Mc Donald's Success Strategy and global expansion

1. McDonalds Success Strategy and
Global Expansion Through
Customer and Brand Loyalty
Presented by:
Group - 4
Presented to:
Prof. Pradeep

2. About McDonalds
• 1st Restaurant1940
• First McDonald's with the arches opened1953
• Ronald McDonald as Mascot1967
• “M” appeared as a mascot of McDonalds1968
• Decision taken to go global1970
• McDonalds entered India1996
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3. PESTLE Analysis
Political: Difficult to enter foreign markets
Economical: Dip in sales, low profits, losing market share
Social: Fad of healthier eating, culture of the country
Technological: Updating and ever-changing environment
Legal: Employment opportunities to be created in host country
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4. Human Resource Challenges
Host government relations and orientation
Laws and Business practices across the globe
Position filling, Management Development and Organisation development
Transfer of current employees vs Hiring Locals
Understanding the culture of new market
International Taxation policies
International relocation and orientation
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5. Strategies – Human Resources
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Hiring
• Locals
• Local Language
• Expatriates
• Company’s Culture
• Expertise Knowledge
Management
Development
• Training and Development
• Promotions
• Transfers
• On the Job Training
• Imparting skills and values
• Career Development
Other
Strategies
• Growth opportunities to
the employees
• Support to minorities
• Education Courses
• Informal Networking
activities
• Seminar for women
• Diversity in employment

6. Challenges faced by McDonalds
Dip in sales due to new fad of healthy eating
Cut Throat Competition
Decrease in profit and market share
Country Specific product development
Difficulty to enter in India and China
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7. Global Growth and Success Strategies(1/3)
Advertising
• Middle and Upper
Class
• Bargain Deals for
middle and lower
class
Research
• Customization of
products
• PESTLE
• “Think Global, Act
Local”
Country Specific
• Emphasis on Local
Management
• Corporate Citizenship
• Pricing
• Politically Sensitive Strategy
• Employment Opportunity
• Environmental Friendliness
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8. Global Growth and Success Strategies(2/3)
India
• Developing products
which are line with Indian
taste buds
• Not using Beef for patties
• Gujarat – Vegetarian
• Delhi – Chicken and
Lambs
China
• McKids – Accessories for
Kids
• Chinese society aspires
Self-Esteem
• Depicting beef as Self-
Esteem
Fast Food
• Food is weakness of
human race
• Especially fast food
• Even more when it is
cheaper and healthier
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9. Global Growth and Success Strategies(3/3)
Research and
Development
• Developing healthy fast
food
• Developing food
according to host country
Retaining Loyal
Customers
• Services which customer
value
• Lead employees
• Anything for customer
• Customer is always right
Qualities customer
aspire
• Seamlessness
• Trustworthiness
• Attentiveness
• resourcefulness
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10. Communicate
Empower
Guide
Show Value
Equip
Evaluate and Compensate
Build for the future
• Impart your vision and your goals to your
employees
• Encourage employees to be flexible
• Supervisor and manager should supervise
and guide employees
• Employee should understand pay-off and are
more likely to support organisation
• Provide resources to your employees
• Objective evaluation and similar
remuneration
• Recruit, hire, develop and retain employees
for future
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Service Delivery

11. Thank You
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