Mcdonald’s Expands Globally While Adjusting Its Local Recipe

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Case 1-2: McDonald’s Expands Globally While Adjusting Its Local Recipe Question #1
The popularity of American-style hamburgers, fries, and soft drinks is growing around the world, supporting Levitt’s view of the global village. Also, the restaurants themselves offer the consumers a chance to experience for themselves a fast food experience. However, in many locations, menu items are adapted according to the customs and tastes of individual countries. McDonald’s offers an ideal example of “global localization.” McDonald’s is thinking globally and acting locally. Even price has a play in the products being sold. “The average price of a Big Mac in the United States is $3.54. By contrast, in China, Big Macs sell for the equivalent of $1.83” ((Keegan & Green, 2011, p. 13).

Question #2
Despite concerns by governments and citizens in some countries about “cultural imperialism,” McDonald’s and other franchises with well-known brand names are generally welcome. Such businesses provide both much-needed jobs and employee training. This has on the other hand worsened other economies; especially headquarter countries of these franchises. “…the transfer of jobs overseas came to be seen by non-economists as a major factor in accounting for the weak job market of 2002 and 2003” (Mankiw & Swagel, 2006).
McDonald’s does a good job of earning the support of local authorities and the local population by working with agricultural producers to develop local supply sources for beef, potatoes, and dairy products. Finally, thanks to changing lifestyles around the globe, more people are embracing the whole concept of fast food.

Question #3
McDonald’s spent a period of time acquiring businesses they believed to be complimentary to their core burger-and-fries model. However, during this expansion, they made the error of “taking their eye off of the ball.” This allowed…...

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