Sample Case Study of McDonald’s Company

McDonald’s is a leading global restaurant and fast food company established in 1973. The company has successfully utilized global expansion and effective management strategies to penetrate global markets in pursuit of a greater market share (Mujtaba & Patel, 2007). McDonalds believes that human capital is the most valuable resource even as it competes with large national and international brands in the fast-food market.  This case is s background of McDonald’s Corporation in terms of expansion strategies, relationship with its employees, and how the company creates brand loyalty.

Given that McDonald’s success depends on its ability to deliver quality services and value to customers, the company has invested in creating job satisfaction and promoting employees’ growth. A report published in 2018 put McDonalds as the second-largest employer with over 1.7 million employees spread in around 38,500 restaurants both in American and other markets around the world (Gerhardt, Hazen, & Lewis, 2014).  Besides paying employees and giving royalties, McDonald’s provides education opportunities to thousands of its employees. For instance, McDonald’s Hong King supports its employees by enrolling them to free continuing education programs in business. Others like McDonald’s Argentina offers scholarships to employees in partnership with public universities. Furthermore, McDonald’s UK allocates at least $1,800 per employee to invest in training, education, and sporting activities (Nawaz, 2011). As a matter of fact, the company invests significant resources to train and retain its employees from diverse backgrounds.

The emphasis on local management is one of the most successful strategies that have enabled McDonald’s to penetrate even the toughest international markets like India and China. The company hires managers from the local communities in which it has established business to gain acceptance. For instance, it entered the New Delhi market through joint ventures with popular local businesses. This strategic entry allowed McDonald’s to gain access to the traditionally bureaucratic Indian market (Vignali, 2001). In China, McDonald’s developed marketing strategies based on various cultural variations. In particular, globalization and internationalization coupled with heavy market research of the social, political, cultural, and economic aspects of the region enabled the company to gain easy access to the market.

Overall, McDonald’s remains one of the most successful companies around the world primarily due to its ability to effectively use expansion strategies and its human capital. Through the strategies developed internally by the management, McDonald’s revenues, quality, employees, and consumer satisfaction have increased significantly.

 

References

Gerhardt, S., Hazen, S., & Lewis, S. (2014). Small business marketing strategy based on McDonald’s. ASBBS Proceedings21(1), 271.

Mujtaba, B. G., & Patel, B. (2007). Mcdonalds success strategy and global expansion through customer and brand loyalty. Journal of Business Case Studies (JBCS)3(3), 55-66.

Nawaz, A. S. (2011). Employee motivation: A study on some selected McDonalds in the UK. African Journal of Business Management5(14), 5541.

Vignali, C. (2001). McDonald’s: “think global, act local”–the marketing mix. British food journal.