Mcdonalds Expands Globally While Adjusting Its Local Recipe Essay
Q1. Identify the key elements in McDonald’s global marketing strategy (GMS). In particular, how does McDonald’s approach the issue of standardization? The popularity of American-style hamburgers, fries, and soft drinks is growing around the world, supporting Levitt’s view of the global village. Also, the restaurants themselves offer the consumers a chance to experience for themselves a fast food experience. However, in many locations, menu items are adapted according to the customs and tastes of individual countries.
McDonald’s offers an ideal example of “global localization. ” Q2. Do you think government officials in developing countries such as Russia, China, and India welcome McDonalds? Do consumers in these countries welcome McDonalds? Why or why not? Despite concerns by governments and citizens in some countries about “cultural imperialism,” McDonald’s and other franchises with well-known brand names are generally welcome. Such businesses provide both much-needed jobs and employee training.
McDonald’s does a good job of earning the support of local authorities and the local population by working with agricultural producers to develop local supply sources for beef, potatoes, and dairy products. Finally, thanks to changing lifestyles around the globe, more people are embracing the whole concept of fast food. Q3. At the end of 2003, McDonald’s announced t was selling the Donatos Pizza unit. Then, in 2006, the Chipotle chain was spun off. In light of these strategic actions, assess McDonald’s prospects for success beyond the burger-and-fries model.
McDonald’s spent a period of time acquiring businesses they believed to be complimentary to their core burger-and-fries model. However, during this expansion, they made the error of “taking their eye off of the ball. ” This allowed competitors to make inroads and resulted in their core business flagging. By reasserting themselves in their core business, they are reestablishing themselves as innovators in the market. Success beyond their core model is certainly possible; however, attention can not be diverted from their core business model.