This short paper will examine multidomestic and transnational business strategies using McDonalds, Coca Cola, and Disney to demonstrate both strategies. The paper will conclude with determining which strategy is best for the company Trader Joe’s; the company used for Global Business Management’s final project.
Week 5 Short Paper: Business Strategies
This short paper will examine multidomestic and transnational business strategies using McDonalds, Coca Cola, and Disney to demonstrate both strategies.
As large product manufacturing organizations continue to expand and grow internationally, their global reach will bring their products to consumers in those locations. Moving into these countries comes with a shift in business strategy in an effort to implement a successful selling campaign. Two examples of these strategies are multidomestic and transnational corporations.
Companies that follows a multidomestic strategy fits its products to each country in which they conduct business. Moreover, the organization establishes a collection of relatively independent operating subsidiaries, each of which focuses on a specific domestic market (Ireland, Hoskisson, & Hitt, 2008, p. 169).
The nation’s most popular burger chain, McDonalds is a perfect example of the multidomestic strategy. McDonald’s has a global presence that spreads across 119 countries all inhabited continents. McDonalds’ has turned the home of Le Cordon Bleu cooking academies and Michelin Guide of world-renown restaurants into its second most profitable market in the world. The chain has more than 1200 restaurants in France. Each of the locations in France are locally owned. McDonald’s growth rate is 30 restaurants per year (Fancourt, Lewis, & Majka, 2012).
McDonald’s researches each country’s local customs and foods before deciding on the direction for their menu and opening of stores. For
References: Fancourt, L., Lewis, B., & Majka, N. (2012, January 3). Born in the USA, Made in France: How McDonald’s Succeeds in the Land of Michelin Stars. Knowledge at Wharton. Retrieved from http://knowledge.wharton.upenn.edu/article/born-in-the-usa-made-in-france-how-mcdonalds-succeeds-in-the-land-of-michelin-stars/ Hartman, C., & Media, D. (n.d.). Differences Between a Multidomestic & a Transnational Company. Small Business. Retrieved December 1, 2013, from http://smallbusiness.chron.com/differences-between-multidomestic-transnational-company-33807.html Ireland, R. D., Hoskisson, R. E., & Hitt, M. A. (2008). Understanding business strategy: Concepts and cases. Mason, OH: South-Western Cengage Learning. Thinking Made Easy. (2010, June 15). Thinking Made Easy. Retrieved December 1, 2013, from http://ivythesis.typepad.com/term_paper_topics/2010/06/strategic-analysis-of-hong-kong-disneyland-.html