Cross Culture Management

McDonalds - Brief
More than 30000 restaurants in 120 countries Market share ranking 7.5% (Double of Buger King) Rebranded in 2004 Higher sales overseas

Disaster comes..
December 2002 First quarterly loss Effect Causes mentioned Actual cause

Growth stage
2003 Improving existing restaurants New Menu offerings Attempt to improve service

Problems faced
Mcdonalds Products made people Obese Adapting to the local market

Adapting to the local market

New Zealand & canada- parking for mothers Britain- Organic Milk Italy- Fruit Cups Spain Bottled water & cow-Fat yoghurt Italy& Netherlan- Child care staff Arabia McArabic

Adapting to india
Majority of vegetarian Segregation of Veg & Non- veg McMaharaja was introduced

Saudi Arabia
Outlets closed five times a day Introduced McArabia Gender Segmentation No women workers Separate Dinning area(Women)

Contd
France
Themed Restaurants Corque Mcdo

Turkey
Double Kofte Burger

Religion
Muslims avoided Mcdonals products Non Muslim employees Contaminating vegetarian products

Political
Country of origin(Iraq Wars) Political views

Local menu adaption Sports Sponsorships Community Relations

Cross Culture Differences

Differences in language , research , segmentation etc. Factors as key to rationalization process: efficiency predictability calculability control

OFFENCES AGAINST Mc DONALDS

The offences were because of the psychographic segmentation. Due to the cultural biasness McDonald's had to see a downfall in its business.

THANK YOU