YUM! Business Case Study

Download or read book YUM! Business Case Study written by Nihat Canak and published by GRIN Verlag. This book was released on 2006-11-28 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research Paper (undergraduate) from the year 2006 in the subject Business economics - Marketing, Corporate Communication, CRM, Market Research, Social Media, grade: 1.0, Western Carolina University, course: Marketing Management & Mature Consumers, 8 entries in the bibliography, language: English, abstract: The American fast food preparation and presentation model created a strong cultural and collective identity. The model has provided the consumers with uniformity and repeated experience. This phenomenon is called the `McDonaldisation' of the US society that has embraced the all American meal throughout the globe. People want quick and convenient meals; they do not want to spend a lot of time preparing meals, traveling to pick up meals, or waiting for meals in restaurants. As a result, consumers rely on fast food. Knowing this, fast food providers are coming up with new ways to market their products that save time for consumers. For example, McDonald's locates its outlets inside Wal-Mart stores across the United States, and also in Chevron and Amoco service stations. These arrangements are becoming more common in the fast food industry. Consumers can combine meal-time with time engaged in other activities, such as shopping, work, or travel. This idea shapes the growth strategies of most firms in the industry. The most significant driving force is the inexorable movement towards bigness and concentration of power in the hands of fewer and fewer firms at almost every point in the fast food sector. Other driving forces can be seen in the changing structure of American families as more women entered the work force, increasing globalization of the food system, the environmental movement and equity concerns. On the other hand, women are the driving force behind the fast food industry into another direction. Women's attitude towards health and food content has put pressure on the fast food industry to alter their product mix. However, the great success of the traditional fast food outlet is potentially beginning to lose its pull factor. It is believed that the actual fast food sector is in transition from a traditional selling of burgers to the pre-eminent arrival of a fast casual food industry. The driving force for change has been a number of issues that raise questions to scrutinise the fast food companies, such as the link of regular fast food ingestion to obesity, chains showing operating loss for the first time in their history and the forced closure of outlets. This is reflected on McDonald's facing a lawsuit from an overweight teenager who felt it was the company to blame for her condition. The food giant has also closed down outlets worldwide.