GLOBALIZATION STRATERGY OF MC.

DONALDS
CORPORATION

PRESENTED
BY:
ABHINAV
MALHOTRA
ADITYA GHAI
ADITYA
VIKRAM
ADITI SHARAD
AKANKSHA
PANDEY
AKANKSHA
 Summary
•Founded by Richard and Maurice McDonald

•1937 started with a hot dog stand called

AIRDROME

•1940 opened a barbeque restaurant at

Bernardino

•Need of the hour was quick service at low price

•Global expansion
1. Canada
2. China- joint venture with Den Fujita
International Growth
Strategies
Think global act local

Adjusting Price

Promotional Strategies

Involvement in Local communities

Challenges
Faced allegation that the food it served was
hazardous to health

Faced protest in UK in 1990

In 1999 Faced a major challenge in France

In 2002 Faced protest from Afghanistan , Iraq and

Middle East countries

Stiff competition from – Yum! Pizza Hut , KFC ,

Starbucks
Performance Report
In Oct 2008 – 11% increase in net income
amounting to US$1.19bn

Growth in European Countries- 23%

Growth in Asia , Middle East & Africa – 28%

7.7% rise in global comparable sales

Major Reason for the
Growth
More variety in breakfast and regular menu

Convenient location , extended hrs , quality

food

Change in consumer trend during recession

Getting the basic amenities right.

 GLOBAL
STRATEGIES
THINK GLOBAL ACT LOCAL
• IT TRIED TO FIT INTO THE LOCAL
CULTURE BY MODIFIENG A LITTLE

THREE WINNING TARGETS

LOCAL INGRIDIENTS
LOCAL TASTES
LOCAL SENTIMENTS
EG.MC ALOO TIKKI, HALAL MEAT IN ISLAMIC
COUNTRIES
 ADJUST PRICES
•ADJUST PRICES ACCORDING TO VALUE OF
CURRENCY
•LOCATION AND INCOME DISTRIBUTION OF THE
REGION CONSIDERED
•PRICES SET KEEPING IN MIND THE TARGET
MARKET
PROMOTIONAL STRATEGIES
•WORLDWIDE HANDLED BY DDB NEEDHAM AND
LEO BURNETT
•USED PRODUCT PROMOTION ACCORDING TO THE
LIKES OF THE PEOLPLE
INVOLVEMENT IN LOCAL COMMUNITIES
•EMPLOYEMENT FOR LOCALS
•FARMER EDUCATION
•CSR
QUESTION 2
What do you think is the rationale behind
McDonald’s policy of maintaining different prices in
different markets? How did the company benefit
from it? What according to you, could be the
repercussions of this strategy?
“Think Global Act Local”
Location and income distribution
The price of Big Mac (as of July 2008) varied
considerably across different countries. Its cost was
US$ 2.79 higher in Switzerland than in the US,
while in China, Big Mac was priced US$ 1.74 lower
compared to its price in the US.
Company gave discounts .
Repercussion- comparison.
Question 3.
Mc donalds has the three winning targets:
LOCAL INGRIDIENTS
LOCAL TASTES
LOCAL SENTIMENTS
the basic structure remains the same, the golden
arches and the red and white building with
slanting roofs.
Q.4 ANALYZE THE FUTURE
PROSPECTS OF THE
COMPANY IN THE
INTERNATIONAL MARKET
WITH THE GROWING
NUMBER OF COPY CAT
COMPETITORS OF Mc.
DONALDS
KING’S BURGER
NIRULA’S
DOMINOES
YUM BRANDS
KFC’S
TACO BELL
LONG JOHN SILVER’S
THREATS
GROWING COMPETITORS
BARGAINING POWER OF SUPPLIERS
THREATS OF SUBSTITUTE
THE ADVANTAGE Mc.
DONALDS HAVE:
A FIRST MOVER ADVANTAGE
MARKET LEADER
LOW COST & MORE INCOME
WORLD WIDE ACCEPTED STANDARDIZED
AMERICAN TASTE
THERE BASIC SIGNATURE PRODUCT i.e. FRIES ,
COKE AND BURGER
FASTER AND FRIENDLY WAY OF SERVICE
RESONABLE PRICE WITH GREAT TASTE