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Globalization impact on McDonald’s stakeholders
Mcdonalds case study marketing
Globalization impact on McDonald’s stakeholders
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McDonald’s in India
In America, we consider McDonald’s to be a beef serving, sometimes fatty fast food restaurant, but after a 6 year business plan to sway the Indian population, McDonald’s has transformed. If they can continue this growth in India, and all over the world, globalization will start to love McDonald’s even more. They seemed to have hit the right points, from playing it safe, investing their time doing marketing research, to find the best places to put a restaurant and finding out what it is that people in India like to eat. This is what has separated McDonald’s from the rest of the
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They could not continue to control the economy, and by 1991 they basically had to allow less government control than before, and they started to become a little bit more market-based. This meant that they were going to have to accept MNC’s in order to stimulate their economy. Unlike other Western Restaurants, they did not just rush right in and try to make some quick cash. McDonald’s took the time and effort in creating a very successful business plan. Just like in America, McDonald’s has created funds to help Green Sensitivity, in order to counter the activists in India. They have made this move in the Western stores as well, giving different ways to create an active and healthy lifestyle. They have sponsored sports activities, given different foods to eat and enjoy, such as the baked and toasted options now becoming more available. They have decreased political risk, by doing basically whatever they think will make the government happy. They employ many people, they have a 50/50 ownership with 2 Indian men, they have helped the poor transportation system which needed to be improved, they have given many different companies business that couldn’t have done so …show more content…
One of the first restaurants was in Delhi which is an urban area typically in a setting that attracts younger, more affluent and English speaking people. Another place was in Mumbai, which is near the beach and holds the same type of people. Instead of having rural areas, they needed urban society to be the consumers of their product. For the farming and rural people however, they had to be awfully close to the restaurants due to bad transportation systems. They were able to train the farmers and they could produce more healthy and better food efficiently. They still want to attract middle-low class families in India, so they have a very smart pricing strategy. While many older families believe that McDonald’s is only for the rich, McDonald’s menu is 80-20 which shows the pictures of the food, rather than the explanation. They believe that if a less-well off person tries one of their less expensive meals, if they like it they were spend a few more dollars next time on more expensive treat. This also ties back to the family-centric attitude, because many parents would happily buy their kid an ice cream cone or a Lego happy meal so that they can leave them
The McDonalds Company has come to the limelight as one of the fast foods outlet causing health problems to the young people. The youngsters have taken the matter to the judiciary to contest for justice. They have also engaged the media which has publicized the company in that respect. Nonetheless, it is not McDonalds Company alone. The writer confesses that he once dealt in that venture and is remorseful about the woes bedeviling McDonalds.
People can eat American fast food in China, India, and Thailand and so on. The most popular of American fast food is McDonald’s. In China, McDonald’s dishes integrate Chinese and Western cuisine, especially in diet structures. To be more specific, the beverage size of McDonald’s is different between the United States and China. A medium sized drink in the U.S is equal the large size in China (Margot Peppers). Then, the McDonald’s of China serves rice and soup as lunch. McDonald’s does not have this diet structure in the United States. The reason why Chinese McDonald’s has this style of food because American fast food has to adapt foreign atmosphere. It has to change the diet structure in order to the requirement of the local ethic group. That is a similar situation when Chinese immigrants open restaurants in the United
In 1998, McDonald’s, in order to remain strong, tested the “McDonald’s Big Xtras” or “MBX” which was a potential hit. The “MBX” was a 4.5-ounce burger launched mainly to compete with Burger King’s “Whopper”. It was also reminiscent of the1980s “McDLT”, In ’98; they also brought back the “Filet-O-Fish” which in 1996 had been replaced by “Fish Filet Deluxe”. On a promotion basis, they offered novelty sandwiches, like “Cheddar Melt” and the “McRib”.
Malone, Elizabeth, and George Ritzer. "Globalization Theory: Lessons from the Exportation of McDonaldization and the New Means of Consumption." Amerstud (2008): 97-112. Web. 26 Apr 2011. .
With strength ultimately comes weakness and McDonald's has its fair share, especially in the last few years. Many weaknesses are due to the external environment which includes market saturation, increased price competition, and food and labor costs. These weaknesses affect many firms in the fast food industry so McDonald's is trying to effectively combat these forces using a differentiation strategy. Developing new products such
McDonalds also uses diversification in its global marketing. McDonalds recognizes that different countries have different values, customs, and tastes. Therefore, McDonalds satisfies these diverse global tastes by diversifying the menu according to each country’s unique preferences. This added diversification tactic, allows McDonalds to stay competitive in a global market. Examples of McDonalds globally diversified menu would be that McDonalds offers an exclusive beefless menu to its customers who live in India. This is because eating beef in India is sacrilegious. To meet the tastes of customers in India, McDonalds created new offerings such as the “Pizza McPuff” and the “McVeggie.” McDonalds considers the cultural tastes in every country it opens its doors
According to Royle (1999) McDonald’s is a very large multinational enterprise (MNE) and the largest food service operation in the world. Currently the company has 1.5 million workers with 23,500 stores in over 110 countries with the United Kingdom and Germany amongst the corporation’s six biggest markets, and over 12,000 restaurants in the United States. In 1974 the United Kingdom corporation was established and in 1971 the Germany corporation was established, currently the combined corporation has over 900 restaurants and close to 50,000 employees in each of these countries (Royle, 1999).
McDonald’s is one of the popular fast food chains in Hong Kong and the success of McDonald’s is due to it is able to create a homogeneous “global” culture that suit to the demands of a capitalist world. In Hong Kong, Time is money thus McDonald’s strategy is consistently fit to the fast food industry. The company has both economic strategy targeting at customer globally and locally.
Vignali, C. (2001). McDonald’s: “think global, act local”--the marketing mix. British Food Journal, 103(2), pp.97--111.
"Studying McDonald's ABroad: Overseas Branches Merge Regional Preferences, Corporate Directives." Editorial. Nations Restaurant News 11 Nov. 2005: n. pag. MasterFILE Premier. Web. 5 Mar. 2013.
In today’s market, McDonalds faces numerous challenges such as fierce competition, a more health conscious customer, and the continual need for improved customer satisfaction and menu. McDonalds needs to go through some changes in order to remain ahead in the fast-food industry.
Focusing on local produce – if McDonalds focuses on local produce, it has been shown that consumers favour this and trust produce from New Zealand, which may lead to an increase in profits.
McDonald’s has proven over time that the business practices they utilize work well and have led them to obtaining the title of the largest food retailer in the world. The founder of the company made a tactical decision in franchising the idea of providing fast food at a cheap price. Today, fast food has become a staple of not only American life but a viable food option all over the world. For McDonald’s a critical factor in them reaching the level of growth they currently experience has been franchising. It can be assured that McDonald’s will continue to grow through the usage of the franchising techniques as new food markets continue to develop all over the world.
McDonald's is the world's leading food service retailer with more than 30,000 restaurants in 118 countries serving 46 million customers each day. It is one of the most well-known and valuable brands and holds a leading share in the globally branded quick service restaurant segment of the informal eating-out market in virtually every country in which it does business. Problems Faced By McDonalds And The Public Opinion Of McDonalds For many years, McDonalds enjoyed worldwide success built on a few well-known, highly standard conditions. The company with the Golden Arches served a simple menu- hamburgers, French fries, and milkshakes or soft drinks. The food was priced low, its quality was consistent, and it was served speedily from establishments that all looked alike and were extremely clean. However in recent years, McDonalds has seen its growth rate slow down and its dominant market position slip. There are various reasons for this. The main reason is the several allegations made against them by environmentalist and health experts. These allegations are: Destruction Of Rain Forests McDonalds sells beef. Many beef suppliers get their beef from Central and South American countries. These cattle farms are usually placed on rainforest land that had been cut and cleared. The poor soil of the rainforest can only sustain life (grain for the cattle to fed upon) for up to a decade (although the mean is 2 years). The beef suppliers must move their farms every few years and consequently destroy more rainforest. Rarely does the forest re-grow, even if replanted. 70% of the moisture that makes a rainforest a "rain" forest originates from the transpiration of the leaves on the vegetation. Once that vegetation is removed for a few years and...
McDonalds provide high quality products, such as burgers, fries, drinks, muffins, etc, which are safe and reliable that it does what it is supposed to do, but not only does the quality of the products matter, the good value for money affects the business. E.g. buy one extra value meal and get one free with a food voucher that represents the offer only. They ensure that a high standard of the product is carried out at all times and they try to compete very competitively with other fast food businesses with their good value for money. Also a customer would know if the product is good value for money by checking in another food outlet like KFC for their services and products.