CUEGIS EXAMPLES MCD STARBUCKS
CUEGIS EXAMPLES MCD STARBUCKS
CUEGIS EXAMPLES MCD STARBUCKS
McDonalds
Change
McDonalds regularly changes its strategy to keep up with the market demand and also to
remain competitive in this large market. Over the last year, it has made many changes, for
example, making major changes to its menu. Adding and removing various dishes all around
the world. They also plan to add more dishes for breakfast and begin serving ‘healthy’ breakfast,
every day of the month!
Culture
McDonalds has changed their company a lot according to the culture here in India. Before they
decided to enter the market in India, they had decided to omit beef and pork from the menu to
aid in preventing the Indian citizens from being offended. research shows that in 2003, of 100
meals that people ate in a month, only three were eaten out. They introduced a 20 rupees (20p)
burger called Aloo Tikki Burger, a burger with a cutlet made of mashed potatoes, peas and
flavoured with Indian spices. "It's something you would find on Indian streets; it was essentially
the McDonald's version of street food. The price and the taste together, the value we
introduced, was a hit. It revolutionised the industry in India," he says. Now eating out has gone
up to 9-10 times per 100 meals and McDonald's in India has more than 320 million customers a
year. The entire menu has been customised after extensive market research. Now over 70% of
the menu has been changed to vegetarian to cater to customers. Even competitors such as
burger king and subway have followed by dropping beef and pork. They have greatly changed
the way they plan, make decisions and implement strategies because of the country they are
entering.
Ethics
In ethics, CSR comes into play, which every business must do as part of its social responsibility.
In India specifically, to remain ethical, McDonalds has begun investing in a eye care hospital, to
create an image that is socially responsible, thus making it stand out from its competitors.
However there are ethical issues with McDonalds as well. People have been fighting for there
working rights due to cases such as wage theft, poor management and bad working conditions.
Ethical issues with the food also comes in. There have been cases where McDonalds have
given the cows steroids to make more beef. All of these worsen the image of McDonalds.
Globalisation
McDonalds is a prime example of globalisation. Originating in USA, and slowly expanding into
markets and regions where the concept of fast food was not yet discovered. It targeted the
middle class segment since it saw a niche, and kept the same interior design, service, and
quality of food throughout the world, generating its amazing band image. These things allowed
seamless globalisation to take place! Making it one of the largest MNC running today.
Innovation
Innovation is key to remaining competitive. Nearly all the dishes in the menu of McDonalds have
been innovated and designed completely by them! Many trends have begun just by McDonalds.
These trends aid in creating the brand image of McDonalds, which highly compliment the sales.
Strategy
The company deals with 3 strategic issues.
1. How to deal with the growing competition
2. How to deal with financial issues such as high franchisee fees in contrast with geographical
expansion goals
3. How to deal with the worldwide economic crisis
They deal with competition by using aggressive marketing strategies. You will never go a day
without noticing a sign that leads you to McDonalds or viewing an ad about it.
Financial issues are dealt with the spreading of risk through globalisation. There are so many
franchises that if one goes into loss, there are hundreds of others ready to cover up the loss and
make a remarkable profit.
The worldwide economic crisis is something that affects every business, therefore it is not much
of a problem for McDonalds as it is already established. It can actually prove to be
advantageous as competition is killed off and it is very difficult for new competition to arise. As
this affects every business, even the competitors deal with the same struggle, evening out the
‘battlefield’
Starbucks
Change
Due to the continuous changing external and internal factors, change should be managed within
businesses if they are to move forward and remain competitive. These factors come from
various backgrounds. Those include the population change, culture change, objectives, change
and etc. The importance of these factors determines whether the change should take place or
not. Sometimes, changes are made, However, not all changes favour the businesses, but also
give negative impacts on the business as the changes made do not always guarantee for the
business profit. Hence, the businesses should be aware of the surrounding changes in the
external environment and need to adapt to the new situation quickly not to be left behind in the
business world.
Culture
Although Starbucks is a franchise and has to follow a core menu set by the franchiser, it also
has to adjust its products to the country it is located in and its culture. The products it sells has
to appeal to the market and their local culture. Since there are many people living in Malaysia
who are Muslims, in order for Starbucks to maximise sales it would have to convert into selling
Halal products to allow them to attract a wider target audience. By selling Halal products,
Starbucks may be one of the few large franchise chains that provide Halal products, allowing
them to stand out from competitors. This may increase customer loyalty and sales as
consumers repeat their purchases from Starbucks.
The price of Starbucks products would also be influenced by the cultures in the differing
countries. Germany is considered a MEDC that is developed and relatively economically stable,
compared to parts of Malaysia which may still be seen as developing. Due to Germany's
consistent high quality of life, many people drink coffee and dine at cafes as it has become a
lifestyle and social norm. Coffee is seen as a staple in Western culture, and the majority of
people in Germany grab a coffee on the way to work. This allows Starbucks to set the prices of
its products relatively high as there is a high demand for coffee products. Malaysia on the other
hand, has many competing local drinks such as Bubble Tea or Teh Tarik therefore there is a
lesser demand for coffee drinks as it is also more commonly seen in Western cultures.
Starbucks would be able to break even if they used competitive pricing and priced products at
slightly lower than competitors to increase sales. However, Malaysia is becoming more modern
and also attracts tourists therefore Starbucks may still survive if their products match
competitor's prices, especially since Starbucks is a well-known and established brand.
Ethics
Starbucks uses cocoa beans obtained only from workers who are paid at least the minimum
wage and are not children. They promote this on all of their products to maintain a socially
responsible brand image.
Globalisation
Starbucks targeted the niche in the market which allowed it to easily globalise and spread its
risks. There are downsides with globalisation as well, such as different economic situations in
different countries, making decision tougher.
Innovation
Innovation is an organisations process for introducing new ideas, workflows, methodologies,
services or products due to the sophisticated market demand. It includes researching on
possible beneficial product and developing the modern, reasonable, efficient products to gain
the competitive advantage over the businesses rivals, contributing the key element in providing
aggressive top-line growth. For example, innovation has created new leading industry such as
Smartphones. However, sometimes it can turn the business into the great loss. The causes of
loss can be from internal or external. From internal, the factors may range from poor time
management to poor creativities of the developers. For external, the factors may range from
government policies to cultural background depending on the location. So, innovation is the
important strategy for the business success.
Strategy
Starbucks has a history of effective marketing strategies. Since McDonalds and Dunkin Donuts
entered the coffee industry, there has been an increased competition between them. Starbucks
has found more success advertising on a local level rather than to the nation as a whole. The
Company advertises a lot through print mediums, as Starbucks’ target market tends to be
educated people who do more reading than the average person
Apple
Change
orientation. That applies throughout their company, around the world with no exceptions.
Practically since its inception back on April 1, 1976, Apple has repeatedly captured the world's
attention thanks in large part to its rebellious underdog attitude and continuous efforts to reset
expectations of what's possible from consumer electronics.
Culture
They want every person who joins their team, every customer visiting their stores or calling for
support to feel welcome. They believe in equality for everyone, regardless of race, age, gender,
gender identity, ethnicity, religion, or sexual orientation. That applies throughout their company,
around the world with no exceptions. They want every person who joins their team, every
customer visiting their stores or calling for support to feel welcome. They believe in equality for
everyone, regardless of race, age, gender, gender identity, ethnicity, religion, or sexual
Ethics
Around the globe, Apple employees are united in bringing equality, human rights, and respect
for the environment to the deepest layers of our supply chain. They demand that suppliers treat
workers fairly and ethically at all times.
Globalisation
First of July 2013, Apple has developed 417 retail stores in 13 countries and an online store
available in 38 countries with global sales of $16billion dollars in merchandise in 2011. As a
multi-national corporation, Apple Inc has realized the significance of globalization by spreading
all over the world.
Innovation
Apple has always been different as they have had a different perspective of the world, they
aspire to do more things and to have the opportunity to create the best products on earth,
products that change lives and help shape the future.
What is Apple’s fundamental soul? The company’s motto, “Think Different,” provides a hint.
Apple maintain an introspective, self-contained operating style that is capable of confounding
competitors and shaking up entire industries
Strategy
- Apple Brand Personality
- Customer Experience
- Apple Brand Architecture
- Apple Halo Effect
- Corporate Market
- Apple Watch
- Original Mac Marketing Strategy