CUEGIS

Change, Culture, Ethics, Globalisation, Innovation, Strategy

McDonalds Change McDonalds regularly changes its strategy to

keep up with the market demand and also to remain competitive in
this large market. Over the last year, it has made many changes, for
example, making major changes to its menu. Adding and removing
various dishes all around the world. They also plan to add more
dishes for breakfast and begin serving ‘healthy’ breakfast, every day
of the month! Culture McDonalds has changed there company a lot
according to the culture here in India. Before they decided to enter
the market in India, they had decided to omit beef and pork from the
menu to aid in preventing the Indian citizens from being offended.
research shows that in 2003, of 100 meals that people ate in a
month, only three were eaten out. They introduced a 20 rupees
(20p) burger called Aloo Tikki Burger, a burger with a cutlet made of
mashed potatoes, peas and flavoured with Indian spices. "It's
something you would find on Indian streets; it was essentially the
McDonald's version of street food. The price and the taste together,
the value we introduced, was a hit. It revolutionised the industry in
India," he says. Now eating out has gone up to 9-10 times per 100
meals and McDonald's in India has more than 320 million customers
a year. The entire menu has been customised after extensive
market research. Now over 70% of the menu has been changed to
vegetarian to cater to customers. Even competitors such as burger
king and subway have followed by dropping beef and pork. They
have greatly changed the way they plan, make decisions and
implement strategies because of the country they are entering.
Ethics In ethics, CSR comes into play, which every business must
do as part of its social responsibility. In India specifically, to remain
ethical, McDonalds has begun investing in a eye care hospital, to
create an image that is socially responsible, thus making it stand
out from its competitors. However there are ethical issues with
McDonalds as well. People have been fighting for there working
rights due to cases such as wage theft, poor management and bad
working conditions. Ethical issues with the food also comes in.
There have been cases where McDonalds have given the cows
steroids to make more beef. All of these worsen the image of
McDonalds. Globalisation McDonalds is a prime example of
globalisation. Originating in USA, and slowly expanding into
markets and regions where the concept of fast food was not yet
discovered. It targeted the middle class segment since it saw a
niche, and kept the same interior design, service, and quality of
food throughout the world, generating its amazing band image.
These things allowed seamless globalisation to take place! Making
it one of the largest MNC running today. Innovation Innovation is key
to remaining competitive. Nearly all the dishes in the menu of
McDonalds have been innovated and designed completely by them!
Many trends have begun just by McDonalds. These trends aid in
creating the brand image of McDonalds, which highly compliment
the sales. Strategy The company deals with 3 strategic issues.

1. How to deal with the growing competition

2. How to deal with financial issues such as high franchisee
fees in contrast with geographical expansion goals
3. How to deal with the worldwide economic crisis They deal
with competition by using aggressive marketing strategies.
You will never go a day without noticing a sign that leads you
to McDonalds or viewing an ad about it. Financial issues are
dealt with the spreading of risk through globalisation. There
are so many franchises that if one goes into loss, there are
hundreds of others ready to cover up the loss and make a
remarkable profit. The worldwide economic crisis is
something that affects every business, therefore it is not
much of a problem for McDonalds as it is already established.
It can actually prove to be advantageous as competition is
killed off and it is very difficult for new competition to arise.
As this affects every business, even the competitors deal
with the same struggle, evening out the ‘battlefield’