1.

Explain the stages a company goes through as its management orientation evolves from domestic and
ethnocentric to global, polycentric and geocentric. (35%).

The company’s response to global market opportunities will depend greatly on its management assumptions and
beliefs. They can be viewed as ethnocentric, polycentric, regiocentric and geocentric. They can be clearly shown in
the EPRG framework . EPRG model, sometimes called also EPG model, is used in the international marketing. It was
introduced by Perlmutter (1969). The strategy of the organization is characterized by three factors: ethnocentrism,
polycentrism and geocentrism. Hence, the original name – EPG. A little later, Wind, Douglas and Perlmutter (1973)
extended this model by another factor - regiocentrism. This model aims to identify the orientation of the
organization. The EPG 3 elements are shown below:

 Ethnocentrism (home country orientation)

A person who assumes that his/her home country is superior to the rest of the world. At some companies the
ethnocentric means that opportunities outside of the home country are ignored (domestic
companies).Ethnocentric companies that conduct business outside their home country are known as
International companies. They believe product that succeed in the home country are superior.

 Polycentrism (host country orientation)

The opposite view of ethnocentrism. The belief that each country in which you do business is unique. This
assumption allows each subsidiary to develop its own unique marketing strategies in order to succeed. The term
Multinational Company is often used to describe such a structure.

 Geocentricism (world orientation)

Views the entire world as a potential market and strives to develop integrated global strategies. These
companies are known as Global or Transnational companies (Toyota and Honda are examples of companies that
exhibit key characteristics of transnationality.

As the company management orientation evolves through the 3 elements of EPG it goes through the
Internalisation stages which are as follows :

STAGE 1
Domestic Company: Most international companies have their origin as domestic companies. The
orientation of a domestic company essentially is ethnocentric. A purely domestic company “operates
domestically because it never considers the alternative of going international. The growing stage-one
company, when it reaches growth limits in its primary market, diversifies into new markets, products and
technologies instead of focusing on penetrating international markets. A domestic company may extend its
products to foreign markets by exporting, licensing and franchising. The company, however is primarily
domestic and the orientation essentially is ethnocentric.

STAGE 2
International company: is normally the second stage in the development of a company towards the
transnational corporation. The orientation of the company is basically ethnocentric and the marketing
strategy is extension, i.e, the marketing mix “developed‟ for the home market is extended into the foreign
markets.

STAGE 3
Multinational Company: When the orientation shifts from ethnocentric to polycentric, the international
company becomes multinational. In other words, “when a company decides to respond to market
differences, it evolves into a stage-three company is multinational that pursues a multi-domestic strategy.
The focus of the stage-three company is multinational or, in strategic terms, multi-domestic (that is, the
company formulates a unique strategy for each country in which it conducts business).

STAGE 4
Global Company: Global company re presents stage four in the evolution of companies. The orientation of
a Global company is geocentric. The global company will have either a global marketing strategy or a global
sourcing strategy but not both. It will either focus on global markets and source from the home or a single
country to supply these markets, or it will focus on domestic market and source from the world to supply
its domestic channel.

STAGE 5
Transnational Corporation: is much more than a company with sales, investments and operations in many
countries. This company, which is increasingly dominating markets and industries around the world, is an
integrated world enterprise that links global resources with global markets at a profit. Transnational
companies fall under geocentric companies.
 STAGES OF DOMESTIC TO GLOBAL EVOLUTION

Management Stage one Stage two Stage three Stage four Global
emphasis Domestic International Multinational
Focus Domestic Ethnocentric Polycentric Geocentric
Marketing strategy Domestic Extension Adaption Extension

Structure Domestic International Worldwide area Adaption creation

matrix/mixed
Management style Domestic Centralised top down Decentralised bottom Integrated
up
Manufacturing Mainly Mainly domestic Host country Lowest cost
stance domestic worldwide
Investment policy Domestic Domestic used Mainly in each host Cross subsidization
worldwide country
Performance Domestic Against home country Each host country Worldwide
evaluation market share market share market share

2. Make an analysis of the competitiveness of one product in the global market and alternative strategies to enter
the international market. Use the data to analysis. (65%).

Competitive analysis is identifying your competitors and evaluating their strategies to determine their strengths and
weaknesses relative to those of your own product or service. A competitive analysis is a critical part of your company
marketing plan. This is very important especially for companies to enter the global or international market. Global
marketing is defined as the process of adjusting the marketing strategies of your company to adapt to the conditions
of other countries. Of course, global marketing is more than selling your product or service globally. It is the full
process of planning, creating, positioning, and promoting your products in a global market.

International marketing (IM) or global marketing is a marketing done on international level. The International
Marketing is based on strategy created in home country of company and distributed to its other offices. In most
cases it is international company level (company have offices in different countries) market identification and
targeting. International Marketing is very similar to Global marketing. The main difference will be the fact that Global
Marketing is focusing on intercontinental point of view. The example of International Marketing would be where an
English company would like to enter Chinese market. It will be done by either developing marketing strategy in their
home country that will be then introduced in new market or they will hire company to create such a plan.

McDonald EXAMPLE

The McDonald's Corporation is one of the most successful global restaurant chains around the world. They
have used effective management and global expansion strategies to enter new markets and gain a share of
the foreign fast food market. In this case I will present McDonald’s, its competitive analysis and its strategies
to enter the international market.

EXECUTIVE SUMMARY OF MCDONALD

The Company operates and franchises McDonald’s restaurants, which serve a locally-relevant
menu of quality food and beverages sold at various price points in more than 100 countries.
McDonald’s global system is comprised of both Company-owned and franchised restaurants.

McDonald’s franchised restaurants are owned and operated under one of the following structures
- conventional franchise, developmental license or affiliate. The business relationship between
McDonald’s and its independent franchisees is of fundamental importance to overall
performance and to the McDonald’s Brand. This business relationship is supported by an
agreement that requires adherence to standards and policies essential to protecting our brand. The
Company is primarily a franchisor, with more than 90% of McDonald's restaurants currently
owned and operated by independent franchisees. Franchising enables an individual to be their
own employer and maintain control over all employment related matters, marketing and pricing
decisions, while also benefiting from the strength of McDonald’s global brand, operating system
and financial resources. The Company’s typical franchise term is 20 years. The Company
requires franchisees to meet rigorous standards and generally does not work with passive
investors. The business relationship with franchisees is designed to ensure consistency and high
quality at all McDonald’s restaurants. Conventional franchisees contribute to the Company’s
revenue through the payment of rent and royalties based upon a percent of sales, with specified
minimum rent payments, along with initial fees paid upon the opening of a new restaurant or
grant of a new franchise .

Products

McDonald’s restaurants offer a substantially uniform menu, although there are geographic
variations to suit local consumer preferences and tastes. In addition, McDonald’s tests new
products on an ongoing basis. McDonald’s menu includes hamburgers and cheeseburgers,
chicken sandwiches, wraps, french fries, salads, oatmeal, shakes, desserts, sundaes, soft serve
cones, pies, soft drinks, coffee and other beverages. In addition, the restaurants sell a variety of
other products during limited-time promotions. McDonald’s restaurants in the U.S. and many
international markets offer a full or limited breakfast menu. Breakfast offerings may include Egg
McMuffin, Sausage McMuffin with Egg, McGriddles, biscuit and bagel sandwiches and
hotcakes.

McDonald C OMPETITORS

The top 10 competitors in McDonald's competitive set are KFC, Burger King, Subway, Starbucks, Dunkin' Brands,
Pizza Hut, Wendy's, Domino's Pizza, Jack in the Box and Tim Hortons. Together they have raised over 5.4B between
their estimated 403.5K employees.McDonald has 210,000 employees and is ranked 2nd among it's top 10
competitors. The top 10 competitors who comes with the brand identities making it more difficult to
enter and survive and then succeed in the international market.

Market share of the company

McDonald's reported its second-quarter 2019 results. The fast-food

chain bested analyst expectations, especially in same store
sales. Global same-store sales expanded by 6.5%, the most in seven
years. Shares rose roughly 2% in early trading on the report.
McDonald's has continued to improve its menu, recently rolling out
burgers with fresh beef and releasing new breakfast items.

Customers and investors all around the world love McDonald's.

Here's what the company reported :

Adjusted earnings-per-share:$2.05 reported versus $2.05

(expected)

Revenue: $5.34 billion reported versus $5.33 billion (expected)

Comparable store sales in the US: +5.7% versus +4.4%
(expected)

Global comparable same store sales: +6.5% versus 5.1%

(expected)

McDonald's recently bested rival Wendy's when it released a new

burger made with fresh beef instead of frozen beef. The change helped
it regain the winning burger share in the "informal eating
out" category for the first time in five years. The company said that
sales of quarter-pounders increased 50% in the first quarter of the
national rollout. The fast-food chain announced that it would roll
out new breakfast items to boost its morning sales. The new menu
items include the McChicken McMuffin, Blueberry McGriddle,and
Chicken McGriddle. McDonald's recently announced a partnership
with DoorDash to deliver most of its menu items to consumers. The
deal ended the company's exclusive partnership with UberEats. Fast-
food companies have been on an upward climb recently with
restaurants such as Chipotle and Starbucks also reporting strong
quarterly earnings. Many fast-food and casual dining companies have
seen big gains in shares this year, and some have even outperformed
the S&P 500, which has gained roughly 20% year-to-
date. McDonald's is up roughly 21% year-to-date.

Strengths and weakness of McDonald’s

McDonald’s is considered as one of the most loved and popular brands around the globe in any industry. It has a
strong good will, reputation and the most powerful brand in the whole category of fast food chain throughout the
world. McDonald’s being only half the size of the competitors, and thus became the leader of local as well as
international markets. McDonald’s has a very strong real estate portfolio which can be observed on the position of
the store of McDonald’s which are located in different parts of the globe. Mainly the strength of the company is
cheap and best and at the same time fast service is available.

Strengths

1. The second-largest restaurant network serving customers in over 120 countries

As of 2018, McDonald’s operates the second-largest restaurant network in the world. In total, the
company and its franchisees operate 37,241 restaurants in 120 countries.

Figure 1. Largest quick service restaurant (QSR)

chains by number of locations in 2018

Rank Brand Name Locations

1. Subway 43,772

2. McDonald's 37,241

3. Starbucks 27,339

4. KFC 21,487

In terms of sales, McDonald’s outrivals any other QSR chain in the world with US$22.820
billion in sales in 2017 alone (earning slightly more than Starbucks). The sheer size of the
company’s restaurant network is a strength that provides many advantages over competitors,
including:

 Economies of scale. The company can share its fixed costs over many restaurants
locations, which makes McDonald’s one of the cheapest places to eat at.

 Huge gains from implementing best practices. The company can identify better ways
of performing tasks, managing restaurants or hiring new employees and can achieve huge
gains by implementing these best practices in its vast network of restaurants.

 Market power over suppliers and competitors. Due to its size, McDonald’s can
exercise its market power over suppliers by requiring lower prices from them. The
company clearly demonstrates this with The Coca Cola Company. Because of
McDonald’s and The Coca Cola Company’s agreement, no other restaurant chain can sell
Coca Cola drinks for lower prices than McDonald’s, even if it means losing the business
to PepsiCo. The Coca Cola Company could easily get out of such agreement if
McDonald’s wouldn’t be so huge and would generate less income for The Coca Cola
Company. McDonald’s can also use its size to affect the competition by underpricing
some of its items or driving them out of the best locations.

 Wide audience reach. McDonald’s restaurant network allows the chain to reach more
customers than most of its rivals could reach. According to the Company’s CEO in five
of its largest markets, 75% of population lives within 3 miles of McDonald’s restaurants.
 Wide audience reach does not only help the company to target more customers and
increase brand awareness, but also to introduce new services, such as home delivery.

2. The most recognizable brand in restaurant industry

McDonald’s opened its first restaurant in 1940. Since then, the company has become the world’s
largest restaurant chain in terms of revenue with the most recognizable brand in the market.
According to Forbes and Interbrand, McDonald’s brand is 9th and 12th most valuable brand in
the world, worth US$40.3 billion and US$41.533 billion, respectively. No other restaurant brand,
except Starbucks, is included in the list of the top 50 most valuable brands. The brand value is
closely related to the brand recognition and reputation. Usually, the more valuable a brand is the
better it is recognized worldwide. McDonald’s, which operates in 120 countries, where billions
of people live, enjoys some of the greatest brand awareness among all global corporations.

Only KFC operates in more countries (131)]than McDonald’s and can compare in brand
awareness with it. Brand awareness also helps to introduce new products or sell the current ones
faster as the company needs to spend less money on advertising. While, McDonald’s reputation
has suffered a lot during the years, the company is still recognized for its innovations in fast-food
industry and the American business values it brings to other countries.

Weaknesses
1.Overdependence on franchisees
The business model of McDonald’s is overdependent on franchisees which operate more than
90% of its business. While the business of McDonald’s is stable overall, franchisee issues still
crop up from time to time. The brand is planning to operate 95% of its business through
franchisees in the longer term. Currently, they are running 93% of its business. However, the
problem with operating a business near wholly through franchisee operations is that your
dependence on their cooperation increased. It also gives extra control in the hands of franchisees.
If the franchisees do not cooperate or if their financial performance is not very good, then the
company would be able to generate profits. Sometimes, the implementation of key campaigns or
an important strategic choice may become difficult if it does not find acceptance from the
franchisees. So, overall, the role of the franchisees becomes central in a company run through
franchisees. This leaves less scope for the original business owner to make quick changes to
business strategy or to respond fast to changing market situation and customer preferences.

2. Overdependent on Western Markets

As a leading fast food brand, the company is overdependent on the Western markets. U.S., UK,
Canada, France etc are among the leading markets of McDonald’s and account for the largest
part of its revenue. Moreover, the United States alone accounted for more than 35% of the
brand’s revenue in 2018. The earnings of the brand from the Asian markets including China,
Malaysia, India and Singapore is still low which signifies low market penetration. The brand is
dependent on the Western markets for a large part of its revenue and decline in economic activity
in these markets and especially the United States will hurt McDonald’s bottom line.
Opportunities
1.Digital marketing
Digital marketing has helped several leading brands around the world grow their market share
and increase their revenue. McDonald’s can also strengthen its competitive advantage by
investing in digitalization. It is already utilizing the leading digital marketing channels for
marketing. However, apart from social media, there are other channels too including the
company’s own website and blogs that can be used for marketing and customer
engagement. Digital marketing can help the brand grow its reach and influence both. However,
it can use digital technology for customer and employee engagement as well as supplier
management and managing its franchisees too.

2.Menu Innovation
Customer demand and market trends have changed fast during the recent years. The millenial
generation is a health conscious generation. It wants healthy and low calorie food. While the
company serves a balanced menu and includes competitively priced items also, there is always
enough space for menu innovation. It can help the company grow its customers among the
millenials and health conscious people. Focusing on menu innovation will help expand customer
base, grow popularity and also retain existing customers.

3.Asian markets
The Asian markets are full of opportunities. From China to India, Malaysia and Singapore and
other Asian nations, the demand for fast food has grown fast with the rise of the middle class and
the millenial generation. More and more people need to grab a quick bite. The economies of the
Asian countries have also flourished in recent years and it has led to growing purchasing power
of the middle class customers. McDonald’s can implement strategies that help it grow its
penetration in the Asian markets. This will help it grow its customer base and its revenue as
well.

Threats
1.Competitive threats
Competition in the fast food industry has grown fast leading to higher pressure on McDonald’s.
Apart from leading players like Subway, Burger King and Wendy’s competition from local
brands in several markets is also growing, This has led to higher operating costs and investment
in marketing as well as product quality. To maintain its leading position, McDonald’s will need
to grow its investment in marketing as well as menu and process innovation. Moreover, with
growing competition, the market share of McDonald’s is also at risk. To minimize these risks,
the company will need to focus upon being more customer centric as well as investing in
marketing and product research.

2.Regulatory pressure
Regulatory pressure in the industry is also growing, The fast food industry is facing higher
government control and oversight than ever. Due to growing government oversight, the costs of
operation have grown higher. The brands have grown their attention on compliance since
noncompliance can result in fines and losses. There are several other problems also arising out of
higher regulatory pressure. The brands can face troubles while expanding into overseas markets.

3.Economic fluctuations
Economic fluctuations in key markets can also cause losses and affect the bottomline. U.S., UK,
Canada, France and some other Western countries are among the core markets of McDonald’s.
Economic fluctuations or decline in economic activity in any of these markets cause losses and
affect the financial health of the company. Moreover, a stronger dollar is already affecting the
profits of american brands. Fluctuations in currency exchange rates also affect the profitability of
businesses.

External analysis of McDonald’s

The porter’s five forces model is as follows:-

PESTEL FRAMEWORKS of McDonald’s

The full form of PESTLE is Political, Economical, Social, Technological, Legal, Environmental frameworks of
McDonald’s.

1. Political framework: - The operation of McDonald’s is highly influenced by the government policies which
control the marketing of fast food restaurants because of the health issues of the youngsters in the country. The
government also restricts the lenience to open any fast food restaurant. Relations with the government provide
benefits employment and tax is a must for the company to be successful in any international market. McDonald’s
should ensure all the employees by giving them all the compensation, hiring, training, etc.

2. Economical frameworks: – This operation has low costs and more income. And it also has a very high
target market. McDonald’s, as a business entity, needs to face a number of economical variables outside
the company. McDonald’s import maximum raw materials such as potatoes and beef as the local market
cannot supply the abundant quantity to meet the demand of their products due to which the dealing with
recommendations foreign exchange becomes difficult. McDonald’s have to face the government’s rule
and regulations on the taxes of their profit and has to follow all the rules of the government if the company
wants to exist in the market. The economic condition is very important indicator to demand the
products of McDonald’s. As the prices of all the food products of McDonald’s are a little on the higher
side than the normal food and not many customers will be able to consume the products and hence the
demand of McDonald’s will go down for sure. On the other hand McDonald’s had a huge means of
disposable income, which is more and the people can spend more on expensive food in any restaurant.

3. Social frameworks:- The changing lifestyles of the people has given an impact on spending more expensive food
in any fast food restaurant and have high expectations from the restaurant and want to have good quality and more
conveniences such as facilities of the credit card should be accepted in any restaurant and the other hang-outs and
fun. It is very important that the product is available to the customers at the right place, in the right time with the
quality of the product. The ambience should be decent enough to meet the customer’s satisfaction. McDonalds has
shown great efforts in localization of its menu to suit local taste of the customers.

4. Technology framework:-Technology, for a fast food restaurants does not give high impact. McDonald’s should
improve itself in terms of integrating technologies. for the management of their operations. For example:-easy
payment, wireless internet technology, ordering systems for their customers, supply chain management for
managing its supply. New technologies can make the management more effecting and cost saving which results in
price reduction which will benefit them from time to time.

5. Legal framework:- To exists in the market McDonald’s have to follow many rule and regulations. The
owner of any firm or organization should follow the laws such as working hours, registration of the firm, the
tax formalities, quality and environment certifications, labor and employment laws etc. The legal formalities
are necessary otherwise they will be prohibited from operating the firm or penalty/fine must be paid.

6. Environment framework:- McDonald’s has always been critics for the world environment as it holds
number 1 position in consuming the world’s largest consumer of potatoes, beef and chicken. The high
consumption of beef cause the green house effect methane gases which comes out from cow’s ranch. Loss
of green forest opening for plantation activities and large scale plantation has effect the environment.
Cruelty to animals and slaughtering them is done due to which environment is effected due to vegetarians
which exists in huge number. McDonald’s even wanted to introduce whale burger in Japan as whale is
endangered spices. McDonald’s created lots of pollution for using a huge number of polythene bags for the
packaging process for the customers. After they were criticized, they started the use of paper bags for the
same. Millions of people purchase from the fast food center leaving no choice for the customers to throw
away the polythene bags which were hardly been used for recycling activities. So its our responsibility to
ensure that the environment is not effected and to take necessary steps ahead to serve a better future.

GLOBAL GROWTH AND SUCCESS INTERNATIONAL STRATEGIES

Since the start of the company in 1973, McDonald’s Corporation began spreading domestically throughout the
United States thus establishing its brand recognition. In fact, through globalization and internationalization,
McDonald’s was able to develop marketing strategies. The successful strategies are as follows:Core
Competencies:

 Pressure for Local Responsiveness

Taste and references vary in the different countries around the world. It is because of cultural, weather and
historic differences among the countries. Therefore, McDonald restaurants maintain and make their own
policies and procedure concerning Operational and business practices. These decisions are related to an
advertisement which is done according to the country specific culture, traditions and languages. In the
operational levels, there are different brands, which are made according to the traditional foods of every
region.
There is also a difference in the host govt. demands like taxes, excise duties, import duties, cultural
restrictions other restrictions imposed by the govt. These differences are also settled in the regional offices
of each country of business operation. This is because there is a difference of products like difference in
Halal meet, vegetarians in India, small size of burgers in Japan etc.
 Other Homogeneities:
It is discussed before that there is a strong culture in the organization. So, keep the homogeneity in the
products, most of the products like chicken, beef and potatoes are imported from the same area around the
world. In this way taste of almost all the product remains same around the globe.
 Leveraging Skills
McDonald also is benefited by the learning effects when a product of one region is promoted are taken to the
other regions of the world. Such as, many of the Arabian dishes of fast food have become famous in other
region franchisees around the world. As McDonald core competency is in the burger. Therefore, to get
involved in the other food businesses McDonald holds major shares in PRET A MANGER (a UK-based
sandwich retailer) and owns CHIPOTLE MEXICAN GRILL and a restaurant chain naming BOSTON MARKET. In
this way company has been able to gain a lot of management and marketing skills by leveraging these
McDonald subsidiaries and also have become able to reduce cost.

 McDonald’s Franchise Model

McDonalds primarily operates through franchises across various countries. Franchises give
companies such as McDonalds a cheaper way of expanding to other countries while also giving
the control over the usage of their brand and operations. The advantages of franchising are as
follows:

Franchises get up and running faster than other forms of ownership

They are profitable more quickly

Supplies are cheaper for the franchisee by leveraging the company’s supply chain

Initial investment is lower for the company

Control on usage of brand and operations is higher as compared to leasing

Franchisee gets assistance in terms of managerial know-how from the company

McDonald’s earns revenues from its franchisees in two forms:

Service Fees – A monthly fee depending upon the restaurant’s sales (currently a service fee of
4.0% of monthly sales)
Rent – A monthly base rent or percentage rent that is a % of monthly sales. McDonald’s usually
owns the property and also acts as the landlord.

Since McDonald’s owns most of the properties on which its franchisees operate, it collects a
percentage of monthly sales as rent. Through this method, McDonald’s now is the largest owner
of corner properties in the world.

 Emphasis on Local Management

Throughout the world, McDonald’s prides itself in hiring locals, specifically management in order to gain acceptance
into the country by its citizens. The emphasis is based on the “think global, act local” theme of the company. For
instance, the company decided to establish two joint ventures with two local entrepreneurs in New Delhi, who were
selected to manage the fast food restaurant. This strategic move allowed the company to gain easy access to the
bureaucracy associated with the country’s government.

 Politically Sensitive Strategy

One of the company’s major concerns was to develop ways to avoid political confrontation with the Indian
government. The other major concern was to be careful of the religious sensitive in India. Almost 80% of Indians do
not eat beef, and over 150 million Indian Muslims do not eat pork, therefore, instead of supplying the normal Big
Mac, which consists of beef, the company developed the Maharaja Mac that is made of two lamb patties. Other
foods were also added to the non-standardized menu including McAloo Tiki Burger, and other common Indian
dishes.

 Employment Opportunity

Foreign enterprises are often reluctant to hire locals in their companies, specifically at the managerial positions,
however, McDonald’s research concluded that in order to survive the brutal Indian government, it would have to
hire locals as cashiers, cooks, managers, etc., as well as provide jobs for the country’s agricultural workforce. In fact,
McDonald’s outsources its products to several Indian companies throughout India. This provides evidence to the
Indian government that McDonald’s is not only customer friendly, but also employee friendly.

 Environmental Friendliness

In order to achieve a positive reputation, as well as follow local and national policies of a country,
McDonald’s tries to establish services that are environmentally friendly. India is an example where the
company provides financial contributions and sponsors several community related activities in order to
promote environmental protection. This is primarily seen within schools; thus indicating that the company
also supports local schools.
 Corporate Citizenship

In order to better its reputation, this multinational firm gives back to the local citizens in all countries it operates.
For example, the company provides several financial donations to local organizations. This is one way to encourage
consumers to eat at its restaurants, as it is an incentive that is used to spread the name.

 Pricing

As the value of currencies varies worldwide, McDonald’s is often forced to change its pricing strategy in
accordance to its target market. For instance, the value of a Big Mac varies worldwide In Switzerland, the Big Mac
is valued $.60 over the U.S. (price base of the product). However, in China, it is undervalued by $0.60 in
comparison to the price of the Big Mac in the U.S. It seems that the company tries to maintain a price range on all
its products based on the location, income distribution and it is for this purpose that the company opens up most
of its restaurants in major cities such as New Delhi, Shanghai, Beijing, and so on. Its primary goal is to initially
attract middle and upper class citizens, as they can afford McDonald’s prices. After this, they slowly target the
lower middle class citizens. In the United States, for example, the restaurant chain has appealed equally well to all
classes ranging from the poor to the upper class; however, its popularity continues to be among the lower, middle
and upper middle class.

ANALYSIS AND RECCOMENDATIONS

 McDonalds needs to keep a strong international culture to keep the homogeneity in its worldwide
franchisees. This is because it keeps almost all the decision about core competencies to the head office
and let the franchisees operate according to their local laws, rules regulations, culture, traditions to
attract customer, do business and keep the products according to the regional needs tastes and
demands.

 Most of the customers choose McDonald because of its value, high service standards, clean environment and
high quality standards. Some customers decide to leave and avoid McDonald’s food due to high level of fats
and calories unhealthy food, which may cause obesity. Due to its competitors who offer more variety and
taste, less of the consumers avoided it.

 McDonalds is usually visited by the small age group and its food is equally famous among men and women.
Since its major customers is the medium age group l recommend the company to develop more strategies such
as promotion and advertising which is specifically targeting and retaining this group of customers which
generates its highest revenue. Gender issue is uniformly popular among males and females so the company has
to target them equally with effective marketing strategies such as merchandising, promotion etc.
 Most customers visits to McDonald’s stores from mid day to mid night that is from 12:00 pm to 12:00
am so McDonalds stores has to maximize its sales to optimum level during this very crucial business
 time period which makes 88 % of the total sales. This target can be achieved by implementing and
enhancing higher quality standards, fast and efficient service, cleanliness and great value to all
consumers at all times in every store.
 Because of their high value and service standards most customers visited the stores due to
cleanliness, brand and quality factors. All of these factors should be maintained in order to retain
customers. McDonald’s corporation has to ensure the implementation and monitoring of highest value
and services standards offer to all customers at all times they visit McDonald’s restaurants. Also
speedy and efficient service must be ensured and also their affordable prices to be maintained. In my
opinion McDonalds has to introduce more variety of menus that offers customers good value of
money. The company has to take more precise measures for the maintenance and improvement of
customer care and service standards. The company has to ensure that all of its restaurants represent
nice and soothing atmosphere for the customers. The company should check and monitor the quality
standards of the stores.
 The company should take effective measures for the advertisements and promotions of its products.
The company should make sure that its offers and discount vouchers are accessible to masses in
order to increase the business. Proper advertising campaigns, promotions and merchandising should
be carried out regularly and monitor in order to boost brand loyalty among the customers.
 McDonalds Corporation should have to take measures in order to cut the level of fats in its meals
which can make customers obese and should have to conduct a research on variety and taste
required by its customers in order to improve the food quality.