International Marketing Strategies: McDonald's Case Study Report

This report delves into the realm of international marketing, dissecting the core arguments within the global versus local debate to maximize profits and market share. It explores how the marketing mix elements – product, pricing, promotion, and distribution – are adapted across different international contexts, using McDonald's as a case study. The analysis extends to various international marketing approaches, contrasting centralized and decentralized strategies and their impact on organizational culture. Furthermore, the report compares home and international orientations, examining their roles in shaping a positive work environment and employee motivation. The assessment of competitors is also detailed, providing insights into market research, customer feedback, and online community analysis. The report concludes with a comprehensive overview of how companies should expand their business to develop both the economy and the organization, thereby meeting their goals and objectives effectively.

International Marketing

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
P5 Present an overview of the key arguments in the global vs local debate...............................4
P6 Investigate how the product, pricing, promotional and distribution approach differs in a
variety of international contexts..................................................................................................4
P7 Analyse the various international marketing approaches organisations can adopt................5
P8 Compare home and international orientation and ways to assess competitors outlining the
implications of each approach.....................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

EXECUTIVE SUMMARY
The project talks about international marketing in which contain it divided into 4
sections. In first section says abut an overview of key arguments in global vs local debate in
which it has been analysed that local and global debate helps in maximising a profit as well as
capturing ample amount of market share. In another section, 4p's incudes with different approach
by which it has been identified that McDonald's can survive at competitive market for longer
period of time and achieve organisation objectives by satisfying customers through providing
good quality of products at affordable price within a given time period. In next section covered
international approaches, it has been evaluated that by the help of centralised and decentralised
approach in McDonald's can influence positive working culture in an organisation. Lastly,
comparison between both home and international orientation, has been identified that both above
two marketing approaches plays their own role in own areas that will create positive environment
at working place of McDonald's and motivates employees to perform their activities in an
effective way.
P5 Present an overview of the key arguments in the global vs local debate.
Now a days both large size or small size companies main motive is to hire or attract
highly talented people by which company can operate their function effectively and expand the
business at global level (Akaka, Vargo and Lusch, 2013)
Global marketing is local in disguise:
when any company moves towards foreign market then they face various problems i.e.,
languages, culture and many more. So, it is necessary for an organisation to analyse a whole
market environment as it helps them to operate their business effectively in order to attain more
profit in an effective manner. In context to McDonald's, before entering into the market they
analyse market situation and determine the taste and preferences of their local customers that will
aid them to fulfil their demand or requirement accordingly (Berthon and et.al ., 2012). Along
with this, after evaluation of global and local debate, it has been analysed that McDonald's
should opt global approaches. This is because it helps them to fulfil their goal i.e., expanding
business with the purpose of earning more money or profit. By the help of this, they can capture

a huge market share and sustain for longer period of time at competitive market place. It can be
done only if they should learn or know about the culture and languages of other country or
willingness to leas as this creates positive brand image at market and attract new more customers
and retain old customers for long time.
P6 Investigate how the product, pricing, promotional and distribution approach differs in a
variety of international contexts.
When the motive of company is to expand their business at global level then they should
opt marketing mix strategies in their organisation (Baack, Harris and Baack, 2012). The elements
of marketing mix of McDonald's are given as below:-
Product: When a company expanding their business into foreign market, it is necessary for them
to analyse various factors such as background of customers, religion, culture and so on. This is
because, all these aspects satisfied customers effectively by which company can run their
business in an appropriate way and easily survive at market. In context to McDonald's, this is
necessary for their manager to analyse the foreign market before launching or producing the
product as it helps them for determining a taste and preferences of customers. Along with this,
when McDonald's, expanding its business in Salisbury they prefer to use adapted approach by
which they influence government for adopting those policies which should be beneficial for
them.
Price: For every successful business the major reason behind their success is to provide good
quality of products at affordable price. In relation to McDonald's, they analyse their competitors
or substitutes products prices as this aids them to fix the best price by which both organisation
and customers can satisfies themselves (Cavusgil and et.al. 2014). Substitutes of McDonald's are
Burger King, Subway, KFC and so on. Furthermore, when McDonald's expanding their business
in Salisbury they their main motive is to attract large amount of customers by providing good
quality of products at affordable price and for this they opt standard approach for evaluating risk
factor.
Promotion: This is an very important element of marketing mix as this element helps companies
to promote their products and create awareness at market by customers can know about it and
change their buying decision. In these tool of marketing mix contains digital advertising, sales
promotion and so on. In relation to McDonald's, they opt social media tool as it is very easiest
ways to promote or provide information regarding their product. Also, they adopt standardised

approach for minimising risk and used various promotional strategies by which they can expand
their business in Salisbury.
Physical Distribution: The main motive of McDonald's is to satisfying customers by fulfilling
their demand and expectations through providing good quality of products on time. In addition to
this, they opt adapted approach as it will help them for expanding business in Salisbury because
this approach helps in influencing government for providing more benefits to companies for
better survival at competitive market ( Czinkota and Ronkainen, 2013). With the help of this
approach, McDonald's can control on cost of transportation and transfer products at specified
time period. The main objective of physical distribution is the sum of a company's warehouse
location decision, inventory control processes, order handling and transportation decisions. The
aim for an organisation to manage all these aspects so as to minimize ist total physical
distribution costs. For McDonald, it is important because with the help of it a company can vary
and is typically associated with the types of product and the necessity it has to customer
satisfaction.
P7 Analyse the various international marketing approaches organisations can adopt.
McDonald's opt two marketing approaches for expanding business and positively
influencing company working culture which are mentioned as below:-
Centralized Approach: This approach is suitable for McDonald's only when they sell
their product and services at across the world. Along with centralised approach contain both
advantage and disadvantage. Along with this, the advantage of this approach is to generate clear
chain of command as this will help their employees to perform their task and takes high decision
on time. Also, the manager of McDonald's adopted centralised approached for improving the
process of quality in their work. Whereas, major disadvantage of centralised approach which is
faced by McDonald's is that this is a time consuming process as that only person contain all
power and authorities by which company can delay in their work or not completed assigned task
on time.
Decentralized Approach: If manager of McDonald's opt this approach they should have
face advantage and disadvantage of this approach (Demangeot, Broderick and Craig, 2015). In
addition to decentralised approach, its advantage is to influence or encourage positively as it will
aid employees to give best performance. Also, employees can share their views and thoughts

with each other and generate more innovative ideas. Whereas the problem which is faced by
company is that lack of coordination between organisation as departments.
P8 Compare home and international orientation and ways to assess competitors outlining the
implications of each approach.
International orientation means it is a way through which local companies can interlinked
or makes connection with global companies and expand their businesses at global market.
Furthermore, both centralised and decentralised approached is included in this orientation as by
the help of centralised approach McDonald's can transfer their product and services from one
place to another place. Also, company can make chain command for taking effectively decision
in an appropriate manner. On the other hand decentralised approach helps in motivating
employees in order to meet organisational goals and objectives for future beneficial (Evers,
Andersson and Hannibal, 2012)
In home orientation, the role of centralised approach is to develop clear chain command
through which company can improves in-house working and improves sales accordingly. On the
other hand, role of decentralised approach is to encourage each and every individuals employees
through which they can make good relationship between each other and achieve target in an
effective way.
Comparison between home(domestic) and international orientation
Basis Domestic orientation International orientation
Meaning It refers to the marketing
within the geographical
boundaries of the the country.
It indicates to the activities of
production, promotion,
distribution, advertisement and
selling are extend over the
geographical limits of the
nation.
Area served Small area Large area
Business operations In a single nation In it, business operations are
conduct in more than one
country.
Capital requirement It required less capital to There are huge capital required

organise business operations.. to conduct activities of
business.
There are different steps which can be followed the management of McDonald to assess
its competitors like, they should do market research, Solicit customer feedback, check online
communities on social media or community forums so that they can have information about the
other products and services which are offered by their rivals. This help in assessing their
competitors in the market and provide information that which kind and quality of products are
provided in the market.
CONCLUSION
From the above mentioned report, it has been evaluated that, every company should
expand their business by which they can develop both economy and organisation in order to
meet their goals and objectives in an effective way.

REFERENCES
Books and Journals
Akaka, M.A., Vargo, S.L. and Lusch, R.F., 2013. The complexity of context: A service
ecosystems approach for international marketing. Journal of International
Marketing. 21(4). pp.1-20.
Baack, D.W., Harris, E.G. and Baack, D., 2012. International marketing (Vol. 3). Sage.
Berthon, P.R.,and et.al ., 2012. Marketing meets Web 2.0, social media, and creative consumers:
Implications for international marketing strategy. Business horizons. 55(3). pp.261-271.
Cavusgil, S.T., and et.al. 2014. International business. Pearson Australia.
Czinkota, M.R. and Ronkainen, I.A., 2013. International marketing. Cengage Learning.
Demangeot, C., Broderick, A.J. and Craig, C.S., 2015. Multicultural marketplaces: New territory
for international marketing and consumer research. International Marketing Review.
32(2). pp.118-140.
Evers, N., Andersson, S. and Hannibal, M., 2012. Stakeholders and marketing capabilities in
international new ventures: Evidence from Ireland, Sweden, and Denmark. Journal of
International Marketing. 20(4). pp.46-71.
Felzensztein, C., Stringer, C., Benson-Rea, M. and Freeman, S., 2014. International marketing
strategies in industrial clusters: Insights from the Southern Hemisphere. Journal of
Business Research. 67(5). pp.837-846.
Fletcher, R. and Crawford, H., 2013. International marketing: an Asia-Pacific perspective.
Pearson Higher Education AU.