How come the milkshakes are so expensive

The price of milkshakes or any other product is determined by several factors. These include the cost of ingredients, labor, overhead costs, and the desired profit margin. Additionally, companies like McDonald's also consider the perceived value of their products. If customers are willing to pay a higher price for a milkshake because they perceive it as a premium product, McDonald's may price it accordingly. Furthermore, pricing can also be a part of the company's overall strategy. For instance, they might price some items lower (like their soda and coffee products) to attract customers and then try to upsell more expensive items like milkshakes.

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Competitive Strategies

Do you feel trapped to outdo competitors? Better strategies can build a stronger defense against competition and generate higher ROI on your strategic...

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In order for McDonald's to stay in business in so many countries around the world, it uses a "think global, act local" approach. The company's global HQ sets pricing parameters with specific guidelines and tactics for each region. Each region has its own pricing determined by demand, cost, and local competitor offerings in that region. McDonald's will even adopt the products it offers to whatever country it's in. It will serve rice and fried chicken in the Philippines, Beetroot burgers in Australia and poutines in Canada, to name a few. Even still, McDonald's soda and coffee products are some of its most profitable, so its goal is to upsell drinks to customers.

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Create a presentation on McDonalds swot analysis

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To create a SWOT analysis presentation for McDonald's, you would need to identify the company's Strengths, Weaknesses, Opportunities, and Threats.

Strengths could include McDonald's global brand recognition, its efficient fast-food model, and its adaptability to local tastes.

Weaknesses might be the health concerns associated with fast food, the high employee turnover, and the negative environmental impact.

Opportunities could be the growing demand for healthier food options, expansion into emerging markets, and leveraging technology for better customer experience.

Threats could include intense competition in the fast-food industry, changing consumer preferences, and potential regulatory changes.

Remember, a SWOT analysis is a strategic planning tool, and the goal is to identify the key internal and external factors that are important to achieving the company's objectives. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective.

In your presentation, each of these points should be elaborated upon with specific examples and data where possible.

How can McDonald's limit supplier bargaining power?

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McDonald's can limit supplier bargaining power through several strategies:

Firstly, McDonald's can leverage its large scale of operations to negotiate better prices with suppliers. As one of the largest fast-food chains globally, McDonald's has significant buying power, which can be used to negotiate lower prices or better terms.

Secondly, McDonald's can diversify its supplier base. By not relying on a single supplier for a particular product, McDonald's can reduce the risk of being overly dependent on one supplier, thereby reducing their bargaining power.

Thirdly, McDonald's can vertically integrate its supply chain. By owning or controlling its own supply chain, McDonald's can reduce its dependence on external suppliers.

Lastly, McDonald's can invest in long-term contracts with suppliers. These contracts can provide stability for both parties and reduce the likelihood of price fluctuations, thereby limiting the supplier's bargaining power.

Remember, these strategies should be implemented carefully to maintain good relationships with suppliers, as they are crucial for McDonald's operations.

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