McDonalds environment analysis for hospitality INTRODUCTION As per British Hospitality Association, hospitality is UKâ€™s 4th largest industry which employs 2.7 million people in the UK and accounted for 27.7% of total job growth in the UK. Importance of this industry to the UKâ€™s economy can never be overemphasised. In recent past the UKâ€™s economy has faced radical changes which led the organisation to adapt and change in order to survive and grow. The aim of this research is to analyse the impact of business environment on the success of an organisation chosen from this ever growing Hospitality and Tourism industry. The study choses McDonald corporation which is a key food service retailer. McDonalds serves over 69 million customers in over 100 countries through its 36000 locations. The organisation stepped in the UK market in 1974 and has more than 1200 restaurants across the UK. References: http://www.bha.org.uk/ http://news.mcdonalds.com/Corporate/Press-Releases/Financial-Release?xmlreleaseid=123062 1.2 FACTORS AFFECTING AN ORGANISATION: INTERNAL AND EXTERNAL ENVIORNMENTAL FACTORS As per www.study.com there are a number of events and situations that impact an organisation and they can be classified into: internal environmental factors and external environmental factors (referred to as IEF and EEF hereafter). Few examples of IEF would be changes in the management, cultural changes and employee morale changes etc. Similarly few examples of EEF will be industry regulations, economic and political factors, government regulations etc. References: http://study.com/academy/lesson/internal-and-external-environments-of-business-lesson-quiz.html 1.2.1 INTERNAL AND EXTERNAL ENVIORNMENTAL FACTORS IN THE CASE OF MCDONALDS: As per Campden BRI which is a food and drink research firm, there are six challenges that this industry will face in 2012 and beyond. The Campden report broadly classifies these factors as Manufacturing challenges Innovation Food Drink and the Consumer Safety Knowledge The tables below classifies the Campden BRIâ€™s six factors as IEF and EEF applied in the case of McDonalds. Source: http://www.foodmanufacture.co.uk/Supply-Chain/Campden-BRI-s-six-food-industry-challenges 1.2.2 ANALYSING INTERNAL AND EXTERNAL ENVIORNMENTAL FACTORS IN CASE OF MCDONALDS This section tries to analyse various IEF and EEF based on 22.214.171.124 RAW MATERIAL CHALLENGES/SUPPLIERS- AN EXTERNAL ENVIORNMENTAL FACTOR The foremost supporters for McDonalds are their supplier as they are the one of the largest company to supply burgers in the US. Customerâ€™s reputation is highlighted through maintained system of service, quality and cleanliness in every aspect. They have also met or exceed USDA standards that are strictest in the food industry. The public supporters are in general multiple support clubs and with respect to customer group represents multi fan sites and blogs. 126.96.36.199 MANUFACTURING CHALLENGES / AN INTERNAL ENVIROMENT FACTOR Analysing the business environment will attempt to demonstrate the complexity of issues arise with the organisation. They have developed network operation and distribution system. The company has been able to achieve consistent product taste. Their focus is on delivery sales and protecting its life time reputation. McDonalds has also done culture adaption to consider vegetarian options for their all universal food branch. 188.8.131.52 INNOVATION / AN INTERNAL ENVIROMENT FACTOR The innovation will increase both product quality and longevity. 184.108.40.206 FOOD, DRINK AND THE CONSUMER / McDonaldâ€™s had maintained the quite low bargaining power of buyers. They are very low risk of switching customers into other brands. There was quite stagnant image among the customers through quality of differentiation, customer care and other promotions. 220.127.116.11 SAFETY / REGULATORY AND STATUTORY COMPLIANCE 18.104.22.168: KNOWLEDGE / 22.214.171.124 EXPANSION/ NEW GEOGRAPHICAL MARKET A number of key internal and external environmental factors constitute the elements of long term sustainable growth plan and it will not be wrong to say that the geographical diversification is vital element to fuel growth. As per the companyâ€™s corporate website: â€œWe believe these priorities align with our customers evolving needs, and combined with our competitive advantages of convenience, menu variety, geographic diversification and System alignment will drive long-term sustainable growth.â€ Looking into the recent trends it can be said that McDonaldâ€™s growth is fuelled by its franchise business. As per the companyâ€™s official website â€œWe view ourselves primarily as a franchisor and believe franchising is important to delivering great customer experiences and driving profitability. At year-end 2014, more than 80% of McDonaldâ€™s restaurants were franchised. SOURCE: http://www.aboutmcdonalds.com/mcd/investors/company_profile.html http://www.aboutmcdonalds.com/mcd/investors/company_profile.html References: http://www.bha.org.uk/ http://news.mcdonalds.com/Corporate/Press-Releases/Financial-Release?xmlreleaseid=123062 http://www.mcdonalds.co.uk/ukhome/Aboutus/Franchising.html Competitive advantage http://www.mcdonalds.co.uk/ukhome/Aboutus/Development/Locations_and_contacts.html McDonald is very open about its grown plans. On the official website the company has posted geographical regions for its intended growth region and invites the public to propose a development site. The study feel that by using this approach McDonalds is making an effective use of public information by providing an open platform for the local. This information gathering methodology not only is more efficient in terms of using local public knowledge about the area, but is also effective way of reducing planning, research and development cost and time that goes is development of a new site. This marketing strategy also adds to Brand awareness, brand recognition and stronger connect via the local people. Negative: The Company may end up losing a lot of time effort cost in moving in a direction which may not be fruitful. To afford a comparative analysis of the internal and external environment of McDonalds this study has used KFCâ€™s corresponding data. Itâ€™s structured as an independent business with responsible accounting operations, community relations, training and human resources. They offer both counter service and drive through service with indoor and outdoor seating. In 2006, introduction of forever young brand was to redesign the current structure outlet of restaurant. One of the cornerstones of McDonalds success in the UK is its property portfolio, which provides a well located and convenient network of restaurants throughout the country for our customers to use and enjoy. There are almost 1200 restaurants to be found in a variety of locations such as traditional high streets; shopping centres; retail parks; roadside locations; leisure centres; railway and airport termini and motorway service areas. We are renowned for being the pioneers of the drive-thru restaurant concept and are the UK and world leader in this sector. This continues to be the key focus for our growth. Due to the growing success of the Company, the intention is to increase the pace of acquisitions with a target of 40 new restaurant openings per year from 2014, which will create up to 2,400 new job opportunities annually. The primary vehicle for this expansion will be freestanding drive-thru restaurants where convenience is key or locations in new or existing retail and leisure parks and transport hubs where visits are often part of a linked trip. Competitors http://www.kfc.co.uk/join-us/become-a-franchisee/ Mc Donaldâ€™s has a much stronger presence in the UK Market as compared to its competitors whereas a key rival KFC has 800 branches across the UK. http://www.kfc.co.uk/join-us/become-a-franchisee/ As evident from the information openly available on the website of Mc Donaldâ€™s KFC it appres that the cost of opening a Mc Donaldâ€™s franchise is much less as compared to cost of opening a KFC franchise. They suffer tough competition through burger kingâ€™s that are specialised in beef products. Wendy has also been added as a competitor due to high hamburger chains. They are other companies as well who are gaining market shares due to specialised in gourmet coffees, pasties and fresh sub sandwiches like Subway, Greggs and Starbucks. http://www.kfcdevelopment.co.uk/faqs/ KFC pays finders fee Do you pay finders fees for introducing a site? Yes we pay generous finders fees for recognised introductions Â£20,000 for DT sites and Â£12,500 for food courts/restaurants.* Figure: Competitors of McDonaldâ€™s A table showing a comparative analysis relating to the franchise between Mc Donaldâ€™s (UK) and KFC (UK) based on information directly available from the website. http://www.mcdonalds.co.uk/ukhome/Aboutus/Franchising/the-finance-bit.html http://www.kfc.co.uk/join-us/become-a-franchisee/ Opponents McDonaldâ€™s has been targeted due to their popularity in the food industry. Recently there was criticism about the cow disease crisis which showed serious threats towards world health. Children welfare society also opposes this company about their advertisement on happy meal which continuously attract children to buy their products. The other opponents are mainly animal rights groups that supported animal cruelty, which are against the manufacture of food produced by killing animals. Environment Analysis McDonalds differs from its Competitors All leases are taken in the McDonalds Restaurants Ltd name McDonalds take leases up to 25 years McDonalds has a superior covenant strength achieving yields of between 5% and 6% Site requirements Mixed Use/Retail Parks/Leisure Parks/Main Arterial Routes Co-location opportunities with hotels and petrol stations considered Ideal site size is 0.5+ acres All opportunities considered: Standalone units/Leasehold or Freehold sites up to one acre Our Recommendations: The research asserts that being in food industry the importance of maintaining a healthy and clean image in the eye of the public can never be overemphasized. Having said that, the increasing competition in the industry may lead to targeted negative criticism towards McDonalds. Developing a proactive crisis management team will be key element to manage any crisis situation. This study feels that there is a direct correlation between growth planning and the number of outlets that an organisation can open in new geographical areas across the UK. The franchise model plays a key role in deciding the growth path in the UK market and how well McDonaldâ€™s and its competitors manage this model will determine the organisations future share in this industry segment in the foreseeable future. Below are some key recommendations: Proactive measures to find a store location in the newer markets: Whereas, inviting public to propose a site for an outlet is a very cost effective and efficient way for growth planning, at the same time the study feels that McDonalds should take proactive steps to capture all the key locations in the major towns and cities. Using extensive market research, talking to local people and other direct means of research will be highly recommended for this purpose. Encouraging active participation of local resources: From finding a new location to the stage of complete set up of a franchise store, the process may involve a close liaison with local public. The study feels that there should be more incentive for the local parties to take an enthusiastic participation in this process. The study found that the KFC offers a â€˜Finderâ€™s Feeâ€™ covenant openly disclosed under the FAQ section whereas provision for such a clause was missing from McDonalds website. Full disclosure of key information which is vital for decision making: If the franchise procedure is explained well, it could play a key role in encouraging people to show active participation in the process. Whereas KFCâ€™s website discloses information about handing of planning permission and the time duration involved in the whole set up process very openly, this was found missing from the franchise FAQs section of the McDonalds website. Clear and full disclosure of the vital facts will afford more tools for informed decision making in the hands of perspective franchisee.
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Organ Donation in USA - Essay Example
Advanced countries have managed to create a balance between deceased and living organ donation while developing countries are accused of practices such as transplant tourism and organ commercialization leading to ineffective organ transplant practices. As such, the paper proposes tax policy implementation in order to address the issues facing the organ transplant practice in an effective manner globally.
As replacement human kidneys was initialized in more than the past six decades, particularly the introduction of deceased-donation systems in the U.S. the Western model associated with organ donation is heavily linked to unpaid giving. This form of donation takes place due to altruistic reasons. This means that the donor of an organ does not do so to realize material gain. Since organ transplantation has spread to different parts of the world, the unpaid donation model has not followed the different social, medical, and legal settings. Nevertheless, in the past 25 years, professional and intergovernmental organizations have come forth to make organ donation a global ethical norm. Since this practice remains tenuous, the gains made to safeguard the interests of susceptible, desperate organ sellers from exploitation may be lost easily (Capron, 2014).
Presently, organ transplantation is carried in more than 100 countries globally, although the rate at which it is carried out varies tremendously. In 2011, for instance, approximately 112,631 organ transplants were reported worldwide, an 11.6 percent from 2008, after the adoption of the Istanbul declaration targeting transplant tourism and organ transplant. Deceased organ replacement grew by more than 5.5 percent annually during this period. As such, World Health Organization (WHO) proposed that the organ transplantation practice should be implemented to its utmost therapeutic potential. Here, living donors are essential, particularly if they are legally,
Multivariate Data Analysis - Factor Analysis - Assignment Example
There are different variables affecting the marketing studies like product price, product size, product weight, product composition, color, etc. These variables will make the customers to buy the products. The information for factor analysis in marketing studies is collected through the market surveys or by focusing a group. By these surveys, the company can know about their product variability. They can understand about their products in the market and they can discuss what are the factors affecting the customerâ€™s product purchase.
The increased competition in the market makes the companies hire new strategies that will please the customers. The companies like to retain their existing customers as they will be loyal to them. They know it is easy to handle the loyal customers than the new ones, who are ready to pay high amount also. But the profit will decline if the existing customers go for other options. If they are not satisfied they will really wish to change their existing brands and go for new ones.
The surveys, observation and focus group are some of the methods used in marketing analysis. The variables used in these surveys will include the companiesâ€™ full services to the customers. They are not only dealing with the product that they buy, but also with the location of the store, parking availability, etc. There will be different type of customers and they are classified into different categories like younger ones, older peoples, ladies, etc. These customers have different type of options to select their product and the company has to focus on the needs of these peoples. The customer mainly relies on the factor of satisfaction; both with the quality and service. This makes better sales happen and it provides a loyal customer to the company.
These factor analysis results will show the importance of relationship between different factors. Some factors
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