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case study

"I'm Lovin' It"—Around the World: A case study


of McDonald's "Glocalization"
By Mahmood Khan and Maryam Khan

Introduction wrap line with the Angus Snack Wraps allowed customers to enjoy
“Can you imagine a world without the Big Mac? Or Chicken their popular burgers in a smaller, more portable fashion. Today’s Mc-
McNuggets? Or Happy Meals?” This is the starting line of one of the Donald’s website labels 10 “core menu items.” They are: hamburger,
McDonald’s website. McDonald’s the world’s leading food service cheeseburger, Big Mac ®, Quarter Pounder ® with cheese, Big N’ Tasty
retailer has more than 33,000 restaurants serving nearly 68 million ®, McDouble®, Filet-o-Fish ®, Chicken Selects ® Premium Breast Strips®,
people in more than 119 countries every day. Glocalization, a newer Chicken McNuggets ®, and French Fries (McDonalds Corporation,
term used to show the localization of corporations globally, is getting 2011).
popular due to a variety of reasons. The restaurant industry has been
McDonald’s Dilemma
foremost in this process with McDonald’s leading the way with several
With rapidly expanding global markets, McDonald’s have to de-
well-known fast food chains such as Starbucks and Dunkin’ Donuts
cide which countries to enter in order to serve growing world markets
(Jargon, 2011). McDonald’s have more than 32,000 locations in 117
as well as to gain the first mover advantage. However, they have to
countries and employ 1.7 million people (Jargon, 2011).
decide whether to use the standard menu used in the United States or
McDonalds divides countries into four different segments: United
to modify in order to suit the local tastes. If they have to modify any
States; Europe; Asia/Pacific; Middle East and Africa (APMEA); and Other
menu items, what is the degree to which modifications can be made,
Countries and Corporate. The U.S., Europe and APMEA segments ac-
without losing the McDonald’s brand image. In short, they had to
count for 35%, 41%, and 19% of the total revenues respectively. Under
tread slowly making changes and meeting the enormous challenges
the Europe segment, France, Germany, and the United Kingdom
embedded in domestic and international requirements. From the
make up for about 55% of revenues. Under the APMEA segment,
following discussions it will become apparent as to how McDonald’s
Australia, China and Japan make up more than 50% of the revenues.
menu changes were incorporated considering various elements.
McDonalds’ “major markets” include U.S., Canada, France, Germany,
U.K., Australia, China, and Japan, which together make up 70% of all Objectives
McDonalds revenues. According to 2010 annual report, global compa- Considering the large number of countries in which McDonald’s
rable sales growth was 5% with 11% earnings per share growth. The is located and the prevalence of prevalent differences, this case study
average number of customers served every day was 64 million (Mc- highlights some of the adaptations that were necessary to co-align
Donalds Corporation, 2011). with local consumer tastes and preferences. Menu offerings and ser-
vice styles in selected countries are analyzed highlighting the most
Menu Item Stategy
salient features and how these adaptations align with the prevalent
McDonald’s business model is designed to enable delivering of
food tastes and preferences. Items which are newly introduced and
consistent locally-relevant restaurant experiences to customers and
are different for the respective populations are also mentioned. Possi-
be an integral part of the communities. It facilitates their ability to
ble reasons for these adaptations or modifications are included in the
identify, implement and scale innovative ideas that meet customers
discussions of each country’s menu offerings. Each country’s adapted
‘changing needs and preferences.’ In 2010, McDonalds continued
menu offerings are compared with the core menu items served in the
to enhance the customer experience by remaining focused on the
United States highlighting significant changes. In short, examples of
Company’s key global success factors of branded affordability; menu
selected countries illustrate the menu adaptations to suit the socio-
variety and beverage choice; and convenience. Their financial perfor-
cultural, religious, food preferences, and environmental conditions.
mance is attributed to several factors including core menu items like
Using McDonald’s as an example, the primary focus of the study is on
Chicken McNuggets and burgers. In addition, extending the snack
how adaptations have to be made in order to compete as well as at-
tract foreign markets. The points of learning and discussions are (a) to
Mahmood Khan is affiliated with Virginia Polytechnic Institute and State realize the importance of socio-cultural, religious, food preferences,
University and Maryam Khan is affiliated with Howard University.

Journal of Hospitality & Tourism Cases 65


and environmental factors in entering foreign markets, (b) to under- reasons. This was solved by providing two different kitchens and in
stand the complex nature of factors that can impact the selection of some locations different servers and serving areas. The “green” areas
menu items, (c) to appreciate the diversity among different nationali- are devoted to vegetarian items whereas “red” areas are for meat
ties, (d) to adapt menu to suit different tastes and preferences yet items. Special care is taken to see that there is no contact with meat
preserving the brand image, (e) to realize that the impacting factors items in vegetarian areas. Even the mayonnaise is prepared without
vary from country to country even within the region and (f ) to develop using eggs. Also, the uniforms and serving areas are segregated in
strategies based on local competition and markets. All these aspects selected restaurants. One of the major advantages of development of
lead to discussions that can broaden the scope of learners to under- these adapted vegetarian items was realized when European countries
stand the rapid growth of globalization. had the scare from Mad Cow disease, Foot and Mouth sheep disease,
India and avian flu, and people were afraid of eating meats. It was very
handy for McDonald’s to include tested vegetarian items among menu
Majority of the over billion population in India follow Hinduism
choices.
which requires its followers to be vegetarian and avoid beef, due to
their belief that cows are sacred. McDonald’s adapts its restaurants All of the adaptations were made to comply with consumer pref-
in India to local tastes, in a nation that is predominantly Hindu and erences since Indian demand for meals from the major food chains is
reveres the cow (Bellman, 2009). In addition, the largest minority growing at a double-digit rate with the annual total sales exceeding
population consists of Muslims who cannot eat pork or pork products. one billion dollars. As in other emerging economies McDonald’s also
The elimination of beef and pork items from menu was a critical issue faces tough competition from domestic chains such as Nirula’s as well
and major hurdle for McDonald’s since their most popular items in the as US franchises particularly KFC, Subways, and Pizza Hut (Keegan &
United States are based on meats. Consequently, they had to elimi- Green, 2013). Despite protests from Hindu religious activists, McDon-
nate hamburgers from the menu and introduce vegetable or chicken ald’s drew large crowds during its first opening in India. Since activists
based items. The challenge was to device a new item which met the accused McDonald’s for using beef tallow in its cooking, the manage-
requirement yet resembled the core products that are offered by Mc- ment responded by posting signs reading “No beef or beef products
Donald’s. They tested and introduced an item labeled “Maharaja Mac,” sold here.” (Keegan & Green, 2013). McDonald’s have a McDelivery
which is a version of the Big Mac, originally made with lamb meat and service in India.
now offered with chicken. It is made with two grilled chicken patties China
and topped with onions, tomatoes, cheese, and a spicy mayonnaise. Breakfast menu includes ham, egg, pancakes, and cheese sand-
This proved to be one of the most popular items served by McDonald’s wich on an English muffin. No cake, bagels, croissants, pastries or
in India. Actually the presence/success of McDonald’s in India marked salads are included. Chicken is the most preferred meat although
the beginning of globalization. McDonald’s initiative to adapt the beef burgers are also popular. In fact, Big Mac and cheese burgers
burger to meet the Indian taste was widely appreciated, visualizing the are the only beef options. Chicken burgers are very popular although
transformation of Big Mac to Maharaja Mac ® (Kulkarni & Lassar, 2009). thigh meat is used compared to the breast meat used in the West.
For breakfast “VegPizzaMcPuff” is offered, which is a sort of hot pocket Chicken McNuggets as well as McWings come with chili spicy garlic
with tomato and cheese type filling. Lunch or dinner menu include sauce. For the Chinese New Year a Grilled Chicken Burger, curly fries,
McVeggie®, a sandwich made with peas, carrots, green beans, red bell with several good luck tokens are offered. For lunch and dinner, in
pepper, potatoes, onions, rice, and a special blend of Indian season- addition to hamburgers, fish fillet, and chicken sandwiches a couple
ing topped with lettuce and vegan mayonnaise, all on a sesame seed of teriyaki chicken sandwiches are also offered. For desserts there is a
bun. Paneer Salsa Wrap (wrapped in flatbread and topped with a salad customized local offering known as “taro pie.” Taro is a plant native to
mixture which includes lettuce, red cabbage, and celery – with a veg- Southeast Asia whose roots and leaves are used for food in this region.
etarian mayonnaise, salsa, and cheddar cheese) is offered. Other items Taro is commonly used as a main course in China and Chinese cuisine.
include McAloo Tikki®, made of boiled potatoes and spices, which is Taro cakes are traditionally favorite delicacies during the Chinese New
also a very popular vegetarian hamburger. VegMcCurryPan®, is similar Year. Also around the Chinese New Year, Prosperity Burgers are of-
to pizza, is served on a rectangular shaped crust that is topped with fered. These are basically McRib sandwiches served with a spicy black
a creamy sauce and vegetables including broccoli, baby corn, mush- pepper sauce and onions. A chicken version of this sandwich is also
rooms and red bell pepper. It is a baked item with crisp crust and the available. Since rice is consumed at every meal, McDonald’s offers the
toppings come hot and bubbly (McDonald’s, India, 2012). choice of having rice as a side dish. Chinese do not prefer pickles, so
The next problem that McDonald’s had to face was the separation they are replaced with cucumbers.
of meat items from non-meat items, required criteria due to religious One of the most interesting observations in terms of service

66 Volume 2, Number 2
delivery was the use of the drive thru concept by consumers. Many con- is included can be added to the chicken and shaken before eating.
sumers would buy meal using the drive thru, park their cars, and come Teriyaki Chicken Filet-O is released only during the month of April.
inside the restaurant to eat. (Griffith 2008). McDonald’s had to provide The Ume Nuggets are chicken nuggets served with Ume sauce, a sour
information on the correct use of the drive thru service. As with India, plum sauce for dipping. Shrimp Thousand Island Wrap, contains salad,
China is also the fastest-growing market with an increasing number of shrimp and Thousand Island dressing. French fries can be ordered in
restaurant units every year. It is also home to the world’s largest McDon- barbecue, seaweed or Italian basil flavors, which are all very popular.
ald’s restaurant. The first Chinese location opened in mid-1992 situated Dessert items include an unusual Bacon-Potato Pie, which is like an
very close to the Tiananmen Square. In spite of having a 20-year lease, apple pie with mashed potatoes and bacon. Green-tea flavored milk-
McDonald’s had to vacate the site since the Beijing’s city government shake is a very different beverage offered in Japan to match the local
decided to build a complex city center at that location. In spite of this taste (McDonald’s Japan, 2012).
set back McDonald’s now has more than 1,000 units in China and plans The Japanese did not use hands while eating food prior to the
to open 600 new units by 2013 (Keegan & Green, 2013). arrival of McDonald’s in their country. This was a big adjustment for
Japan Japanese who are so particular about their culture. Ronald McDon-
ald’s is different in Japan, named Donald McDonald, and looks more
McDonald’s have adapted several items and modified their menu
items considerably utilizing the existing domestic popular Japanese like a Spiderman type of character. McDonald’s in Japan is ladling on
the calories -- an unusual strategy in a country known for its healthy
cuisine. In addition to common breakfast menu items, Salad Marinate
diet and longevity. McDonald’s Holdings Co. (Japan) Ltd. rolled out its
McMuffin (lettuce, marinated onions, cheese, bacon and red paprika/
Big America 2 campaign featuring burgers named after U.S. locales.
pepper), Bacon Lettuce Egg wrap, Mega Muffin (two sausage patties,
The Idaho burger features a quarter-pound beef patty, melted cheese,
a slice of cheese, an egg, some bacon and ketchup) are included. Also,
a deep-fried hash brown, strips of bacon, onions and pepper-and-
Chicken Caesar Wrap as well as the Fillet-o-Fish sandwich is offered as
mustard sauce. The calorie count: 713. The Texas 2 Burger -- with chili,
breakfast menu since Japanese prefer to have meat items for break-
three buns, cheese and bacon -- comes in at 645 calories. The 557-cal-
fast. Lunch and dinner menus contain several adapted menu items.
orie Miami burger has tortilla chips -- not as a side dish, but nestled on
These include Chicken-lemon and salt, and shrimp burger called the
top of the beef patty (Sanchanta, & Koh, 2011).
Shrimp Filet-O or Ebi Filet-O, served with Thousand Island dressing.
Japan seems to have pioneered a shrimp creation, dubbed as Saudi Arabia
the Ebi Filet-O, which was offered first in Japan and now by other Mc- Imported American restaurant concepts are more affected by re-
Donald’s restaurants in the region, mainly because of its popularity. It ligion in the Middle East than in any other region on earth. Depending
is a deep fried shrimp patty covered with a tangy, chunky sauce and on the level of orthodoxy that prevails in a particular Middle Eastern
lettuce. There is also a Mega Teriyaki Burger (ground pork sandwich country, restaurateurs must adjust their construction, purchasing and
with mayonnaise, lettuce, and teriyaki sauce) and a Teriyaki Mac Burger, operating standards - even their trade names - in varying degrees to
which are likely temporary promotional items. Another seasonal item accommodate religious sensitivities. Operators have to heed such is-
is the Tsukimi Burger (literally moon-viewing burger), a beef patty sues as pervasive food-purity protocols, intermittent prayer breaks,
topped with bacon, one poached egg, and mayonnaise-ketchup and intolerance for alcohol as well as gender mixing (Martin, 1998).
sauce, served before or during the tsukimi (autumn moon) season; Being a strictly religious Muslim country no pork or alcoholic drinks
egg representing the moon. Koroke Burger, mostly served in winter, can be served. McDonald’s promote that 100% of their products are
is a sandwich with breaded mashed potatoes, shredded cabbage, and Halal, a term designating foods that are permissible according to the
katsu sauce, served with or without cheese. The quarter pounder is still Islamic law which has regulations related to animal slaughter, process-
called “quarter pounder,” even though Japan uses the metric system. ing, and additives. All products served at all McDonald’s restaurants
There is also a MegaMac, which has almost the double the amount of are inspected and approved by local authorities and Islamic inspectors
meat in BigMac. Croquette Burger and McPork are other meat items at the countries of export. They serve standard array of hamburgers,
offered for lunch/dinner. The Gracoro is an intriguing deep-fried veg- Filet-o-Fish, and chicken sandwiches. Chicken Big Mac is offered in ad-
etable milieu. Chicken items include Chicken Snack, which is a thin dition to regular beef sandwich. One of the special items is McArabia,
chicken breast breaded and fried – like a large flat chicken select in which is designed for serving in Arab countries. McArabia Kofta sand-
hash brown shape. Chicken Tatsuta is another chicken sandwich. They wich is an example of this modification which uses popular folded pita
also have something called a “Shaka Shaka chicken” to which a flavor bread instead of buns and contains barbecued style meats. It has two
(black pepper or cheese) is added and shaken before use. Actually this grilled chicken patties, Arabic pita style bread, lettuce, tomato, onion,
consists of little fried chicken pieces in a bag. The seasoning which and garlic sauce. People do not eat breakfast away from home and so

Journal of Hospitality & Tourism Cases 67


no special breakfast is served. Malaysia
Culturally there are stark differences in restaurant visits, eating Malaysia being a predominantly Muslim country all meats served
habits, and cultural/religious practices. The problems that McDonald’s has to be Halal and it is required by law that all restaurants are Halal
had to face in this country were/are unique including (1) they cannot certified and post a sign of that compliance. The country has people
hire women to work in restaurants; (2) women are not allowed to drive from three distinct cultures, Malays, Chinese and Indian. Since Mus-
or mix freely with men, (3) a separate line or a screened section has to lims cannot eat pork and pork products, even the hamburgers are
be made for women who want to carry out meals since they cannot called “Beef Burgers” in order to avoid using the word ‘ham.’ Since
eat inside the restaurant, (4) restaurants can have a family section in almost 24% of the population is Chinese and they eat pork, whereas
selected areas but there are special requirements related to physical a sizable group from India does not eat beef, McDonald’s had to find
separation; (5) restaurants have to close down for prayer times which is menus that are acceptable to all. Hence they selected many chicken
observed at least four times during the operation times; (6) restaurants items. Breakfast is pretty traditional, having the regular egg sandwich
have to stop operation for a month during daytimes in fasting month allotment, Egg McMuffin, hot cakes, and hash browns, but they also
of Ramadan, (7) all meats served has to be Halal, (8) Pork or pork prod- offer Filet-o-Fish as a breakfast option.
ucts cannot be served at all, (9) music is not allowed in any restaurant For lunch and dinner in addition to regular items McDonald’s
and (10) there is a heavy traffic of international pilgrims arriving in serve Spicy McChicken deluxe, and two items which are typically Ma-
groups at different periods of time. Above all McDonald’s have to face laysian and Indonesian type. These are Ayam GorengMcD and Bubur
tough competition from local restaurants particularly Al-Baik® which Ayam. Ayam is the Malay term for chicken and so Ayam GorengMcD is
serves excellent food at a reasonable price and is one of the most fried chicken which is marinated and simmered in a flavorful mixture
popular eating establishment in some parts of the country. In spite of of spices and herbs, comes either regular or spicy. Also a favorite Indo-
all the requirements and restrictions which McDonald’s does not have nesian item Bubur Ayam is served which are chicken strips in porridge
to face in many countries, they are growing rapidly in Middle Eastern garnished with spring onions, sliced ginger, fried shallots and diced
countries. Due to the growing teenage population and the economic chilies. There are no special dessert items although a fruit cup or a
well-being there is a considerable potential market for quick service corn cup is available. McDonald’s does have a McDelivery service in
restaurants (McDonald’s KSA, 2012). Malaysia. Muslim workers, particularly females wear hijab or head cov-
Germany er and they are prohibited to show their elbows. This was a concern
The menu items offered in Germany tends towards more for McDonald’s since they require half-sleeve shirts for efficient hand
European style with breakfast consisting of croissants and ham com- movements. However they have to allow head cover and long sleeve
binations. Included in the offerings are Egg McMuffin type of options shirts to be worn by female workers (McDonald’s Malaysia, 2012).
and a McGriddle item. Some of the English muffin sandwiches, such France
as McMuffin, fresh chicken with a breaded patty, also include meats McDonald’s in France had to be careful being in the culinary capital
which would traditionally be included for lunch. For lunch or dinner of the world. McDonalds France is notable in the lack of a line of various
in addition to a Filet-o-Fish, Big Mac, Hamburger Royal, Veggieburger, breakfast sandwiches (such as sausage, egg, cheese, bacon, on bagel
Chicken McNuggets, the menu includes McRib, which is seasonal in or muffin). It does not serve French fries, instead they serve Les Deluxe
America (McDonald’s Germany, 2012). Potatoes, which are potatoes cut into wedges as opposed to thin sticks.
McDonalds in Nuremburg sells the Nuremburger, a mini brat- McDonalds serves a variety of chicken sandwiches. One of the special
wurst sandwich with three Nuremburg style sausages, grilled onions items is CroqueMcDo, two melted slices of Emmental cheese and a slice
and mustard. Bratwurst has its origin in 1300s and a variety of sausag- of ham toasted between two flattened hamburger buns. Besides the
es are very popular in Germany. Although beef and poultry are main potatoes they serve a little pack of cherry tomatoes as a side order. Their
varieties of meat consumed in Germany, pork is the most popular line of burgers is basic, but the desserts are more defined and include
meat. A long tradition of sausage-making exists in Germany, includ- mousse and fruit crumbles, as well as a slice of pineapple for the health
ing hundreds of regional variations. McDonalds introduced Shrimp conscious consumers (McDonalds France, 2012).
Lemon burger which combines shrimp patty with lettuce and garlic- In France the fast-food giant is gearing up to offer a burger served
lemon sauce on herbed wheat bun. McDonalds serves McBeer, cold on a baguette, part of a wider effort to add more locally inspired fare
beer served in glasses not stein, in order to appeal to the local markets to its menu and attract more upscale diners. For six weeks starting
and outlets in selected European countries. April 18, 2012, the 1,228 McDonald’s restaurants across France will
feature the McBaguette, with a burger made from France’s famed

68 Volume 2, Number 2
Figure 1
Selected factors to be considered in menu offerings

Charolais beef and. topped with French-made Emmental cheese Brazil


and mustard. In France that involves tapping into a national obses- For breakfast in addition to regular sandwiches, ham croissant, Pao
sion: bread. France’s national Bread Observatory, which studies and de queijo (traditional Portuguese cheese bun), Pao na Chapa (a fresh
promotes bread, says the French each consume about 5.3 ounces of French baguette type bread) are offered. The lunch in Brazil is gener-
it a day, or roughly 121 pounds a year. Many of them eat it with most ally a large meal compared to dinner. Lunch is considered as a time
meals, viewing bread almost as an extension of the knife and fork in for sharing food with family and friends. Also, table manners are more
pushing food around on the plate (Issard, 2012). important and many shy away from eating while walking, riding, or
Austalia conducting other activities. For lunch or dinner most of the core menu
Australian’s food preferences are influenced by being in the Pacif- items are included. Snacks and dessert also include yogurt parfaits and
ic Rim region and so they like Thai, Chinese, Vietnamese, and Japanese carrot sticks. Juices include grape, orange, passion fruit, peach or co-
cuisine. For breakfast, in addition to McMuffins, Boston deli Bagel conut. Cheddar McMelt is a classic all-beef patty, with cheddar cheese
(tomato, bacon, egg, and avocado on a bagel), a NYC Benedict bagel and chopped onions, grilled with onion sauce and put on a whole
(bacon, egg, and hollandaise sauce on toasted bagel), a Bakehouse wheat bun. Combined with the savory soy sauce and sharpness of the
Brekkie Roll (two rashers of bacon, egg, cheese, potato roasti, and cheddar cheese it provides a special burger which is a favorite among
onion relish on a sourdough roll) and a rosti brekki wrap (bacon, egg, Brazilian customers. A relatively new sandwich McCalabresa is made
cheese, a potato rosti and BBQ sauce) are available. Another sandwich up of a sausage patty and seasoned with vinaigrette sauce. This was
Down Under Deluxe is a home-style burger. All lunch/dinner sand- inspired by a popular Brazilian street food (McDonald’s Brazil, 2012).
wiches are served on deli style rolls. In addition to regular beverages Guatemala
and milkshakes they have a flat white. This is made by pouring micro In addition to regular items for breakfast the menu includes
foam or steamed milk over a single or double shot or espresso (Mc- burritos, scrambled eggs, corn tortillas, sausage, refried beans, fried
Donald’s Australia, 2012). plantains, sour cream, and Chirmol (Guatemalan tomato sauce). This
Russia portrays regular Guatemalan breakfast items. There is no fish on the
In addition to regular breakfast menu items a Blinchiki is offered, menu. Pollo McCrispy, plain fried chicken, is a popular menu item.
which is essentially Russian crepes served with jam (strawberry or Wedged McPatatas in addition to French fries is also available. Tortilla
apricot) and honey. There are also “Ham and Cheese Toast” which are chips are put on sandwiches. Chicken sandwich are available with
ham-and-cheese or plain cheese sandwiches served on round toasted guacamole on it. For desserts there is a variety of pies including coco-
flat bread. A variety of hamburgers, chicken, and fish sandwiches are of- nut pie (McDonald’s Guatemala, 2012).
fered. Beef a la Rus, is a special beef sandwich which includes beef, fresh South Africa
tomatoes, salad (lettuce), aromatic cooked onions, all on fresh toasted In 1995, McDonald’s made its first venture into sub-Saharan
bun with a special sauce. Special side items include Cheese Nuggets or Africa. However, by the time the first McDonald’s restaurant it was
deep fried Brie wedges. Usual dessert including McFlurry, milkshakes, clear that it was entering a rather unusual market. It had to face a
cherry pie and muffin are offered (McDonald’s Russia, 2012).

Journal of Hospitality & Tourism Cases 69


long drawn legal case related to its trademark. By then South Africa’s menu adaptations?
fast-food companies had built up several strong homegrown brands, • What other factors are important that should be considered by
specifically catering to South African tastes. Nobody at McDonald’s restaurants planning to enter foreign markets?
realized how difficult it would be to break in (Anonymous, 1997) • Discuss the importance of socio-cultural factors for being suc-
Not only were South Africans relatively isolated from the ad- cessful in foreign markets.
vertising of global brands, but they had grown to know and love • Considering the rapidly growing globalization, giving examples
their own. McDonald’s had therefore to work hard to establish its of countries that are not listed in this case study, discuss some
name (Anonymous, 1997). In South Africa, McDonald’s introduced other factors that need consideration.
its standard worldwide menu, which offered hamburgers with a few • Do you consider McDonald’s actions will lead to standardiza-
chicken products as an alternative. This was an odd choice for a market tion of menus worldwide and will cannibalize special culinary
where roughly two-thirds of food sold by McDonald’s competitors delights offered by other countries?
was chicken, not beef. A “Grilled Chicken Foldover” that resembles • How can local business compete with rapidly developing for-
“McArabia”and a McVeggie burger made from chickpeas are included eign franchise businesses?
in the menu items. In addition to McFries it offers a corn cup. Cornetto • What are some countries where it will be impossible to succeed
Sundae which is a brand of ice cream is available in either chocolate or without menu modifications?
strawberry flavors. The complexity in menu offerings is indicative of • Discuss pros and cons of glocalization.
the country’s diverse population (McDonald’s South Africa, 2012).
References
Conclusion Anonymous. (1997). Johannesburgers and fries. The Economist. Sep 27, 1997,
Vol. 344 (8036), p75.
An analysis of the menu adaptations discussed in selected coun-
Bellman, E. (2009). Corporate News: McDonald’s plans expansion in India. Wall
tries it becomes evident that socio-cultural, religious, food preferences Street Journal (Eastern Edition), New York, June 30, pB4.
and environmental factors need careful consideration before enter- Griffith, W. (2008). McDonald’s has a big appetite for China. CNBC. Aug 15, 2008.
ing a foreign market. These factors are in addition to some rather http://www.msnbc.msn.com/id/26226387//.
tough competition from local businesses. In socio-cultural factors Issard, M. (2012). Corporate News: To Tailor Burgers for France, McDonald’s
Enlists Baguette. Wall Street Journal (Eastern edition). New York, Feb 24,
food habits, socialization, and values are important considerations.
2012, pgB4.
For example in some countries, such as India and Brazil, people are
Jargon, J. (2011). Corporate News: Subway runs past McDonald’s Chain. Wall
not used to eating away from home. In Saudi Arabia because of the Street Journal (Eastern Edition), New York, December 13, pgB1.
hot environmental conditions people do business at night and sleep Jargon, J. (2011). Corporate News: Subway runs past McDonald’s Chain. Wall
late which makes it difficult to have enough traffic for breakfast. Due Street Journal (Eastern Edition), New York, N.Y. March 08, pB4.

to religious restrictions beef and pork cannot be served in India or Keegan, W. J. & Green, M. C. (2013). McDonald’s expands globally while adjust-
ing its local recipe. In Global Marketing (7th Ed). Pearson Education, 30-32.
special meat processing is required in Saudi Arabia and Malaysia. If
Kulkarni, S. & Lassar, W. (2009). McDonald’s ongoing marketing challenge:
consumers are not familiar with certain items they try to avoid them. Social Perception in India. Online Journal of International Case Analysis.
There are special religious and national festivals when people prefer Miami. Jan 31.1 (2).
special meals. In China people are more used to having soups and McDonald’s Corporation. (2010). Annual report. Published by McDonald’s
rice. Due to environmental conditions some hot or cold items have to Corporation. Oak Brook, Illinois.

be included. Conveyance and transportation are problems in some McDonalds India. (2012). Various. Retrieved April 5, 2012. http://www.mcdon-
aldsindia.com/.
countries, which makes it necessary to provide delivery service. In cit-
McDonalds Australia. (2012). Various. Retrieved April 6. 2012, from McDonalds
ies like Beijing, Seoul and Cairo, armies of motorbike delivery drivers Australia http://mcdonalds.com.au/.
outfitted in colorful uniforms and bearing food in specially designed McDonalds China. (2012). Various. Retrieved April 5, 2012, from McDonalds
boxes strapped to their backs make their way through bustling traffic China. http://www.mcdonalds.com.cn/.
to deliver Big Macs and buckets of chicken wings (Jargon, 2011). Thus McDonald’s France. (2012). McDonald’s France. Retrieved April 6, 2012, Various.
in order to be successful a corporation has to tread softly considering http://www.mcdonalds.fr/.
McDonalds’s Guatamala. (2012). Various. Retrieved April 6, 2012, from
all these factors. An outline of selected items that should be consid-
McDonald’s Guatamala http://www.mcdonalds.com.gt/.
ered is shown in Figure 1.
McDonald’s Germany. (2012). McDonald’s Germany. Retrieved April 6, 2012,
Various http://www.mcdonalds.de/.
Discussion Questions
McDonalds India. (2012). Various. Retrieved April 6, 2012), from McDonald’s
• People in other countries would like to taste American foods; India http://www.mcdonaldsindia.com/.
do you think restaurants like McDonald’s should even consider McDonalds Japan. (2012). Various. Retrieved April 5, 2012, from McDonalds

70 Volume 2, Number 2
Japan, http://www.mcdonalds.co.jp/.
McDonalds KSA. (2012). Various. Retrieved April 6,2012, from McDonalds KSA
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