Mcdonalds International Business

Topics: Franchising, McDonald's, Franchise Pages: 5 (1325 words) Published: November 9, 2010

Mcdonald’s are Multinational company who have expanded dramatically.. They are a company who’s policy is based on globalisation, by the fact that Macdonald’s and its franchises growth is remarkable they have over 21000 restaurants in over 101 countries, and territories in all parts of the world including Argentina, Cuba, Singapore India. and worldwide sales exceeded $30 billion dollars and the net income crossed 1.5 billion

Mcdonalds have achieved their recognition and status by being successful, with success comes a reputation for professionalism.

Since opening there first restaurant in the UK in Oct 1974, in the UK alone Macdonald’s have opened 731 restaurants by the end of 1996, with an investment of over 1 billion Pounds.

From a worldwide perspective , by 1994 Macdonald’s had opened 15000 restaurants in 79 countries and had got a major sponsorship deal by sponsored the world cup in 1994. By the end of 1996 Macdonald’s growth had continued at a record setting pace with over 21,000 restaurants in 101 countries.

McDonalds also hopes to develop 100 new sites In Beijing and 400 more across China.

The recognition of the barriers they faced with cultural differences was a major task McDonalds took on. The Process of Acculturation , how would the company fit in to the culture. This is a process of adjusting and adapting to a specific culture other than ones own culture. International business will act as a change agent by introducing new products, ideas or practices, e.g. for example in a 10 year period the international portion of McDonalds sales grew from 13 - 23 %. In markets like Taiwan , the entry of McDonalds and other food dramatically changed eating habits of the younger.

McDonald’s knew that in certain countries they had to adopt to the cultures and overcome the barriers that were put in front of them. McDonalds realised that they had to take into consideration local tastes and concerns when designing their buildings, even though they have a general policy of uniformity in buildings or office space design, but local tastes warrant modification.

When going in to various countries they had to make sure that they were culturally prepared, forewarned is forearmed. They needed to adapt to product policies, ie use specific marketing strategies involving finding answers to questions of a standard product or a specially adapted product.

For example in 1996 the first Macdonald’s restaurant opened in India not selling beef, in deference to local culture mutton is used and the Big Mac is known as the Maharaja Mac. This was a an excellent move and by the end of the year Macdonald’s hosted more than 2700 families each night.

The 1990 opening of McDonalds in Russia was hailed a spectacular success, an icon of free enterprise. It currently employs 1000 people the largest McDonalds crew in the world. The training the staff received in Russia was second to none, seasoned McDonalds staff from all over the world assisted in the Soviet with crew training. The training of the Managers was more Intense and included an in depth study program at the appropriately named HAMBURGER UNIVERSITY. This is McDonalds training center in Illinois.

McDonalds besides being a business is also a responsible member of the communities it serves, there long term vision is that the joint venture should help cooperation between the nations and a better understanding among people. When individuals from al over the world work together, they communicate better. With 70,000 meals a day it may not take long for the Russians to understand better the west through McDonalds ambassador role.

Macdonald’s entry strategy in the overseas marketing was by franchising. Macdonald’s allowed franchisees in other countries to utilize its brand names, logos and operating techniques in return for a royalty payment. International franchising has advantages for the franchisee because with Macdonald’s they can...
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