the essay of MCD

Topics: McDonald's, Franchising, Business model Pages: 3 (1590 words) Published: October 30, 2014

Research question:
To what extent do McDonald’s international strategy management help to growth?
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Supporting article 1;
Title: Market Strategy and Organizational Structure: Three CompaniesJan 30th, 2009 by Scott HebertIt is no secret that organizational strategy is linked to market strategy. When a company first begins to move into the global marketplace, it must decide how it will interact with each market. The company could decide to utilize a multinational strategy. This strategy develops products and marketing specific to each national market. It benefits from the ability to quickly adapt to local trends, but it cannot take advantage of scale economies. Companies with a multinational strategy tend to develop a decentralized organizational structure. This structure pushes decision-making down to lower-level organizations. In this way, companies with multinational strategies allow their international subsidiaries to forge their own path in each market (Wild, Wild, & Han, 2008). A company may decide to develop a global market strategy. These companies use the same products and marketing strategy in every country in which they operate. The cost-savings associated with employing scale economies allow these companies to offer their products at lower prices. Additionally, lessons learned in one market can be shared with globally. Unfortunately, this strategy prevents a company from realizing important differences in local preferences. These companies develop a centralized organizational structure. Business decisions are made at the highest level and pushed out to all markets (Wild, Wild, & Han, 2008). McDonald’s Corporation is an excellent example of company with a global strategy and centralized organizational structure. McDonald’s has over 31,000 restaurants in 120 countries. Although these restaurants are typically franchises, they all receive food and packaging from the same approved vendors. This means that a McDonald’s in the...
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