Analysis Of Mcdonalds The Fast Food Industry - 1719 Words

The market has expanded rapidly, with each product being produced in many and different ways. After researching about McDonald’s, we have concluded that the corporation operates in a monopolistic competition, as there are many competitors that produce and sell products that are differentiated from on another. In the fast food industry, they all produce the same product however with different ingredients yet in a monopolistic competition they are similar when it comes to branding, quality, location and more. Moreover, they are no barriers to enter the market, thus causing no collusion. All else being equal, all firms within the market still have to compete with pricing strategies. Since McDonald’s is considered a monopolistic firm they tend to set their own price rather than the market price, this can be based on the topic of marginal cost and revenue, which are measures used to determine the amount of output and the price per unit of a product to maximize profits (Inves topedia). The graph below shows, the difference between a firm that is profitable such as McDonald’s in comparison to a firm with loss such as one of the competitors. On the other hand, some barriers within the market that McDonald’s and its competitors may face are economies of scale, which is defined as the cost advantage that arises with increased output of a product (Investopedia). Regarding McDonald’s, they also offer franchising, therefore it causes them to be more cautious about otherShow MoreRelatedMcdonalds Case Analysis1470 Words   |  6 PagesCASE ANALYSIS McDonald’s, Inc. COMPANY NAME: McDonald’s, Inc. INDUSTRY: Food Service COMPANY WEBSITE: www.mcdonalds.com COMPANY BACKGROUND: As a company, McDonald’s was first introduced in Des Plaines, Illinois in 1955. This was the very first McDonald’s restaurant, which all started in San Bernardino, California in 1954 when Ray Kroc approached the McDonald brothers with a business proposition to start a new company. In 1965 McDonald’s went public and was later, in 1985 added to the DowRead MoreEssay about Competition Among Fast Food Chains1639 Words   |  7 PagesCompetition Among Fast Food Chains MARKETING INFORMATION NEED FOR THE FAST FOOD INDUSTRY To begin with, for the fast food industry around the world, the leading fast food chains; marketing information is wrapped around from convenience location, changing preference, quality of food, pricing of fast food, potential customers, age of the customers, menu selection and diversification and last of all superior service. From marketing perspective, LOCATION for the fast food service toRead More Strategic Management of McDonalds Essay1134 Words   |  5 Pagesproblem from McDonalds case, McDonalds Polishing the Golden Arches, is how to classify McDonalds strategy through Plan to Win into one of the five generic competitive strategies. Before we solve this main problem, we should determine the chief economic and business characteristics, the five forces analysis, and also the driving forces of the fast-food industry. After that we identify the strengths, weaknesses, opportunities, and threats by using SWOT analysis. Finally, we classify McDonalds strategyRead MoreMcdonalds: Polishing the Golden Arches1199 Words   |  5 Pagesproblem from McDonalds case, McDonalds Polishing the Golden Arches, is how to classify McDonalds strategy through Plan to Win into one of the five generic competitive strategies. Before we solve this main problem, we should determine the chief economic and business charact eristics, the five forces analysis, and also the driving forces of the fast-food industry. After that we identify the strengths, weaknesses, opportunities, and threats by using SWOT analysis. Finally, we classify McDonalds strategyRead MoreA Business Report for Mcdonald’s877 Words   |  4 Pagesreport for McDonald’s Written by: Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..by Shadow Z09165640 Body Strengths...†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦by David Z09165626 Weakness...†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦by Jack Z09165638 Opportunities...†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..by Tom Z09165639 Threats...†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦by Shadow Z09165640 Summary...†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦by Shadow Z09165640 Date of report: 08/4/2011 Introduction McDonald’s was founded in 1955. It is famous for its fast food all overRead MoreMcdonalds Corporation Case Analysis1634 Words   |  7 PagesMcDonald’s Corporation Case Analysis Name left out BUSN 412 Business Policy July 27, 2008 CASE ANALYSIS MCDONALD’S CORPORATION COMPANY NAME: McDonald’s Corporation INDUSTRY: Fast Food COMPANY WEB SITE: http://www.McDonald’s.com/corp.html COMPANY BACKGROUND: The first McDonalds was built in 1940 by the brothers Dick and Mac McDonald. In 1954 Ray Kroc became the first franchisee appointed by Mac and Dick McDonald in San Bernardino, California. The following year, 1955, Kroc opened hisRead MoreUnntitle Essay1624 Words   |  7 PagesBUS 130 PROFESSOR: MIWA MERZ NAME: MINH BUI (008413691) MARKETING ENVIRONMENT ANALYSIS FAST FOOD INDUSTRY TABLE OF CONTENT I. Summary Part 1 II. Micro environment Description: A. Market B. Customers C. Competitors D. Distribution III. Macro environment Description: A. Demographic B. Economic C. Ecological D. Technology E. Political/Legal F. Cultural Part 2 IV. Additional Application of Core Marketing Concepts V. Appendix VIRead MoreComparing The Financial Ratios And Statements From Mcdonalds And Wendys1600 Words   |  7 Pagesrestaurant industry â€Å"operates restaurants and other eating places, including full-service restaurants, quick-service restaurants, cafeterias, buffets, and snack bars† (Restaurants). The fast food sector has a number of popular companies like McDonald’s and Wendy’s. Fast food chains earn the majority of their success by offering quick, inexpensive meals made uniformly around the world (Nath). This project will be focused on comparing the financial ratios and statements from McDonald’s (MCD) and Wendy’sRead MoreMcdonald s An Example Of A Service / Product Mix Essay1704 Words   |  7 Pagesservices. Goods are objects, devices, etc. Services are defined as a valuable action, deed, or effort performed to satisfy a need or to fulfil a demand. Goods producing industries are for example agriculture and construction. Both agriculture and con struction results in the creation of some kind of tangible object. The service industry includes everything else, for example banking, hotels, airlines, insurance, education, restaurants, etc. A services dominated economy is characteristic of more developedRead MoreMcdonalds Case Analysis1362 Words   |  6 PagesMcDonalds Case Analysis The most important general environmental factors to be considered for the industry and McDonalds include its demographic, sociocultural, global, and physical environment segmentations. The demographic segment is important in terms of this industry because of the consumers that make up the fast-food industry. The demographic segment associated with McDonalds consists of a wide range of consumers with their new and improved menu that offers the success of the new dollar menu