Callaway Golf Industry

Memo

Re: McDonald’s Case Study

Overview

McDonald’s is a U.S based company with a mission to globally standardize its overall product and service. The company built its popular reputation by ensuring aspects of cleanliness, immediate service and familiarity. McDonald’s main goal is to be the leader in the world’s best quick service restaurant experience. As the world expands and changes, modern day lifestyles are becoming more and more in favor of the idea of a fast food service.

Strategy and Standardization

McDonald’s is apart of the global market holding restaurants in many different countries all over the world. They are widening their horizons to incorporate more of the world’s diverse population. By occupying 30,000 restaurants in over 119 countries, McDonald’s is attacking the mass marketing aspect of the global business mix. McDonald’s marketing strategy which includes some global elements touches upon aspects of each “P” in the marketing mix. Promotion for example in Japan uses television commercials showing families eating McDonald’s food while spending time together. Place is shown when India has a high demand for fast food restaurants and management identifies strategic locations in areas with high pedestrian traffic. Prices in many of these countries are also much lower then we are used to seeing. Product is affected according to the region that the restaurant is located. In the Hindu religion it is prohibited to eat meat therefore, McDonald’s came up with a lamb-based product. McDonald’s international is organized into four different geographic regions. Europe, Asia/Pacific, Middle East, and Africa, Latin America and Canada. In having so many different locations and different cultures to facilitate, McDonald’s is constantly extending a few aspects of its overall appeal however, still staying true to its companies standards. By placing McDonald’s restaurants in foreign areas, the company must comply with the local interests and sometimes religious and social customs of that area. It is stated on the McDonald’s website that, “We’re not just a hamburger company serving people; we’re a people company serving hamburgers.” The issue of global standardization fits in such a way that when a McDonald’s restaurant enters a new market, the company is not getting rid of all that is normal to a U.S based restaurant it is simply extending its products to conform to that markets standards. For example as stated in the case, McDonald’s frequently adapts its food to suit local tastes. Other offerings are made available to the menu such as kiwi burgers in New Zealand, banana fruit pies in Latin America and fried chicken in Asia. In many cases they change their food processing methods to comply with local religious customs. Overall McDonald’s is still the same standardized company it is just stretching its arms a little to act in accordance with local supply and demands.

Greetings with open arms

McDonald’s believes that the markets overseas are its driving force to becoming an international giant. By expanding its restaurants to India, China and the Pacific market growth with take off. The demand for McDonald’s in these areas seems to be growing just as fast as a new one opening on the next corner. Consumers seem to be pleased with the development of these restaurants