Running head: MCDONALDS; STANDARDIZATION VS.

LOCAL ADAPTATION IN
GLOBAL MARKETS 1

McDonalds; Standardization vs. Local Adaptation in Global Markets

Name

Institution
MCDONALDS; STANDARDIZATION VS. LOCAL ADAPTATION IN GLOBAL
MARKETS 2

McDonald's; Standardization vs. Local Adaptation in Global Markets

Among the objectives Of McDonald’s is to establish a standardized group of products

that have a similar taste in all across the world. As much as standardization helps the company

realize notable cost savings, the success of McDonald's also lies in its ability to adapt to different

environments (Madar & Neacsu, 2010). Little wonder the famous franchise has embraced the

‘think global, act local’ concept (Ohmae, 1989). Given that regions differ in customs and laws as

well as consumer tastes and preferences, McDonald's has often chosen local adaptation over

standardization. For instance, in Israel, many of the company’s outlets serve Big Mac devoid of

cheese since the food laws there do not permit the mixing of dairy and meat products. A similar

case is seen in India where McDonald's serves Maharaja Mac, a mutton-based Big Mac, and

Vegetable McNuggets; since beef and pork are not eaten by a majority of the population

comprised of Hindus and Muslims. Tropical markets prompted McDonald's to offer guava juice

as part of its menu. In Turkey, the company offers chilled yogurt. In Germany, beer is sold. Cold

pasta and espresso are available in Italy (Membe & Loukakou, 2012). Despite the modifications

and recent additions, McDonald’s menu has generally remained uniform all over the world: the

sandwich or burger, fries and a drink (commonly Coca-Cola).

McDonald's pricing strategy has elements of local adaptation as opposed to

standardization. As far as price is concerned, the main aim of the company is to increase its

market share. Price is set based on the level of demand for its products. A Big Mac costs less in

Chicago, the United States compared to Lagos, Nigeria; since it is considered a luxury in the

latter and thus generates low demand. Retrospectively, McDonald's combines both elements of

standardization and local adaptation (Membe & Loukakou, 2012).

MCDONALDS; STANDARDIZATION VS. LOCAL ADAPTATION IN GLOBAL
MARKETS 3

I do not think McDonald's should sponsor the Milan Expo 2015. This would be in stark

contrast to the expo’s theme of ‘Feeding the Planet, Energy for Life’. For the planet to be fed,

economic and social sustainability should be considered. It is highly doubtful that a multinational

corporation that is a fast food enterprise is likely to support and provision of sufficient, safe and

healthy food for all, leave alone support nourishment of the planet.
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MARKETS 4

References

Madar, A., & Neacsu, A. N. (2010). The advantages of global standardization. Bulletin of the

Transilvania University of Brasov. Economic Sciences. Series V, 3, 61.

Membe, N. B., & Doriza Loukakou, M. (2012). Product standardization and adaptation in

International Marketing: A case of McDonald's.

Ohmae, K. (1989). Managing in a borderless world. Harvard Business Review, 67(3), 152-161.