Preview

Mcdonald’s Expands Globally While Adjusting Its Local Recipe

Good Essays
Open Document
Open Document
525 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Mcdonald’s Expands Globally While Adjusting Its Local Recipe
Overview: Today, McDonald’s golden arches are one of the most recognized symbols in the world, just behind the Olympic rings. While growth within the U.S. has slowed, the picture outside the U.S. has appeared brighter, until recently. However, globally, taste profiles and consumer desires are changing. McDonald’s has responded to these changes by altering their basic products (when necessary) to fit the requirements of the local markets. While not always successful, it has proven to be a winning strategy.

1) Identify the key elements in McDonald’s global marketing strategy (GMS). In particular, how does McDonald’s approach the issue of standardization? Does McDonald’s think global and act local? Does it also think local and act global?

The popularity of American-style hamburgers, fries, and soft drinks is growing around the world. Also, the restaurants themselves offer the consumers a chance to experience for themselves a fast food legend that provide inexpensive food, quick service, and a clean, familiar environment.

Although global dietary preferences are converging (e.g. fast food), a solid understanding of food-related cultural preferences is important for companies in the F&B industry. In many locations, menu items are adapted according to the customs and tastes of individual countries. McDonald’s offers an ideal example of “global localization.” E.g. Chicken Maharaja Mac was created for Indian market; local food ingredients were used in India and China, etc.

With McDonald’s offering of local tastes and a combination of American fare, McDonald’s thinks globally (product adaption) and acts globally (standardization). E.g. style makeover of the McDonald restaurant at Champs Elysees.

2) Do you think government officials in developing countries such as Russia, China, and India welcome McDonald’s? Do consumers in these countries welcome McDonald’s? Why or why not?

Despite concerns by governments and citizens in some countries about “cultural

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Tui Mgt 499 Module 1 Slp

    • 426 Words
    • 2 Pages

    This is a leading global food service retailer with more than 33,000 local and global restaurants. McDonalds was my chosen business for this project, because this is a major franchise that started out as a BBQ establishment, that grew into a major hamburger franchise over a extended period of time. I think that by analyzing the strategic planning process of McDonalds, I will begin to understand the foundation of a solid business organization and the strategic management process. In order to complete my analysis I will use the McDonalds business website at http://www.aboutmcdonalds.com/mcd/our_company.html.…

    • 426 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Within today’s modern society we like to have everything when we want and have it at any given time. Growing with that trend, modern fast food places like McDonald’s and In-N-Out Burger have giving their consumers that very thing. Even though In and out and McDonald’s have been around for years, both vary their menus and the way they appeal to their consumers with the change of time. On the west coast, In-N-Out is favored more than it is on the east coast. While McDonald’s is a worldwide company, with restaurants open in France, China, Iraq, and also America. Who is the better franchise; it is time to find out.…

    • 1022 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Globalization is common in most large organizations as they thrive to maximize revenue and expand customer base by establishing operations in different countries and within different cultures. Consequently, these organizations have to consider cultural perspectives of the country in which that plan to operate. McDonald’s, established in 1954 by Ray Kroc in conjunction with the McDonalds brothers and with over 30,000 restaurants in more than 120 countries, is one of the world’s biggest fast food restaurant chains employing 1.7 million people” (McDonalds, 2010-2012). This organization is no different and has to face issues resulting from globalization such as dietary preferences or needs from culture to culture or country to country as well as religion as it relates to its advertising and such..…

    • 993 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    01 SPRINGSMBA51028 1

    • 1236 Words
    • 5 Pages

    There are many businesses that we frequent in our day to day lives that are global in nature. We rarely give thought to their presence in another country. McDonald’s is a name that is recognized by all ages, in over 117 countries (Talpau & Boscor, 2011). McDonald’s is a 192.95 billion dollar restaurant industry (Bloomberg Industry Market Leaders). According to Kuratko (2013), McDonald’s is one of the biggest fast food industries in the world, due to the founder’s innovative ideas, not by inventing a product.…

    • 1236 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    Mcdonalds in India

    • 510 Words
    • 3 Pages

    In every country McDonald’s needs to adapt their menu to the cultural preferences of the market, but always based on its core products.…

    • 510 Words
    • 3 Pages
    Satisfactory Essays
  • Best Essays

    McDonalds: Brazil and China

    • 4560 Words
    • 14 Pages

    G2:McDonald 's and the world. (2001, April 5). Retrieved February 20, 2014, from The Guardian: http://www.theguardian.com/world/2001/apr/06/globalisation.features11…

    • 4560 Words
    • 14 Pages
    Best Essays
  • Powerful Essays

    History of Mcdonald

    • 6300 Words
    • 26 Pages

    McDonald’s is a company which has a colorful history and developed the culture associated with the Fast Food Chain today. In 1937, the McDonald’s brother Richard and Maurice opened the first McDonald’s restaurants in America; it was a freestanding business that offered until then an unthought-of concept. The main items they then sold were beef or pork burgers, fries and drinks. Their restaurant were set up differently to the restaurants of those times, with open kitchens the customers could see right through, and counters with many operational cash registers. Under a high degree of customer satisfactory contributed for business expansion, McDonald today has over than 30,000 restaurants over than 100 countries in the world and it has maintained the top position in the Fast Food Industry for the past 50 years.…

    • 6300 Words
    • 26 Pages
    Powerful Essays
  • Powerful Essays

    Bibliography: Baker, R. (2010). New Menu Boosts McDonald’s. [Internet], Marketingweek.co.uk. Available from: < http://www.marketingweek.co.uk/sectors/food-and-drink/new-menu-boosts-mcdonald%E2%80%99s/3018063.article> [Accessed 24 November 2010].…

    • 7424 Words
    • 30 Pages
    Powerful Essays
  • Satisfactory Essays

    Sample Bibliography

    • 885 Words
    • 4 Pages

    MacArthur, Kate. Article titled “McDonald’s secret marketing sauce; Three-pronged strategy of national, co-op & local propels chain to global powerhouse.” Released on July 25, 2005 http://www.kellogg.northwestern.edu/news/hits/050725aa.htm.…

    • 885 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Now in 2011, McDonald’s has over 32,000 restaurants worldwide and are in over 119 countries. McDonalds has saturated the U.S. with restaurants and maximized their growth opportunities. It is important for McDonalds as a company to pursue globalization investments. China is one country that has been great for McDonalds but challenging as well. China is the largest populated state in the world with over 1.3 billion people. China is the fastest growing major economy and…

    • 5335 Words
    • 22 Pages
    Good Essays
  • Powerful Essays

    McDonald’s Corporations has formed a very successful global strategy and centralized organizational structure. Even though McDonald’s restaurants are frequently franchises they all still received their products, food and packaging for the same vendors. Therefore, each McDonald’s location even outside the U.S. is still the same as any other location in another country. The McDonald’s organization has a multinational strategy which means the hierarchy’s of the company develop a decentralized organizational structure. This allows the decision making down to a lower level within the organization so that this way the multinational strategies will allow their international subsidiaries to form their own path. McDonald’s Corporations has maintained and steadily increased its history of rapid improvement and consistency within its internal and external organizational efficiency and products since its emergence.…

    • 1128 Words
    • 5 Pages
    Powerful Essays
  • Better Essays

    McDonald’s researches each country’s local customs and foods before deciding on the direction for their menu and opening of stores. For…

    • 886 Words
    • 4 Pages
    Better Essays
  • Good Essays

    When a McDonald's opens in a new neighborhood in a different country, people think of Americanization of the local culture. In reality McDonald’s more times than not has conformed to the local culture, not the other way around. McDonald’s also alters its regional menus to conform to local taste. McDonalds is in the business of making money and has found it makes the most money by giving people what they want. Different countries and cultures around the world have different needs and wants thus becoming an expression of global culture bring a common thread to pull together different cultures from around the world into one global fast food…

    • 304 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    It is amazing to know that over 54 million people eat at a McDonald’s everyday in over 100 different countries. Though McDonald’s is a franchise and all there restaurants are individually owned, the four functions of management are still important factors, which enable the operation to be so successful. This part of the paper will discuss how globalization impacts the four functions of management, which are planning, organizing, leading, and controlling.…

    • 2819 Words
    • 12 Pages
    Powerful Essays
  • Better Essays

    McDonald’s analyzed current trends and examined the results of its current strategies. McDonald’s made the determination that rather than focusing on building more restaurants in the U.S. they needed to focus on making those established restaurants more appealing and modern. They also determined that they needed to grow outside of the US. The Menu and décor needed to be evaluated and adjusted to compete with other fast food establishments. Employees also needed to be more knowledgeable and trained better as managers.…

    • 854 Words
    • 4 Pages
    Better Essays