International Business Globalization of Mcdonald\'s

International Business

Globalization of McDonald's

The global marketing strategy of McDonalds was one that sought to create a single global image using the golden arches of the M, even used in countries with a different alphabet (Case Study 67). However, this unified image does not represent a standardized so while the image remained the same in almost all locations, there has been the adoption of a policy of localization, where the products of the firm have been adapted to meet local tastes as well as using local ingredients for 95% of the inputs. Examples of this include the development of the Maharaja Mac, for the Indian market, made with lamb rather than beef, and an increased vegetarian menu prepared in a separate kitchen (Case Study 68). The menu concept remains broadly similar, with the same values and the same characteristics, fast food served at a value price and the experience provided appears aimed at being similar. However, there was increased localization in France, where the firm sought to integrate more into French culture; the use of wooden floors and muted tones where introduced along with a more comfortable environment with arm chairs (Case Study 68). This may start to indicate that there would be benefit from introducing a localization policy rather than a standardization policy on the design and experience offered. However, with changing tastes it may be argued that this approach may be suitable to other countries where the firm is loosing found, and trials have been introduced to extend the more sensitive design approach to other countries (Case Study 68).

Question 2

Governments such as Russia, China and India are likely to have had a mixed response to McDonalds. The entry of the firm to the country would have a number of direct benefits, such as job creation and the generation of taxes. However there were also the perceptions of threats in the way the firm may impact on local culture 'Americanizing' it. The firm may also be perceived as one where there is a highly commercial intent with little local consideration, a concern seen in the consumers in France. The government is also likely to reflect public opinion, as they are the representatives of the electorate, and as seen in France, McDonalds can be a target as the general image is one that represents American culture. It is notable that France has strongly defended its culture, and other controversies regarding American companies in the country have also been seen, especially Disneyland Paris. Therefore, governments are likely to have mixed responses, recognizing that there are some direct benefits as well as potential difficulties, especially in terms of perceptions of cultural contamination from the consumer markets.

Question 3