Mcdonalds In EthiopiaEssay Preview: Mcdonalds In EthiopiaReport this essayEthiopia is located on the eastern horn of Africa bordering Sudan, and Kenya. According to their Gross National Income (GNI), Ethiopia is ranked the tenth poorest third world country. Ethiopias major cities are comprised of Addis Ababa the capital, Dire Dawa, Harar, and Dessie. Ethiopia is the oldest independent country in Africa and one of the oldest in the world. Unlike most countries in Africans history, Ethiopia has never been colonized, except for during the Italian occupation in 1936-1941. In 1974, the Ethiopian Peoples Revolutionary Democratic Front (EPRDF) help the country overcome bloody coups, uprisings, wide-scale drought, and massive refugee problems, and establish a socialist state. A new constitution was adopted in 1994, which guaranteed the religious rights and the cultural and political rights of all ethnic groups. Today the country is comprised of more than 80 ethnic groups and as many languages. (Central Intelligence Agency, 2006) This diversity and a major boost in tourism are appealing factors to a business with multicultural capabilities such as McDonalds.
Ethiopia is almost twice the size of Texas and has an estimated population of 74 million. Addis Abab has a population of about 3 million and is the most diverse city in Ethiopia. The Amhara and the Oromo with over 65% constitute the majority of the Ethic groups in Ethiopia with Tigre and Somali being second. Although so many languages are spoken in Ethiopia, English is taught as the major foreign language. Two major religious groups occupy Ethiopia, Muslim and Ethiopian Orthodox, with Muslim being the majority(Central Intelligence Agency, 2006).
Ethiopia is a federal republic which is favorable to a foreign business. In the major cities there are foreign business operating in multiple industries. U.S. fortune 500 companies have found the capital Addis Ababa a strategic location to operations in eastern Africa and southern Europe. Ford, IBM, Boeing, Green Star Food, and MCI are just a few companies with operations in Ethiopia. Ethiopian currency is called the birr and is usually at an exchange rate of about 8.50 per US dollar which is around the same as other countries with the same appealing factors as Ethiopia.
Ethiopia as a whole has been a poverty-stricken economy for decades because of two related factors. Ethiopias agricultural sector accounts for over half of the countries GDP. Unfortunately Ethiopia suffers some the worlds worst droughts in history, which in turn destroys their economy. Agriculture produces 60% of exports, and 80% of total employment for the country. Ethiopias long time struggle with Eritrea ended in 2000 but with the penalty of losing costal land along the red sea. This along with other poor cultivation practices also has been huge factors to the problem. Coffee is the Ethiopian economies most successful cash crop with exports of some $350 million in 2006. Qat, gold, leather products, live animals, and oilseeds are also exports for Ethiopia (Marcus, 2002).
The Ethiopian government is committed to the production of high-quality food. The national minimum wage has been abolished in 2006 and the national income tax, for example, has been raised from $2 a month (P. 5) or $1.70 (P. 5) to $15 (P. 5) per month. In 2009, the number of foreign direct investment was 25 million. In 2006 over 30 million foreigners were in the country with an investment rate of at least 40%. During the boom years, investment in agricultural products at 30 million in 2006 grew from $70,000 a year in 1986 to 2.2 million in 2007 (see figure 1). Also, investment in agricultural products at 30 million is expected to exceed $90,000 in 2009, increasing to $100,000 in 2010.
The Ethiopian government must continue to improve the quality, efficiency, and profitability of the economy including in the fields.
The Department of Agricultural, Forestry, Land and Water (DOSME) has been in charge over the past seven years to work with various agricultural cooperatives in order to expand the development of Ethiopia’s national agriculture sector. Some of the new cooperative agreements in use are: DASME Organic Farming and Production, DASME Ethiopian Farming Technology, DASME Ethiopian Food Supply, DASME Ethiopian Agriculture Development, DASME Ethiopian Farms, the DASME Food and Environment Partnership, DASME Ethiopia Food Development Fund, DASME Food Development Cooperative in Ethiopia, the DASME Food and Food Distribution Cooperative, DASME African Food Production.
The DI has provided a good service to the farming community including in several sectors including foodstuffs, fertilizers, energy, fertilizer and seed, fish and fish products, poultry, meat products and raw materials, fruit, vegetables, honey, spices and nuts with high quality by serving the Ethiopian community with their unique flavors and products.
About DASME organic farming
DASME’s unique, organic approach to Ethiopian agriculture means that the Ethiopian farmers have access to an abundance of sustainable seed, fertilizer and livestock stocks to sustain livestock for many years. DASME’s unique approach to Ethiopian farming means that the Ethiopian farming community has a variety of different farming types to choose from to ensure a great deal of quality for farmers. The Ethiopian agricultural sector has the highest turnover of any agricultural sector in the world. Most farmers with DASME’s approach come from rural areas, which in turn supply the market with large amounts of high quality, locally sourced organic products. Farmers are also paid a profit on the farming, so no need for a subsidy to the taxpayer. Although there are two groups of farmers competing for this land on the market, farmers and investors alike, the farmers compete on a level playing field so that farmer cooperatives generate income for the whole country.
About DASME agroforestry
DASME’s innovative agroforestry strategy and technical expertise has led to more than 10,000 acres of irrigated soybean fields throughout the country
In 2001, Ethiopia qualified for debt relief from the Highly Indebted Poor Countries (HIPC) initiative. Then in 2005 the International Monetary Fund voted to forgive Ethiopias debt to the body. Today under Ethiopias land tenure system, the government owns all land and provides long-term leases to the tenants with favorable factors toward foreign businesses.
In order to develop a McDonalds franchise in Addis Abab, Ethiopia many major factors such as location analysis, market, competition, facilities style, and menu must be considered. McDonalds already has great marketing programs and strategies in place in other foreign markets so the corporation can help with those variables.
McDonalds has an appeal to almost all different cultural backgrounds and walks of life that can be found in Ethiopia. Tourists, who want to eat something they know, will be one half of the target market while the new workforce will be the other half. Tourists feel comfortable in having a restaurant or food source that they know, available to them when they are somewhere they are not use to or comfortable with the native cuisine. New jobs in IT, communications, and other technology fields are booming in Addis Abab and they are hiring domestic and foreign labor (Shimeles, 2005). The lunch break workforce has always been a target market in the U.S. for McDonalds. I believe this can be continued in this market with the same success. The new “fast food” concept will bring new and non-traditional customers to the business also.
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What we are seeing in our new restaurants is a great opportunity for us and new entrepreneurs to bring our best service to our new customers. We see this as an opportunity to create some fresh and new ingredients, offer our high quality menu at the highest quality, and produce innovative products in our home and abroad.
What is more, we can’t wait to open our new offices there soon. We’re working to build as many as possible on our new website that will eventually be integrated into all our new restaurants. We’ll create a website where our customers will be able to share any recipe or to add an item to their meals or even to order them on our website for the first time (e.g., my chicken and bolognese steak, your favorite burger, your favorite cheese, your favorite taco, etc.).
The team, which can work independently of the management organization, will provide the new₊fast food company a platform to sell its work to consumers who, like us, see things from us or on our new website and will help us grow our operations with the help of local partners. Our existing staff will be part-time or are able to go back to work through contract. We can also make our offerings unique or just offer some new menu options they have never tried before by offering them to new customers. It takes a new business model to do that. That’s why we need to make new opportunities in our restaurants in a very proactive way through the newⁿ fast food operation. We need to be part of the “next-generation fast food industry’ (E&D, 2007).
In addition to supporting our new₀fast food operation and opening the first restaurants to come to Ethiopia, we’ve become more established in our home country of Ethiopia. Our growth has grown rapidly and we’re now recognized as one of the fastest growing food and drink companies nationwide (E&D, 2007). It’s safe to say, we have an entrepreneurial spirit that will be welcomed by our customers and have helped us expand our business internationally (e.g., Starbucks, Amazon, etc.). At our new business, we’re helping our local community and consumers in Ethiopia. With our new restaurant, we want to bring our product to the global market as fast as possible and do so with a quality meal to help customers connect with us in an innovative way.
What is more, our customers are the best, most knowledgeable, and fastest growing fast food and beverage business that they’ve ever had access to. What’s more, we believe the best growth is happening in Ethiopia. In addition to improving our growing food business in Ethiopia through our work in Ethiopia, we also benefit from our investments in other areas including our own business opportunities in Kenya, Zambia, Tanzania, South Africa, and all of our neighboring countries. We have many investments under our belts in Africa that are contributing to our ability to expand in each country. The next fast food and beverages company we will join us for is something really special.
This article was originally published by The World
Copyright Copyright 2016 by Jason Allen
Addis Abab has a city area of 204.7 sq mi, filled with tourist attractions, a university, and a plethora of new business domestic and foreign. The location for the McDonalds franchise must be centrally located amongst the targeted market. Since the fast food concept is going to be kind of new to this culture the building location is vital to the businesss success. A location close to the target markets will be near the business district and also close to the means of transportation or lodging of tourist.
Addis Abab is home to some of the most diverse eating choices in the world. Competition is purely based on appealing to your particular customers wants and capitalizing on them along with retaining the customer. Competition for the tourist dollar is high with many similar in price, and service. A McDonalds franchise