Business Research Individual Work 1 Week 8 Essay

Business Research Individual Work 1 Week 8 - Essay Example Lastly, there was the stratum for the 100 taxi drivers in each of the major company who were to be interviewed. Random sampling was used in each of the strata mentioned above for example for choosing the countries, cities, taxi companies and lastly for the taxi drivers. There was no specified order for choosing any of the categories above and hence an assumption that the interviewers chose the kth item in each stratum is used. This sampling method not only simplifies the whole sampling method in the large population as well as reduces the expenses of having to travel to different places or collect unnecessarily large information. The fact that there are diverse drivers also makes the information collected generalizable (Zikmund, Babin, Carr and Griffin, 2012). The population in this case study was the taxi drivers because they were the ones whose information was being sought and who formed the basis for the whole research. However, in order to get the information from the taxi drivers but ensure the information was generalizable as well as was accurate and reliable, it was necessary to work harder. The taxi drivers had to be found in different countries which meant not only choosing the countries but the cities as well. Since the number of interviews to be conducted were many, it was necessary to find a taxi company with large number of drivers than the provided approximate of 100 drivers in each company so that they can be randomly chosen. The sample in the case was the number of the taxi drivers in each major taxi company which is 100 specified in the case study. The 100 taxi drivers were declared the sample because they were the ones who were to participate directly in the interviews for the research being carried out. The sampling method as mentioned above is the stratified sampling technique which is under the probability sampling methods because it is purely based on probability and not on judgment of the

The Orientation Problem Assignment Example | Topics and Well Written Essays - 750 words

The Orientation Problem - Assignment Example Therefore, the task is like to either swim or sink to them as they are given any written information about the roots and idea about the assigned location. They do not get any kind of help from the supervisors rather they are berated for delivery time and routes. The delivery time may be long as they are not aware about the assigned due lack of training. The employees try to learn roots by studying maps on the day off but practically it cannot help to them. Again the letter carriers are shifted from one route to another very frequently but they need time to understand the sequence of delivering articles in a particular root. Frequent shifting increases the overall duties of the entire letter careers as none of them cannot learn a particular rout properly. Answer 2 The supervisors should provide two important types of orientation to the new employees i.e. letter carriers at work sites. First is Organization orientation where the supervisor should make them informed brief about the orga nization where they have joined i.e. objective, history, philosophy, mission, procedures, rules and policies. Second types of orientation are unit based orientation where the supervisor should familiarize the new employees about their job activities and work units. The direct supervisor should provide all necessary information to the employees about a particular facility and its personal, assigned area covered by the routes and other written information like employee handbook and union contact etc. Answer 3 The supervisors should be given on job training where they can consequences of their mistakes which leads to overall loss in terms of output of their employees and the decline in performance level. In this training program the superiors will be informed about the efficient strategies followed by leading private carrier organizations. They will train them by visiting the areas through shorter routes in less time. This would motivate them as it would increase the daily output and o verall performance of their supervising units. Another types training is in house training program where they will be trained about motivation strategies which they need to implement on the new employees to understand their problems and difficulties regarding job activities and to increase the individual as well overall performance of work units. The supervisor will be informed about the benefits of basic motivations to the employees will lead to more output than expectance (Nkomo, Fottler & McAfee, 2010, p.174). Answer 4 The supervisor needs to supplement some important written documents to the new letter carriers. These should be only the employee handbook and union contact no but some other important materials which includes information about different employee benefits, no of holidays in a financial year, some copies of certain legal forms, like IRS withholding forms, brief about accident an emergency procedures, key official terms in the US postal service department, alternativ e copies of life and health insurance options, telephone and location directory of the personnel department and other important city offices. Apart from these, detailed explanation of the overall operation of the US Postal Service and mission of the organizations. In this detailed explanation of organizational operation, the job duties and responsibilities of the letter carrier, work

Managed Healthcare Assignment Example | Topics and Well Written Essays - 250 words - 2

Managed Healthcare - Assignment Example Information technology enables faster acquisition of test results as well as better forms of treatment being administered to the patients. The managed care sector is therefore keen on ensuring that they offer quality services to their patients (Kongstvedt, 2012). There are various factors in the managed care industry. These factors include the government, the employers and the employees as well as the providers. The process of providing managed care is driven by two factors which are the federal government policy and market-driven business practices. Each of this is important when it comes to care provision since the law has to be followed. On the other hand, an organization also has to consider whether it is making profits or not and just how up to standard their equipment is. This will ensure that despite the provision of managed care going on, they make revenue and stay up to

Using current and historical examples discuss the constraints and Essay

Using current and historical examples discuss the constraints and opportunities for alternative forms of work organisation in the globalized world - Essay Example w decades have given prominence to the understanding of work organization in reference to the advent of globalization; international trade being coupled with an increase in mobility of people and capital. The confusion around globalization makes it harder to concretely define the term itself. In many cases, it is the ‘prominent catchphrase for describing the process of international economic integration’ (Scholte, 2005, 16). In the context of the argument presented in this paper, globalization is viewed as an amalgamation of liberalization, universalization and westernization. Hence, it could be defined as the process of removing restrictions on movements between countries, creating a synthesis of cultures and spreading experiences to people in all corners of the world (Scholte, 2005). Work organisation is often linked with capitalism; an economic system which advocates the prominence of private ownership, wage labour and emergence of market forces as the dictating power in setting prices. Karl Marx referred to capitalist societies as an advanced form of social organization that would pave way for the working class to come to power (Whitley, 2000). The ideology revolved around the transformation of human society being a series of evolution that was controlled by the changing dynamics of the world and the requirements of the general population. Where socialist or communist systems once wielded a stronger control over the processes governing work organization, this was replaced by the capitalistic approach. In the latter approach, the barter system of goods exchange was replaced by introducing an item of use-value; initially gold and then paper money. Marx professed that the next change would be the working class coming to power, with its primary driving factor bein g the exploitation of labour or workforce, under which capitalists try to extract value for the owner or the â€Å"bourgeois† society (Whitley, 2000). Further progression of Marx’s work at the turn

International Trade and Comparative Advantage Essay Example for Free

International Trade and Comparative Advantage Essay ? In spite of the strong theoretical case that can be made for free international trade, every country in the world has erected at least some barriers to trade. Trade restrictions are typically undertaken in an effort to protect companies and workers in the home economy from competition by foreign firms. A protectionist policy is one in which a country restricts the importation of goods and services produced in foreign countries. The India, for example, uses protectionist policies to limit the quantity of foreign- produced sugar coming into country. In general, protectionist policies imposed for a particular good always reduce its supply, raise its price, and reduce the equilibrium quantity. Protection often takes the form of an import tax or a limit on the amount that can be imported, but it can also come in the form of voluntary export restrictions and other barriers. Tariff rates on dutiable imports have fallen dramatically over the course of history. A tariff is a tax on imported goods and services. A tariff raises the cost of selling imported goods. It thus shifts the supply curve for goods to the left. The price of the protected good rises and the quantity available to consumers falls. Protectionist policies reduce the quantities of foreign goods and services supplied to the country that imposes the restriction. As a result, such policies shift the supply curve to the left for the good or service whose imports are restricted. In the case shown, the supply curve shifts to S2, the equilibrium price rises to P2, and the equilibrium quantity falls to Q2. One of the most common protectionist measures now in use is the antidumping proceeding. A domestic firm, faced with competition by a foreign competitor, files charges with its government that the foreign firm is dumping, or charging an unfair price. Under rules spelled out in international negotiations that preceded approval of the World Trade Organization, an unfair price was defined as a price below production cost or below the price the foreign firm charges for the same good in its own country. While these definitions may seem straightforward enough, they have proven to be quite troublesome. A quota is a direct restriction on the total quantity of a good or service that may be imported during a specified period. Quotas restrict total supply and therefore increase the domestic price of the good or service on which they are imposed. Quotas generally specify that an exporting countrys share of a domestic market may not exceed a certain limit. In some cases, quotas are set to raise the domestic price to a particular level. A quota restricting the quantity of a particular good imported into an economy shifts the supply curve to the left, as in. It raises price and reduces quantity. An important distinction between quotas and tariffs is that quotas do not increase costs to foreign producers; tariffs do. In the short run, a tariff will reduce the profits of foreign exporters of a good or service. A quota, however, raises price but not costs of production and thus may increase profits. Because the quota imposes a limit on quantity, any profits it creates in other countries will not induce the entry of new firms that ordinarily eliminates profits in perfect competition. Voluntary export restrictions are a form of trade barrier by which foreign firms agree to limit the quantity of goods exported to a particular country. Although such restrictions are called voluntary, they typically are agreed to only after pressure is applied by the country whose industries they protect. A voluntary export restriction works precisely like an ordinary quota. It raises prices for the domestic product and reduces the quantity consumed of the good or service affected by the quota. It can also increase the profits of the firms that agree to the quota because it raises the price they receive for their products. In addition to tariffs and quotas, measures such as safety standards, labeling requirements, pollution controls, and quality restrictions all may have the effect of restricting imports. Many restrictions aimed at protecting consumers in the domestic market create barriers as a purely unintended, and probably desirable, side effect. These standards tend to discourage the import of foreign goods, but their primary purpose appears to be to protect consumers from harmful chemicals, not to restrict trade. But other nontariff barriers seem to serve no purpose other than to keep foreign goods out. The conceptual justification for free trade is one of the oldest arguments in economics; there is no disputing the logic of the argument that free trade increases global production, worldwide consumption, and international efficiency. But critics stress that the argument is a theoretical one. In the real world, they say, there are several arguments that can be made to justify protectionist measures. One argument for trade barriers is that they serve as a kind of buffer to protect fledgling domestic industries. The desire to maintain existing jobs threatened by foreign competition is probably the single most important source of todays protectionist policies. Some industries that at one time had a comparative advantage are no longer among the worlds lowest-cost producers; they struggle to stay afloat. Cost cutting leads to layoffs, and layoffs lead to demands for protection. The model of international trade in perfect competition suggests that trade will threaten some industries. As countries specialize in activities in which they have a comparative advantage, sectors in which they do not have this advantage will shrink. Maintaining those sectors through trade barriers blocks a nation from enjoying the gains possible from free trade. A further difficulty with the use of trade barriers to shore up employment in a particular sector is that it can be an enormously expensive strategy. That shifts the supply curve slightly to the left, raising prices for countries consumers and reducing their consumer surplus. The loss to consumers is the cost per job saved. One reason often given for the perceived need to protect Indian workers against free international trade is that workers must be protected against cheap foreign labor. This is an extension of the job protection argument in the previous section. From a theoretical point of view, of course, if foreign countries can produce a good at lower cost than we can, it is in our collective interest to obtain it from them. But workers counter by saying that the low wages of foreign workers means that foreign workers are exploited. This objection, however, fails to recognize that differences in wage rates generally reflect differences in worker productivity. Further, we have seen that what matters for trade is comparative advantage, not comparative labor costs. When each nation specializes in goods and services in which it has a comparative advantage measured in the amounts of other goods and services given up to produce them then world production, and therefore world consumption, rises. By definition, each nation will have a comparative advantage in something. Exports restrictions are the limitations on the goods and services exported to foreign country by the government. These limitations are imposed to prevent a shortage of goods in the domestic market when it is more profitable to export. As a part of foreign policy for a example as a competent of trade sanctions. Government also promotes exports by making following incentives policies under EXIM policy like Duty Entitlement Passbook (DEPB), Export Promotion Capital Goods, Special Economic Zones (SEZ’s) etc.

Role Of Extra Regional Powers In The Indian Ocean Region

Role Of Extra Regional Powers In The Indian Ocean Region Zone of Peace. There have been numerous attempts to declare IOR as a Zone of Peace dating back to 1971. Various meetings to work out the modalities have been fruitless. Former United States, Secretary of State, Madeline Albright had said that the efforts to make the Indian Ocean Region a Zone of Peace should be disbanded because the region has too many states whose interests are far too varied and the IOR states maintain more important relations with foreign states than within themselves  [1]  . 2. Having seen the strategic relevance of IOR in Chapter 2, let us now analyse the role and interest of a few important extra-regional powers. USA 3. Genesis of Americas Role. The US strategic presence in the Indian Ocean Region grew with the process of decolonisation in IOR. The 1973 Arab-Israel war and the subsequent oil embargo resulted in strong efforts being made ensure oil traffic and price security. In his State of the Union Address on 23 Jan 1980, President Carter asserted that, Any attempt by an outside force to gain control of the Persian Gulf will be regarded as an assault on the vital interests of the USA, and such an assault will be repelled by any means necessary, including military force  [2]  . 4. US Naval Presence. The US Navy maintains a permanent presence of between 15 to 35 warships in the Indian Ocean at any given time. The US Fifth Fleet is based at Bahrain. Besides, the Fifth Fleet, the Sixth Fleet of the USCENTCOM and the Seventh Fleet of the USPACCOM are readily available to augment forces in the Indian Ocean  [3]  . US Pacific and Central Command 5. Interests. US role and policy in the IOR depends on fulfilling the following self-interests:- (a) Energy Security. (b) Economic Security. (c) Restrict Chinas influence in IOR. (d) Support/Basing facilities for War against Terror. (e) Strategic Partnership with India. United Kingdom 6. British Territory. In 1965, the British Indian Ocean Territory (BIOT) was formed out of individual groups of islands in the Western and Central Indian Ocean. In 1966, Diego Garcia was leased to US  [4]  . The British Royal Navy however maintains a permanent presence in the Persian Gulf in the form of multinational forces, UN Peace-keeping duties, and a Naval and Marine detachment at Diego Garcia. 7. Interests. Economically, the region is vital to UK being the source of about 40% of its oil supplies and an important supplier of non-ferrous metal imports. However there is no intention to maintain naval presence in the region though it is militarily supporting US policies in the region  [5]  . France 8. French Indian Ocean Territories. France possesses a large number of strategically located islands in the Western Indian Ocean, the largest of these being Le Reunion and Mayotte islands. France maintains a sizeable force in the IOR, comprising of about 10,000 men and 20 warships. Additionally, Djibouti is a major logistics base for French naval forces deployed from the Atlantic and Mediterranean commands. Owing to the islands, France considers herself to be a regional power in the Indian Ocean, rather than an extra -regional one. Consequently, France is a member of the Indian Ocean Commission (IOC), an organisation for regional cooperation, which includes Mauritius, Seychelles, Madagascar and Comoros. Frances deep involvement in the Indian Ocean is also evident from her defence agreements with Djibouti, Comoros, Saudi Arabia, Qatar, Madagascar and Mauritius  [6]  . Reunion Headquarters of French Forces in the Indian Ocean 9. French Interests. The French EEZ in the Indian Ocean amounts to a approximately 2  ½ million square kilometres, which is more than a quarter of the total French EEZ. Consequently, French naval activity in the waters of the Indian Ocean represents about 30 percent of the total French maritime activity. The French Indian Ocean territories are of strategic significance as they are on the cross roads of major commercial maritime traffic. There is extensive fishing, meteorological and geophysical research activity being undertaken by the French in these regions. France depends on West Asian oil and has trade interests with various littorals  [7]  . Japan 10. Japans proactive role in IOR is pre-requisite to Japan not only for its global status but also vital for its economic interests, especially since the sub-region is the source and transit for its energy lifeline. It is also wary of Chinas domination in South China Sea. 11. JMSDF is a large force which enforces a maritime control zone up to 1000 nm, thereby adequately addressing its security concerns and ensuring the protection of its EEZ assets. However, due to the constraint posed by the Japanese Constitution, it has been unable to assist the sub-region to secure the sea-lines against non- traditional threats. Japans commitment to Southeast Asia has thus been limited to financial and technological assistance for navigational safety and prevention of pollution  [8]  . 12. However, Japan is now actively considering a Constitutional review to break free from the legal handicap, including in terms of collective-security. This would make Japan more militarily assertive and enable it to safeguard its vital security interests in Southeast Asia  [9]  . Japan also recognises Indias strategic location in IOR and understands the vital role that India can play in securing its SLOCs. Russia 13. During Cold war, erstwhile USSR succeeded in gaining access to several bases in the IOR for forward basing and gathering intelligence. Infact, the number of Soviet bases and ships often exceeded those of US. Although it did have a lull period post 1992-1993, she still enjoys diplomatic relations with most of the littorals in IOR. These relations have great potential for cooperation in high technology, oil and gas pipelines. 14. Interests. The Indian Ocean Region is a vital link for Russia because it provides an all weather route for Russia between her Eastern and Western provinces. Besides Russia has security and trading interests in the northern reaches of the Indian Ocean. It also wants to maintain bases in the IOR to be able to influence world opinion in its favour. China 15. Chinese Influences. Over the years China has been widening her influence in the region. Today, China imports 32 percent of its oil needs, 58 % of which comes from Middle East. This figure is expected to double by 2012 with almost 70% oil requirement being met from Middle East  [10]  . Chinese state owned oil corporations are acquiring oil assets in Australia, Indonesia, Central Asia and Africa. The relationship between China and Myanmar (Communication facilities at Coco Islands, Sittwe Naval base), Bangladesh (Modernisation of Chittaong harbour), Sri Lanka (Construction of Hambantota harbour), Maldives (Submarine base) and Pakistan (Deep Sea port at Gwadar) have a strategic intention to strategically encircle India through String of Pearl  [11]  . The establishment of a free trade area with ASEAN countries is another important consideration. 16. Chinese Interests. Chinese interests in the IOR are growing and can be summarised as follows  [12]  :- (a) Containment of India. The efforts to contain India both economically and geopolitically, because it is the only regional nation that can pose a threat to its expansionist tendency in future. (b) Second Strike Capability. To maintain a second strike capability in the Indian Ocean. (c) Counter US Threat. To monitor activities in the Indian Ocean and counter increased US presence in the region. (d) Secured Oil Supply. Chinas energy needs are being fulfilled by import from Persian Gulf. Hence it is significant for China to safeguard these supply lines. Prognosis of Extra-Regional Influences 17. Indian Ocean region is potentially the most volatile and significant area, where the interests of the world powers are merging. All extra-regional powers have concerns over their energy security coming from Persian Gulf and through various choke points. The security of sea lanes against the threat of piracy and maritime terrorism is another threat. Additionally, these powers do not want the others to grow powerful by influencing the littorals in the IOR. And a few, such as France also need to maintain territorial integrity of their interests in IOR. 18. India has a geographically advantageous position in the IOR and finds herself in a position where she has to perform a balancing act to protect her interests in the region, which are vital to her progress and deal with the presence of extra regional powers. End Notes

Mcdonalds Have Used Effective Global Expansion Strategies Commerce Essay

Mcdonalds Have Used Effective Global Expansion Strategies Commerce Essay The McDonalds is one of the most thriving global restaurant chains around the world. McDonalds have used effective global expansion strategies to enter new markets and gain a share of the foreign fast food market. This report presents McDonalds best practices in the global food industry, international growth trends and challenges.   It will also look at the McDonalds Corporation in relation to its major competitors and analyze how the company has responded to its surrounding environment. In closing, report will look at the prospects for McDonalds future and it will be clear that McDonalds will be able to maintain its dominant market position. It will continue to be a model that serves as a benchmark for others in the industry. Overall, the report provides an overlook of how McDonalds creates both customer and brand loyalty for their products and services. This report focuses on McDonalds international success, challenges and strategies. Index 1: Introduction -05 1.1. Background of the report06 1.2. Aims and Objectives:-06 1.3. Methodology06 2. Literature review and Analysis09 2.1. Environmental factors impacting upon McDonalds09 2.2. Strategic analysis of McDonalds16 3. Conclusion -21 4. Recommendations22 5. Reference:23 1. Introduction In the world of globalisation the fast food business is the most dynamic and growth orientated business. And without any doubt McDonald is the leader of all. McDonalds Strategy is continued growth, providing exceptional customer care, remaining an efficient quality producer, offering high value effectively marketing. Now McDonalds is a global scale brand. Since the start of the company in 1973, McDonalds Corporation began spreading domestically throughout the United States thus establishing its brand recognition. Its initial strategy began by advertising directly to the middle and upper class citizens, as can be seen in countries such as India and China. However, with its many bargain deals on several of its food items, McDonalds began to cater to several people belonging to the lower class. The key strategic elements that make McDonalds so successful is adding 700-900 restaurants annually, using new menu items, low price specials, extra value meals to promote frequent customer visi ts, being highly selective in granting franchises, choosing sites convenient to customers, focusing on limited product line consistent quality ,careful attention to store efficiency extensive advertising use of Mc prefix, hiring courteous personnel; paying an equitable wage; providing good training. Originated in Ray Krocs founding principles of Quality, Service, Cleanliness Value, McDonalds management has constantly believed in being a leader in issues that affect their customers. This belief is evident in McDonalds involvement in various community projects regarding education, health care, medical research, and rehabilitation facilities. These activities help the corporation to extend their image beyond fun and entertainment into social responsibility. Background of the report The background of this report is to evaluate environmental factor and key drivers impacting McDonalds success and strategy. The McDonalds restaurants are operated by MacDonalds Corp, franchisees, or affiliates under joint venture agreements. At March 31, 2005 there were 18,306 franchised restaurants (generating 60% of 2004 system wide sales), 8,091 company operated restaurants (27%) and 4,111 affiliated restaurants (13%). In addition to the McDonalds restaurants operating under the same brand name, which is one of the 10 most popular brand names in the world, McDonalds Corp operates other restaurant chains under its Partner Brands which include Boston Market and Chipotle Mexican Grill. The restaurants operating under these brands are approximately 1,000 and represent 3.22% of the stores operated or franchised by the company. (www. Mcdonalds.com) Aim and purpose of the study Aim and purpose of the report is to evaluate and analyse the key drivers that impact MacDonald success and strategy, its swot analysis and examine current strategies. Methodology Pure research is concerned with the expansion, examination proof and improvement of the research methods and techniques and tools that from the body of research methodology. Examples of clean research include just beginning a sampling method which can be applied to a specific situation; developing a methodology to access the force of the procedures. Normally research in the social sciences is applied. In other words the experiments, methods, and research tools which is called the research methodology. Research methodology is useful to collect the information in the different aspects of an issue, problems and situations. Research will carry out mainly, using the qualitative method of research methodology, as the nature of research is based on primary data which will be collected by doing personal interview questionnaires. Quantitative vs. Qualitative Quantitative research is based on the measurement of the quantity. It is applicable to phenomena that can be expressed in term of quantity. The importance of the primary narrative and theoretical conjecture Figure : 3.1 Source: Remenyi, D et al (1998), Doing Research in Business Management An introduction to Process Method pp-125, by Sage Publication. According to Saunders (2000) the research philosophy depends on the way we think about the development of knowledge and this thinking affects the way we do search. Whilst undertaking the research, a clear understanding of research philosophy is essential since it helps the researcher to refine and specify the research methods to be used in a study, that is, to clarify the overall research strategy to be used (Easterby-Smith et al., 1997) 2. Literature review and Analysis This chapter will provide a detailed literature review. The literature review helped frame the initial focus of this study, as well as focus the data analysis Swanson Holton, (1997). Literature reviews help researchers limit the scope of their inquiry as well as act as a benchmark for comparison purposes. According to Creswell (2003) literature reviews provide a framework for establishing the importance of the study. According to Swanson and Holton (1997), Research is a process of a specific type of outcome. Outcomes of research are new knowledge, obtained through an orderly, investigative process. Typically the research process begins with attempting to solve a problem, which is done by asking a question and identifying a solution or, in essence, drawing a conclusion. 2.1 Environmental factors impacting upon McDonalds McDonalds is one of most thriving companies in the world today. With its rapid globalization, the firm has been able to expand and maintain numerable growth; as well as continuing to explore with its growth potential in the coming years. From the creation of the companys development in the United States, to its spread in England, Australia and more recently India and China, the firm has been able to provide a variety of hamburgers and other foods to its consumers. From the Big Mac, to the Maharaja, the companys successive strategies, specifically with heavy research and development have allowed it to fulfill the tastes of locals in every country it operates. Its leaders in all of its major departments have established prices worldwide in all types of currencies, making its foods affordable for customers of all classes. The companys challenges of providing healthier foods to its patrons have contributed to its financial success, thus enabling loyal consumers. In certain countries, suc h as India and China, eating at a McDonalds has become a luxury, primarily among the middle class, who feel a sense of empowerment that they too can afford to eat at quality restaurants. However, as the company continues to settle into its new environments, it will slowly cater to the lower class, as can be seen in the United States. The strategies developed by its experts, thus allows for the company to increase in revenues, quality, and bring about consumer satisfaction. McDonalds SWOT analysis Strengths MacDonalds has a strong global presence with its nearest domestic competitor being only half its size, McDonalds is the market leader in both the domestic and international markets. MacDonalds benefit from cost reduction through economies of scale because of its enormous size and its huge global presence allows it to diversify risk involved with the economic performance of specific countries. In international markets, MacDonalds is well placed to expand and take advantage of long-term economic growth. Weaknesses The food industry is really saturated. As a result of this, MacDonalds has to deal with the prospect of looming market saturation, which could make it difficult to add new outlets. The market is forecast to grow by around 2% per year. Opportunities MacDonalds sold its Donatos Pizzeria back to its founder in 2003 and discontinued Boston market operations outside of the US. The company will instead focus on Chipotle Grill which is the companys most successful non MacDonalds branded chain of restaurants. Also to increase profitability the company has slowed its expansion of McDonalds restaurants so as to refurbish and change the image of current restaurants and adding new features such as Internet access. Threats McDonalds is exposed to changes in the global economy. The companys aggressive international expansion has left it extremely vulnerable to other countries economic slowdown. Foreign currency fluctuation is also another problem global companies like McDonalds. The Fast food industry is becoming an increasingly competitive sector. MacDonalds keeps up with competitors through expensive promotional campaigns which leads to limited margins to gain market share. McDonalds is attempting to differentiate itself, with new formats and new menu items, but other fast food industry are doing the same too. McDonalds SWOT analysis shows us that even though there are many threats against the fast-food industry, McDonalds occupies a relatively strong position in the global marketplace.   According to the five forces model, the strongest competitive force is between rival sellers in the industry.   This SWOT analysis shows the much strength that Mc Donalds employs to keep itself at the top of the fast-food industry.   Although there are various weaknesses, these can all be turned around following the McDonalds Plan to Win, which was implemented with the hiring of Jim Cantalupo.   Obviously all fast-food chains are going to have to combat the new consumer health expectations, but we feel that under Cantalupos leadership, McDonalds has a strong enough consumer base to grow in the upcoming years.   The financial analysis shows certain flaws in McDonalds finances, but these are largely due to the expansionary policy in place in the company.   SWOT Analysis and Grand Strategies Source:  P. Wright, C.D. Pringle, and M.J. Kroll,  Strategic Management,  2nd ed. (Boston: Allyn and Bacon, 1994), Competitive Forces The quick-service sandwich industry faces competitive pressures from a number of forces.   The major competitive threats originate from competing sellers in the industry as well as firms in other industries that offer substitute products.   McDonalds main competitors within the quick-service sandwich industry are continually deriving new strategies through offensive and defensive tactics in order to gain customers and market share.   In 1989, Wendys implemented the 99 cent value menu as an offensive strategy to gain customers looking for a quality product at a value price.   In response, McDonalds and Burger King took a defensive approach and also instituted a value menu in their respective stores so that they wouldnt lose market share and customers to Wendys.   Firms in the quick-service sandwich industry are constantly jockeying for better market position through offensive strategies and in response to these strategies, other firms will take a defensive approach to guard against that offensive move made by the rival firm. Forces in the Industry Analysis Source: Based on M.E. Porter,  Competitive Strategy: Techniques for Analyzing Industries and Competitors Substitute Products In addition to competition from rival sellers in the industry, sandwich firms also face intense competitive pressure from firms in other industries selling substitute products.   The substitute products for the fast-food industry are probably some of the most diverse in the world.   These substitute products may include products purchased from the local grocery store, food from sit-down restaurants, or delivery foods such as pizza.   The primary issue with these substitute products is that they are readily available to the customer and the customer tends to view them as being comparable or better in terms of the quality of fast-food products.   Another issue that faces the fast-food industry is the availability of products that cater to the health-conscious lifestyle.   The majority of the public tends to view fast-food restaurants as primarily serving foods that are high in fat content and unhealthy and as a result they are likely to look elsewhere for a healthy alternativ e.   In response to the product offerings, buyers also exercise a great deal of bargaining ability through their purchasing power.   While fast-food products may not always be associated with health and quality, fast-food restaurants to possess a major advantage over firms selling substitute products through the price of their products and the quick, convenient service.   New Entrants The threat of potential new entrants and the bargaining power of suppliers is not a significant competitive force in the fast-food industry.   Occasionally, new entrants will come along and compete with firms in the fast-food industry and offer substitute products.   However, in order to compete on a large scale, it will require a great deal of capital to invest in real estate and build physical restaurant locations.   In addition, the market is already so saturated that the new competitor might find it difficult to establish a customer base and become profitable.   Suppliers in the fast-food industry do not have substantial bargaining power due to the fact that firms in the fast-food business tend to purchase their materials from various outlets.   One company might purchase their meat supplies from a couple different meat manufacturers, then purchase their dairy needs from a number of different dairy companies, and also purchase their bakery products from a variety of sou rces.   Since the fast-food firms divide their purchases among a diverse array of suppliers, the suppliers tend to have little or no bargaining power or leverage since there are multiple suppliers for the same products.   Driving Forces   There are a number of driving forces which have molded the current state of the fast-food industry.   In the beginning, fast-food companies typically focused on being the low-cost provider and sought to expand into as many markets as possible.   As these national brands have grown, the markets they are competing in have become overly saturated with restaurant options.   As a result, the fast-food industry has begun to focus on the needs of the customer.   The buyer has a great deal of leveraging power due to the fact that if they are dissatisfied with one brand they can easily switch or purchase from an alternate brand with little or no monetary repercussions.   The fast-food firms have implemented strategies to improve the quality of customer service and the cleanliness of the restaurant locations in order to please their customers in hopes that they will become a repeat customer.   Health Factor All fast-food hamburger chains, McDonalds included, are forced to respond to the shift in customer preferences from high-calorie burger and fries to healthier items such a deli sandwiches and baked potatoes. All the chains are expected to be struggling for several years to come to meet new consumer health expectations without compromising the original menu items. McDonalds customer service and opposing points    As years have progress many issues have arisen for McDonalds but the greatest is probably its poor customer service. A customer service index done in 2003 found that McDonalds has the lowest the customer service ranking in the fast food industry and is ranked even lower on customer service than the IRS. One reason for this is a high employee turnover rate. McDonalds has the highest employee turnover rate among its competitors. Another contributing aspect to the poor customer service is slow service at the drive-through window. McDonalds currently ranks fifth in speed at the drive-through window and 19th in accuracy. If you compare its speed and accuracy to its competitors and keep in mind that McDonalds generates 60 percent of its revenue from its drive-through and assume it is losing one percent of revenue for every six seconds that its behind, than McDonalds is loosing approximately 97,000 dollars annually. While McDonalds feels positive about its newly implemented changes the critics are rather skeptical. It was stated that long-term they believe that it will be tough to sustain growth and margin expansion. Specific concerns include McDonalds ability to maintain it current level of product innovation and competitors ability to copy those ideas. The critics even went as far to question if McDonalds recent improvement was more of a reflection of the market and the dollar rather than its newly implemented strategy. In response, McDonalds officials stated that they will need to deliver on their stated goal of sustaining increases in sales and operating income. Following with the most significant question of weather or not the new changes will sufficiently provide McDonalds with core competencies necessary to build a sustainable competitive advantage in the global fast-food industry. 2.2 Strategic analysis of McDonalds McDonalds Global strategy McDonalds already holds a strong position in the global economy.   It is recommendation that they decrease expansion in the almost saturated domestic markets, and continue their expansion in foreign countries, such as Asia, and the Pacific.   Companies generally expand into foreign markets in an attempt to gain new customers and capitalize on core competencies.   McDonalds core competency is that they are able to produce and sell quick and cheap food to a large number of customers.   With this concept, they have been able to expand into other countries, and they currently are the largest global fast-food chain in the world.   Since they already hold this lucrative position, they should continue expansion in an effort to drive out competition.   One strong recommendation would be for McDonalds to expand into emerging markets.   Since they focus on low-priced food, it is likely that many could afford their products, and therefore, McDonalds could expand into a stronger co mpany. Politically Sensitive Strategy One of the companys major concerns was to develop ways to avoid political confrontation with the Indian government. The other major concern was to be careful of the religious sensitive in India. Almost 80% of Indians do not eat beef, and over 150 million Indian Muslims do not eat pork, therefore, instead of supplying the normal Big Mac, which consists of beef, the company developed the Maharaja Mac that is made of two lamb patties. Other foods were also added to the non-standardized menu including McAloo Tiki Burger, and other common Indian dishes. Emphasis on Local Management Throughout the world, McDonalds prides itself in hiring locals, specifically management in order to gain acceptance into the country by its citizens. The emphasis is based on the think global, act local theme of the company. For instance, the company decided to establish two joint ventures with two local entrepreneurs in New Delhi, who were selected to manage the fast food restaurant. This strategic move allowed the company to gain easy access to the bureaucracy associated with the countrys government. Employment Opportunity Foreign enterprises are often reluctant to hire locals in their companies, specifically at the managerial positions, however, McDonalds research concluded that in order to survive the brutal Indian government, it would have to hire locals as cashiers, cooks, managers, etc., as well as provide jobs for the countrys agricultural workforce. In fact, McDonalds outsources its products to several Indian companies throughout India. This provides evidence to the Indian government that McDonalds is not only customer friendly, but also employee friendly. Environmental Friendliness In order to achieve a positive reputation, as well as follow local and national policies of a country, McDonalds tries to establish services that are environmentally friendly. India is an example where the company provides financial contributions and sponsors several community related activities in order to promote environmental protection. This is primarily seen within schools; thus indicating that the company also supports local schools. Corporate Citizenship In order to better its reputation, this multinational firm gives back to the local citizens in all countries it operates. For example, the company provides several financial donations to local organizations. This is one way to encourage consumers to eat at its restaurants, as it is an incentive that is used to spread the name. Diversification One strategy that McDonalds as well as many of the other fast-food chains have embraced is that of diversification.   We feel that McDonalds should continue this trend.   With the large health-craze hitting the United States, many restaurants have to change to healthier, higher quality menu items.   The fast-food industry is no exception.   Healthier burgers, low-fat salads are all popping up on menus across the country.   We feel McDonalds should continue its diversification and incorporate more healthy foods, including low-carb burgers and fries.   If McDonalds is able to stay ahead of the competition in this aspect, they will have a strong competitive advantage over such companies as Wendys and Burger King.   Defend strategy The purpose of this strategy is to make it harder for challengers to gain ground and for new firms to enter. A fortify-and-defend strategy works well with firms that have already achieved industry dominance. Since McDonalds is already the industry leader in the fast-food market, they can opt for a number of tactics using this strategy to maintain their industry position. They can continue their expansion tactics by continuing to open more stores around the world. This expansion would help defend against and help to discourage smaller companies from increasing their market share. In addition, they can also elect to invest capital in RD to aid in developing new technologies for their operations. These new technologies will help them remain cost-competitive and technologically progressive. Recommended strategy for McDonalds The main goal of the stay-on-the-offensive strategy is to be a proactive market leader. The principle of this strategy is to continually stay one step ahead of your competitors and force them to play catch up. McDonalds is already the industry leader in the fast-food industry with a market share of 33 percent compared with the number two chain in the industry, Burger King at 13 percent market share. They can stay out front by implementing technological improvements in their restaurants to enhance the production methods or to improve the ordering process of the customer. In addition, they can also introduce new or better product offerings to satisfy the needs of their customers. The best approach that McDonalds can take through this strategy is to improve their customer service. McDonalds customer service ranking was the lowest in the fast-food industry and was even lower than the Internal Revenue Service. To improve upon this substandard attribute, McDonalds should revamp their train ing process for newly hired employees and introduce new educational modules for currently employed personnel. Training and learning McDonalds should put more emphasis on training of its employees as part of their strategy of growth. Training and learning is the main tools for HR to prepear management for any upcoming change in the organization. According to Beardwell and Claydon (2007) the role of formal training in organisation today appears to have declined significantly. Firstly, the speed with which skills requirements change in some sectors means the formal time consuming, to deliver efficiently as required. Secondly, the growing recognition of Human resource development as a tool to achieve competitive advantage has raised awareness of the need of the embrace learning as a central strategic concern and to be part of the culture of the organisation. Employees, employers, managers, leaders, government, European and international bodies, customers and Human resource development specialist consultants all of them needs more training for the future. Equal opportunity Equal opportunity, means changing workplace behaviour in the areas of discrimination, sexual harassment and affirmative action to ensure that all employees have equal access to fulfilling and productive working lives. Wright,N (2003) 3. Conclusion In analyzing McDonalds, the strengths, weaknesses, opportunities, and threats were inevitably explored to better understand the current situation. This SWOT analysis shows us that although there are numerous threats against the fast-food industry, McDonalds occupies a relatively strong position in the global marketplace.   According to the five forces model, the strongest competitive force is between rival sellers in the industry.   This SWOT analysis shows the much strength that Mc Donalds employs to keep itself at the top of the fast-food industry.   Although there are various weaknesses, these can all be turned around following the McDonalds Plan to Win, which was implemented with the hiring of Jim Cantalupo.   McDonalds has adopted many strategic changes during its business cycle.  McDonalds business will continue to thrive as long as the core competencies are recognized and never forgotten.   With every issue and challenge the corporation faces, it has the opportunity to improve itself and prove itself to the public, shareholders, and stakeholders.   With every battle conquered, another one rises and with a secure mission and vision in mind, the corporation should never stray too far from the roots and success of the company. The recommended strategy will strengthen this plan because it is doing what McDonalds does best and more so.   Despite the downturn the company has seen, the general impression we receive from McDonalds financial situation is that the company is slowly climbing out of a low period and making a turnaround.  Ã‚   We must never forget the key success factors of the business which really makes the business for what it is today, including franchises that off er quick, efficient service in a clean friendly environment. 4. Recommendations Team building Team building is crucial for any individual McDonalds store for improvement of their sales figure and as a whole for the organization. If the organizations have the proper team than they can face all sorts of challenges, they can achieve the competitive advantage, and organizations can maximize their profit. Sustainable growth Managers and employees of McDonalds need to put more effort about the sustainable growth. In this constant changing world of organizational dynamic only sustainable companies will survive. McDonalds should have concern more on their product and the way they produce it , and environmental issues. Total quality management Total quality management is the key of the success in the development path. If everything is done by as they planned, than they will the quality in every field of the organisation. The reason behind is, why researcher is emphasizing on these studies, because after covering these factors managers, employees and organisations will get the continuous development path.