Recommendations of Mcdonalds India Optimizing The French Fries Supply Chain Case Solution
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Recommendations of Mcdonalds India Optimizing The French Fries Supply Chain Case Study Solution
On the basis of above internal and external analysis of the company in addition to the examination of various alternatives, the business is advised to consider alternative 3. As alternative 3 would permit the company to expand in worldwide markets without any reduction in its local incomes and any degeneration of its market position. By thinking about Alternative 3, the company might maintain its store experience and brand uniqueness. However, it might likewise think about alternative 2 that might enable the company to access the markets without any prospective financial investment. Although, the company might pursue alternative 1 which would enable the company to concentrate on potential international markets rather than the regional markets however as the business is highly dependent on the local markets with 90% of its shops in the US, there fore pursuing option 1 would result in the considerable decline in business's income. For that reason, the business is recommended to consider alternative 3.
Aletrnative-1: Expanding International Brick and Recommendations of Mcdonalds India Optimizing The French Fries Supply Chain Case Solution Stores
Expansion towards global markets through opening brand-new shops in other Europe and Asian countries with closing domestic shops is although an excellent alternative for increasing the global presence of the business. The closing of domestic shops might highly affect the earnings of the firm as above 90% of its shops are situated locally and closing those shops would ultimately lower the revenues of the firm. The business has a long term market position in US which can not be created soon in the brand-new markets. The choice would help the business to expand in global markets along with the removal of concerns raised in its local markets connected to its diversity. The pros and Cons for Option 1 are listed below;
Pros:
• Exploration of new international markets.
• Increase in revenue from international markets.
• Elimination of problems connected to diversity.
• Earnings diversification.
• Step towards being a strong worldwide brand name.
Cons:
• Loss of extensive profits from the regional markets.
• Boost in competitors.
• Distinctions in cultures might caused a failure of the brand especially in Asian countries.
• Low incomes at preliminary levels.
• Boost in marketing expenses to gain market share.
Alternative-2: Introduction of Click and Recommendations of Mcdonalds India Optimizing The French Fries Supply Chain Case Solution Stores
Alternative 2 consists of the intro of online market locations through generating an appropriate company's site. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on might pose an extreme threat to the market share of company. Additionally, the competitors are moving towards click and Recommendations of Mcdonalds India Optimizing The French Fries Supply Chain Case Help stores with Space presenting Piperline. This shift towards online markets could lower the incomes for business. In this situation the company could consider introducing Click and Recommendations of Mcdonalds India Optimizing The French Fries Supply Chain Case Analysis shops. These shops with a low requirement of funds to settle would allow the business to reach worldwide markets, without ending its domestic shops. The benefits and drawbacks of alternative 2 are provided as follows;
Pros:
• Low investment
• Decreasing competition risk
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Big Earnings
• Low Operating Expense
• Easy brand-new market entrance
Cons:
• Risk to the market position
• Elimination of brand Uniqueness
• Elimination of the excellent store experience.
• Threat of decrease in elite sales.
Alternative-3: Expansion towards International Markets Without closing Domestic Stores
Another alternative that the business could consider, is to expand towards the worldwide markets without closing its domestic stores that adds to the major part of revenues of the business. The pros and cons related to Alternative 3 are offered below;
Pros:
• Minimizing competitors risk
• Access to the world markets
• Expanding consumer base
• Big Profits
• Exploration of new international markets.
• Increase in income from worldwide markets.
• Revenue diversification.
• Step towards being a strong global brand name.
Cons:
• Continuation of problems associated with diversity.
• Differences in cultures might caused a failure of the brand especially in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenses to acquire market share.
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