The Fast Food Industry Is A Great Example Of The Concept Of Tradeoffs

1312 Words Nov 12th, 2015 null Page
Intro: What is “trade-offs”? What is price inelastic, and how does it affect the market? What is considered as the substitution effect? These questions include the concept of business systems, and economic ideas, which are the keys to understanding the economy market, and the economy is in our daily life. Cases down below are the real world example of some key economic concept that is very important to understand.

Case in Point 1: McDonald’s “Made for You”
- To replace Chapter two article, Cadillac Reportedly to Build Chevy Volt- Based Car, on page 60

Business systems have limitations. Companies that focus on details often have to give up the speed of production. These situations demonstrate tradeoffs, the exemptions a company must make in order to have limits on their offers. Tradeoffs better characterize companies’ business systems. The history of McDonalds business is a great example of the concept of tradeoffs.

The fast food industry is extremely competitive. Consumers make their choices based on price and convenience. In the last century, McDonalds used tradeoffs to help them be the leader of the fast food industry. Because customers love McDonalds for their fast speed and consistency, the whole company’s operating system was aimed towards these two goals. However, McDonalds competes with more and more new fast food companies like, Wendy 's, Taco Bell, and KFC. McDonalds started to look for ways to improve their own system.…

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