CASE 1-McDonald’s Expands Globally While Adjusting Its Local Recipe

GROUP LEADER:

GROUP MEMBERS:

Part 1:
THREE COUNTRY ISSUES AND COURSE OF ACTIONS OUTCOME(S)
GEOGRAPHIC CHALLENGES IN TERMS OF 4Ps (IF
REGIONS APPLICABLE)

WESTERN EUROPE FRANCE Jose Bove led a protest Executives hired an As McDonald’s location in
against the architecture firm to develop france undergo style
construction of the 851st
new restaurant designs and makeover, some
french MC Donalds.
Bove told the press that
reimage the french Franchisees report sales
the group had single operations. A total of 8 increases of 10 to 20
out Mcdonald’s different themes were percent.
because, in his words, It developed that the
is a symbol of the restaurants don’t look like
America, “ the place
McDonald’s elswhere
where they not only
promote globalization
and industrially
produced food but also
unfairly penalize our
peasants”

Other countries UNITED STATES OF disappointing In June 2002, Charlie Bell, a Mcdonald’s total stock
AMERICA financial results led former executive at return for the 3-year
to a management McDonald’s and company period 2007 through 2009
shake up in 2002 announced that I had to was the highest among
because the recent picked the phrase “ I’m Lovin’ the 30 companies that
advertising theme It” as its new global comprise the Dow Jones
“smile” was trashed. marketing theme. Several Industrial Average. The
 Part 2:

Discussion Questions

1. Identify the key elements in McDonald’s global marketing strategy. In particular, how does McDonald’s approach the issue

of standardization? Does McDonald’s think global and act local? Does it also think local and act global?

- localization, McDonald's adapts its menu to local tastes and cultural preferences, introducing regional menu items and

modifying existing menu items to suit local preferences.

- Franchise system, McDonald's operates as a franchise, allowing local entrepreneurs to own and operate McDonald's

restaurants in their local markets. This model allows for greater localization and cultural sensitivity.

- McDonald's uses global advertising campaigns, such as its "I'm Lovin' It" campaign, while also tailoring its advertising to

local markets.

- Fast and Convenient campaign, the portfolio of products offered by the company has undergone significant change to

meet new trends in the food market. Restaurant renovations at McDonald's to provide a branded, modern, and more natural

dining atmosphere
 -In terms of standardization, McDonald's keeps its core menu the same in all of its markets. This strategy enables

operational effectiveness, consistency, and a standardized brand identity. McDonald's adjusts its menu to accommodate local

tastes and cultural preferences, but it also acknowledges the significance of these considerations.

- overall, both "think local, act global" and "think global, act local" apply to McDonald's strategy. The business

accommodates regional tastes and cultural preferences while preserving its worldwide brand identity and core offering. With the

help of this strategy, McDonald's has been able to effectively enter new markets while retaining its status as one of the most well-

known and prosperous fast-food companies in the world.

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?

- Government officials' and customers' impressions of McDonald's in developing countries can change depending on a

range of factors, such as local fast food customs, how such cultures see international companies, and economic reasons.

- In China, for example, McDonald's has faced increased competition from local fast-food chains, such as KFC and Pizza Hut.

However, McDonald's has also been able to adapt to local tastes and preferences, introducing menu items such as the McSpicy

Chicken Burger and taro pie.

for India. McDonald's has had to adapt to local cultural and dietary preferences, such as offering vegetarian options and avoiding

beef. The company faced some challenges in the country in the late 2000s due to a dispute with a local franchisee, but it has since

re-entered the market and continues to operate there.

- In Moscow, Russia. the first McDonald’s was built on Pushkin Square. It has 700 indoor seats and another 200 outside

- Overall, government officials and consumers in developing countries may have mixed feelings towards McDonald's. While

some may welcome the company as a symbol of global commerce and modernization and accept the westernized style of fast

food that Mc Donald's bring. Although there have been some conflicts and protest. Ultimately, the success of McDonald's in these

countries will depend on its ability to adapt to local cultures and preferences while also maintaining a consistent brand image.

3. The Plan to Win initiative is built around five factors that drive McDonald’s business: people, products, place, price, and

promotion. As a student of marketing, what can you say about these factors?

- As a student of marketing, I can say that the five factors of people, products, place, price, and promotion are the 4ps

marketing mix with people are crucial elements of McDonald's marketing strategy and are integral to the success of the Plan to
Win initiative. These five factors work together to create a comprehensive marketing strategy that allows McDonald's to maintain

its position as a leader in the fast-food industry. By prioritizing its employees, investing in product development and quality

control, selecting strategic locations, offering competitive pricing, and promoting its brand, McDonald's can attract and retain

customers around the world.

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? Visit the

Web Site

- Any well-known company, as including McDonald's, cannot develop globally without periodically making errors or

causing controversy, thus it is unrealistic to expect them to do so without doing so. Different cultural values, governmental

policies, and consumer tastes are just a few of the particular difficulties that come with expanding into new areas. Companies

may nevertheless run into unforeseen problems that lead to errors or controversy despite thorough market research and cautious

planning.

- Anti-globalization activists view McDonald's as a representation of the unfavorable effects of globalization, such as the

dominance of Western culture and the exploitation of labor and resources in developing nations. It's crucial to remember that
while some individuals may be against McDonald's and other multinational corporations, many others welcome them as a source

of employment, economic progress, and cross-cultural interaction. In the end, the success of McDonald's and other multinational

corporations depends on their capacity to negotiate these challenging situations and forge connections with clients and

stakeholders everywhere.