Infleunces Flashcards
Define globalisation - extent of McDonalds
Globalisation - different national economies integrated into one market for easy trade of goods & services
McDonald’s operates over 39,000 restaurants in 119 countries
Define globalisation - extent of McDonalds
Globalisation - different national economies integrated into one market for easy trade of goods & services
McDonald’s operates over 39,000 restaurants in 119 countries
What are three key features of global businesses?
Manufacturing may be located where inputs/labour are cheapest
Finance is controlled from headquarters in a global financial centre
Outputs are distributed, marketed and sold to developed countries
How can a business reduce the risk of changing currencies?
A business can reduce risk by hedging - any strategy used to limit losses from transactions
Eg - derivative contracts (the buyer agrees to purchase a set price at a future point)
What is the implication of the emergence of global consumers for a business?
Products may need changes to suit aspects of the target market in different countries
Owing to differences in language, religion, taste and ethics, it is vital that a business adequately researches its new market
Define technology
the equipment, materials and knowledge that are available to help businesses perform various functions and make profits
What are the considerations a business must undertake before implementing new technology?
The speed of change in that area of technology
The technology that competitors are using
The finances available to purchase technology
How long it will take to introduce the technology
Whether staff will have to be retrained/made redundant
Distinguish between CAD & CAM
Computer-Aided Design - allows architects, engineers and designers to draw and adjust designs using a computer
Computer-Aided Manufacturing - computer technology that directly links the design process to the manufacturing process using computers
What are examples of how McDonald’s has integrated technology into their operations?
Partnering with Uber Eats & Menulog
Online ordering (reduces lead time by 50-100 seconds on 8+ item orders)
Digital menu boards to notify customers that their order is ready
What are three areas of quality expectations?
Durability (how long the product lasts)
Reliability (how long the product functions without needing maintenance)
Fitness for Purpose (how well the product matches the advertising)
McDonald’s - Quality Expectations
In 2011 McDonald’s adjusted its coffee quality standards after admitting that they did not meet customer’s “sophisticated coffee palate” - now guaranteeing barista made
How are Australian businesses influenced by cost-based competition?
In a globalised marketplace, Australian businesses are increasingly influenced by overseas manufacturers who have a cost advantage
Australian businesses which cannot compete on cost must turn to differentiation
How is McDonald’s influenced by cost-based competition?
Net profit margins are very tight in the fast food industry, with McDonald’s, on average, making only 6 cents for every dollar spent at each of its stores
How have recent government policies impacted Australian businesses?
Government policies have given much support to ‘sunrise industries’ and new technology so that businesses can develop new export products and earn economic income
A common way to support innovative businesses is via monetary benefits such as a subsidy or tax concessions
In recent years, the gradual removal of tariffs, quotas and other protection has forced Australian businesses to become more competitive by reducing costs
How have recent government policies impacted McDonalds?
In the US, government policies mandate fast food restaurants to display calorie counts on their menus
In March 2020, the federal government announced restaurants were only allowed takeaway
