Globalization Strategy Of Mcdonalds Corporation Case Study

McDonalds Success Strategy And Global Expansion Through Customer And Brand Loyalty

Bahaudin G. Mujtaba
Nova Southeastern University
Bina Patel
Nova Southeastern University

Abstract

The McDonalds Corporation is one of the most successful global restaurant chains around the world. They have used effective management and global expansion strategies to enter new markets and gain a share of the foreign fast food market. This case presents how McDonalds has achieved this enormous success, its best practices in the global food industry, international growth trends and challenges, and various lessons that have been learned from their expansion in foreign countries. Overall, the case provides a discussion of how McDonalds creates both customer and brand loyalty for their products and services. This case focuses on McDonalds international success, challenges and strategies.

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Case Details:

Price:

Case Code:BSTR310For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

Themes

Globalization/ Standardization/ Localization/ Cultural issues
Case Length:22 Pages
Period:2000-2008
Pub Date:2009
Teaching Note:Not Available
Organization:McDonald's Corporation
Industry:Fast-food
Countries :Global; USA

Abstract:

This case is about the international operations of McDonald's Corporation (McDonald's), one of the oldest chains of quick service restaurants in the world. Over the years, McDonald's had developed a thriving market globally and as of end 2008, had a presence in 121 countries. Analysts pointed out that while many restaurants and restaurant chains were facing hard times because of the economic slowdown, McDonald's had shown improvement in sales. Its international business had also helped insulate it from the housing-led US economic downturn, they said. The case discusses the various strategies that the company adopted in the international market including its localization, pricing, promotional, and operational strategies in various countries.


Issues:


» Evaluate McDonald's globalization strategies.

» Learn about the issues and challenges faced by a restaurant chain in expanding its business internationally.

» Examine localization strategies of McDonald's in different markets.

» Understand promotional and pricing strategies followed by McDonald's in some of the countries.

Contents:

Keywords:

Strategy, Globalization, Localization, Think Global Act Local, Expansion, Franchising, Culture, Visual merchandising, Economic downturn, Ethics, McDonald's

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