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As Global competition increases it becomes essential for companies to position themselves in a globally competitive market. The goal of the company is to improve its current situation to take advantage of opportunity in the global market. Global marketing implies that an organization should standardize its marketing programs, and coordinate and maintain appropriate business processes. The company should fully understand the nature of competition and planning requirements from a global perspective. When a company expands its business in different regions, it creates better economies of scale and creates a competitive advantage for multinational companies(Alonet. al.2020). It increases the transmit of knowledge and experience across different countries which results in enhanced communication in market activities. Global marketing can also gain access to the toughest customers and please the customer in product categories that are normally hard to reach. This will also diversify your business and financially stable. In this report, we will be discussing the company McDonalds operating in two different countries and following two different cultures. The company should concern about these factors while operating in other countries like size, level of policy decisions, staff hold up, source of natural resources, and many other factors. Here McDonald's is located in two different locations are UK and china and we will discuss their cultural differences.
McDonald's is the biggest chains of food restaurant. The company operates 32000 stores serving more than 60 million of customers daily. The success behind the company is the international expansion franchise model pioneered by them. Mcdonald's is one of the famous brands in the world and world's largest chain of hamburgers fast food stores. The company was operated in California by Dick and Mac in year 1940; they could scale their brand by selling high-quality products at low prices and quickly. The company has widen across 117 countries and operates 32000 stores worldwide employ 1.5 million people. As a fast food company, they sell products like burgers, French fries, breakfast stuff, soft drinks, desserts, milkshakes and many more food product(Royleand Rueckert,2022). Its menu is branded around the globe but there is some geographic variation according to the taste preference of customers. Mcdonald's continuously improves its product and services based on the altering needs of consumers. It offers fast services which is a huge value addition. The competitive advantage of the company is resolute by its presence of smart and sensible goals. MacDonald's competitive advantage has included nutrition, handiness, low cost, innovation, quality, cleanliness, and value-added services. From the long-term perspective, the company should improve its set efficiencies to reduce the cost and it should put together technology as a means of ensure key standards like burger king and KFC are competitors of the association. McDonalds'main cutthroat advantage is that the company is occupied in anwide-ranging utilization of economies of scale and it is known for the speed to customers without compromise the quality of the services. They provide big Mac taste the same almost all around the world by the use of the same ingredient in the same quality and the standardized ways of cooking around a globe.
The two marketing environment is:-
The pestle model includes political, economic, social, technological, legal and environmental factors.
Political: China follows a socialist economy, which means each land and region, belong to the government, and the government rule prevails. The food safety problem in China in 2014 affect McDonald's sales(Perera,2017). Whereas in the UK, the government have severe health regulations and it put McDonald's was fined 200000 pounds for violating the health standards in 2018.
Economic:China is a developed country and has a good economy. China's inflation is going rapidly and many investors invest their capital in China from where they get lots of opportunities and profit. McDonald's operated its first store in Shenzhen as well as earns many profits every year. And in the UK, McDonald's serves 2.1 million jobs, and in the past 45 years, 54.4 billion pounds have contributed to the UK economy.
Social:Earlier Chinese government introduced the "one-child policy" but currently the parents can raise to two children. This increase a growth opportunity for McDonald's and the company incorporated China-relevant menu items into its menu(Wuand Ma,2021). On another hand in the UK, related to these factors McDonald's should introduce health awareness tendencies among customers.
Technological:China become modern in the technology sector according to this company has a delivery service 24/7 plus customers can buy the food online. In the UK,the company increases the publicity about the fast industry through social media and relaxation levels among customers.
Environment:In this analysis, McDonald's should give way to CSR strategies addressing environmental concerns(Vrontisand Pavlou,2008). A company needs to expand its supply chain to minimize the effect of atmosphere change. McDonald's in the UK leads people to use environmentally friendly materials.
Legal: the company faces the ultimatum of higher mini wages, that leads to higher prices and costs in China. And McDonald's in the UK would promote legal rules, regulations, and health complaints among consumers.
There are five forces analysis in porter model:
Teenagers are the main target customers of McDonald's company in China, Majorly focusing on the age group of 15-59 years and also providing a special space called "Children paradise". Whereas in the UK, McDonald's daily customer traffic is 62 million and more(Ceil,2017). The highest target customer include parents with young children, teenagers, business customers, and young children.
When the company started its operations in China the problem is the already established market of KFC and Pizza Hut, and the sale of this company is higher than that of McDonald's. On another hand in the UK, KFC, Pizza Hut, Domino's, Burger King, Starbucks, and uncle John's Pizza competes with McDonalds for market share.
MC Donald’s in chinaentered the Chinese market with their first restaurant in Shenzhen in 1990. China became the largest growing market with 960 branches & over 60k employees as of the year 2008. Mc Donald's in china mainly focused on themselves by improving on core menu extensions, convenience, and value to maintain its consistency in market. McDonald china majorly concentrates its firm in big cities like Guangzhou, Shanghai, Shenzhen and the eastern & central parts of china(Tienet. al.2020). The Biggest challenge for McDonald’s at the time of entry was another big Rival Brand YUM Brands (which has the main popularity amongst products used chicken traditionally and is more popular than beef among Chinese.)
MC Donald’s in the UK came first in 1974 with their first Restaurant in Woolwich in Southeast London. Mc Donald’s managed about twelve hundred rostra branches in UK including seven hundred drive-through outlets as of year 2009. McDonald’spotted the PLAN TO WIN strategy to increase sales in the UK. Under the PLAN TO WIN strategy they offered variety & value, Tastier food & improved service to its customer(Yuand Zhang,2009). Over the years the company has faced many challenges but one of the major issues was perceptions of them as being promoters of obesity.
Strategies used in entering to market used by China Mc Donald’s were Direct sales by opening the first drive-through in Shenzhen, whereas in the UK Mc Donald has a Wholly-owned Subsidiary.
If we talk about the STP facts about both of the countries considering MC Donald’s their strategies somewhat may come out as similar but not very much as Mc Donald’s has done many major to minor changes in their given geographical, Demographic & Behavioral areas to attract and keep the customers attached.
Segmentation:Under the Geographical area, McDonald’s had set up their restaurants in major cities of china to attract a lot of customers. Whereas in, UK McDonald's didn't have to do much due to their double the number of restaurant chains present with 700 drive through already showing their strong grip on the UK. Demographicallyalso McDonald’s performed very strategically by attracting youngsters by giving them the Happy Meal menu as also products pricing of McDonald’s depends on the respective country by this they have gained an extra edge over the customer desire (Membeand DorizaLoukakou, 2012). On the hand, McDonald's UK has a strong grip on every age group whether they are youngsters, middle age adults, or old-age customers due to their arrival in the market and regular customer eat-outs.
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