Innovation And Profitability In Mcdonald Australia †Free Samples

Question: Discuss about the Innovation And Profitability In Mcdonald Australia. Answer: Introduction McDonalds is one of the well-known fast food companies in Australia. The company was introduced in their first store in Australia in 1971 and presently they are operating more than 900 stores in the country. The present customer base of the company is 90,000-spread across the country (McDonald's AU., 2017). However, the company faces strong competition from other fast food stores such as Hungry Jack, Dominos, Pizza Hut and KFC (Heffernan, 2017). The continuous competition faced by the company is making it necessary for them to take up new product innovations that are different from others. The research paper we will study the importance of product innovation on profitability of the company and will survey the frequency at which the company improvises its product varieties. Innovation is a process to bring about a new look and taste to the product a company is producing. It is a continuous process that is increasing on a day-to-day basis. Companies are continuously focused on producing new products in order to stay ahead of their competitors. It is a revolutionary process and a strong output indicator (Bain Kleinknecht, 2016). Thus, McDonalds should take up product innovations in order to put itself ahead of its competitors. The next important consideration is the demand for the product produced in a company. Demand is one of the most important driving forces for the yearly revenues of the company. A business runs with the sole aim of increasing demand for their items. Demand for a product is affected by various factors such as expectations and preferences of teh consumers (Mankiw, 2014). Therefore, McDonalds should always aim at meeting the needs of teh customers by bringing about an innovation on its menu range. It should be different than other fast food brands. Research Question What are the recent initiative taken by McDonalds on product innovation and its affect on profitability? Objectives of the Research To study the product menu of McDonalds in Australia Analyse the recent product addition on the menu list of the company Analyse the rate of profit increase after the innovation and compare it with the previous profit data Methodology The method chosen for this research involves descriptive qualitative method through survey questionnaire. It is one of the best data collection methods when a large number of populations need to be covered. The survey method is very effective as it allows the researcher to interact directly with the consumers and the administrative members to know their thinking on product innovation in the company. It allows the researcher to know the beliefs, views and needs of the consumers (Sullivan-Bolyai, Bova Singh, 2014). The data will be collected through primary research in a form of a questionnaire, in which the researcher writes the questions it wants the consumers to answer. There will be a mixture of both open ended and close-ended questions. Consumers visiting the store from 11 a.m. to 2 p.m. will be chosen for the research regarding their choice of menu and extra food items that they might like. Few questions will also ask their choice on some specific items from other fast food brand. Administrative staffs will also be included in the research for knowing the internal initiatives of the company and data on profit increase after any innovation that took place in the company. Another way of getting the responses is by uploading the questionnaire in several social media sites so that the customers visiting these sites can give their views about their food preference and their expectations from the company. This will help the researcher to gather data from all kinds of people in a wide range. Res pondents are expected to answer the questions carefully so that the survey gives error free results. The responses of the consumers will be analysed to determine the positive impact of food nnovation in McDonalds, Australia and the future modifications the company can take. A narrative method will be used to analyse the data. The analysis will be written in a story form about the present menu changes and profit increase in McDonalds and the suggestions given for further food development. This method is the easiest method of analysis and could be understood by everybody (Bernard, Wutich Ryan, 2016). References Bain, D., Kleinknecht, A. (Eds.). (2016).New concepts in innovation output measurement. Springer. Bernard, H. R., Wutich, A., Ryan, G. W. (2016).Analyzing qualitative data: Systematic approaches. SAGE publications. Heffernan, M. (2017).McDonald's Australian sales to hit $5b.The Sydney Morning Herald. Retrieved 4 August 2017, from https://www.smh.com.au/business/retail/mcdonalds-australian-sales-to-hit-5bn-20161022-gs8i13.html Mankiw, N. G. (2014).Essentials of economics. Cengage learning. Our Story | About Macca's | McDonald's AU. (2017).Mcdonalds.com.au. Retrieved 28 July 2017, from https://mcdonalds.com.au/about-maccas/maccas-story Sullivan-Bolyai, S., Bova, C., Singh, M. D. (2014). Data-collection methods.Nursing Research in Canada-E-Book: Methods, Critical Appraisal, and Utilization, 287.