Mcdonald's International Strategy

McDonald’s Strategies

As it has been mentioned that operating across countries can be very risky for firms as there are many barriers and differences in market characteristic that has to be considered. A huge multinational firm like McDonalds need to have a very precise strategy in order to execute their business successfully in the global paradigm. In this section we would like to separate MCD’s strategies into three parts

Expansion Strategies: Franchising

There are many ways to enter international market, many firms choose different method that suit there operation. In the case of MCD, their globally expansion has been majorly associated with Franchising. They believe that by allowing local people to own and operate their own restaurant,

By supplying the product that are relatively cheaper than their competitor such as Arby. This has been done through a massive scale production and supply chain integration that utilize both concept of economy of scale an economy of distance to drive their per unit cost down substantially. The evidence can be seen in 2010 when MCD created a breakfast menu as the economy continued to slump. The menu design for the people who need to save cost of living and the people who need to get to work in the morning. The price of the menu would be significantly cheap in this kind of economic and when comparing with competitor such as the local restaurant, the price would be still cheaper. They also introduces the use of information technology that synchronize their global operation together and reduce over level of

For example; through the introduction of McCafe, MCD are able to differentiate themselves from other fast food chain. It’s the perfect choice for the people who have the middle income and want to taste the real coffee. Also, it’s the perfect marketing machine of MCD since 2002. Today McCafe have 1300 worldwide restaurant and it just beginning to expand their branch into Ukraine, along with a national rollout in Canada. The McCafe menu has been growing as well, adding non-coffee items like smoothies over the past couple years to tackle the rising trend of healthy