An Evaluation of the Market Entry Strategies Adopted by Mcdonalds in United Kingdom
Table of Contents 4. GLOBALISATION AT McDONALD’S 2 4.1 Industry Based view 2 4.2 Resource Based View 3 4.3 Institution based view 3 5. Evaluation of Market Entry Strategy into Uk 4 6. STRENGTHS OF THE MARKET ENTRY STRATEGY 5 7. Conclusion and Recommendations 7 7.1 Recommendations 8 7.1.1 Local Sourcing 8 7.1.2 Healthy Food 8 REFERENCES 8
AN EVALUATION OF THE MARKET ENTRY STRATEGIES ADOPTED BY McDONALD’S IN UNITED KINGDOM
4. GLOBALISATION AT McDONALD’S
The purpose of this study is to critically evaluate the market entry procedures that were followed by McDonalds in their entry strategies in United Kingdom. The researcher would focus the study on the activities that are undertaken by McDonalds in their growth strategies. The methodology that would be adopted by the researcher would be that of deductive approach where the data is analysed based on the proven theories that are existing in the areas of market entry. There are three ways through which the strategy can be analysed and they are Industry based view, Resource based view and Institution based view.
4.1 Industry Based view
The industry based view has been defined by Peng (2007) as the initial understanding of the company in terms of the operations that it undertakes. Like whether it is in high-tech or low-tech. Some industries are location bound and others are non-location bound. For example in the case of semi-conductor chips the location does not impact as the customers would not have any preference to where they are manufactured. However, in the case of foods they may have certain preferences, hence location becomes important.
In the case of McDonalds, as the company operates in the food industry, the raw materials that it sources and the manufacture coupled with the location becomes important for this kind of industry. When the company entered the United Kingdom market in the 1970s consumer awareness towards local sourcing was not so prevalent. However, with the advent of globalisation and the
AN EVALUATION OF THE MARKET ENTRY STRATEGIES ADOPTED BY McDONALD’S IN UNITED KINGDOM
4. GLOBALISATION AT McDONALD’S
The purpose of this study is to critically evaluate the market entry procedures that were followed by McDonalds in their entry strategies in United Kingdom. The researcher would focus the study on the activities that are undertaken by McDonalds in their growth strategies. The methodology that would be adopted by the researcher would be that of deductive approach where the data is analysed based on the proven theories that are existing in the areas of market entry. There are three ways through which the strategy can be analysed and they are Industry based view, Resource based view and Institution based view.
4.1 Industry Based view
The industry based view has been defined by Peng (2007) as the initial understanding of the company in terms of the operations that it undertakes. Like whether it is in high-tech or low-tech. Some industries are location bound and others are non-location bound. For example in the case of semi-conductor chips the location does not impact as the customers would not have any preference to where they are manufactured. However, in the case of foods they may have certain preferences, hence location becomes important.
In the case of McDonalds, as the company operates in the food industry, the raw materials that it sources and the manufacture coupled with the location becomes important for this kind of industry. When the company entered the United Kingdom market in the 1970s consumer awareness towards local sourcing was not so prevalent. However, with the advent of globalisation and the
References: Barney, J.B., (1986), Strategic Factor Markets: Expectations, Luck and Business Strategy. Management Science; 32, (10), pp. 1231–1241. Mahoney, J.T.; Pandian, J.R. (1992), The Resource-Based View Within the Conversation of Strategic Management. Strategic Management Journal; 15, (5), pp. 363–380. Conner, K.R.; Prahalad, C.K. (1996), A Resource-Based Theory of the Firm: Knowledge versus Opportunism. Organization Science; 7, (5), pp. 477–501. Peng, M.W. (2007) Global Strategy, Understanding and Leveraging the Rules of the Game, University of Texas. Aaker, D., (1995) Strategic Marketing Management, 4th edn, New York: John Wiley & Sons. Proctor, T., (2000) Strategic Marketing: An Introduction, London: Routledge