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globalization impact on McDonald’s stakeholders
mcdonalds case study marketing
globalization impact on McDonald’s stakeholders
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McDonald’s in India
In America, we consider McDonald’s to be a beef serving, sometimes fatty fast food restaurant, but after a 6 year business plan to sway the Indian population, McDonald’s has transformed. If they can continue this growth in India, and all over the world, globalization will start to love McDonald’s even more. They seemed to have hit the right points, from playing it safe, investing their time doing marketing research, to find the best places to put a restaurant and finding out what it is that people in India like to eat. This is what has separated McDonald’s from the rest of the
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They could not continue to control the economy, and by 1991 they basically had to allow less government control than before, and they started to become a little bit more market-based. This meant that they were going to have to accept MNC’s in order to stimulate their economy. Unlike other Western Restaurants, they did not just rush right in and try to make some quick cash. McDonald’s took the time and effort in creating a very successful business plan. Just like in America, McDonald’s has created funds to help Green Sensitivity, in order to counter the activists in India. They have made this move in the Western stores as well, giving different ways to create an active and healthy lifestyle. They have sponsored sports activities, given different foods to eat and enjoy, such as the baked and toasted options now becoming more available. They have decreased political risk, by doing basically whatever they think will make the government happy. They employ many people, they have a 50/50 ownership with 2 Indian men, they have helped the poor transportation system which needed to be improved, they have given many different companies business that couldn’t have done so …show more content…
One of the first restaurants was in Delhi which is an urban area typically in a setting that attracts younger, more affluent and English speaking people. Another place was in Mumbai, which is near the beach and holds the same type of people. Instead of having rural areas, they needed urban society to be the consumers of their product. For the farming and rural people however, they had to be awfully close to the restaurants due to bad transportation systems. They were able to train the farmers and they could produce more healthy and better food efficiently. They still want to attract middle-low class families in India, so they have a very smart pricing strategy. While many older families believe that McDonald’s is only for the rich, McDonald’s menu is 80-20 which shows the pictures of the food, rather than the explanation. They believe that if a less-well off person tries one of their less expensive meals, if they like it they were spend a few more dollars next time on more expensive treat. This also ties back to the family-centric attitude, because many parents would happily buy their kid an ice cream cone or a Lego happy meal so that they can leave them
McDonalds are most heavily located in North America, East Asia and Europe due to the fact that these continents have better economies; therefore they can afford the popular food chain restaurant. On the other hand, Africa and Central Asia do not have nearly as many McDonalds because their economies are weaker than North America, East Asia and Europe. Russia, being the largest country in the world in terms of landmass, only has 94 McDonalds’ while Brazil, which is not nearly the size of Russia, has 584 McDonalds’.
Mcdonalds is one of the biggest and largest fast food chains in America, it can be viewed as a cultural icon. The principles of McDonalds as a business has a tremendous influence on every aspect of a culture. The business characterizes American Culture through the impacts on our society and economy.
McDonald’s is all over the world, and with this advantage they have been smart to relate to what is considered a norm in the respectable nation they work in. “In this era of globalization, it is becoming increasingly important for businesses to leverage their brand equities across geographic boundaries” (Harish 22). McDonald’s does a great job by displaying them in different countries for their consumers because of the mission each McDonald’s is always to strive in their business for: Quality, Service, Convenience, and Value. McDonald’s is such a powerful company in the fast food industry that the China Puzzle reported that “In Hong Kong, 72 percent of people visit McDonalds, on average once a week” (China Puzzle 639). The article explained that this is McDonald’s most “penetrated and mature markets in the world.” The reason why that number is so high for McDonald’s is because the core targets young adults who look to be “cool” and stay up to date with all the big trends such as the Chicken Nuggets with different sauces in a random
If you ever ask a person where the nearest McDonalds is at they’ll most likely show you the directions to at least four different locations in an instant. McDonalds is one of the largest and leading fast-food chains originating in the U.S., having at least 10,000 restaurants in America alone. McDonalds is such a huge part of America that if you ever go to a different country it wouldn’t be a surprise for at least one person to associate the fast-food chain with America. And McDonalds isn’t the only fast-food chain that originated in the U.S., there is also Burger King, Wendy’s, Taco Bell, Pizza Hut, and also KFC. All of these major restaurants are constantly being built in every state, every town, and every street
mcdonalds is not exactly a quality food source, is a convenient and cheep source of food. but cheap food comes at a greater cost...inhumane!!
A world without the Big Mac, Happy Meals, Chicken McNuggets, and the phrase “I’m lovin’ it,” is almost inconceivable. People around the globe have become accustomed to the high gleaming golden arches that make up the famous emblem for McDonald’s. McDonald’s has grasped the concept that culture flows from power. In this case, the American culture flows through the veins of this fast-food giant and the more that is supplied, the greater the demand. It is no secret that McDonald’s has become one of the world’s largest fast-food retailers. It has become a well known icon that has played a huge part in globalization, with chains located in many different countries… transforming the meaning of fast-food all around the world.
According to Royle (1999) McDonald’s is a very large multinational enterprise (MNE) and the largest food service operation in the world. Currently the company has 1.5 million workers with 23,500 stores in over 110 countries with the United Kingdom and Germany amongst the corporation’s six biggest markets, and over 12,000 restaurants in the United States. In 1974 the United Kingdom corporation was established and in 1971 the Germany corporation was established, currently the combined corporation has over 900 restaurants and close to 50,000 employees in each of these countries (Royle, 1999).
...ndustry well established in Canada, McDonalds’ traditional competitors have all found their own niche. Their constant changes are more directed at customer satisfaction then keeping inline with their competitors.
Worldwide, there is over 33 thousand Mcdonalds restaurants in 119 countries and serve more than 50 million people each day. As the McDonalds corporation expanded so did the culture of fast food around the world. The American menu consisted of foods such as hamburgers, fries, shakes, and nuggets; but with it being in most countries, there are now different variations of the once all American menu. Desayuno Especial Mexicano Mexico: Spicy Mexican scrambled eggs, sausage and McMolletes – English muffins topped with refried beans, cheese and salsa. There is also the Rye Vegetarian Burger from Finland and the Pizzarotto from Italy. Not on your typical Mcdonalds menu, right? Countries have added to the Mcdonalds menu to adjust to meals that are popular in their culture as well. Thus, cultural diffusion.
"Studying McDonald's ABroad: Overseas Branches Merge Regional Preferences, Corporate Directives." Editorial. Nations Restaurant News 11 Nov. 2005: n. pag. MasterFILE Premier. Web. 5 Mar. 2013.
They are in a very similar position to the U.S., very rapidly increasing obesity rates, and their lifestyles are being geared toward speed and convenience. With India, they mostly replicate China, the industry is growing rapidly and more international influences are coming in changing the industry. In both KFC and Mcdonald 's are the leading industries. In America, the fast food trend is changing not only its economy, but its landscape, workforce, and popular culture as well. KFC and Mcdonald 's are also leading industries. Fast food, the real, global meal. By people, for
McDonalds also uses diversification in its global marketing. McDonalds recognizes that different countries have different values, customs, and tastes. Therefore, McDonalds satisfies these diverse global tastes by diversifying the menu according to each country’s unique preferences. This added diversification tactic, allows McDonalds to stay competitive in a global market. Examples of McDonalds globally diversified menu would be that McDonalds offers an exclusive beefless menu to its customers who live in India. This is because eating beef in India is sacrilegious. To meet the tastes of customers in India, McDonalds created new offerings such as the “Pizza McPuff” and the “McVeggie.” McDonalds considers the cultural tastes in every country it opens its doors
With strength ultimately comes weakness and McDonald's has its fair share, especially in the last few years. Many weaknesses are due to the external environment which includes market saturation, increased price competition, and food and labor costs. These weaknesses affect many firms in the fast food industry so McDonald's is trying to effectively combat these forces using a differentiation strategy. Developing new products such
In today’s market, McDonalds faces numerous challenges such as fierce competition, a more health conscious customer, and the continual need for improved customer satisfaction and menu. McDonalds needs to go through some changes in order to remain ahead in the fast-food industry.
McDonald’s is one of the popular fast food chains in Hong Kong and the success of McDonald’s is due to it is able to create a homogeneous “global” culture that suit to the demands of a capitalist world. In Hong Kong, Time is money thus McDonald’s strategy is consistently fit to the fast food industry. The company has both economic strategy targeting at customer globally and locally.