MCDONALD

Analysis of McDonald



Analysis of McDonald

Introduction

Technology in the fast-food industry is no end and means of production used very domestic or traditional. This market, the nature of it becomes very dynamically in a sector that develops rapidly, which led to the inclusion of large companies that brought technology (Burger King, McDonald's), but very few in relation to fast-food market.

Background of Mc Donald

In 1937, Richard and Maurice McDonald developed a simple-food processing, and assembly line at a small drive in restaurant. McDonald's in now the largest and well know global fast-food retailer (Yunxiang, 1997).

Business Description

McDonald's serves around 30,000 fast food restaurants that sell a menu of convenience food. McDonald's operates at a uniform standard and service. Besides from its outlets, McDonalds have new chains to meet the different sectors in the market, in the UK, Aroma Café is a chain of coffee houses selling sandwiches and desserts (Yunxiang, 1997).

Situation Analysis

In order for McDonald's to analysis its situation; it must split its whole situation into four segments, two external and two internal. Each one will help them to analysis these segments and to aid in decision making (MacDonald, 2005). McDonald's should identify that changes in the five forces will present opportunities and threats, and prepare for them. Ethics primarily based on individual concept and personal belief, in business relates to individual managers and other employees and their decisions and behaviours. Though individual managers or employees from different countries may have different perceptions and concepts about ethics but an ethic concerning labour rights should have one universal dimension which is just and that protects and satisfies basic needs of labours in all respects (Eric, 2002)..

With more health wariness consumers, it is essential for the fast-food market to adapt to changes. Last year burger restaurants sales grew only 2%, whereas sales at sandwich restaurants like Subway jumped 8%. McDonald's seem to have lost its capability to compete with rival's more innovative products, such as Burger King's fries and whoppers. With increasing competition from healthier options as well as other fast food chains, McDonald's need to make drastic changes to maintain its position as market leader. Higher standards of living and social ambition have affected the way people want to buy. An increase in culture and taste, organic foods, up market restaurants and quality has become more significant, consequently; consumers are deterring away from fast food. One important area of cross-cultural and international ethics is the treatment of employees by the organization (Eric, 2002).

Market Trends

Trends and Opportunities for an Emerging Market report by Packaged Facts explain that everything has changed in the food service industry. As proof of this new trend, consider these facts (Eriberto, 2000):

Almost 1/3rd (31%) of consumers who frequent restaurants for eat-in or take-out meals use their computers to place orders.

About 1/5th (21%) of consumers use mobile phones or other devices to place restaurant orders.

Organizational cultures of the companies in this market often not suitable to the population ...