McDonald’s France Operations

Unit II Essay

McDonald’s France Operations

Shameka Fahie

Columbia Southern University

Introduction

McDonald’s was founded in 1955 by Ray Kroc. Kroc wanted McDonald’s to be a restaurant that served burgers, fries and drinks that were consistently made and tasted the same no what location a customer ordered from. Kroc created McDonald’s principles of quality, service, cleanliness, and value (McDonalds, n.d.). In 1961, Kroc designed a program where franchisees would be trained in successful running their own McDonald’s restaurant called Hamburger University. Kroc never stopped working for McDonald’s until he passed away in 1984. McDonalds has become a global brand and has business in more than 100 countries. This paper will analyze external influences that impact business as it relates to culture, competition, geography, legal and economic factors when considering expanding internationally.

Culture Factors

        Culture is defined as the values, attitudes, and beliefs of a group of people. “Culture sets the standards of behavior required for continued acceptance and successful participation in that group” (Kenneth, 2005, p. 144). In order to be successful internationally a U.S. based company must consider and incorporate the culture of the countries they are expanding too. The business will employ people of that country, market sell and market to people of that country and even buy from the people and other business in the country. McDonald’s has a core menu at all locations around the world.

“However, the menu will also include a variety of items catering to local preferences and unique cultural tastes. Since opening its first French restaurant in Strasbourg in 1979, McDonald’s has sought to leverage the strength of the global conglomerate while tailoring its menu the French palate. In 1995, McDonald’s began using locally sourced French chesses such as chevre, cantal, and blue. They even exchanged traditional mustard for a whole-grain French mustard sauce. By being sensitive to the French palate, McDonald’s stated executing a multi-domestic strategy and winning the hearts of French consumers. Part of McDonald’s global success is its abilities to localize and adapt to changing consumer demands. The lesson learned in France pave the way for satisfying globally diverse taste” (Crawford, Humphries, & Geddy, 2015, pp. 11-12).

Competition Factors

        “The present and potential pressures of increased foreign competition can persuade companies to buy and sell abroad” (Daniels, Radebaugh, & Sullivan, 2015). The business environment has become more global regardless of the industry. In order to remain competitive companies should expand globally. “Once a few companies have responded to foreign opportunities, other inevitably follow suit” (Daniels, Radebaugh, & Sullivan, 2015). Companies can seek partnership from other brands who have expanded globally or is looking to expanded globally.