International Context
Forces for global integration
As organisations become larger they generate many operational benefits as average unit costs fall over larger ranges of output. Economies of scale are the advantages that accrue as organisations become bigger and expand their activities. For McDonald’s, economies of scale allow for bulk purchase of products with a high volume turnover, research at a national level, faster growth and specialised management and franchise support.

McDonald's economies of scale benefit the company in various ways in its international endeavours including:

the fact that its uniform menu offerings can be mass produced, lowering production costs; the company's bargaining power with its suppliers lowers its input costs and boosts margins; the company's large advertising budget gives McDonald's a significant competitive advantage over its competitors. http://www.gurufocus.com/news/167949/mcdonalds-still-strong-despite-headwinds
Most importantly McDonald’s enormous purchasing power and economies of scale have allowed for the company to achieve a very low cost of goods sold. T

The firm enjoys economies-of-scale advantages over its rivals in marketing and purchasing, helping it achieve superior returns. The average MCD restaurant in the U.S. had sales of $2.0 million in 2007, versus $1.2 million at Burger King and $1.3 million at Wendy’s http://www.checkcapital.com/research_reports/mcd_1109.pdf

Since McDonald’s does not directly manufacture any of the materials associated with its operations the company continually seeks a stronger relationship with its suppliers. Most importantly McDonald’s enormous purchasing power and economies of scale have allowed for the company to achieve a very low cost of goods sold.

Franchisors are able to benefit from economies of scale, because as their total production levels increase, the