McDonald's uses the Ansoff Matrix to guide its business strategy. The company focuses on market penetration through low pricing and convenience. It develops new products tailored to local tastes, like offering vegetarian options in India. McDonald's also expands into new markets by opening outlets in countries like Nigeria and Tunisia. While the company diversified into hotels and cafes, its hotel venture in Switzerland failed to match McDonald's brand image and was ultimately unsuccessful.

1. ANSOFF MATRIX FOR McDonald's
PRESENT NEW
Market Penetration
Cleaver Pricing,
Happy meal,
Speedy service,
Drive through.
Product Development
McSpaghetti, McAloo
Tikki, McPizza , Masala
Grill , Royal Paneer .
All these in India since
people do not eat beef.
Market Development
Has presence in 121
countries and is
planning to open
outlets in Nigeria,
Tunisia, Armenia.
Diversification
McCafe, McStops,
Hotel(Swizerland).
MARKETS
PRODUCTS
NEW PRESENT

3. Glocolisation:Think Global , Act
Local
• McDonalds, the global brand remains the same wherever you experience
it.
• However, there many be subtle (and not-so-subtle) changes to the fast-food
menu to take account of local tastes and traditions.
• McDonald's has restaurants in more than 100 different countries.
• Instead of offering an American-style menu in a place like India, where
many residents do not eat beef, McDonald's sells mostly chicken, lamb
and vegetarian offerings.

4. Diversification : Failure
• McDonald's made its foray into the hospitality
industry in 2001, opening two hotels in Switzerland,
at Zurich and Lully.
• The "Golden Arch Hotels" were positioned as four-star
facilities with the latest in-room technology and
very original, modern interior design.
• Reactions and reviews of guests following their stay
there were mixed. Most seemed to agree, that the
hotel's four-star rating didn't seem to correspond
with McDonald's image. The Golden Arch in Zurich is
McDonald's first hotel.
• Unfortunately, this venture was not successful as it
went to market in the early 21st century

5. Golden Arch Hotel