MC DONALDS

 McDonald's is an American hamburger and fast food restaurant

chain that was founded in 1940 by Richard and Maurice
McDonald
 Currently the second largest fast food restaurant chain with over
37,855 restaurants operating in 115 countries
 The key to rapid and successful international Expansion of
McDonald’s is the franchise model
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FRANCHISED VS COMPANY OWNED

Company Owned
18%

Franchised
82%
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Think Global Act Local : McDonald’s employs a transnational

strategy in terms of local responsiveness and global integration.

Local Management : Hiring locals would bring more acceptance of

the company in local market by customers and company can gain
easy access to bureaucracy associated with local government

Pricing Strategies : McDonald’s mainly open their shops in major

cities targeting middle- and upper-class citizens as they can afford the
prices. After this they start targeting lower middle-class citizens.
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Entry Strategy : McDonald’s uses a combination of direct investments

and franchising strategy when it enters new markets

Regional Strategy : Regional strategy became important for

McDonald’s they started their expansion in Asian countries as their
culture is very different from western world. McDonald’s adopted
product localization and innovations for new offerings based on local
tastes and needs.
Ex : Mc Aloo Tikki Burger in India
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Franchising as an Entry Method

 The partner will be largely responsible for the management of any units that open
for business in the region. Burger King supplies the business strategy and aids the
partner in finding suppliers.
 The company collects fees from franchisees to fund regional marketing campaigns,
and assists foreign partners in their regional advertising efforts
 the first foreign markets to be penetrated were Canada and Mexico, due to their
proximity to the United States
 Burger King normally takes a minority equity stake in their joint ventures. Taking
the minority role reduces the financial risk for Burger King, while retaining some
control, and motivates the franchisor to succeed
 Burger King globally sold all its older restaurants, apart from a handful in Miami, to
its franchisees
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Marketing
 With its infamous motto “be your way,” Burger King is renowned for its
commitment to customer choice.
 BK’s promotional campaigns differ from one country to the other depending on
the market conditions and in a way which suits the consumer attitudes, culture
and many other factors in that market.
 Burger King uses demographic and geographic segmentation variables in order to
cater the changing taste & preferences of the consumers globally.
 It uses differentiated targeting strategy so as to address the needs of the
customers accordingly
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INDIA
 Company is aimimg for quality locations.
 Currently, Burger King has 11 burgers on its
Indian menu that don’t exist anywhere in the
world.
 Also, despite beef burger being its global best-
seller, it follows a no-beef and no-pork policy in
India.
 All its outlets have separate kitchens for
vegetarian and non-vegetarian food.
 BK is planning on taking Indian innovations like
Veggie and Chicken Tandoori Burger across the
globe.