Analyzing McDonald's Marketing Strategies in a Globalized UK Market

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POSITIVE IMPACTS OF GLOBALISATION ON MARKETING FUNCTIONS: A CASE
STUDY OF McDONALD’S
Name of the Student:
Name of the University:
Author’s Note:

POSITIVE IMPACTS OF GLOBALISATION ON MARKETING FUNCTIONS
Table of Contents
Chapter 1: Introduction....................................................................................................................4
1.1 Research Proposal..................................................................................................................4
(i) Research Project Description..............................................................................................4
(ii) Research Aim and Objectives............................................................................................4
(iii) Reasons for choosing this Research Project.....................................................................5
(iv) Activities and Timescales.................................................................................................6
Chapter 2: Literature Review...........................................................................................................8
2.1 Introduction............................................................................................................................8
2.2 Evaluation of the Positive Impacts of Globalisation.............................................................8
2.3 Factors to be considered during Globalisation of the Food Retail Industry........................10
2.4 Evaluation of the Risks associated with Globalisation of the Food Retail Industry...........13
2.5 Conclusion...........................................................................................................................15
Chapter 3: Methodology................................................................................................................16
3.1 Research Approach..............................................................................................................16
3.2 Methodologies.....................................................................................................................16
Chapter 4: Data Collection and Analysis.......................................................................................18
4.1 Quantitative Data Collection...............................................................................................18
4.2 Qualitative Data Collection.....................................................................................................27
4.3 Data Analysis.......................................................................................................................31
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POSITIVE IMPACTS OF GLOBALISATION ON MARKETING FUNCTIONS
Chapter 5: Conclusions and Recommendations............................................................................34
5.1 Conclusion...........................................................................................................................34
5.2 Recommendations................................................................................................................34
Chapter 6: Personal Reflective Statement.....................................................................................36
6.1 Reflect on Research Method................................................................................................36
6.2 Alternative Methodology.....................................................................................................36
6.3 Future Scope........................................................................................................................37
References......................................................................................................................................38
Appendix........................................................................................................................................41
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Chapter 1: Introduction
1.1 Research Proposal
(i) Research Project Description
In the modern business environment, the business organisations are forced to adjust their
business strategies in order to improve their business success. However, it has been seen that
globalisation of the UK market has multidirectional effects, and it can leave both positive and
negative impacts on the business functions of an organisation. Therefore, in order to mitigate the
negative impacts and utilise the positive impacts, the business organisations have to identify the
various factors and risks that arises due to globalisation. The organisation selected for this
research is McDonald's. The reason that McDonald's has been selected is due to its presence in
the UK and international market as a food retail organisation (www.mcdonalds.com, 2019). As
McDonald's is a globalised organisation, the impacts of globalisation will be most prominent in
it. This research will primarily focus on the positive effects of globalisation of the UK market on
the marketing function of McDonalds, as well as the risks that are associated with globalisation.
(ii) Research Aim and Objectives
Research Aim:
To investigate and to identify the influence of positive economic, cultural and ethical impact of
globalisation on marketing functions in McDonald's
Research Objectives:
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POSITIVE IMPACTS OF GLOBALISATION ON MARKETING FUNCTIONS
 To evaluate the positive impacts of globalisation on marketing functions in McDonald's
as a part of the food retail industry in the UK
 To identify the factors that need to be considered during globalisation of McDonald's as a
part of the food retail industry in the UK
 To assess the risks associated with the globalisation of McDonald's as a part of the food
retail industry in the UK
Research Questions:
The research questions can be formulated as follows:
 What are the positive impacts of globalisation on marketing functions in McDonalds in
the UK?
 What are the factors that need to be considered during globalisation of McDonalds in the
UK?
 What are the risks that are associated with the globalisation of McDonalds in the UK?
(iii) Reasons for choosing this Research Project
As the globalisation has reduced the trade barriers across the various countries, the business
organisations have also been affected by it. This has presented an opportunity in front of the
business organisations, especially the food retail industry, to expand their customer base in new
societies and increase their sales figure. However, in order to utilise the advantages of
globalisation, the food retail chains like McDonald's have to adjust their marketing strategies in
order to approach the new customers and enhance their profitability. I have chosen this research
topic, since I aspire to be a business manager in future, and I believe that this project will help
me to understand the various functionalities of the marketing function of a business organisation,
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POSITIVE IMPACTS OF GLOBALISATION ON MARKETING FUNCTIONS
enhancing my managerial skills. Moreover, as I have personal interests in market research, I
believe that this research project will allow me to understand the effects of various economic,
cultural and ethical impacts of globalisation on the marketing function of food retail
organisations like McDonald's, as well as help me to realise the significance of market research
in the formulation of marketing strategy for an organisation.
(iv) Activities and Timescales
The activities that will be carried out have been represented in the following Gantt Chart along
with the timescale for those activities:
Activities Timescale
Week
1
Week
2
Week
3
Week
4
Week
5
Week
6
Week
7
Week
8
Development and
Analysis of Research
ideas
Writing the Literature
Review
Arranging for Data
Collection
Research of Secondary
Data
Research and
Numerical analysis of
Primary Data
Tutor Meetings
Production of Final
Outcome
Evaluation
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POSITIVE IMPACTS OF GLOBALISATION ON MARKETING FUNCTIONS
Writing the Final
Report
Submission of Final
Report
Figure 1: Gantt Chart of Research Timeline
(Source: Created by Learner)
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POSITIVE IMPACTS OF GLOBALISATION ON MARKETING FUNCTIONS
Chapter 2: Literature Review
2.1 Introduction
Globalisation is regarded as one of the main aspects of large business organisations throughout
the world that helps in making sure that presence is guaranteed in different regions. Globalisation
make sure that all organisations and effectively functioning in different markets so that desirable
amount of profit can be reached as a part of the business objectives. To make sure that
globalisation activities are effectively influencing the interests of any organization, proper
Strategies for policies must be put together in place. The following literature review will take
into account different relevant literatures based on the main topic of globalisation and its positive
impacts. The aim in this case is to understand what benefits can be harvested by McDonalds if
they are successful in globalising effectively in different markets across the world. The literature
review in this case will be divided into three different parts of relevance that will help to
understand the concepts in a better way.
2.2 Evaluation of the Positive Impacts of Globalisation
Consumers are regarded as one of the most important stakeholders in any business involved in
any industry. It can be said that the consumer demand for responsible for most of the production
processes. The main aim in this case to make sure that the products or services are aligned with
the consumer demand so that people consume more and the organisation can obtain desirable
amount of revenues. In the opinion of Dölz (2016), if an organised and global successfully, it
will gather the prospective of consumers from around the world and this will help to develop the
production activities. It is obvious that the marketing activities are interrelated with production
and if the production department is able to supply with desirable amount and types of goods or
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POSITIVE IMPACTS OF GLOBALISATION ON MARKETING FUNCTIONS
services, then the outcomes of marketing activities are also expected to be positive. In the words
of Zajda (2015) globalisation provides opportunity with adopting different techniques as far as
marketing activities are concerned. In this case it can be said that if different market situations
are presented in front of a fast food firm, then the marketing team can face several challenges
and opportunities. As per the opinion of Rust (2016), adverse situations in marketing activities
can help in developing skills. However, it can be also said that adverse situation in marketing due
to globalisation can and be effective in introducing setbacks as far as organisational objectives
are concerned. Globalisation can also be effective in helping organisations such as McDonalds to
understand the different needs as far as consumer markets are concerned. This can be effective in
making sure that organisations understand their capabilities of serving different regions.
However, as per the opinion of Lee (2015), this constant flow of data can also be the cause of
confusion among internal environmental factors. This will result in conflicting objectives and
conflicting approaches to the final outcome.
Globalisation can positively impact fast food chains across the world by providing with the
opportunity to make sure that all organisational resources are well informed and well educated as
far as activities are concerned. Different markets in different countries can pose different
challenges to the human resources. In the opinion of Tan (2015), if human resource departments
are able to successfully mitigate the issues and serve effectively, then there will be situations
where knowledge regarding skills can be learned. As per the opinion of Diallo (2016), it will
help in developing the organisational capability is to serve a larger amount of consumer market.
In Fast Food industries, the general goal is to make sure that consumers are satisfied and the
quality of the food is well maintained. As far as food is concerned, different markets have their
own preferences and therefore, fast food organisations will have to produce a variety of products
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POSITIVE IMPACTS OF GLOBALISATION ON MARKETING FUNCTIONS
or services to maintain existence in different regions at the same time. However in the words of
Eppinger (2016), globalisation can also have negative impacts as there will be different
objectives SRS producing goods or services are constant and this will require different types and
amount of resources. It can be said that, globalisation provides organisations with the perspective
from different markets and it prepares firms to deal different adverse situations as far as
competitions are concerned. However in the opinion of Godfrey (2016), any rational organisation
will look forward to make sure that they avoid competition as much as possible due to the fact
that addressing such aspects can require extra amount of capital and resources. It can be said that
large business organisations will come across situations where facing competition is inevitable.
As per the opinion of Mazodier (2015), business competition is a major aspects in large
Industries where the opportunities are very regular. Therefore it must be understood that
globalisation can provide situations where competition must be addressed as soon as possible.
This is due to the fact that there are lot of expenses covered while making entry into a new
market and if competitive aspects provide barriers in obtaining success, then it must be addressed
quickly and effectively.
As per the opinion of Macneill (2015), there will be situations when organisational objectives
can be hard to reach due to the poor economic conditions in some countries. However, if there
are situations where organisation are involved in more than a few countries, then the losses
incurred in some countries can be overloaded by the profits gained in other countries. As per the
opinion of Shizha (2016), globalisation can be very effective in the case and provide
organisations with the opportunity to develop.
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POSITIVE IMPACTS OF GLOBALISATION ON MARKETING FUNCTIONS
2.3 Factors to be considered during Globalisation of the Food Retail Industry
According to Miljkovic, et al., (2015), retailer that have been soaking the local market,
globalisation gives them access to new market and customers helping the food retail company to
earn new capital. There are three factors that must be considered during globalisation of the food
retail industry.
Branding and marketing
According to Dinnie, (2015), branding and marketing are two essential components to be
considered while globalisation. With the change in the market the branding and marketing
processes shall change accordingly in order to popularise the brand in the foreign market.
Globalisation brings in changes in the marketing and branding plans of the company in order to
be accepted and spread over the international market. The companies with a universal offering
often uses the global marketing method which gives a global message about the brand. However,
according to Holt (2016), the branding and marketing process must have a particular element
which should be common for every market.
As opined by Skaczkowski (2016), McDonald’s have adapted the online branding of their
products in UK. The UK economy is characterized by digitization as a result of which
McDonald’s have taken the online channel for branding. McDonald’s keeps on changing the
marketing strategy in order to enhance the brand in other countries.
Product range
As opined by Palin and Reunamaki (2018), it is not compulsory that the existing product range
of a company will be accepted in every part of the world. Globalisation brings a change in the
product range of a country. The company must introduce new products or services which will
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POSITIVE IMPACTS OF GLOBALISATION ON MARKETING FUNCTIONS
gain popularity in markets of other countries. However, according to Johne(2018), the product
offered by a brand may not be accepted in a market which may hurt traditional or cultural
sentiments of the customers. The mass distress shall lead to a huge loss for the company. The
company must have different product range for different countries as different countries have
their own distinct cultural and climatic condition.
For instance, McDonald’s UK launched three premium burgers namely The BBQ, The Classic
and The spicy which had high demand in the market. McDonald’s have different set of menue
and products in different countries which makes them more liked by the people.
Opportunities
According to Schierup (2015), the product opportunity in the foreign market must be considered
before spreading the business in a foreign land. The company must analyse the future possibility
of the product offered in the foreign market. Based on the opportunity, some methods can be
innovated and adapted for a better acceptance of the product. But according to Renzaho(2016),
the wrong analysis of the market opportunities of the foreign market can lead to the downfall of
the company.
From the research works of Crawford(2015) , it is found that UK is a favoured target market for
most of the retail companies in America. Due to which McDonald’s have around 1,274 outlets in
and around United Kingdom, the main reason being the similar culture and similar economic and
market opportunities. Comparatively, KFC has not been as popular as McDonald’s in the UK
market due to their lack of analysing the market opportunity of their product. From the research
works of Crawford(2015), there are around 284 KFC outlets in UK.
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