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LEVEL 3 BTEC BUSINESS
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Corsework containing Btec level 3 units 8,21,5 and 1
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P8: Explain how products and processes have to be adapted for international markets by a selectedbusiness.
1McDonald’s is an American fast-food company which was founded on the 15th of April 1955 as a
restaurant operated by Richard and Maurice McDonald. McDonalds has over 238 thousand locations in over
119 markets. Their main business functions consist of 3Operations, Development, Finance, Marketing and
Human Resources (HR). Mcdonalds legal structure is a Public Limited Company meaning that they are owned
by shareholders, members of the public and investors.
Product Adaption is the process of modifying an existing product, so it is suitable for different customers or
markets. Glocalization is a combination of the word's “globalization” and “localization.” The term is used to
describe a product or service that is developed and distributed globally but is also adjusted to accommodate
the user or consumer in local market.
McDonald's as a business has adapted its products in many ways when entering an international market.
For example, McDonald's product in Germany called the Mc Beer. McDonalds adapted their products to
fit the German culture of the love of beer. Drinking beer became so popular and important to Germans
as 4Drinking beer back then was safer than drinking water. Beer was regarded as safe, nutritious, and
caloric, even good for small children (and it kept them quiet, too). By doing this Mcdonalds were able to
bond with their German customers better as they showed their interest in their customers interests.
Mc Beer: Created in 2016
Another example of how McDonald’s has adapted its products when entering an international market is
their kebab creation in Turkey. When entering Turkey, they made the McTurco Kebab. Kebab originated
in Turkey so by having traditional and well-known food in the fast-food industry is particularly important
as it makes it easier to draw in customers from that specific market. Also, by doing this it shows the
Turkish that Mcdonalds respects their culture.
McTurco: Created in 2010
,Mcdonalds also adapted its products when entering the Indonesian market. The menu was adapted to
accommodate the eating requirements of Muslims as majority of Indonesia's population is Muslim. They
made a range of meals which came under the name of called PaNas which mainly consisted of rice and
halal chicken and instead of pork they made a wider range of fish-based meals. In Indonesia, it's very
traditional that almost every meal is eaten with rice. By doing this Mcdonalds showed their respect
towards the Indonesian culture and religious beliefs which made their costumers more appreciative
towards the company.
PaNas (Rice Meal)
The last example is that Mcdonalds adapted their products when entering the Indian Market. Mcdonalds
adapted their menu by making most of their meal's vegetarian. They replaced beef with chicken in
their meals. 5As cows are considered sacred, the Big Mac became the Maharaja Mac. They also
created the McVeggie and the McAllo Tikki for vegetarians who represent the majority of people
in India. By doing this it allowed Mcdonalds grow as it was seen as harder and a risk for an
American fast-food company to tend to a market that is mainly vegetarian. The vegetarian
customers are incredibly grateful that the company took their food preference into account.
,McDonalds changed its advertising and marketing strategies in India in order to successfully adapt their
products. For example, in 2018 McDonalds made a 6campaign and advertisement that aims to
encourage people to find the child within them. They were inspired by a 35-year-old toy collector named
Sunil Chawla who had managed to collect over 300 Happy meal toys. Since the launch of happy meals in
India in 1997 the toys have always been popular. This has helped McDonalds successfully adapt their
products in India because they believe that the toys their customers have collected over the years bring
back the happy memories created over food. It has also helped McDonald connect with their customers
on a more emotional level.
McDonalds has also adapted its marketing strategy in America in order to successfully adapt their
products. 7.1For example, in 1974 McDonalds founded a non-profit organization named Ronald
Mcdonalds House Charity which aims to create, find, and support programs that directly improve the
health and well-being of children. They used this charity to house families with sick children and used
the hospital to enable the parents to stay close to their hospitalized child. This has helped Mcdonalds
successfully adapt their products because by adding human touch to their advertising and marketing it
has emphasized Mcdonalds warmth and care towards its consumers. Mcdonalds are able to bring
people happiness and bring them together.
7.2Mcdonalds organizational culture emphasizes human resource development and efficiency. It
supports business growth and success in the international fast food restaurant market. This
organizational culture has the following characteristics, 8arranged according to McDonald’s
, prioritization: People-centricity, Individual learning, Organizational learning, Diversity and inclusion.
McDonald's decided to change their approach on their culture as they started to notice there was a
decline in sales and profits. Customers began to shift their appetite to the more 9healthy and natural
style competitors such as Panera Bread, Zoup!, Wegman’s and Whole Foods. To make sure their
sales were increasing Mcdonalds decided to 10expand its healthy-eating commitment by
offering fruit and vegetables options as part of its meal deals and marketing healthier
alternatives to children amid growing pressure from governments and consumers to help tackle
obesity. They had already also 11cut the salt, fat and sugar content in its burgers and chips and
introduced healthier options, such as a grilled chicken wrap, as well as salads, raw vegetables and fruit.
Doing this really helped gain higher profits and sales although 12campaigners say the firm still has
a long way to go to improve its image as a healthy-eating destination.
1: https://en.wikipedia.org/wiki/McDonald%27s
2: https://www.statista.com/statistics/219454/mcdonalds-restaurants-
worldwide/#:~:text=Global%20foodservice%20retailer%20McDonald's%20operated,for%20the%20las
t%2013%20years.&text=McDonald's%20is%20undoubtedly%20the%20world's,locations%20in%20ove
r%20119%20markets
3:https://www.ukessays.com/essays/commerce/business-organisation-and-environment-for-
mcdonalds-commerce-essay.php
4: https://germanfoods.org/german-food-facts/brief-history-of-german-
beer/#:~:text=The%20Germans%20did%20not%20invent%20beer.&text=Drinking%20beer%20back%20t
hen%20was,of%20the%20Beer%20Purity%20Law..
5: http://naturallygreattraders.blogspot.com/2016/11/mcdonalds-marketing-strategy-of.html
6: https://www.thedrum.com/news/2018/01/11/mcdonalds-india-ad-reminder-everyone-kid-heart
7.1:https://www.marketingweek.com/mcdonalds-vows-to-ramp-up-marketing-of-healthy-options/
7.2: http://www.ijbmi.org/papers/Vol(5)11/version-4/G051104042044.pdf
8: http://panmore.com/mcdonalds-organizational-culture-analysis
9: http://panmore.com/mcdonalds-organizational-culture-analysis
10:https://www.ishn.com/articles/104797-mcdonalds-goes-for-a-culture-change
11: https://www.marketingweek.com/mcdonalds-vows-to-ramp-up-marketing-of-healthy-options/
Analyze the effectiveness of the strategies and resources used by a selected international business.
Strategies:
One strategy McDonalds could use when choosing to trade internationally is a Joint Venture.
1A joint venture (JV) is a business arrangement in which two or more parties agree to pool their
resources for the purpose of accomplishing a specific task. Mcdonalds partnered with Coca-Cola
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