Global Players in International BusinessPresented by:-SakshiMuskanDimpleSanjeevHarpretRahulGitarattan International Business School, New Delhi
INTRODUCTION Global Players are represented all over the world and are connected inany market with a very high prestige. Volkswagen, Wal-Mart, Toyota, Shell, Allianz, Samsung, Sony and manymore among themselves to! global players are confined in internationalindustry and must then respond to global competition. As the main feature of the global players, the same can efforts on theglobal control and coordination of all corporate activities, as well asinclude the operation and edit the relevant markets worldwide.
Lower Cost New Market Cost Effective Better Quality Edge over Domestic Co. GrowthAdvantages
A fast food restaurant, also known as a quick service restaurant (QSR) within theindustry itself, is a specific type of restaurant characterized both by its fast food cuisineand by minimal table service.Food served in fast food restaurants typically caters to a "meat-sweet diet" and is offeredfrom a limited menu; is cooked in bulk in advance and kept hot; is finished andpackaged to order; and is usually available ready to take away, though seating may beprovided.Fast food restaurants are usually part of a restaurant chain or franchise operation, whichprovisions standardized ingredients and/or partially prepared foods and supplies to eachrestaurant through controlled supply channels.Ex- MCDONALD‟S, SUBWAY, BURGER KING, WENDY‟S, STARBUCKSIndustry Overview
► The first McDonalds was built in 1940 by the McDonald brothers(Dick and Mac) .► Started off as a hot dog stand in CA  the McDonald brothersrealized that hamburgers were their most profitable menu item, andchanged their business to serve a limited menu.► Employing “car hops” the McDonald brothers became the first restaurantto offer speedy service to people while they stayed in their cars.
Contd…► McDonald‟s has over 30,000 local restaurants in more than 120countries. McDonald‟s serves nearly 50 million customers each day.► McDonald‟s has its own Hamburger University in Illinois, and the firstbatch graduated in 1961.► In 1963, McDonald‟s sold its one billionth hamburger.► McDonald‟s is listed on the New York, Frankfurt, Munich, Paris andTokyo stock exchanges
GLOBAL STRATEGY OF MCDONALD’S► The concept of “think global, act local "has clearly been adopted byMcDonald‟s.► Quality is assured at restaurant and at suppliers end.► McDonald‟s believes in localization when it comes to prices.► The company is strongly committed to staffing locally.► McDonald‟s has taken advantage of technology to streamline theirprocesses and improve efficiency.
SWOT ANALYSIS ON MCDONALDS.Strength►McDonalds holds a very strong brand name worldwide►They have large partnerships with other companies that provides them with their desiredproducts, this increases the goodwill of the company►Socially responsible firms earn a good name in the market due to their projects they do to helppeople, McDonalds is one the most reputed firms who are socially responsible►It is said that McDonalds was the first food outlet to provide its customers with nutritional facts►Loyal employees and management and customers is their biggest strength►McDonalds makes sure that cultural and regional barriers are kept in mind while providing food todifferent countries►Clean environment and play areas for children where they can enjoy their time
Weakness►The weakness that hits the list is the employee turnover rate. Every year many of theiremployees are fired out of the restaurant►McDonalds mostly advertises products and food items that targets children. You willnotice that bill boards always display the advertisements of Happy Meal and any otherdeal that is ordered for the kids mainly►Health conscious people seldom complain that they do not provide us with theorganic and healthy food. This becomes their weakness when they get in the complaints►They also face quality issue at times. This affects the business as they are running theoutlet worldwide, if one franchise gets affected others also get a bad name
Opportunities►It can open up online services for their customers so that they can easily order theirdesired meals sitting at home►Discounts given on every food item may help them gain more customers►They can go for a joint venture with the retailers they work with►They can introduce healthy hamburgers and healthy drinks for the people who are healthconscious►In order to be environment friendly, they can use packing material which can be recycledlater or material that does not create pollution►As McDonalds is a socially responsible firm, they can provide more benefits to thepeople around►It won‟t be a bad idea if they introduce food items specially for breakfast
Threats►Emerging competition of similar outlets is becoming a problem for McDonalds►Health issue also becomes a problem when it comes to food►As it is a multinational food outlet, fluctuations in the currency of other countries becomes a problem forsuch companies►Recession in any country would definitely affect the whole outlet world wide►These multinational companies take special care of the culture and traditions of the country they plan to startthe business►People facing heart problems and obesity accuse McDonalds for not providing them with the healthy food►They have a threat of local food outlets in different countries►McDonalds is operating in a fully fledged economy where competition is increasing day by day thereforethey should work effectively to overcome their drawbacks because of the recession.
Introduction Subway is an American restaurant franchise that primarilysells submarine sandwiches (subs) and salads. Subway was founded as Doctors Associates in 1965 by FredDeLuca and Peter Buck in Bridgeport, Connecticut. Subway is one of the fastest growing franchises in the world with37,881 restaurants in 98 countries and territories as of November7, 2012. It is the largest single-brand restaurant chain globally and is the secondlargest restaurant operator globally after Yum! Brands (over 37,000locations).
The first Subway outside of North America opened in Bahrain, in December 1984. In 1995, SUBWAY chain begins first sponsorship with an Indy race car.SUBWAY restaurants open in China, Costa Rica, Ecuador, Egypt, ElSalvador, Honduras, Ireland, Jamaica, New Zealand, Spain, Switzerland and Taiwan.The SUBWAY brand is featured in scenes in the movie “Ace Ventura--When NatureCalls” and on TV in the animated series, “The Simpsons.” In addition to established markets, Subway is expanding into developing and LDCnations. In 2000, Subway opened its first restaurant in Croatia. First Subway restaurant in india opened in 2001 at saket, New Delhi.Global Expansion
Subway has expanded everywhere one can think of with outlets inhospitals, bus terminals, colleges, stores and railway stations etcetera. Product and Menu customization. In order to fetch fresh ingredients for the menu, Subway has allowedit‟s franchisees to opt for their own suppliers while maintaining theirtagline, „Eat Fresh‟. The total franchise fee is $ 10,000 to $ 15,000, which is very less.Global Strategy
SWOT AnalysisStrengths Customized menu per country Low franchise fee Fresh healthy fast food 37,881 Restaurants worldwide University of Subway training worldwide Partnership with American Heart Association Eco Store and environment commitmentWeaknesses Lack of consistency when sourcing materials Crowded marketplace with lots of competition from otherfranchises Low cost of entry may cause multiple franchisees in asingle marketOpportunities New Eco stores may attract new customers Partnership with Michael Phelps will attract newcustomers New Menu items to attract additional marketsegments Global expansion opportunities especially in China Sponsorship of the Heart WalkThreats Global economic crisis Food safety concerns Global competition from other franchises
KFC (Kentucky Fried Chicken) is the worlds largestchain of fried chicken fast food restaurants, headquarteredin Louisville, Kentucky in the United States.It was founded by Colonel Harland Sanders.Introduction
GLOBAL STRATEGIES• KFC was first attracted to China by the size of the country‟s marketpotential: 1.3 billion people, 20% of the world‟s total.•KFC‟s decision to locate the first restaurant in Beijing – China‟s politicalcenter – was a wise choice•KFC paid special attention to the recruitment, training, and development ofits management talents, especially restaurant management talents.• Localization strategy- local leadership team made up of US-educatedethnic Chinese drawn from Taiwan and other parts of Asia.
► When KFC first went into the Japanese market in the early 1970s, thecompany chose to form a joint venture with a large scale poultryproducer JV initiator Mitsubishi.► Changed the shape and size of its product as Japanese preferred bite-sized food.► Location of outlets moved to crowded cities and away fromindependent sites.
► KFC invests and expands to Mexico, making it the strongest market in LatinAmerica.► In Mexico KFC emphasized in wholly owned subsidiary entry mode► It followed international strategy, i.e to create differentiated products with help ofR &D and then transferring them to Mexico.► KFC operates 128 corporate owned restaurants and 29 franchises in Mexico.