The paper "Marketing across Culture - McDonald’ s" is a good example of a marketing case study. With over 1.5 million franchises in the United States and over 750,000 outside in more than 120 countries worldwide, McDonald’ s is one of the most successful international restaurant chains in the world (IBISWorld, 2015). The company has utilized effective global expansion and intercultural management strategies to expand into new markets and have managed to gain their share of the international fast food markets. This success, however, comes with a price as there are concerns about how the company products affect the cultures of the host countries.
There are various concerns about how McDonald's affects the cultures of the host countries especially in the Asian countries including China, India, Russia and Japan. This paper aims to analyze these contentious issues in specific countries and how they could affect the company’ s business and income in the long run. The paper will, first of all, give a brief introduction of the company’ s operations and structure, the strategies they use and how they are suitable to their business structure and the success of the company.
This will be followed by an introductory overview of the case study background. This will be followed by an analysis of the contentious issues which is the company’ s effects on the cultures of the host countries. A discussion of whether these contentious issues are justified will then follow leading to recommendations given on an intercultural management perspective. Introduction Company Overview McDonald’ s, incorporated in the 1950s is a fast-food company owning over 35,000 restaurants in more than 120 countries. It has over four million employees and serves close to 70 million customers in a day (IBISWorld, 2015).
In 2014, McDonald’ s had the largest market share in the fast-food restaurant industry in the United States with a 17% share (IBISWorld, 2015); this was 6% higher than its closest competitor Yum! Brands. The chain of fast-food restaurants offers similar consistent menus worldwide of the Big Mac, fries, chicken sandwiches, hamburgers, chicken nuggets, salads, the quarter pounder with cheese, wraps, soft drinks, desserts and other various beverages. However, in order to connect with the global markets, the company offers food menus that are relevant to the host countries as well.
China has the black and white burger while India has the Veg Pizza McPuff just to mention a few. McDonald’ s has a trademark of quality, service, cleanliness and values with which it delivers experiences to its customers. This is done through a strategy that focuses on customer experience through the five Ps which stand for Product, Place, People, Promotion and Price. They also have a three-legged stool approach where the three legs represent Operators/owners, suppliers and the employees who ensure the symbolic stool stands firm.
The company has incomparable global competencies and framework in restaurant operations, retailing, real estate, franchising and marketing (Cleveland M. & Laroche M., 2007). The company’ s expansion into other global markets has made it a symbol of globalization and the spread of Americanization. The reputation of the enterprise has made it a recurrent topic of public debates; these topics include health with a focus on obesity and other non-communicable diseases, social and consumer responsibility, corporate ethics and the point of this discussion which is culture or management across cultures to be specific.
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