Global Business Strategy Of McDonald
Contents
Introduction 3
McDonald’s Corporation 4
Business Strategy Implemented by McDonald 4
How did McDonald reach every corner of the world 7
Using the 7P’s of marketing mix, McDonald earned business success at every part of the globe; 7
Advantages of a franchise business and its impact on McDonald 10
Conclusion 12
References 13
Global Business Strategy of McDonald
The McDonald 's Corporation is the world 's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries across 35,000 outlets.
Headquarters: Oak Brook, IL, United States of America
CEO: Donald Thompson
Founded: May 15, 1940, San Bernardino, California, United States
Founders: Maurice McDonald, Richard McDonald, Ray Kroc
Introduction
What is Global Business Strategy?
A plan established by the firms / companies to target growth on a global level for sales of product or services. It covers 3 areas Global, Multinational, and International strategies. Essentially, these 3 areas refer to those strategies designed to enable an organization to achieve its objectives of international expansion. Furthermore, International expansion provides the opportunity for new sales and profits.
What are the benefits of Global Business Strategy?
Global brand recognition: the benefit that derives from having a brand that is recognized throughout the world – for example, McDonald.
Global customer satisfaction: multinational customers who demand the same product, service and quality at various locations around the world. For example, customers of McDonalds will like to order from the usual menu offered, due to not being comfortable in eating foreign food.
Economies of scale: the extra cost savings that occur when higher volume production allows unit costs to be reduced. For example, the greater the quantity of a good produced by McDonald, the lower the per-unit fixed cost because these costs are shared over a larger number of goods.
Economies of scope: the cost savings
Introduction 3
McDonald’s Corporation 4
Business Strategy Implemented by McDonald 4
How did McDonald reach every corner of the world 7
Using the 7P’s of marketing mix, McDonald earned business success at every part of the globe; 7
Advantages of a franchise business and its impact on McDonald 10
Conclusion 12
References 13
Global Business Strategy of McDonald
The McDonald 's Corporation is the world 's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries across 35,000 outlets.
Headquarters: Oak Brook, IL, United States of America
CEO: Donald Thompson
Founded: May 15, 1940, San Bernardino, California, United States
Founders: Maurice McDonald, Richard McDonald, Ray Kroc
Introduction
What is Global Business Strategy?
A plan established by the firms / companies to target growth on a global level for sales of product or services. It covers 3 areas Global, Multinational, and International strategies. Essentially, these 3 areas refer to those strategies designed to enable an organization to achieve its objectives of international expansion. Furthermore, International expansion provides the opportunity for new sales and profits.
What are the benefits of Global Business Strategy?
Global brand recognition: the benefit that derives from having a brand that is recognized throughout the world – for example, McDonald.
Global customer satisfaction: multinational customers who demand the same product, service and quality at various locations around the world. For example, customers of McDonalds will like to order from the usual menu offered, due to not being comfortable in eating foreign food.
Economies of scale: the extra cost savings that occur when higher volume production allows unit costs to be reduced. For example, the greater the quantity of a good produced by McDonald, the lower the per-unit fixed cost because these costs are shared over a larger number of goods.
Economies of scope: the cost savings
References: “McDonald’s Success Strategy and Global Expansion through Customer and Brand Loyalty”, Journal of Business Case Studies – Third Quarter 2007, Research paper by Bahaudin G. Mujtaba & Bina Patel of Nova Southeastern University. This Is How McDonald 's Plans To Take Over The World, Business Insider 2011 http://www.businessinsider.com/mcdonalds-strategies-success-2011-12?IR=T McDonald Annual Report 2012, 2006, 2008- About McDonald http://www.aboutmcdonalds.com/content/dam/AboutMcDonalds/Investors/Investor%202013/2012%20Annual%20Report%20Final.pdf Asian Journal of Technology & Management Research, GLOCALIZATION IN FOOD BUSINESS: STRATEGIES OF ADAPTATION TO LOCAL NEEDS AND DEMANDS by Dr. Ajai Prakash & Dr. V. B. Singh http://ajtmr.com/papers/vol1issue1/GLOCALIZATION%20IN%20FOOD%20BUSINESS.pdf Forbes 2012, McDonald 's Winning Strategy, At Home And Abroad http://www.forbes.com/sites/panosmourdoukoutas/2012/04/20/mcdonalds-winning-strategy-at-home-and-abroad The advantages for the franchisor - Franchising and entrepreneurship - McDonald 's Restaurants | McDonald 's Restaurants case studies and information | Business Case Studies. 2014. The advantages for the franchisor - Franchising and entrepreneurship - McDonald 's Restaurants | McDonald 's Restaurants case studies and information | Business Case Studies. [ONLINE] Available at: http://businesscasestudies.co.uk/mcdonalds-restaurants/franchising-and-entrepreneurship/the-advantages-for-the-franchisor.html#axzz3HJ8aYZWK