McDonald's: From Big Mac to P'tit Plaisir

McDonald's: From Big Mac to P'tit Plaisir

Case Synopsis

McDonald's as we know is the biggest multinational-corporation in fast-food industry. McDonald's is a symbol of American power and hegemony just like Coca Cola and Nike which its operations is all around the world. And how McDonald's could successfully entering global markets ? the key components is its standardization in all McDonald's outlets in the world known as QSC&V (Quality, Service, Cleanliness, Value). You can see and feel the same burger quality, same fast service, cleanliness of restroom and the same price in all McDonald's outlets in every country. McDonald's also made a strong relationship with supplier because this is another key success, every supplier which supply all McDonald's products have to comply with McDonald's standard or specification. McDonald's also give reward for every supplier that achieve its specification process.

And the most important thing that made McDonald's globally success in entering every country is Plan to Win Strategy, this strategy actually bring McDonald's products to become more relevant to local and regional preferences. In France, McDonald's referred as McDo and every products in France is environmental friendly and based on local resources. Menu also different, its have P'tit Plaisir (mini snack foods), Little Mozza (tomato and mozzarella salad), Croques Monsieurs (Grilled Ham and Cheese) etc. In the US McDonald's is food to go orders but in France is dine in because people in France usually like to dine in and spend time with their friends or family. In Germany there is McCafe which know become world-wide product of McDonald's, German is also sensitive with environmental issues so McDonald's outlets in German used biodiesel oil, used solar-powered air conditioners and used refrigerators that operate without harmful chlorofluorocarbons. Menus also develop based on German people who love spicy food like Mexican foods. In India, which beef or pork is prohibited (especially beef) and most of India people is vegetarian so McDonald's in India develop menus which meet with local preferences : special line of vegetables, fish and chicken sandwiches.

Examples above described how McDonald's successfully broaden its operations globally and how its overcome critics, protest even vandalism because of sensitive of western culture, issues of environment and animals abuse is by creating social corporate responsibility which emphasized six general areas in terms of corporate responsibility : community, employment experience, environmental responsibility, governance and ethics, nutrition and well-being and a sustainable supply chain which purposes is in order to keep the brand image of McDonald's good.

Problem Identification

McDonald is facing a major problem. Where will McDonald go from now on? Should McDonald keep its current strategy or change it to the other strategies?

Case Analysis

Strategic change is about changing the way in which an organization interact with its external environment. This can be done by adapting external environment into organization's system which consist of three elements: structure, processes, and culture. The strategy of Mc Donald established will be explained below.

Type of International Strategy : Multidomestic Strategy

To compete in international markets organizations, McDonald's using multidomestic strategies to diversify its activities overseas, including its unique and customized approaches to each country, allowed in to respond more quickly to the dynamic environment. The objective of multidomestic strategy is to adapt a product for use in national markets and thereby responding more effectively to the changes in local demand conditions. Mcdonald's needed to become more connected to a global customer base and resulted in significant variance in strategic actions in different countries. Local managers given substantial autonomy to determine how the product will meet the needs of local customer.

- In France, McDonald's redesigned its brand so it would not be seen as an American company subverting the French culture of high cuisine, then France became McDonald's second most profitable market in the world. The new menu in France offers many choices not familiar in the US such as the P'tit Plaisir (mini snack foods), Little Mozza (tomato and mozzarella salad), Croques Monsieurs (grilled ham and cheese), and Jambon Beurre (ham and butter on a crusty baguette). In addition, stand-alone McCafes carry traditional France sweets such as macaroons, fruit tarts, and flan, and serve beverages ceramic mugs.

- In German, stores are simply decorated and focus on the essentials typical of German design. Most stores feature televisions tuned to McDonald's German Network. a very popular in-store television network. It carries branding, entertainment, leisure content, and advertising. Germany is considered one of the most environmentally conscious countries in the world. Sensitive this, a typical German McDonald's store converts used oil into biodiesel fuel, buys solar-powered air conditioners, and uses refrigerators that operate without harmful chlorofluorocarbons. McDonald's marketing executives also identified a German fascination with Mexican culture and a love of that culture's spicy food. Thus, McDonald's German added Los Scharfos (fried cottage cheese and jalapeno snack), El Pikanted (beef patty, pita, and picante sauce), and a big bacon burger topped with jalapenos.

- In Rusia, McDonald's entered the Russian market by joint venture with the Moscow City Council, because there were few individuals with the resources necessary to become franchises. The menu in Russia was augmented with simple foods unique to local taste such as cabbage pie and kvass (alcohol from fermented brown bread). Most families were poor and very few owned cars, so McDonald's didn't need drive-thru windows. Then McDonald's chose to build their McComplex food processing facility while developing a domestic supplier network, and it is estimated that the McDonald's supply chain network alone created over 100.000 new jobs in Russia.

- In contrast to Russia, China was experiencing tremendous economic growth and consequently, more and more Chinese were driving cars, then McDonald's was the first fast-food provider to offer a drive-up lane in China. And also closed a deal with the Chinese state-owned oil company allowing the company to open stores at its gas stations. McDonald's offers "Mega Mac"