Managerial Economics Term Paper

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The coffee industry has been experiencing significant difficulties in recent times, prices tumbling to all-time lows in real terms during 2002 (see Figure 1).

This has caused considerable hardship for coffee producers around the world, but at long last there appears to be good news.

The purpose of this paper is to investigate a specific industry and select a representative company from that industry.

To organize the paper, this report has selected global fast food industry considering the growth rate, customer base, and competition in the market.

(2010) reported that there are almost 49,888 Fast-food companies and chain shops in the USA and this number is increasing in every week where the major player are Arby’s Group, Burger King Corporation, Doctor’s Associates Inc.

Mc Donald’s Corporation, Starbucks Corporation, Wendy’s Inc., Yum Brands, Inc.

A significant part of the fast food industry in UK and USA are now dominated by Bengali and Indian fast food restaurants (especially central London); snacks like Kheema, Paratha, Keshar Pista-Kulfi, Aloo Posto, Amer Chatni, pickles, Khichdi, Batter Fried Fish, Bengali Fish Curry, Payesh, Coconut Almond Sandesh, Fish Cutlet, Rasgulla, Yoghurt Fish, Ras Malai, etc are largely preferred by customers.

In the US Fast Food Industry, product differentiation is another criterion where the Mc Donald and other firms put into practice by branding, packaging, advertising; price, flavor, and color successfully motivate the customer to determine their requirements from their own product line rather than going to the other firms.

The globalization of the corporate world has boosted the industry to play a major role in causing economic growth to the participating countries as more people prefers fast food because of its time saving approach.

In 2007, the international growth rate of the industry was 4.1 percent, whilst the sales increased by 6.9b; in the following year all the giant players enjoyed rising sales volume with Mc Donald’s sales increasing by 3.07 percent, KFC’s sales by about 10 percent, and Burger King’s also by 10 percent.

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