18th April 2024
To: Garima Srivastava, Senior Trade & Customs Specialist, Institute of Export & International
Trade
From: Aminah
Strategies and Resources
Introduction
McDonald’s is one of the largest fast-food chain markets, where the business is evolving every year with
the way it displays itself to the public. The multinational business, according to Statista, has generated
profit (net profit) calculating to 8.47 billion US Dollars in 2023 alone. The reason for the success of the
business is due to the strategies and resources they have applied ensuring they reach a high ceiling of
succession.
Within this report, I will explain how the products and processes of McDonald’s are adapted to provide
support towards McDonald’s aim of exploiting international markets. Following through, I will analyse the
strategies and resources being used by McDonald’s to keep the business moving effectively and
conclude the report with an evaluation upon how successful the strategies and resources have been of
use for McDonald’s in international markets.
How products and processes must be adapted for international markets.
UAE
McDonald’s, as a franchise, have had to reengineer and adapt to the changes when operating globally.
The business has changed their products including their burgers within Muslim countries (UAE) to halal
meat and do not offer pork/gelatine related items. This would mean McDonald’s would have to change
their suppliers for the Muslim countries to ensure they are being respectful and mindful of the difference in
religious belief. Although McDonald’s have changed some products to adjust to the countries' needs, it is
constant throughout the whole country, which benefits them in each country as the capital costs would
remain consistent unless there has been an increase in the raw material items. However, other countries
will see differences due to adjustments of the country’s religious beliefs but nonetheless, this has been a
success for McDonald’s. Link one
Japan
Another way McDonald’s have had to adapt is to Japanese culture. They had been offering a stronger
culinary experience within Japan, and this impacted the businesses revenue positively. Japan mentioned
how they feel respected from the adjustment made for their country, as they have also stated McDonald’s
have confided to the country’s religious tradition. An example of this is how they have presented a
Buddhist monk in front of the building. Overall, it highlights how McDonald's adapted their style of cuisine
for Japan and have been successful from it. Link two
Pakistan
Additionally, in Pakistan, McDonald’s timing is different in comparison to the UK. Due to Ramadan, the
country has opted to open stores after sunset and until sunrise as fasting means not eating for the day.
This rule would not be implemented in a Christian dominated country, however, as this is a Muslim
dominated country, McDonald’s chose this to also guarantee consumers attending at time when they can.
, This approach is constant in all Muslim dominated countries. Hence, the adaptation has proven to be a
success as they are still able to generate profit at those hours. Link three
UK
Within the UK, the calories per product have significant differences to the country McDonald’s main store
is. This shows how for the health of the country’s people, the UK has decreased the amount of salt in their
food as the country is health conscious. This highlighted how McDonald’s in the UK have adapted in their
own ways and overall, they have been successful from the difference in consumption of calories. Link four
Vietnam
In Vietnam, the culture of having a meal together is highly valued, however, McDonald’s brand is based
on a singular person's needs. Therefore, McDonald's introduced the family meal with different options,
one of which included two cheeseburgers, four small fries, ten-piece chicken nuggets, two Big Macs and
two drinks. However, McDonald’s was not successful within Vietnam for other reasons. The reason being
the country enjoys having organic, healthy meals whereas McDonald's is overloaded with oil and
unhealthy food items. Overall, the unsuccessfulness cost them however, due to them being a high
generated business, it did not affect them indefinitely. Link five
USA
As McDonald’s have a large family consumer base, they have implemented ways to attract them for large
events, they have done this by adding in a children's play area. This was an adaptation which the USA
introduced for themselves later introducing in other countries. It has proven to be a success as many
families would host birthday parties for their children, which meant they would see an increase in their
overall profit. Although it was not a huge adaptation they had to commit to, it was still approached as risky
because it was not guaranteed. Therefore, this is perceived as an adaptation McDonald’s had to do as it
would mean they would invest in more space for the kids playing in the pit. Link six
South Korea
McDonald’s has introduced advertising differently in countries such as South Korea by using celebrities,
such as the popular girl band called NewJeans. McDonald’s incorporated this advertising differently by
having special meals which have been successful due to the popularity of the band itself. Their influence
impacted McDonald’s positively. Their YouTube video campaign was a successful hit, aiming over ten
million views, therefore, this adaptation of advertising, helped South Korea McDonald's to gain further
popularity of its business. Link seven
Analyse the effectiveness of the strategies and resources used by McDonald’s.
Strategies
Franchising
McDonald’s is known for being one of the most prefunded companies participating in franchising, the way
this strategy is effectively used by McDonald’s as it allows them to build further networks in many areas of
a country. With building more networks, McDonald’s could benefit from reducing costs upon advertising
and building campaigns, although this is always encouraged by the brand to follow through with.
Franchising itself has negatives such as being restricted from improving or changing items on the menu. If
wanted, they would have to ask permission from McDonald’s CEO. Due to McDonald’s having a
hierarchical organisational structure, this would make it more difficult to get in contact, hence franchising
can affect McDonald’s. However, the positive of having a franchise is to the public it is recognisable, and
as McDonald’s are a global business and have popularity, this benefits them immensely. Therefore, there
are both positives and negatives of McDonald’s franchising, however, there is a more positive impact.
To: Garima Srivastava, Senior Trade & Customs Specialist, Institute of Export & International
Trade
From: Aminah
Strategies and Resources
Introduction
McDonald’s is one of the largest fast-food chain markets, where the business is evolving every year with
the way it displays itself to the public. The multinational business, according to Statista, has generated
profit (net profit) calculating to 8.47 billion US Dollars in 2023 alone. The reason for the success of the
business is due to the strategies and resources they have applied ensuring they reach a high ceiling of
succession.
Within this report, I will explain how the products and processes of McDonald’s are adapted to provide
support towards McDonald’s aim of exploiting international markets. Following through, I will analyse the
strategies and resources being used by McDonald’s to keep the business moving effectively and
conclude the report with an evaluation upon how successful the strategies and resources have been of
use for McDonald’s in international markets.
How products and processes must be adapted for international markets.
UAE
McDonald’s, as a franchise, have had to reengineer and adapt to the changes when operating globally.
The business has changed their products including their burgers within Muslim countries (UAE) to halal
meat and do not offer pork/gelatine related items. This would mean McDonald’s would have to change
their suppliers for the Muslim countries to ensure they are being respectful and mindful of the difference in
religious belief. Although McDonald’s have changed some products to adjust to the countries' needs, it is
constant throughout the whole country, which benefits them in each country as the capital costs would
remain consistent unless there has been an increase in the raw material items. However, other countries
will see differences due to adjustments of the country’s religious beliefs but nonetheless, this has been a
success for McDonald’s. Link one
Japan
Another way McDonald’s have had to adapt is to Japanese culture. They had been offering a stronger
culinary experience within Japan, and this impacted the businesses revenue positively. Japan mentioned
how they feel respected from the adjustment made for their country, as they have also stated McDonald’s
have confided to the country’s religious tradition. An example of this is how they have presented a
Buddhist monk in front of the building. Overall, it highlights how McDonald's adapted their style of cuisine
for Japan and have been successful from it. Link two
Pakistan
Additionally, in Pakistan, McDonald’s timing is different in comparison to the UK. Due to Ramadan, the
country has opted to open stores after sunset and until sunrise as fasting means not eating for the day.
This rule would not be implemented in a Christian dominated country, however, as this is a Muslim
dominated country, McDonald’s chose this to also guarantee consumers attending at time when they can.
, This approach is constant in all Muslim dominated countries. Hence, the adaptation has proven to be a
success as they are still able to generate profit at those hours. Link three
UK
Within the UK, the calories per product have significant differences to the country McDonald’s main store
is. This shows how for the health of the country’s people, the UK has decreased the amount of salt in their
food as the country is health conscious. This highlighted how McDonald’s in the UK have adapted in their
own ways and overall, they have been successful from the difference in consumption of calories. Link four
Vietnam
In Vietnam, the culture of having a meal together is highly valued, however, McDonald’s brand is based
on a singular person's needs. Therefore, McDonald's introduced the family meal with different options,
one of which included two cheeseburgers, four small fries, ten-piece chicken nuggets, two Big Macs and
two drinks. However, McDonald’s was not successful within Vietnam for other reasons. The reason being
the country enjoys having organic, healthy meals whereas McDonald's is overloaded with oil and
unhealthy food items. Overall, the unsuccessfulness cost them however, due to them being a high
generated business, it did not affect them indefinitely. Link five
USA
As McDonald’s have a large family consumer base, they have implemented ways to attract them for large
events, they have done this by adding in a children's play area. This was an adaptation which the USA
introduced for themselves later introducing in other countries. It has proven to be a success as many
families would host birthday parties for their children, which meant they would see an increase in their
overall profit. Although it was not a huge adaptation they had to commit to, it was still approached as risky
because it was not guaranteed. Therefore, this is perceived as an adaptation McDonald’s had to do as it
would mean they would invest in more space for the kids playing in the pit. Link six
South Korea
McDonald’s has introduced advertising differently in countries such as South Korea by using celebrities,
such as the popular girl band called NewJeans. McDonald’s incorporated this advertising differently by
having special meals which have been successful due to the popularity of the band itself. Their influence
impacted McDonald’s positively. Their YouTube video campaign was a successful hit, aiming over ten
million views, therefore, this adaptation of advertising, helped South Korea McDonald's to gain further
popularity of its business. Link seven
Analyse the effectiveness of the strategies and resources used by McDonald’s.
Strategies
Franchising
McDonald’s is known for being one of the most prefunded companies participating in franchising, the way
this strategy is effectively used by McDonald’s as it allows them to build further networks in many areas of
a country. With building more networks, McDonald’s could benefit from reducing costs upon advertising
and building campaigns, although this is always encouraged by the brand to follow through with.
Franchising itself has negatives such as being restricted from improving or changing items on the menu. If
wanted, they would have to ask permission from McDonald’s CEO. Due to McDonald’s having a
hierarchical organisational structure, this would make it more difficult to get in contact, hence franchising
can affect McDonald’s. However, the positive of having a franchise is to the public it is recognisable, and
as McDonald’s are a global business and have popularity, this benefits them immensely. Therefore, there
are both positives and negatives of McDonald’s franchising, however, there is a more positive impact.
