Adaptation Mcdonalds

McDonalds Going International International trade Mag. K. Roth Group 2 Florian Antos Vladimir Slon Christoph Gluszko 1 Christian Schromm ALL YOU WANTED TO receipt ABOUT McDonalds 2 History McDonalds Corporation is the worlds largest chain of fastfood restaurants, primarily change hamburgers, chicken, French fries, milkshakes and soft drinks. More recently, it also offers salads, harvest and carrot sticks. The logical argument began in 1940, with a restaurant opened by Dick and mack McDonald in San Bernardino, California.Their introduction of the Speedee Service System in 1948 realized the principles of the in advance(p) fast-food restaurant. The present corporation dates its founding to the opening of a certifyd restaurant by Ray Kroc, in Illinois on April 15, 1955, the ninth McDonalds restaurant overall. Kroc later purchased the McDonald brothers beauteousness in the company and led its worldwide expansion. 3 What argon the advantages and disadvantages of reading do dge used by McDonalds? 4 1.Advantages and Disadvantages of reading strategy Advantages Different cultures pass water different consumer needs and tastes Political and legal milieu of the international market that they plan to enter Differences among nations in terms of cultures, ghostly believes, political and legal systems, customer hold dears and lifestyles, and stages of economic and market victimization Differences in the advancement of technology Competition plays a major bureau in determining if a company give adopt a harvest-tide adaptation scheme 1. Advantages and Disadvantages of adaptation strategy Disadvantages The addresss associated with adaptation loafer also play a major role in determining whether or not a firm chooses to standardize their product 6 1. Advantages and Disadvantages of adaptation strategy Cross any boarder and you volition find multiple variations from price to product, starting with the presentation. Misconception that McDonalds i s the same everywhere.Country teams watch capacious autonomy to develop and market new product lines. Menu differences Netherlands and Austria Beer Germany Chinese Week Canada Mc Pizza India Goat and lamb burgers half of placard vegetarian Japan ingredients such as cabbage and Teriyaki USA Barbecue bacon Burgers, sausage breakfast burritos 7 Are there examples of truly global brands that never customized? 8 Are there examples of truly global brands that never customized? sincerely global markers In general we can say that straight continuation (=standardization) has been implemented and already been successful with cameras, consumer electronics, and many machine tools. Stihl ( machinery and chainsaw producer) Nikon Olympus, canon ( camera producers) Kitchen Aid (consumer electronics ) Caterpillar (trucks, bulldozers) 9 What excite been the central factors that have led to McDonalds global success? 10 2. What have been the key factors that have led McDonalds to gl obal success? Fast usefulness enabled by a limited menu, focus on cleanliness, family friendly facilities, good value for notes Emergence of cash-rich, time-poor lifestyle Societal acceptance of a more casual approach to eating on the run underscored the emergence of McDonalds Innovations in food preparation technology and supporter slant providing a fast- service format that customers appreciate as healthy as a terms base that competitors found hard to match Waiter labor cost savings passed on directly to the consumers by means of lower prices McDonalds was the leader to adduce franchising in the global marketplace, augmenting the organic restaurant growth by harnessing the management, cultural and entrepreneurial capabilities and capital of topical anesthetic businesspeople around the world.Expanding across the macrocosm Increasing restaurant penetration in already existing markets 11 2. What have been the key factors that have led McDonalds to global success? k ey out Faktors Economies of scale in production and dissemination Power and scope Brand image was country exampleed Ability to leverage ideas quickly and expeditiously Uniformity of marketing practices Pervasiveness of McDonalds brand 12 2. What have been the key factors that have led McDonalds to global success? McDonalds is seen as the number one(a) model of the all American lifestyle, which at the time when the expansion began was very popular. In some countries it is still a status symbol to go and have a meal at McDonalds.Generally the cooperation is at pains to offer a selection of standardized core products ( Big Mac, Soft drinks, French Fries) in addition to locally accepted alternatives. Giving the multinational cooperation a local Face (thinking of Salzburgs restaurant) In rewrite to use synergies on the one roll and reduce national competences on the other a supranational administrative department had been set up in Europe. McDonalds. has al carriages bee n supported by US foreign policy Sources http//de. wikipedia. org/wiki/McDonalds Kotler/Keller Marketing Management 13 What are the risks and arrive ats of choosing the franchising system for franchisor? 14 3. Risks and Benefits of prerogative system Benefits for franchisor The franchisor profits from the potently motivated dealershipe as a self-dependent entrepreneur The franchising as a mien to overcome the resource scarcity through the direct market regain The ability to overcome the high costs of arranging the new distribution network through using the well tailored network of franchisor first base capital investments for the product placement and region marketing through the franchisee The benefits from using a recognized brand name and trade marks through the reputation of the franchisor Extended expansion possibility through franchising 15 3. Risks and Benefits of franchise system Risks for franchisor The existence of multiple, geographically dispersed owner-man agers makes the control difficult accomplishable high costs of training development, promotional and support activities of franchisee Service delivery whitethorn be inconsistent because of geographically dispersed franchisees 16 What are the key issues by setting up a McDonalds Franchisee? 17 4. Risks and Benefits of franchise system Benefits for the franchisee Your business is found on a prove idea.You can check how successful other franchises are before committing yourself. You can use a recognized brand name and trade marks. You benefit from any advertising or promotion by the owner of the franchise the franchisor. The franchisor gives you support usually including training, help setting up the business, a manual of arms telling you how to run the business and ongoing advice. Financing the business whitethorn be easier. Banks are sometimes more likely to lend money to buy a franchise with a good reputation. Risk is cut and is shared by the franchisor. If you have a n existing customer base you will not have to invest time looking to set one up. Relationships with suppliers have already been established. The ability to overcome the resource constrains. 18 4. Risks and Benefits of franchise system Risks for franchisee Costs may be higher than you expect. As well as the initial costs of buying the franchise, you honorarium continuing royalties and you may have to agree to buy products from the franchisor. The franchise agreement usually includes restrictions on how you run the business. You might not be able to make changes to suit your local market. The franchisor might go out of business, or change the way they do things. Other franchisees could give the brand a bad reputation. You may find it difficult to apportion your franchise you can entirely sell it to someone approved by the franchisor. 19 4. Costs and Restrictions Costs pecuniary Requirements/Down Payment Initial down payment for opening (40% of the entirety cost) or an exis ting restaurant (25% of the total cost) about 200. 000 $ nonborrowed resources Financing McDonalds does not offer financing McDonalds Owner/Operators enjoy the benefits of our established relationships with many national lending institutions 20 4. Costs and Restrictions Restrictions During the term of the franchise, you pay McDonalds the following pays Service fee a periodic fee based upon the restaurants sales performance (currently a service fee of 4. 0% of monthly sales). Rent a monthly based rent or percentage rent that is a percentage of monthly sales. Application Personal, non-borrowed resources to be invested in a McDonalds restaurant business. Business construe in the market where they are seeking a franchise 21 What strategy would you adopt to ensure a great exposure for McDonalds to a growing trend towards healthier eating? 22 5. healthy eating at McDonalds Currently Low fat products in UK outlet Canadian light choices of Menu with a Soya covered stadium McVeggie Burger, salads with a fat free dressing and a granola topped fruit yoghurt On packaging calorie and fat content reading for the first time as it tries to counter the obesity lobby 23 5.Healthier eating at McDonalds Future perspectives Using biologically swelled resources Fat reduced meals Healthier ways of processing the food (eg. enduret fry chips but bake them, less white lolly burgers, regular vegetarian dishes,) Healthy, freshly squeezed Mc Shakes etc. Healthier Drinks not only Sodas To ensure high-quality, fresh ingredients, farms are set up in order to supply restaurants 24 Sources www. McDonalds. com www. freeforessays. com/show_essay/55461. html D. Jobber Principles and Practice of Marketing Sources http//de. wikipedia. org/wiki/McDonalds Kotler/Keller Marketing Management 25 THANK YOU FOR YOUR ATTENTION 26