Globalization Strategy of McDonald's Corporation

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Case Details:

Case Code : BSTR310
Case Length : 22 Pages
Period : 2000-2008
Pub Date : 2009
Teaching Note :Not Available
Organization : McDonald's Corporation
Industry : Fast-food
Countries : Global

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Untouched by Global Economic Slowdown Contd...

It also reported a rise of four percent in revenues, which stood at US$ 6.04 billion, backed by 6.1 % growth in same-store sales at the global level , while the comparable sales in the US grew by 3.4 %.

The history of McDonald's dates back to the late 1930s, when two brothers Richard McDonald (Richard) and Maurice McDonald (Maurice) started a hot dog stand in California.

In 1961, the McDonald brothers sold off their business to Raymond Kroc (Kroc), who was managing the franchise operations at McDonald's. The company reached new heights in terms of growth under Kroc's leadership.

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In 1967, McDonald's first ventured out into the international market by starting a store in Canada. This was followed by the setting up of more restaurants in Europe and Asia.

Although most of the operations were standardized, the company also took the route of localization to gain acceptance in different countries.

Some of the localization strategies used included adding local items to its menu and deleting from it certain food items that were objectional in some places.

The company also undertook different marketing techniques in different countries and adjusted the pricing according to the prevailing economic conditions there. As of 2008, McDonald's was present in around 121 countries across the world...

Excerpts >>

6] Lisa Baertlein, "McDonald's Profit Up on Int'l, Cost Worries Weigh,", July 24, 2008.

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