KELOMPOK 4

McDonald's Success
Strategy And Global
Expansion Through
Customer And Brand
Loyalty
Diva Tertia Almira
Fauzian Rizqi Pramanda
Muhammad Bagas Dewantoro
Muhammad Madaniy Fadlulhaq
Nisrina Miranda A.
McDonald strategy in foreign markets
KNOW WHAT
CONSUMER
WANTS & NEEDS
McDonalds learns &
research about country
culture before they opened
in a country. The first step
is an understanding of
cultural differences and
developing appropriate
means of addressing these
differences.
e.g. McDonalds knows if in
India, people can't eat beef
or pork due to religious
belief.
Case from:
Mujtaba, Bahaudin G.. (2007). McDonald's Success Strategy And Global Expansion Through Customer And Brand Loyalty. Journal of Business Case Studies – Third Quarter. 3.
DOI: 10.19030/jbcs.v3i3.4857.
DESIGN A PRODUCT
DETERMINE TYPES HIRING DIVERSE AND
WHICH SATISFY
OF MATERIAL LOCAL EMPLOYEES
CONSUMERS
McDonalds designed new McDonalds gets their McDonald‟s prides itself in
product to comply & supply from local suppliers hiring locals, specifically
satisfy consumer in & joint with local management in order to
targeted country. entrepreneurs to comply gain acceptance into the
e.g. because of restrictions local standards & gets ease country by its citizens. On
in eating beef or pork, of business. top of that they also utilize
McDonalds in India, e.g. in Indonesia or other international assignments
instead of they sell original Moslem countries, they ,this can translate into a
BigMac, they designed only use Halal materials significant benefit for a
"Maharaja Mac" which from local supplier and company because
uses lamb meat to comply also Halal process to employees would be
with India's people comply Moslem's Halal- skilled in a variety of fields
religious belief. standards and be more valuable.
1
How McDonald's attract customer's loyalyty
QUALITIES HOW MCDONALD'S DO IT
McDonald's kitchen/production layout are designed for a quick service to customer.
Seamlessness They applied the assembly line principle to hamburger preparation and transformed
productivity and speed of service in restaurants

McDonald's always provide the same high standard and quality from all of their outlet
Trustworthiness around the world. This create a sense of trustworthiness to consumers due to their
commitment and standardization

McDonald's continuously innovate to answers market changes and demand. They

Resourcefulness have created many local menus and healthy options to satisfy customer's wants and
needs

Before entering new market McDonald's have done throughout market research to
Attentiveness understand the customer.

Case from: 2
Mujtaba, Bahaudin G.. (2007). McDonald's Success Strategy And Global Expansion Through Customer And Brand Loyalty. Journal of Business Case Studies – Third Quarter. 3.
DOI: 10.19030/jbcs.v3i3.4857.
 McDonald vs KFC
Why McDonald's Failed in Vietnam?
1. McDonald's Service wasn’t faster than local Vietnam cuisines (e.g. Pho)

2. The local competition was tough, can't compete with local street vendors

3. Vietnam war had created political hurdles with US

4. Too expensive, McD's used the western pricing strategy in the east

5. McDonald's menu didnt councide with the local culture of sharing food

KFC Success in Vietnam (based on customer surveys):

1. KFC serves delicious food, which satisfy consumer tastes

2. Their variety of menus

KFC MCDONALD 3. Have convenience place and family friendly, which comply with Vietnamese eating
137 OUTLETS 22 OUTLETS
culture (sharing food)

Source: 3
https://bettermarketing.pub/why-mcdonalds-failed-in-vietnam-35dc27edcaa
https://saigoneer.com/saigon-food-culture/19295-kfc-remains-vietnam-s-most-popular-fast-food-chain,-new-survey-shows
 Why McDonald's Failed in Iceland?
1. The excitement about McDonald's was gone, since there is more and more fast
food like Burger King.
2. Global economic crisis put many business out of business
3. Massive Change in exchange rate increased import costs which affect the
product since McDonald buy their ingredients from Germany.
4. Profit margins drop because McDonald rising its prices
5. Instead of borrowing money from affluent local lenders, McDonalds relying on
banks which gets bancrupt when Global economic crisis happened

How KFC survive in Iceland:

1. KFC use local product which make KFC is not affected by the increased of the
import cost in Iceland

4
Source:
https://bettermarketing.pub/why-mcdonalds-failed-in-iceland-769544c08898
 McDonald‟s success has been largely due to its
EMPHASIS ON LOCAL
envelopment of globalization, specifically
MANAGEMENT
through its adaptation of the local tastes and
preferences.

What can other POLITICALLY

SENSITIVE STRATEGY
One of the company‟s major concerns was to
develop ways to avoid political confrontation
organizations learn
from the best PRICING McDonald‟s is often forced to change its pricing
strategy in accordance to its target market

practices of EMPLOYMENT OPPORTUNITIES

McDonald‟s hiring local in their company

McDonald's? specially in managerial position

CORPORATE CITIZENSHIP McDonald‟s provides several financial

donations to local organizations.

McDonald‟s tries to establish services that are

ENVIRONMENTAL FRIENDLINESS
environmentally friendly

5

DESIGN OF GOODS
AND SERVICES.
McDonald‟s uses standardization
to manage their quality by offering
identical product worldwide, with
standardization product generally
cost less and faster to make
(ex : Mc Nugget, Mcflurry, Happy
meal)
LOCATION & LAYOUT
McDonald‟s applying process
layout that organizes the
transformation process into
departements that group related
processes
TOTAL QUALITY
MANAGEMENT
McDonald's have a uniform commitment to
quality in all areas of the organization that
promote a culture that meets customers’
perceptions of quality. It involves coordinating
efforts to improve customer satisfaction ,
increasing employee participation, and
facilitating an organizational culture of
continuous quality improvement
Operation
Management
Practice in
McDonald's
What specific management practices, concept or
theories have made McDonald's successful?
SCHEDULLING
McDonald‟s used program evaluation &
Review technique (PERT)
Which identifies all the major activities to
complete a project, arrange them in path,
determines the critical path, & estimate
MANAGING INVENTORY
the time required for each event. McDonald‟s using Work-in-process
inventory, a cooking hamburger
represent work-in-process inventory,
because it must go through several stage
before it can be sold to customer
 The Malcolm Baldrige National Quality Award Criteria
HOW DO MCDONALD'S FARE IN THIS CRITERIA?

LEADERSHIP 2 INFO & ANALYSIS 3 STRATEGIC PLANNING 4 HR DEV. & MANAGEMENT

1
McDonald's have an extesive
leadership programs to ensure
future leaders in their company.
Before entering new market,
McDonald's always use extensive
marketing research. McDonald’s
has increased efforts to capture
customer feedback using various
channels.
McDonald's strategic plan focuses
on a long-term outlook by using
using theirr competitive
advantages to further strengthen
our brand
McDonald's put forth diversity as
an important part of their HRM by
doing so they can understand their
customer better

5 PROCESS MANAGEMENT 6 BUSINESS RESULT 7 CUSTOMER FOCUS

McDonald's is the first one to
applied manufacturing assembly
line in food service industry. Ever
since they continue to improve by
using technology to improve
business process
McDonald's have been the
international market leader for fast
food, and has been ever since its
first launch. As of 2019 they have
38,695 world wide.
McDonald’s focus on what the
customer want. Customers love
our iconic food and our core
customer favorites are about 70%
of our sales thus they focus on
selling that.

Case from: 8
Mujtaba, Bahaudin G.. (2007). McDonald's Success Strategy And Global Expansion Through Customer And Brand Loyalty. Journal of Business Case Studies – Third Quarter. 3.
DOI: 10.19030/jbcs.v3i3.4857.
McDonald's Strategy during Pandemic
McDonald's have already implemented minimum interaction service
process with it's customer even before COVID:
Self ordering kiosk
Excellent Drive-Thru system
In-house delivery service (application / website) and with partners
Follow local regulations
Seating arrangement
Hand sanitizer inside outlets
Temperature check for employee and customers
Compulsory mask usage for employee and customers
Focus on sales in delivery, drive thru and take away
No self service sauce counter
Playground are closure
THANK YOU

KELOMPOK 4