Determining McDonald's Global Business Approach for Local Customers

This report examines McDonald's global business strategy, focusing on its ability to meet local customer demands across different markets. The research begins with an overview of globalization and its impact on businesses, particularly within the fast-food industry. It then delves into the background of McDonald's, highlighting its global presence and the importance of adapting to local preferences. The report outlines the research aim, objectives, and questions, setting the stage for a literature review that explores global business approaches and the significance of understanding local customer demands. The methodology section details the research philosophy, approach, data collection methods, and sampling techniques used. Following this, the report presents data analysis, research outcomes, and recommendations, culminating in a reflection on the research process and suggestions for alternative methodologies. The conclusion synthesizes the findings, emphasizing the importance of global business approaches in ensuring customer satisfaction and sustained success in international markets. References are included to support the research findings and analysis.

Research Project

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................1
Overview of Research ...........................................................................................................1
Background of Research.........................................................................................................1
Rational of Research...............................................................................................................2
Research Aim: .......................................................................................................................2
Research Objectives:..............................................................................................................3
Research questions: ...............................................................................................................3
CHAPTER 2: LITERATURE REVIEW.........................................................................................3
Concept of global business approach.....................................................................................3
The demand of local customers and its impact on company's growth...................................4
Global business approaches that help in meeting local customers demand...........................4
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................5
Research philosophy...............................................................................................................5
Research approaches..............................................................................................................5
Types of investigation............................................................................................................6
Data collection........................................................................................................................7
Sampling.................................................................................................................................7
Timeline..................................................................................................................................8
CHAPTER 4: DATA ANALYSIS .................................................................................................9
CHAPTER 5: RESEARCH OUTCOMES....................................................................................20
5.1 Conclusion......................................................................................................................20
5.2 Recommendation............................................................................................................21
CHAPTER 6: REFLECTION AND RECOMMENDATION.......................................................21
6.1 Reflection.......................................................................................................................21
6.2 Alternative research methodology..................................................................................22
CONCLUSION..............................................................................................................................22
REFERENCES..............................................................................................................................23

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Topic: To determine whether McDonald is meeting local customers’ demands through its global
business approach?
CHAPTER 1: INTRODUCTION
Overview of Research
Globalisation is defined as a process in which business start performing its operations at
international level with an aim to achieve success as well as growth. Mainly, it refers to the
procedures by which national and regional economies, culture and societies becomes integrated
by global network of trade, communication and transportation. With the use of this concept,
company as well as societies interact across the world. This provide future opportunities to
expanding their business at global level (Grant, 2016). One of the main benefit of this term is to
increase of trade around the world through which business organization easily enter into new
market and meet customers demand. Along with this, it is movement towards the economic,
financial, trade and communication as well. Generally, concept of globalisation provides
opportunities to business organization to established their competitive image by serving quality
products and services to large number of customers as per their needs and wants. For entering
into global market, company also use effective approaches related with global business such as
Ethnocentric, Poly-centric, Regio-centric and Geocentric approaches to meet local customers
demand at market place. This will directly contribute in enhancing the chances of attaining
success at international market. The main aim of using global business approaches is to full fill
local customers demand in order to increase their profitability level at market. It also provides
support to business organization to sustain in global market for longer period of time.
Background of Research
Every business organization wants to expand their operational activities at global level
with the aim of capturing larger marker share. In this, globalisation concept plays a significant
role as it provides interaction of different culture and economies. It helps in enhancing the
chances of attaining competitive advantage from its rivals. There are number of companies
which manage their business operations at international level with an aim to achieve competitive
advantage. But while expanding business at global level it is very essential for a company to
meet with the demand of customers. As with the expansion of organisational operations at
international level the competition also get increased which sometimes affect the sustainability of
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business. Therefore it is very essential for a company to improve their product as well as quality
of services according to the taste or need of local people. This can be done through analysing the
customers’ needs and wants before offering products at global level (De Mooij, 2018). This
support in identifying different methods that can be adopted by a company to offer product as per
the taste, preferences, demand, cultural and social norms which customers following. This help
company in achieving higher customer satisfaction.
In context of this, McDonald's is famous American fast food company has over 36000
stores in 119 countries and territories. It provides quality food services to large number of
customers with the aim of making their strong brand presence in customer’s mind. The main aim
of this company is to expand their business at global level in order to maximize their revenue and
establishing their competitive brand image. For attaining the same, company focus on their
quality products to inviting large number of customers in order to provide them better services
on the basis of their requirements. Apart from this, company also use global business approaches
at the time of expanding their operational activities at international level with the hope of
meeting local customers demand (Types of orientation in international business, 2018). In this
context, company use Ethnocentric, Poly-centric, Regio-centric and Geocentric approaches
which help them in meeting customers demand in order to make their brand image popular and
competitive as well.
Rational of Research
Research taken into consideration on “ weather McDonald's is meeting local
customers’ demands through its global business approach”. In this globalisation plays a vital
role in development as well as expansion of business operations at global level. In context of
this, the main reason behind this is enhancing as well as developing knowledge about global
business approaches which help in meeting local customers demand towards company products
and services. Apart from this, another reason behind carry out the research is to develop proper
theoretical framework that help investigator to analyse the effectiveness of global business
approach on meeting local customers’ demands in order to establish competitive brand image at
global market.
Research Aim:
The main aim of this research is “to identify whether McDonalds is meeting local
customers’ demands through its global business approach? A study on McDonald.”
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Research Objectives:
 To understand the concept of global business approach.
 To analyse the demand of local customers and its impact on company's growth.
 To identify how global business approach meets the demands of local customers
Research questions:
 What is the concept of global business approach?
 Describe the ways that help in analysing the local customer demand?
 How global business approach meet the demand of local customer?
CHAPTER 2: LITERATURE REVIEW
Concept of global business approach
According to Lii and Kuo, (2016), global business is refer to as an international trade in
which company operate their business across the world with the purpose of establishing
competitive image. In addition of this, a global business is an organization that serve their
facilities in different countries to increase their profitability. Mainly, it involves transfer of
goods, services, resources, capital and many more from one country to another. It also comprises
all commercial transactions that take place among two or more countries beyond their
boundaries. The main purpose of this type of business organization is to enhance their market
share to attain competitive advantage from its rivals. In context of McDonald's, company serve
their services in different countries for making customer base strong. For this company also
analysis market trends and customer’s preferences before delivering its products. It helps
business organization to enhance their market share and at the same time also capture customers
attention also. The main purpose of McDonald's is to meet local customers demand by
understanding their needs and wants in attaining their higher satisfaction level. For attaining the
same, company introduce quality products and services as per consumer’s requirements which
may help them in increasing strong base of customers and at the same time also build positive
brand image at market place. In addition of this, global business approaches help in determining
the long term goals and objectives of business organization at market through which company
operate their activities accordingly with the aim of improving their performance level.
On the basis of thoughts represented by another author named as Mujtaba, B., (2018) it
has been identified that global business approach refers to the strategy in which main focus of
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company is on exporting products as well as services at global market or brings different
resources and goods in their own country for domestic growth purpose. The concept is basically
used by both kind of business organisation that is small scale as well as large scale. In context of
small companies, they requires extra and effective resources from neighbour countries so that
they could develop effective product in own nation. On the other hand, the similar approach is
being used by large scale companies at the time of their international expansion as it helps
understanding international culture in more effective manner. For instance: Large scale company
like McDonald's is using global business strategy in order to meet actual demand of its customers
at international market. Global business strategy of McDonald's is to promote its products among
customers belonging to age group of middle to upper class people. The specific global strategy
will help company in enhancing its chances of success in international market. In addition to this,
it can be further said that McDonald have used direct advertising approach. This approach will
help company in introducing its products among customers personally in which company tells
customers about specific or special features of product that will satisfy their expectation in more
effective manner. At the time of evaluating this global strategy, it can be said that it will be
having both negative as well as positive impact on company's growth. Positive influences of this
strategy is that it will provide opportunity to company to introduce products among customers.
This makes it easier for them to convince customers to purchase their offered products. By the
time of evaluating this strategy in negative aspect, it can be said that it will consume huge time
of customers. This is because, they direct advertising is a time consuming process. Along with
this, it will also require huge range of financial funds so that all of the targeted geographical
locations could be covered in effective manner.
The demand of local customers and its impact on company's growth
As per the view point of Manning and Soon, (2016), a company must focus over
determining the demand of customers before offering them product or services. Because each
customers is different in terms of their taste, preference and demand so it is very essential for a
company to collect information regarding its customer before targetting them. McDonald's
usually perform market analyses over the potential market in which it is going to enter. This
help them in collecting information regarding the demand as well as taste of customers and
according to which McDonald's change the ingredients of food to offer them as per the demand
of customer.
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According to the Seele and Lock (2015), a company achieve higher growth when it offer
product or services to its customer as per their expectation. Therefore, a company must analyse
the demand of local customer in which it operates business before offering them product or
services. McDonald's generally operates its business over several geographical area by managing
a range of franchises and for serving customers demand it hire local peoples. The reason behind
this is that local people have better knowledge regarding the activities which customers of that
area prefers more this further support in keeping customer satisfied.
In addition to this, it has been analysed that there are different ways which helps business
organisation in analysing demand of local customer. Some of its main essential ways includes
checkout on social media, referral sources, past records of customers, real time interaction way
of customers, demographic information etc. These ways simply help company in evaluating
what are the emerging demand of customers which influences them towards company. At
further, it can be said that these ways helps business organisation in understanding demand
pattern of customers. In the same context, it has been further seen that if these ways are adopted
by large scale companies like McDonald's then it would be easier for them to expand their
business in international level. It can be said that McDonald's is fast food company. Thus, it is
essential for this company to understand taste and preferences of its customers as they are the
only one who will contribute major proportion in success of McDonald's during international
expansion. Furthermore, if with the help of these ways company identify their potential
customers demand then its easier for them to enhances chances of their success and growth in
international marketplace. Among all of these ways, information gathered from social media and
referral sources are more effective one as it helps companies in understanding their customers in
more better manner which could further result in growth flow of company. As a result, it can be
said that by using these ways company can easily understand demand of its local customers
which will directly help them in delivering better product or service to customers according to
their demand or expectation from company.
In McDonald's, local customer majorly high, as their demand changes on rapid basis and
this has led to making changes into the structure of the business firm. Local customer's are highly
demanded, because they have high demand and may be businesses are very low. This is one most
major reason, on why fast food outlet such as McDonald's is very successful in attaining higher
and higher customer's and this is the reason, why they are resulted into profit making. Demand of
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the local customer majorly changes with time and new trends, in response of which McDonald's
also needs to have the major look over trends which their customer's are highly preferring. Here,
for McDonald's benefits are that local customer's never ever have care about prices which they
are ready to pay, but their expectations are higher in context of this fast food chain. Local
customer are generally highly loyal to their choice or selection of an items or services. In this
leading fast food chain, impact of McDonald's is high, but majorly in a positive and productive
way to accomplish business outcomes for this leading fast food chain.
This is yet responsive to enhance business effectiveness at a given point of time. For this,
McDonald's still needs to focus on strategy which are necessary to led development of their
profits to enhance business continuity for longer period of time. Hence, McDonald's is required
to increase their profit with support of their local customer, which are pre-dominant on their won
functioning or business regulation.
Global business approaches that help in meeting local customers demand
According to Vrontis, Bresciani and Giacosa, (2016), it is important for every business
organization to meet customers’ needs and wants in order to increase their profitability level. In
this company use various global business approaches that allow to organization to make their
brand image competitive by building strong customers base. This is essential for the organisation
such as McDonald in improving the revenue, sales and profit of the firm in order to achieve good
position in the market as well as to grab more market share. These approaches will assist the
taken firm i.e. McDonald in determining the needs and demand of their customers so that the
food products of the McDonald can be provided to customers accordingly. When products are
provided by the firm are according to the needs and demand of the customers, then customers
will feel satisfied from the provided products which will also strengthen the trust and loyalty
towards the organisation. This trust and loyalty will assist the firm in improving the brand image
which is essential for sustaining in the global business environment in which McDonald is
operating their business function and operations. By using this, McDonald's capture larger
market shares from its rivals. All these approaches can be understood by following points:
 Ethnocentric approach: It is an effective strategy which focus on the values and ethics of
the home country. Along with this, this type of approach conducted foreign activities to
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distribute surplus. This type of approach is suitable for small companies because it
required less amount of fund.
 Poly-centric approach: This type of strategy company policies and procedures are highly
based on host country. Under this, local market needs and requirement are provided by
foreign subsidiaries with the aim of attaining set goals and objectives. This type of
methods is used by Multinational companies who wants to expand their business
 Geocentric approach: In this approach, skilled and capable people working in an
organisation are given the responsibility to perform work irrespective of their nationality.
This kind of approach benefits an multinational organisation in developing an
international executive team which can resolves the issues faced by local customers as
well as foreign customers in an appropriate manner. But this procedure is time consuming
due to which local customers may have to wait for a longer time period in order to
resolve their query or to satisfy their desire.
 Regiocentric approach: This is an regionally oriented approach in which an multinational
firm divides its work and operations into various geographical regions. With the help of
this global strategy, expertise of company will be allotted different regions especially
local regions so that high growth and profitability can be enjoyed in home country. Due
to this, demand and preferences of local people will be given more consideration under
this approach.
 According to Kokemuller. N, 2018, If the demands of local custoemrs will not be
fulfilled in a desired manner then it will impacts the busienss of an organisation in a
negative way. Business organisation will faces loss of sales in its home country due to
which market and brand reputation of company will decrease not only in domestic
country but also in other parts of world. Beside this, negative publicity will results in
reduced customer base as the local customers will shift their preferences towards the
products offered by other companies. Also, without satisfying the demands of local
people, it is not possible for a business or an organisation to expand its business in other
nations in a successful manner. Hence, it is important for the McDonald's to implement
global business approaches so that the needs and desires of local people can be satisfied
in a proper manner.
.
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CHAPTER 3: RESEARCH METHODOLOGY
This section plays vital role in carrying out the research activities in systematic way.
Mainly it considers as a specific technique used by researcher to determine, process and analyse
information towards the particular area and topic. Along with this, it also helps in collecting
relevant and accurate information that provide support to investigator at the time of taking any
kind of decision (Ganglmair-Wooliscroft and Wooliscroft, 2016). Thus, it is important for
researcher to select right method for gathering information so that they can easily evaluate the
validity of the research. In this context, there are various type of research methods used by the
investigator to undertake the research activities in most effective manner.
Research philosophy
This method is related with the belief towards the way which relate phenomenon that
should be collected, analysed and also implemented. Mainly, it includes different views and
opinion of authors which help in providing accurate information towards the specified topic and
area as well. In this context, there are two type research philosophies such as Interpretivism and
Positivism. Both are appropriate to gather accurate data to draw a valid conclusion in appropriate
way.
Interpretivism: This method is play a vital role in understanding the human nature and
their roles and well that are varying as social actors. By this investigator easily collect relevant
information that may provide better guidance to take positive end results. In this, researcher use
qualitative means which help accumulating information in an effective way.
Positivism: It is also an important method that is related wit determining, measuring as
evaluating any kind of process that help in providing rational of the research and its activities in
systematic way.
For this research, investigator use Interpretivism research philosophy because it provides
in-depth information to improve the accuracy and validity of the research.
Research approaches
It is related with plan and procedures that includes various steps to gather detailed
information towards the particular area and topic as well (Jang, Kim and Lee, 2015). Mainly, it
related with collection of data, analysis and interpretation which help investigator to take right
decision. Along with this, it provides a right path to researcher to undertake study in systematic
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manner. By this investigator easily improve the overall efficiency level. It divides into two
methods such as inductive and deductive.
Inductive research approach: This method is related with the qualitative research which
help investigator to gather in-depth information towards the selected area (Martin, 2016). Under
this, investigator use the research questions to undertake the research activities to attain positive
outcomes. With the assistance of this, researcher can easily provide subjective reason within the
research.
Deductive research approach: It is also an effective way to undertake research activities
in systematic manner. Mainly, it relates with developing theory that is based on the existing
theory to test hypothesis. With the assistance of this, investigator gather accurate information to
attain positive outcomes. This research is based on quantitative method which help in reach at
logical and valid conclusion.
From this, investigator use inductive research approach which help in improving the
chances of attaining positive outcomes.
In present investigating report, researcher has basically used both inductive and deductive
approach because, the topic was relying upon both mathematical terms and upon theoretical
perspectives as well. Through this, it can easily be said that researcher will directly improvise
favourable outcomes related to the topic through looking into a range of perspectives as well in
specified time frame.
Types of investigation
It is related with the imperative study in which investigator evaluate as well as examine
the right way to undertake research activities to attain positive outcomes. The main focus of
investigator measure data in order to draw a valid conclusion. This will help in improving overall
effectiveness of the study. In this, there are two type of investigation used by researcher to
execute research activities are as follows:
Qualitative method: It is one of the effective way of gathering data towards the specified
topic and area. In this entire data gather in a theoretical basis which help investigator to take
positive outcomes within the research. Mainly, it is related with the recording, analysing and
evaluating the in-depth information to determine actual facts. By this researcher can easily draw
a valid conclusion.
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