Homework: Analysis of McDonald’s and Starbucks
McDonald’s and Starbucks have completely different values when it comes to their businesses. Typically, McDonald’s can be seen as focused on their speed of service, low cost/prices, and generally happy attitude. On the other hand, Starbucks can be seen as a laid-back, relaxed, good experience for the customer system.
On one side of the spectrum, McDonald’s is more cost-oriented. They strive on having low costs monetarily, and passing that onto the consumer. First, they reduce the cost monetarily, but making the price low to the consumer. Next, they cut the temporal cost but getting the speed of service down and making the experience as quick as possibly; with this, it also reduces the behavioral cost by not requiring so much physical effort. By doing all of these things, it lowers the benefits of eating there. People aren’t necessarily “proud” to eat at McDonald’s; it’s kind of something you do, but don’t brag about.
With Starbucks, it’s a totally different side. Customers go there to order premium coffee. Starbucks is more driven with the benefits rather than the costs dimension. People who get their coffee at Starbucks are proud to show it off and drink it in public, which is the personal benefit of drinking it. Starbucks also increases the social benefit by engaging the customer, rather than trying to “push them through.” The experiential benefit of Starbucks is also high; customers go into the store and the mood is set by the surroundings, which is typically calm and meloow, making the customers feel good and welcomed. Again, the two companies have totally opposite values when it comes to operating, but that doesn’t mean one is right or wrong. It’s just what works for them.
...The Coffee Wars: Starbucks (SBUX) vs. McDonald's (MCD)
Posted Feb 12th 2008 2:15PM by Steven HalpernSteven Halpern RSS Feed
Filed under: Starbucks (SBUX), Newsletters, McDonald's (MCD), Stocks to Buy
"I am quite confident that business students in the future will be reading case studies on the battle between Starbucks (NASDAQ: SBUX) and McDonald's (NYSE: MCD)," says value investor Charles Mizrahi.
In his Hidden Values Alert, the advisor explains, "This is a classic case of a castle with a wide moat coming under attack because the attacker believes it has caught the duke napping." Here, Mizrahi shares a fascinating over the "Coffee War."
"As background, in 1982, Starbucks had five retail stores and was selling coffee to restaurants in Seattle, Washington. It was during that year that Howard Schultz signed on to manage retail sales and marketing. After traveling to Italy, he convinced the owners of Starbucks to open a coffee bar.
"It was a huge success. One year after going public in 1992, Starbucks had 275 locations. Today, Starbucks is the leading retailer and roaster of coffee in the world. There are nearly 7,000 Starbucks stores in the U.S. and almost 1,800 in international markets.
"Schultz's genius is that he took a commodity (a cup of coffee), made it a brand, and was able...
...McDonald's Targets Starbucks
Topic: The fast-food company expects to add $1 billion in sales by offering specialty coffee drinks in all its U.S. restaurants. Transcript of radio broadcast. Source: VOA
1. Listen to the audio and complete
Principio del formulario
This is the VOA Special English Economics Report.
McDonald's, the fast-food company, is heating up competition with theStarbucks Coffee Company. McDonald's plans to put bars in its fourteen thousand restaurants in the United States. Fewer than a thousand now offer specialty coffee drinks like lattes and cappuccinos.
Just like Starbucks, each coffee bar would have its own barista, the person who makes and serves the . Company documents reported by the Wall Street Journal said the plan would add one billion dollars a year in sales.
McDonald's has enjoyed several years of strong growth. The company had almost twenty-two billion dollars in sales in two thousand six.
Still, the move to compete against Starbucks carries some risk. Some experts say it could slow down at McDonald's restaurants. And some people who are happy with McDonald's the way it is now may not like the changes.
As early as two thousand one the company tested McCafes in the United States to sell specialty coffee at McDonald's...
Convenience or Health
University Composition and Communication 1
August, 23, 2012
The amount of obesity in America has grown rapidly in the last 30 years, a time period that has watched not only the fast food industry grow, but also the amount of Americans gaining weight, are growing with them. The population as a whole has become over ran with the pace of today’s society, because of the fact that so many households are requiring the women to work to make ends meet. With the economy in such a low state, and the people are in such a hurry, most families resort to fast food as a quick fix for their meals without a second thought of the effects it has on the health. The growth of Americans relying on fast food for their meals is lacking knowledge of the health risks considering the lack of nutrition.
The percentages of America’s children that are overweight and obese are astonishing as well as scary. Reports show that 14% of children are overweight, and 60% of...
...For years, McDonald’s and Burger King (BK) have been the world’s two largest and most successful fast food chains. Both have battled out all these years over their operational differences which form the core of their corporate culture. The “Doing It All For You” (McDonald’s) vs. “Having It Your Way” (BK’s) stems from their respective production methods. McDonald’s “Made to Stock” vs. BK’s “Made to Order” also originate from the differences in their respective processes.
Exhibits 1 and 2 show the Process Flow Diagrams (PFDs) of McDonald’s and BK respectively. Exhibit 3 provides a detailed comparative analysis of the PFDs of these two fast food chains. The main operational difference between McDonald’s and BK is that McDonald’s cooks their hamburgers on grills using a “batch process” (a batch of upto 12 patties/grill) with human intervention to turn, sear, and pull. BK uses the machine based – Continuous Chain Broiler assembly process (8 burgers/meat chain) for the production of their burgers – similar to an assembly line in a manufacturing process thus, requiring no human intervention. For a “made to stock” process, it requires burgers in bulk and hence the batch process in McDonald’s. Whereas, for a “made to order” process, it requires an assembly chain process where meat patties are placed at one end and after 80 seconds they come out the other...
...(Images provided by queenscrap.blogspot.com and bbs.hoopchina.com)
“Hey, let’s get some McDonald’s? We hear this all too often. Before you say “Yes” to this question, you need to think about how the food compares in nutrition and will the nutrition of fast food have effects in the future.
Let’s look at fast food restaurants. When you hear someone say, “Let’s go to McDonalds or Burger King,” what comes to mind would you consider the Big Mac or a Whopper? Think of how many calories that goes into each one. When you look at the Big Mac your calorie count is, “540 with 29 grams of fat and 45 grams of carbohydrates.” The Whopper shows, “670 calories, 39 grams of fat and 51 grams of carbohydrates.”(associatedcontent.com) So which is healthier, McDonald’s wins this one. Less calories in the Big Mac than the Whopper even though Burger King promotes flame broil is better and much healthier.
When walking in the restaurants of McDonald’s you get the since of not welcomed until it is your turn to order. Looking around the place, it is clean yet not many people stay to eat there. One or two people will sit and chat for a while before leaving and making their order. One thing is true about McDonald’s, if they mess up your order while you are still there, they will make it correctly and bring it to your table nice and hot no matter what it was you ordered. Now for Burger King, when you enter their door the cashier...
...collection, and sharing changes. It is very crucial for a firm to focus and organize its enterprises to provide the greatest customer satisfaction possible. (Schneider & Valacich, 2012)
Starbucks and Green Mountain Coffee have several similar features on their websites.
Both companies have products-coffee, teas, and accessories- online available for purchase. Once the customer purchases these products, the customer is able to access their account online, check the status of their transaction, as well as access account information and details. If there is a problem with the product or service an individual received, both websites offer customer service via e-mail or through a toll-free hotline.("Starbucks coffee company," 2011) ("Green mountain coffee," 2004) Having such great customer service available allows customers to feel secure with their purchases, and in the long-run can result in customer loyalty.
Starbucks as well as Green Mountain Coffee both provide great marketing concepts by allowing customers to sign up for their newsletters via e-mail to receive promotions or discounts available. Similarly, customers are able to access and follow both companies through social media websites such as Facebook, Twitter, and Google Plus. ("Starbucks coffee company," 2011) ("Green mountain coffee," 2004) Through these social media websites, the companies are able to appeal more to their...
...in the UK: Comparison of the Marketing
Strategies of Starbucks and Costa
Ahmed Fayih G ALOTAIBI
Table of Contents
1.0 Introduction 3
1.1 Aims & Objectives 3
2.0 Literature Review 4
2.1 SWOT Analysis 4
2.1.1 Strength 4
2.1.2 Weaknesses 4
2.1.3 Opportunities 5
2.1.4 Threats 5
2.2 4 P’s of Marketing 5
2.2.1 Product 5
2.2.2 Price 5
2.2.3 Promotion 5
2.2.4 Place 5
3.0 Research Question 6
4.0 Bibliography 6
Costa andStarbucks represent two prominent brands in UK coffee market. UK consumers are embracing the growing coffee culture and show their love of coffee, enabling the sector to outperform the wider retail market, which in contrast, has grown at a slower pace of 1 – 2 % during 4-5 years (hospitality and catering news, 2013). Part of this consumer segment is targeted by Costa with its increased number of restaurants across the UK and part of it is targeted by Starbucks across the UK on the basis of quality provision of products and services through its restaurants which although are lesser in number than Costa but still are performing better in terms of revenue generation. This is discussed further below in the literature review section.
Besides, Costa is focusing on targeting the market on the basis of speedy provision of services. In this regard it acquired Coffee Nation and established kiosks whereby customers were given services on a speedy basis....
...Business Models: Walmart vs. Starbucks
Sustainability has become a great topic of interest in many arenas. Particularly, leading organizations are recognizing sustainability needs to be an essential aspect of their long term strategies. With this recognition, better business practices are being sought by investors as well as sustainability is becoming a driving force for better efficiencies and innovation. Two organizations, Wal-Mart and Starbucks, have both took on sustainability as long term initiatives to address their customer needs and affect how their suppliers operate.
With both Walmart and Starbucks being major players in their respective industries, both have proven themselves to be leaders. In Walmart’s unofficial mission statement they drive home the point they are focused on “saving people money so they can live better” (Walmart, 2012). It seems on a high level Walmart is solely focused on price points/profits while some may argue Starbucks is highly focused on quality. Taking Starbuck’s official mission statement into consideration, “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” one could conclude they are more focused on the individual sale/individual (Starbucks, 2012). It presents an interesting dynamic as some in today’s marketplace would argue price...