Mcdonald’s

Case 1-2

Question 1

There is an apparent trend that the popularity of American-style fast food like hamburgers, fries, and soft drink are growing around the world. This supports Levitt’s view of the global village. Not only is the demand growing but the restaurants themselves are offering the consumers a chance to experience for themselves a fast food experience. In order for the business to succeed they had also adapted their menu items to the customs and tastes of individual countries for example in the middle east McDonald’s does not offer any products with pork in it they either substitute it with beef or chicken. McDonald’s is a great example of “global localization”. In other words McDonald’s is thinking globally and acting locally.

Another thing that Macdonald’s have adjusted is the price which is a major factor to why the products are being sold. “The average price of a Big Mac in the United States is $3.54. By contrast, in China, Big Macs sell for the equivalent of $1.83”

Question 2

Regardless of any concerns by governments and citizens in some countries regarding “cultural imperialism,” well- known band names like McDonald’s pr any other major franchise are by and large welcome. Usually such business supply both much-needed jobs and employee training. On the other hand this has had a negative effect on other economies; especially headquarter countries of these franchises. “…the transfer of jobs overseas came to be seen by non-economists as a major factor in accounting for the weak job market of 2002 and 2003” (Mankiw & Swagel, 2006).

One of the strategies that McDonalds follow is to earn the support of local authorities and local population. This is achieved by working with local agriculture producers to provide the local supply of beef, potatoes, and dairy products.

Finally due to the changing lifestyles around the world, more people are accepting and embracing the whole concept of fast food.

Question 3

Over the years McDonalds spent a...