Mcdonalds Case Study

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McDonald's Operation in South Africa
A Case Study
Abstract:
The case focuses on the strategies adopted by the world's leading fast food restaurant chain, McDonalds Corporation (McDonald's) in South Africa. McDonald's opened its first restaurant in South Africa in November 1995. Today McDonald's operates 170 restaurants in nine of South Africa's provinces-Gauteng, Western Cape, Eastern Cape, KwaZulu-Natal, Mpumalanga, Free State, Northern Province, North West and Northern Cape.
In March 2011, Shanduka Holdings, owned by Cyril Ramaphosa, acquired control of McDonald's South African operations. The deal gave Ramaphosa exclusive rights for 20 years; including the powers to lease out real estate of its stores. McDonald's has struggled under fierce home-grown competition. Famous Brands, its main rival has more than 1100 outlets operating under names such as Steers, Wimpy and Mugg and Bean.
Since then, McDonald's has been expanding heavily in South Africa providing quality, service, and value to its customers. South Africa has proven to be one of the most successful markets for McDonald's at one point opening a staggering number of 30 restaurants in record time.
This case concludes by addressing challenges faced by the new owners of McDonald's with increasing competition, commodity price fluctuations, and variances with direct costs.

Issues: * Examine some of McDonald's efforts to localize its offerings in South Africa. * Understand McDonald's marketing strategies in South Africa. * Examine how McDonald's tackles competition from leading brands. * Understand the issues and challenges faced by McDonald's South Africa. * Explore future strategies that McDonald's South Africa can adopt.

Contents:

Introduction
Background Note
McDonald's Enters South Africa
Localization
Marketing
Competition
The Road Ahead
Exhibits

Introduction…...

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