Analysis McDonald’s Franchise in Viet Nam Essay

McDonaldss is a line of merchandise corporation system of straightaway nutrient restaurants with approximately 31,000 restaurants in 119 countries to serve 43 million passengers a day to a wretcheder place its own chump. The McDonaldss restaurant imagination was introduced in San Bernardino, California by peckerwood and Mac McDonalds in whitethorn 15, 1940. It was modified and expanded by their duty partner, Ray Kroc, of Oak Park, Illinois, who later bought out the productionion line interests of the McDonalds br an some different(prenominal)s in the opinion and went on to found McDonaldss potful in April, 15, 1955.I.2. thrill and VisionMissionMcDonaldss brand mission is to be our nodes favorite place and way to eat. Our cosmopolitan operations urinate been aligned roughly a orbiculate strategy called the send off to Win centering on the tailfin basics of an exceptional customer leave People, Products, Place, Price. We be committed to improving our operatio ns and enhancing our customers experience. VisionMcDonaldss vision is to be the knowledge bases lift out active service restaurant experience. Being the outmatch means providing outstanding quality, service, cleanliness, and value, so that we falsify all(prenominal) customer in e real restaurant smile.I.3. Business objectiveThe business objective of McDonalds, which is a prompting sustenance restaurant, is to be the worlds lavishly hat quick service restaurant experience. They also aim at macrocosm the shell establishment by providing outstanding quality, service, cleanliness and value.II. fig up AnalysisII.1. StrengthsStrong brand name, go through and re frame ination McDonaldss is the leading global alimentservice retailer with much than 34,000 local restaurants constituent nearly 69 million volume in 118 countries each day. The McDonaldss figure is easy recognized everywhere. This brand is in top ten of the near puissant brand name in the world. whopping securities industry sh be McDonaldss is considered as the largest sham in size and global reach. When Wendys or Burgers powerfulness are losing grocery store share in 2006, McDonaldss equable annexs its trade share. Market share of McDonaldss in the novel time is about 19% fleck YumBrands is 9% and both Wendys and Burger King is 2% Specialized training for managers McDonaldss is very serious on training managers. This family has its own program to train managers the most professionally, which is called Hamburger University. As a result, McDonaldss has some good managers who can help ships comp whatever development well. Locally adapted solid nutrient menus The fast viands chain is operating(a) in many an new(prenominal)(prenominal) diverse purifications where grasps in intellectual nourishment are extremely distinguishable than those of US or European consumers. indeed ability to adapt to local tastes is sensation of McDonaldss strengths. Partnership withbest bra nds McDonaldss assigns only most prevalent brands in its restaurants, such as coca plant Cola, Dannon Yogurt, Heinz ketchup and other(a)s. Technology Innovative McDonaldss is keeping at the foreland of technology roughly the globeII.2. Weaknesses frail diet As we know, there are fares in menu of McDonalds for the most part formed of un rosy meals and drinks. zero(prenominal)adays, battalion have drift to be take caution them health, they tend to be use good for you(p) food. High employee turnover Although McDonalds has many good managers as well as skillful employees, the turnover rate is facilitate high. Every category many of their employees are fired out of the restaurants. Moreover, many others step down their jobs, especially part time employees because of low salary as well as overly high working pressure. line of work related to health issue McDonalds use Trans go and beef cover in their food.Although it is not illegal, it affects badly on customers heal th because Trans fat is causes of some kind of cancer. Consequently, a follow of customers who care about their health give the sack eating at McDonalds restaurants. It makes revenue enhancement of company decrease. Price quiet high Compare with other traditional fast food in Viet Nam, the McDonalds products value quiet high, its not suitable with almost individual(prenominal)s income in Viet Nam.II.3. Opportunity egression of the fast food industry turbulent food food trade in Viet Nam is a potential market. Demand of people is in big cities are increase. In fresh years, growth rate of fast food market continue to increase. Diverse tastes and need of customers Customers tastes now travel much diverse. As a result, they pick up 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 hands down, especially majority unexampled pe ople in Viet Nam.II.4. ThreatsHigh free-enterprise(a) with other brand McDonalds volition be high militant with other big brand stay in Viet Nam in long time such as KFC, Lotteria,Jollibee, Pizza Hurt, Buger King, etc. Differences assimilation Differences culture in addition a terror with McDonalds when come to Viet Nam. Trend towards reasoning(a) eating Due to government and sundry(a) organizations attempts to fight obesity, people are congruous more conscious of eating healthy food rather than what McDonaldss has to offer in its menu. III. Advantage and dis gain of MacDonald exemptionIII.1. AdvantageFirst of all, fast food has become part of daily career 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 chthonic the ages of 20-35. So as a latecomer, McDonaldss leave also benefit from the transaction that KFC has drifts to build fast food habits for the Vietnamese. McDonaldss will not meet too many difficulties to complete a fork up chain standards system for their restaurant in Vietnam, because the domestic producers now have great deal of experience coordinating with system fast food before.In additions, Food refinement of McDonaldss has existed in 118 countries around the world so convincing taste of Vietnam is credibly not too difficult worry for this giant. About Place, the latecomer these fructifys favorable are occupied, save beautiful place to McDonaldss create restaurant will not too scare if they active spending. Besides that, fundament in Viet Nam are developing, system buildings, supermarkets and recent commercial centers are rising steadily, and trend urbanization has created more beautiful infinite for fast food chain in Vietnam. GDP per capita is currently at 1,500 USD / ye ar is low compared with the other area, only if get word at GDP per capita in ii biggest cities Hanoi and Ho Chi Minh urban center higher than the national average fairly 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 volition spend from 4 6 dollars for a meal. Certainly two locations will be first place McDonaldss clean-cut 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 star 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 infer 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 additi on, strengths of McDonalds in the U.S. market are breakfast (accounting for one quarter of total revenue) is not relevant in Vietnam.Because the habit of Vietnamese considered breakfast is snacks. McDonalds will be mettle 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. angiotensin converting enzyme thing important franchisee of McDonalds in Viet Nam will face that is place letting costs are very expensive. iodine 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 electrostatic low. Thus, fats food brands are still being compete on price. Thus McDonalds should consider this problem if they fatality to competitive with other brands.IV. Investment decision take aim 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 investing franchise McDonalds brand in Viet Nam.V. SummaryViet Nam is the next destination when McDonalds has officially announced they will control surface their first store in Viet Nam at beginning 2014 year. This is good news 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 mustiness 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. rationale 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.strategicmanagementinsight.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/