McDonalds in South Africa

MCDONALDS ASSIGNMENTS

• Introduction : McDonalds was started in Illinois, USA by Mr A Krog, who had a vision for a value added, family orientated, clean fast-food outlet providing efficient and friendly service. Anywhere in the world one goes, one can expect the same high quality food with menus that are easily recognisable and trusted, whether you are in Thailand, London, Australia or Namibia. MCDONALDS OLD FORD ROAD, DURBAN is a sit-in and drive-thru fast food outlet which is situated in a central, easy access location. They have been open since 1998 and have been operating successfully and profitably ever since. It has seating for more than 100 customers and provides a choice of seating either indoors or outdoors. It also has a separate sound-proof section provided for private hire which is suitable for birthday parties for children.

• Strengths of Outlet:

1. Desirable Location: The location for MCDONALDS OLD FORD ROAD, DURBAN was chosen because of the busy intersections that surrounds it and because of the fact that there is no other fast food outlet around or near to it. The Drive-thru convenience is responsible for approximately 70% of sales. It has easy access for people going to and from the beach as well as the proximity most businesses in and around Durban central, Durban Exhibition Centre and major hotels catering to local and foreign tourists.

2. Quality, Value for money fast food: The food offered is high quality with menus that are constantly evolving to better suit the South African Market. In response to the more health conscience South African mentality, McDonalds South Africa are constantly introducing new items to the menu, such as salads and chicken dishes.

3. Family friendly: McDonalds has is a special relationship with children and are in the business of entertaining children, and giving moms and dads a break. There is an increase in the number of working mothers, who are very aware of the need for good nutrition for their family. McDonalds offer well balanced meals for the whole family: for the fun loving children (Happy meals), health conscience mums (Salads) and very hungry dads (Supersize meals).

4. Trained, Efficient Staff: The training provided to the management and staff of McDonalds franchises is a huge asset to the business in general and the South African economy as a whole. Employees are trained to be customer driven, to keep themselves and the business premises meticulously clean at all times and to satisfy customers’ needs by being friendly, helpful, well-spoken and efficient. Anywhere in the world you go, the staff of McDonalds are always as helpful and well trained as their counterparts.

5. Brand Recognition: McDonalds outstanding brand recognition, experienced management; high-quality food, site development expertise, advanced operational systems and unique global infrastructure position them to capitalize on global opportunities. The big M is instantly recognised by everyone, both young and old and Ronald the Clown is a firm favourite with their core target market, children.

Question 2

Five macro environmental trends that impact on McDonalds

• Government and Legal Dimension

This deals with the laws of the country the business is situated in and how marketing strategists have to plan and develop a strategy whilst continually bearing these laws in mind and abiding by them. The fast food industry is governed by legislation stipulating the cleanliness and hygiene of the food preparation areas, the provision of separate smoking areas, no drinking on premises (unless a liquor license has been issued). The is various other legislation relating to labour law and safety.

Influence/Impact :

Just over a decade ago, in South Africa, when the Apartheid system was in place, international companies did not invest in this country to force the then government to change their policy. McDonalds did not exist in this county. It was only when the Apartheid system was abolished did they invest here.

The business premises are subject to regular inspections by health authorities. McDonalds have to adhere to public safety regulations by providing more than one exit in case of any emergencies, for example fire. There also have to be a stipulated number of fire extinguishers that are easily visible. There has to be a fully stocked first-aid kit that is also easily visible in case of injuries.

Workers of McDonalds must be fully versed with the Shops and Offices Act, which stipulates their rights in terms of hours worked, leave due,