Wednesday, January 29, 2020

Mcdonalds Around the World Essay Example for Free

Mcdonalds Around the World Essay Ray Kroc opened the first McDonald’s restaurant in 1955 in the United States. He offered a limited menu of high quality; moderately priced food served fast spotless surroundings. McDonald’s QSCV (quality, service, cleanliness, and value) was a hit. The chain expanded into every state in the nation. By 1983 it had more than 6,000 restaurants in the United States, and by 1995 it had more than 18,000 restaurants in 89 countries. In 1995 alone, the company built 2,400 restaurants, and by 2001 it had more than 29,000 restaurants in 121 countries. In 1967, McDonald’s opened its first restaurant outside the United States- in Canada. Since then, its international growth accelerated. In 1995, the â€Å"Big Six† countries that provided about 80 percent of the international operating income were Canada, Japan, Germany, Australia, France, and Britain. Yet fast food has barely touched many cultures. The opportunities for expanding the market are great, as 99 percent of the world populations are not yet McDonald’s customers. For example, in China, with a population of 1. 2 billion people, there were only 62 McDonald’s restaurants in 1995. McDonald’s vision is to be the major player in food services around the world. In Europe, McDonald’s maintains a small percentage of restaurant sales but commands a large share of the fast-food market. It took the company 14 years of planning before it opened a restaurant in Moscow in 1990. But the planning paid off. After the opening, people were standing in line for up to two hours for a hamburger. It has been said that McDonald’s restaurant in Moscow attracts more visitors (on average 27,000 daily) than Lenin’s mausoleum (about 9,000 people), which used to be the place to see. The Beijing opening in 1992 attracted some 40,000 people to the largest (28,000 square foot) McDonald’s restaurant in China at a location where some 800,000 pedestrians pass by every day. Food is prepared in accordance with local laws. For example, the menus in Arab countries comply with Islamic food preparation laws. In 1995, McDonald’s opened its first kosher restaurant in Jerusalem, where it does not serve dairy products. The taste for fast food, American style, is growing more rapidly abroad than at home. McDonald’s international sales have been increasing by a large percentage every year. Every day, more than 33 million people eat at McDonald’s around the world, with 18 million of them in the United States. Prices vary considerably around the world, ranging from $ 3. 81 in Switzerland to $ 0. 78 in Argentina for the Big Mac, which costs in the United States $ 2. 49. The Economist magazine even devised a Big Mac index to estimate whether a currency is over-or undervalued. For example, the $1. 27 Chinese Mac translates into an implied purchasing power parity of $ 4. 22. The inference is that the Chinese currency is undervalued. Here are other price comparisons for the $ 2. 49 U. S Big Mac: Chile $ 2. 16, Euro area $ 2. 37, Hong Kong $ 1. 40, Japan $ 2. 01, Mexico $ 2. 37, Peru $ 2. 48, Singapore $ 1. 81 and Thailand $ 1. 27. McDonald’s traditional menu has been surprisingly successful. People with diverse dining habits have adopted burgers and fries wholeheartedly. Before McDonald’s introduced the Japanese to French fries, potatoes were used in Japan only to make starch. The Germans thought hamburgers were people from the city of Hamburg. Now McDonald’s also serves chicken, sausage, and salads. Another item, a very different product, is pizza. In Norway, McDonald’s serves grilled salmon sandwich, in the Philippines pasta sauce with frankfurter bits, and in Uruguay hamburger with a poached egg. Any new venture is risky and can be either a very profitable addition or a costly experiment. Despite the global operations, McDonald’s stays in close contact with its customers, who want good taste, fast and friendly service, clean surroundings, and quality. To attain quality, so called quality assurance centers are located in the United States, Europe, and Asia. In addition, training plays an important part in customer service. Besides day-today coaching, Hamburger Universities in the United States, Germany, Britain, Japan, and Australia teach the necessary skills in 22 languages with the aim of providing 100 percent customer satisfaction. It is interesting that McDonald’s was one of the first restaurants in Europe to welcome families with children. Not only are children welcomed, but in many restaurants they are also entertained with crayons and paper, a play land, and the clown Ronald McDonald, who can speak 20 languages. With generally aging populations, McDonald’s takes aim at the adult market. With heavy advertising (it has been said that McDonald’s will spend $200 million to promote the new burger), the company introduced Arch Deluxe on a potato-flower bun with lettuce, onions, ketchup, tomato slices, American cheese, grainy mustard, and Mayonnaise. Although McDonald’s considers the over 50 adult burger a great success, a survey conducted five weeks after its introduction showed mixed results. McDonald’s golden arches promise the same basic menu and QSCV in every restaurant. Its products, handling and cooking procedures, and kitchen layouts are standardized and strictly controlled. McDonald’s revoked the first French franchise because the franchise failed to meet its standards for fast service and cleanliness, even though their restaurants were highly profitable. This may have delayed its expansion in France. McDonald’s restaurants are run by local managers and crews. Owners and managers attend the Hamburger University near Chicago or in other places around the world to learn how to operate a McDonald’s restaurants and maintain QSCV. The main campus library and modern electronic classrooms (which include simultaneous translation systems) are the envy of many universities. When McDonald’s opened in Moscow, a one-page advertisement resulted in 30,000 inquiries about the jobs; 4,000 people were interviewed and some 300 were hired. The pay is about 50 percent higher than the average Soviet salary. McDonald’s ensures consistent products by controlling every stage of the distribution. Regional distribution centers purchase products and distribute them to individual restaurants. The centers will buy from local suppliers if the suppliers can meet detailed specifications. McDonald’s has had to make some concessions to available products. For example, it is difficult to introduce the Idaho potato in Europe because of special soil requirements. McDonald’s uses essentially the same competitive strategy in every country: be first in a market and establish its brand as rapidly as possible by advertising very heavily. New restaurants are opened with a bang. So many people attended the opening of one Tokyo restaurant that the police closed the street to vehicles. The strategy has helped McDonald’s develop a strong market share in the fast-food market, even though its U. S competitors and new local competitors quickly enter the market. McDonald’s advertising campaigns are based on local themes and reflect the different environments. In Japan, where burgers are a snack, McDonald’s competes against confectioneries and new â€Å"fast sushi† restaurants. Many of the charitable causes McDonald’s supports abroad have been recommended by its local restaurants. McDonald’s business structures take a variety of forms, with 66 percent of the restaurants being franchises. The development licenses are similar to franchising, but they do not require McDonald’s investment. Joint ventures are undertaken when understanding of the local environment is critically important. The McDonald’s Corporation operates about 21 percent of the restaurants. McDonald’s has been willing to relinquish the most control to its Far Eastern operations, where many restaurants are joint ventures with local entrepreneurs, who own 50 percent or more of the restaurant. European and South American restaurants are generally company-operated or franchised (although there are many affiliates, or joint ventures, in France). Like the U. S franchises, restaurants abroad are allowed to experiment with their menus. In Japan, hamburgers are smaller because they are considered a snack. The Quarter Pounder does not make much sense to people on a metric system, so it is called a Double Burger. Some German restaurants serve beer; some French restaurants serve wine. Some Far Eastern McDonald’s restaurants offer oriental noodles. In Canada, the menu includes cheese, vegetables, pepperoni, and deluxe pizza. However, these new items must not disrupt the existing operation. Despite its success, McDonald’s faces tough competitors, such as Burger King, Wendy’s, Kentucky Fried Chicken (KFC), and now also Pizza Hut. Moreover, fast food in reheatable containers is now also sold in supermarkets, delicatessens, convenience stores, and even gas stations. McDonald’s has done very well, with a great percentage of profits coming now from International operations. For example, McDonald’s dominates the Japanese market with 1,860 outlets (half the Japanese market) in 1996 compared to only 43 Burger King Restaurants. However, the British food conglomerate Grand Metropolitan PLC, which owns Burger King, haw an aggressive strategy for Asia. Although McDonald’s has been in a very favorable competitive position, since 2001 the customer satisfaction level has been below that of its competitors Wendy’s and Burger King. In China, KFC is more popular than McDonald’s. Some observers suggest that McDonald’s has expanded too fast and that Burger King and Wendy’s have tastiest meals. It is Mr. Jack Greenberg’s (McDonald’s top manager) task to change things around.

Monday, January 20, 2020

Tourette Syndrome :: essays research papers

Tourette Syndrome   Ã‚  Ã‚  Ã‚  Ã‚  Tourette Syndrome was named for Georges Gilles de la Tourette, who first described the syndrome in 1885. Although the disease was identified in 1885, today in 1996, there still is a mystery surrounding Tourette Syndrome, its causes and possible cures. Tourette Syndrome is a neurological disorder that researchers believe is caused by and abnormal metabolism of the neurotransmitters dopamire and serotonin. It is genetically transmitted from parent to child. There is a fifty percent chance of passing the gene on from parent to child (Gaffy,Ottinger). Those most at risk are sons of mothers with Tourette Syndrome. About three-quarters of Tourette Syndrome patients are male. Males with the disorder have a ninety-nine percent chance of displaying symptoms. Females, have a seventy percent chance of displaying symptoms. This ration of 3-4:1 for males and females may be accounted for by referral bias. Also, there is a frequent number of reported cases within the Mennonite religious isolate population in Canada. The specific genetic transmission however, has not been established. Some researchers believe that the mar is on an autosomal dominant trait. Some cases however are sporadic, and there may not be a link to family history involved. These cases are mild however, and not full blown. The onset of Tourette Syndrome must be before the age of fifteen, and usually occurs after the age of two. The mean age onset of motor tics is seven. The mean age onset for vocal tics is nine. In order for a person to be classified as having Tourette Syndrome they must have both multiple motor tics and vocal tics. These tics however do not have to occur everyday. In fact, affected individuals may rarely exhibit all of the symptoms, or all of the tics. The vocal and motor tics must also occur within the same year, for a person to be classified as having Tourette Syndrome. Symptoms can disappear for weeks or months at a time. However if people afflicted with the syndrome try and suppress their tics, they will re occur with increased ferver. Tics increase as a result of tension or stress, and decrease with relaxation or concentration on absorbing a task.   Ã‚  Ã‚  Ã‚  Ã‚  Tics are classified into two groups: complex and simple tics. Simple tics are movements or vocalizations which are completely uncomprehendable and meaningless to those not suffering from the disorder (Peiss). Complex tics are movements or vocalizations which make use of more than one muscle group to appear to be meaningful (Peiss). Simple motor tics are: eye blinking, head jerking, shoulder shrugging or facial grimacing. Simple vocal tics are: throat clearing, coughing, snorting, baiting, yelping.

Sunday, January 12, 2020

Body Shop

Anita Roddick, OBE, and The body Shop International Plc FEDBACK FOR QUESTION WEEK 3 for week commencing 19. 03. 12 1. Evaluate the Financial Position of the Company (at the time of the case study) and comment upon the apparent success or otherwise of its strategy, based on your findings. Introduction We may consider a company’s strategy from a number of aspects, but generally we are interested in answering the question: How well is the company’s present strategy working? To understand and analyse success in terms of strategy, we must begin by understanding what the strategy is.From Thompson, Strickland and Gamble (2012) we might examine the following areas * Identify competitive approach * Low-cost leadership? * Differentiation? * Best-cost provider? * Focus on a particular market niche? * Determine competitive scope * Broad or narrow geographic market coverage? * In how many stages of industry’s production/distribution chain does the company operate? * Examine r ecent strategic moves * Identify functional strategies We can also assess performance in terms of both quantitative measures (financial and strategic achievements against budget, plans, etc. and look to see if its performance is above or below the industry average. We can also look at qualitative measures (such as brand awareness /status, consumer attitudes to the company, and so on). There is only limited information in the case regarding some of these areas, but I will attempt to look first at the strategy followed by Body Shop, then at the financial ratios based on its figures, non-financial measures and then finally draw conclusions that attempt to answer the question.Strategy being followed by Body Shop Porter’s Generic strategies, as amended by Hitt, Ireland and Hoskisson (2002) are shown below. If we consider first, their competitive approach, there is no evidence in the case study that Body Shop has any concern about Cost Leadership, and in fact we know from the Tradi ng Charter and Mission (case, page 539) that the firm pays above market rates for goods it buys from suppliers in poorer countries, where it can, which is not something a cost-leadership company would normally do.We also have plentiful evidence from the case that Body Shop occupies a unique position in the cosmetics retailing industry, as it takes a highly principled stance on many issues, as indicated in my earlier answer to question 2, and shown in the firm’s mission statement, which mentions many areas of Corporate Social Responsibility – ecological and ‘green’ issues, human and civil rights, against animal testing of cosmetics, and so on. The company must therefore be following a Differentiation strategy.The question then is whether this is broad or narrow in focus, as suggested by Thompson, Strickland and Gamble, as mentioned earlier – their competitive scope. The decision here rests on how one defines the market: Body Shop is a retailer that a lso manufactures, within the cosmetics industry. It is a specialist retailer, not selling anything apart from its own products and is not configured and structured like bigger retailers such as – in the UK – House of Fraser, Debenhams, Boots, Marks and Spencer or Tesco, all of whom retail cosmetics amongst many other product ranges.I therefore conclude that Body Shop is a Focused Differentiator. Firms that seek differentiation, according to Porter, seek higher profit margins through finding something unique about themselves, which consumers value more than the offerings of competitors. In the case of Body Shop we might see this as being their highly visible and principled ethical stance, and the range of products which they sell, being organic, fair trade and ethically produced and traded, so their competitive approach and scope is Focus Differentiation, as such a stance is not likely to appeal to all shoppers.Similarly, some, at least would be indifferent to the organ ic/fair trade/human rights etc appeal of the stores and others might consider the range of products to be relatively limited and not of sufficiently high brand status, as the products in Body Shop stores fit in price and value terms between the low-cost products offered in stores like Sainsbury and Tesco, and the high-end cosmetics of Helena Rubenstein, Elizabeth Arden etc, sold via stores such as House of Fraser and Debenhams.In terms of recent strategic moves, we can see from the case only that the firm has expanded reasonably quickly, via franchising mostly; from the case it seems that about 80% of stores are franchised out. In terms of functional strategies, we can see the small amount of vertical integration mentioned in the case, whereby the largest part of the business is involved in running the owned shops and franchise, and a small amount of manufacturing in terms of soap products, etc.It is important to note that for the next section, examining Body Shop’s finances, the franchising approach is important, as it has a major impact on revenues – however successful a store is, the majority of revenues will go to the franchisee, not the Body Shop. According to Cavusgil, Knight and Reisenberger (Called CKR in future – from p 246), the initial revenue to Body Shop will be from the franchising fee, but then they will get regular revenues from product sales to the stores and from the royalty fees. This is likely to amount to about 30% of revenue in total (25% from product charges and 5% royalty fee).Body Shop’s Financial Position We are asked to evaluate the firm’s financial position. Briefly, Body shop is a retailer that sells in around 45 countries and uses a mixed mode of Franchising and FDI though investing in owned retail stores. So far as I can tell, about 80% of the 1,208 stores are franchised. Franchising is a particular form of retail expansion, where, according to Cavusgil, Knight and Reisenberger, an entrepreneur buys into an established brand system. The best known franchise is probably McDonalds, but Body Shop is a medium-sized international franchise, given its range of countries and umber of stores (much smaller than McDonalds, which has over 33,000 restaurants worldwide, and annual revenues (2010) of about ? 15 billion. I will come back to this more modern data later in my answer. When examining the financial basis of a business, there are – according to Thompson Strickland and Gamble – five areas which can be studied – 1. Profitability (the profits made by the business on its activities), 2. Liquidity (the ability of a business to pay its debts [creditors] and collect money from customers [debtors]), 3.Leverage (the amount of money invested in the business by shareholder – v – the amounts borrowed from financial institutions, to fund the business and invest in its future), 4. Business Activities (amounts of stock held in the business, how quickly it t urns over, and so on), and 5. Stockholder Interests (the amount of money paid in dividends, value changes in share prices, etc. ) * According to the lecture notes in week 10, Ratio analysis can be used to: * Compare the performance of a company over a period of time. Compare the performance of your own company with that of one of your competitors or the industry sector. * Detect weaknesses in aspects of your operations, e. g. debt management, stock levels etc. which you can improve. * Assess a company's exposure to short term risk through its liquidity (ability to meet debts). * Determine a company's profitability. Much of this data is useful only when considered against the performance of other firms and we have no data from the case to illustrate any of this. However, I have approached the financial situation analysis in two ways.First I look at the basic ratios for the firm and comment on them; second, I have compared the latest data for Body shop, with a number of its contempora ries, both in retail and in franchising, in order to make some valid comparisons. Profitability the commonest ratios are Profit before Interest payments on loans, Taxation, Depreciation and other fixed costs like mortgage payments. Often referred to as operating profit or EBITDA; for Body Shop in 1995 I have calculated this as Profit for the year/turnover*100 (from figures, case pp553/4), this is 33. 5/219. 7*100 = 15. 24%.Calculated in the same way, net profit would be 21. 8/219. 7*100 = 9. 9%. Liquidity the commonest ratio here would be the Current Ratio, which measures balance of current assets against current liabilities, which for Body Shop yields a ratio of 2. 29:1. Similarly the Quick Ratio, which is a similar calculation but ignoring inventory or stock, would yield a ratio of 0. 83:1. This indicates that the business is not perfectly liquid and would struggle a little to pay off all of its debts (a ratio of 1:1 indicating perfection here) – but this is not seen as a p roblem when the ratio is over 0. . Without any share price data it is impossible to calculate meaningful ratios for stockholders, so we can only note that the dividend paid to shareholder appears high, at ? 11. 50 per share for 1995 (case, p. 554). A major measure for stockholders, however, might be Return on Shareholders equity, as this is the best comparison to the return that the investor might make if he or she had invested their money in a bank Savings account. For Body Shop I calculate this as: Net profit/Total Equity*100 or 21. /110. 6*100 = 19. 7%. However, these numbers by themselves, tell us only that the business is profitable and is a sound going concern, with a decent profit margin and a fair coverage against its debts. For shareholder it is making a very good return on invested amounts of nearly 20% – at a time when savings accounts would maybe have yielded 6%) and is paying a handsome dividend. We might conclude that the business is financially sound, therefore .Moreover, using Franchising as a way to expand internationally is a relatively low cost and low-risk method, according to CKR, as the franchisee pays for the initial setting up of the store; the stock; staff recruitment and training; and advertising and promotion. They also pay – in this case – to Body Shop PLC for the stock they must subsequently sell in their store and the franchise royalties on turnover. This is a very effective business model and allows a strategy of international expansion to take place reasonably quickly and at reasonably low risk. Conclusions General comments about the success of the strategy and body Shop’s financesBased on this evidence, it is possible to state that Body Shop’s financial position is clearly comfortable and they appear to have a sensible strategy for international expansion, which is sustainable, in that they have transferred the majority of risk for their expansion to the franchisee. The group should be able to comfortably expand its foreign operations in this manner, for a number of years. However, at the moment, as I indicated in my answer to question 1, the company at present has a very simple structure and this may have to change as the number of stores, and the number of countries in which they operate, continues to grow.We also know, from my answer to question 2, that in terms of what we might call non-financial measures, Body Shop is highly regarded as an excellent example of an Ethical and Corporately Responsible company. We might therefore conclude that both the financial and non-financial evidence as presented supports the view that B0dy Shop is a well-run business and has a sensible strategy that will allow it to expand. Comments updating Body Shop’s Position Without comparative data, however, it is impossible to make much more of an analysis or draw conclusions from the business.We know that the case ends in 1995/6 and that about ten years after this, the firm was sold t o L’Oreal, a very large, French-based cosmetics producer. This caused some controversy as it was not clear if L’Oreal still tested products on animals (they do) and if so, how such a principled owner as Anita Roddick could sell out to a large corporate that seemed to embody many of the things she had supposedly dedicated both her personal and professional life to fighting. However, the sale went ahead and the business has been part of the French company now for 7 years.Today (2011) it has expanded to 2,748 stores, of which 1,639 (59%) are franchised. This is interesting as it tells us that the proportion of franchised stores has fallen since 1995, even though the number of stores has more than doubled in 16 years. This would indicate a change in strategy, but it is not clear whether this was pre or post the L’Oreal takeover. Finally, in order to look at Body Shop in comparative terms, I prepared data for them and a number of rivals, which is presented below. | | Revenue ? billion| EBITDA ? million| EBITDA %| Net profit? million| Net Profit %| House of Fraser| | 0. 596| 36. 8| 6. 7| 8. 2| 1. 3| Debenhams| | 2. 112| 189. 7| 8. 98| 97. 0| 4. 6| Boots| | 23. 330| 1,444. 0| 6. 17| 221. 0| 0. 9| Marks and Spencer| | 9. 50| 852. 0| 9. 00| 523. 0| 5. 5| Tesco| | 60. 93| 3,810. 0| 6. 25| 2,670. 0| 4. 4| Body Shop| | 1. 01| 144. 4| 14. 2| 41. 2| 4. 1| McDonalds| | 15. 06| 4,670. 6| 31. 0| 3,093. 1| 20. 5| I chose data for several large retailers, like Tesco and M&S who sell at least comparative products to Body Shop, House of Fraser and Debenhams because they sell higher level products and McDonalds as the most obvious franchiser example.Regarding the large retailers, although Body Shop remains a small business, internationally speaking (just about ? 1 billion in turnover), its net profit margins are at the top end of those of its retailing rivals, but fall well short of its main franchise rival. My conclusion which I made at the end of question 2â €™s answer – that I am sure the impact of the ethical stance affects the performance of the company – is thus thrown into some doubt, but it would need much more research into the comparative financial data in order to prove or disprove this view.

Saturday, January 4, 2020

The Impact Of Family Engagement On A Child s Development

Family engagement can be defined as a set of activities that help to include families in a child’s development such as their cognitive development and overall wellness (HHS ED, 2016). There are many ways to go about family engagement, but Joyce Epstein has created six types of involvement that these activities should revolve around to aid family engagement. The six types are: parenting, communicating, volunteering, learning at home, decisions making, and collaborating with the community. Joyce’s framework is a guide for educators to create ways that will allow family engagement in the classroom. This framework helps to create an inclusive environment for all families, which is beneficial for the school, the classroom and the child. After discussing and researching the effects of family engagement on a child, it is clear that having parents involved is overall positive for the child. It is crucial for this involvement to start in the younger years of the child since it has been found that home influences early on effect the development of cognitive, social and emotional needs within a child. Not only is a child’s wellbeing influenced by this involvement, but their academics as well. It has been found that involvement enables children to grow solid social skills, better behavior and higher achievement. It not only allows for academic success while in school, but also later on in the child’s life such as with employment (Scully, Barbour, Roberts-King, 2015). 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