Culture adapted by McDonalds in different

Nations By:

1) Ankita Gobburkar2015MBA0144

2)PEDA BABU VADIYALA2015MBA0155

Company Profile

• The McDonald’s Corporation is the world’s largest chain of hamburger fast food restaurants.

• Headquarters in the United States, the company began in 1940 as a barbecue restaurant opened by Richard and Maurice McDonald. In 1948 they reorganized their business as a hamburger stand using production line principles.

• McDonald's restaurants-118 countries and territories around the world and serve 68 million customers each day.

• Restaurants worldwide- 36,615 • Company-owned locations - 6,056 • Franchised locations -30,559 • Employing more than -420,000 people.

• The company also operates other restaurant brands, such as Piles Café.

• McDonald's primarily sells hamburgers, cheeseburgers, chicken products, french fries, wraps, breakfast items, soft drinks, milkshakes, and desserts.

• In response to changing consumer tastes, the company has expanded its menu to include salads, fish, wraps, smoothies and fruit.

• The McDonald's Corporation revenues come from the rent, royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants.

Types of restaurants McDrive• In some countries, "McDrive" locations near 

highways offer no counter service or seating. In contrast, locations in high-density city neighborhoods often omit drive-through service. There are also a few locations, located mostly in downtown districts, that offer a "Walk-Thru" service in place of Drive-Thru.

McCafé• McCafé is a café-style added to McDonald's

restaurants. Most of the McDonald's in Australia have McCafés located within the existing McDonald's restaurant.

• In other countries, there are McCafés in every store.

• After upgrading to the new McCafé look and feel, some Australian stores have noticed up to a 60 percent increase in sales. At the end of 2003 there were over 600 McCafés worldwide.

 McExpress• Some locations are connected

to gas stations/convenience stores, while others called McExpress have limited seating and/or menu or may be located in a shopping mall. Other McDonald's are located in Walmart stores. 

•  McStop is a location targeted at truckers and travelers which may have services found at truck stops

McTrax • In the Netherlands, McDonald's has

introduced McTrax that doubles as a recording studio; it reacts to touch. They can create their own beats with a synth and tweak sounds with special effects.

Mcdonalds China

The Chinese eat everything with four legs, except tables, and everything

that flies, except airplanes.”— Anon.

McDonalds in China• McDonald's made a venture into China in 1990. In

China of the 90's ancient belief systems rooted in Confucianism and Taoism were intermingling with Western ideologies, through the narrow window opened up by the Communist government at the helm. 

• The interactions between the McDonald brand, and the Chinese cultural value system, combined to provide a synergy that resulted in some interesting developments. While in some cases McDonald's became an upholder of traditional values, while in other situations, McDonald's became an appropriate medium for consumers to explore new beliefs and ways of acting.

• McDonald's made a departure from the hierarchical set up of the dining experience in traditional Chinese restaurants, based on considerations of age. In McDonald's the seating arrangements were open, and everyone having equal access as to where to sit and what to order. In this case McDonald's encouraged the Chinese to make a departure from tradition.

• The lack of alcohol served in McDonald's led some consumers, primarily Chinese women, to embrace being able to be on a more equal footing with men while eating. In this case McDonald's upheld a traditional Chinese custom.

• McDonald's success in China is based on a five-point strategy focused on product, price, people, promotion and place.

PRODUCT

• McDonald's product strategy consists of three categories. First they try to reflect the tastes and customs of the local markets by offering different kind of menus.

• The Chicken McNuggets in China come with the traditional BBQ, Sweet & Sour, and Honey Mustard sauces, but there's also a Chilli Garlic Sauce, which is very popular in China. 

• 2001 McDonald's Vegetable and Seafood Soup and Corn Soup were introduced. I think that these menu items were introduced because it was in line with their culture and love for foods with exotic taste. 

• Furthermore McDonald's went on to introduce a local; version of its "Dollar Menu" calling it the "Value Menu." This also proved a successful concept as most Chinese people are short, tiny in physique and very health conscious. The regular sized meals in the US and other parts of the world suited the BMI (Body Mass Index) height and weight of the average customer. Remember, Chinese people in general are not big eaters thus the reason for McDonald's offering a smaller and cheaper variation of the original product.

• Due to the urbanization and overpopulated cities, China has many problems with vehicles and parking. McDonald's opened restaurants and dessert kiosks targeting foot-travelers and the general working class.

• Secondly, McDonalds also tries to provide information about their products. In cooperation with their global nutrition team, their local business units develop and implement nutrition information, which can be found on the packaging of the products. The packaging provides information on key nutritional values in a simple and clear format, so that customers around the world can use the information to make menu choices that suit their preferences.

• Also other communication tools are used, such as advertising both on television as on the World Wide Web to give information about the quality of their food products.

PRICE• The conventional wisdom about China is that

most consumers are highly sensitive to price. As a result, a decrease in burger prices is likely to be more effective than a big marketing campaign. To convince Chinese consumers coming to McDonald's, McDonald's lowered prices for its basic menu consisting of a hamburger, fries and drink from 12.50 Yuan to 10 Yuan. (Scott Hume, 2007)

• Across China there are a lot of differences in purchasing power. Therefore McDonald's China is also exploring menu pricing by taking into account both market and restaurant.

PEOPLE• McDonald's provides employment and growth

opportunities for a lot of people, more than 1.5 million worldwide. Entering the Chinese market they can give many people the opportunity to operate in their restaurants.

• They focus also on training and development, which is necessary to learn the required skills, to do their jobs well. McDonald's has its own learning academy, namely the Hamburger University (HU), where a leadership development program is established based on Western management practices.

PLACE

• There are two important evolutions concerning this subject. First evolution is to open McDonald's China 24 hours a day. Presently, more than 400 restaurants of the 800 restaurants in China have provided services for 24 hours a day. In Beijing 40% of the company's stores open their business for 24 hours. In Shanghai 50% and in Guangzhou 60% have a 24-hour service.

• The major reason for opening 24-hour restaurants is to meet the demand by the customers, because more and more customers need the services at night because of their changing living habits.

• In Beijing customers actually weren't eager for the night service due to the relatively cold weather there at night. This is different from the customers in the warmer southern China.

McDonalds in Japan

• In 1971, Den Fujita opened the first McDonald’s establishment in Japan.

• “To be Japanese is to eat Japanese food. Rice is so symbolically central to Japanese culture that Japanese say they can never feel full until they have consumed their rice at a particular meal or at least once during the day.” And yet, Fujita thought he had something when he decided to open the first McDonald’s in Japan.

• Food preferences, in the past, were considered culturally oriented. With the globalization and success of franchises abroad, McDonald’s has proven that tastes can change. The corporate culture of the organization affected how the organization coped with competition and changed.

• When the first franchise opened in Japan, the menu consisted mostly of items similar to those in the United States.  In effort to increase sales, McDonald’s restaurants experimented with different food items such as Chinese fried rice, curried rice with chicken, and fried egg burgers.

• McDonald’s Japan preserved the original McDonald’s concept, but did apply slight adjustments to the menu in order to comply with Japanese taste. McDonald’s Japan introduced the Teriyaki Burger, the Rice Burger and, amongst other products, Green Tea ice-cream.

• Except for slight changes in the menu, other differences emerged between McDonald’s US and McDonald’s Japan. These differences relate to how McDonald’s restaurants were perceived by Japanese consumers.

• In “McDonald’s in Japan: Changing Manner and Etiquette”, Japanese consumers consider McDonald’s products as snacks rather than considering them to constitute a ‘real’ meal.

• McDonald’s therefore did not pose a serious threat to the Japanese lunch or dinner market.

Several factors explain this perception of McDonald’s products as snacks. • The first important reason is that most

products on the McDonald’s menu, such as hamburgers, cannot be shared amongst several people. Sharing is an important part of Japanese dinner or lunch time, because it brings a sense of community.

• Secondly, McDonald’s food consists mostly of meat and bread. The majority of the Japanese population does not consider meat as a part of their traditional lifestyle; it is typically considered to be part of the Western diet. Before McDonald’s was introduced in Japan,the combination of meat and bread was quite alien to many Japanese. Additionally, the overall lack of rice in McDonald’s food makes it unsuitable for a proper dinner or lunch. According to most Japanese, a ‘real’ meal always includes rice, which is not only seen as good nutrition but also as an important part of Japanese national identity

• McDonald’s did not only introduce a new type of food to Japan, it also introduced a new way to eat. The ‘table manners’ at McDonald’s clashed with traditional Japanese ways to eat. At McDonald’s, one eats whilst standing instead of sitting, and uses his hands instead of chopsticks. McDonald’s also made it more common to drink soda’s directly out of the bottle, and to finish a meal with some ice-cream. Although many facets within this new style of eating were initially associated with bad etiquette, McDonald’s turned them into something trendy

Two fast food restaurants have gone to war.• McDonald’s Japan has launched a limited edition

black Halloween cheeseburger to rival Burger King Japan’s updated Kuro burger which, as of September 19, now comes with black cheese.

• Black’s clearly in vogue in the food world.• The McDonald’s burger is called the Ikasumi – or

squid-ink – burger and it comes with a black squid ink bun, two beef patties, a slice of (yellow, missed a trick) cheese, a spicy yellow sauce and fried onions.

KFC Burger King

McDonalds

• Ikasumi, or squid ink, is a dark pigment that's released by squid as an escape mechanism when they feel threatened. It's a popular ingredient in Japanese cuisine that's a relatively new addition to the Japanese diet.