Mcdonald 's Impacts Of Globalization And Technology

McDonalds was founded in 1943, and 1967 British Colombia was its first international expansion, advertising to middle and upper class. McDonalds decided to expand internationally, due to the enormous success in America. There was heavy research involved in the expansion. Through globalization and internationalization, McDonalds were able to develop marketing strategies according to cultural needs, to serve specific target markets. McDonalds enter India’s foreign market and 1996 and is a tough foreign market to enter, but with McDonald’s success they were able to earn high revenue in India. The success strategy is researching and the development of food. McDonalds thoroughly analyzed the preferred taste, especially to not offend locals. Their key to success is to “think global, act local.”

In Paul Feine’s essay “McBastards: McDonald’s and globalization”, he addresses the negative views that many foreign cultures have about McDonald’s. He divides the essay into four sections. By breaking down the essay, he clearly shows his audience the ways in which the world views McDonald’s. He discussed the idea of cultural imperialism and the negative effects on foreign cultures, but shows the reader that these views may not be accurate. He ended his essay with a paragraph focusing on how McDonald’s brings people together.

The global segment of the general environment is that McDonald’s has Internationally and successfully expanded into foreign markets around the world. The first country that McDonald’s expanded to was Canada. Today, McDonald’s successfully operates in more than 100 countries and has over 34,400 locations. According to the McSpotlight.org, “on average, McDonald’s opens a new restaurant every three hours”. The world recognizes McDonald’s as a truly successful American company with tasty and affordable food items.

“I’m lovin’ it” (mcdonalds.com) is the motto for McDonalds. I can remember watching the commercials on my television and wanting to eat McDonalds. Going to McDonalds was my favorite place to eat as a kid. I loved the salty fries and the prize you would get in a happy meal and I would beg my parents to take me so I could get them. When I was little they had the slide and ball pit, which I absolutely loved to play in. As I got older I started to learn about different cultures and I was always curious how the American businesses impacted other countries. I always knew that McDonalds made a ginormous impact in America. Every kid wants a meal from McDonalds but I would wonder if children in other countries would crave McDonalds meals like Americans

McDonald’s is the largest chain of fast food Corporation in the world, has become a global most valuable brands. The business began in 1940, with a restaurant opened by siblings Dick and Mac McDonald in San Bernardino, California. Is the world 's largest chain of hamburger fast food restaurants, serving more than 58 million customers daily. In addition to its signature restaurant chain, McDonald’s Corporation held a minority interest in Pret A Manger until 2008, was a major investor in the Chipotle Mexican Grill until 2006. And owned the restaurant chain Boston Market until 2007. It employed more than 418000 people in the world.

Globalization refers to the “tendency of investment funds and businesses to move beyond domestic and national markets to other markets around the globe, thereby increasing the interconnectedness of different markets. Globalization has had the effect of markedly increasing not only international trade, but also cultural exchange”³. Globalization is closely related to foreign investment in the sense that foreign investment is a contributing aspect of globalization. It has also been noted that globalization can especially impact developing countries as it “helps developing nations "catch up" to industrialized nations much faster through increased employment and technological advances” . McDonald’s is a prominent example of a company that has embraced the opportunity to globalize and achieve success doing so. McDonald’s is the largest fast food restaurant chain in the world consisting of more than 35,000 outlets spread across 118 countries. Although the company was founded in the United States, they have not limited themselves to North America; they now spread worldwide into every continent. Similar to their global growth increase, the company has also seen their revenue tremendously increase as they continue to share their product with more and more people around the world. “McDonald’s key to success is its business mantra of “think global, act local”. This has allowed the company to achieve financial success in every region it opens its fast food restaurants”4. McDonald’s has clearly found the right strategy in terms of growing their product internationally as they’re seen to be one of the most successful companies doing so, their numbers support their success as they receive around 65% of their revenue from international

McDonald’s corporation started in 1944 as a drive-in restaurant in California. This single location was started by Dick and Mac McDonald. That location was altered in 1948, when the start of the 19 cent cheeseburger became popular. They had continued growth over the years and by 1965 there were over 700 restaurants in service. Since that time they have grown dramatically. As of 2011, they are operating in 119 different countries. They have more than 35,000 restaurants and over 1,8 million employees. McDonald’s direct competitors are Burger King and Yum brands (Taco Bell, KFC, Pizza Hut). Forbes profile describes McDonald’s as “As of December 31, 2011, of the 33,510 restaurants in 119 countries 27,075 were franchised or licensed (including 19,527 franchised to conventional franchisees, 3,929 licensed to developmental licensees and 3,619 licensed to foreign affiliates (affiliates)-primarily Japan) and 6,435 were operated by the Company. McDonald's menu includes hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, Snack Wraps, French fries, salads, oatmeal, shakes, McFlurry desserts, sundaes, soft serve cones, pies, soft drinks, coffee, McCafe beverages and other beverages.” They are considered #6 by Forbes on the World’s Most Valuable Brands. Their dollar menu and attention given to children’s products in their much marketed Happy Meal’s have brought them much attention and wealth.

Due to globalization and increased competition in the fast food industry, a very complex environment is created for McDonald’s. There are various internal and external environmental factors affecting the functions of McDonald’s corporation and demands for new innovations. The factors are as follows:

McDonald is a fast food franchise based in the United States and has various food outlets in other countries like India, United Kingdom, China, Japan, Canada and Australia. McDonald has been termed as the ‘World`s Local Restaurant’ because of its affordable take-out and sit down meals. The economic recession in the US in 2010 greatly affected businesses especially fast food restaurants whereby most small restaurants had to temporarily close their businesses. However, McDonalds remained afloat amidst tough economic times in the American market because of specific strategies which will be discussed.

Forty three years after opening the first restaurant in Des Plaines, Illinois, McDonald’s are proud to come on the World Wide Web. McDonalds.com receives millions and millions of hits every week.

In 1965 USA market, McDonald’s held an IPO in new York stock exchange, with the analysis, it is been figured out that the US market has reached to saturation and that every opening of a new McDonald’s restaurant intruded upon the revenues of other restaurants already in operation. Based on considering all these facts, McDonald’s decided to pursue a diversification strategy, in pre-selected countries, General Management would develop core competencies, the purpose of which was to build more profit and revenue-winning restaurants, and to develop these core competencies for use as a model throughout the corporation.

McDonald has been a well-known and valuable brand for over half a century. The company’s mission and vision is striving to be the world’s best quick service restaurant and formalizing their beliefs into “People, Vision, and People Promise”. “Quality, Service, Cleanliness and Value” also became the company’s motto. The company’s first McDonald store was built “in 1940 by the original McDonald brothers, Dick and Mac. Later in 1954, Ray Kroc became the first official franchisee appointed by Dick and Mac McDonald in San Bernardino, California” (Chandiramani, Ravi). Soon after, Mr. Kroc opened his first restaurant in Des Plaines, Illinois, and the McDonald’s corporation was created. The new franchise began to grow rapidly as a result of its

McDonald's is one of the famous brands that have existed over the last 52 years. The company started in 1955 by Roy Croc and the first restaurant was opened in Des Plaines, US. This restaurant is no longer running and has been turned into a museum. The company is committed to improving their

This organization began in 1940, by the brothers Richard and Maurice McDonald, in San Bernardino California. McDonald Corporation today dates its founding to the opening of a franchise restaurant by Ray Kroc, in Des Plaines Illinois, in 1955. The system of “speedy service System” in 1948 established the principals of modern fast – food restaurant.

The first McDonald's restaurant was opened by brothers Dick and Mac McDonald in 1940 on Route 66 in San Bernadino, California. The menu had about 25 offerings, and carhops brought the food out to patrons waiting in their cars.