Mc Donalds: a GloCal Company

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Mc Donalds: a GloCal Company

  1. 1. McDonald’s, a global company adopting a glocal strategyHow McDonald’s succeded to conciliate internationalization and localisation ? IPM Oral Presentation Charlotte ROSE Eloïse PETIT Edouard HURTREZ
  2. 2. INTRODUCTION
  3. 3. INTRODUCTIONRichard McDonald Maurice McDonald
  4. 4. INTRODUCTION
  5. 5. INTRODUCTIONMcDonald’s market shares Source: Euromonitor 2010
  6. 6. AGENDA I. MCDONALD’S : A GLOBAL & LOCAL COMPANYA. Globalization and GlocalizationB. McDonald’s Implantation WorldwideC. McDonald’s: a GLOCAL Company II. MCDONALD’S GLOBAL STRATEGYA. Global Facts and StandardsB. Global Operating StrategyC. Global Products Strategy III. REASONS FOR LOCAL STRATEGYA. Satisfaction of Local HabitsB. Price AdaptationC. Harmonized with Local Government Law
  7. 7. I. A GLOBAL & LOCAL COMPANY Globalization McDonald’s: McDonald’s: a Implantation in GloCal& Glocalization the World Company
  8. 8. globalization I. A GLOBAL & LOCAL COMPANY « The growing interdependance of countries worldwide through the increasing volume and variety of cross-border transaction in goods and services and of international capital flows, throught the more rapid and widespread diffusion of technology » source: IMF Globalization McDonald’s: McDonald’s: Implantation in the a & Glocalization World GloCal Company
  9. 9. glocalization I. A GLOBAL & LOCAL COMPANY « A term that was invented to emphasize that the globalization of a product is more likely to succeed when the product or service is adapted specifically to each locality or culture in which it is marketed. » source: whatis.com Globalization McDonald’s: McDonald’s: Implantation in the a & Glocalization World GloCal Company
  10. 10. I. A GLOBAL & LOCAL COMPANY source: www.bme.eu.com www.nationmaster.com Globalization McDonald’s: McDonald’s: Implantation in a& Glocalization the World GloCal Company
  11. 11. I. A GLOBAL & LOCAL COMPANY IN 2011: EMPLOYEES :465,000 NET INCOME: 27 BILLION $If McDonald’s was a country by If McDonald’s was a country bypopulation it would be n 173 GDP it would be n 93 source: www.wikipedia.com Globalization McDonald’s: McDonald’s: Implantation in a & Glocalization the World GloCal Company
  12. 12. I. A GLOBAL & LOCAL COMPANY Globalization McDonald’s: McDonald’s: a Implantation in the GloCal& Glocalization World Company
  13. 13. II. MCDONALD’S GLOBAL STRATEGY Global GlobalGlobal Facts and Operating Products Standards Strategy Strategy
  14. 14. II. MCDONALD’S GLOBAL STRATEGY • 4th most valuable brand in the world • Everyday 0,9% of the world population visits a McDonald’s • 1/3 of all cows in the US • McDonald’s recruitment • Asiatic expansion Global GlobalGlobal Facts and Operating Products Standards Strategy Strategy
  15. 15. II. MCDONALD’S GLOBAL STRATEGY ISO 9001 : 2000 = HACCP, Codex Aliment Arius Certifications (World Health Organization)Allocating environmental affairs officers worldwideCommunity support Global Global Global Facts and Operating Products Standards Strategy Strategy
  16. 16. II. MCDONALD’S GLOBAL STRATEGYDISTRIBUTION CHANNEL• Global logistics operations• Local producers (quality and freshness products, delivery time)• Re-location and closure of underperforming restaurantsDIRECT SALES• Restaurants located in strategic areasMARKET COVERAGE• Covering all central districts• Restaurants located outside of the centers Global GlobalGlobal Facts and Operating Products Standards Strategy Strategy
  17. 17. II. MCDONALD’S GLOBAL STRATEGY Kids 3-7 years old Teens Working Adults tourists Global GlobalGlobal Facts and Targeting Operating Products Standards Strategy Strategy Positioning
  18. 18. II. MCDONALD’S GLOBAL STRATEGY Health Campaign Teenagers  Mc Café Kids  Mascot Family  Slogan Global GlobalGlobal Facts and Targeting Operating Products Standards Strategy Strategy Positioning
  19. 19. II. MCDONALD’S GLOBAL STRATEGY McDonald’s localize its strategies 2009: the biggest advertising global campaign World children’s day Sponsorship in various events 80-20 menu boards Toys with every kids meal Personnal selling McDonald’s Monopoly contest Global GlobalGlobal Facts and Operating Products Standards Strategy Strategy
  20. 20. II. MCDONALD’S GLOBAL STRATEGYVARIATION:• A wide variety of productsINNOVATION:• Nutritional value• Unique foodDIFFERENTIATION:• Investing in new sector• Focusing on kid’s market• Local collaborationPRODUCT ELIMINATION (COMPETITION):• In France : Big Mac in opposite of local food or local food chains Global Global Global Facts and Operating Products Standards Strategy Strategy
  21. 21. III. REASONS FOR LOCAL STRATEGY LocalSatisfaction of Price Government Local Habits Adaptation Law
  22. 22. III. REASONS FOR LOCAL STRATEGY- Tastes In Canada In France LocalSatisfaction of Price Government Local Habits Adaptation Law
  23. 23. III. REASONS FOR LOCAL STRATEGY In India In France and Canada LocalSatisfaction of Price Government Local Habits Adaptation Law
  24. 24. III. REASONS FOR LOCAL STRATEGY The Arch Deluxe Mc Gratin croquette Mc Hot Dog LocalSatisfaction of Price Government Local Habits Adaptation Law
  25. 25. III. REASONS FOR LOCAL STRATEGY- Religion• Special dishes and publicities to celebrate local events• Separation between male and female LocalSatisfaction of Price Government Local Habits Adaptation Law
  26. 26. III. REASONS FOR LOCAL STRATEGY More expensive: More affordable:1. Switzerland 6.81 $ 1. India 1.62 $2. Norway 6.79 $ 2. Ukraine 2.11 $3. Sweden 5.91 $ 3. Hong Kong 2.12 $4. Brazil 5.68 $ 4. Malaysia 2.34 $5. Denmark 5.37$ 5. China 2.44 $ Source: The Economist (Big Mac Index of 2012) Local Satisfaction of Price Government Local Habits Adaptation Law
  27. 27. III. REASONS FOR LOCAL STRATEGY  Respect of prefectural orders concerning the implementation Size of restaurant Respect of the law concerning religion LocalSatisfaction of Price Government Local Habits Adaptation Law
  28. 28. CONCLUSION
  29. 29. THANK YOU FOR LISTENING Do You Have Questions ? IPM Oral PresentationCharlotte ROSE Eloïse PETIT Edouard HURTREZ

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