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1. What strategies have made McDonald’s so successful in foreign markets that have

diverse cultures?

Large and emerging markets have been the emphasis of McDonald's (Tien, 2019). As a result of

McDonald's internationalization strategy, the company has been able to achieve success in China

and other regions. Big as well as emerging markets, McDonald's caters to the local people

(Keeler, et al., 2019). Hiring locals has been one of the major elements in McDonald's success on

the worldwide market. The importance of the brand has increased as a result. The company's

'Think Global, Act Local' mentality is a key success element. McDonald's has also been able to

meet local issues through collaborative ventures with local partners. McDonald's has been able to

cope with the bureaucracy in a new market by using this technique. They are a practice of

excellent ethics and moral responsibility is another factor for McDonald's worldwide appeal.

Their customer service is excellent, and they remain abreast of the latest developments in the

market. We are all familiar with the red and yellow of McDonald's across the world. To reflect

their tradition of environmental preservation, their trademark hues are dark green and yellow.

2. What can managers of fast-food restaurants do to create customer loyalty?

It is advised that restaurants give pleasant, nutritious, healthy, and sanitary meals to their

consumers in terms of quality. Diverse food, varied presentations for different consumer groups

are also advised to fulfill the different levels of customer satisfaction, according to the report.

Because of the nature of the restaurant industry, pricing competitiveness is critical. Because

customers are very price-sensitive, pricing plans should be based on the pricing strategy of

competitors and other internal and external variables as well. Customers' happiness with meal

quality, pricing, and service quality are indirectly connected to their patronage and willingness to

return for a second or subsequent purchase (Nuque-Joo, Kim, & Choi, 2019). It is advised that
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restaurants give pleasant, nutritious, healthy, and sanitary meals to their consumers in terms of

quality. Diverse food, varied presentations for different consumer groups are also advised to

fulfill the different levels of customer satisfaction, according to the report. Because of the nature

of the restaurant industry, pricing competitiveness is critical. Because customers are very price-

sensitive, pricing plans should be based on the pricing strategy of competitors and other internal

and external variables as well. Customers' happiness with meal quality, pricing, and service

quality are indirectly connected to their patronage and willingness to return for a second or

subsequent purchase. More satisfied customers are more likely to remain loyal to a business or

brand (Dong, Li, McDonald, & Xie, 2019).

3. Has McDonald’s made any mistakes in its expansion of acquiring new markets and

customers around the globe? Research, analyze, and discuss the results.

McDonald's is one of the world's largest franchisors. To ensure franchisees adhere to the

company's standards for quality, cleanliness, and customer service, McDonald's has created a

comprehensive structure (Tournois & Forterre, 2019). In addition to a predetermined fee, these

franchisees are expected to pay a specific proportion of the income earned. A national brand

structure allows them to acquire diverse inputs from recognized contractors and to set their

prices. With minimal supervision from the corporation, McDonald's opened its first foreign

market growth location in the Caribbean. This initial attempt was a flop, therefore the company

tried a joint venture approach in the Netherlands. During this experiment, the local McDonald's

outlets offered a new menu based on their local tastes and preferences. A new approach was

adopted, whereby stores would be operated by a mix of local and ex-pat partners (Mc Donald, et

al., 2019). McDonald's was forced to rethink its entry approach after a dismal result. The second

step of entrance focused on adapting to the local culture rather than altering it.
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McDonald's continues to experiment with market entrance methods in international regions,

despite some initial failures. It was founded as a 50-50 joint venture in India. Vikram Bakshi and

Amit Jatia own Connaught Plaza Restaurants and Hard Castle Restaurants, respectively

(McDonald, et al., 2019). Unlike McDonald's normal franchise business model, the joint venture

agreement was viewed as the ideal approach to penetrate India's very varied and complicated

restaurant market.

4. What can other organizations learn from the best practices of McDonald’s? Discuss.

Besides consumer loyalty, the McDonald's brand has distinguished itself from competitors via

quality, consistency, and uniformity, to mention a few. McDonald's has been able to avoid

stagnation throughout the years in part because of its responsiveness to consumers and

franchisees. Most of all, though, is the capacity of McDonald's to withstand storms. McDonald's

has been on an upward trend for most of its existence, but it has also faced some obstacles and

scandals. A few additional measures have been taken by McDonald's in the direction of more

openness as well (Huang, McDonald, & Seto, 2018). This campaign is meant to counteract the

bad preconceptions that McDonald's has acquired over the years and to alleviate consumers'

worries about McDonald's cuisine and its safety. In the U.S., the restaurant has declared its

poultry antibiotic-free, added real butter to its morning muffins, and used cage-free eggs.

Only a few firms will ever be able to compete with McDonald's in terms of size and scope of

operations. Entrepreneurs who want to make their firm the best it can be can learn from the

lessons the corporation teaches. There are many more variables that contribute to the success of

McDonald's, but these are a few that have played a major role. The main takeaways are as

follows:
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Developing solid, efficient processes and procedures and keeping consistent with them enables

firms to build customer confidence in their brand (Tallis, et al., 2018).

In the company, problems and downtimes will occur. Businesses that have a good relationship

with their customers are more likely to be resilient in the face of adversity.

Listen. The customer knows what he or she wants and how to get it. To meet these needs, a firm

must first identify them and then satisfy them. It's an invitation for growth and deeper ties for the

future when clients tell you what they want.

5. What specific management practices, concepts, or theories have made McDonald’s

successful? Discuss

McDonald's and other fast-food restaurants have a global reputation for using management

theory well. As the founder of scientific management, Frederick Winslow Taylor has established

a theory for what he considers to be a more efficient way to run a business. "McDonald's" uses

three parts of this theory: training your staff, defining standards for each activity, and promoting

high output through incentives. Employees should be taught how to be most effective at each

activity, Taylor says. Through its management, McDonald's develops its authority. In

McDonald's, the employee starts as a floor crew member, then advances to the trainee floor, then

a second assistant, and so on until he becomes Restaurant manager. McDonald's also utilizes a

structure where each employee reports to a single manager to create a sense of togetherness. The

manager in question then reports to the manager of the branch. Through its use of division of

labor and authority, McDonald's exemplifies Fayol's managerial ideas (Romulo, et al., 2018).

McDonald's has built itself as one of the world's most valuable brands through its application of

classical management. McDonald's is the world's largest shareholder in the fast-food industry,
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thanks to its adoption of traditional management (Panwar & Patra, 2017). Due to the vast

distribution of McDonald's franchises, adopting classical management guarantees that every

work is completed similarly and in the most efficient manner feasible in every franchise.

McDonald’s is ranked number one in the foodservice industry, with a revenue of 27 million

dollars in 2011, an increase of 12.2 percent over the prior year. Due to the company's worldwide

and financial success, McDonald's, Burger King, and KFC all utilize traditional management.

McDonald's has established classical management as its principal method of management

through a combination of Taylor's scientific management and Fayal’s management principles.

References
Dong, L., Li, X., McDonald, F., & Xie, J. (2019). Distance and the completion of Chinese cross-

border mergers and acquisitions. Baltic Journal of Management.

Huang, C. W., McDonald, R. I., & Seto, K. C. (2018). The importance of land governance for

biodiversity conservation in an era of global urban expansion. Landscape and Urban

Planning, 173, 44-50.

Keeler, B. L., Hamel, P., McPhearson, T., Hamann, M. H., Donahue, M. L., Prado, K. A., &

Wood, S. A. (2019). Social-ecological and technological factors moderate the value of

urban nature. Nature Sustainability, 2(1), 29-38.

Mc Donald, J., McCormack, P. C., Dunlop, M., Farrier, D., Feehely, J., Gilfedder, L., & Reside,

A. E. (2019). Adaptation pathways for conservation law and policy. Wiley

Interdisciplinary Reviews: Climate Change, 10(1), e555.

McDonald, V. M., Fingleton, J., Agusti, A., Hiles, S. A., Clark, V. L., Holland, A. E., & Gibson,

P. G. (2019). Treatable traits: a new paradigm for 21st century management of chronic

airway diseases: Treatable Traits Down Under International Workshop.

Nuque-Joo, A., Kim, D., & Choi, S. (2019). Mcdonald's in Germany: Germans, still lovin'it?.

Academy of Strategic Management Journal, 18(2), 1-20.

Panwar, D., & Patra, S. (2017). Localization in Fast Food industry: A case study on McDonald’s

strategy in India. Journal of Arts, Science & Commerce, 8(1), 70-74.

Romulo, C. L., Posner, S., Cousins, S., Fair, J. H., Bennett, D. E., Huber-Stearns, H., &

McDonald, R. I. (2018). Global state and potential scope of investments in watershed

services for large cities. Nature communications, 9(1), 1-10.

Tallis, H. M., Hawthorne, P. L., Polasky, S., Reid, J., Beck, M. W., Brauman, K., & McPeek, B.

(2018). An attainable global vision for conservation and human well‐being. Frontiers in

Ecology and the Environment, 16(10), 563-570.

Tien, N. H. (2019). Customization and Standardization of the Business Strategy of Foreign

Enterprises in Vietnam–the McDonald’s Case and the Fast Food Sector.“. International

Journal of Research in Marketing Management and Sales, 1(2), 44-50.

Tournois, L., & Forterre, D. (2019). The extremes of franchising in a post-communist country.

Journal of Business Strategy.