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Unit 5 - International business Assignment 3 E Distinction
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Unit 5 - International Business Assignment 3 E Distinction grade. BTEC level 3 Business
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Fatima TurayID: 70230602
Unit 5 International business
This research will examine McDonald's in detail, with a particular emphasis on the
numerous tactics the corporation uses to run its business successfully across
borders. It will also include an examination of the variety of resources McDonald's
employs in order to guarantee the viability of global trade.
P8: Explain how products and processes have to be adapted for international
markets by a selected business.
McDonald’s typically operates its businesses through franchises; therefore, the
franchisor can transfer the company’s rights to an independent body, known as the
franchisee. Franchising offers several advantages, including reduced risks due to
shared liability and improved financial accessibility as securing funds is usually
easier for franchised businesses. Also, franchised businesses benefit from an
established operational framework.
Another approach that is sometimes used by McDonald’s is establishing subsidiary
businesses, where the company is owned by another company, such as a parent
company. Subsidiaries enjoy the freedom to develop their own management
practices and develop their distinct brand identity. Moreover, subsidiaries can attract
customers who might not be interested in the parent company, thereby expanding
the customer base. These forms of business ownership streamline McDonald’s
expansion into international markets which allows for the franchisor’s growth in a
broader, global market landscape.
McDonald's operates differently in each country since it needs to do a thorough
amount of research specific to each target market. Surveys are used in this research
to ascertain consumer preferences for goods and services, which inevitably differ
depending on the location. Additionally, since not all advertising forms are
appropriate everywhere, the business must modify its advertising strategies to fit the
unique cultural and regulatory characteristics of each nation. Cost is of the essence;
in different places, operational expenses are influenced by minimum wage rates and
import expenses. Particularly labour expenses may have a big influence on
profitability in some areas. The selection of dependable suppliers who can
continuously meet quality and demand requirements for particular menu items
catered to the preferences of each country is another crucial component of
McDonald's global operations.
When adjusting its products and processes, McDonald's takes into account the
different cultures and interests of its customers. For example, even though the
original Big Mac burger is a best-seller in the US and is well known worldwide, its
appeal might not be as great in places like Dubai. This diversity is the result of
cultural differences, including dietary restrictions that many customers follow, which
forced McDonald's to make adaptations. For example, McDonald's replaces beef
patties with 100% Halal beef in Dubai, where many people follow Halal dietary
norms, in order to comply with religious dietary requirements.
, Fatima Turay
ID: 70230602
This is an example of how McDonald’s needs to modify its offerings to satisfy the
demands of a large range of customers and appeal to global markets. Ignoring these
factors could hinder the sale of products in certain areas. In addition to considering
cultural differences, McDonald’s adapts to changing society trends, such as an
increasing focus on the health consciousness. McDonald’s, which is very well known
for its fast-food options, introduced healthier options such as fruit packets, vegan
burgers, and fish fillet burgers in response to customer requests that wanted
healthier options. This was a calculated move to draw in customers who are health
conscious, especially parents who are worried about what their kids are eating.
Furthermore, in response to the growing popularity of vegetarian and vegan diets,
McDonald’s increased the variety of foods it offered.
McDonald’s products vary in terms size, name, and availability depending on the
region. Since its founding in the US, McDonald’s has quickly grown across the globe.
By providing reasonably priced meal options, they mainly target young people and
children in the US, where they sell and average of 2.3 billion hamburgers yearly. In
order to satisfy a large range of appetites, US meal servings are often higher, leading
to super-sized drinks, fries, and burgers. On the other hand, business practices are
very different throughout Japan. Smaller portions are served at meals to align with
Japanese eating habits and customs and minimise food waste. Alongside this,
McDonald’s is known as “Makudonarudo” in Japan, a name that has been locally
tailored to increase recognition and appeal. This practice of changing brand names
in foreign markets promotes greater acceptance and engagement in customers.
Various nations and their product modifications:
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