Mary Michelle M.

Velasquez February 9, 2017

HRIM 112

McDonalds Corporation
Mcdonalds Corporation is one of the worlds largest fast food restaurant chains. The first
McDonalds was established in 1940 by Richard and Maurie Mcdonald in San Bernardino,
California. Appointed by the McDonald brothers, Ray Kroc became the first franchisee of the
restaurant (McDonalds, 2016). McDonalds Corporation (formerly McDonalds Sytem, Inc.) was
founded by Ray Kroc in 1955, the same year as the first franchised McDonalds restaurant was
opened (McDonalds, 2016). In 1961, ray Kroc bought the exclusive rights to the McDonalds
and since then, several franchise stores have opened domestically in the US, leading to global
expansion (McDonalds, 2016).
The success of McDonalds corporation is attributed to their effective management and
global expansion strategies through their theme think global, act local. McDonalds business
structure is geographically-based and can be subdivided into five divisions: United States,
Europe, Asia Pacific (with Middle East and Africa), Latin America and Canada (Han, 2008).
Despite of the cultural and national variations, McDonalds have been able to serve globally by
customized their marketing strategies the diverse consumer market (Mujtaba & Patel, 2007).
Before opening a store in a region, McDonalds Corporation conducts a load of research to
analyze, specifically, the taste preferences for the local culture in order to come up with new
products and services for the target consumers (Mujtaba & Patel, 2007). For example, in India,
McDonalds developed new burger products that had chicken or lamb meat, instead of the
conventional beef patties (Mujtaba & Patel, 2007).
Another business strategy of McDonalds is to pay considerable attention on the children
in its every area since children comprise their major consumer groups. Happy Land and
Happy Meals belong to the services that they provide for their children consumers. In addition,
it is believed by McDonalds that through this strategy they could establish a stable business
since children can encourage their respective families to eat at McDonalds (Han, 2008).
It is essential for McDonalds Corporation, as a global company, to analyze consumer
needs in order to maintain the market share. As presented above, McDonalds have been able
to adapt with the changing consumer interests that allowed the expansion of their business.

References:
Han, J. (2008). The Business Strategy of Mcdonalds. International Journal of Business and
Mangement, 3(11), 72-74.
McDonalds. (2016). Our History. Retrieved 9 February, 2017 from
https://www.mcdonalds.com/us/en-us/about-us/our-history.html.
Mujtaba, B. & Patel, B. (2007). McDonalds Success Strategy And Global Expansion Through
Customer And Brand Loyalty. Journal of Business Case Studies, 3(3).