Lesson #1, Assignment #2:
Chapter 1 Case Study
Review Case 1-1 on pages 35-38 of your text and address the following questions in a brief essay of 250-300 words: CASE 1-1: McDonald’s Expands Globally While Adjusting Its Local Recipe Today, McDonald’s golden arches are one of the most recognized symbols in the world, just behind the Olympic rings. While growth within the U.S. has slowed, the picture outside the U.S. has appeared brighter, until recently. However, globally, taste profiles and consumer desires are changing. McDonald’s has responded to these changes by altering their basic products (when necessary) to fit the requirements of the local markets. While not always successful, it has proven to be a winning strategy. 1. Identify the key elements in McDonald’s global marketing strategy (GMS). In particular, how does McDonald’s approach the issue of standardization? 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? 3. At the end of 2003, McDonald’s announced it was selling the Donatos Pizza unit. Then, in 2006, the Chipotle chain was spun off. In light of these strategic actions, assess McDonald’s prospects for success beyond the burger-and-fries model. 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? ANSWERS:
Q1. Identify the key elements in McDonald’s global marketing strategy (GMS). In particular, how does McDonald’s approach the issue of standardization? ANS:
Hamburgers, fries, and soda’s popularity is rising globally which supporting Levitt’s opinion of the global village. Also, the diners themselves offer the customers a chance to try for themselves a fast food legend. Though, students should point out that, in many...