Adaptation of International Strategy by Fast Food Companies

In: Business and Management

Submitted By Shash87
Words 3710
Pages 15
Adaptation of International strategy by Fast food companies

Table of Contents Executive summary 2 International Strategy 3 International Strategy Opportunities and Outcomes: 3 International strategy Lifecycle: 3 Corporate-Level International Strategies: 4 Strategic Competitiveness Outcomes: 5 Fast food industry overview 5 Market definition: 5 Market value: 5 Market Volume: 5 Market Segmentation 5 Challenges faced by fast food MNCs in India: 6 Porter’s five forces: 6 Other challenges: 7 McDonald’s 7 Some of the strategies that MacDonald’s has incorporated to be successful in the market 8 Kentucky Fried Chicken (KFC) 11 Conclusion: 13 References 14

Executive summary

This project report explains about the international business strategies adopted by various MNCs and TNCs with the help of fast food industry. For better understanding of this we took example of McDonald’s and KFC. International business strategy refers to the plans that guide commercial transactions taking place between entities in different countries. This project report takes coverage on opportunityand outcomes of these strategies, along with its lifecycle. There are various challenges faced by MNCs when they enter in new market in different countries, such as social and cultural issues, government regulations, local competitors in that market, acceptability from customer and suppliers etc., business strategies help them to resolve these challenges.
With the example of McDonald’s and KFC we explained their problems they faced as fresh entrants in new market.In all the cases we analyzed that most of the firms in this industry have to adopt local strategies for their survival in the new market. All these strategies are country specific in which they are entering.

International Strategy
International business strategy refers to plans that guide…...

Similar Documents

Fast Food

...Why are so many Americans drawn to fast food? Do they realize what goes on behind the scenes? The fast food industry operates by assembly lines. This means cheap labor because the workers specialize in one skill and are classified as unskilled labor. So, our fast food is cheap and we eat it because it's cheap, it fills us up and we have more money in our pockets to spend on other things. But, is this the way it should be? Fast food is the food of choice for many people because engineers have skewed it to be cheap only to make healthy food become more expensive. In my opinion, organic foods are what we should be putting in our bodies. But the problem is these foods are very expensive. My solution is better regulation of the fast food industry with stricter laws for hiring and producing quality foods. Unfortunately, it's not just the fast food industry that is ruining Americans health. The meat industry needs better laws and regulations as well. The average person eats 200 lbs of meat per year but if they knew how the animals are treated and what they're being fed, I believe they would reconsider what they're eating. Chickens are being fed antibiotics to make them grow faster and fatter. The slaughtering conditions are many times horrendous with workers treating the animals with no respect and abusing the animals. The reasons for much of this mistreatment is due to the fact that the workers themselves were unhappy with the way they were being treated and would......

Words: 759 - Pages: 4

Case Study for Fast Food

...Castillo International Marketing Dr. Burton BUS 343 Case Study Fast Food 1. Discuss the benefits of the law in France that would require fast-food companies to include a health message or pay 1.5% tax on their ad budgets. Will it be effective? What should a company like McDonald’s do when advertising in France? This is a great strategy leading these huge companies to provide a healthier product or support healthy food meanwhile their product is non-healthy fast food. Personally I think is effective for the society and for the fast-food companies because if the companies are taking this actions it will let the people know that they are aware of the health of the consumers providing them with choices for eating healthier meals not leaving behind the non-healthy one. These type of actions may affect the budget of each organization when they first start but after a while it would be just another payable tax, if it is a lucrative and well know company it would not be a problem like McDonalds, Burger King, Taco Bell and many others. 2. If there is no evidence that obesity rates are falling despite restricting and banning food ads children, should food companies take legal action against such laws? This question can be any of both ways depending the person and its knowledge about the topic. Personally talking from a business perspective companies that are being affected should take legal action to all of these laws that are being imposed to them. Because these......

Words: 489 - Pages: 2

Fast Food

...Fast food is affordable; being able to upsize a meal for a very minimal fee has made many our kids' gluttons indeed. Good healthful foods cost more money and take more time to prepare, for that reason, In our fast food society, it is often much easier to drive through a McDonald's than it is to cook a meal and eat it. Would you rather get a few vegetables from the market or a whole meal including: four tacos, a soda, and a hamburger for the same price? Fast food meals are not only convenient, they are often very cheap. The fact that fast food is cheap and quick is no coincidence. It is hard to avoid being drowned into the world of fast food. For instance, the ingredients on salty French fires dry you mouth out, so a large coke is necessary, too. As we can see, the fast food companies have everything so maliciously prepare, so we as the parents buy their products almost by instinct. Currently, with the strict economic times diner at fast food restaurant may even cost less than preparing dinner at home. Although, not all people think alike, some of them will probably dispute my claim arguing that we live in a busy life and that we are always on the go, but do not allow obesity to spread in your home. Take responsibility and change your life style in order for kids to have a healthier future. This is a valid reason to blame fast food chains for obesity. Unfortunately, cheaper foods are easier to acquire but they lack of nutritional values and are high in calories and......

Words: 519 - Pages: 3

Fast Food

...Fast Food Approachability I have spent quarter of my life in a miserable condition. I really feel distressed when I remember my past days. When I was in a refugee camp, one of the organizations distributed rice as a main food. Being a refugee, I did not have proper clothes to wear, a house to live in, and food to eat. I did not have any other options than to eat rice. I ate rice for breakfast, lunch, and dinner. Because of rice, I was able to survive. Therefore, the need of rice has become my want and desire. It does not matter what I eat, I don’t feel I am full until I eat rice. Rice can only make me satisfied, happy, and satiated; after coming to the U.S the environment change and I felt like now I get everything that I didn’t have when I was in my country. But as time pass I learned, America is the fastest moving country in fast food eating. People tend to eat outside of the house. This is one of the main factors that cause obesity. There are lots of reasons that people choose to eat processed foods. Today in our society, time is one of the biggest issues on their schedules because the people in here are always busy working or engaging in some sort of activities. For example, work, college and their personal time consume a lot of time on a daily basis. Besides those activities, all these fast food restaurants, good taste of fast or processed food, and less time to prepare processed food are making people lazy and they ignore to cook at home. It will even be better if at...

Words: 3133 - Pages: 13

Fast Food

...Exploring Consumer Behavior in the Context of Fast Food Industry in Dhaka City Nadia Farhana* and Shohana Islam** People in the Indian subcontinent have long been known for the delicious foodstuffs they prepare, serve, and eat. Times gone by suggest that they have used up a lot of their time, energy, and wealth to arrange their meals. But with the turn of the century, and changes in the socio-economic shape of the country, the scenario has changed; and people in Bangladesh, particularly busy city dwellers, now a day don’t seem to be having that much time, and energy, if not wealth, available to devote them for such passion for eating. A number of eating out facilities particularly fast food chains came up to cater to this lucrative market. Assuming from the cultural background of people being keen on eating; in this research we have explored the overall consumers’ behavior towards fast food restaurants in Dhaka city. More particularly, our findings reveal that we have found out the relationship of customers’ attributes related perception, quality and value related perception and convenience related perception with income, age and overall customer service for fast food restaurants. Quality and value related perception is influenced by income. There is a relationship of attributes related perception and quality and value related perception with overall customer service. Moreover people are loyal to have their food in their favorite fast food restaurants in terms of price and......

Words: 6137 - Pages: 25

Fast Food

...Threat of New Entrants - Moderate The industry is dominated by a number of international Quick Service Restaurant (QSR) chains, including McDonald’s, Burger King, Pizza Hut, KFC and Domino’s (Datamonitor, 2010). These global brands are extremely valuable, boasting strong customer loyalty and recognition; indicating consistent quality and service. Key players including McDonald’s, adapt their marketing orientation to suit local cultures and social norms (Datamonitor 2010), strengthening the brand and avoiding consumer alienation. New players struggle to compete with incumbent firms, as their brands are unknown and advertising campaigns are expensive. Established chains have the resources to retaliate aggressively through pricing promotions, deterring new players from entering the marketplace. New entrants lack economies of scale, which existing chains have developed over time, and utilise to remain competitive in this low-margin, high-turnover industry. However, social media websites have evened the playing field in terms of marketing communications; they allow firms to efficiently communicate their message inexpensively. Initial capital outlay and fixed costs are low, encouraging new entrants (Datamonitor, 2012). Threat of Substitutions – Moderate Substitutes are readily available: food can be purchased almost anywhere, through foodservice or retail. However, convenience is the value-adding component of the service which reduces the threat of substitutes. Consumers can......

Words: 638 - Pages: 3

Fast Food

...Nowadays fast food shops consider the easy way for people resort to eat according to fast life, responsibilities and short of time to cook at home. Young people and adults like to eat fast food but Government is trying to control marketing of fast food because of health problems such as obesity issues. McDonald’s need to add vegetarian meals in their menu. For example when the customer order vegetarian meal will take another one free to encourage people to eat healthy food containing low calories. We can compare that by other companies like Pepsi and Cocacola we find there is diet cola without sugar to fight obesity. Culture of society has a big impact on organization sales. For example Muslim only eats Halal. McDonald’s in UK or USA there are meals by ham burger another meal Halal but other hand McDonald’s in Arab countries cannot find Halal meal or not Halal meals because everything is Halal. When McDonald’s decided to open in Arab country commit by rules of country. Achieving happiness is very important by satisfy all needs of customers. Satisfaction of customer needs = happiness = more profit Fast food industry is very competitive. People can choose another source to eat like Burger king or KFC or other local shops. So variety of products help McDonald’s to be unique and compete the rivals. In each country should have popular meal that people famous to eat it in that country. Price is very important to customer to identify the product. In other words the...

Words: 744 - Pages: 3

Fast Food

...Fast Food Tech Fast food restaurants need distribution centers in order to replace their inventory; without the distribution centers, the restaurants would not be able to keep enough of their products in stock that would satisfy customer demands. The distribution centers hold the entire company’s product line to insure a quick and easy delivery of the products needed. Having many distribution centers, quick inventory turnovers, and easy radio frequency order placements help allow fast food restaurants to succeed. Golden State Foods is one of the largest distribution companies in the United States. With 12 distribution centers, Golden State Foods is able to accommodate all of the McDonalds that are located in California. Each distribution center has over nine hundred items stored for easy access and shipments. These items are quickly frozen in order to keep all of the freshness from the factories. Having many distribution centers scattered around California gives McDonalds an upper hand on other fast food restaurants because customers are likely to never have to go without their favorite meal due to a shortage. With fast food restaurants having a high demand for food, the warehouses have to be prepared for any amount for a shipment. The demand is so high that inventory turnovers are very quick. These turnovers can be as quick as thirty to thirty five days. Flipping a nine hundred item distribution warehouse is quite impressive. The food isn’t stored as long,......

Words: 400 - Pages: 2

Fast Food

...All such food is categorized as fast food which can be prepared and served quickly. Restaurants and kiosks provide fast food with precooked or preheated ingredients and usually served at a packaged form (Pollan, 2009). In the beginning, American hamburger and fries was considered as the traditional fast food but now the field has been widely diversified and food like pizzas, fish and chips, burgers from McDonalds and Kentucky Fried Chicken etc. are all considered fast food. Fast food market has shown an enormous and steady growth. In 2006 alone the market has reached to $102.4 billion with an annual growth rate of 4.8% (Adams, 2007). Fast food chains like McDonalds operate in more than 126 countries in six continents having more than 31,000 restaurants globally (Arndt, 2007). Burger King, another worldwide fast food chain, has operations in more than 65 countries of the world; KFC restaurants located over 25 countries, Subways is present in 90 countries with total 39,129 restaurants and so and so forth (Buthrie, Lin & Frazao, 2002). However, according to most of researches, fast food is not at all fit for health and can cause serious problems. According to Marion Nestle, Chair of New York University’s Department of Nutrition, Food Studies, and Public Health, “the increased calories in American diets come from eating more food in general, but especially more of foods high in fat (meat, dairy, fried foods, grain dishes with added fat), sugar (soft drinks, juice drinks,......

Words: 1965 - Pages: 8

Strategy Success in Gourmet Fast Food

...Assessment Case study 1 Strategy success in gourmet fast food Contents Introduction ………………………………………………… ……….. 3 The Main Forces in the Macro-environment facing the Fast-food Industry ……………………………………………………………… 3 The Main Factors that contributed to Crust’s Success and to RBW’s Poor Performance ……………………………………….. 3 The most important marketing-mix elements in each firm and the impact of their marketing-mix focus have on their performance. ………………………………………………………………………… 4 Risk from the actions …………………………………………....... 6 Conclusion ………………………………………………………… 6 Reference …………………………………………………………. 7 2 Introduction An appropriate strategy like a compass, guides a right direction of the company, it describes the direction of a company want to go. (Pirraglia,W. 2014) But a successful marketing needs a useful strategy, and also a effective implementation. (Case study, Document) A Comparison of the two fast food companies Crust Gourmet Pizza Bars, an Australian company, and Real Burger World, a company in the United Kingdom. Both of them have a similar strategy and a same purpose: product a high quality food. However, during the execution, there are two different outcomes: Crust opened in 2001, and has grown to over 50 outlets from 2001 to 2010; RWB has gone out of business before a few years ago. (Case study, Documen The main forces in the macro-environment facing the fast-food industry The food intake of the people of any......

Words: 1297 - Pages: 6

Fast Food

...Negative Impacts of Fast Food America is one the countries that have the most oversize population in the world and every day one of four Americans visits fast food restaurants. Fast food is usually packed with fat, sugar and salt which make it so unhealthy. There are many different reasons people go to fast food restaurants rather than eating at home. People eat at fast food restaurant because it is convenient, cheap, tasty and quick. We no longer live in the good old days when women would stay home to cook, clean, and take care of the kids. Women have invaded the work industry by taking over jobs that in the past only men would have, and now share those jobs with men. Nowadays, most of the women are really busy to go for grocery shopping, come back home, unpack the food, and then cook it; so they prefer to go to fast food restaurant like McDonald’s. Many families are choosing fast food restaurants instead of fancy restaurants in this bad economy situation, because fancy restaurants charge much more money than fast food and people would rather eat at those places with family only on special occasions. However parents know that the fast food doesn’t have good nutrition balance for their children. In addition, some people who don’t have families and they live by themselves visit fast food because of their busy schedule. They are too busy to cook. In conservation with one of the poll on mid March, she says that she works full time and she goes to school part time, so she......

Words: 2604 - Pages: 11

Fast Food Industry Analysis

...Bargaining Power of Suppliers | | 1. Supplier concentration | According to Tim Roache of the DPI Agribusiness Group, over 50% of the country’s land mass is classified as agricultural land. Agricultural production is undertaken by small landholders who either lease or own their lands or companies with vast agricultural estates. Due to rapid population growth and escalating commodity prices, increasing food self-sufficiency is a major concern. Similarly, food produced from large agricultural estates results in the Philippines being a major producer of sugar, rice, corn, tropical fruits, poultry, and pork. Manufacturing and agriculture comprise more than half (65%) of the country’s economy, and the agrifood sector employs over one-third of the population. Calata corporation (one of the biggest agricultural conglomerates, 2.7 billion) | 2. Availability of substitute inputs | The Philippines’ food processing sector is the most dominant manufacturing sector in the country. It accounts for 40% of total manufacturing output, contributes 20% of GDP per annum and is growing at 8-10% per annum. The sector comprises of fruits and vegetables, meat and poultry, flour, dairy products, fish and marine products, and the like. This sector is heavily reliant on both domestically produced and imported agrifood products. Recent economic liberalizations by the government has resulted in a trading system that’s relatively open and has some of the lowest applied tariffs in the region.......

Words: 2214 - Pages: 9

Fast Food Promotional and Advertising Strategies

...Fast Food Promotional and Advertising Strategies xxxx BUS 508 – Contemporary Business xxxx xxxx Strayer University Fast Food Promotional and Advertising Strategies The purpose of this paper is to compare and contrast the promotional strategies of two quick service restaurants (QSR), McDonald’s and Domino’s Pizza, which both sell fast food. The paper will also recommend two ways in which a company within the fast food industry could use marketing information to differentiate itself in the marketplace to gain an advantage over its competitors. Two uses for consumer-oriented promotions that could assist a fast food company in both the short and long term are proposed in this paper. The leading fast food company, McDonald’s, has made pricing decisions to meet their competitors’ prices so that price is a nonissue and focus rather on adding value to attract customers. When their prices are equal, fast food companies can take alternate actions in order to differentiate themselves and gain competitive advantage. Lastly, the most effective advertising medium for a company in the fast food industry, which is television advertising, is examined in this paper. Promotional Strategies: McDonald’s vs Domino’s Pizza McDonald’s is the largest global fast foodservice retailer with more than 35,000 restaurants in over 100 countries offering a substantially uniform menu with some geographic variations. McDonald’s restaurants serve about 70 million people each day (Fast Food......

Words: 2775 - Pages: 12

Fast Food

...people tend to eat outside junk food. Healthy nutritious food has been replaced by new food mantra-JUNK FOOD. Fast food is a food supplied quickly after placing an order and with limited service. Eating is among the pleasures of life, although it can be bad for someone’s health when they eat fast foods, which have high-refined sugars, saturated fats and sodium, which lead to obesity, diabetes and other adverse health conditions. Everyone should have a second thought before deciding to eat fast foods. This is because there are numerous health risks when eating foods made within a considerably short time. These foods are not taken care of properly, considering factors like the location the food is produced. Despite being easily cooked and bought, the health risks outweigh the satisfaction obtained within five minutes from the food. Therefore, people ought to think keenly before eating fast food. It has be found that due to low prices and marketing strategies adopted by manufacturers has increased consumption of junk food. This research is quite interesting to know why fast food is preferred , how much fast food is consumed ,the ill effects of junk food on health, to render health education to adapt healthy living and to create awareness. INTRODUCTION fast food is among the cheapest and easiest way of eating. It is known to safe significant amounts of time and money, especially for individuals coming home from work. As exemplified by the fast food business successes,......

Words: 540 - Pages: 3

Global Fast Food

...INDUSTRY PROFILE Global Fast Food Reference Code: 0199-2230 Publication Date: September 2010 www.datamonitor.com Datamonitor USA 245 Fifth Avenue 4th Floor New York, NY 10016 USA t: +1 212 686 7400 f: +1 212 686 2626 e: usinfo@datamonitor.com Datamonitor Europe 119 Farringdon Road London EC1R 3DA United Kingdom t: +44 20 7551 9000 f: +44 20 7675 7500 e: eurinfo@datamonitor.com Datamonitor Middle East and North America Datamonitor PO Box 24893 Dubai, UAE t: +49 69 9754 4517 f: +49 69 9754 4900 e: datamonitormena@ datamonitor.com Datamonitor Asia Pacific Level 46, 2 Park Street Sydney, NSW 2000 Australia t: +61 2 8705 6900 f: +61 2 8705 6901 e: apinfo@datamonitor.com Global - Fast Food © Datamonitor. This profile is a licensed product and is not to be photocopied 0199 - 2230 - 2009 Page 1 EXECUTIVE SUMMARY EXECUTIVE SUMMARY Market value The global fast food market grew by 3.1% in 2009 to reach a value of $201.1 billion. Market value forecast In 2014, the global fast food market is forecast to have a value of $239.7 billion, an increase of 19.2% since 2009. Market volume The global fast food market grew by 3.9% in 2009 to reach a volume of 208.1 billion transactions. Market volume forecast In 2014, the global fast food market is forecast to have a volume of 248.7 billion transactions, an increase of 19.5% since 2009. Market segmentation I QSR is the largest segment of the global fast food market, accounting for 70.9% of the market's......

Words: 8427 - Pages: 34