McDonald’s: A Case Study in Glocalization

Alice Crawford, Georgia College & State University

Sarah A. Humphries, Ph.D., Georgia College & State University
Margaret M. Geddy, Ph.D., Georgia College & State University

ABSTRACT

The purpose of this research report was to assess McDonald’s globalization strategy. We examined
McDonald’s strategy across six dimensions: menu, promotion, trademarks, restaurants, employees, and
service. We also compared the company’s performance across these six dimensions in 10 different coun-
tries: Saudi Arabia, France, the United Kingdom, Greece, Brazil, Indonesia, India, China, Japan, and
New Zealand to measure McDonald’s success in capitalizing on globalization and localization. As dis-
cussed in this report, McDonald’s is a global brand through its worldwide standards and training oper-
ations, but the company is also local, with its franchising to local entrepreneurs, locally sourcing food,
and targeting specific local consumer market demands. McDonald’s is an excellent example of blending
global with local – an organization that has glocalized very successfully.

Introduction and Purpose McDonald’s: The American Standard

McDonald’s has been serving fast food
to America since 1955 and has grown into one of
the world’s leading fast food giants. Today,
McDonald’s is the leading global foodservice
retailer with 1.7 million employees and more
than 34,000 restaurants in 119 countries serving
nearly 69 million people each day (McDonald’s,
Annual Report, 2012).
Not too long ago people believed
McDonald’s would become “a lumbering cash
cow in a mature market” (Serwer & Wyatt,
1994). However, its success abroad has offset the
maturing market in America. In fact, 65% of
McDonald’s sales came from international reve-
nues (McDonald’s, Annual Report, 2012.) Its
worldwide operation concentrates its global
strategy, “Plan to Win,” and on customer experi-
ence, which includes people, products, place,
price, and promotion.
This paper will compare McDonald’s
marketing strategy to determine how well it cap-
italizes on both globalization and localization. It
will look at this strategy by examining ten differ-
ent countries: Saudi Arabia, France, the United
Kingdom, Greece, Brazil, Indonesia, India, Chi-
na, Japan, and New Zealand, across six different
dimensions: menu, promotion, trademarks, res-
taurants, employees, and service.
The McDonald’s American model focus-
es on fast and convenient service with high pur-
chasing 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” (McDonald’s, Compa-
ny Profile, 2012).
Menu
McDonald’s always offers its core menu
no matter where one goes on the globe. Howev-
er, the menu will also include a variety of items
catering to local preferences and unique cultural
tastes. McDonald’s ability to source farm fresh,
local foods contributes to its global success. In
Saudi Arabia’s western region, McDonald’s is
launching its breakfast menu, and it will include
its signature McMuffins and big breakfasts using
locally sourced eggs. Marketing Manager, Mo-
hamed Alireza, commented that McDonald’s
success was because of its ability to source farm
fresh ingredients to order (“McDonald’s brings
famous breakfast menu to KSA,” 2012). Beyond
locally sourced foods, McDonald’s is embracing
a trend toward localization. For example, an
item unique to McDonald’s Middle East menu is

The Journal of Global Business Issues – Volume 9 Issue 1 11

the McArabia launched in 2003; then, the Mo-
roccan McDonald’s franchises tweaked the sea-
soning and sauce for their market, and it is now
sold as the McArabia Tangine (German, 2010).
Another instance of localization was
McDonald’s introduction to France. “Since open-
ing its first French restaurant in Strasbourg in
1979, McDonald’s has sought to leverage the
strength of the global conglomerate while tailor-
ing its menu to the French palate (Fancourt,
Lewis, Majka, 2012). In 1995, McDonald’s 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, “McDonald’s started executing a multi-
domestic strategy and winning the hearts of
French consumers” (Fancourt et al, 2012).
Part of McDonald’s global success is its
ability to localize and adapt to changing con-
sumer demands. The lessons learned in France
paved the way for satisfying globally diverse
tastes. In Greece, McDonald’s offers the Greek
Mac, which is essentially a Big Mac drizzled with
Tzatziki sauce, and then wrapped in a pita. In
India, McDonald’s offers the Maharajah Mac,
which is a chicken Big Mac. In Brazil, McDon-
ald’s offers the cheddar McMelt and various ba-
nana desserts. In Indonesia, one can easily order
a bowl of buryam rice porridge with chicken and
fried crisps. Another Asian twist to the McDon-
ald’s menu is the kao fan burger in Hong Kong, a
fried chicken patty served in a bun made of rice
(“Golden arches abroad: International McDon-
ald’s menu offerings,” n.d.).
McDonald’s continues to expand its
market through research and the addition of
innovative products to its global menu. In 2009,
McDonald’s introduced Angus Beef on its New
Zealand menu, and now 100% of the Angus Beef
used is locally sourced from New Zealand farms
(“McDonald’s New Zealand sells two million ki-
los of Kiwi Angus,” n.d.). With the addition of
the New Zealand Angus Beef, McDonald’s added
new menu items such as the Kiwi Angus and the
Pepper Mayo Angus to the New Zealand menu.
Furthermore, following two years of product
development, McDonald’s is going to expand its
New Zealand menu to include 100% New Zea-
land lamb products. More importantly, Beef and
Lamb New Zealand, Ltd. endorses the new lamb
products. McDonald’s research showed that New
Zealanders like eating lamb but usually consid-
ered it too expensive to order out, so Patrick
12 The Journal of Global Business Issues – Volume 9 Issue 1
Wilson, New Zealand McDonald’s Managing
Director, is excited to introduce the new lamb
products at affordable prices (“McDonald’s ex-
pands menu with 100% NZ lamb products,”
2012).
McDonald’s seems willing to continue
expanding both meus and markets, adapting to
cultural tastes and pricing standards as well as
cultural standards of health and quality. In the
United Kingdom, McDonald’s offers a variety of
deli choices as a healthy alternative. McDonald’s
also uses 100% British and Irish beef burger pat-
ties, 100% British pork, and even 100% British
milk, all locally sourced foods from British and
Irish farms (McDonald’s UK Menu, 2012).
India McDonald’s also adapted to cul-
tural standards addressing religious issues. Al-
most 60 percent of the company’s market is
Hindus who do not eat beef and Muslims who do
not eat pork, so McDonald’s removed both meat
products from the menu. The chicken and the
fish remained on the menu, but soon, India
McDonald’s will launch its first all vegetarian
restaurant for the almost 40 percent of the mar-
ket who doesn’t eat meat at all (Finn, 2012).
McDonald’s global-local menu has significant
market value; its familiar American products are
available for any visiting tourists, but the unique
menu items cater to the various countries’ con-
sumer markets. McDonald’s menu, whether in
America or abroad, is always changing and ex-
panding (Finn, 2012). It is McDonald’s ability to
adapt, which contributes to its long-term growth
and success.
Marketing and Promotion
McDonald’s marketing strategy is to
brand globally and think locally (Vignali, 2001).
An aspect of its global branding is its choice of
partners. McDonald’s allies itself with major
universally recognized brands, such as Coca-
Cola and Disney. McDonald’s and Disney came
together in 1997, and this mutually beneficial
global alliance has them sharing everything from
films to food (Vignali, 2001).
Another way McDonald’s brands global-
ly and thinks locally is its sponsorship of a varie-
ty of global and national sporting events. Inter-
nationally, McDonald’s sponsors both the Olym-
pics and the World Cup. The global nature of the
events allows McDonald’s to produce an interna-
tional campaign and get their brand out to an
estimated 2 million viewers. Brad Bell, the sen-
ior vice-president of McDonald’s USA, com-
mented that, “The Olympic Games has rein-
forced our reputation as a truly global brand.”
McDonald’s association with the Olympics began
with the 1976 Summer Games in Montreal. The
association between the company and the Olym-
pics was demonstrated in 1968 when U.S. figure
skater Janet Lynn stated in an interview that she
missed the taste of McDonald’s. Soon after her
statement, McDonald’s 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 McDonald’s brand
as Americana in France (Lefton, 2005).
McDonald’s doesn’t just support and promote
the Olympics. McDonald’s also promotes its food
by using English and French footballers (Vignali,
2001). Another sport the company supports is
the National Basketball Association, and it en-
couraged the NBA to look outside U.S. borders
and even began hosting the McDonald’s Open
and McDonald’s 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 didn’t have McDonald’s support in-
ternationally from a marketing and financial
perspective, our league was sufficiently fragile
that we likely would not have undertaken it our-
selves” (Lefton, 2005). McDonald’s has a long
tradition of sponsoring both local and global
sports events; currently, the company’s 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).
McDonald’s also brands globally
through global and local community involve-
ment. In 2000, the company partnered with
Walt Disney and UNESCO for the Millennium
Dreamers, a global children’s recognition pro-
gram 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 (“McDonald’s and Disney name Millennium
Dreamers,” 2000). Another area of McDonald’s
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 hospi-
tal. McDonald’s community service mission is to
“seek solutions for the problems facing families
The Journal of Global Business Issues – Volume 9 Issue 1
and children today,” according to Ken Barun, the
CEO of Ronald McDonald House Charities
(Vignali, 2001). Currently, there are over 300
Ronald McDonald Houses in more than 56
countries addressing this global problem on a
local-specific scale.
McDonald’s marketing strategies vary by
country and cultural values. McDonald’s France
introduced advertising campaigns to educate the
French public about just how French it had be-
come. Responding to French cultural values,
McDonald’s strengthened its ties to agribusi-
ness, advertising widely that 95% of the compa-
ny’s ingredients came from France and the rest
from the European Union (Fancourt et al.,
2012). Similarly, McDonald’s India launched an
advertising campaign to dispel consumer con-
cerns and push forward its global image of “fam-
ily values and culture,” as well as an image of
“comfortable and easy.” McDonald’s India cam-
paign, like France, was an effort to familiarize
and educate Indian consumers about McDon-
ald’s (Kulkarni, Lassar, Sridhar, Venkitachalan,
2009).
McDonald’s globally markets itself as a
neighborhood restaurant; locally, this marketing
strategy can translate into different campaigns
targeting the specific cultural values of consum-
ers. McDonald’s Hong Kong has made great ef-
forts to present itself as a champion of environ-
mental awareness and public welfare. In Indo-
nesia, McDonald’s promotes its menu as certi-
fied halal by Islam religious leaders, meaning it
is religiously clean and permissible to eat. For
many years, McDonald’s Indonesia had the larg-
est following of Muslims because of the publicity
about the halal sign on its food (Liao, Widowati,
Hu, 2011).
McDonald’s targets younger generations
of consumers in East Asia, investing heavily in
television advertising aimed specifically at chil-
dren. In Indonesia, the younger generation grav-
itates to McDonald restaurants to taste western
food and because it is a convenient, clean and
cool place to be. However, McDonald’s China
does not invest in television commercials. Chi-
nese commercials, unlike Western commercials,
appear only during the break between programs.
Advertising has little chance to make an impact
on consumers because after watching a program,
audiences usually switch channels, thereby miss-
ing the commercials. For this reason, McDon-
ald’s uses Chinese newspapers and popular
13
magazines as a better way to present McDon-
ald’s public image (Vignali, 2001).
Trademarks
McDonald’s has adapted their trade-
mark logo to reflect consumer demand. McDon-
ald’s golden arches that look like an “M” on a
field of red are a globally recognized trade logo.
But internationally, McDonald’s 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
McDonald’s 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 de-
manded more environmentally sustainable
products and companies. In Great Britain, faced
with falling sales, McDonald’s 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).
McDonald’s 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 company’s trademark bright red and yellow.
In McDonald’s China-Beijing, the company
paired Ronald McDonald with “Aunt McDon-
alds,” female companions whose job is to be-
friend and entertain children while they’re 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 adapta-
tion was a gender-bender twist meant to appeal
to the popular culture in Japan involving cos-
tume-play as a way to bring adults back into
McDonald’s (Brook, 2005).
Restaurants
McDonald’s screens its potential fran-
chise 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, fran-
chise owners pay $45,000 to sign a 20-year con-
tract that gives McDonald’s a royalty of 4% sales,
plus 8.5% or more sales for rent. In addition,
franchise owners pay 4% of sales for advertising.
Many McDonald’s operators join co-ops and ser-
vice groups, which let them take home about
14 The Journal of Global Business Issues – Volume 9 Issue 1
$200,000 a year per store (Sewer & Wyatt,
1994).
At the end of 2010, nearly 59% of
McDonald’s were conventional franchises, 21%
were licensed to foreign affiliates or had devel-
opmental licenses, and 20% were actually com-
pany-operated (McDonald’s, Investors, 2012). In
the European markets, company-owned subsidi-
aries run company-owned stores and run fran-
chise licensing. McDonald’s structures its Euro-
pean operations this way because these markets
are similar to U.S. markets, so the company can
run them basically the same way as they do in
the U.S., making adjustments as needed. For
instance, McDonald’s opened stores in Holland’s
suburbs, only to find the Dutch have different
patterns of eating. So the company moved its
stores downtown (Serwer & Wyatt, 1994). How-
ever, in Asian markets, the company structures
its operations differently, favoring joint ven-
tures, usually fifty-fifty arrangements, which
allow the company to tap. Here, the company
favors joint ventures, usually fifty-fifty arrange-
ments that allow the company to use the part-
ner’s contacts and local expertise. McDonald’s
has such an arrangement with eccentric billion-
aire Den Fujita operating 1,000 plus stores in
Japan (Serwer & Wyatt, 1994). In India,
McDonald’s also set up a fifty-fifty venture be-
tween McDonald’s and regional Indian partners,
such as Hardcastle Restaurants Private Limited
in western India (Kulkarni et al., 2009). In Ara-
bic and African markets, McDonald’s uses a de-
velopmental licensee model, in which the restau-
rants are 100% owned and operated by local
business owners (Salama, 2013).
In France, all McDonald’s restaurants,
more than 1200, are locally owned franchises,
and these restaurants differ drastically from the
American model. In order to appeal to French
customers, McDonald’s spent approximately $5
billion renovating restaurant interiors in France
to create a welcoming environment where cus-
tomers linger, a departure from the American
model where the strategy is to minimize custom-
er visiting and maximize turnover. The interiors
are sleek, with modern tables and plush com-
fortable chairs. The exteriors are also different as
French signage is more subdued and almost in-
visible to people walking by until they are direct-
ly in from of the restaurant. This near invisibility
contrasts with the American model, whose light-
ed golden arches logo is highly visible from a
distance. French franchise owners opt for taste-
ful, diverse, and regionally appropriate restau-
rant designs in order to succeed (Fancourt et al.,
2012).
Employees
A distinguishing feature of McDonald’s
is its global practice of comprehensively training
its employees, franchisees, and suppliers in food
safety, hygiene, and food preparation proce-
dures. And McDonald’s goes even further, by
offering its managers the chance to train at
Hamburger University, located at company
headquarters in Oak Brook, Illinois. Many of its
graduates, who are participants from at least 22
countries besides the United States, liken this
two-week intensive training program to “a crash
executive M.B.A. program” (Serwer & Wyatt,
1994). Besides Hamburger University, McDon-
ald’s also has additional training centers in Mu-
nich, Tokyo, Sydney, London, and China
(Vignali, 2001).
When it comes to hiring employees,
McDonald’s emphasizes to all its managers the
importance of hiring employee applicants with
customer-focused attitudes, attitudes that are
even more important than technical ability. The
company also stresses this customer focus in its
recruiting advertisements and preliminary
screenings (Vignali, 2001). McDonald’s France
goes so far as supporting its employees through
programs to give them nationally recognized
diplomas and certifications in order to meet
French cuisine expectations. In turn, employees
in France regularly protect McDonald’s brand on
Internet forums and blogs (Fancourt et al.,
2012). In Japan, McDonald’s provided employ-
ees with 25 chapter manuals that detail every-
thing from methods of preparation and quality
control to how to deal with customers. These
quickly train the part-time workers, who make
up 95% of McDonald’s Japanese employees, in
the matters of taste, quality, and service that will
satisfy customers. What’s more, these manuals
have made McDonald’s Japan a leader in super-
visory management and training (The McDon-
ald’s Effect, 2001).
The company’s management develop-
ment program is a direct route to management
with intensive training, and all managers follow
the management development program. The
junior management program and the two-year
restaurant-based program are available globally
and adapted locally for applicant qualifications
(Vignali, 2001).
The Journal of Global Business Issues – Volume 9 Issue 1
Service
McDonald’s does not just sell burgers
and fries; McDonald’s sells a service to consum-
ers across the globe. Globally, McDonald’s ex-
ports a service; locally, McDonald’s adapts that
service to different cultural communities (Sewer
& Wyatt, 1994). In France, McDonald’s restau-
rant ambience invites customers to linger and
enjoy their food, and these restaurants reflect
the French culture’s emphasis on enjoying food
(Fancourt et al., 2012). McDonald’s in Beijing,
China, in contrast to the U.S. practice of substi-
tuting technology for human workers, relies
heavily on building personal relationships be-
tween its employees and customers. The Chinese
McDonald’s have several public relations staff in
each outlet to answer consumers’ questions. Al-
so, each restaurant assigns a number of female
receptionists to take care of children and talk
with parents. This kind of personal customer
service isn’t necessary in the United Kingdom or
the United States where consumers usually pre-
fer 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 ser-
vice, 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 peo-
ple, and courting couples might spend hours
over a cup of tea, thus turning McDonald’s into
an inexpensive teashop. McDonald’s Hong Kong
has added wedding packages to the menu. This
may seem a strange niche for McDonald’s, but if
you consider that countless people will have met
and even had dates in McDonald’s restaurants,
it’s not so unusual for McDonald’s to provide
this service. Three locations in Hong Kong are
now equipped to stage affordable, intimate, and
fun marital festivities for couples. “The McWed-
ding 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 bal-
loons” (Brenhouse, 2011). In Eastern Asia,
McDonald's has “become a ‘local’ institution for
an entire generation of affluent consumers”
(Collins, 2000).
McDonald’s also adapts its restaurants
and practices to cultural customs. In Saudi Ara-
bia, McDonald’s restaurants have separate din-
ing-areas for men and women. And during East-
er, Greek McDonald’s restaurants serve spinach
15
pies, since many people do not eat meat prod-
ucts during this holiday (Markatos, 2006). In
Indonesia, McDonald’s restaurants offer a post
sunset meal as a special to Muslims fasting dur-
ing the month of Ramadan (Liao, et al., 2011).
McDonald’s Brazil is collaborating with AOL
Brazil to provide Internet service in restaurants
so that customers can surf the web while munch-
ing on their food. To highlight the deal, “AOL
Brazil will develop special content for the McIn-
ternet Portal.” McDonald’s is also offering wire-
less enabled laptop computer users one hour of
free Internet access with the purchase of an Ex-
tra Value Meal at participating restaurants
(Lohmeyer, 2003). McDonald’s adapts the food
served, restaurant design, and customer service
across different countries and cultures in order
to deliver the McDonald’s experience.
Mcdonald”S Glocalization Strategy
So how did McDonald’s, the American
fast food giant, become a global success story?
The answer, McDonald’s adopted strategy of
glocalization. This portmanteau of globalization
and localization coined by Japanese economists
in the 1980s in the Harvard Business Review
describes a product or service developed and
distributed globally, but fashioned to accommo-
date the user or consumer in a local market.
McDonald’s success comes from mixing global
and local marketing strategies. First, its fran-
chise business model allows all of its franchise-
members, management, and stakeholders to
share the risks and reward from the discovery
and exploitation of new business opportunities.
Through franchising, McDonald’s takes ad-
vantage of local connections and expertise, while
training potential franchisees and managers to
uphold global standards. Second, McDonald’s
understanding of demographics, economic via-
bility, and local factors around the world allow
the company to innovate and adapt fresh prod-
ucts for a diverse consumer market. Third,
McDonald’s standardizes its training for fran-
chisers and employees while also formatting it
for different cultures. These three strategies al-
low McDonald’s to deliver a global standard of
taste, quality, and service, while also adapting to
cultural specific values and preferences. McDon-
ald’s global system connects franchises with lo-
cal suppliers in order to deliver consistent, local-
ly relevant restaurant experiences to customers.
McDonald’s strategy allows it to innovate and
adapt to different consumer needs.
16 The Journal of Global Business Issues – Volume 9 Issue 1
Conclusions
So what is the secret of McDonald’s
global success? McDonald’s realized early that it
wasn’t just selling burgers, it was selling the
McDonald’s experience through glocalization, its
ability to brand globally, but think locally.
McDonald’s is a global brand through its world-
wide 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. McDonald’s Plan to
Win is working as it provides a global frame-
work, 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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The Journal of Global Business Issues – Volume 9 Issue 1 17

 Alice Crawford earned her B.A. in Accounting from Georgia College & State University. She is continuing her edu-
cation with a Masters in Accountancy from GCSU. She plans to pursue a career in teaching and research with a fo-
cus 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 Uni-
versity 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 Assis-
tant Professor of English at Georgia Southern University.

18 The Journal of Global Business Issues – Volume 9 Issue 1

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