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INTERNATIONAL CASE
McDONALD’S: SERVING FAST FOOD AROUND THE WORLD
SUMMARY:
Opportunities
1. People always want high quality at a moderate/low price. They also need fast service in spotless surroundings. McDonald's, due to its global presence and international practices, can provide all these at an affordable price.
2. The Eastern countries were not introduced to fast food. Fast food had barely touched many cultures then. Hence, McDonald's saw fast food as an attractive business in the far eastern countries.
3. They are in family-oriented business and there was no other chain with similar services in fast food who were offering services to the entire family in Europe. In fact, McDonald's saw a great opportunity by way of selling products for children in Europe where children were not welcomed in restaurants.
4. The taste for Fast food, especially American style, is growing more rapidly in other places than in US. This is an immense opportunity for expansion for McDonald's outside the US.
Threats
1. Prejudices: The main issue when entering a new geography is the need to understand the culture prevalent there. McDonald's had a tough time explaining what a Hamburger means to a German who felt hamburgers were people from the city of Hamburg. Similarly, in Japan, Potatoes were used only to make starch. So, McDonald's found it difficult to explain its products to the locals in both these countries.
2. They maintain the same traditional menu with limited items.
3. Expansion in France was delayed though McDonald's was highly profitable because they had to revoke their French franchises who failed to meet their cleanliness standards. They could have easily lost the French market ...