Mcdonald Subway

© R. Alami, 2009

Management stratégique

Rachid Alami - Professeur en sciences de gestion

PhD – St John’s University New York & Fudan University Shangai

Doctorate Business Administration– Université Paris Dauphine

Master es SciencesDESS : Ingénierie des systèmes

Consultant international en entreprise

Rachid Alami - Professeur en sciences de gestion

PhD – St John’s University New York & Fudan University Shangai

Doctorate Business Administration– Université Paris Dauphine

Master es SciencesDESS : Ingénierie des systèmes

Consultant international en entreprise

Étude de cas

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© R. Alami, 2009

Management stratégique T I CExemple d’analyse stratégique

è Le marchéè L’organisation (capacités, chaîne de valeur..)è La concurrence (forces et faiblesses,…)è Barrières à l’entréeè Positionnement stratégiqueè Perspective stratégique (interne/externe)è Avantage concurrentiel (coût, compétences,…)è Les FCS



© R. Alami, 2009

Management stratégique T I C

Un seul offreur Grand nombre d'offreurs

Un seuldemandeur

Un grandnombre dedemandeurs

OFFRED

EMAN

DE

Concurrenceparfaite

Monopole(France Telecomautrefois)

Monopsone(Etat pour les sociétésde BTP)

Petit nombrededemandeurs

Petit nombre d'offreurs

Oligopsone

Oligopole

LE MARCHÉ



© R. Alami, 2009

Management stratégique T I CTable 1: Morocco PEST analysis

è Credit card networkè Developed infrastructuresè Good communications and transportationnetworksThreatsè Land buying processè Availability of shopping storesè Financial conditions

è More balanced incomedistributionè Strong population growth rateè Islam as dominant religionè Specific diet habits (hot meal –no pork and alcohol)Threatsè Poor public health systemè Strong local competition for lowproducts’ price and weak qualityè Strong smuggling marketè High level of analphabetism

TECHOLOGICAL FACTORSSOCIOCULTURAL FACTORS

è Strong economic growthè Stable exchange ratesè Low inflation rateè Strong consumer confidenceè Low cost laborè Unsatured marketè Competitive production costsè Free trade zone with US and Europe (in progress)Threatsè High level of taxation and income taxè Dependency on climateè Local competitors (smaller fast-foods)è Free trade agreement that give advantages to thedetriment of competitors

è Liberal economic systemè Favourable national trade regulationsè Flexible employment lawsè Political Stabilityè Court dealing with trade disputeè Accommodate FDI policiesè Free capital transferè No double income taxThreatsè Islamism and terrorismè Frequent riots due to unemploymentè Hugh amount of bureaucracy

ECONOMIC FACTORSPOLITICAL FACTORS



© R. Alami, 2009

Management stratégique T I CTable 1: Morocco PEST analysis

è Credit card networkè Developed infrastructuresè Good communicationsand transportation networksThreatsè Land buying processè Availability of shoppingstoresè Financial conditions

è More balanced incomedistributionè Strong population growthrateè Islam as dominant religionè Specific diet habits (hotmeal – no pork and alcohol)Threatsè Poor public health systemè Strong local competition forlow products’ price and weakqualityè Strong smuggling marketè High level of analphabetism

TECHOLOGICALFACTORS

SOCIOCULTURALFACTORS



© R. Alami, 2009

Management stratégique T I CAdvantages franchising format

According to Preble 1992:1.ability to start a business at a lowcost with a proven standardizedproduct or service2.support received from thefranchiser for the brand concept

According to Preble( 1992):1.cost sharing2.rapid market penetration at arelatively lower cost than establishingone’s own distribution system3.economies of scaleAccording to Alon, Welsh, Falbe(2006):1.Fewer financial resources required2.Raw materials can be producedinternally3.Less susceptibility to political,economic and cultural risks4.Franchises are more familiar withlocal laws, culture, business normsand practices

FranchiseeFranchiser



© R. Alami, 2009

Management stratégique T I CReasons Companies Expand Abroad

Agrawal andRamaswami

(1992)

Desire to expandand increase profits

(Alon,2006)

Expanding middleclassUnsaturatedmarketsfriendly businesslaw

Welch (1988)Ample domesticexperience

Aydin andKacker(1990)

Domestic marketsaturation LowerrisksMinimal financialinvestment

Alon and McKee(1999)

Possession ofexpertise and know-how to transfer

Walker(1989)

Inquiries bypotentialfranchisees

AuthorsINTERNALFACTOR

AuthorsEXTERNAL

FACTOR



© R. Alami, 2009


Young MaturityAge of Organization

Size

ofO

rgan

izat

ion

Small

Large

Coordination andControl Problems

SimpleStructure

FunctionalStructure

Multi-divisionalStructure

MatrixStructure

NetworkStructure

La transformation de l’organisation dans le temps



© R. Alami, 2009


72120Presence inothercountries

Masterfranchise

Joint ventureHow enteredMorocco

20001999Year enteredMorocco

19841967Internationalexpansion:

19741955Year beganfranchising:

19651955Yearfounded:

SubwayMcDonald’s

Les entreprises étudiées



© R. Alami, 2009


Vache à lait

DilemmeVedette

Poids mort

PDM relative1 010

Croissancedu segmentd'activité

0 %

10%

20%

Besoinsfinanciers

+

-

Rentabilité+ -

Bonne rentabilitéBesoins financiers forts

Rentabilité faibleBesoins financiers forts

Rentabilité élevéeBesoins financiersfaibles

Rentabilité faibleBesoins financiersfaibles

LA MATRICE BCG – Boston Consulting Group



© R. Alami, 2009


Intensitéconcurrentielle

Clients/distributeurs

Entrantspotentiels

Fournisseurs

Produits desubstitution

Pouvoirspublics

Pouvoirspublics

Pouvoir denégociationdes clients

Menace desproduits ouservicessubstituables

Pouvoir denégociationdesfournisseurs

Menacedesentrantspotentiels

L'ENVIRONNEMENT CONCURRENTIEL



© R. Alami, 2009

Management stratégique T I CLe diagnostic stratégique

Organisation

INTERNE

Entreprise

EXTERNE

Environnement

Forces / Faiblesses

Ressources / Compétences

Capacités stratégiquesde l’entreprise

Orientation stratégique

Opportunités / Menaces

Situation de l’environnement

Attractivité stratégiquede l’environnement



© R. Alami, 2009

Management stratégique T I CLes outils du diagnostic stratégique

BusinessDomaine d’activité stratégique

CorporateEnsemble de l’entreprise

ExterneAttractivité de

l’environnement

InterneCapacités

stratégiques del’entreprise

Interne etExterne

Demande, offre, groupesstratégiques, intensitéconcurrentielle

PESTE : Politique,Econo,Social,technologique, Écologique

Chaîne de la valeur

Ressources et compétences –

Fonctions et processus

Plate-forme stratégique

Facteurs clés de succèsMatrice de portefeuilled’activités



© R. Alami, 2009

Management stratégique T I CLe diagnostic stratégique externe du DAS

Diagnosticexterne

La demande L’offre

L’intensitéconcurrentielle

Les groupesstratégiques



© R. Alami, 2009

Management stratégique T I CLes facteurs clés de succès

Evaluation de la maîtrise des FCSCritères desuccès dans lesecteur

• Localisation

• Qualité/prix

• Cadre

• Accueil

• Rapidité

Très faible ………………………………………………………Très fort

Entreprise

Marché



© R. Alami, 2009


54$6$5$Prices (smallcombo)

6HOT mealWarm temperatureHot temperatureMealtemperature

5Not willing towait

4 min5 minTime liningup andpreparation

5Foreign productsbut aligned withreligion andtastes

No adaptation at allMc Arabia – McFtour (SpecialRamadan meal)

Adaptation tolocal tastes

2Healthy menuHealthy menu –Fresh meal withlow fat and notfried

Fat meal andfried ingredients

Productcharacteristic

6HALLAL MEAL– FRIES -SPICY

Hallal meat andchicken, breads,cheese, salad,cheeps

Hallal meat andchicken, fish,bread, cheese,salad, fries

MainingredientbasedProducts

Degree ofimportance

for Moroccanconsumer

What areMoroccan

consumerswilling to pay

for?

What Subway hasdone and

proposed?

WhatMcDonald’s

has done andproposed?

VISIBLECRITERIA

Fromconsumer

point of view



© R. Alami, 2009


6Respectable area– Cross activities(shopping,cinema,entertainment...)

No parking – Farfrom shoppingcentre – Noplayground

Main streetsand shoppingarea centre –Beach, trainstations,business area –

Localisation

2No preferenceSimplicity - Nococking in thestore – Sandwichgets prepared inthe presence ofcustomer

Cocking in thestore

Operations

6Large space withplayground gamefor children,Eating at store -Parking

Standard store tobe able to operatefrom a small base,one hundredsquare meters,minimal seating,no space game

Standard store,Mc Drive, spacegame, hugeoutdoor space,large number ofseats –PlaygroundTerrace- Largeparking stand

Store format



© R. Alami, 2009


Think global, Act localWaiting until thebrand beingrecognized

beforelaunching

AD campaign

TV commercialsand

Billboard whenthey started

runningbusiness

Marketingstrategy

Crucial factorTraining wasorganized oncebefore opening

the store

Organizesfrequentlytraining foremployees

Training (Numberand time oftraining,preparation,manual)

Better relationshipare good, better

chance you have tosucceed

I couldn’t getinformation

(franchisee isgone)

Deeprelationship and

mutual trust

Franchiseerelationship

Theory - whatauthors have stated

about generalapproach

Subwayfranchisingapproach

McDonald’sfranchisingapproach

INVISIBLECRITERIA

From consumerpoint of view



© R. Alami, 2009


Nothing is mentionedby authors

I couldn’t getinformation

Some ingredientsare imported

(bread,

Origin ofingredients(yogurt,cheeps,logistics, …)

You partner musthave experience in

franchising

Franchiseewith few yearsof experience

Big advantage gotby having a

prestigious partner

Localpartner’scompetences

Nothing is mentionedby authors

8%5%Royalties

The more experienceyou have, the bestyou will succeed

26 Years ofexperience

before comingto Morocco

45 Years ofexperience beforecoming to Morocco

Franchisee’spreviousexperiencein franchise



© R. Alami, 2009

Management stratégique T I CErrors made by Subway in Morocco

1.Poor selection of master franchiser2.Lack of knowledge of business rules3.Keep products as they are without anyadaptation to local tastes4.Inadequate training for operating a chain ofrestaurants5.High prices and royalties comparing to whatthey offer6.Assuming that foods brought from US will workin Morocco7.Lack of knowledge of food tradition8.Lack of local market expertise from inadequatepre- market research9.Underestimating business processes andbureaucracy10.Difficulties to find the right localization at theright price



© R. Alami, 2009

Management stratégique T I CAnalyse PESTE

Analyse de l’environnement (PESTE)

Environnement politique Environnement social

Environnement économique Environnement technologique



Mcdonald Subway

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