Explore BrainMass

McDonald's Adaptation to Global Markets

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Case study question:
McDonald's was called "the poster boy for the proliferation of standardized global products" ( Hill, 2009, p. 436). They have also been a model for adaptation to local markets. What are some key learning points that apply to cultural acceptance and supply chain management as demonstrated by McDonald's?

This solution provides an example of how McDonald's expanded into India, by altering its menu to include foods popular in the culture. By including menu items specific to the culture of India, this helped to create acceptance of a "foreign" food provider. It would be a sound business decision to obtain products locally for the production of some items; to assist with the local economy.

© BrainMass Inc. brainmass.com October 25, 2018, 8:10 am ad1c9bdddf

Solution Preview

When branching out into an international market, it is imperative to know what products will be culturally accepted - and more importantly, the supply chain to ensure proper supply is made to satisfy demand. McDonald's has stores throughout India, where spicy ...

Solution Summary

McDonald's is widely known for Big Macs and McNuggets. But in other cultures that may not view burgers and chicken nuggets as "staples" to their diet, adaptaion is paramount in order to expand into global markets. This solution is about 200 words and includes a reference, citing how McDonald's expanded into India by offering paneers, a staple to the local culture.

See Also This Related BrainMass Solution

Global Marketing Communications

Reply to the following:
According to Keller & Kotler (2012), the development of the Web, the spread of cable and satellite TV, and the global linking of telecommunications networks have led to a convergence of lifestyles. Increasingly common needs and wants have created global markets for more standardized products, particularly among the young middle class. The best global brands are consistent in theme but reflect significant differences in consumer behavior, brand development, competitive forces, and the legal or political environment. For example, McDonald's customizes its menu offerings and even its service delivery to suit the markets.

With that being said, people are becoming more and more similar, although companies must make sure their brands are relevant to consumers whether domestic or global. It is understood that product adaptation alters the product to meet local conditions or preferences however flexible manufacturing makes it easier to do so on several levels. Changing marketing communications for each local market is a process called communication adaptation. The challenge is to make the message as compelling and effective as in the home market. At the end of the day, KFC operates domestic and global, yet more and more people are eating KFC however there might be a slight change in the menu due to the culture.

View Full Posting Details