Professional Documents
Culture Documents
The McDonalds American model focuses on fast and convenient service with high purchasing turnover. Its recognizable bright red and
yellow colors with the iconic golden arches
reaching into the sky offer Americans a piece of
the familiar in a foreign country. Our goal is to
become customers' favorite place and way to eat
and drink by serving core favorites such as our
World Famous Fries, Big Mac, Quarter Pounder
and Chicken McNuggets (McDonalds, Company Profile, 2012).
Menu
McDonalds always offers its core menu
no matter where one goes on the globe. However, the menu will also include a variety of items
catering to local preferences and unique cultural
tastes. McDonalds ability to source farm fresh,
local foods contributes to its global success. In
Saudi Arabias western region, McDonalds is
launching its breakfast menu, and it will include
its signature McMuffins and big breakfasts using
locally sourced eggs. Marketing Manager, Mohamed Alireza, commented that McDonalds
success was because of its ability to source farm
fresh ingredients to order (McDonalds brings
famous breakfast menu to KSA, 2012). Beyond
locally sourced foods, McDonalds is embracing
a trend toward localization. For example, an
item unique to McDonalds Middle East menu is
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the McArabia launched in 2003; then, the Moroccan McDonalds franchises tweaked the seasoning and sauce for their market, and it is now
sold as the McArabia Tangine (German, 2010).
Another instance of localization was
McDonalds introduction to France. Since opening its first French restaurant in Strasbourg in
1979, McDonalds has sought to leverage the
strength of the global conglomerate while tailoring its menu to the French palate (Fancourt,
Lewis, Majka, 2012). In 1995, McDonalds began
using locally sourced French cheeses such as
chevre, cantal, and blue. They even exchanged
traditional mustard for a whole-grain French
mustard sauce. By being sensitive to the French
palate, McDonalds started executing a multidomestic strategy and winning the hearts of
French consumers (Fancourt et al, 2012).
Part of McDonalds global success is its
ability to localize and adapt to changing consumer demands. The lessons learned in France
paved the way for satisfying globally diverse
tastes. In Greece, McDonalds offers the Greek
Mac, which is essentially a Big Mac drizzled with
Tzatziki sauce, and then wrapped in a pita. In
India, McDonalds offers the Maharajah Mac,
which is a chicken Big Mac. In Brazil, McDonalds offers the cheddar McMelt and various banana desserts. In Indonesia, one can easily order
a bowl of buryam rice porridge with chicken and
fried crisps. Another Asian twist to the McDonalds menu is the kao fan burger in Hong Kong, a
fried chicken patty served in a bun made of rice
(Golden arches abroad: International McDonalds menu offerings, n.d.).
ior vice-president of McDonalds USA, commented that, The Olympic Games has reinforced our reputation as a truly global brand.
McDonalds association with the Olympics began
with the 1976 Summer Games in Montreal. The
association between the company and the Olympics was demonstrated in 1968 when U.S. figure
skater Janet Lynn stated in an interview that she
missed the taste of McDonalds. Soon after her
statement, McDonalds shipped a few hundred
hamburgers to France for both the athletes and
the ABC announcers. This shipment prompted a
lot of talk and cemented the McDonalds brand
as Americana in France (Lefton, 2005).
McDonalds doesnt just support and promote
the Olympics. McDonalds also promotes its food
by using English and French footballers (Vignali,
2001). Another sport the company supports is
the National Basketball Association, and it encouraged the NBA to look outside U.S. borders
and even began hosting the McDonalds Open
and McDonalds Championship Games in 1987,
where the Milwaukee Bucks bested Italian and
Russian Teams. The NBA has also attended
games in China. NBA Commissioner David Stern
said, If we didnt have McDonalds support internationally from a marketing and financial
perspective, our league was sufficiently fragile
that we likely would not have undertaken it ourselves (Lefton, 2005). McDonalds has a long
tradition of sponsoring both local and global
sports events; currently, the companys largest
sponsorships are the Olympics, the FIFA World
Cup, Association of Volleyball Professionals, and
the NBA. But it also capitalizes on hot regional
sports markets through individual franchises
(Lefton, 2005).
McDonalds also brands globally
through global and local community involvement. In 2000, the company partnered with
Walt Disney and UNESCO for the Millennium
Dreamers, a global childrens recognition program that named 2,000 ambassadors with
outstanding community involvement in over 90
countries. They came together at Disney World
for one of the largest global youth summits ever
held (McDonalds and Disney name Millennium
Dreamers, 2000). Another area of McDonalds
global community involvement is its support of
The Ronald McDonald House Charities. Started
in 1974, these Charities provide free home away
from home accommodations for the families
while their seriously ill children are in the hospital. McDonalds community service mission is to
seek solutions for the problems facing families
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Trademarks
McDonalds has adapted their trademark logo to reflect consumer demand. McDonalds golden arches that look like an M on a
field of red are a globally recognized trade logo.
But internationally, McDonalds franchises have
differentiated this logo. In France, in contrast to
the standard golden and red colors, the golden
arches are on a field of forest green, part of
McDonalds push to publicize the greening of
its image in France. This change was initially
controversial with the US head office; however,
several other European subsidiaries adopted the
new greening logo (Fancourt et al., 2012). In
fact, European consumers have increasingly demanded more environmentally sustainable
products and companies. In Great Britain, faced
with falling sales, McDonalds replaced its logo
altogether with a question mark in an effort to
get consumers to reconsider its image as a fast
food retailer (Brook, 2005).
McDonalds also adapted their standard
male mascot to fit cultural preferences. In the
United States, Ronald McDonald is a clown who
entertains children and whose appearance uses
the companys trademark bright red and yellow.
In McDonalds China-Beijing, the company
paired Ronald McDonald with Aunt McDonalds, female companions whose job is to befriend and entertain children while theyre in the
restaurant (Vignali, 2001). In Japan, Ronald
McDonald transformed into a sexy woman with
long, straight red hair wearing a yellow dress
(and in some commercials a bikini). This adaptation was a gender-bender twist meant to appeal
to the popular culture in Japan involving costume-play as a way to bring adults back into
McDonalds (Brook, 2005).
Restaurants
McDonalds screens its potential franchise owners using a two-year screening process.
It demands all potential franchisees first work in
a restaurant and go through training before it
will consider them for a franchise. Then, franchise owners pay $45,000 to sign a 20-year contract that gives McDonalds a royalty of 4% sales,
plus 8.5% or more sales for rent. In addition,
franchise owners pay 4% of sales for advertising.
Many McDonalds operators join co-ops and service groups, which let them take home about
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Service
McDonalds does not just sell burgers
and fries; McDonalds sells a service to consumers across the globe. Globally, McDonalds exports a service; locally, McDonalds adapts that
service to different cultural communities (Sewer
& Wyatt, 1994). In France, McDonalds restaurant ambience invites customers to linger and
enjoy their food, and these restaurants reflect
the French cultures emphasis on enjoying food
(Fancourt et al., 2012). McDonalds in Beijing,
China, in contrast to the U.S. practice of substituting technology for human workers, relies
heavily on building personal relationships between its employees and customers. The Chinese
McDonalds have several public relations staff in
each outlet to answer consumers questions. Also, each restaurant assigns a number of female
receptionists to take care of children and talk
with parents. This kind of personal customer
service isnt necessary in the United Kingdom or
the United States where consumers usually prefer to eat their meal and leave promptly (Vignali,
2001).
Similarly, consumers in Korea, Japan,
and Taiwan have a distinctly different idea about
fast food. While fast food may mean fast service, it does not translate into fast consumption
as it has in the UK or the U.S. Customers in East
Asia tend to linger, where students, elderly people, and courting couples might spend hours
over a cup of tea, thus turning McDonalds into
an inexpensive teashop. McDonalds Hong Kong
has added wedding packages to the menu. This
may seem a strange niche for McDonalds, but if
you consider that countless people will have met
and even had dates in McDonalds restaurants,
its not so unusual for McDonalds to provide
this service. Three locations in Hong Kong are
now equipped to stage affordable, intimate, and
fun marital festivities for couples. The McWedding is casual, stress-free, and inexpensive: the
basic Warm and Sweet Wedding Package for 50
guests goes for under $1,300. For another $165,
the bride can rent a gown of pearly white balloons (Brenhouse, 2011). In Eastern Asia,
McDonald's has become a local institution for
an entire generation of affluent consumers
(Collins, 2000).
McDonalds also adapts its restaurants
and practices to cultural customs. In Saudi Arabia, McDonalds restaurants have separate dining-areas for men and women. And during Easter, Greek McDonalds restaurants serve spinach
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pies, since many people do not eat meat products during this holiday (Markatos, 2006). In
Indonesia, McDonalds restaurants offer a post
sunset meal as a special to Muslims fasting during the month of Ramadan (Liao, et al., 2011).
McDonalds Brazil is collaborating with AOL
Brazil to provide Internet service in restaurants
so that customers can surf the web while munching on their food. To highlight the deal, AOL
Brazil will develop special content for the McInternet Portal. McDonalds is also offering wireless enabled laptop computer users one hour of
free Internet access with the purchase of an Extra Value Meal at participating restaurants
(Lohmeyer, 2003). McDonalds adapts the food
served, restaurant design, and customer service
across different countries and cultures in order
to deliver the McDonalds experience.
Conclusions
So what is the secret of McDonalds
global success? McDonalds realized early that it
wasnt just selling burgers, it was selling the
McDonalds experience through glocalization, its
ability to brand globally, but think locally.
McDonalds is a global brand through its worldwide standards and training operations, through
its global brand recognition and sponsorship of
world sporting events. But the company is also
local, with its franchising to local entrepreneurs,
locally sourcing food, and targeting specific local
consumer market demands. McDonalds Plan to
Win is working as it provides a global framework, which allows for local adaptation and a
store focusing on the five key elements of the
plan - People, Products, Place, Price, Promotion.
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http://www.aboutmcdonalds.com/mcd/investor
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McDonalds and Disney name Millennium Dreamers.
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McDonalds New Zealand sells two million kilos of
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Alice Crawford earned her B.A. in Accounting from Georgia College & State University. She is continuing her education with a Masters in Accountancy from GCSU. She plans to pursue a career in teaching and research with a focus on international business law and taxation.
Sally Humphries (PhD, Social Psychology, The University of Georgia) has worked in the private sector for a global
Information Technology and Management consulting firm in addition to 26+ years of academic instruction at the University level. In the last several years, her interests have focused on the pervasive effects of culture on international
business. Her current research interests include examining the effects of culture on corporate governance board
characteristics.
Margaret Meg Geddy (Ph.D., American Studies from Saint Louis University) teaches Business Communication for
the J. Whitney Bunting College of Business at Georgia College & State University. Before starting at GCSU, she was
a Business and Sales Content Editor for WMe3, Inc., a Sales & Marketing Consultancy, and Ciber, Inc., a global IT
Consulting firm. Meg has also been an Adjunct Public Speaking Instructor at Mercer University and a tenured Assistant Professor of English at Georgia Southern University.
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