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Cuegis Essay-Mcdonald'S: - Positive Viral Marketing-Video of Exceptionally Good Service at The Drive-Thru in 2016

McDonald's is one of the largest fast food chains in the world operating in over 100 countries. To remain successful globally, McDonald's regularly changes its strategy and menu based on customer preferences in different markets. For example, in India McDonald's removed beef and pork from its menu and added popular local items like the Aloo Tikki burger. McDonald's has also innovated its menu, operations, and marketing techniques through new technology and delivery options. While global expansion has boosted McDonald's profits, some criticize its business practices like wage and working conditions issues. Going forward, McDonald's strategic challenges include managing competition, franchise costs during international growth, and economic downturns impacting the restaurant industry.

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Mahin Bin Owais
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75 views9 pages

Cuegis Essay-Mcdonald'S: - Positive Viral Marketing-Video of Exceptionally Good Service at The Drive-Thru in 2016

McDonald's is one of the largest fast food chains in the world operating in over 100 countries. To remain successful globally, McDonald's regularly changes its strategy and menu based on customer preferences in different markets. For example, in India McDonald's removed beef and pork from its menu and added popular local items like the Aloo Tikki burger. McDonald's has also innovated its menu, operations, and marketing techniques through new technology and delivery options. While global expansion has boosted McDonald's profits, some criticize its business practices like wage and working conditions issues. Going forward, McDonald's strategic challenges include managing competition, franchise costs during international growth, and economic downturns impacting the restaurant industry.

Uploaded by

Mahin Bin Owais
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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CUEGIS Essay- McDonald’s

-globalization-a wide range of international forces such as the increasing social,


cultural, technological, and economic integration that influence businesses
-strategy-the significant long term planning decisions that organizations make in
order to meet the needs and wants of their stakeholders
-ethics-the socially accepted moral principles that guide decision making, based on
the collective belief of what is right and what is wrong.
-innovation-incremental or radical improvements to a business idea, or the
generation of new ideas in relation to a final product, service, or process
-Mc Donalds operates in-more than 100 countries
real life example of strike-U.S. nationwide $15 minimum wage strike from McDonalds
workers in 2014 at Time square
-change-The adaptation of business objectives, strategies and operations to
accommodate changes, both internal and external, within the dynamic business
environment
-culture-Ideas, customs and social behavior derived from different values and
backgrounds that influence stakeholder motivations and decisions
-amount of restaurants- McDonald's has around the world-36,000
-impact of globalization on innovation-innovating new products, e.g. burger without
beef in stores in India, Teriyaki burger in Japan, BBQ Brekkie Roll in Australia
-reason for innovating/redesigning existing products-to export the idea of an
American lifestyle, while adding local variations in order to make the locals feel at
home
-advantages of innovation to meet changing customer preferences-increased sales
and brand loyalty
-disadvantages of innovation to meet changing customer preferences-increases
costs of production, loses the standardized approach to its menu
-examples of innovation-product innovation, new division of the Digital Innovation
Team: food delivery services, improved restaurant experience: not going to drive-
thru but ordering while driving
-theories that could apply to concepts of strategy, globalization, innovation-
franchising, international marketing, Ansoff matrix: product development, growth
strategies, product expansion from SWOT
-positive viral marketing-video of exceptionally good service at the Drive-thru in 2016
- 13 million views
-ethical implications of franchises-at a franchise restaurant: a bilingual sign = racist.
The one in Turkish sends customers to a bad neighborhood, while the German one
points to an upper-class area.
-negative viral marketing-a McDonald's employee body shaming a woman - rant from
woman got viral
-impact of innovation and globalization on consumers-foreigners can feel at home
while experiencing American lifestyle with the McDonalds' burgers
-impact of innovation and globalization on the employees- employees now have to
think about how to advertise McDonald's to the increased, diverse customer base -
change marketing strategies
-impact of innovation and globalization on the local community-newly opened store in
Vatican City - angered many Christians in the area because it is situated in Borgo
Pio, just outside the spiritual home of the world's 1.2 billion Roman Catholics.
-new technological innovation according to the increasingly technologically advanced
environment-mobile ordering application, digital menu boards, table service to
enhance brand image and service
McDonalds

Change
McDonalds regularly changes its strategy to keep up with the market demand and also to
remain
competitive in this large market. Over the last year, it has made many changes, for example,
making
major changes to its menu. Adding and removing various dishes all around the world. They
also plan
to add more dishes for breakfast and begin serving ‘healthy’ breakfast, every day of the
month!
Culture
McDonalds has changed there company a lot according to the culture here in India. Before
they
decided to enter the market in India, they had decided to omit beef and pork from the menu
to aid
in preventing the Indian citizens from being offended. research shows that in 2003, of 100
meals
that people ate in a month, only three were eaten out. They introduced a 20 rupees (20p)
burger
called Aloo Tikki Burger, a burger with a cutlet made of mashed potatoes, peas and
flavoured with
Indian spices. "It's something you would find on Indian streets; it was essentially
the McDonald's
version of street food. The price and the taste together, the value we introduced, was a hit. It
revolutionised the industry in India," he says. Now eating out has gone up to 9-10
times per 100
meals and McDonald's in India has more than 320 million customers a year. The entire
menu has
been customised after extensive market research. Now over 70% of the menu has been
changed to
vegetarian to cater to customers. Even competitors such as burger king and subway have
followed
by dropping beef and pork. They have greatly changed the way they plan, make decisions
and
implement strategies because of the country they are entering.
Ethics
In ethics, CSR comes into play, which every business must do as part of its social
responsibility. In
India specifically, to remain ethical, McDonalds has begun investing in a eye care hospital, to
create
an image that is socially responsible, thus making it stand out from its competitors. However
there
are ethical issues with McDonalds as well. People have been fighting for there working rights
due to
cases such as wage theft, poor management and bad working conditions. Ethical issues with
the
food also comes in. There have been cases where McDonalds have given the cows steroids
to make
more beef. All of these worsen the image of McDonalds.
Globalisation
McDonalds is a prime example of globalisation. Originating in USA, and slowly expanding
into
markets and regions where the concept of fast food was not yet discovered. It targeted the
middle
class segment since it saw a niche, and kept the same interior design, service, and quality of
food
throughout the world, generating its amazing band image. These things allowed seamless
globalisation to take place! Making it one of the largest MNC running today.
Innovation
Innovation is key to remaining competitive. Nearly all the dishes in the menu of McDonalds
have
been innovated and designed completely by them! Many trends have begun just by
McDonalds.
These trends aid in creating the brand image of McDonalds, which highly compliment the
sales.
Strategy
The company deals with 3 strategic issues.
1. How to deal with the growing competition

2. How to deal with financial issues such as high franchisee fees in contrast with
geographical
expansion goals
3. How to deal with the worldwide economic crisis
They deal with competition by using aggressive marketing strategies. You will never go a
day without
noticing a sign that leads you to McDonalds or viewing an ad about it.
Financial issues are dealt with the spreading of risk through globalisation. There are so
many
franchises that if one goes into loss, there are hundreds of others ready to cover up the loss
and
make a remarkable profit.
The worldwide economic crisis is something that affects every business, therefore it is not
much of a
problem for McDonalds as it is already established. It can actually prove to be advantageous
as
competition is killed off and it is very difficult for new competition to arise. As this affects
every
business, even the competitors deal with the same struggle, evening out the ‘battlefield’
INTRODUCTION

McDonald's, in full McDonald's Corporation, American fast-food chain that is one of the
largest in the world, known for its hamburgers. McDonald's Corporation is the worlds most
recognised and largest provider of foodservice serving millions of customers daily around the
world and operates in almost 37000 restaurants in more than 120 countries.it was initialled in
1940 with a restaurant opened by brothers Richard and Maurice in California and
McDonalds was founded by Ray Kroc, so why is it called McDonalds? Kroc bought the
rights to the name and the service from the McDonald brothers.. After since its incorporation
in 1955 McDonald has sold more than 100 billion hamburgers. Franchises around the world.

MAIN BODY :-)


(EVIDENCE AND EXAMPLES)

McDonalds followed the marketing demand and did market research with BCG MATRIX
So they found the place of them, got the feedback and position in the global market then did
the SWOT ANALYSIS
(STAKEHOLDERS)
FACTS ABOUT IT

A new McDonald’s restaurant is opened in every 14.5


hours.
5. McDonald’s restaurants feed 68 million people every day.

6. McDonald is also a world’s largest supplier of toys.


CONCLUSION
Problems – conflicts between McDonald partner which McDonald did joint venture with
Connaught Plaza Restaurants (CPRL) 22 years back McDonald's recently announced that it
was shutting down 169 of its 430 outlets in India, following the termination of its franchise
agreement with CRPL (Connaught Plaza Restaurant) due to alleged breach of franchise
terms.

IMPROVEMNETS AND FUTURE PLANINNGS

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