Tuesday, May 5, 2020
Biggest Company Serving Fast Food Customers-Myassignmenthelp.Com
Question: Discuss About The Biggest Company Serving Fast Food Customers? Answer: Introducation McDonalds is worlds one of the biggest company serving fast food to all the customers worldwide. The company has its outlets in 36,000 locations and in 100 countries. The company serves 69 million customers daily. So it can be said that the management system of the company is very efficient and effective. The founders of the company are, Richard and Maurice McDonald who opened the first outlet in the year 1948 (Peteraf, Gamble, Thompson 2014). The reason for choosing McDonalds is that the company very smartly replicated the idea of fat food chain from white castle company and reached on the peak of the market. Further the management model of the company is discussed below: The company McDonalds believes that they have gained the market capitalization through the power of franchisees, employees and the suppliers of the company. It is the belief of the company that in order to grow they dont need to initiate innovation or technology in their business, they can win with simple techniques as well; but those techniques shall be smartly played in the market. The mission of the company says that they want to become the favorite place of their customers (Baden-Fuller, Morgan 2010). Thus the company used the technique of providing the best services to the customers in a cost efficient manner. The company does not usually amend changes in the production. Instead they aim to gain specialization in the regular work which they perform. Also the company gained profit from that regular activity only. The competitive advantage which the company enjoyed is the cost leadership in the market. The main profit which the company receives is through franchising; around 80% of the revenue is received by franchising. Thus the company used simple business technique to gain profit in the market (Morris, Shirokova, Shatalov 2013). Also due to quality in the taste of products along with standardization of products the company gained the trust of the customers. The company constantly maintained the quality of the product which led the customers to trust on the working of the company due to which the sale also increased. Apart from customer satisfaction and menu standardization, the way through which the company gained success is through breakfast menu item. The company led to this small innovative change in its system by changing the menu for the breakfast. This activity of the company shows that they care for the needs and requirements of the customers (Vitasek, Manrodt, Kling 2012). This process led o major change in the sales volume of the company along with increase in the customer base as well. The company business model shows that it does not believe in playing aggressively in the market. Instead the company optimally uses all the given resources to achieve the desired quality and aim to provide maximum satisfaction to the customers. The company enjoys a market capitalization of $3,829 billion (Morris, Shirokova, Shatalov 2013). Thus it can be said that the company enjoys market capitalization and competitive edge in the market only by focusing on the product of the company using cost efficient techniques so that subsequently the price of the product is also decreased. E-Bay Inc. eBay is a multinational corporation holing its business online. The company is a customer to customer e-commerce business under which all the transactions are don websites only. ebay was found in the year 1995 by Pierre Omidyar. The company manages the buying and selling transaction of many goods and services worldwide. The company introduced an innovative tool to manage the business transactions efficiently (Zott, Amit 2010). The reason for choosing eBay is that the company took a risky step to make use of innovative technology and change the way o regular buying and selling products. Further the company used efficient business model to gain competitive advantage within the organization. The business model of eBay is explained below: The company eBay is growing with a fastest speed in the e commerce business. The company with the innovative business model is constantly increasing its customer base longer with providing them greater satisfaction though their services as well. The company buys the products in bulk due to which they receive products at a lower cost. Also due to innovative technology used in the working of the business, e bay enjoys the competitive advantage of large customer base that are not restricted with geographical boundation (Casadesus-Masanell, Ricart 2011). The vision of the company suggests that it wants to provide more and more services to the customers with greater satisfaction and cost effective rates. So for that purpose the company used the business model in following ways: The company uses customer to customer business model. Under this model a customer posts products on the website and auction is made on that product. The customer bids to purchase the product and who so ever person bids highest, the product is sold to them. In this way the value to product is increased and both the parties get satisfied through this method. Also in this mode the company gets benefit of inventory storage cost, as they do not have to store the inventory in their warehouses in this method. The website of the company links 35 million buyers and sellers all around the world. Due to this business model, an innovative change has occurred in the market due to which people have started using online technology to make purchase or sale (Gambardella, McGahan 2010). Further one of the best feature of this C2C business model is that is a transparent form of model under which no information is hidden by any party. The cash transactions are also initiated through online mode making the transaction more secure. The company eBay took a risk to implement technological innovation within their organization and spread the use of such technology all around the world. The company derives its revenue by communicating the information to the interested parties and joins them together to hold transactions. Now people make online payment because of the trust of people on the business model of the company. Also this model satisfies the requirement of both the parties through auctioning the product (Walker, Madsen 2016). References Zott, C. Amit, R., 2010. Business model design: an activity system perspective. Long range planning, 43(2), pp.216-226. Casadesus-Masanell, R. Ricart, J.E., 2011. How to design a winning business model.Harvard business review,89(1/2), pp.100-107. Gambardella, A. McGahan, A.M., 2010. Business-model innovation: General purpose technologies and their implications for industry structure.Long range planning,43(2), pp.262-271. Walker, G. Madsen, T.L., 2016.Modern competitive strategy. McGraw-Hill Education. Peteraf, M., Gamble, J. Thompson Jr, A., 2014.Essentials of strategic management: The quest for competitive advantage. McGraw-Hill Education. Baden-Fuller, C. Morgan, M.S., 2010. Business models as models.Long range planning,43(2), pp.156-171. Morris, M.H., Shirokova, G. Shatalov, A., 2013. The business model and firm performance: The case of Russian food service ventures.Journal of Small Business Management,51(1), pp.46-65. Vitasek, K., Manrodt, K. Kling, J., 2012.Vested: How PG, McDonald's, and Microsoft are Redefining Winning in Business Relationships. Springer.