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’