How Mcdonald’s Expands from Local to Global

Many companies today become international in order to make profits, to grow and to get global market share and power. As a result of going global, organizations that traditionally focused on domestic markets are looking internationally. Among them, McDonald’s Corporation is one of the globalized and hence a successful and profitable company.

About McDonald’s and how it expands from local to global

McDonald’s is a world’s leading global food service retailer with more than 30,000 local restaurants serving 52 million people in more than 100 countries each day. It is also one of the world’s most well-known and holds a leading share in globally branded fast-food segment. (“McDonald’s Corporation,” n.d.).

The McDonald's concept was introduced in Southern California by Dick and Mac McDonald of Manchester, New Hampshire. It was modified and expanded by their business partner, Ray Kroc, of Oak Park, Illinois, who later bought out the business interests of the McDonald's brothers in the concept and went on to found McDonald's Corporation. From the very beginning, McDonald’s franchised to open the McDonald’s restaurants through 1955 to 1970 in United States, Canada, and Latin America. Starting from 1971, the first Asian’s McDonald’s was opened in Japan, and other franchised McDonald’s opened in Netherlands, Germany, Australia, United Kingdom, Singapore, Canada, Kuala Lumpur, Italy, Yugoslavia, Hungary, Soviet, China, Hong Kong, Taipei, South Korea, North Africa, South Africa, India, French, Bolivia, etc. (“History of McDonald’s,” n.d.). In each and every country they franchised, more than 75% of the management are locally hired. This practice has allowed McDonald’s to adapt to the local style, to the point where many would almost consider McDonald’s a local brand. The following table presents restaurant information by ownership type:

Restaurants at December 31 2005 2006 2007

Operated by franchisees(1) 18,324 18,685 20,505

Operated by the Company 8,173 8,166 6,906...