McDonald's - International Development Strategy

Extract

[...] With the expansion of McDonald's into many international markets, the company has become a symbol of globalization and the spread of the American way of life. Its prominence has also made it a frequent topic of public debates about obesity, corporate ethics and consumer responsibility II- McDonald's Success McDonald's keys of success McDonald‟s knew how to benefit from globalization, becoming the global company, supplying in all restaurants the same products and the same services. Nevertheless, one of the elements of its success is to know how to adapt itself to every country and to the local markets. [...]

[...] In conclusion, the essential advantage of the adaptation is the possibility of increasing sales and revenues thanks to better adequacy to the specific needs of the overseas market III- International strategy What is an international strategy? An international strategy is a strategy through which the firm sells its goods or services outside its domestic market. One of the primary reasons for implementing an international strategy, as opposed to a strategy focused on the domestic market, is that international markets yield potential new opportunities, as quoted by Raymon Vernon, a great American economist in his book The economic and political consequences for Multinational Enterprises. [...]

[...] The economic weight of the firm The McDonald's empire was able to build itself thanks to the implementation of a system of franchising. This last one is characterized by the transmission of a know-how (technical knowledge, commercial processes) from the franchiser to the franchisee. Besides, the franchisee benefits from the brand or from the brand of the franchiser, what allows it to attract the faithful clientele. So, the McDonald's group includes restaurants in more than 120 countries. Nowadays, on average, McDonald's opens a new restaurant approximately every three hours. [...]

[...] Therefore we can say, McDonald's for internalization, adopts a global strategy Furthermore, too much difference is not beneficial. That explains the standardized strategy. For example, a French car salesman could not have the same strategy if he wanted to sell a sports car with gearbox in the U.S. as in the U.S., all cars are automatic But this is not the only reason McDonald‟s has chosen to keep a standardized approach. It is also a question of costs. With this normalization, and by its concentration, McDonald's has many advantages in terms of costs and opportunities. [...]

[...] Also, in India, where the majority of the population consider cows as sacred animals, McDonald's proposes different types of hamburgers: for vegetarians and ones with chicken patties. The beef is non-existent in the Indian restaurants of McDonald's. In Israel, any meat served in a McDonald's restaurant is 100% kosher. The brand thus moulds its strategy in keeping with the culture of the whole population Seven kosher McDonald's do not propose dairy products and these outlets do not open their doors on the day of the Sabbath and holidays. [...]