please no plagiarism, Compare and analyse the effect of Multi-National Companies
ID: 327748 • Letter: P
Question
please no plagiarism,
Compare and analyse the effect of Multi-National Companies (MNCs) in Fast Food Chain Outlets with Saudi Based domestic Fast Food Outlets. Consider one MNC Fast Food outlet (McDonalds / KFC / Pizza Hut / Baskin-Robbins) with one Saudi based domestic Fast Food outlet (Al Tazaj / Al Baik / Kudu / Herfy). [900-1000 words] 3 Marks.
1. Present the study report with clear Introduction and Conclusion including your own views.
2. Analyze your study with micro and macro environmental forces by using SWOT analysis.
3. Analyze the Political and Economic challenges.
4. Analyze the Legal and Cultural challenges of each country.
Explanation / Answer
Answer:
MNC Fast Food outlet - McDonalds: McDonald has expanded their fast food business in the Saudi based locations. The McDonald food products have good demand in the market and people are preferring to use these products for their breakfast, snack, lunch and dinners.
Saudi based domestic Fast Food outlet -Al Tazaj: Al Tazaj is a fast food restaurant chain in Saudi Arabia, headquartered in Jeddah, Saudi Arabia. The fast food of Al Tazaj is very famous in the nation and people highly preferred for products of Al-Tazaj for their routine food requirements.
The effect of Multi-National Companies (MNCs) in Fast Food Chain Outlets with Saudi Based domestic Fast Food Outlets.
Introduction: This is the review of effects of multinational companies’ fast food outlets in the Saudi Arabia country. Domestic companies were present in the Saudi Arabia country and they were meeting the demand of their local people for the fast food requirements. With the entry on MNC fast food outlet, it creates a new environment of competition in the Saudi Arabia country especially for the domestic players. It had an adverse impact on the domestic outlets in terms of their sales, resources, infrastructure, capabilities etc. The competition for the domestic layer is increased now due to arrival of the foreign players in the market. People get multiple choices for the fast food requirements and domestic business needs to do larger efforts in order to retain their outlet businesses.
High MNC outlest: With the entry of the MNC players in the Saudi Arabia, the number of fast food outlets increased to larger numbers. This increase in outlets increased the options for the consumers for their fast food options. Thus it had impact on the sales of the domestic players. Thus the MNC entry creates larger number of fast food outlets in the major cities of the nation especially in metros.
Higher competition: The entry of MNC increases the competition in the Saudi Arabia market. Initially the competition was among the domestic players only, but now the competition is with the MNC players in the Saudi Arabia market. This higher competition calls for high energy, high resources and high efforts from the local players to achieve or maintain the business in the domestic market in high competition.
Sale impacts on domestic outlets: The Higher the competition had adverse impact on the sales for all the players and it had larger impact on the domestic players. Thus it results in sale decrease of constant sale for the domestic players.
Conclusion: Overall the major effect of MNC on the Saudi Arabia market impacts the domestic players in terms of their sale, energy, investments, resources etc. The market is divided into small small segments of consumers which had separate interest for their fast food products. This MNC entry created high variant in the market for the fast food products, which is good for the consumers point of view, but it is not good from the business point of view. MNC entry created lost of fast food outlest in the Saudi Arabia, but with lower sales and profit for the business, with higher choice options for the consumers.
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