Solved Case Studies

McDonald Case Study with Solution in 2020 | International Business Case

McDonald Case Study with Solution

McDonald Case Study Details

McDonald’s was born in San Bernardino, California in 1940. It started as a fast-food restaurant by brothers Maurice and Richard McDonald. From being a restaurant the owners turned the business into a hamburger outlet before exploring the franchise business. They started using the logo named Golden Arches in 1953. After joining the company in 1955, Ray Kroc purchased the McDonald’s chain. Its new headquarters is located in Chicago, Illinois.

In terms of revenue, McDonald’s is considered as the biggest restaurant chain in the world. As of 2017, it has 37,241 restaurants around the world. While its main menu offerings consist of hamburgers and fries, the fast-food chain serves other items, including milkshakes, soft drinks, desserts, breakfast fare, products made with chicken, and wraps.

McDonald Case Study with Solution

Consumer tastes change and the company responds to the changes by offering healthy food. To counteract the perceived unhealthiness of their main menu offerings, McDonald’s also serves fruits, smoothies, fish items, and salads.

Like other companies, McDonald’s also faced some challenging times. Still, the company was able to withstand the drawbacks, making it one of the most successful fast-food franchises in the world. It’s interesting to know how McDonald’s maintains its success.

McDonald Case Study with Solution

Question: Why McDonald needs to change its marketing form country to country. Explain your answer in detail with relevant examples.

McDonald Case Study with Solution

McDonald’s is one of the most well-known brands of the world, their franchise is almost in every country of the world, being a giant of the food industry, McDonald’s still faces many problems related to their marketing that they have to apply on the different countries, they have to make a separate marketing strategy for every country because of the good diversification in the behaviors, tastes, preferences of the customers, say Asian countries prefer the meat of Cows or some vegetarian stuff whereas other countries prefer the meat of ducks and even pigs.

McDonald Case Study with Solution
McDonald Case Study with Solution

Economy:

The economy can be considered as one of the most important factors that can influence any company globally so does the case with McDonald’s. Every country is an indifferent sort of economy state, some are still developing and some are still in the undeveloped phase, like. For Example, A McDonald burger that will cost around $50 in the USA, will cost around Rs. 8000 in Pakistan.

So in terms of the exchange rate, which is almost the half-month salary of a regular person in Pakistan, that is why McDonald faces some problems when they enter in any other international market, McDonald has to make too many fluctuations with the prices according to the geographical territory that they expanding to in order to gain the market share and compete against the local competitors.

Culture in McDonald Case Study with Solution
Culture in McDonald Case Study with Solution

Culture and Religion:

McDonald’s is operating its business globally. So, they face different culture customers having different sorts of norms, beliefs, rituals and that is another factor that affects the overall marketing strategies of McDonald’s. They have to take into consideration every aspect of the culture and religious point of view in order to sustain in that market, For Example, in India.

If McDonald will follow the same menu as they are providing in Pakistan or USA then they might be in big trouble because Indian consider Cows as a symbol of God and are highly sensitive about the slaying of Cows, so if McDonald follows with the meat in their burgers Indian not only won’t but from them but also McDonald’s might face some sort of protest which will lead to the closure of their business in India.

So that’s why they have to make an eye each of the cultural effects that they can come across and then decide what they should do in order to gain the market share and also create demand. McDonald’s main menu offers mostly Vegetarian stuff which is helping them to be one the biggest brand in India, similarly banning pig meat in Pakistan, and using only Cow meat is helping them gain the market share in Pakistan.

Environmental Factors in McDonald Case Study with Solution
Environmental Factors in McDonald Case Study with Solution

Environmental Factors:

McDonald’s is right being one of the most famous franchise in the whole world, where ever they expand their business they make sure about all the factors that can cause the problem, in the long run, one of those factors is environmental issues, the concern is that whether McDonald is taking care of the environment or not, In USA people are very sensitive about how companies are handling their wastages, so does the case with McDonald, For Example, people are inclined about how they dispose of their wastage of foods, napkin, paper plates, and other stuff and for this concern, McDonald’s announced a Rain Forest Policy, which makes its pledge to hamburger buying practices that don’t add to tropical deforestation.

According to this announcement, no disposal will be waste in the water or burn out any of the waste, they won’t apply any disposal methods that could have an effect on nature and atmosphere or even on land of the territory. This suggests a green marketing strategy by McDonald’s which is in trend in most of the countries in order to save the earth from the population.

Globalization in McDonald Case Study with Solution
Globalization in McDonald Case Study with Solution

Globalization:

As McDonald’s is a universal and overall cheap food organization that is the reason, globalization is affecting McDonalds corporate methodology. McDonald’s is attempting to extend its business in the worldwide market for example like China. That is the reason before moving into worldwide market McDonald’s needs to consider the district, culture, and religion of clients. Progressively over McDonald’s needs to think about food propensity and picked of a client of new locales. What’s more, a similar time locales government rules, law, economy, legislative issues economy, everything is affecting McDonald’s to assemble their business.

Political Factors in McDonald Case Study with Solution
Political Factors in McDonald Case Study with Solution

Political Factors:

Politics affects almost every business that expands globally, different in the laws and regulations of every state makes it tough for the companies to keep in mind of every law while making their marketing strategies and serving policies. These laws could be about the Hygiene and Health Standards given by the state, For Example: If McDonald serves in the United Kingdom, their kitchen has to be totally clean and the raw food has to be fresh enough according to the food standards given by UK government.

If McDonald’s doesn’t match the standards given their license will be disqualified and the government might shut down their place. Further laws include the taxation policies that implied on the food serving, in Pakistan 12.5% tax has been applied by the government on every food that a customer order, so dealing with these taxes and maintaining the prices of their product is becomes a big challenge for every food sectors.

McDonald Case Study with Solution

Spread the Love

Muhammad Abbas

A Graduate of IQRA University, Pursuing Masters Program from IQRA University as well, Work as an Assistant Manager - Finance in Unilever Pakistan, Having Couple of Published Articles in Internationally Recognized Journals, Aim to Help the Students in Every Possible Manner to make them Achieve their Desire Goals!!! :) :) :) Keep Learning!!!

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button