In this assignment I will identify different reasons for businesses to operate internationally and
explain the business strategies used by McDonalds to operate internationally.
Many businesses operate internationally and they all have different aims and objectives. Some
businesses might want to expand into international market and cater more customers, where as
some businesses might want to move to a country where they can find cheap labour and hence
cheaper manufacturing costs. Some businesses are looking for more technological advance countries
where they can target a different type of customers. Also some businesses move and operate from
countries where they have to pay lower taxes and therefore they can cut down on their expense and
increase profits. All of the reasons mentioned can encourage businesses to go international in order
to give its company and the product a greater value, or to increase its sales and earn a good
reputation. Operating internationally means the business will have more source of income and
entering new emerging markets can make it easier for the business to become popular and well
establish itself as competition would be less as well. Cost reduction is yet another reason as every
business wants to save as much money as possible on the production of its product, including raw
materials, transportation, electricity and even taxation.
McDonalds operate internationally with an aim to cater the growing number customers, their
customers are located globally and hence McDonalds wants to operate in every country. McDonalds
emerge into new markets almost every year and opens new branches almost every other day. This is
due to the fact that it has a great customer base and a huge demand for its product. McDonald’s
products are well known for its quality and unlike other businesses people come to McDonalds from
far distances! McDonalds products are fresh and can’t be imported from other countries hence the
country McDonalds operate in they just buy it from good well known local suppliers in order to keep
up with their quality, hence McDonalds is not looking to save money by operating internationally as
they buy the products from local suppliers. McDonalds machinery and products are not
technological oriented products as a result they can be found in any country. Therefore McDonalds
only operate internationally to emerge into new markets to gain more customers for their quality
products.
McDonald’s promotes and markets its products and services in many different ways. The most
frequent method is done using their access to advanced technology that helps them to establish
connections on social websites which millions of customers use daily. McDonalds have almost 63
Million Facebook fans largely because of its quality and reputation that helps them to grow every
second. This helps McDonalds to advertise their products in an efficient way that can help
McDonalds to reach Millions of its fans in seconds. This can help McDonalds to establish a new
product/service in the market and that way the message can be spread to Millions of customers in
just few minutes. Another frequent and useful method that McDonalds use to market its product is
using Billboards as they can be seen by customers whenever they are on the road. The content in the
billboards help McDonalds to attract their customers through eye catching products, limited time
products and even discounts. Also McDonalds use electronic advertisement to get consumers
attraction through YouTube, commercials and newspapers. McDonalds can use their savings to
establish their presence overseas as they have made huge sums of profits from its worldwide stores
and with the reputation that McDonalds has it is very rare that people would dislike the store.
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explain the business strategies used by McDonalds to operate internationally.
Many businesses operate internationally and they all have different aims and objectives. Some
businesses might want to expand into international market and cater more customers, where as
some businesses might want to move to a country where they can find cheap labour and hence
cheaper manufacturing costs. Some businesses are looking for more technological advance countries
where they can target a different type of customers. Also some businesses move and operate from
countries where they have to pay lower taxes and therefore they can cut down on their expense and
increase profits. All of the reasons mentioned can encourage businesses to go international in order
to give its company and the product a greater value, or to increase its sales and earn a good
reputation. Operating internationally means the business will have more source of income and
entering new emerging markets can make it easier for the business to become popular and well
establish itself as competition would be less as well. Cost reduction is yet another reason as every
business wants to save as much money as possible on the production of its product, including raw
materials, transportation, electricity and even taxation.
McDonalds operate internationally with an aim to cater the growing number customers, their
customers are located globally and hence McDonalds wants to operate in every country. McDonalds
emerge into new markets almost every year and opens new branches almost every other day. This is
due to the fact that it has a great customer base and a huge demand for its product. McDonald’s
products are well known for its quality and unlike other businesses people come to McDonalds from
far distances! McDonalds products are fresh and can’t be imported from other countries hence the
country McDonalds operate in they just buy it from good well known local suppliers in order to keep
up with their quality, hence McDonalds is not looking to save money by operating internationally as
they buy the products from local suppliers. McDonalds machinery and products are not
technological oriented products as a result they can be found in any country. Therefore McDonalds
only operate internationally to emerge into new markets to gain more customers for their quality
products.
McDonald’s promotes and markets its products and services in many different ways. The most
frequent method is done using their access to advanced technology that helps them to establish
connections on social websites which millions of customers use daily. McDonalds have almost 63
Million Facebook fans largely because of its quality and reputation that helps them to grow every
second. This helps McDonalds to advertise their products in an efficient way that can help
McDonalds to reach Millions of its fans in seconds. This can help McDonalds to establish a new
product/service in the market and that way the message can be spread to Millions of customers in
just few minutes. Another frequent and useful method that McDonalds use to market its product is
using Billboards as they can be seen by customers whenever they are on the road. The content in the
billboards help McDonalds to attract their customers through eye catching products, limited time
products and even discounts. Also McDonalds use electronic advertisement to get consumers
attraction through YouTube, commercials and newspapers. McDonalds can use their savings to
establish their presence overseas as they have made huge sums of profits from its worldwide stores
and with the reputation that McDonalds has it is very rare that people would dislike the store.
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