while there are no significant barriers to entry, still to grow into  major brand is not easy because there is still a large investment in marketing as well as having skilled human resources as well s having the other infrastructure required for growing into a large and global brand. Moreover, from Dominos to Burger King there are several large and influential brands that are aggressively competing for market share in the fast food industry.

Objectives | 9 | Although its menu differs across geographies based on local taste and preferences, the brand still serves a substantially uniform menu. However, the company’s…. Due to such a large system being heavily dependent on franchisees quality control sometimes become difficult. To understand a company’s position in the market, an analysis of its strengths, weaknesses, opportunities and threats is done.

In 2017, a large number of McDonald’s restaurants in New Delhi India were found to be serving low quality food and had to be shut down.

McDonalds has a large customer base and enjoys very high level of customer loyalty. The total amount that it generated in sales equalled 2.4 trillion dollars. The most important strength of a global brand is its brand image and brand equity. Only very few people knows the secret recipe of McDonalds. ecnext. All these competencies have enabled it to grow its market share and customer base. However, both operating income and net income of the brand have kept rising during the last three years.

Competitive rivalry among the existing brands: The level of competitive rivalry among the existing brands in the fast food industry is very high.

You can get your Introduction Because of this, though traditionally corporate headquarters preferred to centralize decision making, the upper management team started to allow the localization of their franchisees by providing franchisee owners the freedom to experiment with store layouts and design. LE MAI ANH – ID: 435373

According to the U.S. Census Bureau the official description of the snack and nonalcoholic beverage bars is as follows: The number of QSR brands in the global fast food industry has grown high and McDonald’s has continued to compete on the basis of price, quality customer convenience and flavour. McDonalds sources its raw material from all around the world. Global Marketing, 6e (Keegan/Green) It was because the industry was quick to adjust its menu and prices. Diff: 1 Page Ref: 4 Materials sourced from these suppliers are bright to the McDonalds distribution centres worldwide. TRAN NGOC HUONG GIANG – ID: 435450 It is because the brand has been able to build very high level of trust among its customers. This only means that employees of McDonalds are skillful as compared to other companies. However, it does work to manage its quality standards and enforces them with the help of quality teams. However, McDonalds remains the most popular brand due to its quality and variety of food and extensive presence globally. The company’s foods are very hard to imitate due to legal protection as well as the acquisition of skilled individuals to manage the firm. Organizational Capabilities Organizational capability of McDonald’s is to combine tangible and intangible resources to run business efficiently. the US restaurant industry has seen every fast growth once the recession passed. HR & Culture: The HR management and culture of an organization are important resources and every organization including McDonalds has its own culture. Let a Professional Writer Help You, © New York Essays 2020. While the brand’s systemwide sales increased 7%, consolidated revenues decreased 7%.

This in turn leads to lower consumer spending because of lower disposable income. Upon learning that the hospital only had 10 months of cash on hand, she began…. However, still it serves a rather uniform menu globally with minor local variations to suit the local taste. Fast food brand are investing a lot in marketing as well as customer service. these small variations are made in order to suit the taste of the local customers. in English literature from BRABU and an MBA from the Asia-Pacific Institute of Management, New Delhi. Operations: McDonalds is operational in around 120 countries. With that, all the available markets would be on their hands giving them the power to “monopolize” the production. The steps taken above by McDonald’s were a means to again become more relevant with their customers as well as striving to make their competition irrelevant though the use of strategic logic called value innovation.

These newly decorated McDonald chains were a stark contrast of the industry standard restaurant themes of the past.