Global Players in International Business

Presented by:-

Sakshi

Muskan

Dimple

Sanjeev

Harpret

Rahul

Gitarattan International Business School, New Delhi

INTRODUCTION Global Players are represented all over the world and are connected in

any market with a very high prestige. Volkswagen, Wal-Mart, Toyota, Shell, Allianz, Samsung, Sony and many

more among themselves to! global players are confined in international industry and must then respond to global competition.

 As the main feature of the global players, the same can efforts on the global control and coordination of all corporate activities, as well as include the operation and edit the relevant markets worldwide.

Lower Cost New Market Cost Effective Better Quality Edge over Domestic Co. Growth

Advantages

A fast food restaurant, also known as a quick service restaurant (QSR) within the industry itself, is a specific type of restaurant characterized both by its fast food cuisine and by minimal table service.

Food served in fast food restaurants typically caters to a "meat-sweet diet" and is offered from a limited menu; is cooked in bulk in advance and kept hot; is finished and packaged to order; and is usually available ready to take away, though seating may be provided.

Fast food restaurants are usually part of a restaurant chain or franchise operation, which provisions standardized ingredients and/or partially prepared foods and supplies to each restaurant through controlled supply channels.

Ex- MCDONALD’S, SUBWAY, BURGER KING, WENDY’S, STARBUCKS

Industry Overview

Case Study:Mc Donalds

► The first McDonald's was built in 1940 by the McDonald brothers (Dick and Mac) .

► Started off as a hot dog stand in CA [1937] the McDonald brothers realized that hamburgers were their most profitable menu item, and changed their business to serve a limited menu.

► Employing “car hops” the McDonald brothers became the first restaurant to offer speedy service to people while they stayed in their cars.

Contd…

► McDonald’s has over 30,000 local restaurants in more than 120 countries. McDonald’s serves nearly 50 million customers each day.

► McDonald’s has its own Hamburger University in Illinois, and the first batch graduated in 1961.

► In 1963, McDonald’s sold its one billionth hamburger.► McDonald’s is listed on the New York, Frankfurt, Munich, Paris and

Tokyo stock exchanges

GLOBAL STRATEGY OF MCDONALD’S

► The concept of “think global, act local "has clearly been adopted by McDonald’s.

► Quality is assured at restaurant and at suppliers end.► McDonald’s believes in localization when it comes to prices. ► The company is strongly committed to staffing locally.► McDonald’s has taken advantage of technology to streamline their

processes and improve efficiency.

SWOT ANALYSIS ON MCDONALDS. Strength

►McDonalds holds a very strong brand name worldwide►They have large partnerships with other companies that provides them with their desired products, this increases the goodwill of the company►Socially responsible firms earn a good name in the market due to their projects they do to help people, McDonalds is one the most reputed firms who are socially responsible►It is said that McDonalds was the first food outlet to provide its customers with nutritional facts►Loyal employees and management and customers is their biggest strength►McDonalds makes sure that cultural and regional barriers are kept in mind while providing food to different countries►Clean environment and play areas for children where they can enjoy their time

Weakness

►The weakness that hits the list is the employee turnover rate. Every year many of their employees are fired out of the restaurant►McDonalds mostly advertises products and food items that targets children. You will notice that bill boards always display the advertisements of Happy Meal and any other deal that is ordered for the kids mainly►Health conscious people seldom complain that they do not provide us with the organic and healthy food. This becomes their weakness when they get in the complaints►They also face quality issue at times. This affects the business as they are running the outlet worldwide, if one franchise gets affected others also get a bad name

Opportunities

►It can open up online services for their customers so that they can easily order their desired meals sitting at home►Discounts given on every food item may help them gain more customers►They can go for a joint venture with the retailers they work with►They can introduce healthy hamburgers and healthy drinks for the people who are health conscious►In order to be environment friendly, they can use packing material which can be recycled later or material that does not create pollution►As McDonalds is a socially responsible firm, they can provide more benefits to the people around►It won’t be a bad idea if they introduce food items specially for breakfast

Threats

►Emerging competition of similar outlets is becoming a problem for McDonalds►Health issue also becomes a problem when it comes to food►As it is a multinational food outlet, fluctuations in the currency of other countries becomes a problem for such companies►Recession in any country would definitely affect the whole outlet world wide►These multinational companies take special care of the culture and traditions of the country they plan to start the business►People facing heart problems and obesity accuse McDonalds for not providing them with the healthy food►They have a threat of local food outlets in different countries►McDonalds is operating in a fully fledged economy where competition is increasing day by day therefore they should work effectively to overcome their drawbacks because of the recession.

CASE STUDY: SUBWAY

Introduction Subway is an American restaurant franchise that primarily sells 

submarine sandwiches (subs) and salads. Subway was founded as Doctor's Associates in 1965 by Fred DeLuca

 and Peter Buck in Bridgeport, Connecticut. Subway is one of the fastest growing franchises in the world with

37,881 restaurants in 98 countries and territories as of November 7, 2012.

 It is the largest single-brand restaurant chain globally and is the second largest restaurant operator globally after Yum! Brands (over 37,000 locations).

The first Subway outside of North America opened in Bahrain, in December 1984.

In 1995, SUBWAY chain begins first sponsorship with an Indy race car. SUBWAY restaurants open in China, Costa Rica, Ecuador, Egypt, El Salvador, Honduras, Ireland, Jamaica, New Zealand, Spain, Switzerland and Taiwan. The SUBWAY brand is featured in scenes in the movie “Ace Ventura--When Nature Calls” and on TV in the animated series, “The Simpsons.”

In addition to established markets, Subway is expanding into developing and LDC nations. In 2000, Subway opened its first restaurant in Croatia. 

First Subway restaurant in india opened in 2001 at saket, New Delhi.

Global Expansion

Subway has expanded everywhere one can think of with outlets in hospitals, bus terminals, colleges, stores and railway stations etcetera.

Product and Menu customization.

In order to fetch fresh ingredients for the menu, Subway has allowed it’s franchisees to opt for their own suppliers while maintaining their tagline, ‘Eat Fresh’.

The total franchise fee is $ 10,000 to $ 15,000, which is very less.

Global Strategy

SWOT AnalysisStrengths

Customized menu per country Low franchise fee Fresh healthy fast food 37,881 Restaurants worldwide University of Subway training worldwide Partnership with American Heart Association Eco Store and environment commitment

Weaknesses

Lack of consistency when sourcing materials Crowded marketplace with lots of competition from other

franchises Low cost of entry may cause multiple franchisees in a

single market

Opportunities New Eco stores may attract new customers Partnership with Michael Phelps will attract new

customers New Menu items to attract additional market

segments Global expansion opportunities especially in China Sponsorship of the Heart Walk

Threats

Global economic crisis Food safety concerns Global competition from other franchises

Case Study: KFC

KFC (Kentucky Fried Chicken) is the world's largest chain of fried chicken fast food restaurants, headquartered in Louisville, Kentucky in the United States.

It was founded by Colonel Harland Sanders.

Introduction

GLOBAL STRATEGIES• KFC was first attracted to China by the size of the country’s market potential: 1.3 billion people, 20% of the world’s total.•KFC’s decision to locate the first restaurant in Beijing – China’s political center – was a wise choice•KFC paid special attention to the recruitment, training, and development of its management talents, especially restaurant management talents.• Localization strategy- local leadership team made up of US-educated ethnic Chinese drawn from Taiwan and other parts of Asia.

► When KFC first went into the Japanese market in the early 1970's, the company chose to form a joint venture with a large scale poultry producer JV initiator Mitsubishi.

► Changed the shape and size of its product as Japanese preferred bite-sized food.

► Location of outlets moved to crowded cities and away from independent sites.

► KFC invests and expands to Mexico, making it the strongest market in Latin America.

► In Mexico KFC emphasized in wholly owned subsidiary entry mode► It followed international strategy, i.e to create differentiated products with help of

R &D and then transferring them to Mexico.► KFC operates 128 corporate owned restaurants and 29 franchises in Mexico.

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