Wednesday, February 1, 2012

HW #3

Nick Van Winter
McDonalds offers many opportunities and challenges in their multi-million dollar franchise.  They offer positions for growth and expansion for all their employees as well as constantly looking to start new jobs by opening new stores all over.  They are opening stores in China and training the Chinese people to use their drive-thru’s so that they can open even more stores and so that they can stay ahead of the growth curve where many of the people in China are now driving cars.  Five years ago many of the people of China were using bicycles because they didn’t have the money for cars but because of a recent rise in wealth in China, more people have bought cars and the streets are more clogged than ever. 
                Key challenges that McDonald’s has to encounter are things such as the American Health Board, who strongly oppose a lot of what McDonald’s does because of how unhealthy their food is.  Another is the movement to try to make them post the nutritional facts about their food on the menu.  There is no doubt that if people saw how unhealthy things were right next to where they were ordering it than there is no way that they would accept it and keep ordering the same thing which would lead to a major decrease in sales.  Another major challenge is the Asian market as a whole.  It is common knowledge that the Asian market likes different things than the American market and seeing as McDonald’s is an American company there is a difference in the taste of the food and the taste the markets like.  This is why the chefs at McDonalds are working on developing foods that will be accepted in the Asian market and which will be normal for their tastes. 
                McDonalds has thousands of opportunities in front of them.  These are things such as opening new stores, making new foods, and expanding their business.  Sooner or later McDonalds is going to expand to include more and more as to increase their profits.  I am sure they will move into party catering and delivery and different foods which would not be typically seen on a normal McDonalds menu.

1 comment:

  1. I agree with what you have for the challenges that they face, or will be facing. Even though they already have little nutritional information on the packaging of their products, you actually would have to purchase it to know. It is not that easy to find out what is in their products. I agree that if people actually saw what went into the food they are eating or how little nutrion is in it, then things would drastically change for McDonald's sales.

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