McDonald's France Case Analysis
Introduction
McDonald's was founded in the year 1972 in June. The headquarters of McDonald's are located in Guy an court, Yvelines France. The first franchise of the restaurant opened in France in 1972. McDonald's provides the services through franchising. The statistics of the corporation show that McDonald's France has 1485 Franchises countrywide in the year 2020. The most wanted products of the subsidiary are chicken fries, hamburgers, desserts, milkshakes, soft drinks, coffee, and pastries. McDonald's also expand its franchises worldwide to generate huge revenue, especially from Pakistan, India, Canada, the Philippines, Russia, and New Zealand.
Problem Identification
The main problems faced by McDonald's in France are that the brand has a weak system of operations that needs immediate improvement because of that the company also faces regulatory and economic restrictions through which McDonald's needs to design an interactive arrangement of the organization.
Case Analysis
For understanding the situation of McDonald's in France we analyze the company with SWOT, Value chain, Vrio and Pestle Analysis.
SWOT Analysis
Strengths and Weaknesses
The restaurant has a strong portfolio on the national and international levels. The financial position of the company is also strong with strong organizational culture and environment. The employees of the restaurant are fully committed to accomplishing the organizational objective.
The main weakness is the brand has a weak system of operations and the company also faces regulatory and economic restrictions.
Opportunity and Threats
The brand has the opportunity to increase its network and sales by improving its operations. McDonald's can add more products to its product portfolio, especially the veg products which increase its sales in India and Pakistan. The legal and economic factors are the major threats to the company which affect negatively the business of McDonald's.
Vrio Analysis
Valuable and Rarity
McDonald's is the most valuable brand in the food industry and considered as 2nd most profitable franchise in the united states. The company gains a competitive advantage through its milkshakes in every market. McDonald's has a low rarity ratio because most of the restaurants also offer the same line of products in every location.
Imitable and Organized
McDonald's is imitable in all the countries where they offer its products. The restaurant adopts the culture and environment of each country where they operate that’s why McDonald's is imitable. The restaurant is well organized in every franchise people like to come to the restaurant and feel a fresh environment and also consume fresh products.
Value Chain Analysis
Inbound Logistics and Operations
Inbound logistics of McDonald's are strong because the company maintains good relationships with suppliers and the company carefully analyzes the process of raw material to final product form. The restaurant has manufacturing and service operations. The chiefs manufacture the products from raw materials and sales staff provide services to the customers.
Outbound logistics and Sales
The franchises of McDonald's deliver fresh products in their restaurants and also do the home delivery which satisfies more customers. The restaurant increases its sales by offering deals, discounts, and gift cards to the consumers which attract more customers in France.
Services
The customers are more satisfied with the freshness and texture of products. The services in every franchise of McDonald's are also impressive which increases the market share of the restaurant.
Pestle Analysis
Political and Economic Factors
McDonald's has adverse political and economic factors because the brand is operating on a global level and every country has a different economy and political system. The company is already facing economic restrictions.
Social and Technological Factors
McDonald's has favorable social factors because the restaurant considers the social factors of every country where they offer the products. The technology of the McDonald's is average the company must improve its technology by advancing research and development.
Legal and Environmental Factors
McDonald's has some legal issues because of the introduction of new laws and regulations in every country but the company resolves the legal issues. The Environmental factors are favorable for the restaurant because it offers products related to the environment of that location.
Improvement for the McDonald's in France
Enhance Weak System of Operation
The restaurant should improve the weak system of operation by developing updated policies and procedures in the organization. The restaurant must perform the reconciliation on regular basis. For increasing the weak system of operation the restaurant should continuously evaluation and commend the transactions. McDonald's enhances the operation by providing training to the employees and increasing their performance which directly affects the operations of the business. The restaurant must improve the operations because as strong the operations are the company grows rapidly by grabbing the available opportunities in the market.
Resolve the regulatory and economic issues
The regulatory and economical restrictions create barriers for McDonald's to expand the business on a wider range. The regulatory issues also negatively affect the brand image and market value of the restaurant. The economic restrictions are also high because the restaurant has thousands of locations in multiple countries of the world so every country has its economic currency, inflation rate, unemployment rate, and exchange rates. These all macroeconomic factors affect negatively to the McDonald's
Improve to Networked organizational system
McDonald's improves the networked organizational system by following the below strategies.
Properly utilize the human capital
McDonald's must properly use the human capital because in the enhancement of the network the employees are the major factors who increase the growth of the corporation. So the restaurant must put the right people in right place at the right time.
Enhance the quality of products and services
McDonald's enhances the quality for improving the networking of the organization. The innovation in the quality of products and services increases the number of customers which helps the company to increase its network.
Advancement in technology
Technology also plays a major role in the enhancement of the network of the organization. McDonald's also increases its technology to better understand the current trend of the market and improve the network of an organization.....
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