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Mcdonalds And Starbucks Case Study

1629 words - 7 pages

Task One
• Give a brief introduction of McDonalds - Not more than 5 lines.
o Globalization of McDonalds – Discuss in detail
• Give a brief introduction of Starbucks - Not more than 5 lines.
o Globalization of Starbucks – Discuss in detail

Task Two
Compare the globalization approaches of Starbucks & McDonalds The parameters to be used for this comparison are:
• Cultural Environment
• Economic Environment
• Political & Legal Environment
• Any other parameters
Task Three
Situational Analysis
McDonald's is planning to capitalize on the public's willingness to pay $4 for a cup of coffee by hiring baristas and dropping espresso machines in 14,000 of their fast-food outlets. Meanwhile, Starbucks, with business lagging, is fighting back with an "if you can't beat 'em, join 'em" strategy, by offering heated breakfast sandwiches and adding drive-thru windows to some of their locations.
These two chains as polar opposites — one designed as a sophisticated faux living room where customers could get a decent coffee drink and read their newspapers; the other, a riot of plastic-and-vinyl booths and bright fluorescent lighting where meals are counted in billions served. Is it really possible for these two worlds to collide?
Assume you are a business manager at either one brand (either McDonalds OR Starbucks). What would be your strategy towards this situation.
“Mention the brand that you are choosing for task three in the title of the task”

(I) Task One : Brief note on McDonalds
McDonalds is one of the world’s leading fast food franchisee. They mainly concentrate on burgers with occasional additions with to suit the host country. They have designed meals targeted at adults to toddlers so as to reach wider range of audience. They operate in more then 119 countries and serve around 52 million customers per day which makes it a global brand.
Globalization of McDonalds
Globalization is the interlocking of different countries in the world in a political, economic, social and technological sense. People around the globe are more connected to each other than ever before. Information and money is exchanged at an alarming rate. Goods and services produced in one part of the world are increasingly available in all parts of the world. International travel is more common compared to earlier times. International communication is commonplace. This phenomenon has been titled "globalization."

McDonalds Restaurants: Number by Region
1991 & 1996
Table

Graph by Benjamin Holt, August 1999
Source: Human Development Report 1998 (www. global policy.org)

The graph gives an example of how Mcdonalds have opened branches in various locations in such a short span of five years.

Mcdonalds is a brand in itself and there hardly will be anyone who is not aware of their existence. The burger is an American food but Mcdonalds have gone to prove that it is accepted by 52 million people and is still going strong. For instance they incorporate the...

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