fock, H K. Y. and Woo. K.S. (1998). The China Market: Strategic Implications of Guanxi. Business Strategy Review, 9(3):

Franchisors are increasingly having to be more and more selective in the adoption of franchisees with factors such as economic climate and the potential difficulty with growth playing key factors in the decision making process. It is not simply an ability to grow which creates a successful Franchise and nor is it the desire of any franchisor to adopt every potential franchisee. Franchisors are becoming more and more scrutinising as the global economy declines. There is a general understanding within any franchised

McDonald’s has extremely strict rules when it comes to awarding franchises. First, it is very costly to open a new location or purchase an existing location, with the median startup cost being $300,000 (Kalnins & Lafontaine, 2004, p. 750). As well, the company does an extensive background check on a variety of issues including credit history, business management experience, and the acceptance of the contractual agreement that the company provides. Because of these strict rules and the large amount of capital needed to purchase a location, “rates for franchise applicants are 1% for McDonald's” (Norton, 1988, p. 204). This is an extremely low acceptance rate and is even lower than McDonald’s chief competitor, Burger King, who accepts 1.5% percent of applicants (Norton, 1988, p. 199). These low numbers are understandable in the context of the business and risk that is involved. Though the franchise purchaser must pay a large amount of money to gain the rights to the restaurant, they truly have nothing to lose besides money because they are simply running another company’s business model as well as using their trademarks and logos. McDonald’s on the other hand, has a great amount at stake because they place the well being of an entire restaurant into the caretaking of an individual who simply purchased the rights for the store. If the store does poorly or if there are issues with customer service, it reflects

This phenomenal rate of expansion in China alone is the result of a mixture of Pricing and Marketing strategies specifically designed for the China market. Starting from 1987, the first KFC store was hugely attractive to Chinese citizens. It mainly targeted consumers who are willing to spend more to get a taste of Western cuisine therefore the price of products in the restaurant are above that of normal Chinese food at that time. The first restaurant was a huge success, serving on average 9,000 customers per day and YUM brand was able to break even within the first year.