Global Insights - McDonald's Essay example

Submitted By AmandaJames10
Words: 1507
Pages: 7
Open Document
Global Insights: McDonald’s
Since the founding of the first McDonald’s in 1937 by Richard and Maurice McDonald, the empire has a strong global presence that continues to grow year over year. The brothers opened the tiny drive in and created a food processing and assembly line technique in the first restaurant in California. The success of this model led to Ray Kroc negotiating the first franchise deal in 1954. This deal gave him exclusive rights to McDonald’s in the USA and the ability to control the growth of the company. In 1967, the first McDonald’s was opened in Canada which was the first international venture for the company. Shortly thereafter George Cohon bought the license for McDonald’s in Canada and went on to build a network of 640 restaurants across the country. With the success of McDonald’s in Canada and the USA, the company has grown to over 20,000 restaurants in over 100 countries (Vignali, 2001). According to the 2013 statistics, the chain serves 69 million customers, at 34,000 stores, in 118 countries daily and this number continues to grow daily (McDonalds, 2013).
The success of McDonald’s in the international market is due to the use of franchising. By franchising, the products and service are focused on the ideals and practices of the different countries but maintain the brand and recognition of the US Company. Branding and marketing of McDonald’s worldwide has also been a huge factor of the success of McDonald’s with the ‘Golden Arches’ sign and “I’m loving’ it” slogan at the forefront. McDonald’s has built up the advertising branch of the corporation and has created ads and promotions that appeal to everyone – from children their happy meals to senior citizens with free coffees. By combining franchising, branding, marketing and advertising, McDonald’s has had a great deal of success in the 118 countries it currently has stores in (Vignali, 2001).

Franchising McDonald’s was built on franchises and has continued to be successful due to 80% of the stores being a franchise. According to Daley (2012), a franchise is a business that is created based on the successful business model of another business. A business owner will pay a fee for the rights of the company’s business model and build a company using the brand of the company. In the case of McDonald’s, a franchisee pays McDonald’s to build a restaurant, sell their product and benefit from the success of the company. Daley (2012) claims that the success of the franchisor depends heavily on the success of the franchisees which is why many franchisors have strict processes that a franchisee must pass prior to being able to buy the rights to the business model. Each city, state, and country has different law regarding franchises that often times can hinder an individual from buying and running and franchise. According to Anttonen (2005), in Russia it is illegal for franchisor’s to set standard prices or limits on the prices of the goods. This creates an issue since companies have their products priced according to what is best for the company and the consumer – this law allows franchisees in Russia to price the product as he/she wants. On the contrary, franchises like McDonald’s have popped up in China and India which has given citizens the opportunity to own companies while maintaining the culture (Venkatesan, 2013). According to Venkatesan (2013), McDonald’s offers a completely Indian and vegetarian menu with items at a median price of $.50 in order to successful in India. A company needs to be flexible when moving into new markets because of the cultural and economic differences.

McDonald’s has adopted a very flexible attitude when opening stores in different countries. As McDonald’s grows and enters into new countries, the need to adapt to the culture and values of that country is what will lead to the success of the stores (Venkatesan, 2013). Based on the customs and laws of each country, McDonald’s has to adapt to each situation
Show More

Related Documents: Global Insights - McDonald's Essay example

Income Statement and Comparable Sales Essay

McDonald's Corporation today announced results for the fourth quarter and year ended December 31, 2013, reflecting higher revenues and earnings per share for both periods compared with the prior year. "Around the world, consumers want a satisfying meal at an affordable price from a brand they trust. At McDonald's, delivering a consistent customer-focused restaurant experience continues to be our top priority," said McDonald's President and Chief Executive Officer Don Thompson. "While 2013 was a…

Words 1238 - Pages 5

Social Consumerism: McDonalds Essay examples

A McDonalds Marketing Breakdown "That night in my motel room I did a lot of heavy thinking about what I’d seen during the day. Visions of McDonald’s restaurants dotting crossroads all over the country and world paraded through my brain." (Ray Kroc) Kroc’s aim for McDonalds was far more than fulfilled. Today, it is the leading global food service retailer with 34,000 local restaurants serving nearly 69 million people in 119 countries. There are 3 very important factors that have contributed…

Words 2261 - Pages 10

Mcdonald's Marketing Strategy

McDonald’s is the largest and the most well known and successful fast food chain in the world and especially in India it has become a household name and since 1996 it has come a long way and has created a strong place in the mind of the customers and a strong hold for itself in the market catering to kids to teenager to young adults, families even to senior citizens. The Golden Arches of McDonald’s are slowly becoming an integral part of the Indian landscapes. Everyone knows McDonald’s is big, but…

Words 1079 - Pages 5

Strategic Management Reflection Paper

Participating in the seminars, reading textbook and relevant materials provide me with plenty of insights, thoughts and ideas on strategic management. This reflection paper will first explain the significance of studying strategy, strategizing and strategic management, then demonstrate how the global economy and country discrepancy affect strategic decision making, elaborate how cultural differences have considerable implication to organizations and strategy and finally highlight the importance…

Words 1142 - Pages 5

Subway Case Analysis Essay

Morning News, 2006). According to a Time Magazine article, "heightened competition from the likes of Subway, which has dethroned McDonald's as nationwide champ in total stores with 13,101, has added to the McWoes. Subs and other custom-made sandwiches are growing 12% a year as a fast-food category vs. a paltry 2% to 3% for burgers" (Eisenberg, 2006, Can McDonald's Shape). Market Growth [By 2020, the U.S. population will add between 50 and 80 million people—all becoming part of the food…

Words 1301 - Pages 6

Essay on Fast Food and Consumer Foodservice

Expansion Patterns in China Consumer Foodservice Article | 19 Sep 2011 Consumer foodservice in China has seen incredible growth over the last few years, but recent expansion is evolving in some surprising ways. While global multinationals like Yum! Brands and McDonald's have shifted their focus to second- and third-tier cities, local Chinese operators are widening their reach to include first-tier targets despite the high level of competition. Many such operators are looking to grow from…

Words 1667 - Pages 7

Fast Food and Kfc Essay

out technology that enhances their ability to carry out tasks better than before (Angelides, 1997). This project will therefore explore how information and communication technologies (ICT) have affected the fast food industry (FFI), specifically global quick service restaurants (QSR). Emphasis will be placed on how ICT affects and adds value to the operational activities, supply chain processes, branding and corporate strategies implemented by organisations within the FFI. Furthermore, McDonalds…

Words 8206 - Pages 33

Military Rites Of Passage

going to the gym after work, and traveling globally for leisure and cultural experiences is becoming increasingly common. This pattern, which has been greatly affected by social media and other online platforms that promote certain behaviors, shows a global trend towards a more standardized style of living. Especially after the pandemic, which raised people's attention to health, the lifestyle of a healthier life is being embraced globally.…

Words 1028 - Pages 5

Research OB Essay examples

development and by 2000 output had quadrupled. For much of the population, living standards have improved dramatically and the room for personal choice has expanded, yet political controls remain tight. Since the early 1990s, China has increased its global outreach and participation in international organizations. Religions: Daoist (Taoist), Buddhist, Christian 3%-4%, Muslim 1%-2% note: officially atheist (2002 est.) (Country has no control of there Religions) Languages: Standard Chinese…

Words 4987 - Pages 20

Mcdonalds Case Study Essay

swap shifts with family members working in the same restaurant, without prior managerial consent. Following this they introduced employee Page 3 of 8 People & Change Management Assignment 1 Liam Carpenter 01/03/2013 surveys to gain insight as to what their employees thought about working in McDonalds. Building databases from employee feedback is one of the most powerful resources for generating positive change in an organisation. (Church, Margiloff and Coruzzi, 1995) However the implications…

Words 2879 - Pages 12