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Current Market Conditions Competitive Analysis

Essay by   •  September 12, 2012  •  Case Study  •  1,043 Words (5 Pages)  •  856 Views

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Current Market Conditions Competitive Analysis

McDonald's is the world's largest chain of hamburger fast food restaurants. It has been in business since 1955 and is still going strong. It is not surprising that McDonald's is number one in the nation. Its success can be contributed to its innovation and quality of products. McDonald's is always finding new and better ways to provide quality food to its consumers at an affordable price. Currently this large corporation is considering expanding its franchise in the Republic of Cuba. A market analysis will be addressed to determine the potential success of developing a McDonald's in the Republic of Cuba.

When analyzing variable cost, McDonald's will need to evaluate factors such as labor, utilities, inventory, and raw materials, to name a few. The number of workers needed to assist in the operation of a McDonald's franchises is dependent on the type of McDonald's restaurant selected. Likewise the utilities, inventory, and raw materials are affected by the type of McDonald's restaurant too. The type of restaurant chosen is largely dependent on location and demand. For example, most McDonald's present both a counter and drive-through service, which offer indoor and outdoor seating too. This is the typical type of McDonald's restaurant that is seen in the United States.

In other countries, "McDrive" is offered near highways. These types of McDonald's restaurants offer neither counter service nor seating. Some locations situated in congested neighborhoods will omit drive-through service and opt for walk-throughs service only. Another option to consider is a "McCafe". This type of restaurant resembles the café-styles of Starbucks.

Some restaurants are found inside gas stations or convenience stores. Others such as "McExpress" are located inside shopping malls. These facilities are compact and have a limited menu selection, thus using less raw materials, inventory, utilities, and number of employees. Another option to consider and will affect costs is a "McStop" this type of McDonald's restaurant seek out truckers and travelers. McStop type restaurants are placed inside truck stops for easy access to customers who are traveling. As reviewed the variable cost are dependent on the fluctuations in the quantity of goods or services produced at the various types of McDonald's restaurants in operation.

McDonalds desire to grow into the best and most productive fast food restaurant in the entire fast food market has made it a force to be reckoned with. McDonald's vision is to expand into the unconquered markets in which they can maximize their profit making potential and overall successfulness in this type of business. Considering that McDonalds is a global fast food chain, with only a handful of countries in which it has no restaurants available to the general populous. These countries are North Korea, Seychelles, Syria, Vatican City, Cambodia, Zimbabwe, Vietnam, Nepal, Kazakhstan, Barbados and Cuba. By looking at these countries the company decided to

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