Daily Archives: ژانویه 21, 2018

۱۱:۰۹ ب.ظ۱ بهمن ۹۶

Case research of mcdonalds fast food restaurant

McDonalds is worlds leading fast food chain with twelve-monthly revenues around $23 million. It offers a lot more than 1.6 million employees around the globe with its divisions all over the world in beverages, snacks, and restaurants. McDonalds’s accomplishment is due to superior products, high standards of performance, distinct competitive strategies and the substantial integrity of our persons. McDonalds continues to be continuing to grow and introduce brand-new alternative beverages on the market. About 85% of McDonald’s restaurant businesses worldwide are possessed and managed by franchisees. All franchisees will be independent, full-time operators.

Fast food was not a completely new thought in china with a plenty of restaurants selling typical, light and simple Chinese food and beverages. When the first of all McDonalds franchise in China was opened by Daniel Ng in 1975, many local competitors did not believe McDonald’s would achieve success. They rely on the theory that Hamburgers using beef patties and bread would not have the ability to flourish in a country dominated testmyprep by rice, seafood, noodles and pork. Since that time McDonalds have grown in China that as of June 1999, there were already 235 McDonalds restaurant in China. McDonalds include so many penetrated China that also in the new conflict when NATO unintentionally bomb the Chinese embassy in Belgrade during the War in Kosovo , when it became the primary reach list for boycott of American foodstuff and beverages , that the McDonalds restaurant remained busy with local Chinese customers Mac pc Donald became so preferred in china that by 2001 Chinese persons possessed 60% of the possessions of the Mc Donald’s stores, by 2002 McDonald’s opened 130 outlets, absolutely 560 outlets in 94 metropolitan areas in 19 provinces and at present(2010) there are 1194 McDonald’s eating places in China, 200 and more are planned for another years.

Critically analyze the way the basic environmental forces may possess influenced mc Donald’s development in china

McDonald’s initial opened its functions in China in 1990.In 2006; McDonald’s signed an agreement with the Chinese status oil company, Sinopec in which it granted Sinopec the right to open McDonald’s stores at any of its different and existing gas stations. This in nutshell was Mc Donald’s key growth strategy in China.

(Watson/mighty students 2010)

When McDonald’s began its first retailer in 1990, its ultimate rival KFC was kilometers ahead of Mac pc Donald having opened more than 1000 stores in china. At present there are about 2000 KFC shops in china which is about double than mc Donald. McDonald’s has a large amount of competition in China, not merely from U.S. brands like KFC but also small manufacturer like Mom and Pop.

Jobber, (2006)

Mac Donald’s expansion in china was damaged by selection of factors which can be elaborated at length by PEST evaluation and analyzing the porters 5 forces approach. PEST analysis helps evaluate the political, enviormental, public and technological factors that may impact an organisation when it chooses to enter its organization operations into new marketplaces or new countries.

Kotler (1998) mentioned that PEST examination is a strategic program to analyse today’s market state of a business, understanding market expansion or decline, potential and way for functions. According to porter (1985) PEST ensures that company’s performance can be aligned positively with the powerful forces of change that are affecting business environment.

Jobber, (2006),

Main Areas of PEST Analysis

(Google image 2010)


Political factor plays a significant role in any organisations business expansion in new markets. The political state of the country, region or the market has direct effect on the business’s outcome there. When Mac Donald’s started its procedures in china china’s authorities wanted establish its fast food market and felt that western firms like McDonald’s could spoil its strategies. In 1990, the access of McDonald’s into china resembled the same bitter knowledge it experienced in Russia but later it moved on very easily in china, since it has moulded itselff thus nicely with Chinese way of life that Macdonald’s opened 96 restaurants in China, totaling 430 restaurants entirely in the by first of all half a year of 2001.

(Scribd.com 2010)


According to Thompson (2002) financial conditions impinge how easy or difficult it is to be successful and profitable anytime because they impact both capital availability and cost, and demand. McDonald’s as a global junk food chain had a great effect on the Chinese market. McDonald’s, according to official statistics have nearly the 32,000 restaurants all over the world in which 75% is managed by franchising, McDonald’s own about 1200 restaurants in Chinese market out of which just 6 is managed by franchising. McDonald’s main aim at present is to build up its franchises in china to determine their business all over the country.

(Pearce and Robinson 2005)


The public environment demonstrates demand and preferences, which changes with fashion and disposable cash flow which can provide both opportunities and threats for particular companies

(Thompson, 2002)

Many social factors affected mc Donald’s procedures in china. for e.g. in April 2007 a Chinese owned newspaper uncovered that mc Donald’s own underpaid their employees in Guangzhou, Once again four months afterwards in the same 12 months a state backed all china federation of trade unions known as mc Donald’s to let its employees unionise and modify the pay. Many public critics also remarked that mc Donald’s have not applied the same health insurance and environmental requirements in china since it have done in other places.


At present time Technology plays a major role in almost every organisation to gain sustainable competitive advantages from its competition. While establishing its Chinese procedures MacDonald’s partnered with preferred Chinese online shopping webpage taobao.

Com in Sep 2007 to provide online shoppers discount codes and other promotional items to promote its manufacturer in china. To gain more competitive advantage over its primary rival KFC it also started home delivery program from a few of its outlets.

(Capron and Glazer, 1987)

(Johnson and Scholes, 1993; Jan, 2002)

Porter’s 5 Forces

Porter’s 5 forces examination deals with the factors outside a business which influences the nature of the competition within it. The competitive forces style proposed by Porter recognized five forces that includes a direct impact on an organization’s behaviour in a competitive market.

Main Areas of Porter’s Five Forces Analysis

• The rivalry between existing sellers in the market.

• The energy exerted by the clients on the market.

• The impact of the suppliers on the retailers.

• The potential threat of new sellers entering the market.

• The threat of substitute products becoming available in the market.

(Google image 2010)

Force 1: The Degree of Rivalry

The strength of rivalry between your rivals helps determine the extent to that your value created by an industry will become dissipated through head-to-head competition. McDonald’s has a lot of competition in China, good examples can include Kentucky Fried Chicken (KFC) and Mother and Pop foodstuff stands etc.

Force 2: The Risk of Entry

The risk of new entrants is often based on the marketplace entry barriers. Many latest companies tried to enter into the Chinese market like burger king, a solid contender of MacDonald’s, nonetheless it lagged behind Macintosh Donald due to its brand awareness and outlet numbers.

Force 3: The Risk of Substitutes

The risk of substitution be based upon the switching costs we.e, the expenses in the areas such as for example retraining, retooling and redesigning which takes place whenever a customer switches to a different type of service or product. Many restaurant chains like subway, rainforest cafe etc entered the Chinese industry and won favour of several Chinese people but due to poor brand awareness they haven’t been able to establish themselves in challenging Chinese market.

Jobber, (2006)

Force 4: Buyer Power

Buyer power is one of the two horizontal forces that influence the appropriation of the worthiness created by a business. The size and the focus of customers are the two most significant determinants

of buyer ability. Growing money in urban china offers pushed customers to put higher expectations on eating places various aspects like design of their outlets, the innovativeness of their menus and dietary quality of their food i.e, the actions well included in MacDonald’ in china.

Force 5: Supplier Power

Supplier vitality is a mirror picture of the buyer power. By utilizing its huge capital and technological knowhow MacDonald has developed its own internals source network in china incorporating farms to market both domestic products and export markets.

(Home.comcast.net 2010)

Based on the external environmental analysis what are the possibilities and threats facing MacDonald’s operations in china?

Globalization is changing the face of the business world at present time. Companies operate in a very difficult environment and deal with numerous challenges when competing in global markets. More recently managing global businesses requires knowledge about various tactics and intercultural skills and that expand beyond traditional management principles and approaches. SWOT examination is a strategic arranging tool used to analyze the strengths, weaknesses, Chances and threats of an organisation. The main element to a SWOT research is identifying the inner and external elements which are important to achieve the goals of the organization. The internal factors include strengths and weaknesses of the business and the external factors are the options and threats. SWOT evaluation is popular amonst the managers because of its simplicity as a preparation tool and its own flexibility to adapt in any situation or task. The strengths and weaknesses of a enterprise rely upon its internal components like resources, operational programs, and departments like sales, marketing and distribution. An opportunity is a attractive condition which may be exploited to reinforce a strategic position, such as increasing demand for a fresh product. A threat is a state which produces uncertainties which destruction an organisation’s performance and market share.

(International strategic management 2010)

(Marketing teacher. 2010)

(ukessays.com 2010)


McDonalds is world’s greatest fast food chain with an increase of than 31,000 eating places serving burgers and fries in almost 120 countries but it was still short in terms of number of outlets in china from its closest rival kfc.

Good innovation and product development. It constantly innovates to retain clients available. While developing its organization in china it emphasised considerably more on Chinese lifestyle and the Chinese preferences for food other than sticking to the traditional western menu.

More consumers’ choice, acceptable value and great service provided to the customers.

Loyal staff and solid management team

Open door plan to the press

Strong internal supply chain- Mac Donald’s is rolling out its own supply chain network in china including local farmers by forging joint ventures ties with strong Chinese cooperation’s and developing local farms in china.

Rigorous food safety standards

MacDonald’s works hard to make sure its high food safety standards are achieved through rigorous training, food, safety and quality and menu development in each cafe in china

Affordable prices and high quality products

McDonalds Annual Report (2008)


Difficult to get and retain employees

MD has already established hostile relationships with staff rights unions and although it has been controlled, the company does find it hard to find and retain great employees. According to a report by a Chinese possessed newspaper in April 2007 mc Donald’s own underpaid their www.testmyprep.com workers in Guangzhou which caused many problems between the staff and the management team with in the organisation.

Promote unhealthy food

Many social critics remarked that mc Donald’s have not really applied the same health insurance and environmental specifications in china since it have done in other places.


Joint ventures we.e, with powerfull Chinese cooperation.

Strengthen its benefit proposition and offering, to inspire customers who visit espresso shops into McDonalds.

Continued focus on corporate interpersonal responsibility, reducing the impact on the environment and community linkages.

Attractive & flexible employment

Positive environmental commitments

MD includes environmental commitments in its daily procedures, from keeping daily drive-thru cleanings to offering sustainable fish options to using recycled packaging.

McDonalds Annual Report (2008)


Competitive pressures on the high street by fresh entrants like kfc(biggest competitor of Macintosh Donald’s in china,subway,malan noodles etc.

Unhealthy foods for children

Mac Donald’s hadn’t applied the same health insurance and environmental requirements in china like it did in USA. For example its happy meals directed at children offered better for you substitutes in USA not in china.

Health considerations surrounding Beef, Poultry & Fish

Labor exploitation in China

Chinese manufacturers exploit labor in their production of ‘Happy Meal’ toys. Mac Donald’s might use its purchasing capacity to its gain to demand that suppliers provide playthings without exploiting labor.

Local fast food restaurants

local restaurants like daniang dumplings,yonghe king,kungfu catering has given great competition to Macintosh Donald in Chinese markets.

In summary, a SWOT analysis offers a great framework for appraising an organization’s internal and external placement in its environment and their potential impact on efficiency. The McDonald’s SWOT evaluation in china highlighted many threats and weaknesses and its strengths highlighted its strong purchasing power that could potentially be utilized to demand socially liable production from its Chinese makers and meat suppliers. In addition, it showed how a even more proactive and longer-term method of its strategies might help it to anticipate changing consumer tastes and demands.

Hoovers (2008)

McDonalds Annual Report (2008)

What are the strategic groupings in the fast food industry in china? Where strategic group does Mac Donald’s china compete most?

The fast-food market of the community worth’s more than a billion with multiple and various players. Almost all of the strongest brands are American which by immediate investments, joint ventures and by franchising have distributed their outlets around the world. The most demanding marketplace in the world at the moment can be that of china due to its emerging economy. Many junk food chains like kfc, wendys, pizza hut have opened their outlets in china .McDonald’s, which leads the industry in product sales, profitability, number of retail stores and overall brand recognition across the world also has several outlets in china but continues to be lagging behind from its tuff competitor in Chinese market.KFC has almost 2,000 stores, double that of McDonald’s. in china.

The fast-food industry in china comprises national chain brands because of which there are just a couple of strategic groups linked to the fast-food market. The important national chain makes in china will be McDonald’s, kfc, and daniang dumplings. These organizations main strategy is to supply a product to the customer that is predicated on low-price ease. Their strategic group is usually connected with many geographic spots and good deal and quality. In competition with these large multinational organizations are local fast-food eating places in china like yonghe king,kungfu providing etcwhich focus on providing their buyers with a quick, cheap option to the national brands. These lenders offer a low price and low quality item in few localities. etc.

Employee creation became a core subject during Mac Donald’s expansion in china as Functioning McDonald’s in Nebraska is certainly entirely different than working one in the center of Guangzhou or Shenzen. McDonald’s saw their position upon getting into China as a catalyst to obtain the business started, then simply nurturing local talent to take over the long-term leadership roles

Introduction of the drive-through.- In america drive-through is definitely a valid and servable choice but this idea when were only available in china was new and novel until just lately in 2005. Before, the streets were filled with bikes. But with China’s high and rapid monetary growth within recent years, bikes progressed into motorcycles which evolved into cars. At present with a partnership with Chinese condition oil company Sinopec, McDonald’s has the to open McDonald’s retailer at any of Sinopec’s innovative and existing gasoline stations.

(Metal production group 2010)


McDonalds has seen various changes during its span of business expansion around the world. Despite the downturn the business has observed in china its financial situation is that the business is gradually climbing out of a minimal period and producing a turnaround.

ارسال به:
  • Facebook
  • Google Bookmarks
  • Azadegi
  • Balatarin
  • Donbaleh
  • FriendFeed
  • RSS
  • Twitter
۱۱:۳۳ ق.ظ۱ بهمن ۹۶

Effective Next-generation WAN Architecture

Effective Next-generation WAN Architecture

WAN Architecture

Get robust, scalable, and easy-to-use management tools that may take care of the complexity of your multiservice and packet tone of voice network. WAN provides comprehensive, reliable, and scalable element management capabilities to assist you quickly deploy and manage products and services. The high-performance carrier-class aspect and network management product is deployed worldwide in some of the largest service agency networks. It can function as a standalone program or can be integrated as an component using its northbound interfaces for remarkably efficient flow-through operations

Enhanced operator workflow and usability simplify configuration, fault monitoring, and troubleshooting operations.

The enterprise organization is changing as different types of payroll devices.. As the amount of branches continues to increase, the reliable and secure delivery of these evolving companies demands a network that can similarly evolve to meet up these demands and enable business success.

IT professionals require bigger network overall performance, scalability, availability, security, and service capabilities. The Branch-WAN payroll system architecture is developed to handle these key areas of customer concerns. To meet up these requirements, the Branch-WAN payroll program architecture features scalable and resilient network infrastructure, integrated security, wireless, and payroll system intelligence to supply seamless service capacities that include Unified Conversation, media collaboration, and info/Web 2.0.


This is dedicated to delivering solutions that meet and exceed customers’ business and technology requirements by integrating ideal technologies, services, and systems. The WAN Payroll system architecture is component of a comprehensive approach to providing an end-to-end business network architecture. This model is known as Places in the Network architecture.

The architecture addresses the differing requirements for systems style and deployment in the three principal network areas: the campus, the info center, Internet advantage, and the WAN. Check out Figure 1

Figure 1: Architecture


When discussing an enterprise network, it is necessary to consider that a lot of networks are built from a discreet set of interconnected, architectural elements-each of which has its requirements. A branch workplace, for example, may not include the same scalability requirements as a info center, but includes a greater dependence on reduced form-factor equipment with high-value integrated services.

The regular case study analysis paper corporate campus network presents users high rate and protect network connectivity, Unified Communication services, cellular services, and access to corporate payroll systems and databases. A well-engineered network must deliver workers at branch sites the same network providers as campus workers, to maximize productivity and ensure business objectives are met. The Branch-WAN payroll system architecture provides an end-to- end system design and style that delivers a adaptable, scalable, and safe and sound network that facilitates advanced network solutions for branch workers in offices.

Figure 2: WAN Payroll system architecture (Frame function)


The WAN payroll program architecture displayed in Figure 2 has the following layers:

http://www.cisco.com/en/US/i/templates/blank.gifNetwork Infrastructure-The foundation that delivers routing, switching, quality-of-assistance (QoS), substantial availability, and different functionalities to make certain that the network is normally scalable, flexible, and resilient.

http://www.cisco.com/en/US/i/templates/blank.gifIntegrated Security-This layer extends the organization security insurance policy to the branch, offering network infrastructure protection, protected conversation, threat mitigation, and network monitoring across both the Branch and WAN PINs.

http://www.cisco.com/en/US/i/templates/blank.gifWireless-this layer provides end user network connectivity anywhere within the enterprise, giving employees greater flexibility, and increased productivity.

http://www.cisco.com/en/US/i/templates/blank.gifPayroll system Intelligence-this layer provides different payroll system optimization techniques employing optimization (i.e., TCP flow optimization, info redundancy elimination) and control for payroll system classification and prioritization employing QoS. This optimizes utilization of the WAN bandwidth and, enables branch users to gain access to the same payroll systems as campus users, with identical user experience.

http://www.cisco.com/en/US/i/templates/blank.gifManagement-this layer supplies the ability to easily provision and monitor the network.

With these layers, it is imperative that unified communication (i.e., Unified Conversation), Media Collaboration (i.e., Tele presence, IP Video tutorial Surveillance, Desktop Video, and Digital Media Devices), and Data Web 2 2.0 (i.e., collaboration payroll devices) work seamlessly across the Branch-WAN solution.

Technologies Considered

There are number of WAN systems like indicate point interconnection, circuit switching and packet switching. The WAN conversation which is definitely carried over a leased range is called indicate point connection. In a point to stage network the message from the customers end is definitely traveled to the remote customer via an ISP. Circuit switching may be the data communication which can be stared when there is need to communicate in fact it is terminated afterwards. It is like a telephone call. When the two users arte linked and identified, the data is transferred put simply voice can be transferred. When the transmission of the info is complete the decision is disconnected again. Packet switching data network is definitely a WAN technology in which the network of the user is set up in the carrier’s system. The examples of packet switching network include asynchronous transfer method (ATM), switched multi megabyte data services (SMDS) and frame relay.


The reason for WAN optimization is to eliminate the flaws in the packet info transfer in shared WAN devices. There are many techniques of optimizing the WAN technology. These optimization techniques consist of duplication, compression, cashing, protocol spoofing, traffic shaping, equalizing, connection limits and simple rate limitations. The process of duplication sends a reference of the actual data, this can help in protecting against from data redundancy. In order to present data patterns within an efficient manner compression can be used. The process of caching decreases the bandwidth up to 30%. The multiple requests are tied in one bundle employing protocol spoofing. Traffic shaping controls the amount of data handling and in addition monitors and guides the info traffic. When the info is sent based on the priority of the info usage it is known as equalizing. Connection limit averts from the gain access to grid locks in gain access to points and routers because of the lack of assistance or peer to peer connection. Simple rate limits the users from getting more than the data which includes been fixed for his or her use. The purport of WAN optimization is definitely to overcome the down sides such as expensive bandwidth and to decrease the user’s experience time. The scalability of WAN is certainly currently an important consideration and therefore WAN optimization is employed to target such issues as well.

The typical small branch design includes a 1.5 Mbps Ethernet non-public WAN connection. The router terminates the VPN and routing from the central internet site and implements QoS plan. The router also hosts the following integrated services:

http://www.cisco.com/en/US/i/templates/blank.gifSecurity (Firewall, IPS)

http://www.cisco.com/en/US/i/templates/blank.gifUnified Communications (SRST, FXO / FXS ports)

http://www.cisco.com/en/US/i/templates/blank.gifPayroll system intelligence

The branch also includes a Layer-2 gain access to switch with the following key features:

http://www.cisco.com/en/US/i/templates/blank.gifPower-over-Ethernet (PoE)

http://www.cisco.com/en/US/i/templates/blank.gifDHCP snooping

http://www.cisco.com/en/US/i/templates/blank.gifSpanning tree

http://www.cisco.com/en/US/i/templates/blank.gifClass-of-Assistance (CoS) on access ports


http://www.cisco.com/en/US/i/templates/blank.gifPort security

http://www.cisco.com/en/US/i/templates/blank.gifDynamic Address Repayroll program architecture Protocol (ARP) Inspection

Wireless LAN could be implemented with a router module or standalone controller/switch.

New Issues

  • The key to an efficient next-generation WAN architecture? Meet technologies and solutions to interconnection requirements. Herewith a blueprint:
  • Data center-to-data center connection: Data center interconnectivity requires high-capacity, low latency links. Although multiprotocol label-switching (MPLS) can do just fine, it’s often a pricey option. Telecom architects are increasingly turning to solutions such as for example carrier Ethernet (either point-to-point or virtual individual LAN program, VPLS), or dark fibers or wavelength solutions. Seventy-one percent of agencies will get deploying some form of carrier Ethernet by the definition paper finish of 2010, typically for data center-to-data center connectivity.
  • Why? Three reasons: Primary is cost. On a per-megabit-per-second basis, carrier Ethernet can work 25% to 50% lower than other technologies. Second is definitely bandwidth: with Carrier Ethernet, users will be able to procure up to 10Gbps of bandwidth (the equivalent of 2.5 OC-768 circuits). Subsequently, as bandwidth requirements rise, carrier Ethernet becomes more desirable. Finally, there’s the ease of deployment and control. Users article that carrier Ethernet is easy to set up, and performs reliably. “Right off the bat, it worked like a dream,” says the CIO of a midsized professional providers firm.
  • Data center-to-branch, and branch-to-branch, connectivity: Most organizations (80%) own deployed MPLS, and intend to continue applying it for site-to-site connection (at least for midsized-to-large sites). Some businesses – mostly leading-edge agencies – are also searching at rolling out carrier Ethernet for the “core” WAN. The principal problem? Availability. Carrier Ethernet isn’t as widely-obtainable as MPLS.
  • Remote-blog and micro branch connection: For smaller sized sites, firms are exploring a range of connectivity options. An Internet VPN is one strategy (and one that’s more and more common). A more ground breaking approach is to deploy 4G wireless technologies, either immediate to the router or even to every individual employee. Again, the task here’s availability: Most carriers are just beginning to roll out broadband cellular (in the U.S. at least). Another issue is capacity: Carriers haven’t designed their networks for use as wired-WAN replacements.





ارسال به:
  • Facebook
  • Google Bookmarks
  • Azadegi
  • Balatarin
  • Donbaleh
  • FriendFeed
  • RSS
  • Twitter
My Great Web page