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Essay Unit 18 - International business
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An example for BTEC Business Level 3 - Unit 5 International business Assignment 2 with all the criteria up till distinction level
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Unit 5: International BusinessStrategies and Resources
Assignment 3
Unit 5 - International Business
Strategies and Resources
McDonald’s
Introduction:
The purpose of this report is to explain how businesses adapt their products and processes
to match international markets. I will also examine how successful their resources and plans
are in helping the company succeed in global marketplaces. My chosen business is
McDonald’s. McDonald’s is an American multinational fast-food chain which was found in
1940 by Richard and Maurice McDonald. With the introduction of the golden arch’s emblem
in 1953, the company began as a hamburger stand and eventually evolved into a franchise.
By revenue, McDonald's is the largest restaurant chain in the world, operating in more than
100 nations. The French fries and Big Mac are probably their two most well-known licenced
menu items, and each location's menu is unique and reflects local consumer preferences.
https://en.wikipedia.org/wiki/McDonald%27s
P8: Explain how products and processes have to be adapted for
international markets by a selected business:
The largest fast food chain restaurant in the world is McDonald's. It makes sense that
McDonald's is present all over the world because it is a global brand. The company's website
states that as of January 2018, it operated in 101 countries and provided services to 69
million customers daily. It has 1.9 million employees. In 2017, it generated $22.8 billion in
sales. The menu features a range of foods, including drinks, desserts, breakfast, and items
prepared with chicken, fries, and hamburgers. Since customers' preferences have changed,
McDonald's has responded by offering healthier options including fruits, smoothies, and
salads. McDonald's offers a wide range of items to its customers all around the world. The
company is well renowned for introducing fresh items that blend well with the local culture
of a specific nation or country. This is one of the most crucial factors that contributes to
their success on a global scale. Every country where they operate restaurants sees their
menus modified to fit local preferences and customs. Since they place a high value on
respecting cultural differences and beliefs, each nation has its unique strategy for creating
its menu items.
Offering local markets highlights the efficient geographic segmentation, which in turn helps
them achieve a wider reach than their rivals. McDonald's strategic goal is to support cultural
diversity in all of their markets and adapt their offerings to match the market they are
operating in internationally. An illustration of this is McDonald's functioning in Islamic
nations that uphold sharia law, such as Saudi Arabia, the United Arab Emirates, Egypt, and
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, Unit 5: International Business
Strategies and Resources
others. McDonald's has ensured that the halal-certified foods on their menu are being
offered to customers. All McDonald's locations in Pakistan and Arab nations serve the
"McArabia," a pita bread sandwich. To meet the religious requirements in Muslim nations,
products have a sign that indicates that they are halal. Similar to this, the majority of people
in Indonesia are Muslims, thus McDonald's changed to meet people's dietary needs by
substituting fish for pork items. Furthermore, because Indonesians prefer rice to bread,
McDonald's has included rice to their menu along with various spicy substitutes that the
locals enjoy.
McDonald's also modifies its menu in many nations to reflect local dietary customs and
religious beliefs. The cow is a revered animal in India, where the majority of people are
vegetarians and avoid eating any certain types of meat. McDonald's changed its menu to
accommodate the local tastes and preferences of the people by substituting chicken for
beef in their dishes due to the very huge customer base in India. It started off as an effort to
develop India's version of McDonald's iconic Big Mac. The idea was to create a mouth-
watering made-in-India burger by fusing local and international (or "glocal") flavours. As a
result, they introduced the Maharaja Mac, which is the regionalized Big Mac. The Maharaja
Macs are currently some of the most popular burgers available in India at McDonald's. They
created the Aloo Tikki Burger, a 20-rupee (20p) burger with a cutlet made of mashed
potatoes, peas, and Indian spices. It was essentially the McDonald's equivalent of street
cuisine, something you might see on Indian streets.
Japan is the second-largest market for McDonald's restaurants in the world, and the
company has tailored its menu to the tastes of the local populace, who favour indigenous
flavours to foreign ones. So, the company included Japanese products to please the
Japanese without sacrificing its authentic Western flavour, which is particularly noticeable in
Japan's burger selection. They greatly increased their consumer base by introducing
products like teriyaki and green tea. The menu changes frequently depending on the season
because warmer food is required in colder weather and vice versa. For instance, curry rice is
offered during the cooler months while green tea ice cream is provided during the warmer
months. Since many of McDonald's beverages are fruity iced teas, the drinks are also
updated to reflect the seasonally best fruits.
Also, McDonald's creates several marketing plans to appeal to a variety of customers. In
order to promote its brand, McDonald's employs a variety of methods depending on the
country. For example, because anime is a significant aspect of Japanese culture, they use
Japanese cartoons and anime to market there because they appeal to both children and
adults. Another example would be to avoid using women in advertisements when doing
business in Muslim nations, and if they do, the women should be dressed modestly and
appropriately. If this is done, the business risks losing clients, developing a bad reputation
among the community, which will lead to fewer people applying for jobs, and ultimately
losing money and sales. In order to respect all cultural variations, McDonald's constantly
tries to change their menu to suit local flavours and traditions in the nations where they
have restaurants.
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