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Focuses on the marketing mix of McDonald’s. Highlights how the company combines internationalisation and globalisation elements according to various fast food markets. Using the effect of strategical and tactical models, the case illustrates the effect of McDonald’s on the global environment and how they adapt to local communities. Describes future franchise plans for McDonald’s.

The case illustrates the challenges of managing JVs in emerging markets. specifically, after going through the case, students should be able to: i.Analyze the contexts in which firms need to form JVs and evaluate this need in the context of emerging markets such as India; ii.Understand how multinational corporations can achieve success in emerging markets, specifically the role of strategic (broader than the product) adaptation in success; iii.Evaluate the impact of conflict between partners on the short-term and long-term performance of a JV; and iv.Create alternatives, evaluate each alternative’s pros and cons, and recommend appropriate decisions to address the situation after a JV unravels and the organization is faced with quality and other challenges.

McDonald’s, the global giant in the quick service industry, entered India in 1993 and formed two JVs in 1995 one with Vikram Bakshi (Connaught Plaza Restaurants Ltd or CPRL) to own and operate stores in the northern and eastern zones, and another with Amit Jatia (Hardcastle Restaurants Private Limited or HRPL) to own and operate stores in the western and southern zones. Over the next 12 years, both the JVs made steady progress by opening new stores while also achieving better store-level metrics. Though CPRL was ahead of HRPL in terms of the number of stores and total revenues earned in 2008, the year marked the beginning of a long-running dispute between the two partners in CPRL, Bakshi and McDonald’s. Over the next 11 years, Bakshi and McDonald’s tried to block each other, filed court cases against each other and also exchanged recriminations in media. The feud hurt the performance of CPRL, which fell behind HRPL in terms of growth and other metrics. On May 9, 2019, the feuding partners reached an out-of-court settlement under which McDonald’s would buy out Bakshi’s shares in CPRL, thus making CPRL a subsidiary. Robert Hunghanfoo, who had been appointed head of CPRL after Bakshi’s exit, announced a temporary shutdown of McDonald’s stores to take stock of the current situation. He had to make a number of critical decisions that would impact the company’s performance in the long-term.

MBA, Executive MBA and executive development programs.

Teaching Notes are available for educators only.

CSS 11: Strategy.

Are hedge funds heroes or villains? Management of Blockbuster, Time Warner, Six Flags, Knight-Ridder, and Bally Total Fitness might prefer the “villain” appellation, but Enron, WorldCom, Tyco, and HealthSouth shareholders might view management as the real villains and hedge funds as vehicles to oust incompetent corporate managers before they run companies into the ground or steal them through fraudulent transactions. Could the pressure exerted by activist hedge funds on targeted companies result in increased share prices, management accountability, and better communication with shareholders? Or does it distract management from its primary goal of enhancing long-term shareholder value?

To determine the benefits and disadvantages of activist hedge fund activity from the perspective of corporate management and shareholders; to examine if a hedge fund's suggested corporate restructuring could create greater shareholder value; and to explain the changing roles and perspectives of hedge funds.

During the post‐bubble bust of the 1990s, many eating establishments closed down. Yet McDonald’s was determined to stay. However, management recognised the importance of slashing prices. This case is an opportunity to learn about price elasticity of demand.

The purpose of this paper is to examine the impact of the five dimensions of service quality on customer satisfaction in the UK fast food market and to indicate which factors among the five dimensions have a main role in driving overall customer satisfaction.

Primary data in the form of 147 questionnaire responses were been collected from a variety of quick service fast food restaurants in the UK. Likert seven-point rating scales were used to structure the questionnaire. Data were collected from the customers at two KFC restaurants, two McDonald’s restaurants, and one Burger King Restaurant.

The results of the analysis indicate that tangibles, responsiveness and assurance play the most important role in driving customer satisfaction in the UK fast food industry, followed by reliability and empathy. Results of correlation and regression analysis show that physical attributes (tangible) of service quality are key to customer satisfaction. In a nutshell, the tangibles variable is the most important factor driving customer satisfaction in the context of the UK fast food market.

This research incorporates unique and original insights in relation to the British fast food restaurants market and the results constitute novel findings pertaining to the importance of physical facilities and attributes. This account of the relative importance of service quality dimensions in fast food restaurants in the UK adds value to the field. The findings of this research have contributed to a better understanding of the main factors that influence service quality and customer satisfaction and have implications from a managerial point of view in the highly competitive UK fast food and wider foodservice industry.

The paper aims to develop a technique that considers competition using the analytic hierarchy process (AHP) framework to measure service quality.

The present study adapted the AHP methodology to the measurement of service quality, involving five steps – referred to as “analytical hierarchy process for service quality” (“AHP‐SQ”). Subsequently, the authors demonstrate how the technique can be applied to the fast‐food restaurants.

The AHP‐SQ approach described in this study thus assists management to devise and maintain a relevant, competitive plan for ongoing improvements in service quality. Specifically, such analysis enables the following questions to be addressed: “How does the firm perform in terms of service quality in relation to its competitors?”; “Given the firm's resources, which service initiatives will enhance its service competitiveness?”; “Which service areas require immediate improvement?”; “How should the firm's service improvement be prioritized?”, and “What opportunities exist for service improvement in relation to the competition?”

It would be important to consider the “right” dimensions of service quality that are relevant to the respective industry. It would also be essential to collect responses from customers who have utilized the services of the focal firm as well as its competitors in order to have an accurate opinion.

The framework proposed here allows management to address two main issues pertaining to its competitive advantage: establishing its performance ranking in the marketplace; and identifying the service elements that most require improvement.

The paper develops a cohesive approach to help managers identify which reliability, assurance, tangibles, empathy, responsiveness (RATER) service dimensions require attention to create a sustainable competitive advantage. It offers a “bigger picture” in service‐quality management.

A growing number of US fast‐food franchises are expanding operations to overseas markets. Critical to the success of these service firms is an understanding of the way consumers in foreign markets evaluate their services. Reports the findings of a study that examined and compared the expectations and perceptions of US customers with those of South Korean clients about an international fast‐food chain. Reveals several important differences between the two groups of customers. Discusses the implications of the results for US fast‐food companies in international markets.

Although several anthropologists have reported various cultural differences between East Asians and Americans regarding their usage of fast food based on their ethnographic fieldwork, a quantitative study to test the validity of such findings is necessary for advancement of this research field. The purpose of this study is to quantitatively investigate cultural differences and similarities between American and Japanese college students regarding the usage and meaning of fast food.

A total of 130 Japanese college students (82 female and 48 male) in Miyazaki, Japan and 70 American college students (43 female and 27 male) in Maine, USA answered the survey in order to assess their conceptualization and usage of fast food.

The results indicated that: both Americans and Japanese assumed that fast food was a meal instead of a snack, Japanese and women in general were more likely to visit fast food restaurants with others instead of going alone than Americans and men in general, and Japanese were more likely to share their ordered fast food items with others and stay at fast food restaurants for a longer duration than Americans.

Due to the limited sample size, the results of the present study might be strengthened with further investigation of different samples.

Like qualitative studies conducted before, the results of this quantitative study provided evidence to suggest that there are cultural differences in the meaning and usage of fast food between East Asians and Americans.

There were few quantitative studies on cultural differences in the meaning and usage of fast food between East Asians and Americans. The present study might be the first such study.

Examines how customers react to service extensions, or the use of an established company name to enter new service categories or classes. Reports the findings of an experiment designed to assess the effectiveness of the extensions. Discusses the managerial implications of the results for service extension strategies in the marketplace.