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McDonald's Global Operations

Question:

Why McDonald Has A Different Political & Legal Role In Every Country?

McDonalds Corporation is one of the fastest growing food chain restaurants in the world serving more than 47 million people worldwide.  They are currently serving to the customers through their worldwide restaurant chain.  They have includes various fast food and soft drinks in their menu. Many of the McDonalds restaurants provide with a playground for the children. They are using effective marketing strategies by gearing advertisement campaigns. McDonalds is based on the concept of franchising. They are working by gaining royalties and franchisees   and sales through company operated restaurants. The company is known worldwide for the effective sales and marketing strategies (Our Ambition, 2017).

 The company began its business in the year 1940. The restaurant chain was originally opened by brothers Dickand Mac McDonald in Bernardino, California. They were the pioneers of speed service system in the year 1948 by establishing the principles in the modern fast food chain.  With the expansion of the company, they have incorporated a different business model.  They are symbol of globalization with a maximum outreach (Macca’s® Story, 2017). 

 The purpose of the brand is to sell good quality products. For achieving the goals the brand is using positive force for their customers, society and the world. The overall purpose of McDonalds is to promote choices. This is done by serving good food. They promote real ingredients, promotes good choice and transparency. Sustainability is the primary purpose of the brand. This is to acknowledge the overall growing need of food with a good taste (Farfan, 2016.).

Mc Donald’s creates opportunities for the society by encouraging people. They are offering job opportunity to the diverse workforce. This has facilitated in efficient growth structure in the market.  They are also rewarding the workers who are working in the goodwill of the company (Talpau and Boscor, 2011). It is through their extra ordinary strategies that the company is able to make a concrete difference to the society.

The brand values to provide good quality services to customers. They work in a clean environment where customers are able to enjoy their meal.  They are providing good quality food to the customers. This has allowed them to enjoy their meal (Han, 2009).

 The macro environmental analysis helps in analyzing the external factors that allow an individual to understand the brand relationship with the external market.  In a highly competitive economy it is relevant for the brand to understand the need of an effective business strategy. All these strategies will allow the brand to make a remarkable difference in the global platform.

The international operation of McDonalds is influenced by the political operation in the country. The policies in the country are the major factor that influences the working of the organization. For instance there is certain health care organization taking strict action against the fast food chains. The company works under a controlled mechanism regulated by effective policies and procedure, the specific market in McDonalds focus on the different policies and procedure as made by the local government. Every country does have a different political & legal system. Under such a different environment it has become important for the brand to understand the needs. McDonalds is able to serve to different customers in the different environment. This is due to the ethical practices by the organization that they are able to recognize different market share. There is certain level of tax obligation that they have to follow in order to gain a secured marketing position (Deng, 2009).

The Importance of Sustainability and Employment

These are one of the important fact in the food industry are the economic factors.  These fast food chains are not excluded from the dispute.  They do have individual concern related with the economic factors, the branches of McDonalds located at different corner in the world are governed by the local economy. The menu at McDonalds is priced according to the local economy and their purchasing power. McDonalds has o face hardship in case if the economy is undergoing any hardship. These are causing the revenue of the company in a long run.  Regarding the raw food material, McDonalds is importing it from other countries. The change in the exchange rate is one of the factors that are influencing overall sales of the company. They do have to consider the market standing of the product in order to make a considerable difference. The purchasing power of the economy is the key influential factors that are considered to keep a check over the prices the franchisee located in the different countries need to make effective measures to earn economy of scale (Dobni, 2010).

 The social and the cultural factors professed by different economies are the key factors that influence the company.  In order to gain market standing the brand need to work proficiently.  The company is working efficiently as per the local working model. It is important for the company to adopt the local working model to attain economies. This is important for achieving sustainable growth. They have launched sensible valued programs that help the brand in earning economies. It is necessary that the brand understand the local culture. McDonalds has established an effective chain that allows them to understand the different market needs.  The company is using the concept of consumer behavior in order to understand the needs of the customers, it is considered as one of the key influential factor for the growth of the company these business strategies allow them to attain market efficiencies by developing a concrete business model (Thompson, Peteraf, Gamble, Strickland and Jain, 2013).

 The company is using effective advertising to attract the consumers. The important part of company business strategy is to use media as a communicator. The company is using internet to attract customers from different age group.   They are using animated depiction that is very well used in their advertisement campaign. The operations of McDonalds are operated by the efficient technology.  The different elements in the organization are controlled by the technology.  McDonalds is a live example of integration of technology on day-to-day function.  This has helped the brand in gaining an effective value chain (Mujtaba and Patel, 2011).

These are the important factors that are been regulating the food industry largely. McDonalds uses an effective corporate social responsibility model. This model allows them to gain market competency.  The reputation of the brand is developed due to the key marketing strategies as developed by the brand.  The company has provided relevant data to the customers that have helped them in gaining a sustainable market place. They are following the local rules as made by the governing authority.  Other legal concepts like tax obligation. Employment standards are effectively followed by the company (Stonehouse, Campbell, Hamill and Purdie, 2009).

The Impact of Political and Legal Factors

The social responsibility is effectively used by the company is important for the company.  The company is using effective environmental strategies that will allow the brand to make a sustainable difference. The environmental needs are used efficiently to make a difference to the society.  The company is using sustainability model   to achieve competency in the field of environment sustainability (Yuece, 2012).

The business model of McDonalds is based on the market development strategy. For the purpose the brand is expanding into the growing market in Asian countries.  The penetration in the Asian countries has allowed the brand to gain high potential.  McDonalds has gained success in the market of Seoul, Beijing, India and UAE due to its effective business strategy model.   There are other regions in the Asian market that promise high sales. This creative food chain can gain effective market growth through their market strategies.  These creative market strategies allow the brand to gain enough of market space (Corporate Strategy, 2017).

The processor global expansion is carried through the effective franchising policies. The successful franchising policies allow the brand to make a remarkable difference.  More than 80 percent of the restaurants are operated in the basis of the franchising system (Corporate Strategy, 2017).

 The best part about McDonalds is the adaptation strategy.  The company is following the business strategy as per the local market. The menu is been structured as per the local market needs. For instance the food menu in Australia will be different from the food many in India. The company has gained a sustainable share in the market through effective adaptive strategy. For the purpose they understand the local culture and food taste. This allows them to gain sustainable objectives. It is difficult for the brand to gain competency.  It is necessary for brand to maintain uniformity by managing the quality of food. This allows the brand to gain the market advantage (Gillis and Combs, 2009).

The company is known for providing value for money goods to the customers. The products used by the brand are cost efficient. They main motive of the brand is to provide high quality products to the customers located at the different corner of the world.  The customer services are focused on providing high quality services to the customers... the increasing demand of the complex food will allow the brand to create experience for the customers.

The brand should use a service differentiation. They need to focus on the differentiation strategy in order to create a sustainable market place.  This will create a sense of superior quality services.  The service differentiation strategy offers superior services at each level.  It is recommended to the CEO t create personal differentiation strategy. It is necessary to create a well trained staff. They need to make an investment in the personalized training structure, this will let brand to understand the customers perspective in an easy way. 

They should adopt an integrated promotional mix model. This model looks for a balance between the traditional and modern media channel.  This has helped the brand in defining an easy structure at work. The digital media need to be used efficiently to gain economy of scale.   They should offer additional products to the customers. This will allow the brand to provide convenience. They need to make an investment in the menu. This will allow the brand to attract customers (Recommendations, 2017).

Conclusion

 To conclude the report includes the effective band strategy at McDonalds. The brand is known across the world for the effective brand strategy. It includes the eternal marketingstrategies and provides recommendations in an effective way. The report suggests different measures that can be utilize by the brand in order to create competitive ability. It has to realize the competencies that are required to generate desirable market capacity.

References

Corporate Strategy, 2017. Online. Available at: https://mcdonalds600.weebly.com/corporate--business-strategy.html Accessed on: 16 May 2017

Deng, T., 2009. McDonald's New Communication Strategy on Changing Attitudes and Lifestyle. International Journal of Marketing Studies, 1(1), p.37.

Dobni, C.B., 2010. Achieving synergy between strategy and innovation: The key to value creation. International journal of business science and applied management, 5(1), pp.48-58.

Farfan, B. 2016. McDonald's Vision and Values in Mission StatementOnline. Available at: https://www.thebalance.com/mcdonalds-mission-statement-2891825 Accessed on: 16 May 2017

Gillis, W.E. and Combs, J.G., 2009. Franchisor strategy and firm performance: Making the most of strategic resource investments. Business Horizons, 52(6), pp.553-561.

Han, J., 2009. The business strategy of Mcdonald’s. International Journal of Business and Management, 3(11), p.72.

Macca’s® Story, 2017. Online. Available at: https://mcdonalds.com.au/about-maccas/maccas-story Accessed on: 16 May 2017

Mujtaba, B.G. and Patel, B., 2011. McDonalds Success Strategy And Global Expansion Through Customer And Brand Loyalty. Journal of Business Case Studies (JBCS), 3(3), pp.55-66.

Our Ambition , 2017. Online. Available at: https://corporate.mcdonalds.com/mcd/our_company/our-ambition.html Accessed on: 16 May 2017

Recommendations, , 2017. Online. Available at: https://mcdonalds600.weebly.com/recommendations.html Accessed on: 16 May 2017

Stonehouse, G., Campbell, D., Hamill, J. and Purdie, T., 2009. Global and transnational business: strategy and management. John Wiley & Sons.

Talpau, A. and Boscor, D., 2011. lletin of the Transilvania University of Brasov. Economic Sciences. Series V, 4(1), p.51.

Thompson, A., Peteraf, M., Gamble, J., Strickland III, A.J. and Jain, A.K., 2013. Crafting & Executing Strategy 19/e: The Quest for Competitive Advantage: Concepts and Cases. McGraw-Hill Education.

Yuece, I., 2012. SWOT Analysis of McDonald's and Derivation of Appropriate Strategies. GRIN Verlag.

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