The McDonald’s is the global fast food giant, introduced in 1940, in San Bernardino, California by Dick and Mac McDonald of Manchester, New Hampshire. It places its headquarters in Oak brook, Illiona US. Their introduction of “Speedee Service System” in 1948 established the principles of the modern fast food restaurant. It revolutionized the American restaurant industry by imposing discipline on the production of hamburgers, French fries, and milk shakes. The McDonald’s Corporation’s earns revenue as investors in properties, as franchiser and as an operator of restaurants. 15% of McDonald’s restaurants are owned and operated by McDonald’s corporation directly, while the others are operated through variety of franchisee agreement and joint ventures. In addition to ordinary franchise fees, supplies, and percentage of sales, McDonald’s also collects rent, partially linked to sales. Forty eight years down the line, they are one of the leading restaurant chains in the world, touching the live of people every day. Currently, McDonald’s has more than 31,000 restaurants in 119 countries, which are on every continent except Antarctica, serving more than 58 million customers each day and employing more than 1.5 million, with revenues of about $23 billion. The menu has expanded to reflect more sophisticated and health-conscious tastes. It sells Hamburgers, Chicken sandwiches, French fries, Soft drinks, Breakfast items and Desserts. It also offers Salads, Vegetarian items, wraps and other localized fare. It is backward vertical integration because McDonalds expand their operations into industries that produce inputs to the McDonald’s products. Types of restaurants include Mc Drive, Mc Café, Mc Express, and Solid Gold McDonald’s. Sub brands include Piles Café, Chipotle Mexican Grill, Donatos Pizza, and Sun partners. Their main focus is on Service, Hygiene and Products. It focuses on forward Integration and international growth through a franchise business model with McDonald’s model as the norm for other franchise organizations. It also focuses on backward integration and new product development by adaptation and innovation, to meet the needs of a diverse consumer market—as shaped by demographic, economic and local factors around the world.
As a major multinational corporation, McDonald’s operates 30,000 restaurants in 119 countries around the world. McDonald's opens a new restaurant every eight hours -- 2/3 is located outside the U.S. There is a McDonald's restaurant on every continent except Antarctica. With the expansion of McDonald’s in too many international markets, the company has become a symbol of globalisation sometimes referred to as the "McDonaldization" of the society and the spread of the American way of life.
McDonald’s “global momentum is apparent”. While the fast-food chain was not “immune” to the slowing economy in the United States, half the company’s profits were generated from international sales. McDonald’s was still taking market share in the United States despite decelerated sales and “has unbelievable strength across all regions outside the U.S.”
The following case study will explain the impact of the spread of McDonald’s to the world, but, specifically, to Japan. Has the coming of McDonald’s restaurants brought American culture to Japan? And, if so, to what extend can we speak of cultural imperialism? McDonald’s has gone a long way from being just a simple drive-in. In 1971 the chain reached Japan and it immediately was a huge success. McDonald’s Japan was the same concept as McDonald’s America, but they did adjust the menu a bit to suit the Japanese taste. For example, McDonald’s introduced the Teriyaki Burger, the Rice Burger and the Green Tea Ice-cream. Except for the slight changes in menu, there are other differences between McDonald’s America and Japan as well. This has to do with the way McDonald’s was received by the Japanese...