• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Business memo - Challenges McDonalds faces by establishing franchises abroad

Extracts from this document...

Introduction

TO: Franchisees FROM: Market analyst DATE: November 27, 2012 SUBJECT: Challenges McDonald´s faces by establishing franchises abroad Market research and analysis show the successful franchise adaptation of McDonald´s, a leader in the fast-food market for decades, around the world. Owning a McDonald's franchise can be safer than lesser-known franchises. On the other hand, becoming its franchisee oftentimes ties up the entrepreneur’s hands. What challenges does a franchisee face to successfully establish the business in a foreign market? To help potential franchisees, following is a brief explanation of the benefits as well as the drawbacks of this type of business. First off all, let´s mention the major advantages to buying a franchise: 1. Help with start-up – acquire all the equipment, supplies and instruction or training needed to start the business and running it afterwards from a single source. ...read more.

Middle

2. No Absenteeism – for the sake of its fixed model, the franchisee needs to involved with the day-to-day operations of the restaurants. 3. Entrance costs and on-going costs – obtaining the franchise license demands a significant amount of capital as well as paying a royalty. 4. Pigeonhole – the vision in consumers’ eyes correspond to an obesity epidemic, which portrays McDonaldss in a highly negative light in the media. Taking franchising into consideration from both sides as well as market analysis generally is the best way for new business owners to reduce risk. Buying a McDonald´s franchise may be an easy way to enter the fast-food industry but it is definitely not an easy walk. The advantages and disadvantages of setting up a franchise are not the only important factor. ...read more.

Conclusion

5. Language barriers – even a bad translation into foreign language may depreciate the value of the franchisor image 6. Consider the difference in perception – an example is McDonald´s food in Japan where it is considered a snack because of the impossibility to share with others, as well as mixing bread and meat which is alien to them. Major important difference is lack of rice, seen as a good nutrition. All these problems are ones that the potential franchisee may think about before his decision to enter a foreign market. The excellent orientation on home market, the possibility to modify business plan with necessary changes to incorporate into a new environment is the only feasible way to turn the business into a successful one in a foreign market. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Case Studies and Analysis section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Case Studies and Analysis essays

  1. NETFLIX CUSTOMERS SATISFACTION

    R?ther they m?y buy services th?t provide more satisfaction. F?ctors such ?s the perceived competitiveness of prices ?nd fees (henceforth termed: "price") m?y therefore influence satisfaction while not ?ctu?lly ?ffecting customers' perception of service qu?lity (Cronin & T?ylor, 1992). In spite of this, the price effect on over?ll satisfaction h?s received much less ?ttention th?n other ?ntecedents of customer satisfaction (Voss et ?l., 1998).

  2. What are the micro and macro environmental forces which may pose direct or indirect ...

    They have added several salads and grilled sandwiches because the country is taking more importance in the calories and the healthiness of what they are eating. The second force that may affect McDonald's is Supplier Power. Given their massive size, McDonald's can take advantage of lower prices due to economies of scale.

  1. The main purpose of this research is to know and analyze whether the Olympic ...

    In order to get succeeded with in the companies the brands play a major role in them. Olympics itself refers to a brand. Olympics is the main significant single which is compressed of different types of categories of games with in it.

  2. How Evans Enterprise party and wedding planners could use IT to help manage their ...

    * Talking face to face is another effective way of communication. Body language can be interpreted as well as what is actually being said. This makes it reliable and very effective. It is used in interviews, meetings and conferences. A meeting could be held in any of Elizabeth's workplaces and

  1. Small Business Strategies - identifying the target market, necessary skills, plans for development and ...

    as well as how long it will take to complete the project (timeframe). With secondary research, the business may have to pay for information which is not required. However with primary research, the data collection will be focused on the specific issues decided upon by the business meaning that funds

  2. Disneyland and M&S. I am going to investigate customer service in two separate ...

    and high quality goods including product guarantees o Access to employees if they have a query However, there are various reasons why consumers needs and expectations vary, these reasons include: Family status, a person's situation relating to their family is essential in terms of what they then needs or want from a business.

  1. Business plan. The business that I am going to produce is a personalised logo ...

    to be undertaken and completed within the business, I can refer back to this marketing plan to see which task is needed to be taken aboard next. Once a action has been completed, it can either be removed or ticked off to ensure we know of what stage we are at throughout the businesses life.

  2. The international business environment of Apple Inc

    However in countries such as England there is a limit on how many hours a person is able to work for. The way people work will also have be culturally different. Some countries may force people to work in a very relaxed environment where as others may choose to work in a more pressurised environment.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work