Adaptation Mcdonalds

McDonalds Going Inter matter International Marketing Mag. K. Roth group 2 Florian Antos Vladimir Slon Christoph Gluszko 1 Christian Schromm ALL YOU WANTED TO KNOW ABOUT McDonalds 2 History McDonalds mass is the worlds largest chain of fastfood eating places, primarily copeing hamburgers, chicken, French fries, milkshakes and soft drinks. More recently, it also offers salads, fruit and carrot sticks. The line began in 1940, with a restaurant opened by Dick and Mac McDonald in San Bernardino, California.Their introduction of the Speedee supporter System in 1948 established the principles of the modern fast-food restaurant. The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc, in Illinois on April 15, 1955, the ninth McDonalds restaurant overall. Kroc later purchased the McDonald brothers equity in the companion and led its worldwide expansion. 3 What are the advantages and disadvantages of accommodation strategy used by McDonald s? 4 1.Advantages and Disadvantages of adaptation strategy Advantages Diffe carry cultures consider different consumer needs and tastes Political and legal environment of the internationalist foodstuff that they plan to enter Differences among nations in terms of cultures, religious believes, political and legal systems, customer set and lifestyles, and stages of economic and market development Differences in the advancement of technology Competition plays a major use of goods and improvements in determining if a company will adopt a product adaptation turning away 1. Advantages and Disadvantages of adaptation strategy Disadvantages The costs associated with adaptation can also play a major government agency in determining whether or not a firm chooses to standardize their product 6 1. Advantages and Disadvantages of adaptation strategy Cross any boarder and you will find multiple variations from price to product, starting with the presentation. Misconception that M cDonalds is the kindred everywhere.Country teams have considerable autonomy to develop and market new product lines. Menu differences Netherlands and Austria Beer Germany Chinese workweek Canada Mc Pizza India Goat and lamb burgers half of menu vegetarian Japan ingredients such as pilfer and Teriyaki USA Barbecue bacon Burgers, sausage breakfast burritos 7 Are there examples of truly global notes that never customized? 8 Are there examples of truly global brands that never customized?Truly global Brands In habitual we can say that straight extension (=standardization) has been implemented and already been successful with cameras, consumer electronics, and many machine tools. Stihl ( machinery and chainsaw producer) Nikon Olympus, Canon ( camera producers) Kitchen Aid (consumer electronics ) Caterpillar (trucks, bulldozers) 9 What have been the key factors that have led to McDonalds global success? 10 2. What have been the key factors that have led McDonalds to globa l success? firm service enabled by a limited menu, focus on cleanliness, family friendly facilities, good value for property Emergence of cash-rich, time-poor lifestyle Societal acceptance of a to a greater extent casual approach to eating on the run underscored the emergence of McDonalds Innovations in food preparation technology and service language providing a fast- service format that customers appreciate as well as a cost base that competitors found effortful to match Waiter labor cost savings passed on directly to the consumers by lower prices McDonalds was the leader to introduce franchising in the global marketplace, augmenting the organic restaurant growth by harnessing the management, cultural and entrepreneurial capabilities and expectant of local anaesthetic businesspeople around the world.Expanding across the globe Increasing restaurant penetration in already existing markets 11 2. What have been the key factors that have led McDonalds to global success? K ey Faktors Economies of collection plate in production and distribution Power and scope Brand image was country suited capability to leverage ideas quickly and efficiently Uniformity of marketing practices Pervasiveness of McDonalds brand 12 2. What have been the key factors that have led McDonalds to global success? McDonalds is seen as the number one representative of the all American lifestyle, which at the time when the expansion began was very popular. In some countries it is still a status symbol to go and have a meal at McDonalds.Generally the cooperation is at pains to offer a selection of regulate core products ( Big Mac, Soft drinks, French Fries) in addition to locally accepted alternatives. Giving the multinational cooperation a local Face (thinking of Salzburgs restaurant) In order to use synergies on the one hand and hack national competences on the other a supranational administrative department had been set up in Europe. McDonalds. has always been su pported by US foreign policy Sources http//de. wikipedia. org/wiki/McDonalds Kotler/Keller Marketing focus 13 What are the risks and benefits of choosing the franchising system for franchisor? 14 3. Risks and Benefits of franchise system Benefits for franchisor The franchisor profits from the strongly motivated franchisee as a self-dependent entrepreneur The franchising as a way to overcome the resource scarcity through the direct market access The ability to overcome the high costs of arranging the new distribution network through using the well tailored network of franchisor Low capital givements for the product placement and region marketing through the franchisee The benefits from using a recognized brand name and trade marks through the story of the franchisor Extended expansion possibility through franchising 15 3. Risks and Benefits of franchise system Risks for franchisor The existence of multiple, geographically scatter owner-managers makes the control difficult Possible high costs of training development, promotional and support activities of franchisee Service delivery may be inconsistent because of geographically dispersed franchisees 16 What are the key issues by oscilloscope up a McDonalds Franchisee? 17 4. Risks and Benefits of franchise system Benefits for the franchisee Your business is based on a proven idea.You can check how successful other franchises are before committing yourself. You can use a recognized brand name and trade marks. You benefit from any advertising or promotion by the owner of the franchise the franchisor. The franchisor gives you support usually including training, help setting up the business, a manual heavy you how to run the business and ongoing advice. finance the business may be easier. Banks are sometimes more likely to lend money to buy a franchise with a good reputation. Risk is lessen and is shared by the franchisor. If you have an existing customer base you will not have to invest time looking to set one up. Relationships with suppliers have already been established. The ability to overcome the resource constrains. 18 4. Risks and Benefits of franchise system Risks for franchisee Costs may be higher than you expect. As well as the initial costs of buying the franchise, you pay continuing royalties and you may have to agree to buy products from the franchisor. The franchise cartel usually includes restrictions on how you run the business. You might not be able to make changes to suit your local market. The franchisor might go out of business, or change the way they do things. Other franchisees could give the brand a bad reputation. You may find it difficult to sell your franchise you can only sell it to someone approved by the franchisor. 19 4. Costs and Restrictions Costs Financial Requirements/Down Payment sign down payment for opening (40% of the total cost) or an existing restaurant (25% of the total cost) about 200. 000 $ nonborrowed resources Financi ng McDonalds does not offer financing McDonalds Owner/Operators enjoy the benefits of our established relationships with many national lending institutions 20 4. Costs and Restrictions Restrictions During the term of the franchise, you pay McDonalds the following stipends Service fee a monthly fee based upon the restaurants sales performance (currently a service fee of 4. 0% of monthly sales). Rent a monthly based rent or percentage rent that is a percentage of monthly sales. Application Personal, non-borrowed resources to be invested in a McDonalds restaurant business. Business get down in the market where they are seeking a franchise 21 What strategy would you adopt to batten down a great exposure for McDonalds to a growing trend towards healthier eating? 22 5. Healthier eating at McDonalds Currently Low fat products in UK outlet Canadian light choices of Menu with a Soya bean McVeggie Burger, salads with a fat free dressing and a granola topped fruit yoghurt On packaging calorie and fat content information for the primary time as it tries to counter the obesity lobby 23 5.Healthier eating at McDonalds upcoming perspectives Using biologically grown resources Fat reduced meals Healthier ways of processing the food (eg. entert fry chips but bake them, less white bread burgers, regular vegetarian dishes,) Healthy, freshly squeezed Mc Shakes etc. Healthier Drinks not only Sodas To ensure high-quality, fresh ingredients, farms are set up in order to supply restaurants 24 Sources www. McDonalds. com www. freeforessays. com/show_essay/55461. html D. Jobber Principles and Practice of Marketing Sources http//de. wikipedia. org/wiki/McDonalds Kotler/Keller Marketing Management 25 THANK YOU FOR YOUR ATTENTION 26