Mcdonalds Internationalization

In: Business and Management

Submitted By afaqbaig
Words 4411
Pages 18
| Final Project Report | International Business Management | MKT-324 | | |

Submitted to: Dr. Amira Khattak

Submitted by: Aqsa Qamar Sarah Malik Sabah Anwar Hayat Solangi Afaq Baig Date: January, 26th, 2015
Table of Contents 1.0 Company Introduction 4 2.0 Problem Statement 5 3.0 Literature Review 5 3.1 The Concept of Internationalization 5 3.12 The Entry Mode 5 3.13 The Factors That Influence Entry Mode Choice 6 4.0 Findings 7 4.1 Mode of entry 7 4.12 Autonomy in Operations 8 4.13 Conditions of Franchising. 8 4.14 Restaurant Ownership 8 4.2 Location 9 4.21 Mission as the Guiding Principle. 9 4.22 Market share 10 4.23 Pricing Strategy 10 4.3 Functional Strategies 11 4.31 Marketing Problems 11 4.32 HR Problems 11 4.33 Training 11 4.34 Adapting to Pakistani culture 12 4.35 Promotional strategies 12 4.4 Environmental Scanning 12 4.41PEST Analysis 12 5.0 Conclusion and Recommendations 14 6.0 References 16

In this age of internationalization, people are able to share any kinds of food from different parts of the world, thanks to the global business of food and beverage companies. As the leading driver of global growth in consumer food service, the fast food industry is reaching new consumers continually through improved menus, dining experience upgrades and rapid worldwide expansion. As representatives of this industry and experienced multinationals, the American fast food restaurant groups like McDonald’s. The report discusses how the strategy of globalization affects large multi nationals like McDonald’s. It later elaborates upon…...

Similar Documents


...great consequences on where a company’s future is leading. As does, the new rapid age of technology and information resources. It is always a constant race to the top and once you find yourself there, how do you maintain your position? A perfect example of this is the large fast food chain, McDonalds. In 1940, brothers Dick and Mac McDonald opened their first McDonalds restaurant in San Bernadino, California. In 1955, with the help of a franchising agent named Ray Kroc, they opened their second restaurant in Des Plaines, Illinois. Mr. Kroc purchased McDonalds in 1961 from the McDonalds brothers for $2.7 million. It was like wildfire from there, expanding to over 700 restaurants by 1965. In that same year, in celebration of their tenth anniversary, Mr. Kroc decided to offer stock to the public for $22.50 per share. Had someone purchased 100 shares in 1965 for $2,250, it would be worth over $7.3 million after it’s twelve stock splits. What has made made McDonald’s so successful? Ray Kroc’s mission statement for McDonalds was a simple one. He wanted the restaurant to be his customers favorite place and way to eat. Their mission statement hasn’t changed much over the years. “McDonalds vision is to be the world’s best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value so that we make every customer in every restaurant smile.” They exercise a global strategy called the “Plan to Win” which......

Words: 1215 - Pages: 5


...the most successful ad campaigns in history is from McDonalds. They have had many different campaigns over the years and each of them has gone on to make a niche in advertising. We all can remember the jingle, for the ingredients of the Big Mac, we remember the commercials for “have it your way” and of course the phrase “I’m loving it”. All of these ads have been successful for McDonalds. One common thread that the McDonald’s campaigns and jingles have is they are tailored to the McDonald brand association. The ads are strong visual and verbal and assist in building brand personality. McDonalds applies the principles of verbal by creating catchy phrases. “You deserve a break today, at McDonald’s,” is one phrases that McDonalds has used in the past and when said is immediately identified with McDonalds. One can feel as though by going to McDonalds a day off from work is achieved. The jingle of the ingredients for the Big Mac, describes the big mac itself, leaving the audience to want to sample it. The phrase “have it your way” hints that you can what you want at McDonalds. These phrases are used in advertising to conjure up a visual of the company that is being advertised and is then associated with that company as their sole slogan. You can say “you deserve a break today” or sing “two all-beef patties, special sauce, pickles, lettuce on a sesame seed bun” and people will immediately know you are talking about McDonalds. It is these catchy jingles that keep the......

Words: 560 - Pages: 3


... Step 4: Reference Check 12 Step 5: Selection Decision: 12 Step 6: Physical Examination 13 Step 7: Job Offer 13 Step 8: Contract of Employment 14 Step 9: Concluding the Selection Process 14 Step 10: Evaluation of Selection Programme 14 5.3 Train and Development 14 5.3.1 Orientation Meeting 14 5.3.2 Staff Training 15 6. Recruitment Strategies 16 6.1 In-House or Internal Recruitment 16 6.2 External Sources 17 7. Recruitment Services 18 8. Legal Requirements 20 Conclusion 21 References 22 Appendix A: Staffing Models 23 a. Staffing Quantity: Levels 23 b. Staffing Quality: Person/Job Match 23 c. Staffing Quality: Person/Organization Match 24 d. Staffing System Components 24 Appendix B: McDonalds Organizational Structure 25 Appendix C: Training 27 Training at McDonald’s 27 Methods of training: 27 Level of training: 28 Appendix D: Merits and Demerits for Recruitment 30 Recruiting People from ‘Within’ 30 External Sources of Recruitment 31 Appendix E: Recruitment Issues 32 Recruitment Period 32 Psychometric Testing 32 Hire the Smile 32 Appendix F: Meeting with the Restaurant Manger 35 1. Company Profile: About 2.5 million guests visit McDonald’s restaurants across Canada every day. With its Canadian franchisees, McDonald’s Restaurants of Canada Limited owns and operates more than 1,400 restaurants and employs more than 80,000 Canadians coast-to-coast. Approximately 80% of McDonald’s Canadian......

Words: 7931 - Pages: 32

Internationalization of Firms

...Internationalization and firm performance 1. Introduction The topics of internationalization and firm performance are introduced. Over the last decades the interest on the relationship and connection between internationalization and performance has grown rapidly. The aim of this paper is to focus on the strength and weaknesses of internationalization as a business strategy by stressing the positive and negative factors that influence the whole process. Moreover, internationalization well be discussed with regard on performance levels. Does firms expansion abroad has a direct positive or negative impact on performance? And, if yes, in what extend does performance, profit, market share as well as the position toward competition change? The first part of the paper deals with some of the important reasons such as resource, marker, efficiency, as well as strategic asset seeking, which directly influence companies to be multinationals. We live in the area of globalization, where “going global” and becoming international is a very common strategy used by firms in order to expand and spread their potentials abroad. Nevertheless, before some decades this topic was not as common as today and authors starting to study it by concentrating not only in the economical side, but as well as by dealing with cultural diversities, political barriers, local versus foreign customers, competition etc. The second part of the paper is focused in more details in the IP relationship. It is......

Words: 7257 - Pages: 30


...Introduction McDonalds is a very successful and famous fast-food restaurant in the world, the reason in being successful for McDonald's Franchise is about: Consistency, innovation and resiliency. At first, the characteristics of consistency. "If I had a brick for every time I've repeated the Phrase Quality, Service, Cleanliness and Value, I think I'd probably be able to bridge the Atlantic Ocean with them (Ray Kroc, 1955)". Kroc saw a business opportunity that simply cannot be resisted that he decided to offer McDonalds a chance to begin a brand new area in franchising their restaurant concept. “Quality, Service, Cleanliness and Value” as Kroc's motto to opened his first McDonald's in 1955 in Des Plaines, Illinois. Based upon the four concepts, as well as lessons he had learned from his initial years in operating the franchise. Customers know what to expect and can take effort in that knowledge when making decision on where to eat. These efforts towards process repetition and efficiency not only help McDonald's stay on top in a culture where producing at a fast-paced, and also set the basis for McDonald's success from the position of customers' expectation. Besides that, McDonalds keeps a good relationship with stakeholders is the key factor in the company's success as well. ''So we must think through what management should be accountable for; and how and through whom its accountability can be discharged. The stockholders' interest, both short- and long-term, is one......

Words: 2403 - Pages: 10


...The Mcdonald Corporation is the world is the world largest and leading chain of hamburger fast food restaurants which serves round about 68 million customers in 119 countries with 35000 outlets in a day.McDonalds Corporation has been growing and spreading internationally from last couple of decades. It was started as barbecue restaurant in 1940 and its quarter is based in United States of America.In the starting its business as a hamburger by using production principles. Though McDonald seems convenient, economical and clean but it has a lot of negative aspects like low wages and salaries to its employees, which impact negatively the company’s culture, personality, and McDonald’s chain but have managed as a positive The McDonald’s restaurant in UAE are 100% operated and owned by local franchises, affiliates. All the decision and ideas are being taken locally and revenues is also invested in the local economy. As per Emirates Fast Food Corporation, The owner and runner of McDonalds restaurant in UAE is feeling much proud to serve United Arab Emirates public with its favorite food since 1994. With the passage of time we have become the part of region after managing to grow as per local customs. Customer are also like McDonalds and they are served with Safe, High Quality product to every customers in UAE either by delivery or walk in restaurants. McDonald operationsare also run as sales company operated restaurants. The McDonalds is having a revenue of $27.5 billion and......

Words: 295 - Pages: 2


...The Factors that Influence Successful Internationalization of Firms in Emerging Markets: A Case Study of MTN International Abstract Internationalization is essential in the modern world that is filled with many uncertainties. Companies internationalize because of many factors that include profit motives, costs minimization, diversification of the markets, search for new opportunities, saturated domestic market etc. the internationalization process of a firm involves many processes that are interlinked and the firm that wants to internationalize should always take these factors into considerations. The factors include the knowledge on the market, the availability of resources, the strategies to be used and the market environment. Before a company takes on an international assignment it should plan first. Planning will help the organization not to make mistakes in its initiative. Despite the many motives of companies to internationalize and the advantages involved, there are obstacles that the company must overcome for successful internationalization this paper analyzes the internationalization process in emerging markets, the process, motives, obstacles and benefits to a firm. A case study of MTN international will be used. The study is important to every person interested in international business and companies.More… CHAPTER ONE 1.1 Chapter overview This chapter will give a highlight of the whole study about internationalization of companies. Included in the chapter...

Words: 9748 - Pages: 39


...implementation. * Defining issues or problems by taking account the purpose of study. * Relevant background information. * What information is needed? * How the information will be used in decision making. Issues and problems at McDonalds 5 May 2015 in CNBC News McDonalds can’t shake its image, McDonald has a problem of fast food (all that’s good is bad) Alan Siegel CEO of brands says the fast food behemoth has been reactive instead of proactive Mc Donald admits that tackling issues it faces is not moving faster turnaround time. McDonald changed Big Mac to McLean. 2. Statement of research objections * Creating a research plan in solving issues and problems identified * Framework or blueprint for conducting market research project * Details and procedures necessary for obtaining the required information * Purpose to design a study that will test the hypotheses of interest * Answer to possible questions to the research * Provide needed information for decision making As mentioned above McDonald is tackling the issues. 3. Designing the research project Planning research design Defining problems and deciding the objectives Framework or blueprint for coding the marketing research project McDonald has a web link www.mcdonald .com (thick) 4. Collecting information or data * Collect Information to solve issues and problems * Involves canvassing, interviews, prospecting, networking, mail intercept The......

Words: 1558 - Pages: 7

Internationalization of Retailing

... SITUATION There is growing recognition that globalisation has significantly influenced retailing and its approach towards expansion. Regardless of the size of their operation, firms are increasingly attracted to prospect of international expansion (Mun and Yazdanifard, n.d). This phenomenon may have been initiated by the uncertain conditions of major economies in the US and Europe (Corstjens and Lal, 2012). It may also have been instigated by the prospect of better financial opportunities that developing markets can provide to these companies driven by market shares and revenues. Similarly, internal market saturation can be a motive for the quest of new foreign markets. It can be said that firms seek to emulate major brands such as McDonalds and Coca-Cola for they have been able to establish a sustainable international reputation. However, there seems to be evidence on several unsuccessful foreign attempts from major firms. The most recent example can be Tesco’s failed US venture which seems to have had a significant financial impact on the firm (Wembridge, 2012). As far as retail conglomerates are concerned, it can be argued that the outcomes of their foreign ventures have varied (Corstjens and Lal, 2012). Nevertheless, these firms seem to persist in this trend and appear to be prepared to take the risk abroad. For instance, it has been reported by Wal-Mart’s recently elected CEO that the firm will be putting more emphasis on its global expansion (Zillman, 2013). It has......

Words: 3036 - Pages: 13


...McDonalds has grown to become a global franchise icon around the world and is synonymous with American culture. Recent years have shown a different strategy that is being used and could be affecting bottom-line profits. With McDonalds growing globally year after year, concerns have grown that they were straying away from the American fast food while adapting to the local culture. For example, In Europe, McDonalds is competing with the coffee places such as Starbucks to gain an edge on the market. Also, McDonalds has changed their menus according to the culture to make a more palatable menu. The strategy to grow and expand overseas has changed considerably over the years due to internal and external factors. Internally, McDonalds had to have diversity set in place to have different views on strategy. McDonalds had to realize that having diversity as an asset greatly enhances the company’s profitability. Diversity is a direct reflection of a company’s interpersonal relationships. Externally, McDonalds had to have the community involved to grow globally. By having the community involved helps strengthen the brand name and focuses on the key cores that was put in place by Ray Kroc. Utilizing local suppliers for products strengthens the relationship between a company and a community as well. Menus are tailored according to the customs and culture and have to very conscious on the feedback an item might get if done incorrectly. For example, India’s menu is a vegetarian menu and......

Words: 449 - Pages: 2


...McDonald’s (in 2013): How to Win Again? McDonald is (in 2013): How to Win Again? The fast food industry seems to be a relatively easy market to compete in with the demand of easy, fast food accommodations. However, the largest of the industry, McDonalds, has experienced some very impactful setbacks. As competition, rises in the quick-service industry McDonalds has had to make several adjustments to stay on the leading competitive edge. As society becomes more aware of health issues and economic opportunities, the restaurant industry has been severely impacted which, has forced menu adjustments with better food at competitive prices. Below we will address how McDonalds strategy through analysis, formulation, and implementation. Analysis: Focus on External and/or Internal Environments Maintaining a competitive advantage is the most important factor for a business to be successful. Although McDonalds has been in business since 1940 and has formulated the market for the fast food industry, it has come under heavy pressure of competitors. At first, McDonalds focused on burgers, drinks, and fires. However, new entries into the quick-service industry have affected them with more expanded and different menus. This has forced McDonalds to restructure their entire business strategy over time to stay on top of customer demands placing focus on the PESTEL model. External Environments There are several trends that affect McDonald’s ability to sustain a competitive...

Words: 1559 - Pages: 7


...ready to be served to the customer. Another one is that McDonald’s signifies is predictability through their logos and their consistency. In a way, where when someone hears or sees a McDonalds, they visually recollect the golden arches that mean a McDonalds in near them. One last thing, on how McDonalds resemble a machine is that it embodies is standardization which is also known as replicability. Which for starters means that a machine can be easily replaced if it doesn’t work anymore by another machine. In which, McDonalds does by having from the start to be standard and be replaced by the uniforms, have them say personal greetings, consistent tasks, wages offered, breaks given, and the countless rules that they have to follow. Just like machines, when they break down they are replaces so are employees if they don’t want to abide by all the standardized rules that McDonalds has set for all their employees. The scientific management of Frederick Taylor’s, emphasizes scientifically determined jobs and management practices as the way to improve efficiency and labor productivity. In this method, you break down into four different principles in how McDonalds runs things. First principle, which is replace rule-of-thumb work methods with methods based on a scientific study of the tasks. So at McDonalds they use the scientific method to define their work activities in a way where everything is defined in exact terms. From the store layout, the design and layout of all the......

Words: 2266 - Pages: 10


...TURKU SCHOOL OF ECONOMICS 11 Comparison of internationalization process of Finnish firms Similarities and differences Submitted by: Sarada P Sahu Student Number - 601502 Table of Contents Introduction 3 Internationalization process of the Raisio group 3 Internationalization process for Jaakko Poyry Group 5 Internationalization process for Kone elevators 7 Comparison in the internationalization process of firms 8 Similarities 8 I. External environmental conditions: 8 II. Leadership and top management: 8 Differences 9 I. Strategy for Internationalization 9 II. Outlook of the company 11 III. Organizational and business structure: 12 Conclusion 13 Introduction The study of the Internationalization process for Finnish firms has been quite interesting in terms of the variety of the methods used by the companies to do so and in the nature of the learning that can be gained from the same. While studying about processes and the tactics being used by the companies’ one also has to pay importance to the external environment in terms of the economy, government and social and cultural factors that play a very important part in the decision making during the internationalization process. The major factors that have led to the internationalization process in Finnish firms can be classified into five major categories as mentioned. The first factor is the competence development in individuals and exploitation of the critical events that occur in the......

Words: 4213 - Pages: 17


...McDonalds: Operating in the Best Interests of Society or its own Profits? Marc Nettekoven Florida Atlantic University Professor Brenda Richey MAN 6937 December 7, 2011 Table of Contents Introduction 3 Company Changes 3 Competition 7 Consumer Protection & Regulation 8 Corporate Social Responsibility 10 Conclusion 11 Appendix 12 References 13 McDonalds: Operating in the Best Interests of Society or its own Profits? Today, there are numerous other fast food chains and similar alternatives for consumers to choose from beyond the option of McDonalds. Due to increasing levels of competition, rising concerns of food quality and increasing concern of obesity; operating in today’s globalized fast food society can deem to be a difficult task. McDonalds needs to broaden its narrow-minded focus on generating profits (expanding its location base) and adding more locations. The company needs to increase market share while building a good reputation by operating in, and contributing to, the best interest of society. When referring to society, it includes all stakeholders in the company, ranging from customers to suppliers. To realign its strategy and focus on ethicality and its responsibility as a corporation, McDonalds must involve all levels within the company, from top management to suppliers to franchise employees. Although operating in such a manner would require large levels of capital, the benefits to society as a whole would inevitably bring......

Words: 3107 - Pages: 13


...McDonald's or Starbucks: Who wins? - 1 - investing strategy - MSN Money More Hotmail Messenger Bing Make MSN your homepage Sign in Like 128k MONEY HOME NEWS INVESTING PERSONAL FINANCE MY MONEY REAL ESTATE CAREERS AUTOS TAXES Follow portfolio manager Enter a name or symbol markets GET QUOTE stocks mutual funds etfs broker center investor pro top stocks E*TRADE: 5 Star Trading Tools U.S. markets closed DJIA 13,228.31 +23.69 +0.18% NASDAQ 3,069.20 +18.59 +0.61% S&P 1,403.36 +3.38 +0.24% 7/5/2011 4:35 PM ET | By Michael Brush, MSN Money McDonald's or Starbucks: Who wins? The purveyor of burgers is going upscale, treading on turf that the coffee titan has trolled for years. Which company will prevail? And what's the effect on consumers? Share 941 Tweet 26 Like 76 109 Would you like some fries with that cinnamon dolce latte? OK, you probably won't hear that question any time soon. But in an odd twist in the evolutionary path of quick-serve eateries, McDonald's (MCD +1.62%, news) and Starbucks (SBUX -5.32%, news) are looking more alike every day. It's a trend that's going to continue, for a few simple reasons. With a McDonald's or a Starbucks just about everywhere you look, both companies are running out of room to roam. Starbucks was once expanding so rapidly that comedians joked it would be opening new coffee shops inside the......

Words: 2930 - Pages: 12