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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Background Note

McDonald's was started in the late 1930s by Richard and Maurice McDonald in California after they failed to earn a profit by running a movie theater. The brothers were inspired by a hot dog stand nearby, which always did brisk business even when other busisnesses were struggling under the effects of the Great Depression...

Global Expansion of Mcdonald's

After achieving success in the US, McDonald's opened its first international restaurant in Canada on June 1, 1967, in Richmond B.C. In July 1971, it began operating in Tokyo, Japan, in a joint venture with a local partner Den Fujita...

Challenges along the Way

In several countries which it entered, McDonald's faced opposition from anti-World Trade Organization (WTO), anti-America, anti-capitalism, anti-globalization activists and organizations. Protesters, associating the growth of McDonald's with American dominance, opposed the rapid spread of the company all around the globe...

Impressive Results in Tough Times

In October 2008, the company revealed its third quarter results. The company had achieved a 11% increase in net income, amounting to US$ 1.19 billion. While domestic earnings showed a modest growth by 9%, international operations had fared better...


Exhibit I: Important Milestones in McDonald's Growth
Exhibit II: List of Countries Where McDonalds Was Operational

Exhibit III: List of the Local Items offered by McDonald's in Some of the Different Countries
Exhibit IV: Comparison of Rates under Big Mac Price Index* as of 2008
Exhibit V: McDonald's Comparable Sales in November 2008 and 2007

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