Globalization Strategy of McDonald's Corporation


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Case Details:

Case Code : BSTR310
Case Length : 22 Pages
Period : 2000-2008
Pub Date : 2009
Teaching Note :Not Available
Organization : McDonald's Corporation
Industry : Fast-food
Countries : Global

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"McDonald's global presence is as strong now as it ever has been and people all over the world are becoming more accustomed to eating McDonald's fast and inexpensive meals on the go."1

- Ockham Research2, in 2008.

"McDonald's international operations continued to grow at a brisk rate, helping to insulate the company from the housing-led US economic downturn that is hurting upscale restaurants."3

- Financial Express4, in 2008.

"The world is becoming a service society. People are hungry for service, but in many countries they don't get any except at McDonald's. That's why our stores are so crowded. That's why we're ahead."5

Rolf Kreiner, ex-Head of marketing at McDonald's Germany Operation, in 1994.

Untouched by Global Economic Slowdown

In July 2008, US-based McDonald's Corporation (McDonald's), one of the world's leading fast food restaurant chains, reported a net income of US$ 1.19 billion for the second quarter of the year 2008. This stood in sharp contrast to the corresponding quarter of the previous year when it had suffered a net loss of US$ 711.7 million.

The company said that the sales had largely been achieved due to brisk business in its international markets.

Globalization Strategy of McDonald's Corporation - Next Page>>

1] "McDonald's Riding High by Pricing Low,"http://wallstreetpit.com, October 22, 2008.
2] Ockham Research is an independent equity research and investment analysis company, based in Atlanta, Georgia, the US.
3] "McDonald's Mulling More Product Price Rise,"www.financialexpress.com, August 07, 2008.
4] Financial Express, part of the Indian Express Group, is a leading business and finance newspaper in India. It was established in 1961.
5] Andrew E. Serwer, John Wyatt, "McDonald Conquers the World,"http://money.cnn.com, October 17, 1994.

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