...Environmental Factors The following information will discuss environmental factors McDonald’s global business face when dealing with other countries. McDonald’s global business must know how to deal with different cultures, laws, ethical situations, etc. that can cause threat and consequences for the business. The following will compare ethical perceptions across cultures concerning different situations. Businesses operate differently in other countries and McDonald’s must adapt to the cultural to do business. For a global business to be successful is a challenge and possible risk. The influence of global economic interdependence and the effect of trade practices and agreements Legal realism in diverse countries led to key choices that entail marketing. These consist of the capability to make particular claims, the capability to sell products in particular ways, the variety of business practices that take place, and a variety of aspects. These aspects should be understood and well thought-out when creating marketing plans. Other aspects that influence marketing compose of social accountability and environmental factors. In various cultures these issues are vital and other cultures it is not a concern. McDonald’s should follow legal conditions in countries that influence social and environmental practices, and still meet the expectations of locals on these matters. If not McDonald’s could not gain the respect or trust locally and globally as a company. The importance...
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...Environmental factors can influence the decisions that are made in the domestic and global market. Concern for these environmental factors that influence the marketing decisions is essential for organizations that have businesses within the global market that set goals to please its customers. It is a good idea to have a detailed analysis of the target market to see the vision of a successful marketing plan. McDonald’s is an organization that has businesses in both the domestic and global market. This paper will discuss the environmental factors that affect the domestic and global marketing decisions for McDonald’s such as the economy, social, political, ecological, cultural differences, technology, and ethical issues. The marketing decisions for McDonald’s are impacted by the global economic interdependence and the trade practice and agreements. The economy is continuously changing all over the world and McDonald’s customer purchasing power is determined by this environmental factor. The global financial issues that have an impact on McDonald’s marketing choices are credit, debt, revenue distribution, gross domestic product, and savings. These global financial issues impact McDonald’s decisions that are made by the company’s management team. The United States used to have the best economy, but even the economy in the United States is not in great shape anymore. Businesses have begun to close down, but McDonald’s food chain are continuously opening up more restaurants and opening more...
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...University School of Business MBA 616 INTERNATIONAL MARKETING Global marketing strategy of McDonald’s is established on combination of local and global mixed elements of marketing. 1) The first element is, McDonald’s offers basic items like burgers, french fries and soft drinks in most countries. The popularity of American-style burgers, fries, and soft drinks are growing around the world. Second element of McDonald’s global marketing strategy (GMS) is a dynamic element in McDonald’s business model restaurants system which can be set up virtually anywhere in the world and the restaurants by themselves offer the consumers a chance to experience for themselves a fast food legend. McDonald’s think global and local but they also act locally. A huge amount of ingredients they use, come from local producer. This decision is also an excellent mean to give them a responsible conscience. 2) McDonald’s bring to developing countries the chance to get well trained and at the same time the company is acting locally too to enhance the agricultural industry by working together with the local producers. Additionally, life-styles are being changed all over the world; the need to save time and money is growing in countries such as China. People are more and more influenced by the Western-lifestyle, and junk food is part of this culture. Also McDonald’s is offering meal to modify their tastes, and food restrictions (ex: India with beef). 3) People : McDonald’s cares of its employees...
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...McDonald’s Keanu Gordon-Williams Lujack McReynolds 11/29/2012 Table of Contents Executive Summary LM………………………………………………………………………… 3 Introduction KGW ……………………………………………………………………………….5 External Analysis KGW .…………………………………………………………………………5 General Environment KGW……………………………………………………………... 5 Technological Factors KGW ....…………………………………………………..5 Economic Factors KGW ………………………………………………………… 6 Demographic Factors KGW..……………………………………………………..7 Global Factors KGW ……………………………………………………………. 7 Sociocultural Factors KGW..……………………………………………………..7 Industry Environment KGW .……………………………………………………………. 8 Opportunities KGW..…………………………………………………………….. 8 Threats KGW..…………………………………………………………………… 9 Porter’s Five Forces KGW...………………………………………………………………9 Threats of New Entrants KGW …………………………………………………...9 Bargaining Power of Buyers KGW……………………………………………...10 Bargaining Power of Suppliers KGW……………………………………………10 Threat of Substitutes KGW………………………………………………………10 Internal Rivalry KGW……………………………………………………………11 Internal Analysis LM…………………………………………………………………………….11 Core Competencies and Competitive Advantages LM…………………………………..11 Sustainable Competitive Advantages LM……………………………………………… 13 Organizational Culture and Leadership LM …………………………………………….14 Strategic Alternatives KGW & LM ……………………………………………………………..20 Business Strategy LM …………………………………………………………………...20 Corporate Strategy KGW………………………………………………………………. 21 Global Strategy KGW………………………………………………………………….. 22 ...
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...emerald-library.com/ft McDonald's: ``think global, act local'' ± the marketing mix Principal Lecturer, Manchester Metropolitan University, Manchester, UK Keywords Globalization, Marketing mix, Marketing management, Fast-food industry, Marketing, Franchising Abstract Focuses on the marketing mix of McDonald's. Highlights how the company combines internationalisation and globalisation elements according to various fast food markets. Using the effect of strategical and tactical models, the case illustrates the effect of McDonald's on the global environment and how they adapt to local communities. Describes future franchise plans for McDonald's. McDonald's: ``think global, act local'' 97 Claudio Vignali Introduction McDonald's background Two brothers, Richard and Maurice McDonald founded McDonald's in 1937. The brothers developed food processing and assembly line techniques at a tiny drive-in restaurant east of Pasadena, California. In 1954, Ray Kroc, a milk-shake mixer salesman, saw an opportunity in this market and negotiated a franchise deal giving him exclusive rights to franchise McDonald's in the USA. Mr Kroc offered a McDonald's franchise for $950 at a time when other franchising companies sold restaurant and ice-cream franchises for up to $50,000. Mr Kroc also took a service fee of 1.9 per cent of sales for himself plus a royalty of 0.5 per cent of sales went to the McDonald brothers. The McDonald's brothers sold out for $2.7 million in 1961. McDonald's first international...
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...Perspectives July 16, 2014 University of Phoenix Cross-Cultural Perspectives McDonald’s is the largest fast food chain restaurant in the world. Ray Kroc founded the franchise in 1955 in California. The company pride itself on their tasty hamburgers and delicious french-fries. McDonald’s is also known for its quick service and its drive through. The company went from one restaurant location, to locations in different states, to a global corporation. McDonald’s continue to thrive on providing meals at a low-cost to customers. McDonald’s have more than 30,000 restaurant locations in more than 100 countries around the world. McDonald’s makes billions of dollars each year but they still issues in the global sector (McDonald’s, 2011). McDonald’s established their first restaurant in Japan in 1971 (McDonald’s, 2011). This establishment brought about some issues because of the cultural differences. Some of the issues are food preparation, food organization, and food delivery. Even though McDonald’s way of doing business contradicted with the Japanese ethics, and traditions, through compromise, and social responsibility they have managed to minimize their differences. Besides McDonald’s other businesses have expanded globally such as, auto companies like Ford Motor Company. However, their approach was different in comparison to McDonald’s. McDonald’s Cultural Issues in Japan: Food organization The Japanese are known for preparing home cooked meals. Besides...
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...University of Phoenix Cross-Cultural Perspectives Cross-Cultural Perspectives 2 McDonald’s is the largest fast food chain restaurant in the world. Ray Kroc founded the franchise in 1955 in California. McDonald’s server millions of customers daily. The company pride itself on their tasty hamburgers and delicious french-fries. McDonald’s is also known for its quick service and its drive through. The company went from one restaurant location, to locations in different states, to a global corporation. McDonald’s continue to thrive on providing meals at a low cost to customers. McDonald’s have more than 30,000 restaurant locations in more than 100 countries around the world. McDonald’s makes billions of dollars each year but they still issues in the global sector (McDonald’s, 2011). McDonald’s established their first restaurant in Japan in 1971 (McDonald’s, 2011). This establishment brought about some issues because of the cultural differences. Some of the issues are food preparation, food organization, and food delivery. Even though McDonald’s way of doing business contradicted with the Japanese ethics, and traditions, through compromise, and social responsibility they have managed to minimized there differences. Besides McDonald’s other businesses have expanded globally such as auto companies like Ford Motor Company. However, their approach was different in comparison to McDonald’s. McDonald’s Cultural Issues in Japan: Food organization The Japanese are known for preparing home...
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...McDonald’s Case Study Introduction In order for organizations to meet the business goals that they set forth, they must have the people capable of meeting those goals (PMI Today, 2015). Many company leaders will say that one of their top priorities is talent management (Silzer & Dowell, 2010). There is a link between an organization’s success and the efficiency of the talent management plan that the organization has in place. Talent management is the function that identifies and recruits the right people, develops a pool of people with the requisite technical, business and leadership skills, creates succession plans and effectively mobilizes people from current assignments to the next or priority opportunities. (PMI Today, 2015, p. 3) When an organization’s talent management system is no longer effectively assisting with meeting business goals, the organization must determine what changes need to be made and implement those changes. One example of an organization that found improvements were needed in their talent management program was McDonald’s. McDonald’s began looking at their talent management program after declaring their first loss in the fourth quarter of 2002. There was a clear problem when the company’s performance had dropped but the performance ratings of managers were holding at more than 90% of them being “outstanding” or “excellent”. The disparity between the performance ratings of managers and the company’s ability to fill key leadership roles when...
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...McDonald’s started as a small business in the USA in the 1950s (Stonehouse, Campbell, Hamill & Puride, 2004). Today, it has grown to be a global phenomenon with 34,000 restaurants in over 118 countries (McDonald’s Australia, 2014). Through this expansion, McDonald’s has faced the challenge of transferring a symbol of American culture to places where there are significant national, cultural and religious differences. This essay will analyse some management issues that McDonald’s has experienced. Firstly, the strategic debate regarding global integration versus national responsiveness will be examined. Associated with this issue, is the matter of diversity across different regions. Finally, the essay will consider McDonald’s corporate image of social responsibility in relation to environmental sustainability and increasing problems of worldwide obesity. McDonald’s as we know it today is a result of Ray Kroc taking the entrepreneurial hamburger ‘stall’ established by the McDonald brothers, and franchising the business with Ted Turner to create an international organisation (McDonald’s Australia, 2014). In the 1950s there was significant domestic growth in the United States of America. International expansion began in the late 1960s and 1970s, initially targeting Canada, the United Kingdom and western European countries of Germany, the Netherlands and Sweden (Stonehouse, et al, 2004). The first restaurant opened in Australia in 1971 (McDonald’s Australia, 2014). In 2001, McDonald’s...
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...used by McDonald’s Corporation. The paper begins with a brief overview of the company, its history and operations, and analyzes the internal and external environments that it currently operates in. With a Competitive Profile, External and Internal Factor Matrixes, this paper examines the relative strengths, weaknesses opportunities, and threats in McDonald’s’ mass business operations. The paper also examines Corporate Social Responsibility (CSR) and business ethics, and the steps and initiatives McDonald’s takes in regards to consumer satisfaction. Lastly, the paper concludes that the strategy used by McDonald’s is a cost leadership approach, and provides methods in which the business strategy could be used to capitalize on the strengths and opportunities and eliminate the weaknesses and threats. McDonald’s- The Corporation McDonald's is the globes largest chain of fast-food restaurants, serving more than 58 million customers daily in over 119 countries. It first opened its doors in 1940 by brothers Richard and Maurice McDonald in San Bernardino, California, and their creation of the "Speedee Service System" in 1948 created the blueprint of the present day fast-food restaurant. In 1955, McDonald's Corporation credits its true founding to the opening and operations of a franchised restaurant by Ray Kroc, in Des Plaines, Illinois. Kroc later purchased the McDonald brothers' equity in the company and led its global expansion with the Franchise Model. McDonald’s has...
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...Globalisation and international marketing A Activity 19.1 − answer provided on Student’s CD-ROM. Activity 19.2 (page 374): Zumo the energy drink 1 As a business analyst, write a report to Zumposa’s board of directors recommending an appropriate marketing strategy for this product in your country. It should contain: explanations of global marketing and localisation; advantages and disadvantages of both strategies for this product in your country; details of the changes you would recommend for the marketing strategy in your country. Don’t forget that your marketing strategy should be integrated. [20] Advantages Global marketing: A pan-global marketing strategy adopts common products, branding and promotional campaigns across the world. Disadvantages • There will be economies • The brand name may • • • of scale as the product is the same in each country. Therefore, purchasing economies of scale can be utilised. No need for different flavours of Zumo. Promotional costs will be reduced as the same advertising is used everywhere – thus no need to commission different adverts in different countries. Advertising already used in Spain can simply be translated for other markets. The economy is increasingly globalised and there are fewer and fewer differences between tastes in countries around the world. The product may benefit from a common global identity. This has worked well for Coca Cola. • • • not be suitable in all countries, e.g. Plop, a popular Swedish chocolate bar, would struggle...
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...Week 3 Assignment 1: McDonald’s Case Study HRM 532 Talent Management Strayer University July 21, 2013 Dr. Robert D. "Doug" Waldo, SPHR For most of its fifty-four years of existence, McDonald’s has been very successful in growing its business while being able to utilize a decentralized approach to managing its global workforce. The size, complexity and global character of the business has continued to grow to more than 32,000 restaurants in 118 countries serving approximately 55 million customers per day. Even with this success, it became apparent that sustained success requires the development of a more consistent and disciplined approach to talent management and development. In response to this specified need, McDonald’s has taken steps that have enhanced its talent management and development system (Goldsmith & Carter, 2010). There are two levels that were embedded with the expectations of the employers which consist of good customer service and experience levels. Customer service and experience levels are key metrics that are embedded within the performance expectations for employees throughout the system. This made McDonald’s concentrate on the quality, service, cleanliness, and the value of being strong. These variables have been strongly linked to customer expectations and loyalty. All efforts to enhance the company’s global workforce management system incorporates a focus on key behaviors; which consists of customer focus and service orientation and...
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...McDonald's Marketing Strategy McDonald’s is the world’s largest fast-food restaurant chain. It has more than 30,000 restaurants in over 100 countries. Over one billion more customers were served in 2007 than in 2006. Although net income was down by $1.1 billion in 2007, McDonald’s sales were up 6.8%, and revenue was a record high of $23 billion. “The unique business relationship among the company, its franchisees and suppliers (collectively referred to as the System) has been key to McDonald’s success over the years. The business model enables McDonald’s to play an integral role in the communities we serve and consistently deliver relevant restaurant experiences to customers.” (McDonald's, 2008, 25). McDonald’s overall strategic plan is called Plan to Win. Their focus is not so much on being the biggest fast-food restaurant chain, rather it is more focused on being the best fast-food restaurant chain. McDonald’s “strategic alignment behind this plan has created better McDonald’s experiences through the execution of multiple initiatives surrounding the five factors of exceptional customer experiences – people, products, place, price and promotion” (McDonald's, 2008, 25). McDonald’s also incorporates geographical strategic plans. In the U.S., McDonald’s strategic plan continues to focus on breakfast, chicken, beverages and convenience. These are the core areas in the United States. McDonald’s has launched the Southern Style Chicken Biscuit for breakfast and the Southern Style...
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...Module 1 & 2: 1. How would you define the industry to be analysed? The industry is the world’s largest chain of hamburger fast food restaurants. Core activities are selling hamburger, desserts, and beverage. 2. Is the industry global? Yes since customers around the world can get McDonald’s product and service easily. This can be evidence from figures in table 1 and 2 (generated income from US, Europe, APMEA, and other countries and corporate. 3. Is the organization mentioned Australian or overseas based? The organization is local based. All the outlet located in overseas are operated by their franchisee and close monitor by franchisor. 4. Can you make any inferences about the industry value chain from the article? Raw material – raw material processing – outbound logistics - marketing and sales – services 5. What are the key product and services segments in the indsurty that are mentioned in the article? Hamburger, desserts and beverage. 6. Are you able to identify the stage of the industry life-cycle from the facts in the article? McDonald is in growth stage. This is demonstrated by global comparable sales increase 5.6%, operating income grew by 10% constant currencies and McDonald’s has delivered 35% total return to their investors resulted top performing company in the Dow Jones Industrial Average for 2011. McDonald has primarily concerned on keeping up with the current demand by expanding menu offerings, modernizing the customer...
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...This paper explores the global strategies of McDonald’s Corporation and Starbucks Corporation. An overview of the company histories is included along with the basic business philosophies. The focus of the paper is on the marketing strategies, both domestic and international, examining the marketing mix for each company. The four P’s of marketing are detailed with examples of how each company uses them to their advantage. The reasons for the successful global expansion of both companies are incorporated into the compiled information. A Look at the Global Marketing Strategies of McDonald’s and Starbucks McDonalds and Starbucks are two domestic companies that are very successful. Both have emerged first as leaders in their respective markets domestically, and because of that success have been able to grow and expanded into countries all over the world. This paper will examine these two companies from a global perspective in order to evaluate their marketing strategies, with a particular emphasis on how successful they have been in foreign markets. The paper will focus on how each company has applied the four P’s of price, product, place and promotion in their marketing mix, detailing how they are used gain an advantage in their respective markets. Finally, the paper will evaluate the success of these organizations in developing niches in their markets as compared to their competition. The first company examined is McDonald’s Corporation or McDonald’s as the brand name most...
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