McDonalds Success Strategy and Global Expansion

Through Customer and Brand Loyalty

Presented by:Group - 4

Presented to:Prof. Pradeep

05/02/2023PROPERTY OF INDUS BUSINESS ACADEMY. FOR ACADEMIC PURPOSE ONLY. 2

About McDonalds• 1st Restaurant1940• First McDonald's with the arches opened1953• Ronald McDonald as Mascot1967• “M” appeared as a mascot of McDonalds1968• Decision taken to go global1970• McDonalds entered India1996

05/02/2023PROPERTY OF INDUS BUSINESS ACADEMY. FOR ACADEMIC PURPOSE ONLY. 3

PESTLE AnalysisPolitical: Difficult to enter foreign markets

Economical: Dip in sales, low profits, losing market share

Social: Fad of healthier eating, culture of the country

Technological: Updating and ever-changing environment

Legal: Employment opportunities to be created in host country

05/02/2023PROPERTY OF INDUS BUSINESS ACADEMY. FOR ACADEMIC PURPOSE ONLY. 4

Human Resource ChallengesHost government relations and orientation

Laws and Business practices across the globe

Position filling, Management Development and Organisation development

Transfer of current employees vs Hiring Locals

Understanding the culture of new market

International Taxation policies

International relocation and orientation

05/02/2023PROPERTY OF INDUS BUSINESS ACADEMY. FOR ACADEMIC PURPOSE ONLY. 5

Strategies – Human Resources

Hiring

• Locals• Local Language

• Expatriates• Company’s Culture• Expertise Knowledge

Management Development

• Training and Development

• Promotions• Transfers• On the Job Training• Imparting skills and

values• Career Development

Other Strategies

• Growth opportunities to the employees

• Support to minorities• Education Courses• Informal Networking

activities• Seminar for women• Diversity in

employment

05/02/2023PROPERTY OF INDUS BUSINESS ACADEMY. FOR ACADEMIC PURPOSE ONLY. 6

Challenges faced by McDonalds

Dip in sales due to new fad of healthy eating

Cut Throat Competition

Decrease in profit and market share

Country Specific product development

Difficulty to enter in India and China

05/02/2023PROPERTY OF INDUS BUSINESS ACADEMY. FOR ACADEMIC PURPOSE ONLY. 7

Global Growth and Success Strategies(1/3)

Advertising• Middle and Upper Class• Bargain Deals for

middle and lower class

Research• Customization of

products• PESTLE• “Think Global, Act

Local”

Country Specific• Emphasis on Local

Management• Corporate Citizenship• Pricing• Politically Sensitive

Strategy• Employment

Opportunity• Environmental

Friendliness

05/02/2023PROPERTY OF INDUS BUSINESS ACADEMY. FOR ACADEMIC PURPOSE ONLY. 8

Global Growth and Success Strategies(2/3)

India• Developing products

which are line with Indian taste buds

• Not using Beef for patties

• Gujarat – Vegetarian• Delhi – Chicken and

Lambs

China• McKids – Accessories for

Kids• Chinese society aspires

Self-Esteem• Depicting beef as Self-

Esteem

Fast Food• Food is weakness of

human race• Especially fast food• Even more when it is

cheaper and healthier

05/02/2023PROPERTY OF INDUS BUSINESS ACADEMY. FOR ACADEMIC PURPOSE ONLY. 9

Global Growth and Success Strategies(3/3)

Research and Development• Developing healthy fast

food• Developing food

according to host country

Retaining Loyal Customers• Services which

customer value• Lead employees• Anything for customer• Customer is always

right

Qualities customer aspire• Seamlessness• Trustworthiness• Attentiveness• resourcefulness

05/02/2023PROPERTY OF INDUS BUSINESS ACADEMY. FOR ACADEMIC PURPOSE ONLY. 10

Communicate

Empower

Guide

Show Value

Equip

Evaluate and Compensate

Build for the future

• Impart your vision and your goals to your employees

• Encourage employees to be flexible• Supervisor and manager should supervise

and guide employees• Employee should understand pay-off and

are more likely to support organisation• Provide resources to your employees• Objective evaluation and similar

remuneration• Recruit, hire, develop and retain employees

for future

Service Delivery

Thank You

05/02/2023PROPERTY OF INDUS BUSINESS ACADEMY. FOR ACADEMIC PURPOSE ONLY. 11