Competitive Strategies & Government Policies

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Competitive Strategies and Government Policies

Brenda Ocampo, Eileen Pool, Bernardo Villegas,

Roderick Phipps, & Mohammed Alodeh

ECO 365

February 4, 2013
Gregory Czarnecki


The fast food industry is a highly competitive environment. For a leading chain such as McDonalds they always need to be thinking ahead about the competition and how the economy affects their industry. Although McDonalds is one of the biggest fast food chains they have to be aware of new companies entering in to the market, mergers, globalization, pricing, and how to continuously sustain their profits. By being aware of these main points they stay ahead in their market. Next McDonalds must regulate themselves in regards to global competition with decisions made by management. Within the fast food industry they must be consistently aware of their labor demands, supplies, relations and unions. Besides keeping track of the competition and the current economy McDonalds must also stay on top of the current and expected government and polices as well as their own rules and regulations. Market, Mergers, and Globalization

McDonalds, is in restaurant industry but narrowed to the fast food market. McDonald’s competition would include Burger King, Jack in the box, and Sonic to name a few. They is very little or opportunity for others to enter the market on a larger scale. ___ there is a huge opportunity for a small mom and pop restaurant or food truck to enter the market. McDonalds would move in next door, or just buy the competition out. McDonald main focus is at current competitor’s edging forward and obtaining more market share and customers. To remain competitive in the market McDonalds must keep up with customer demands and societies behavior. As stated in the Huffington Post Jack and the Box has their entire menu available around the clock (Huffington Post, 2013).With increasing demand and to balance the playing field, McDonalds is planning on offering both breakfast and lunch items. McDonalds has also Ventured in to the Coffee market. McDonalds’ is not able to offer what Dunkin Donuts and Starbucks in gourmet Coffees, and lattes along with the current menu. This move has been very profitable for McDonalds.

McDonalds has been involved in a number of horizontal mergers, such as the 2000 McDonalds’ purchased Boston Market that was currently undergoing Chapter 11 Bankruptcy. Then sold the chain in 2007 to Sun Capital in a conglomerate merger (Bloomberg, 2007) McDonalds’ also had a financial stake in several companies such as Chipotle Mexican grill, Donatos Pizza, so it could focus more attention on McDonalds. In the world of acquisitions and mergers, McDonalds was the initial investor in Redbox which was sold in 2009 to Coin Star in another conglomerate merger (Longino, 209). It is in McDonalds’ best interest to stick to what they know which is restaurants. They have the market, years of experience and they know what customers want and are willing to pay.

McDonald’s has established 31,000 stores in 119 countries around the world. McDonalds’ will demand more resources due to there being so many stores in so many places around the world. There is no such thing as one size fits all in the restaurants business. McDonalds has come a long way to develop the menu to fit the countries standard. In India McDonalds has created a popular McSpicy Paneer (Lubin, 2011) in Israel, Egypt they are serving the McArabia. Canadians’ have a Poutine, it is french fries layered with cheese curds and smothered brown gravy. Globalization of an American company comes along with baggage, due to the fact that America is the unhealthiest country on the planet. Farmers working for McDonald’s have worked with Ecologist around the world to correct the problem to make sure that the meat used no longer contains genetically modified grain, creating a healthier product. With everything being about time, and time equaling...
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