This document provides an overview of McDonald's global operations and strategies for international expansion. It discusses McDonald's history and founding in the US in 1940. It then outlines McDonald's strong global presence with over 36,000 restaurants in 118 countries. The document also examines how McDonald's adapts to different cultural dimensions in countries like India, Saudi Arabia, Germany, and China by tailoring menus and restaurant operations. Finally, it summarizes McDonald's key strategies for entering new international markets through franchising, licensing, joint ventures, and subsidiaries.

1. Discover
McDonald’s
Around the Globe
BUS-476-A1: International Management
Group Members: Iris Lopez, Rebekah Bittner, Chia Jung Li (Irina)

2. Objective
 Provide Company Background and Fun Facts
 Discuss Culture Dimensions
 Review Systematic Environment Domains
 Entering International Markets Strategies
 Strategy for International Business and Business Function
 Conclusion
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3. Company Background
 1940: Year first McDonald’s Opened in SanBernardino,CA
 Founder: Dick and Mac McDonald
 1954: Ray Krock suggests nationwide franchising
 1955: Ray Kroc founded the first McDonald’s Corporation
 1967: McDonald’s goes international:
 Restaurants open in Canada and Puerto Rico
 Headquartered location is in Oak Brook, Illinois.
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4. Fun Facts
 World’s largest foodservice retailing chain
 Strong Global Presence
 Locations in over 118 countries
 Operates over 36,000 fast food restaurants
 Employs 1.5 million employees globally
 Serves over 69 million customers
 Brand Recognition
 Ronald Mcdonald is as famous as Mickey Mouse
 Majority of the Restaurants are operated by Franchisees
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5. Cultural Dimensions
 America:
 McCulture
 American invasion- American way of life
 Very popular (ex: Big Mac Index)
 67.6% of its business from outside the U.S
 Special menu for difference countries
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6. Cultural Dimensions
 India
 82% of Hinduism, 12% of Islam, 2.5% of Christianity,
0.7% of Buddhism, and 2.8% of other religions
 Chicken instead of beef and pork & meat-free menu
 Opened vegetarian-only restaurants in India in 2012
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7. Cultural Dimensions
 Saudi Arabia
 Follow the local law: segregate male and female
customers
 No Pork
 Mac Arabia Chicken Sandwich
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8. Cultural Dimensions
 Germany
 Beer
 China
 Rice burger & Soup
 Black and white burger in Chinese New Year (Ying & Yang)
 upgrade its appearance and expand the chain’s menu
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9. Cultural Dimensions
 Cultural Analysis
 Culture affects its aspects of the managemnt
 Adaption depends on different culture
 Avoid culture mistakes
 Meet demands
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10. Systematic Environmental Domains
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McDonald’s
Organization
Legal and
Regulatory
Environment
Economic
Environment
Political
Environment
Technical
Environment

11. What is Strategy?
Enterprise
Valuation
Profitability
Reduce Costs
Add Value and
Raise Prices
Profit Growth
Sell More In
Existing Markets
Enter New
Markets

12. Business Strategies
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• Franchising
• Licensing
• Alliances
• Exporting
• Global
• Multicultural

13. Entering International Markets
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Subsidiaries
5%
Joint Ventures
15%
Franchise Agreements
80%

14. Where We Are

15. Conclusion
 Most recognized food chain globally
 Global cultures lead to business variation
 Three primary strategies for worldwide growth
 Ability to adapt to markets is prime factor in success
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