Question

read about McDonald's decision to create the brand McCafé. In this study, you will answer two questions. Why did McDonalds enter the market in light of the presence of major firms such as Starbucks and Dunkin' Donuts? Do you think this was a good economic decision? Please incorporate material from Chapter 8 (Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets in your response.

by providing supporting research.

Answer 1

Mc Donald - Mc Cafe

Mc Cafe can be described as the end result of the art of coffee making. As there is a saying that the early bird catches the worm, Mc Donald's decision can be undoubtedly say that the right decision at the right time. As far as an organization is concerned the role of information in the decision making segment is most critical. Timely information and timely presentation and timely implementation is what matters.

At present the Mc Donald's Mc Cafe is the brand which proudly carries the honour of world leader in the related product segment.  

Mc Donald's deplomatic decision to enter into the market with this type of coffee aItnd fastfood during such a comepetitive market environment  is really appreciated. It is understood that Mc Donald conducted an indepth market study before coming into the lime light.They focuses on young consumers and young families who are very much involved in mobile phones and lap tops and have no time for traditional method of cooking which they are not even experienced.  

Another important and interested finding is that they have made more amount of money for the promotional activities like advertisements which helped to reach the appropriate consumers compared to the existing competitiors. It always attempted to succeed to satisfy its targeted consmers with high quality drinks and fast food items along with value for money. Hence it can be considered as an economically viable decision by all means.

In the Competitive market environment convenience of car parking, and playground attracted more targeted consumers to the Mc Cafe, who are busy people who doesn't have time to find out space for car parking and also to manage the unwanted problems created by the children.  

Monopolistic competition is a market situation where similar type of prodctsof other manufacturers exists. Inorder to reach the consumers and through them to access a highest market share a diplomatic approach and strategy is highly essential. Starbcks was one of the leading competitor. Hence Mc Donalds and Starbucks were in a really monopolistically competitive market situation.

The only failure which hapened in the opertations mangement was of its South Indian approach. Being the number one leader of fast food - food chain restaurant, it was KFC which made Mc Donalds behind in theposition of first runner up. The reason behind this big failure has to be taken by the research and development wing or the lack of an efficient research and development wing to provide useful information time to time. As information is a highly perishable item, if it does not receive at the appropriate time the decision making will effect negatively. In this case this Big Mc Donalds failed to collect  timely informations regarding the fact that most of the South Asian Nations does not promote consuming cow meat and related food items. It also failed to collect informations regarding the fast food items which can occupy the highest market share where such type of demographics exists for decades.