International Business Across Borders: A Case Study of McDonald's

1
INTERNATIONAL BUSINESS ACROSS BORDERS
McDonald’s
Student’s Name:
Institution:

2
Table of Contents
Executive Summary.........................................................................................................................3
Overview of the Company and Current Operating Position............................................................4
Review of Company’s International Competitive Strategy.............................................................4
Existing Organizational Design Structure and Control Issues........................................................7
Entry Strategies Used To Enter Other Regions/Countries..............................................................8
The Supply Chain Management....................................................................................................10
Management of Human Resources across Borders.......................................................................12
Identify Key Issues or Opportunities for Management.................................................................13
Recommendations to Management for Improvement...................................................................14
References......................................................................................................................................16

3
Executive Summary
McDonald’s is an organization that deals with fast food. The company has expanded to the
international market and this is attributed to its cost leadership, focus differentiated strategy and
intensive growth strategy. The organization structure of McDonald’s is arranged in a way that
establishes a pattern of interactions existing between different business sections with the aim of
supporting autonomy as well as organizational flexibility and has a global hierarchy,
performance-based divisions and function-based groups based on their significance. The strategy
of “think global and act local”, localization and franchise strategies gave the organization an
upper hand fast-food industry. They altered their promoting techniques to be in line with social,
economic and socio-political variables depending on the country they enter. The organization has
the biggest supply chain in the world for fast food. It serves approximately 68 million clients in a
day. It is spread on over 119 nations with over 36,000 outlets and is known for being an
extraordinary enterprise as a result of its quality, having the best diversifying opportunities and
makes progress toward high standards in order to maintain its consistency. The human resource
management adjusts to every specific circumstance based in the country, thus one could depict
the procedure as "glocal". The organization is every dedicated to staffing locally and promoting
from within the company in that local area. Irrespective of the success, the organization faces
stiff competition, resistant from franchises, nutrition issues in some of their products and use of
traditional advertising which have to be addressed.

4
Overview of the Company and Current Operating Position
McDonald's specializes in fast food having over 35,000 restaurants in over 100 countries
spread all over the globe. The organization has over 70 million customers that it serves in a day.
In the US, it has captured a large market share which is approximated to be 17% and followed by
Yum with a share of 11%. The menu presented by the organization is uniform; however, to
make sure it is in one line with the international market, the organization offer local food that is
relevant to the local customers. The main competitors are Wendy and Burger King (Jones, 2014).
The company value is espoused in the trademark (QSC&V) - Quality, Service,
Cleanliness, and Values with the application of “Plan to Win” strategy. These permit the
organization to deliver the greatest experience to the customers through the use of this strategic
initiative of planning to win in the competitive market (Jones, 2014).
Review of Company’s International Competitive Strategy
Cost leadership
Cost leadership is when the organization devices way of creating their product and selling
to the customers at a lower process different from those of competitors. It is hard to employ
methodology because the administration has to constantly reduce expense at each level to stay
focused (Agyapong and Boamah, 2013). The organization keeps running on low edges where it
is hard for the rivals to contend with a cost leadership promoting technique creating a
competitive advantage. McDonald's has a procedure of offering their products at low costs. They
have a division that enables it to select and prepare fresh food instead of prepared food (Marchi,
Maria, and Micelli, 2013). It likewise depends on a couple of supervisors. These reserve funds in
different procedures enable the organization to offer its sustenance at low costs. The
organization's, wide restaurant network, utilizes an unmistakable recruiting strategy for it to be a