Chintia 1641326 Hellen 1641316 Question & Discussion Refer to Exhibit 6-9, which presents McDonald’s market potential based on the formula given on page 211. a. Using the same formula, estimate what McDonald’s market potential would be in Brunei. b. What factors are missing in the formula that McDonald’s uses ANSWER
Population of Brunei : 435.562
No. Of People Per McDonald’s In US : 21.629 PerCapita Income Brunei : $28.290 PerCapita Income in US : $41.800 Potential Penetration In = 435.562 x $28.290 = 13,49 Brunei 21.269 $41.800 Factors are missing in the formula that McDonald’s USES
1. Consumption patterns aren’t comparable across
countries due to strong cultural disparities. 2. Other factors (Competition, Trade barriers) cause actual sales to differ from potential sales 3. Technological advances allow use of product innovations in a country at an earlier stage of economic development (leapfrogging)