McDonald decided to restructure its legacy and business strategy in accordance with poor revenue for the first quarter of 2015. Their priority is to expand franchises in the most profitable regions and high-growth market.
First of all, I choose this article because I interested in business news. This news could be a representative of globalization since McDonald, one of the biggest share in IEO (Informal Eating Out), alters their legacy attitude. Many brands of fast-foods pop up in the market, results a extremely competitive market. Thus, price is almost inelastic.
Furthermore, in my perspective, I think McDonald used the right strategy. They will expand their franchise in countries that has high profitable and high growth rate. The reason for this is consumers in that area have high demand. Thus, it is a good way to increase their supply.
Last but not least, to be a chief executive has to have an innovative mind and a stretch target. If you want your business to go further, you have to be a consumer focused brand. You have to focus on firstly on people not your product. Hence, this is not too late for the Mr.Easterbrook's brilliant plan.
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Reference
McDonald's announces shake-up plans. (2015, May 4). BBC News Business. Retrieved from http://www.bbc.com/news/business-32581057
After read your article, I think McDonald has changed their marketing strategy because the world is changing. It also reminded me that everything is changing all the time.
ReplyDeleteI think most businesses have its strategy to support the product to well-known in the market like this article. It's a great idea to expand the branch of McDonald because nowadays mot people prefer to be more comfortable than that of the past; in addition, the heart of market is customer. Therefore, if the product can be available for all people, the income and profit will definitely increase. In Thailand, for example, I often see McDonald discount 50% french fries. It support the market of Thai people who prefer to buy cheaper things. Another example in Thailand is that I see a lot of McDriveTrue have opened. This makes people comfortable and easy to buy it. So, the strategy is good for both McDonald and customer.
ReplyDeleteI visit McDonalds about once a year. One of my friends has a young son, now eight, who likes to go there as a change from the places I usually drag him to. At least I've persuaded him to opt for Burger King in preference to McDonald's. I don't like either very much, but I think Burger King tastes a little better.
ReplyDeleteHappily, Ea is usually happy to go along with my eating preferences, although there are some advantages to McDonalds and the like: they are cheaper, and they are fast.
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ReplyDeleteI agreed with you that McDonald try to expand their franchise in many countries that have high demand. For example, there were only branches of McDonald at Bangkok in long time ago, but now there are many branches of McDonald at one city of Thailand. A lot of branches help McDonald has big market share in this industry which also make McDonald has power to fix a price of product.
ReplyDeleteAccording to local culture, people in different country have different life style and different local food which make McDonald adapt itself such as using local ingredient make new menu in each country. Therefore, understanding local people is main point which McDonald has to attend
The last time I went to McDonald's was when the price for a normal pork burger is still around 19 baht.
ReplyDeleteThe last time I went to McDonald's was when the price for a normal pork burger is still around 19 baht.
ReplyDeleteI've just read the article about McDonald's plan from the well-known business page on facebook, named "แกะดำทำธุรกิจ" (You are interested in business so you should visit and like it. There are many interesting articles and thoughts about business). He has just state his ideas about this and it is very interesting so you should have some look on it. This is the link : https://www.facebook.com/Blacksheeprunbusiness/photos/a.170070333043805.55908.139289596121879/921490037901827/?type=1&theater
ReplyDeleteI think if you want to make your business grow better like McDonald, you should understand this three words, "first" "best" and "different", and use it to adapt your business. For example, I will talk about business about some product. First, the word "first" means you must be a first company that sell this product. If you can't be "first", you should be the "best" in the kind of your product. Lastly, "different" means you product should be different from other company.
ReplyDeleteBeside its business strategy, McDonald's convenient service is another reason for its success. Drive-thru system, for example, has been used in McDonald since it was established. Fortunately, people loved this system so much because they can buy and eat hamburger while they are in cars. McDonald has become one of the most popular company in the world since then.
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