I need help with discussion

11/10/2024

Business Consulting Plan Part 2

(McDonalds)

Shavonna McFarlin

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Challenge or Opportunity

The opportunity for MacDonald’s is global expansion.

It would reduce overreliance on the U.S. market and increase its global customer base.

By taping into the larger consumer bases, the company can increase its overall sales and market revenues.

The company has the opportunity to expand its operations and the world.

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The opportunity is global expansion for McDonalds . Currently the company over-depends on the U.S. market and has a limited presence in the international market. Expanding to will lower the company’s costs by accessing a wider market base. Entering into international markets can help the company tap into larger consumer bases increasing their overall sales and market revenues (Wu, 2022). Global expansion allows McDonalds to diversify its operations, reduce reliance on the U.S market alone and mitigate risks associated with economic fluctuations within a single market (Crawford, 2015). In addition, by expanding globally, the company can increase the economies of scale, lower production and distribute costs and enhancing profitability. It strengthen the brand’s recognition enhancing its position as a global leader in the fast-food industry, further increasing its customer base.

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Competitor 1: Subway

The company’s global expansion has been aided by franchising, keeping its operating costs low.

It has combined strategic franchising and localization efforts to reach different markets across the globe.

It has adapted its menu and operations to the local cultural nuances and preferences.

Competitor Solutions – Competitor 1

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Competitor 1: Subway

Subway’s international expansion has been aided by franchising, which has kept operating costs low and helped the chain gain visibility and customer access. Maintaining brand standards across several location by franchisees manage the locations. The company has Franchisees own Subway, which has a low operational cost. This approach has reduced its investment risk. The restaurant has gained its visibility through swiftly and establishing a competitive edge over its competitors. Therefore, the company has successfully expanded its global presence through a combination of strategic franchising and localization efforts. By partnering with local franchisees, Subway has been able to enter new markets efficiently, adapting its menu and operations to cater to local preferences and cultural nuances (Utama, 2021). This approach has allowed the brand to resonate with diverse consumer segments worldwide.

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Competitor 2 – Burger King

Burger King employs an intensive growth strategy by opening new stores abroad.

The company has expanded its market presence by exploring new markets in established markets.

It has adapted its menus and marketing approaches to match diverse cultural nuances and preferences.

Competitor Solutions – Competitor 2

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Competitor 3: Burger King

Burger King is an American multinational fast food headquartered in Milford. Burger King employs intensive growth strategies by opening new stores in overseas locations where there are no operations. Its cost leadership strategy is particularly important when it tries to break into emerging markets. Burger King has implemented a strategic approach to acquisitions in order to expand its market presence in established regions and enter new markets. An instance illustrating this is the organization’s strategic procurement of Tim Hortons, which facilitated the expansion of its global footprint and the improvement of its product assortment. Acquisitions provide expeditious market penetration and entry into established consumer segments.

Market adaptations an essential component of global expansion, as it necessitates the modification of menus and marketing approaches to adequately address the cultural nuances and preferences of the target market (Ozsomer, 2012). Burger King has exhibited its adaptability through the strategic introduction of menu items and the execution of region-specific marketing initiatives, thus successfully appealing to a diverse clientele across the globe. By employing this approach, the brand’s appeal and importance are significantly heightened across numerous global markets.

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Recommendation
( Tailor to Local Taste, Sustain the Future)

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Recommended Approach and Focus

McDonalds should incorporate locally-sourced ingredients into its menu.

Focus on a more authentic and culturally relevant dining experience

Menu should be tailored to local experience and cultural nuances

It strengthens the connection with local communities by supporting local economies, while expanding its customer base and increasing revenues.

Incorporate locally-sourced ingredients into menu

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McDonald’s, a global fast-food giant, has the unique opportunity to leverage its iconic brand and extensive reach to innovate sustainable practices and embrace local sourcing. It has integrated eco-friendly initiatives into its operations, such as reducing waste, conserving energy, and sourcing responsibly, McDonald’s can appeal to a growing consumer base that prioritizes ethical and sustainable choices. This shift towards sustainability not only enhances the brand’s reputation but also aligns with global trends and regulatory requirements. The recommended approach is to incorporate locally-sourced ingredients into its menu. McDonalds should also focus on offering a more authentic and culturally relevant dining experience tailored to local experience and cultural nuances. This approach can strengthen the connection with local communities, supports local economies, and reduces the environmental impact associated with long-distance transportation (Ozsomer, 2012). By embracing local flavors and traditions, McDonald’s can differentiate itself from competitors and attract a wider range of customers, including those seeking unique and authentic culinary experiences.

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Sources

Crawford, A. (2015) ‘McDonald’s: A case study in glocalization’, Journal of Global Business Issues, Vol. 9, No. 1, pp.11-18.

Wu, Y. (2022). The Differences Between Globalization and Customized Marketing Strategies-Take KFC and McDonald’s in China as an Example.

Ozsomer, A. (2012). The Interplay Between Global and Local Brands: A Closer Look at Perceived Brand Globalness and Local Iconness. Journal of International Marketing, 20(2):72-95.

Utama, A. A. G. (2021). Study of Subway Marketing 4P Strategy. Asia Pacific Journal of Management and Education, 4(2):47-64.

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