Phase 2 Individual Project
Colorado Technical University
Management in International Business
MGM336-1304A-01
Robert Wilberding
October 30, 2013
Phase 2 Individual Project There are many businesses that have expanded their business internationally in order to benefit in some sort of way rather it revenue or a better market for their product. In this thesis, I will research a multination company and its international strategy over the last 10 years. I will elaborate on it international orientation and rather it etho-, poly-, or geocentric. I than explain why the company decided on expanding to the chosen locations. Then I will clarify if they had core capability to succeed in those markets, along with its
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The influence and most of McDonald’s success is the investment of significant in their employee’s growth and job satisfaction.
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.”
Furthermore, McDonald’s is a true franchise success; the success of McDonald’s goes back to its roots, the start. By being consistent and providing quality service, cleanliness, and values at all times, customers have nothing to complain about and customers always know what to expect locally and internationally. With making things new and fresh, innovation is a key component to the success
For McDonalds to achieve their mission statement they will have to create some internal strategies to help push for perfection. Strong training is one strategy that McDonald’s uses for overall success. McDonald’s has one of the Worlds best training with hands on skills development, teaching employees time management, teamwork, and customer service/ communication skills. McDonald’s ability to offer opportunity is another internal strategy they produce. McDonalds allows for many opportunities within the company for advancement. A large percentage of managers and franchisees within McDonalds all started at one point or another as McDonald’s Crewmembers. “67% of managers and 50% of franchisees” (McDonald’s Canada, 2015) started in entry-level jobs and worked their way up; this shows McDonald’s can offer plenty of opportunity. The last strategy is McDonald’s likes
McDonald’s is not some ordinary fast food restaurant with its trademark logo advertised almost everywhere in the U.S., many people all over the world know about these famous golden arches. The McDonald’s franchising started in 1955 and in less than fifty years, McDonald’s was introduced all over the world in countries such as, China, Japan, Great Britain, Sweden, France etc. McDonald’s global expansion has intermingled with cultural traditions because these countries are becoming more westernized. Since East Asia is becoming more westernized it also means that there is a cultural difference because of the influences from outside the country. The cultures are being changed because of how ideas are expressed by people and not by their
McDonalds is a corporation that has great success because of good strategy and planning. In the next five years, McDonalds needs to keep up with the changes of the consumer and social
McDonald’s has developed a series of marketing strategies to meet is mission and challenges. One of them is its adaption to local preferences. Let’s take India as an example. “Many Indians are either Hindus or Muslims. The article “Etiquette in Indian Restaurant” indicates that “in Hinduism, the cow is considered a sacred animal so it cannot be eaten; Similarly, Muslims consider the pig to be a very filthy animal so it cannot be eaten”. Because of such religious beliefs, most restaurants do not serve beef and pork. So there is only Chicken on the McDonald’s menu. Besides that, Indian prefer spicy food, even the sundae is spicy. Thanks to that, McDonald’s has remarkable achievements in its global expansion. Two-thirds of its new restaurants are opened outside America.
In the article “The Franchisees Are Not Lovin’ It,” the authors, Gruley and Patton, discuss the difficulties of the McDonalds franchise, the struggles of the franchisees, and the inability to solve these problems. The article goes on to talk about how McDonalds needs to get back to basics, just as they say themselves. Yet, they continue to make the menu more complex by the constant introduction of new foods. They are getting away from their identity as a burger joint. As a result they are closing restaurants and are continuing to experience declining revenue. McDonalds isn’t what they used to be and something needs to be done to improve the well-being of the company, the franchisees, the employees, and most importantly the customers.
McDonald's is the world's leading food service retailer with more than 30,000 restaurants in 119 countries serving 47 million customers each day. It is one of the worlds most well-known brands and holds a leading share in the globally branded quick service restaurant segment of the informal eating-out market in every country they do business. McDonald’s marketing strategy is having friendly people serving the right product with affordable prices. McDonalds’s showcase their restaurants as clean, comfortable and welcoming, and create promotions that resonate with key consumer groups. They want to stay in tune with customer’s lifestyle.
A lot of money was spending to promote and advertise the concept of McDonaldization, Coca-colonization to be a global household’s name. McDonaldization is a term used by George Ritzer in his book The McDonaldization of characteristic of a fast food restaurant. The concept of McDonaldization is to develop a business model from a traditional to a rational mode which manages prudently. The idea is to implant the fast food concept of McDonaldization in comparatively to the world cultural homogenization that eventually dominate more sectors of American society and
Headquartered in United States of America (USA), McDonalds is known as the emblem to globalization with their successful worldwide franchises. McDonalds are a leader in the fast food industry. They have served over 68 million customers daily (Burger Business, 2012). McDonalds have around 35 000 restaurants worldwide, with 1.9 million employees working under their majestic corporation. Furthermore, 80% of their restaurants are franchised (McDonalds, 2014). Forbes (2013), ranked McDonalds #6 in the world’s most valuable brands. With a brand value of US$39.4 billion and US$88.3 billion of revenue, McDonalds topped the restaurant industry in the list. Now, how did McDonalds came about this success? Entrepreneur Ray Kroc bought over McDonalds in 1954 from the McDonalds brothers that saw the growth of the successful business (McDonalds, 2014). Ever since then, McDonalds had been the name on everyone’s lips when talked about scrumptious, tender, mouth-watering foods. McDonalds stated, “By 1958, McDonald’s had sold its 100 millionth hamburger.”. It was a success like no other. McDonalds were one of the first to bring the concept of fast-food in the food industry at the early era of 50s. It catered to its most famous menus – Filet O Fish, Big Mac and Egg McMuffin.
The first strength of McDonald’s has been their product strategy. Throughout the past three decades they have simply been a hamburger and fries Restaurant. Growing customer wants and needs along with increased competition has forced them to alter and improve their menu to
McDonald’s as we know is the biggest multinational-corporation in fast-food industry. McDonald’s is a symbol of American power and hegemony just like Coca Cola and Nike which its operations is all around the world. And how McDonald’s could successfully entering global markets ? the key components is its standardization in all McDonald’s outlets in the world known as QSC&V (Quality, Service, Cleanliness, Value). You can see and feel the same burger quality, same fast service, cleanliness of restroom and the same price in all McDonald’s outlets in every country. McDonald’s also made a strong relationship with supplier because this is another key success, every supplier which supply
McDonald’s is one of the most successful examples of a brand that has transcended national boundaries. It is currently ranked the 6th most important brand in the world (Pomposo. 2014). It has produced the term ‘McDonaldization’ meaning ‘the
Since McDonald’s is the most well know fast food chain in the world with a market cap of 69.35 billion, brand recognition is their biggest strength. The secret of McDonald’s success is its willingness to innovate and maintain consistency in the operation of its many outlets. In recent years McDonald’s has introduced Premium Salads, Snack Wraps, fresh Apple Dippers in the United States, and Corn Cups in China. Also, McDonald 's products are priced so low that economic conditions are almost insignificant.
McDonald’s is one of the best known brands worldwide. This report will explain how McDonald’s aims to continually build its brand by listening to its customers, whilst also identifying the various stages in the marketing process. The report will also examine and explain the reason for McDonald 's penetrating the Indian market and the how the opportunity became available. The strategy and rationalised steps undertaken to achieve the best possible outcome based on location, menu, competition, pricing, developing a supply chain, etc, and how the strategy has grown and changed over a period of time. Also covering how this strategy has provided a growing income whilst also resulting in various complications and challenges. The challenges
McDonald 's success is built on a foundation of integrity. Hundreds of millions of people around the world trust our brand and we earn that trust every day by respecting our customers and employees, and delivering outstanding quality, service, cleanliness and value (QSC&V).
While the social demographic structure shows a downward trend on birth rate, parents tend to pay more attention on each child and wish to establish deep emotional bond. In order to maintain McDonald’s currently existing target segment-family, McDonald’s should focus more on providing experience to strengthen the relationship between parents and children. The value should not only be considered as provide food, but also an experience and a family time they shared.