Globalization Case Study Mcdonald's
Responding to Issues of Globalization
Mc Donald’s
Introduction
Mc Donald’s, headquartered in the United States was founded in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald. It is now the world’s largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries across 35,000 outlets. Its operations are conducted either by a franchise, an affiliate or the corporation itself. It makes its revenue from rent, royalties, fees paid by the franchisees, as well as the sales in company-operated restaurants.
Mc Donald’s primarily sells hamburgers, cheeseburgers, chicken, French fries, breakfast items, soft drinks, milkshakes and desserts. In response to changing consumer tastes, the
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They also have to deal with religious law. In Islamic countries for example, all restaurants that operate have to have ‘HALAL’ certificates.
The problem of competition is dealt with at a later section.
Strategy and how it can be used
A business strategy is a means by which a business sets out to achieve its objectives. It can also be referred to as long term business planning. Typically, it coves a period of about 3-5 years.
The following is a list of the various strategies implemented by the corporation in order to domestically and globally stay ahead –
Operating in around 35,000 restaurants in 119 countries – By diversifying their operations to different outlets and nations all over the world, Mc Donald’s decreases its exposure to the intensely competitive fast food industry in the United States.
Focusing on emerging markets – Although it is a huge organization, it hasn’t conquered all corners of the world yet. To heighten their profits and reduce their risks, Mc Donald’s has made an eager push towards the growing markets; not only China and India but some African Nations as
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They have added smoothies, fruits and salads to their menu to attract their attention. This was also a way from them to challenge the ever-present negative image of unhealthiness of the company.
More attractive stores – Based on the location of the outlet and the popularity of styles that appeal to people, Mc Donald’s has started to redesign their restaurants to make it more pleasing. Extension of open hours of over 95% of outlets globally and 24/7 service if several thousand stores to cater to the “late nighties”. Free Wi-Fi is now available in Mc Donald’s restaurants across the world which attracts a lot of people, mainly
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