1. McDonald’s, a global
company adopting a
glocal strategy
How McDonald’s succeded to conciliate
internationalization and localisation ?
IPM Oral Presentation
Charlotte ROSE Eloïse PETIT Edouard HURTREZ

2. INTRODUCTION

3. INTRODUCTION
Richard McDonald Maurice McDonald

4. INTRODUCTION

5. INTRODUCTION
McDonald’s market shares
Source: Euromonitor 2010

6. AGENDA
I. MCDONALD’S : A GLOBAL & LOCAL COMPANY
A. Globalization and Glocalization
B. McDonald’s Implantation Worldwide
C. McDonald’s: a GLOCAL Company
II. MCDONALD’S GLOBAL STRATEGY
A. Global Facts and Standards
B. Global Operating Strategy
C. Global Products Strategy
III. REASONS FOR LOCAL STRATEGY
A. Satisfaction of Local Habits
B. Price Adaptation
C. Harmonized with Local Government Law

7. I. A GLOBAL & LOCAL
COMPANY
Globalization McDonald’s: McDonald’s: a
Implantation in GloCal
& Glocalization the World Company

8. globalization I. A GLOBAL & LOCAL COMPANY
« The growing interdependance of
countries worldwide through the
increasing volume and variety of
cross-border transaction in goods
and services and of international
capital flows, throught the more
rapid and widespread diffusion of
technology »
source: IMF
Globalization McDonald’s: McDonald’s:
Implantation in the a
& Glocalization World GloCal Company

9. glocalization I. A GLOBAL & LOCAL COMPANY
« A term that was invented to emphasize
that the globalization of a product is more
likely to succeed when the product or
service is adapted specifically to each
locality or culture in which it is marketed. »
source: whatis.com
Globalization McDonald’s: McDonald’s:
Implantation in the a
& Glocalization World GloCal Company

10. I. A GLOBAL & LOCAL COMPANY
source: www.bme.eu.com
www.nationmaster.com
Globalization McDonald’s: McDonald’s:
Implantation in a
& Glocalization the World GloCal Company

11. I. A GLOBAL & LOCAL COMPANY
IN 2011: EMPLOYEES :465,000
NET INCOME: 27 BILLION $
If McDonald’s was a country by If McDonald’s was a country by
population it would be n 173 GDP it would be n 93
source: www.wikipedia.com
Globalization McDonald’s: McDonald’s:
Implantation in a
& Glocalization the World GloCal Company

12. I. A GLOBAL & LOCAL COMPANY
Globalization McDonald’s: McDonald’s: a
Implantation in the GloCal
& Glocalization World Company

13. II. MCDONALD’S
GLOBAL STRATEGY
Global Global
Global Facts and
Operating Products
Standards
Strategy Strategy

14. II. MCDONALD’S GLOBAL STRATEGY
• 4th most valuable brand in the world
• Everyday 0,9% of the world population visits a McDonald’s
• 1/3 of all cows in the US
• McDonald’s recruitment
• Asiatic expansion
Global Global
Global Facts and
Operating Products
Standards
Strategy Strategy

15. II. MCDONALD’S GLOBAL STRATEGY
ISO 9001 : 2000 = HACCP, Codex Aliment Arius
Certifications (World Health Organization)
Allocating environmental affairs officers worldwide
Community support
Global Global
Global Facts and
Operating Products
Standards
Strategy Strategy

16. II. MCDONALD’S GLOBAL STRATEGY
DISTRIBUTION CHANNEL
• Global logistics operations
• Local producers (quality and freshness products, delivery time)
• Re-location and closure of underperforming restaurants
DIRECT SALES
• Restaurants located in strategic areas
MARKET COVERAGE
• Covering all central districts
• Restaurants located outside of the centers
Global Global
Global Facts and
Operating Products
Standards
Strategy Strategy

17. II. MCDONALD’S GLOBAL STRATEGY
Kids 3-7 years old
Teens
Working Adults
tourists
Global Global
Global Facts and
Targeting Operating Products
Standards
Strategy Strategy
Positioning

18. II. MCDONALD’S GLOBAL STRATEGY
Health Campaign
Teenagers  Mc Café
Kids  Mascot
Family  Slogan
Global Global
Global Facts and
Targeting Operating Products
Standards
Strategy Strategy
Positioning

19. II. MCDONALD’S GLOBAL STRATEGY
McDonald’s localize its strategies
2009: the biggest advertising global campaign
World children’s day
Sponsorship in various events
80-20 menu boards
Toys with every kids meal
Personnal selling
McDonald’s Monopoly contest
Global Global
Global Facts and
Operating Products
Standards
Strategy Strategy

20. II. MCDONALD’S GLOBAL STRATEGY
VARIATION:
• A wide variety of products
INNOVATION:
• Nutritional value
• Unique food
DIFFERENTIATION:
• Investing in new sector
• Focusing on kid’s market
• Local collaboration
PRODUCT ELIMINATION (COMPETITION):
• In France : Big Mac in opposite of local food or local food chains
Global Global
Global Facts and
Operating Products
Standards
Strategy Strategy

21. III. REASONS FOR
LOCAL STRATEGY
Local
Satisfaction of Price
Government
Local Habits Adaptation
Law

22. III. REASONS FOR LOCAL STRATEGY
- Tastes
In Canada In France
Local
Satisfaction of Price
Government
Local Habits Adaptation
Law

23. III. REASONS FOR LOCAL STRATEGY
In India In France and Canada
Local
Satisfaction of Price
Government
Local Habits Adaptation
Law

24. III. REASONS FOR LOCAL STRATEGY
The Arch Deluxe
Mc Gratin croquette
Mc Hot Dog
Local
Satisfaction of Price
Government
Local Habits Adaptation
Law

25. III. REASONS FOR LOCAL STRATEGY
- Religion
• Special dishes and publicities
to celebrate local events
• Separation between male and female
Local
Satisfaction of Price
Government
Local Habits Adaptation
Law

26. III. REASONS FOR LOCAL STRATEGY
More expensive: More affordable:
1. Switzerland 6.81 $ 1. India 1.62 $
2. Norway 6.79 $ 2. Ukraine 2.11 $
3. Sweden 5.91 $ 3. Hong Kong 2.12 $
4. Brazil 5.68 $ 4. Malaysia 2.34 $
5. Denmark 5.37$ 5. China 2.44 $
Source: The Economist (Big Mac Index of 2012)
Local
Satisfaction of Price
Government
Local Habits Adaptation
Law

27. III. REASONS FOR LOCAL STRATEGY
 Respect of prefectural orders
concerning the implementation
Size of restaurant
Respect of the law concerning
religion
Local
Satisfaction of Price
Government
Local Habits Adaptation
Law

28. CONCLUSION

29. THANK YOU FOR
LISTENING
Do You Have Questions ?
IPM Oral Presentation
Charlotte ROSE Eloïse PETIT Edouard HURTREZ