Contemporary Development in Business and Management

Contemporary Development in Business and Management

McDonald produces the fast foods to customers. McDonald structure and culture mean human relations policies and procedures, the skills and experience of the staffs. The operation of McDonald is specific to suppliers, competitors, financial bankers, customers, parent company and so on. McDonald more concern on given a fast foods to customers, which the customers rushing of times. However, the McDonald is acceptable by society especially nowadays most of the peoples busy of their own job. McDonald reflects to the current situation to gain the market share from market. Suppliers is MacFood Services Sdn Bhd, McDonald's Malaysia's key supplier for chicken, beef and fish patties. Difficulty of new entrants, due the economics of scare (need greater cost of production, because operate in small scale), product differentiation (No need fund stay in market and develop their brand), Capital requirement (Huge cost to setup), Switching costs (customer who switch to a new entrant will often have extra costs, these cost will affect the prices that the new entrant can charge), Access to distribution channels (All controlled by major players, like KFC, Pizza Hut and etc. Cost disadvantages independent of scale (new entrants have high initial costs) and government policy (To entrant to fast foods industry is not easy in Malaysia, because they need to apply licenses i.e. Halal license). Substitutes always a risk that the business’s product will replace by a substitute, Product for product (KFC or Pizza Hut replaces McDonald), Substitution of need (Nowadays customers can cook themselves easily by using Maggie Mee. Generic substitution (Nowadays many people more healthy concern, so their might switch the fast foods to healthy foods). Competitive rivalry, the competitors are roughly equal size (KFC, Burger King and Pizza Hut), fixed costs is high, product and exit from industry differentiation is difficult and entrants have said that they will achieve a strategic stake in the market....

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