Global Business Strategy Of McDonald

Topics: McDonald's, Hamburger, Franchising Pages: 14 (3118 words) Published: November 13, 2014
Contents

Introduction3
McDonald’s Corporation4
Business Strategy Implemented by McDonald4
How did McDonald reach every corner of the world7
Using the 7P’s of marketing mix, McDonald earned business success at every part of the globe;7 Advantages of a franchise business and its impact on McDonald10 Conclusion12
References13

Global Business Strategy of McDonald

The McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries across 35,000 outlets. Headquarters: Oak Brook, IL, United States of America

CEO: Donald Thompson
Founded: May 15, 1940, San Bernardino, California, United States Founders: Maurice McDonald, Richard McDonald, Ray Kroc
Introduction

What is Global Business Strategy?
A plan established by the firms / companies to target growth on a global level for sales of product or services. It covers 3 areas Global, Multinational, and International strategies. Essentially, these 3 areas refer to those strategies designed to enable an organization to achieve its objectives of international expansion. Furthermore, International expansion provides the opportunity for new sales and profits. What are the benefits of Global Business Strategy?

Global brand recognition: the benefit that derives from having a brand that is recognized throughout the world – for example, McDonald. Global customer satisfaction: multinational customers who demand the same product, service and quality at various locations around the world. For example, customers of McDonalds will like to order from the usual menu offered, due to not being comfortable in eating foreign food. Economies of scale: the extra cost savings that occur when higher volume production allows unit costs to be reduced. For example, the greater the quantity of a good produced by McDonald, the lower the per-unit fixed cost because these costs are shared over a larger number of goods. Economies of scope: the cost savings developed by a group when it shares activities or transfers capabilities and competencies from one part of the group to another. For example, McDonalds can produce both hamburgers and French fries at a lower average cost than what it would cost two separate firms to produce the same goods. This is because McDonald hamburgers and French fries share the use of food storage, preparation facilities, and so forth during production. There are many more benefits on going global. The firm will gain enormously in the process, they will greatly increase their sales revenues and will surely be profited from it. In contrast, if it’s not planned or developed by the firms accurately, it might go wrong for the firm, and that will surely hurt the business.

McDonald’s Corporation

The McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 118 countries. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He then purchased the chain from the McDonald brothers and oversaw its worldwide growth. A McDonald's restaurant is operated by a franchisee, a member, or the corporation itself. McDonald's Corporation revenues come from the rent, royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants. In 2012, McDonald's Corporation had annual revenues of $27.5 billion, and profits of $5.5 billion. McDonald's primarily sells hamburgers, cheeseburgers, chicken, french fries, breakfast items, soft drinks, milkshakes, and desserts. In response to changing consumer tastes, the company has expanded its menu to include salads, fish, wraps, smoothies, and fruit. McDonald's restaurants are found in 118 countries and territories...


References: “McDonald’s Success Strategy and Global Expansion through Customer and Brand Loyalty”, Journal of Business Case Studies – Third Quarter 2007, Research paper by Bahaudin G. Mujtaba & Bina Patel of Nova Southeastern University.
This Is How McDonald 's Plans To Take Over The World, Business Insider 2011
http://www.businessinsider.com/mcdonalds-strategies-success-2011-12?IR=T
McDonald Annual Report 2012, 2006, 2008- About McDonald
http://www.aboutmcdonalds.com/content/dam/AboutMcDonalds/Investors/Investor%202013/2012%20Annual%20Report%20Final.pdf
Asian Journal of Technology & Management Research, GLOCALIZATION IN FOOD BUSINESS: STRATEGIES OF ADAPTATION TO LOCAL NEEDS AND DEMANDS by Dr. Ajai Prakash & Dr. V. B. Singh
http://ajtmr.com/papers/vol1issue1/GLOCALIZATION%20IN%20FOOD%20BUSINESS.pdf
Forbes 2012, McDonald 's Winning Strategy, At Home And Abroad
http://www.forbes.com/sites/panosmourdoukoutas/2012/04/20/mcdonalds-winning-strategy-at-home-and-abroad
The advantages for the franchisor - Franchising and entrepreneurship - McDonald 's Restaurants | McDonald 's Restaurants case studies and information | Business Case Studies. 2014. The advantages for the franchisor - Franchising and entrepreneurship - McDonald 's Restaurants | McDonald 's Restaurants case studies and information | Business Case Studies. [ONLINE] Available at: http://businesscasestudies.co.uk/mcdonalds-restaurants/franchising-and-entrepreneurship/the-advantages-for-the-franchisor.html#axzz3HJ8aYZWK
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