IntroductionMcDonald's backgroundTwo brothers, Richard and Maurice McDonald founded McDonald's in 1937.The brothers developed food processing and assembly line techniques at a tinydrive-in restaurant east of Pasadena, California.In 1954, Ray Kroc, a milk-shake mixer salesman, saw an opportunity in thismarket and negotiated a franchise deal giving him exclusive rights to franchiseMcDonald's in the USA. Mr Kroc offered a McDonald's franchise for $950 at atime when other franchising companies sold restaurant and ice-creamfranchises for u pto $50,000. Mr Kroc also took a service fee of 1.9 per cent ofsales for himself plus a royalty of 0.5 per cent of sales went to the McDonaldbrothers. The McDonald's brothers sold out for $2.7 million in 1961.McDonald's first international venture was in Canada, during 1967. Shortlyafterwards, George Cohon bought the licence for McDonald's in easternCanada, opening his first restaurant in 1968. Cohon went on to build a networkof 640 restaurants, making McDonald's in Canada more lucrative than any ofthe other McDonald's outside the USA.The key to the international success of McDonald's has been the use offranchising. By franchising to local people, the delivery and interpretation ofwhat might be seen as US brand culture are automatically translated by thelocal people in terms of both product and service.McDonald's now has over 20,000 restaurants in over 100 countries, andaround 80 per cent are franchises.Globalisation versus internationalisationGlobalisation involves developing marketing strategies as though the world isa single entity, marketing standardised products in the same way everywhere.Globalised organisations employ standardised products, promotionalcampaigns, prices and distribution channels for all markets. Brand name,The current issue and full text archive of this journal is available athttp://www.emerald-library.com/ft
BFJ103,298product characteristics, packaging and labelling are the easiest of themarketing mix variables to standardise.Globalisation of markets requires total commitment to internationalmarketing; it embodies the view that the world is a single market. For example,Nike trainers, Levi's' jeans and Coca-Cola have all crossed global borders;however, even there, some tailoring of the message is visible.Internationalisation involves customising marketing strategies for differentregions of the world according to cultural, regional and national differences toserve specific target markets. In order to standardise the marketing mix, thestrategy needs to grou pcountries by social, cultural, technological, politicaland economic similarities.Ohmae (1989) states that ``large companies must become more global if theyhope to compete. They must change from companies that treat their foreignoperations as secondary, to companies that view the entire world as a singleborderless market''. Levitt (1983) suggests that, as markets become increasinglysimilar and more global, the key to success lies in the ability to globalise.Czinkota and Ronnenken (1995) believe that multinational companies shouldhave to find out how they must adjust an entire marketing strategy, includinghow they sell and distribute, in order to fit in with new market demands.``Altering and adjusting the marketing mix determinants are essential and vitalto suit local tastes, meet special needs and consumers' non-identicalrequirements'' (Czinkota and Ronnenken, 1995).However, Taylor (1991) supports the view that companies should use bothinternationalisation and globalisation elements to create a competitive advantage:...it is important to heed the maxim ``think global, act local''. The firm must ensure that itsstructure fits in with its international environment, while at the same time, have the internalflexibility required to implement its strategic goal (Taylor, 1991).The debate between these two schools of thought is continuous and, as tradebarriers throughout the world diminish and we move towards a singleeconomy, more firms seem to be entering the international arena:Growing internationalisation of tastes and buying patterns has made the development ofglobal and regional brands more feasible (Doyle, 1994).As a result, organisations are experiencing a change in focus from developinginto a global company over time to being a ``born global''. Born globals operateon a worldwide scale from birth rather than developing with the business.The concept of ``think global, act local'' has become the business phrase ofthe twentieth century and increasingly topical when looking at the debatebetween internationalisation and globalisation. Crossing borders, bothphysically and electronically, is becoming increasingly vital for even thesmallest businesses to remain competitive.The marketing mixMcCarthy (1975) formulated the concept of the 4Ps ± product, price, promotion,and place marketing mix. For many years these have been used as the principal
McDonald's:``think global,act local''99foundation on which a marketing plan is based. However, with particularattention being paid to services marketing in recent years, theorists haveidentified additional variables which could be added to the 4Ps. Fifield andGilligan (1996) recognised the following variables as an integral part of themarketing mix ± process, physical, and people.It is these 7Ps that we will use in analysing the marketing mix ofMcDonald's:(1)Product± features, quality, quantity.(2)Place± location, number of outlets.(3)Price± strategy, determinants, levels.(4)Promotion± advertising, sales promotion, public relations.(5)People± quantity, quality, training, promotion.(6)Process± blueprinting, automation, control procedures.(7)Physical± cleanliness, deÂcor, ambience of the service.ProductOne of the aims of McDonald's is to create a standardised set of items that tastethe same whether in Singapore, Spain or South Africa. McDonald's learnedthat, although there are substantial cost savings through standardisation,being able to adapt to an environment ensures success. Therefore the conceptof ``think global, act local'' has been clearly adopted by McDonald's.Adaptation is required for many reasons including consumer tastes/preferences and laws/customs. There are many situations where McDonald'sadapted the product because of religious laws and customs in a country. Forexample, in Israel, after initial protests, Big Macs are served without cheese inseveral outlets, thereby permitting the separation of meat and dairy productsrequired of kosher restaurants. McDonald's restaurants in India serveVegetable McNuggets and a mutton-based Maharaja Mac (Big Mac). Suchinnovations are necessary in a country where Hindus do not eat beef, Muslimsdo not eat pork, and Jains (among others) do not eat meat of any type. InMalaysia and Singapore, McDonald's underwent rigorous inspections byMuslim clerics to ensure ritual cleanliness; the chain was rewarded with ahalal(``clean'', ``acceptable'') certificate, indicating the total absence of pork products.There are also many examples of how McDonald's adapted the originalmenu to meet customer needs/wants in different countries. In tropical markets,guava juice was added to the McDonald's menu. In Germany, beer is sold aswell as McCroissants. Chilled yogurt drinks are available in Turkey, espressoand cold pasta in Italy. Teriyaki burgers are sold in Japan, vegetarian burgersin The Netherlands. McSpaghetti has become increasingly popular in thePhilippines. McLaks (grilled salmon sandwich) are sold in Norway, McHuevo(poached egg hamburger) in Uruguay. In Thailand, McDonald's introduced theSamurai Pork Burger with sweet sauce. These are all examples of howMcDonald's has adapted its product offer in international environments.
BFJ103,2100Irrespective of variations and recent additions, the structure of theMcDonald's menu remains essentially uniform the world over: main courseburger/sandwich, fries, and a drink ± overwhelmingly Coca-Cola. The keystoneof this winning combination is not, as most observers might assume, the BigMac or even the generic hamburger, it is the fries. The main course may varywidely, but the signature innovation of McDonald's ± thin, elongated fries cutfrom russet potatoes ± is ever-present and consumed world-wide by allMcDonald's customers, irrespective of their religious beliefs or political stance!It is understandable, therefore, why McDonald's has made such a fetish of itsdeep-fried potatoes and continues to work on improving the delivery of thisindustry winner.QualityQuality Assurance teams are responsible for monitoring the quality ofMcDonald's food products, both in the restaurants and at suppliers at all stagesof production. This involves a continuous round of visits, inspections andaudits, announced and unannounced, to all production facilities, distributioncentres and restaurants. Visits even extend to secondary suppliers such asfarms, to monitor crops growing in the field or to inspect seeds prior toplanting.Every supplier manufactures to very tight specifications, which detail theexact quantity and quality of raw ingredients and the dimensions of thefinished product. The specifications also stipulate extensive checkingprocedures. In addition to studying all production run records which are sent toMcDonald's by suppliers, McDonald's regularly take samples of stock atdistribution centres to ensure that they conform to specifications.The quality controls continue when the food arrives at restaurants. Nodelivery is accepted until a series of quality and safety checks is completed. Allrestaurant staff receive comprehensive training in food safety and hygiene andfood preparation procedures. This is a global practice and is one of thedistinguishing features of McDonald's as a fast-food restaurant.PlaceMcDonald's currently has over 24,500 restaurants in 116 countries across theworld (see Table I).McDonald's continues to focus on managing capital outlays more effectivelythrough prudent and strategic expansion.
พี่น้อง backgroundTwo ของ IntroductionMcDonald ริชาร์ดและมอริแมคโดนัลด์ก่อตั้งแมคโดนัลด์ใน 1937.The พี่น้องพัฒนาแปรรูป และเทคนิคการประกอบที่ร้านอาหาร tinydrive ในตะวันออกพาซาดีนา California.In 1954, Ray Kroc ขายเครื่องผสมนมปั่น เห็นโอกาสใน thismarket และเจรจาข้อเสนอแฟรนไชส์ให้สิทธิ franchiseMcDonald ในสหรัฐอเมริกาเขา นาย Kroc เสนอบริษัทอื่น ๆ แฟรนไชส์ขายอาหารและน้ำแข็ง creamfranchises สำหรับคุณ pto $50000 แฟรนไชส์แมคโดนัลด์สำหรับ $950 ที่ atime นาย Kroc ยังได้ค่าบริการของร้อยละ 1.9 ofsales ตน และราชวงศ์ของ 0.5 ร้อยละขายไป McDonaldbrothers พี่น้องแมคโดนัลด์ที่ขายสำหรับ 2.7 ล้านดอลลาร์ในกิจการระหว่างประเทศแรก 1961 .McDonald เป็นแคนาดา 1967 Shortlyafterwards จอร์จ Cohon ซื้อใบอนุญาตสำหรับแมคโดนัลด์ใน easternCanada เปิดร้านแรกของเขาในปี 2511 Cohon ไปในการสร้างร้าน 640, networkof การทำแมคโดนัลด์ในแคนาดาที่ร่ำรวยมากขึ้นกว่าของอื่น ๆ แมคโดนัลด์นอกสหรัฐอเมริกา ความสำเร็จที่นานาชาติของแมคโดนัลด์ได้ offranchising ใช้ โดยแฟรนไชส์เพื่อประชาชน ofwhat จัดส่งและการตีความอาจจะเห็นเป็นวัฒนธรรมสหรัฐอเมริกาแบรนด์ที่มีแปลโดยอัตโนมัติคน thelocal ทั้งผลิตภัณฑ์และบริการ แมคโดนัลด์ในขณะนี้มีกว่า 20000 คนในกว่า 100 ประเทศ andaround ร้อยละ 80 มีแฟรนไชส์ นโบายและ internationalisationGlobalisation เกี่ยวข้องกับการพัฒนาตลาดว่า isa โลกหนึ่งเอนทิตี ตลาดผลิตภัณฑ์แบบเดียวกับทุกวิธี Globalised องค์กรจ้างผลิตภัณฑ์แบบ promotionalcampaigns ราคา และช่องทางการจำหน่ายในตลาดทั้งหมด ชื่อแบรนด์ ปัญหาปัจจุบันและการเก็บถาวรข้อความทั้งหมดของสมุดรายวันนี้คือ ว่างของ athttp://www.emerald-library.com/ftBFJ103,298product characteristics, packaging and labelling are the easiest of themarketing mix variables to standardise.Globalisation of markets requires total commitment to internationalmarketing; it embodies the view that the world is a single market. For example,Nike trainers, Levi's' jeans and Coca-Cola have all crossed global borders;however, even there, some tailoring of the message is visible.Internationalisation involves customising marketing strategies for differentregions of the world according to cultural, regional and national differences toserve specific target markets. In order to standardise the marketing mix, thestrategy needs to grou pcountries by social, cultural, technological, politicaland economic similarities.Ohmae (1989) states that ``large companies must become more global if theyhope to compete. They must change from companies that treat their foreignoperations as secondary, to companies that view the entire world as a singleborderless market''. Levitt (1983) suggests that, as markets become increasinglysimilar and more global, the key to success lies in the ability to globalise.Czinkota and Ronnenken (1995) believe that multinational companies shouldhave to find out how they must adjust an entire marketing strategy, includinghow they sell and distribute, in order to fit in with new market demands.``Altering and adjusting the marketing mix determinants are essential and vitalto suit local tastes, meet special needs and consumers' non-identicalrequirements'' (Czinkota and Ronnenken, 1995).However, Taylor (1991) supports the view that companies should use bothinternationalisation and globalisation elements to create a competitive advantage:...it is important to heed the maxim ``think global, act local''. The firm must ensure that itsstructure fits in with its international environment, while at the same time, have the internalflexibility required to implement its strategic goal (Taylor, 1991).The debate between these two schools of thought is continuous and, as tradebarriers throughout the world diminish and we move towards a singleeconomy, more firms seem to be entering the international arena:Growing internationalisation of tastes and buying patterns has made the development ofglobal and regional brands more feasible (Doyle, 1994).As a result, organisations are experiencing a change in focus from developinginto a global company over time to being a ``born global''. Born globals operateon a worldwide scale from birth rather than developing with the business.The concept of ``think global, act local'' has become the business phrase ofthe twentieth century and increasingly topical when looking at the debatebetween internationalisation and globalisation. Crossing borders, bothphysically and electronically, is becoming increasingly vital for even thesmallest businesses to remain competitive.The marketing mixMcCarthy (1975) formulated the concept of the 4Ps ± product, price, promotion,and place marketing mix. For many years these have been used as the principalMcDonald's:``think global,act local''99foundation on which a marketing plan is based. However, with particularattention being paid to services marketing in recent years, theorists haveidentified additional variables which could be added to the 4Ps. Fifield andGilligan (1996) recognised the following variables as an integral part of themarketing mix ± process, physical, and people.It is these 7Ps that we will use in analysing the marketing mix ofMcDonald's:(1)Product± features, quality, quantity.(2)Place± location, number of outlets.(3)Price± strategy, determinants, levels.(4)Promotion± advertising, sales promotion, public relations.(5)People± quantity, quality, training, promotion.(6)Process± blueprinting, automation, control procedures.(7)Physical± cleanliness, deÂcor, ambience of the service.ProductOne of the aims of McDonald's is to create a standardised set of items that tastethe same whether in Singapore, Spain or South Africa. McDonald's learnedthat, although there are substantial cost savings through standardisation,being able to adapt to an environment ensures success. Therefore the conceptof ``think global, act local'' has been clearly adopted by McDonald's.Adaptation is required for many reasons including consumer tastes/preferences and laws/customs. There are many situations where McDonald'sadapted the product because of religious laws and customs in a country. Forexample, in Israel, after initial protests, Big Macs are served without cheese inseveral outlets, thereby permitting the separation of meat and dairy productsrequired of kosher restaurants. McDonald's restaurants in India serveVegetable McNuggets and a mutton-based Maharaja Mac (Big Mac). Suchinnovations are necessary in a country where Hindus do not eat beef, Muslimsdo not eat pork, and Jains (among others) do not eat meat of any type. InMalaysia and Singapore, McDonald's underwent rigorous inspections byMuslim clerics to ensure ritual cleanliness; the chain was rewarded with ahalal(``clean'', ``acceptable'') certificate, indicating the total absence of pork products.There are also many examples of how McDonald's adapted the originalmenu to meet customer needs/wants in different countries. In tropical markets,guava juice was added to the McDonald's menu. In Germany, beer is sold aswell as McCroissants. Chilled yogurt drinks are available in Turkey, espressoand cold pasta in Italy. Teriyaki burgers are sold in Japan, vegetarian burgersin The Netherlands. McSpaghetti has become increasingly popular in thePhilippines. McLaks (grilled salmon sandwich) are sold in Norway, McHuevo(poached egg hamburger) in Uruguay. In Thailand, McDonald's introduced theSamurai Pork Burger with sweet sauce. These are all examples of howMcDonald's has adapted its product offer in international environments.BFJ103,2100Irrespective of variations and recent additions, the structure of theMcDonald's menu remains essentially uniform the world over: main courseburger/sandwich, fries, and a drink ± overwhelmingly Coca-Cola. The keystoneof this winning combination is not, as most observers might assume, the BigMac or even the generic hamburger, it is the fries. The main course may varywidely, but the signature innovation of McDonald's ± thin, elongated fries cutfrom russet potatoes ± is ever-present and consumed world-wide by allMcDonald's customers, irrespective of their religious beliefs or political stance!It is understandable, therefore, why McDonald's has made such a fetish of itsdeep-fried potatoes and continues to work on improving the delivery of thisindustry winner.QualityQuality Assurance teams are responsible for monitoring the quality ofMcDonald's food products, both in the restaurants and at suppliers at all stagesof production. This involves a continuous round of visits, inspections andaudits, announced and unannounced, to all production facilities, distributioncentres and restaurants. Visits even extend to secondary suppliers such asfarms, to monitor crops growing in the field or to inspect seeds prior toplanting.Every supplier manufactures to very tight specifications, which detail theexact quantity and quality of raw ingredients and the dimensions of thefinished product. The specifications also stipulate extensive checkingprocedures. In addition to studying all production run records which are sent toMcDonald's by suppliers, McDonald's regularly take samples of stock atdistribution centres to ensure that they conform to specifications.The quality controls continue when the food arrives at restaurants. Nodelivery is accepted until a series of quality and safety checks is completed. Allrestaurant staff receive comprehensive training in food safety and hygiene andfood preparation procedures. This is a global practice and is one of thedistinguishing features of McDonald's as a fast-food restaurant.PlaceMcDonald's currently has over 24,500 restaurants in 116 countries across theworld (see Table I).McDonald's continues to focus on managing capital outlays more effectivelythrough prudent and strategic expansion.
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