Analysis of the international presence of Mc Donald's
- Analysis of the market in terms of the offer
- Sector definition
- Supply structure
- Evolution of the size of the sector
- Price evolution
- Direct distribution
- Indirect distribution
- Demand quality
- Macro environment
- Sociocultural factors
- French legislation on eco-tourism
- Economic factors
For over 50 years, McDonald's has been the leading fast food chain in France. It has tremendous international growth, as discussed in the report, and the result is a combination of several ideas that have distinguished McDonalds with the competitors of the era: a franchise system allows the group to adopt a strategy of international standardization and local adaptation.
If McDonald's is currently the undisputed leader in the fast-food items, one might question the leadership in its future years: market saturation, increasing competitive environment, and unfavorable branding. Soon, McDonald's had put its actions in place by attempting to address these different aspects. Through this presentation, one dwells more particularly on: the place of McDonald's on the international market, the current organization of Mc Donald's, the risks subject to McDonalds and the possible solutions.
The internationalization of McDonald's began in 1967 in Canada.This implementation is a success obvious. So much so that in 1984,a new restaurant opens every 17 hours. Currently, McDonald's is present in all continents (Europe, America, Asia, Africa), especiallywith the "Big Six" made in Canada, Japan, Germany, Australia , France and England, representing 80% of international sales of the company.
In 2005, the group has 31,561 restaurants worldwide, including more than 15,000 outside the United States which, as we shall see latercan cause problems for development of the group.
Fast food is characterized by the absence of table service, the ability to eat or not there, standardized products and industrial manufacturing methods. In 1999, the industry in France represents a turnover of 2 billion euros of a total of 28 billion euros corresponding to the global market for the catering business.
In 1955, the creation of McDonald's more than a dozen companies had adopted and developed a franchise system in the industry of fast food. For Ray Kroc, co-founder of McDonald's, the introduction of a franchise system was undeniable. He said the franchises were and are now the way to achieve rapid global expansion and to ensure standardization of the model.
At present, nearly 80% of restaurants are McDonald's franchises.
In the conventional system, "a company sells an exclusive right for a specific region. Often, the buyer in turn sells its operating rights. The system then implies a local independence of the franchisee and is forced to pay a percentage of all intermediate level higher than his. McDonald's follows the logic of long-term strategy where the brand is sacred. A Mc Donald's, franchisee must prove itself before he can open a new site.
Through the presentation of the McDonald's group, one can observe that the international growth of the group was made dramatically.This success is the result of a combination of several ideas that have distinguished McDonald's from its competitors like
the application for a restaurant franchise system, and the combination of standardization of the offer while adapting to local characteristics.
However, the situation of the world's leading fast-won is in dispute.Control of the dominance of McDonald's in a sector where competition is fierce requires a questioning and an adaptation ofthe strategy to the market reality.
Tags: McDonalds, international operations, franchise system