Mcdonald's Global Growth

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Question 1.................................................................................Page 2 Question 2.................................................................................Page 3 - 6 Question 3.................................................................................Page 7 - 9 Question 4.................................................................................Page 10 - 11 Question 5.................................................................................Page 12 - 14 Question 6.................................................................................Page 15 - 16 Bibliography..............................................................................Page 17 - 18

Question1
Outline reasons for the fast global growth of McDonald’s.
There are two major drivers of globalisation: declining trade and investment barriers and technological change. The rapid growth of McDonald’s is due to the skill and competence of them and also the appeal of their product. The combination of local knowledge and entrepreneurial spirit of the franchisee is one of the reasons for McDonald’s fast growth. 80% of McDonald’s is Franchise owned. McDonald’s Big Mac hamburger is or is supposed to be the same everywhere in the world; this means the consumer is familiar with the brand and will buy it. McDonald’s used standardised promotion methods. McDonald’s turned away from an unchanged menu to a menu that is trendy and innovative. McDonald’s change its menu to keep up with the new trend of eating healthy. McDonald’s expanded its menu and extended its store hours. They benefit from the trade down of consumers from more expensive eating places. McDonald’s growth is due to finding good real estate locations, management of distribution and it’s skill in making products of consistent quality. McDonald’s invest in their staff by providing on the job training because they realise that the staff is the face of the business and must sell the product to the consumer. They provide employment to local people within the various countries. McDonald’s trained local people for management positions. According to an article “Macdonald’s success Strategy and global expansion through customer and brand loyalty” socially responsible actions and efforts have given McDonald’s a long-standing and distinguished record for diversity-as an employer, franchiser, and purchaser of goods and services. Before McDonald’s enter a country they do proper market research. They ensure that they are familiar with the country’s social, cultural, economic and technological situations. According to an article “Macdonald’s success Strategy and global expansion through customer and brand loyalty” McDonald’s success is due to them thinking global but acting local. McDonald’s ensure that they are familiar with the different countries preferences when it comes to food. McDonald’s core values are quality, service, cleanliness and value. These values combined with localisation have positioned them as one of the market leaders. They also give financial donations to local organisations within the various countries to boost their image within the various countries.

Question2
McDonald’s needs to adapt to different cultures and conditions when it sets up business in different parts of the world. Gaining cultural awareness has been a centuries-old need for anyone involved in international business. It is important to understand the language of a country as well as the ability to speak it. There are two kinds of knowledge about cultures. One is factual knowledge about the culture and interpretive knowledge. The dynamic character of culture is significant in assessing new markets even though changes face resistance. Cultural misunderstandings can raise havoc to the best business plans. Cultural differences can cause four kinds of problems in international business negotiations, at the levels of language, nonverbal behaviours, values and...
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