International Expansion Strategy of McDonalds

Globalization has made the world considerably smaller. States lines have turned into pretty much a divider separating certain parts of an enormous unitary community. Businesses are the one which are highly influenced by this incident. The virtual closeness of says has made trade and business an international event. Together with these advances, the key expectations of business are similarly taken into account. The discussions in this newspaper shall involve an evaluation of the international expansion strategy utilized by a multinational company. In this case, the situation adjoining McDonald's will be studied into consideration. The next annotations and propositions employed in the following discussions should be supported by statements on journals and academic portions that address international expansion strategies and international marketing ideas.


The modest beginnings of McDonald's in Illinois turned out to be among the main brand names in the international scene. It has been synonymous from what is widely-accepted the fast-food concept. The company operates over thirty one thousand stores worldwide to date. It had been one of the first to perfect the concept of fast service in the meals industry in its early days of operations in 1955. Given that the products of the business are mainly european in persona, its operations in addition has expanded to the Asian region. The first McDonald's store handled in Hong Kong in 1975. The first shop run at Paterson Neighborhood in Causeway Bay. Up to the data, the functions of McDonald's in Hong Kong protects over 2 hundred restaurant chains pass on in the complete of Hong Kong only. In the rest of the globe, it manages thousands of store franchises that functions autonomously.


Pestle can be an analysis of the exterior macro environment in which a business operates. According to (2008), pestle means political, economic, sociable, technology, and environmental factors.

A. Political Factors

The international functions of McDonald's are highly inspired by the average person state plans enforced by each federal government. (2001, 705) For instance, there are certain groups in Europe and the United States that clamor for condition actions regarding medical implications of eating fast food. (2005) They may have indicated that harmful elements like cholesterol and undesireable effects like over weight are attributable to consuming junk food products.

On the other hands, the business is controlled by the individual policies and rules of businesses. Specific markets concentrate on different areas of matter such as that of health, worker safeguard, and environment. All these elements are seen in the government control of the licensing of the restaurants in the respected states. For instance, there is an impending legal dispute in the McDonald's franchise in India where certain infringement of rights and violation of spiritual laws regarding the items of the meals. The life of meats in their menus in India is obviously offensive to the Hindu religious beliefs in the said market. There's also other studies that issues to the infringement of McDonald's Stores with reference to the existing employment laws in the mark market. Like any business enterprise, these McDonald's stores have to contend with the issues of employment steps as well as their duty obligations to be able to succeed in the international market.

B. Economic Factors

Organisations in the junk food industry are not excused from any disputes and troubles. Specifically, they certainly have their specific concerns involving financial factors. Branches and franchises of fast food chains like McDonald's gets the tendency to experience hardship in situations where the overall economy of the individual states is hit by inflation and changes in the exchange rates. The customers consequently are faced with a stalemate of exceeding their individual finances whether or not they should consume more on these international fast food chains. (2004) Hence, these chains may need to put up with the issues of the consequences of the monetary environment. Particularly, their problem depends upon the response of the consumers on these basics and how it might influence their general sales. In about the operations of the business, food chains like McDonald's have a tendency to import a lot of their raw materials into a specific territory if there is a dearth of source. Exchange rate fluctuations will also play a substantial role in the functions of the company.

As explained in the paragraph above, McDonald stores have to have a lot of consideration with reference to their microenvironment. The business's international resource as well as the prevailing exchange rates is only an integral part of the entire components had a need to ensure success for the foreign operations of McDonald's. Moreover, it is critical that the company be cognizant of the existing duty requirements needed by the average person governments which they operate. This essentially ensures the smooth operations of the McDonald's franchises. Within the same regard, the company will also have to consider the economical standing of the state of hawaii which they are powered by. The rate of which the economy of this particular state develops determines the purchasing power of the consumers in that country. Hence, if a franchise works in a particularly economically weak point out, hence their products shall cost higher than the other existing products in the market, then these franchises must undertake certain adjustments to keep the economies of scale.

C. Socio-Cultural Factors

Articles on the international strategies of McDonald's appear to function on several fields to guarantee lucrative dividends for the organisation. To illustrate, the organisation enhances on establishing a positive mind-set using their main consumers. McDonald's indulge a particular variety of consumers with definite types of personalities. ( 1994) It has also been mentioned that the company have given the marketplaces like the United Kingdom, a choice with regards to their eating out needs. (2005) pointed out that McDonald's has launched a sensibly appreciated group of food that tenders a reliable quality level for the respected market where it operates. Additionally, those who find themselves aged just underneath the bracket of thirty-five are reported to be the most frequent consumers of McDonald's franchises. ( 2005)

The multifaceted figure of business nowadays is reflected in the tough significance of the information about the prevailing market. This procedure is essentially identified in the field as market research. (1997) Information based on the appeal and potential areas of the marketplace would increase as obstructions to the success of the company if this section of the businesses is neglected. In the case of McDonald's they set up a good system in deciding the needs of the market. The business uses concepts of consumer behaviour product personality and purchasing decisions to its benefits. ( 1998) It is said to truly have a major affect on the knowledge of the possible performance of the company in a specific market. (2000)

D. Technological Factors

McDonald's generates a demand for his or her own products. (2006) The business's key tool for marketing is through television advertisements. You can find similarly some promises that McDonald's are inclined to interest younger populations more. The lifetime of play spots as well as toys in meals made available from the company shows this actuality. ( 1995) Other demo of such a online marketing strategy is visible in the advertisements of they use. They utilize animated depictions of these heroes like Grimace and Hamburglar. Other advertising businesses employ popular superstars to market their products. The like is becoming endorsers for McDonald's worldwide "loving' it" plan. Moreover, the functions of McDonald's have significantly been infused with new technology. Elements like the inventory system and the management of the worthiness chain of the company allows for easy payments for their suppliers and other distributors which the individual stores in respective markets offer with. The integration of technology in the operations of McDonalds have a tendency to add value to their products. Quite simply, this is manifested in the improvements on its value chain. The improvement of the inventory system as well as its source chain allows the company to operate within an international framework.

E. Legal Factors

There has been the recurrent bellowing in opposition to the junk food industry. This has similarly made McDonald's apply a far more careful consideration on the corporate social responsibilities. Overall, this addressed the necessity of the company to create its commercial reputation to a far more positive one and a more socially accountable company. ( 2005) The reputation of McDonald's is seemingly a huge subject. Seen on the website of the business, it seems that they have purchased strides to take in hand the key social censures that they have been berating them before decades. The business has provided their customers the relevant data that they want with regards to the nutritional chemicals with their products. That is to wait to the arguments of obesity recharged against the merchandise of the company. In the same way, the consumers provided flexibility in choosing whether they want to buy their foods.

This is tied up with the socio-cultural characteristics of the marketplace on which they operate. For instance, operations in mainly Muslim countries require their beef to conform to theHalalrequirements of the law. Within the same regard, those that operate in countries in the European Union should comply with the existing laws banning the utilization of genetically improved meat products in their food. Other legal concepts like tax commitments, employment benchmarks, and quality requirements are just some of important elements which the company has to take into consideration. Otherwise, smooth functions will be hard to achieve.

F. Environment

The social tasks of McDonald's on the state are influential to the businesses of the business. These entail accusations of environmental harm. Among the reasons why they are recharged with such statements is the hire of non-biodegradable substances for their beverages spectacles and Styrofoam coffers for the meals. (1997) Several civic communities in Hong Kong have made actions to make the McDonald's franchises in Hong Kong aware of the rather copious use of Styrofoam storage containers and the resultant abuse of the surroundings. (1997) further mentioned that in 1995, McDonald's Hong Kong travelled over the Styrofoam used by both Australia and the United States combined.


Debatably, the most significant contribution of the technology is the blend of globalization and internationalization in the businesses sector. Developments in the international environment have an effect on the greater particular factors in the procedures in individual organisations. Alterations could take placer and require extreme alterations to the businesses such that it could have a detrimental effect on the complete structure of the company. However, as suggested in the arguments and comments in this newspaper, this may be acquired by arranging a certain level of versatility in the company. This degree of flexibility is basically attained through the acquaintance of both the internal and exterior environment of the company.

Even though McDonald's might have been deemed as demigod in the fast food business in the international scene, what it preserves as discovered in its procedures is the necessity for overall flexibility. The small changes that happen on the market impact the functions of the business in any case. This denotes that having the information on the effects of these alterations swiftly provides these fast food industry giants to have fine-tuning actions on their acts and still protect their market position. As implied in the launch of this newspaper, the market segments of nowadays express a cutthroat rivalry with the average person competitors, recognized brands or elsewhere. Hence, any business in spite of the muscle of the brand name or the size of its reserves could not manage any failures in their specific markets

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