Fast food outlet of American- style, with the motto QSC&V(Quality, Service, Cleanliness and Value)
Gradually expanded and by 1983 it had over 6000 restaurants in US.
In 1967 started international chain affiliations clicking off from Canada.
A well recognized in every continent their own fashion with more than 18 million people in over 40 countries eating at their outlets.
Strengths Rapid establishment of brand name. Concentrated on limited menu of high quality, moderately priced and a good ambiance. Motto: QSC&V (Quality, Service, Cleanliness and value) Well established chain affiliations. Immense planning and best controlling techniques.
Weakness Had to make some concessions . Failure in far Eastern countries where the restaurants are joint venture with local entrepreneur who owns more than 50% of the restaurants. Same product served through out the time with only small alterations.
Opportunities Great opportunities in the growth of chain affiliations. American fast food style was whole heartedly taken by other countries, helped in rapid growth and springing up of more franchisees. Through introduction of products in to various markets. Appreciation of products in Moscow. Burgers being snacks in Japan ,the “fast sushi” Japanese restaurants stand their rivals.
Threats Handling of franchisees in several countries like France, Japan, Germany operated by local managers and owners. Addition of new products can effect the existing systems and operations. Tough competitors like Burger King, Wendy’s, KFC and Pizza Hut . Coming up of semi cooked fast food in super markets and convenience stores.
1.What opportunities and threats did McDonalds face? How did they handle them? What alternatives could they choose? Opportunities Growth of Franchises- was strewed by motto QSC&V and they are allowed to make adjustments to the local market resulting in popularity. Focus on increasing COFFEE drinkers. Increase in chain market and the love towards American fast food style.
Threats Handling of franchises in various nations that are operated by local managers and owners. Addition of new products may affect the existing operations-controlled distribution. Emerging Semi cooked fast food packs available at super markets and convenience stores-more boosting of market.
LINGER ZONE: This will offer armchairs, sofas and WI-FI. GRAB AND GO ZONE: This will feature tall counters with bar stools for customers eat alone; Plasma TV’s will offer them news and weather reports. FLEXIABLE ZONE: This zone targets the families. Introduction of premier coffee.
2.Why do you think about McDonald’s succeeded in Europe? What strategies did they follow? How did it differ its strategies in Asia? Fast family oriented services, more weight age to cleanliness and service of value. Children were welcomed more warmly. Entertained in their own fashion. They were their main target . Excellent product handling , cooking procedures and smarter kitchen layouts of set standards with stricter controlling. Same basic menu in every restaurant.
3.How did McDonald’s enforce its basic philosophy to adapt different environments? Basic philosophy of McDonald’s is QSC&V. Best quality, service, cleanliness and service of value are the most important basic principles in hotels and hospitality which contributes to the care of customers which is more important to all. The neat combination of these principals can set any where in this world where it is dually accepted by every one.
4.Should McDonald’s expand its menu? If yes, what kind of products should it add? Yes, the menus should be modified. Other than its fixed menu McDonald’s can crisscross various delicious different cuisines. The menus may also add classic recepies of fast foods which are being left forgotten in the racks.
5.Why was McDonald’s successful in Moscow? Planning of 14 years. Massive advertisements in news papers and campaigns based on their surroundings were conducted ensuring public participation to kick off product sales. Job offerings with a high salary to the public.