Recommendations of Mcdonalds India: Optimizing The French Fries Supply Chain Case Analysis
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Recommendations of Mcdonalds India: Optimizing The French Fries Supply Chain Case Study Help
On the basis of above internal and external analysis of the business along with the examination of various alternatives, the company is advised to think about alternative 3. As alternative 3 would allow the company to expand in international markets without any reduction in its regional incomes and any deterioration of its market position. The company could pursue alternative 1 which would make it possible for the business to focus on potential global markets rather than the local markets but as the business is highly dependent on the local markets with 90% of its stores in the US, there fore pursuing option 1 would result in the considerable decline in company's revenue.
Aletrnative-1: Expanding International Brick and Recommendations of Mcdonalds India: Optimizing The French Fries Supply Chain Case Solution Stores
The company has a long term market position in United States which can not be generated soon in the brand-new markets. The alternative would help the company to broaden in worldwide markets along with the elimination of concerns raised in its local markets related to its variety.
Pros:
• Expedition of brand-new global markets.
• Boost in revenue from global markets.
• Elimination of problems associated with diversity.
• Profits diversification.
• Action towards being a strong global brand name.
Cons:
• Loss of extensive earnings from the regional markets.
• Increase in competition.
• Differences in cultures could led to a failure of the brand name especially in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenditures to acquire market share.
Alternative-2: Introduction of Click and Recommendations of Mcdonalds India: Optimizing The French Fries Supply Chain Case Solution Stores
Alternative 2 includes the intro of online market locations through generating a correct business's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. might present an extreme danger to the marketplace share of company. Furthermore, the competitors are shifting towards click and Recommendations of Mcdonalds India: Optimizing The French Fries Supply Chain Case Solution shops with Gap presenting Piperline. This shift towards online markets might lower the profits for company. In this circumstance the company could consider introducing Click and Recommendations of Mcdonalds India: Optimizing The French Fries Supply Chain Case Solution stores. These shops with a low requirement of funds to settle would enable the company to reach global markets, without ending its domestic shops. The pros and cons of option 2 are provided as follows;
Pros:
• Low investment
• Lowering competition danger
• Access to the world markets
• Expanding customer base
• Easy to handle
• Large Incomes
• Low Operating Costs
• Easy brand-new market entryway
Cons:
• Hazard to the marketplace position
• Removal of brand name Originality
• Elimination of the fantastic shop experience.
• Threat of decrease in elite sales.
Alternative-3: Expansion towards International Markets Without closing Domestic Stores
Another option that the business might think about, is to expand towards the global markets without closing its domestic shops that contributes to the huge part of profits of the business. The benefits and drawbacks associated with Alternative 3 are given listed below;
Pros:
• Decreasing competition threat
• Access to the world markets
• Enlarging consumer base
• Big Profits
• Expedition of brand-new worldwide markets.
• Boost in profits from global markets.
• Income diversification.
• Step towards being a strong worldwide brand.
Cons:
• Extension of problems related to variety.
• Differences in cultures might caused a failure of the brand specifically in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenses to acquire market share.
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