McDonalds Franchise Business in Cambodia and Bolivia

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Introduction: McDonalds
McDonalds is a fast food company that was founded in 1940 in San Bernardino in United
States. It is the world’s most successful fast food company operating in over 120 countries
around the world. Founded by two brothers Maurice and Richard McDonald, it was initially
christened as a hamburger business only selling in stands but later converted into a franchise.
Later in 1955, the two brothers joined hands with businessman Ray Kroc as the franchise agent
for expansion purposes. Later Kroc bought the company from the two brothers at $2.7 million. It
had its initial headquarters at Oak Brook, Illinois but in 2018, it moved its headquarters to
Chicago (Al Muala, 2018). Its numbers are impressive. It’s the largest fast food franchise by
revenue with 37,855 outlets by the end of 2018. McDonalds serves more than 69 million
customers daily and is known for its tasty hamburgers, French fries and cheeseburgers. Chicken
products are also very popular in these restaurants but due to the changing consumer tastes, the
restaurant has introduced menus added with salads, fruit, smoothies and fish. The revenues come
from rent, royalties, sales from the restaurants operated by the company and fees paid to the
franchises (Bareša, Ivanović, and Bogdan, 2017). It is among the world’s largest employers in
the world with over 1.7 million employees. McDonalds wants to start its franchise business in
Macedonia and Cambodia. Here are the demographics of the two countries;
b) One product the Restaurant intends to introduce in the two countries
As a fast food restaurant with reputable attributes, McDonalds want to introduce the
hamburgers to the markets. Its best seller is the cheese hamburger which has had a lot of success

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in international markets. The cheeseburger is the best seller since it has its own taste different
from the usual burgers in other restaurant. The burger will cost an average of $4 depending on
the size and flavor. There are different sized of the burgers and are priced differently. The
product has had huge success especially when there is an introduction of the franchise in a
specific country. They are the best sellers in many countries followed by the restaurants Chicken
Nuggets (Devine, et al, 2018). The background of the product is a bun or bread cut into two then
meat or cheese sandwich is placed in the middle. It is then put in an oven to make it among the
best. The hamburgers have the following characteristics; seasoned with pepper and salt only,
uses the 80/20 ground chunk to make, getting the right temperature, use of cast iron, canola oil
and high heat temperatures. The cheese is then added to the mix then melted under the
temperatures. Grill the final product. A typical McDonald burger contains about 4 ounces of
meat. It is about 4 inches in diameter and three-quarter inches in thickness. They are grilled
either directly or indirectly under heat (Healey, et al, 2017).
c) Background for Cambodia
Cambodia is a country located in South East Asia peninsula. It is 181,035 sq. kilometers
in its total geographical area and borders Thailand and Vietnam. It has a population of 16
million. Its capital city is Phnom Penh. It is also a monarch with the head of Royal Throne
council acting as the head of state and the prime minister acting as the head of government. Hun
Sen, is the current prime minister one of the longest serving leaders in the world ruling
Cambodia since 1985 (Hovhannisyan, and Keller,2015). Buddhism is the main religion with
98% of the population prophesying the faith. There are over 1000 temples in major cities. In
Cambodia, the ease of doing business as reported in many international firms is one of the