Case Study: McDonalds' Strategies for International Market Challenges

This case study examines the challenges faced by McDonald's when entering international markets and the strategies they employed to overcome these obstacles. It begins by defining the concept of the international market and highlighting its importance for business growth, including improved profit margins, business diversification, and access to new talent. The study identifies key challenges such as human capital management, cultural differences, and financial constraints. To address these issues, McDonald's implemented strategies such as hiring local employees, investing in market research to understand cultural nuances, and securing diverse sources of finance through loans, partnerships, and public offerings. The research methodology includes descriptive and exploratory research designs, stratified survey sampling with a sample size of 110 participants, and data collection through questionnaires and secondary sources, ensuring ethical considerations are maintained throughout the study.

International business
research

Table of Contents
Introduction.................................................................................................................................................3
Main Body...................................................................................................................................................4
Literature Review........................................................................................................................................4
METHODOLOGY......................................................................................................................................7
Research Design Adopted...........................................................................................................................7
Sampling Method (Selection of Participants)..............................................................................................7
Data Collection............................................................................................................................................8
Data analysis & interpretation...................................................................................................................12
Data Analysis & Interpretation..................................................................................................................12
Interpretation.............................................................................................................................................16
Recommendation.......................................................................................................................................18
Conclusion.................................................................................................................................................18
References.................................................................................................................................................20

Introduction
The organisation is treated as a distinct legal entity with its own copyrights & legal
framework. The organisation is created on the principle of a certain size, purpose, & motive, as
well as a specified management structure. Every firm aims to upgrade their organization &
increase their market share so that they may efficiently accomplish their vision & goals (Adobor,
2019). Every firm is making every effort to increase their market size & market share, making it
easier for the company to gain a worldwide presence. Most businesses are using international
business strategies for enhancing their corporate awareness & company operations. It has been
discovered that foreign trade strategies consist of a strategy or a course of action that is primarily
implemented by the firm in order to improve market & operational performance. This research is
based on the McDonalds. Basically McDonald's is an American international fast food firm that
was started in 1940 as a restaurant in San Bernardino, California, by Richard & Maurice
McDonald. This research is based on the primary research & will utilize questionnaire method to
frame the most appropriate results.
Aim
To evaluate different issues faced by an organization while entering international market. A case
study of McDonalds.
Research objectives -
 To understand the concept of international market
 To evaluate different issues faced by Mcdonalds while entering foreign market
 To recommend strategies used by McDonalds to overcome the challenges faced while
going international.

Research Questions
 What is the concept of international market
 Which are the different issues faced by Mcdonalds while entering foreign market
 Which are the strategies used by McDonalds to overcome the challenges faced while
going international.
Main Body
Literature Review
To understand the concept of international market
According to Cateora and Graham (1966), international marketing is consider as the
performance of business practices arranged to plan, price, promote and direct flow of the goods
and services of an organisation reach to the consumers of more than one country for earning
higher profit. It is defined as the simple or complex market as a system of institutions, process
and rules related to the exchange of products and services among the business organisations or
persons. In simple words, it can be defined as the process of applying the principles of marketing
in order to satisfying the requirements of several people living in different countries. It is often
called as Global Marketing. There are various ways which have been adopted by the companies
to perform the operations on international level. The concept of international market is wide
concept as it include several aspects. There are several reason have been found why the
international market is important for the business organisation. Some of them are given below: Improving profit margins: It is the major or primary reason of business organisation
for moving top the international market. Expanding the business operations in
different countries result in the increase in the customer base. Through offering the

products and services in the international market, the company can build revenue and
strength as well.
 Diversifying the business: Diversification of business in various key ways is possible
in the case of expansion of business in the international market. If any one market is
not giving the sufficient amount of profit, the organisation can move and focus on the
another market of other country.
 Introducing new talent: Another reason for international market is to introduce the
more diversified talent pool. New talent and skills in the organisation help the
business in earning better.
To evaluate different issues faced by Mcdonalds while entering foreign market
According to Korter (1962), it is not an easy task to enter in the new market or new country. A
business organisation face several of issues while entering in a new country. McDonald had also
faced several of issues while entering the new market. Below mentioned are several challenges
which have been faced by McDonald while entering in the international market: Human Capital: Humans are consider as the best capital for the organisation. It was a
huge challenge for the company while moving to the international market to arrange the
human capital in the new country. In order to perform the business operations in the new
branch of McDonald, it is necessary to have skilled and experienced human resource
which can manage the entire operations in an effective and efficient manner. Cultural Difference: Another challenge for McDonald for entering in the international
market is the difference in the culture of people living in the other country. Due to the
cultural gap, the company face several of issues as the management of organisation was
not able to understand the needs and demands of people living in other country. It is a
huge challenge faced by the company as the management is not aware about the culture
and trends of people.
 Financial problem: While entering in the new market, business require huge amount of
capital to do investment. It is a challenge for McDonald to get money of finance source

in order to enter in the international market. Moving to international market is really an
expensive process. Firstly, the oCateora and Grahamrganisation have to analyze the
preferences of people by investing in research and development programs.
To recommend strategies used by McDonalds to overcome the challenges faced while going
international.
According to Terpstra and Sorathy (1991), it is necessary for the business organisations to
develop effective strategies in order to overcome from the issues and challenges faced by the
business organization while entering in international market. McDonald have to develop the
effective strategies along with taking the necessary actions or adopting the practices to overcome
from the above listed challenges of internationalisation. Some of strategies or practices adopted
by McDonald for overcoming from the challenges of entering international market are given
below:
 Hiring employees: The HR department of McDonald is require to hire the employees
from the same country of expansion. Along with this, the organisation can transfer the
existing highly skilled and experienced staff members to another country for the purpose
of bringing effectiveness and efficiency in the business operations of organisation. With
the personal enhancement, the person will personify the brand to better suit the situation. Invest in Research: The McDonald is also require to do investment in the research
department in order to knowing about the culture and preferences of people living in the
other countries. They can also hire some local specialist for the purpose of gaining
knowledge about the different culture of organisation. By knowing about the several
cultures, the organisation can make the target to of correct audience, which is really
useful for the company to enter in the international market.
 Finding best source of finance: In order to overcoming from the challenge of money, the
business organisation is require to analysing the several sources of finance through which
the McDonald company can make money and invest in the new market. The organisation
can take loan from any of bank or any other financial institute or the management can
offer the shares to the general public. The organisation can also do the business in
partnership with the already existing company in new country. By taking the money from

such sources the organisation can overcome from the challenge of finance faced by
McDonald while going international.
METHODOLOGY
Research Design Adopted
The research design is similar to a plan for this study, & it serves as the foundation for the study.
Researchers have proposed a number of research designs, including descriptive, casual
investigations, research methods, observational study, Semi - experimental research, among
others. The researcher considers descriptive & exploratory research designs in order to
accomplish this present study. The relevance & credibility of the research may be suitably
maintained with the aid of this research methodology.
Sampling Method (Selection of Participants)
Sampling techniques are a more particular statistical approach & structure that are
combined with various sorts of sample selection to aid in the selection of the target audience &

sample size distribution. The researchers use two different types of sampling approaches: simple
random procedures & non-probability sampling procedure (Raghunath & Rose, 2016). Both
sampling strategies are more suited for selecting data from respondents & are also beneficial.
The researcher is mostly using suitable sampling approaches to finish the existing resource.
Simple random sampling, sampling techniques, systematic random sampling, & systematic
sampling are all examples of random selection.
The investigator is considering stratified survey design for this present research so that
they may conveniently choose the intended group at randomness. This study's sample size is
estimated to be 110 people.
Data Collection
The most appropriate approach in the research process for gathering valuable information that
adds more value to the literature review is data collecting. There are two types of data gathering
methods: primary data collection & secondary sources. The gives a detailed analysis of both data
gathering methods there in context of the current study (Clandinin, Cave & Berendonk, 2016).
 Primary data collection method – This data gathering is also known called source
information since it allows researchers to use firsthand data that is completely pure &
distinctive, & has never been used by anyone else. The researcher considers a variety of
sources that can assist in gathering primary data in an appropriate manner, including
questionnaires, online surveys, interviews, & observations. In order to accomplish the
current study, the researcher applied the questionnaire & online questionnaire methods to
obtain important data from a particular & carefully chosen community even though
primary data is valuable in developing genuine responses from the targeted population
that can be used in other studies.
 Secondary data collection method
This is also regarded the most appropriate way of data collecting since the researcher may use
information & data that has previously been acquired & used by another individual. Secondary
research may be collected from a variety of media, including books, journals, webpages, articles,

& more (Davidaviien, 2018). To finish this study, using secondary data collecting approach was
used since it is beneficial in generating a thorough grasp of the research subject so that the
researcher may get in-depth information about the research field by using this knowledge to
create the systematic review (Hickson, 2016).
Research Ethical Consideration
There is a necessity to respect each & then every ethical concern in completing this research in a
systematic method such that the researcher may easily retain the worth of the study project. The
researcher must consider various factors in order to maintain moral questions in their study
project, including the quality of the research, the trustworthiness of the information, the use of
suitable research methods, gathering data from reliable sources, privacy & confidentiality, &
determining the industry research relevance. In order to keep all of the study's requirements, the
researcher concentrated on all of these elements so that he or she could successfully h&le all of
the research company requirements while also maintaining ethical issues .

Questionnaire
Name-
Age-
Gender-
Q1) On the basis of your point of view, does McDonalds utilize the international business
strategies?
A. Yes
B. No
Q2) On the basis of your point of view, Does McDonalds follow the international business
environmental activities in order to improve the market effectiveness?
A. Yes
B. No
Q3) On the basis of your point of view, which are the most effective international business
strategy utilising by the organisations in order to enter the international business market ?
A. Global Strategy
B. Transitional Strategy
C. International Strategy
D. Multi- domestic Strategy
E. All of the above
Q4) On the basis of your point of view,, which is the main key challenge of the
international business that can affect the performance & productivity of the McDonalds?
A. Cultural Differences
B. Foreign policies & procedures
C. Management with the global team
D. Language barrier
Q5) On the basis of your point of view, what is the various form of the international
business environment in order to generalise the international business market for the
development of McDonalds?
A. Franchising

B. Licensing
C. Joint Ventures
D. FDI
Q7) On the basis of your point of view,, what is the most appropriate benefit of
international trade for the McDonalds?
A. Decreased competition
B. Better Risk management
C. Improvement in revenue
D. Large market access
E. Market Expansion
Q8) On the basis of your point of view, Which challenge provide the main risk in the
international working operations of the company?
A. Economic Warfare
B. Geo-politicization
C. Lack of Leadership
D. Power Distribution
E. Price Fluctuations of Natural Resources
F. State Capitalism
Q9) On the basis of your point of view, is language barrier can affect the international
business operations of the company?
A. Yes
B. No

Data analysis & interpretation
Data Analysis & Interpretation
Q1) According to you, does McDonalds utilize the international
business strategies?
Frequency
A. Yes 95
B. No 15
86%
14%
Frequency
A) Yes
B) No
Interpretation
According to the results of the above talk, out of 110 persons, 95 people, or 86 percent, said that
the McDonald employs international trading techniques. Only 15 participants (14%), or 15
people, said Gr& Hyatt Shanghai did not implement worldwide business strategy to increase
their organization's service quality.

Q2 ) On the basis of your point of view, Does McDonalds follow the
international business environmental activities in order to improve the
market effectiveness?
Frequency
A. Yes 108
B. No 2
98%
2%
Frequency
A. Yes
B. No
Interpretation
According to the findings of this study, 98 percent of respondents believe that the
McDonaldengages in international business environmental initiatives in order to boost perceived
outcomes, while just 2% disagree.

Q3) On the basis of your point of view, which are the most effective
international business strategy utilising by the organisations in order to enter
the international business market ?
Frequency
A. Global Strategy 20
B. Transitional Strategy 18
C. International Strategy 21
D. Multi- domestic Strategy 16
E. All of the above 35
18%
16%
19%15%
32%
Frequency
A) Global Strategy
B) Transitional Strategy
C) International Strategy
D) Multi- domestic
Strategy
E) All of the above
Interpretation
According to the above table, out of 110 persons, 18% of them believe that global strategy is the
most effective worldwide business plan, & that it is followed by the majority of the
organisations. Transnational approach is the most internationally accepted strategic approach,
according to 16 percent of respondents. International strategy is regarded as the best alternative

for development aid strategy by 19% of respondents. The number of co strategy was supported
by 16 persons. Overall, 32% of respondents believe that all of the aforementioned tactics are
more suited & successful for international company.
Q4) On the basis of your point of view,, which is the main key challenge of
the international business that can affect the performance & productivity of
the McDonalds?
Frequency
A) Cultural Differences 33
B) Foreign policies & procedures 28
C) Management with the global team 25
D) Language barrier 24
30%
25%
23%
22%
Frequency
A) Cultural Differences
B) Foreign policies and
procedures
C) Management with the
global team
D) Language barrier
Interpretation
According to the findings of this study, 25 percent of 110 respondents correctly stated that
foreign policies & producers are the primary significant difficulty of international business that
can affect the effectiveness of the Gr& Hyatt Shanghai hotel. Different cultures are the greatest

obstacle of international trade, according to 30% of respondents. Only 22% of respondents
agreed that the biggest issue confronting the business is managing with a global staff, & only
23% believed that the primary concern facing the organisation is the language issue.
Q5 ) On the basis of your point of view, what is the various form of the
international business environment in order to generalise the
international business strategies for the development of the hotel?
Frequency
A. Franchising 36
B. Licensing 28
C. Joint Ventures 24
D. FDI 22
33%
25%
22%
20%
Frequency
A) Franchising
B) Licensing
C) Joint Ventures
D) FDI
Interpretation
Based on the findings of this study, it can be concluded that out of 110 respondents, 25% believe
that licencing is by far the most appropriate kind of international market for generalising
international business strategies for hotel growth. Joint ventures are the most deliver results in

accordance for the worldwide business climate, according to 22% of respondents. Only 20% of
respondents said FDI is the most acceptable kind of investment, while 33% said franchises is the
most appropriate.
Q6) On the basis of your point of view,, what is the most appropriate benefit
of international trade for the McDonalds?
Frequency
A) Better Risk management 30
B) Improvement in revenue 27
C) Large market access 24
D) Market Expansion 29
27%
25%22%
26%
Frequency
A) Better Risk
management
B) Improvement in
revenue
C) Large market access
D) Market Expansion
Interpretation
Based on the above data, it is estimated that 26 percent of the 110 respondents surveyed believe
that market growth & increased revenues are the most suitable advantages of an international
company plan. Better risk management is a key advantage of strategic choice, according to 27%
of respondents, & large market access is the key advantage of multinational enterprise, according

to 24% of respondents. These are the main advantages that companies should consider when
adopting worldwide business model in their business operations.
Recommendation
On the basis of this research, it may be suggested that the company should do a number
of things in order to enhance their international business operations. The McDonald should
concentrate on leveraging small market experience in order to retain & develop their core
capabilities in their local market. Hoteliers should also think about building regional partnerships
that might aid them boost their market value & prepare for global business (Uhl & Gollenia,
2016).
The McDonald has also analysed & navigated new policies & standards in order to retain
certain legal concerns in their organisation, making it easier to engage with both the market in
China & other nations. In order to manage the expectations of the customers & other
international clients, hotels must engage in some specific actions. Apart from that, the McDonald
should concentrate on bridge knowledge & some other cooperation activities to increase their
existing understanding of world business rules & requirements (Rul, 2017).
Conclusion
According to this paper, international business is becoming increasingly important, & it
may significantly increase the organization's brand recognition & market dominance. The
relevance of international trade for the selected organisation is discussed in this report, & it is
concluded that organizational expansion & multinational corporate strategy are the most
appropriate foreign trade strategies that an organisation can employ in order to maintain their
international business operations. The researcher has identified several benefits, & it has been
established that economic impacts, expansion, & income are the most acceptable advantages of
applying international trading techniques. Licensing, joint partnerships, & franchisees are among
of the most common methods used mostly by researchers to exp& their firm overseas. It is
identified that there are various issues are faced by the companies while entering the
international market like Company structure on a global scale, Laws & regulations from other

countries, Accounting on a global scale., Calculation of costs & pricing strategies at a global
level & many others.

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