Mcdonald’s Expands Globally Today

BA 654 Lesson #1, Assignment #2: Chapter 1 Case Study Review Case 1-1 on pages 35-38 of your text and
address the following questions in a brief essay of 250-300 words: CASE 1-1: McDonald’s Expands
Globally While Adjusting Its Local Recipe 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? 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? 3. At the end of 2003, McDonald’s announced it was selling the Donatos Pizza unit. Then,
in 2006, the Chipotle chain was spun off. In light of these strategic actions, assess McDonald’s prospects for
success beyond the burger-and-fries model. 4. Is it realistic to expect that McDonald’s – or any well-known
company – can expand globally without occasionally making mistakes or generating controversy? Why do
antiglobalization protesters around the world frequently target McDonald’s? ANSWERS: Q1.

Identify the key elements in McDonald’s global marketing strategy (GMS). In particular, how does
McDonald’s approach the issue of standardization? ANS: Hamburgers, fries, and soda’s popularity is rising
globally which supporting Levitt’s opinion of the global village. Also, the diners themselves offer the
customers a chance to try for themselves a fast food legend. Though, students should point out that, in many
areas, menu items are modified according to the preferences and tastes of individual countries.

McDonald’s offers an ideal example of “global localization. ” Q2. 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? ANS: Regardless of concerns by governments and
people in some countries about “cultural values or traditions,” McDonald’s and other companies with
famous brand names are usually acceptable. Such industries provide both much-needed jobs and employee
training.

McDonald’s does a decent work of earning the support of local authorities and the local population by
working with farming producers to develop local source sources for potatoes, meat and dairy products.
Ultimately, thanks to changing lifestyles around the globe, more people are acceptance the whole idea of fast
food. 3. At the end of 2003, McDonald’s announced it was selling the Donatos Pizza unit. Then, in 2006, the
Chipotle chain was spun off. In light of these strategic actions, assess McDonald’s prospects for success
beyond the burger-and-fries model.

ANS: McDonald’s paid a retro of time acquiring dealings they thought to be complimentary to their main
burger-and-fries product. Though, throughout this growth, they made the mistake of “taking their eye off of
the ball. ” This lets competitors to make inroads and caused in their core business failing. By restating
themselves in their main business, they are regenerating themselves as innovators in the arcade. Success
beyond their main model is surely possible; however, attention cannot be diverted from their main business
model. Q4.

Is it realistic to expect that McDonald’s – or any well-known company – can expand globally without
occasionally making mistakes or generating controversy? Why do antiglobalization protesters around the
world frequently target McDonald’s? ANS: McDonald’s has a status for being sensitive to local issues and
mindsets. According to the staff director for international human resources in Central Europe, “One of our
guiding principles is that our restaurants should always be a reflection of the communities they serve. ”
Errors such as the one in France signify exceptions that can serve as learning experiences.

Still, each new national has likely to present unique problems. In Israel, for example, McDonald’s must deal
tactfully and correctly with dietary laws relating to kosher foods and operating restaurants on the Sabbath
(Friday and Saturday). Another issue is to preserve the service attitude that was a keystone of McDonald’s
U. S. status. A German student noted that in Germany, decent service is not associated with McDonald’s
because counter help involves of immigrants who do not display the cheerful manner of their U. S.
complements.