Mgt 401 Week 2

Furthermore, McDonald’s is a true franchise success; the success of McDonald’s goes back to its roots, the start. By being consistent and providing quality service, cleanliness, and values at all times, customers have nothing to complain about and customers always know what to expect locally and internationally. With making things new and fresh, innovation is a key component to the success

This week I have talked to three different people who enjoyed hearing about our projects. These people are my wife, Mariko Konno, who loves running marathons, Yoko Hosokawa who is my sister and is planning to run in the Honolulu Marathon, Patrick Cervantes who is a barber at College of Hair Design in Lincoln. Here are the following details:

The collaborative efforts of Group 3, continued during Week 3. The primary tasks that were assigned including the Feeding the Hog activity, and the Phase 1 - Transformational Collaboration Proposal Plan. Kristian Stremberg served as the group leader for the week. In this role, Kristian provided a draft template for each assignment using Google Docs, allowing the group to examine each element of the assignment and collaborate effectively toward the final draft of each assignment.

Although the restaurant industry is perceived to have high risk of failure, the risk of a restaurant failing is not too different from other small businesses. Parsa et al. quantified the risk of failure at 26% in the first year and 57% by year 3. He also described several factors that can influence the risk of failure. Those include physical location, firm size, speed of growth, differentiation from other restaurants in the market, adapting to external trends, and management experience. In terms of location and differentiation, Paul’s bar will be located in a new development designed to attract affluent customers and with very few competitors. Paul’s small firm size increases risk because of barriers to attract partners (i.e. suppliers and bankers are prejudiced against smaller firms) and growth that may be too rapid to manage. On the other hand, Robert already has experience in the restaurant business and should know how to run the bar and subsequent restaurant. Their choice of a piano bar may be in response to local trends that favor success.

While barriers to entry for this industry are low, these barriers are continuously increasing. The industry consists largely of small independently owned establishments. This is further evident in the information provided later regarding the nature of the participants. Even though many large companies hold a decent amount of the market share, many small independently owned establishments account for the largest share at 79.63%. Entry into the industry is mainly done through franchise operations. According to the National Restaurant Association, small operators run more than seven of every 10 restaurants (Basham 19).

Of all the aspects of MTI, innovation strategy is the most challenging. Firms can be very good at the various activities involved in MTI, such as R & D or operations, but this count for little unless it is supported by a well-grounded innovation strategy that guides firms’ choices, prioritizations, and sequences. There is little value in being highly efficient at developing or delivering new products and services if they are the wrong products and services for the firm and its markets. Well-chosen new products and services deliver value, build the technological base of the firm, develop its capabilities, improve its processes, and add to its reputation and brands. An innovation strategy helps firms decide, in a cumulative and

The first choice of business is the franchise. In a franchise, legal binding agreement is entered into between two firms, the franchisor (the product or service owner) and the franchisee (the firm to market the product or service in a particular location). The franchisee pays a certain sum of money for the right to market this product” (Rubin, 1978, p.224). The franchising is more prevalent in the restaurant industry (Hoffman & Preble, 2003). The two distinct features of this business type include; first, in order to notable service components should

A notable benefit of shopping at a small business is quality. These businesses are dedicated to meeting the expectations of the consumer through the products that they carry. Local merchants will provide quality products for a couple of reasons. First, they need their customers to be pleased with their purchase. If a person had a good experience with the small business, they will more than likely return. A small

McDonald's restaurants feed more than a million of peoples around the world everyday. Almost everyone in the United States will see the Golden Arches( symbol of McDonald’s) every where; whether, they are on their way back home from work or going somewhere. The reason why peoples starting to like McDonald more and more are because of the restaurant location, food cost and

The business I have chosen to pick for this task is McDonald’s. McDonald’s proprietorship is an establishment. McDonald’s is an expansive business with more than 30.000 restaurants in excess of, 100 nations, serving more than 38 million individuals every day. The organization is a private constrained organization. McDonald’s is the world 's biggest chain of burger fast food restaurants, serving around68 million clients day by day in 110 nations. The organization started in 1940 as a grill restaurant worked by Richard and Maurice McDonald’s in 1948 they revamped their business as a burger stand utilizing creation line standards. A McDonald’s restaurant is worked by a franchisee, a subsidiary, or the enterprise itself. The enterprise 's incomes originated from the rent, sovereignties and charges paid by the franchisees, and also deals in organization worked restaurants. McDonald’s fundamentally offers ground sirloin sandwiches, cheeseburgers, chicken, French fries, breakfast things, soda pops, milkshakes and pastries

The opportunity to expand/offer a greater range of service is something which any business interested in growing in stature will be interested in. As a company grows, they have control of the industry which they are competing in, can often dictate prices, and may also benefit from economies of scale (lower unit costs by producing more). --http://www.bbc.co.uk/schools/gcsebitesize/business/aims/sizeandorganisationrev1.shtml

Not having to answer to a corporate boss is the dream of many and the flexibility that owning a business franchise creates provides this option. Success is not reached by simply creating a business, however. The level of success is measured by the size and efficiency of the business. Business growth is the driving force of the economy. The additional jobs and revenues created when a business expands allow the economy to grow at exponential rates. One of the fastest and most popular ways to increase the size of a business is to turn it into a franchise, which can then be purchased by individuals. Franchising provides opportunities that are beneficial to both the parent company and the purchaser. The company that owns the business can expand

Describing chosen business model, articulate the pros and cons of both company-operated and franchise businesses and explain why I ultimately chose one model over the other.

Brand quality: This is how McDonalds is seen in terms of the perceived quality if the brand. The McDonalds brand is known for quality. They advertise where there ingredients have been sourced, such as 100% Irish beef and the names of beef suppliers.

Competitive advantages give a company an edge over its rivals and an ability to generate greater value for the firm and its shareholders. The more sustainable the competitive advantage, the more difficult it is for competitors to neutralize the advantage. There are two main types of competitive advantages: comparative advantage and differential advantage. Comparative advantage, or cost advantage, is a firm 's ability to produce a good or service at a lower cost than its competitors, which gives the firm the ability sell its goods or services at a lower price than its competition or to generate a larger margin on sales. A differential advantage is created when a firm 's products or services differ from its competitors and are seen as better than a competitor 's products by customers. [http://www.emeraldinsight.com/journals.htm?articleid=880468]