Mcdonalds Enter Foreign Markets Essay

How McDonalds Enter Foreign Markets

Founded in 1940, the McDonald’s Corporation, renowned for their delicious fast foods such as hamburgers, is an embodiment of economic activity that has yielded success. Although it has experienced significant challenges in its growth, the corporation has managed to establish over 32,500 restaurants in 118 countries worldwide. In 2012, the BBC report ranked McDonald’s as the second largest employer in the private sector after Wal-Mart with approximately 1.9 million employees (Schlosser, 2012). Therefore, the Corporation plays a significant role in the world’s economy, making it one of the major international trades that investors eye. From the statistics, it is evident that the economic activities of the

With the joining of Ray Kroc in 1955 on the franchise sector, the chain subsequently annually grew to higher levels as evident in the franchise department following the 2012 statistics employs more than approximately 1.5 million people globally. Approximately, the corporation has an average of 68 million consumers daily, thus experiencing a growth of 30% since 2001 to 2012. Currently, the corporation has four revenue divisions as shown in the pie chart below. (APMEA in the pie chart means Asia, Pacific, Middle East and

The managed always aimed at identifying emerging markets for expanding their investors. Domestically, the product was grown in other states in the U.S. such as New York and Illinois. Internationally, just approximately less than ten years from the establishment years, a branch was formed in London for expanding the market in the Europe continent and growth of the business is more abundant than even in the U.S.A currently. Inspired by the growth in Europe, the management also identified the growing markets in Africa are starting with the South Africa in 1994. Moreover, while announcing the intentions to expand market in Africa earlier this year, the chief executive of the McDonald’s sought to establish a franchise department in Kenya as it is an emerging market with not much of fast food restaurants. Therefore, the critical observation of the emerging markets and the fact that the management is flexible in taking risks to investing in such markets tantamount to the growth experienced in the corporation (Wainainah,