Gorzon, Ma. Lyslie R.

GLOBAL MARKETING
BSM-2A

DISCUSSION QOUESTIONS
1. Identify the key elements in McDonald’s global marketing strategy. In particular, how does McDonald’s
approach the issue of standardization? Does McDonald’s think global and act local? Does it also think local
and act global?

McDonald's strategy of providing menu items that are available across its thousands of outlets worldwide
and at the same time featuring items that cater to the local tastes is the classic example of the business
strategy of “Think Global, Act Local”.

McDonald’s has a couple of key elements in its global marketing strategy. One of these elements is fast
food. For decades, McDonald’s has been a leader in the fast food industry, currently having served over
one billion people. McDonald’s, being one of the biggest fast food chains in the world, has locations in as
many cities and towns as possible. Since the world has become very fast-paced, everybody is looking for a
quick meal or a quick stop to get a drink. McDonald’s gives that ability to people, and not only is it fast, but
it is also somewhat good cheap food.

Another key element in McDonald’s marketing strategy is its cultural awareness. There are thousands of
Mcdonald's all over the world, which means there are stores in countries that follow different religions and
live in different cultures. These cultures and religions may be against the eating of certain meat, meaning
McDonald’s either has to cater to these needs or leave that specific area. McDonald’s has no issue with
catering the certain culture’s needs, making them even more desirable.

The last key element is that McDonald’s offers their food for very low prices compared to other restaurants,
which attracts people to go to McDonald’s instead of a competing fast food chain. The key to McDonald’s
continual success is its ability to globalize. Globalization of McDonald’s is very easy because of its brand.
The golden arches are a logo that symbolizes the McDonald’s brand of quality fast food that doesn’t break
your wallet. McDonald’s is also an “American” place to eat, and a lot of people in the world want to be
American, therefore the demand for McDonald’s in the world is high. This is what keeps the success of
McDonald’s. This is also an important factor for how McDonald’s acts and thinks both locally and globally.
McDonald’s main priority is having as many operational stores in the U.S. as possible. But, they also want
to cater to other countries, therefore becoming a global powerhouse in the fast food industry.
2. Do you think government officials in developing countries such as Russia, China, and India welcome
McDonald’s? Why or why not?
Personally, McDonald’s would be supported in countries like India, but not as much as Russia and China. India would
be a good location for McDonald’s because of their cheap prices and cultural adaptations. As well as boosting the
economy and hiring only local workers to improve the quality of life in certain parts of the country. In countries like
Russia and China, McDonald’s might not be appreciated because of its potential involvement in tax evasion. Another
reason is that sometimes contracts between local suppliers may be hostile or negative, therefore creating a
nonprofitable brick-and-mortar store. I would say that consumers would welcome McDonald’s in all countries though
because of its cheap prices and accessibility.
 3. The plan to win initiative is built around five factors that drive McDonald’s business: people, products, place,
price and promotion. As a Student of marketing, what can you say about these factors?
Product - One burger, but so many variations. Mcdonald's, to answer to its clients’ needs all around the globe,
worked on customized meals for each of its regions. Depending on religious beliefs, habits, tastes, and other, etc.,
customers expect different offers.
Place - In the U.S., 50% of the outlets are situated within a distance of 3 minutes. May be easier to find a McDonald’s
restaurant than a drugstore. They place their brand everywhere and are well located to reach as much as people as
possible (near a school, train station, etc.)
Price - Depending on the purchasing power, meal prices are fixed. McDonald's offers a price list: in India, a complete
meal is about $2, and in France $10. This pricing strategy, locally adapted allows the brand to be the fast-food chain
world leader.
Promotion - Advertising, through different channels, makes an impact. They have a global communication strategy,
but the values shared are the same. “I’m lovin’ it” is world-renowned. “No matter what product they sell, they are still
recognized as the same brand, and that’s why people lovin’ it.”
4. Is it realistic to expect that McDonald’s – or any well-known company – can expand globally without
occasionally making mistakes or generating controversy? Why do antiglobalization protesters around the
world frequently target McDonald’s?

It is not realistic to expand globally without occasionally making mistakes or generating controversy.
McDonald’s is one of the best fast food chain restaurants to be in the business with its almost perfect
marketing mix. But, it still like every other company, cannot expect to expand globally without at least one
issue that gets in the way. Protestors target McDonald’s for reasons such as:
 It is a foreign entity moving into its home country. It will take time to adjust.
 The changing of their menu and suppliers when entering these countries.
 By changing the suppliers, they also have to change the way they cook the food, which may cause
consumers to be unhappy.
 It is looked at as “unhealthy”, and that may be unattractive to certain customers as well.