Mcdonalds and wendys innovation paper
Introduction
We have chosen McDonald’s and Wendy’s as the organizations for the research project because they are both widely recognized by consumers. Because both of the organizations we have chosen are in the fast food industry, we expect to find many similarities between McDonald’s and Wendy’s. We believe McDonald’s will prove to be more innovative because of its use of the experiential approach as opposed to Wendy’s compression approach. McDonald’s has also proved to be more efficient at sustaining results driven change and implementing organizational development. We predict that our research will demonstrate that McDonald’s is more innovative than Wendy’s due to its effective implementation of the experiential approach to innovation.
McDonald’s Strengths McDonald’s boasts a very well established global brand. The company has 32,737 restaurants in 117 countries which have helped reinforce brand identity (Datamonitor, 2011). On average the company serves 64 million customers per day (Datamonitor, 2011). McDonald’s consistently ranks on the top ten lists of several brand surveys. For example, Fortune’s 2010 list of World’s Most Admired Companies ranked McDonald’s as number one in the food service industry and number ten overall (Datamonitor, 2011). McDonald’s has increased its global market share, both in developed and emerging markets (Datamonitor, 2011). As of their fiscal year 2010, McDonald’s operated in the US, Europe, Asia/Pacific, Middle East, and Africa; Latin America and Canada (Datamonitor, 2011). The extensive operations outside the US have helped McDonald’s maintain high profits even when the economy is not well domestically. Revenue from outside the US accounted for about 66.3% of the company’s total revenue compared to the US accounting for 33.7% (Datamonitor, 2011). These figures demonstrate that McDonald’s does not depend on a particular economy to generate revenue. Moreover, this gives the company an opportunity to gain economic buoyancy
We have chosen McDonald’s and Wendy’s as the organizations for the research project because they are both widely recognized by consumers. Because both of the organizations we have chosen are in the fast food industry, we expect to find many similarities between McDonald’s and Wendy’s. We believe McDonald’s will prove to be more innovative because of its use of the experiential approach as opposed to Wendy’s compression approach. McDonald’s has also proved to be more efficient at sustaining results driven change and implementing organizational development. We predict that our research will demonstrate that McDonald’s is more innovative than Wendy’s due to its effective implementation of the experiential approach to innovation.
McDonald’s Strengths McDonald’s boasts a very well established global brand. The company has 32,737 restaurants in 117 countries which have helped reinforce brand identity (Datamonitor, 2011). On average the company serves 64 million customers per day (Datamonitor, 2011). McDonald’s consistently ranks on the top ten lists of several brand surveys. For example, Fortune’s 2010 list of World’s Most Admired Companies ranked McDonald’s as number one in the food service industry and number ten overall (Datamonitor, 2011). McDonald’s has increased its global market share, both in developed and emerging markets (Datamonitor, 2011). As of their fiscal year 2010, McDonald’s operated in the US, Europe, Asia/Pacific, Middle East, and Africa; Latin America and Canada (Datamonitor, 2011). The extensive operations outside the US have helped McDonald’s maintain high profits even when the economy is not well domestically. Revenue from outside the US accounted for about 66.3% of the company’s total revenue compared to the US accounting for 33.7% (Datamonitor, 2011). These figures demonstrate that McDonald’s does not depend on a particular economy to generate revenue. Moreover, this gives the company an opportunity to gain economic buoyancy