Subject category:
Strategy and General Management
Published by:
Amity Research Centers
Length: 16 pages
Data source: Published sources
Topics:
McDonald’s Corp; World’s largest chain of fast food restaurants; Localisation strategy; 'Plan to win'; McDonaldization; 'Glocal' strategy; Price cuts; Revamped its outlets; Vegetarian products; McDonald’s strategic initiatives; McDonald’s entry into India; McDonald’s growth prospects in India; McDonald's ‘Happy Price’ campaign; Vegetarian restaurant; Vegetarian outlets in religious places
Abstract
McDonald’s Corp, based in the United States, was the world’s largest chain of fast food restaurants that was operational in 123 countries, across six continents, serving 68 million customers everyday. The company-owned or franchisee operated restaurants offered a variety of products such as hamburgers, chicken sandwiches, French fries, soft drinks, breakfast items and desserts. With rapid strides made in its international expansion, McDonald’s global comparable sales growth was 5.6% in 2011 with its earnings per share of 11%. McDonald’s was known for the implementation of localisation strategy, five elements of ‘plan to win’ namely people, products, place, price and promotion, to achieve its objectives of accelerated growth. The important factors for McDonald’s internationalisation efforts or ‘McDonaldization’ were its alignment of its three pillars of business ie, the company, its suppliers and its franchisees to deliver the localised restaurant experiences to its discerning customers. McDonald’s had adopted the ‘glocal’ strategy to stay relevant to the customers preferences and tastes and it had tailored its product offerings accordingly. However, in India, McDonald’s was not faring well as expected. To stay competitive, McDonald’s in India, resorted to price cuts, revamped its outlets and had offered vegetarian products, comprehending the sensibilities of its large vegetarian populace. Likewise, it had also planned to open two exclusive vegetarian outlets in religious places of significance in India in 2013. The case study had attempted to analyse McDonald’s strategic initiatives in its globalisation drive, its entry and growth in India and the issues and challenges for McDonald’s growth prospects in India.
About
Abstract
McDonald’s Corp, based in the United States, was the world’s largest chain of fast food restaurants that was operational in 123 countries, across six continents, serving 68 million customers everyday. The company-owned or franchisee operated restaurants offered a variety of products such as hamburgers, chicken sandwiches, French fries, soft drinks, breakfast items and desserts. With rapid strides made in its international expansion, McDonald’s global comparable sales growth was 5.6% in 2011 with its earnings per share of 11%. McDonald’s was known for the implementation of localisation strategy, five elements of ‘plan to win’ namely people, products, place, price and promotion, to achieve its objectives of accelerated growth. The important factors for McDonald’s internationalisation efforts or ‘McDonaldization’ were its alignment of its three pillars of business ie, the company, its suppliers and its franchisees to deliver the localised restaurant experiences to its discerning customers. McDonald’s had adopted the ‘glocal’ strategy to stay relevant to the customers preferences and tastes and it had tailored its product offerings accordingly. However, in India, McDonald’s was not faring well as expected. To stay competitive, McDonald’s in India, resorted to price cuts, revamped its outlets and had offered vegetarian products, comprehending the sensibilities of its large vegetarian populace. Likewise, it had also planned to open two exclusive vegetarian outlets in religious places of significance in India in 2013. The case study had attempted to analyse McDonald’s strategic initiatives in its globalisation drive, its entry and growth in India and the issues and challenges for McDonald’s growth prospects in India.