Four Top Fast-Food Restaurants’ S.W.O.T in Taiwan Advisor: 黃鎮平 Presenters: Wang, Chin-Chih ( 翁勤智) 96421265 e-mail: mark4939734@yahoo.com.tw Wu, Ding-Ying (吳定穎) 96420723 e-mail: ace_hole5@hotmail.com

Presentation Outline I. Introduction II. Literature Review III. Methodology IV. Results V. Conclusion & Recommendations

Introduction 1.1 Background 1.2 Purpose of study 1.3 Research question 1.4 Significant of study

1.1 Background Fast-food market is one of the big markets which is at least 1 billion dollar expense on fast-food in last 10 years in Taiwan (National Economic Center, 2010). This statistic show that it still have big fast -food market in the future and this is why the writers of this paper choose this topic and went to the depth research.

1.2 Purposes of Study Find out the fast-food restaurants which is suitable in Taiwan. As references for those students who are taking step into fast food market.

1.3 Research Question Analyze the features of those fast-food restaurants. Find out the strengths and opportunities of restaurants have. Suggest how those restaurants avoid weaknesses and threats.

1.4 Significant of Study Once the conclusion was found out from research questions, students may base on this study to choose their suitable store and interesting fast food brands while they set foot in fast food market in the future. Researchers also leave the data for students to settle the questions which this paper had noticed.

II. Literature Review 2.1 Studies on the development of convention and exhibition industry between Taiwan and Mainland China (Yan, 2004) 2.2 An analysis of the marketing success opportunity of packaged software in the auto industry (Shih,2004)

2.1 Studies on the development of convention and exhibition industry between Taiwan and Mainland China Researchers found that S.W.O.T can widely make use of every commercial ways, and Yan uses it in analyzing the development of convention and exhibition industry. On the other hand, it compares the convention holding times and discusses by taking advantage of Dr. Michael Porter’s diamond theory. (Yan, 2004)

2.2 An analysis of the marketing success opportunity of packaged software in the auto industry The author Shih indicated not only packaged software have their own value in transaction activity but also find out value chain by making S.W.O.T. (Shih,2004)

III. Methodology 3.1 S.W.O.T Analysis 3.2 What is S.W.O.T analysis used for 3.3 What is the S.W.O.T analysis ? 3.4 S.W.O.T Matrix

3.1 S.W.O.T Analysis There are diverse tools to indicate the actual situation of the organization: S.W.O.T analysis 5 Competitive forces of Porter Analyze the resources and capacities

3.2 What is S.W.O.T Analysis used for? S.W.O.T analyses offer outcome dates to know the real situation of the enterprise as well as the risk and opportunities available in the market which affect directly to our business.

3.3 Internal Analysis and External Analysis of the Organization Strength Weakness Opportunity Threat

Strength Described the resources and the skills from our company has acquired. What is the difference from the company and what can the company improve.

Weakness Describes the factors in which company have unfavorable position with regard to the competence. In order to make the internal analysis, has to be considered the analysis of resources, of activities and risks.

Opportunity They describe the possible markets, business niches that can be seen by everyone, but if they are not recognized on time that would mean the loss of the competitive advantage.

Threat The describe the factors that put in danger and the survival of the organization , if they are recognized on time they can dodge or they can become opportunities.

3.4 S.W.O.T Matrix S.W.O.T matrix allows us to visualize the present and real situation of the organization.

IV. Result McDonald KFC MOS Burger King

McDonald

Background In 1954 Ray Kroc was surprised by a huge order for 8 multi-mixers from this restaurant, run by brothers Dick and Mac McDonald. They produced a limited menu, concentrating on just a few items—burgers, fries and beverages—which allowed them to focus on quality at every step. Kroc pitched his vision of creating McDonald's restaurants all over the US to the brothers. In 1955 he founded the McDonald's Corporation, and 5 years later bought the exclusive rights to the McDonald's name. By 1958, McDonald's had sold its 100 millionth hamburger.

Strengths McDonald has a standard operation procedure that it can finish order more fluency. It is known by its global brand so that people easily to make choice. McDonald provides a service called “Drive thru”. It makes people get fast food more convenient. Every McDonald branches spend almost 8 months to 1 year market survey so that it can have a long-term management.

Weaknesses It’s limited by its brand because it cannot develop another products. With its high calorie and high fat food make customers reduce the motivation to buy it. McDonald comes first in the fast food market but it does not take care of their external decoration , it needs remodel.

Opportunities The development of new products. Consumers have highly-potential in buying that product. It’s easy to expand by its reputation.

Threats McDonald has many regulations on this industry. McDonald’s profits was divided with many competitors. McDonald has many regulations on this industry. People have more choices on fast-food industry.

KFC

Background For years, Colonel Harland Sanders carried the secret formula for his Kentucky Fried Chicken in his head and the spice mixture in his car. Today, the recipe is locked away in a safe in Louisville, Kentucky. Only a handful of people know that multi-million dollar recipe, and each is obligated to strict confidentiality by contract. Today, the recipe is protected by some pretty elaborate security precautions. One company blends a formulation that represents part of the recipe while another spice company blends the remainder. As a final safeguard, a computer processing system is used to standardize the blending of the products to ensure neither company has the complete recipe.

Strengths KFC uses products combination to appeal consumers and decrease price To increase the advertisements and make consumers have more impressive in their food, on the other hand, KFC is used to connecting fried chicken with their corporation image. In the fast food of fried chicken, they own number one market share.

Weaknesses They do not have enough training system to train employees, because they use short-term way to train the long-term employees. Some kind of food is fried food so that people will consider other product. Their majority fast food is identical like McDonald, including nuggets, roasted burger, and French fries.

Opportunities: Through advertisement images, KFC implants their values to consumers. Students easily accept the products combination with low price.

Threats In nowadays, people value the healthy food than fast food. If KFC has high price in same product, consumers are able to buy another fast food The Avian Influenza is the main reason to influence people’s confidence to buy fried chicken or fried food.

MOS BURGER Mountain, Ocean, Sun

Background MOS is a restaurant with Japanese mood decoration. MOS’ installed base aiming on female who are economic independent. According to statistics from MOS, the female customers have 71% rate. supplying low oil and fat products for consumer who engage is healthy or light diet.

Operation Strategy MOS promise every product are all made after customers ordered. The product “rice burger” is main selling product.

Strength MOS branches stores are get every important transport location in Taiwan--High speed railroad station and airport in Taiwan. Make meal after customers orders. Super emphasize in “fresh” food for consumer. MOS very focuses on food fresh situation and hygiene point, it are not happen in other fast food chain. The east flavor, there are seldom fast-food store provide in this part.

Weakness More and more MOS’ branches were building, but the market didn’t catch up immediately. Although MOS focuses on “fresh” field, it really time consuming.

Opportunities MOS still makes the “healthy” image for consumers. It’s remain have big market for those people who focus healthy. Following Taiwan joined WTO (World Trade Organization), MOS can take step in China market. With the rising of the people eating out, MOS still have increasing potential consumers in the future.

Threats The running cost is a real threat in MOS, high running cost cause higher price in product than other fast-food restaurants(Average NT$ 145 of combo meal). Base on history, China is a country that objects to Japanese. While MOS take step in China, it still need take a long time challenge to get the support.

Background Burger King was first to introduce the dine-in concept, and drive-through food service. This idea was quickly adopted by McDonald’s and others. The most special dish is the “Whooper,” which was invented in 1957, and is also the representative on of Burger King.

Whooper Whooper is a roasted burger, including many contents like vegetables and beef.

Strengths Burger King have their main feature of their roasted flavors. Customers could choose their favorite sauce and ingredient, making a unique hamburger they want.

Weaknesses Only few restaurants at the big city, 30 branches at Taipei but 12 branches are spread at other city in Taiwan. The strategy is too slow to increase the market competition in Taiwan. Though it is the second place fast-food corporation on the world but only 42 branches in Taiwan.

Opportunities Dine-in is a fashion today, and Burger King provides its dining surroundings with retro style by keeping the posters and lights of 60-70s. It will attract people to feel the atmosphere.

Threats The price is the highest problem compare others fast food restaurants. For example, in the Taoyuan airport, the average of combo’s price have over NT$ 150, the combo number 2 and 4 even close to NT$ 190.

V. conclusion & Recommendations 5.1 Strengths 5.2 Opportunities 5.3 Weaknesses 5.4 Threatens

5.1 Strength McDonald has a good system in their industry and they always estimate feasibility before they enter the market. KFC almost takes the Taiwan’s fried chicken market because people are used to eating KFC’s fried chicken than the others fast food. MOS has east flavor food in the fast food industry and researchers thought it’s the most strength in this area. Only Burger King Use’s roasted beef burger in Taiwan and has largest size in hamburger.

5.2 Opportunities McDonald has good popularity so as to expand more easily, and the food was full of potential buyer.   KFC is able to create more business by its combination food, and develop many different products to attract people in any age, gender, and occupation people. MOS make the “healthy” image for consumers. It’s not a slogan, because MOS remain big market for those people who focus on healthy. The opportunities for burger king are enhancing the promotion in big city to attract more customers and profit.

5.3 Weaknesses Compare with others brands, McDonald still haven’t its core product that could impress for customers. The first thing for McDonald is developing a core product. KFC’s weakness which is no other products can compete other’s restaurants except fried chicken. MOS is time consuming for customers. In order to keep fresh and healthy image for customers, it sacrifice the important thing, “The Time.” Burger King only 42 branches in Taiwan, it is hard to compare with the top three fast food restaurants. BK need more promotion for their product.

5.4 Threats McDonald’s biggest weakness is haven’t the core products. In this situation, others fast food restaurants very easily to substitute McDonald’s product. If KFC didn’t develop the other strong products, the other fast food restaurants may substitute the KFC’s main product” fried chicken”. MOS’ threaten is on their high running cost. Although they engage in high quality and fresh food for customers, the high cost will reveal on the price. Weather customers will cost nearly NT$ 200 to buy a meal at the fast food restaurants is a biggest problem for Burger King. BK could serving some low price meal for consumers.

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