McDonald’s

ASSIGEMENT 1 : GLOBAL FORTUNE 4 ESG 6 | ASSIGEMENT 1 : GLOBAL FORTUNE |

Officially brought in France in 1979, McDonald’s was founded on May 15th 1940 in California as a "Speedee Service System" to become the McDonald’s that we know today on May 4th 1961. It has over 32 000 locations worldwide. France was the nineth country to actually open a McDonald’s restaurant.

McDonald’s worldwide revenue for the year 2010 was $24 billion which puts the company amongst Fortune’s global 500 (ranking at number 378). Let’s analyze the company’s behavior on the French market both externally and internally.

I) External analysis
Potential entrants:

Weak KFC is in development in France

Porter’s forces

Industry Competitors:

Quick, KFC, sandwich shop,
Pizza hut, Domino’s Pizza …
Suppliers:

Food industry,
Multinational company
Buyers:

unfaithful

Substitutes:

Sandwich, snacks,
Traditional food, eating at home

About potential entrants, there are no real threats because of the difficulty of to create a new big fast food company, such as financial capacity. Thus the risk can be considerate as weak event if KFC can be viewed, as a new competitor through is development in France.
Speaking about the industry competitors, the competition is very strong in France as well as in the world. On the fast food market, Quick and KFC are the biggest competitors but it is also possible to consider the pizza market with pizza hut for example and the sandwich shop market such as real competitors. Moreover, its new development with Mc café allows to say that Starbucks and bars are new competitors.
On the subject of substitutes, there is only a medium threat. Sandwiches, snacks, home deliveries such as sushi shop, snack and traditional lunch can be considered as substitutes. Moreover, French people have the habit to cook at home but it cannot