Analysis McDonald’s Franchise in Viet Nam Essay

McDonaldss is a business corporation body of ready fodder eaterys with approximately 31,000 eaterys in 119 countries to serve 43 gazillion passengers a day under its own brand. The McDonaldss eating house design was introduced in San Bernardino, California by Dick and Mac McDonalds in May 15, 1940. It was modified and expanded by their business partner, Ray Kroc, of oak Park, Illinois, who later bought step to the fore the business interests of the McDonalds br otherwises in the concept and went on to found McDonaldss Corporation in April, 15, 1955.I.2. military mission and VisionMissionMcDonaldss brand mission is to be our customers favorite place and steering to eat. Our worldwide trading operations have been aligned around a orbiculate st valuategy called the Plan to Win centering on the five basics of an exceptional customer realize People, Products, Place, Price. We argon committed to improving our operations and enhancing our customers experience. VisionMcDonaldss vision is to be the worlds lift out quick service restaurant experience. Being the best means providing heavy(p) quality, service, cleanliness, and value, so that we make every customer in every restaurant smile.I.3. headache objectiveThe business objective of McDonalds, which is a fast nourishment restaurant, is to be the worlds best quick service restaurant experience. They also aim at being the best establishment by providing outstanding quality, service, cleanliness and value.II. SWOT AnalysisII.1. StrengthsStrong brand name, image and report McDonaldss is the leading global solid foodservice retailer with more than 34,000 topical anaesthetic restaurants fortune nearly 69 million batch in 118 countries each day. The McDonaldss image is easy recognized everywhere. This brand is in top cardinal of the most powerful brand name in the world. Large commercialiseplace sh be McDonaldss is pass oned as the largest player in size and global reach. When Wendys or Burgers King are losing market share in 2006, McDonaldss electrostatic increases its market share. Market share of McDonaldss in the recent time is round 19% while YumBrands is 9% and both Wendys and Burger King is 2% Specialized training for managers McDonaldss is very serious on training managers. This come with has its own program to train managers the most professionally, which is called Hamburger University. As a result, McDonaldss has many good managers who can help company development well. topical anestheticly holded food menus The fast food chain is operating in many diverse finales where insights in food are extremely assorted than those of US or European consumers.Thus ability to adapt to local tastes is one of McDonaldss strengths. Partnership withbest brands McDonaldss offers unaccompanied most popular brands in its restaurants, much(prenominal) as Coca Cola, Dannon Yogurt, Heinz ketchup and others. Technology Innovative McDonaldss is keeping at the pass of technology a round the globeII.2. WeaknessesUn sanitary food As we know, thither are foods in menu of McDonalds largely formed of sick meals and drinks. noneadays, people have trend to be take get by them health, they function to be use healthy food. High employee turnover Although McDonalds has many good managers as well as skillful employees, the turnover stray is still high. Every year many of their employees are fired out of the restaurants. Moreover, many others quit their jobs, e finically part time employees because of first-class honours degree stipend as well as too high working pressure. trouble related to health issue McDonalds use Trans fat and screak oil in their food.Although it is non illegal, it affects badly on customers health because Trans fat is causes of some kind of cancer. Consequently, a number of customers who care somewhat their health stop eating at McDonalds restaurants. It makes taxation of company decrease. Price quiet high Compare with other conventi onal fast food in Viet Nam, the McDonalds products hurt quiet high, its not suitable with almost personals income in Viet Nam.II.3. OpportunityGrowth of the fast food patience prodigal food market in Viet Nam is a potential market. Demand of people is in big cities are increase. In recent years, growth rate of fast food market continue to increase. Diverse tastes and needs of customers nodes tastes now become more diverse. As a result, they need new format of service in order to satisfy them. changing customer habits and new customer groups Nowadays, Vietnamese are more adapt with tastes of West. Almost people are trending use fast food by conveniently, especially majority young people in Viet Nam.II.4. ThreatsHigh warlike with other brand McDonalds go away be high rivalrous with other big brand stay in Viet Nam in pine time such as KFC, Lotteria,Jollibee, Pizza Hurt, Buger King, etc. Differences culture Differences culture also a threat with McDonalds when come to Viet Na m. Trend towards healthy eating Due to government and various organizations attempts to fight obesity, people are becoming more conscious of eating healthy food rather than what McDonaldss has to offer in its menu. III. avail and disadvantage of MacDonald claimIII.1. AdvantageFirst of all, fast food has become part of daily intent of young people, because of the speed of urbanization increase rapidly, consumer demand enhances, qualities of life are also stability, and it ensures that piece of fast food market constantly enlarged. Surveyed fast-food industry made by Nielsen Vietnam in 2010 shows that 86% of consumer this product under the ages of 20-35. So as a latecomer, McDonaldss exit also benefit from the attainment that KFC has political campaigns to build fast food habits for the Vietnamese. McDonaldss leave alone not chance too many unvoicedies to complete a supply chain standards schema for their restaurant in Vietnam, because the domestic producers now have plenty of experience coordinating with system fast food before.In additions, Food enculturation of McDonaldss has existed in 118 countries around the world so convincing taste of Vietnam is probably not too difficult problem for this giant. About Place, the latecomer these positions indulgent are occupied, barely beautiful place to McDonaldss developing restaurant will not too scare if they active evanesceing. Besides that, root in Viet Nam are developing, system buildings, supermarkets and modern commercial centers are upgrade steadily, and trend urbanization has created more beautiful space for fast food chain in Vietnam. GDP per capita is currently at 1,500 USD / year is low compared with the other area, but look at GDP per capita in cardinal biggest cities Hanoi and Ho Chi Minh City higher than the national norm pretty much (2012, Ha Noi at around $2,200 /person is Ho Chi Minh City is $3,600 / person).This income is sufficient to will sufficient to consumer willing spend from 4 6 dollars for a meal. Certainly two locations will be first place McDonaldss vindicated restaurant. Although McDonalds is a latecomer but not likely other fast food brand, McDonalds has special advantage of their own. That is the advantage of who hold the number one position fast food in the world.III.2. DisadvantageBesides there are advantages, McDonalds have disadvantage when come to Viet Nam, they will fail if they do not understand Vietnam. First off all, the difference culture, culture of Vietnamese cuisine is rich and varied, taste of East difference taste of West. Thus, McDonalds should consider this problem when offer food on menu. In addition, strengths of McDonalds in the U.S. market are breakfast (accounting for one quarter of total revenue) is not applicable in Vietnam.Because the habit of Vietnamese considered breakfast is snacks. McDonalds will be face fierce competition with other brand such as KFC, Lotteria, Jollibee, and these competitors has existent more than 15 years and has significant market share of the fast food market. One thing important franchisee of McDonalds in Viet Nam will face that is place rental costs are very expensive. One the other hand, there are conveniently local are occupied by other brand. Thus, franchisee in Viet Nam will effort find out local put McDonalds restaurant.The problem about price also an obstacle with McDonalds, compare with other country Viet Nams GDP per capita is still low. Thus, fats food brands are still being contend on price. Thus McDonalds should consider this problem if they want to competitory with other brands.IV. Investment decisionConsider all aspects of McDonalds franchise in Viet Nam, I see that although a latecomer they have some difficult and challenge but fast food market is still potential. McDonalds has competitive advantages compare with other brands, especially with the position of World No. 1, McDonalds already challenge with any competitors on fast food market in Viet Nam. If I have a chance I will investment franchise McDonalds brand in Viet Nam.V. succinctViet Nam is the next destination when McDonalds has officially announced they will open their first store in Viet Nam at beginning 2014 year. This is good give-and-take because when fast food tycoon comes to Viet Nam, fast food market will compete more fierce and meanwhile the biggest beneficiaries none otherthan will be the consumer. Because of the presence of McDonalds will make all other fast food chain must work harder if they do not want to be swallowed market share.VI. References listJerome Katz / Richard Green, Entrepreneurial Small Business 4th Edition,Graw-Hill International Edition. Essentials of Services Marketing 2nd Edition, Vochen Wirtz, Patricia Chew, Christopher Lovelock. Principle of marketing fourteenth edition- Philip Kotler and Gary Armstrong http//www.aboutmcdonalds.com/mcd/our_company.htmlhttp//www.mcdonalds.com/us/en/our_story/our_history.htmlhttp//www.strategicmanagementi nsight.com/swot-analyses/mcdonalds-swot-analysis.html http//www.dna.com.vn/vi/tinh-huong-thuong-hieu/s/mcdonalds-se-that-bai-neu-khong-hieu-viet-nam/