McDonald's Global Market Overseas sample essay

McDonald’s Corporation is the largest chain of fast-food restaurants in the world which specializes in hamburgers, French fries, and soft drinks. McDonald’s is famous in 119 countries of the world. Company’s international success is guaranteed by the methods which McDonald’s uses entering foreign market. “Think global, act local” describes the goal which McDonald’s follows in foreign countries.

First McDonald’s appeared in 1940, and it was obvious that this enterprise would become a franchise. Since 25-30 years’ period overseas expansion is the main objection for McDonald’s. Introducing American culture to the world the company raises it’s success, profitability, and compatibility. McDonald’s globalization model serves as an example for many other franchises. McDonald’s uses the in-country production mode entering foreign countries. International restaurants are either company-owed, joint ventures, or operated by franchisees. The company estimates market potential of the country, calculates maximum profit expectation, and starts operating following the time frames for successful growth.

McDonald’s is aiming to dominate in markets with growing income and potential. Market seeking activities are strategic motives for McDonald’s in choosing entry modes for global market overseas. McDonald’s chooses contractual and equity entry modes because the level of control, and the relationship between franchise and franchisee in this case has the most positive outcome. Easily assessing foreign markets with minimum level of investment and high profit expectations is what McDonald’s entry mode choices stand for. McDonald’s introduces it’s unique concept to international markets, and it becomes a win-win cooperation. First of all, McDonald’s affect business standards in foreign countries. It also increases standards of service in foreign countries by introducing machinery, clean and neat restaurants, quality products. Franchisees, in return, propose their innovations. So, McDonald’s benefits from international operations by having access to new know-how’s. For example, mini-McDonald’s appeared in Singapore, and broadened the popularity of fast food restaurant. Sweden has applied an innovation of enhanced meat freezer. What is of the most importance is that McDonald’s is flexible to foreign culture food habits and manipulates with its menu accordingly. Nevertheless, McDonald’s is presented as original American franchise, though having different “faces” and approaches overseas.

Concluding all of the above, it is important to note that McDonald’s would not be so popular and rich without skillful and professional globalization methods. Perhaps, in future as well it will be impossible to compete with McDonald’s.

BIBLIOGRAPHY

1. Serwer, Andrew E. McDonald's Conquers The World. Sun, Laixiang. 2000.

2. Ilan, Alon & McKee, David. Towards a Macro Environmental Model of International Franchising. Multinational Business Review. 1999.
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