McDonald's is one of the most successful American companies in terms of exporting not only its products, but its entire method of operations to foreign markets. Begun by an enterprising milkshake machine salesman who was curious why a single hamburger store would need multiple machines, McDonald's is a combination of capturing and riding changing American trends with a savvy marketing program. Known for hamburgers, french fries and milkshakes, the company has built its original humble beginnings into a worldwide operation that spans nearly 90 countries and which has one of the most recognized brand names in the world (Whalen, 1995, p. I4). This research considers the success of McDonald's, with a particular emphasis on the company's foreign operations, examining the company's operations in six countries and the cultural and economic factors which help make the company successful in its widely diverse markets.
McDonald's develops, operates, franchises and services a global system of restaurants which prepare, assemble, package and sell a limited menu of value-priced foods. These restaurants are operated by the company or, under the terms of franchise arrangements, by franchisees who are independent third parties. Affiliates can also operate under joint-venture agreements between McDonald's and local businesspeople.
McDonald's franchising program assures consistency and quality regardless of where a store is located. McDonald's is selective in granting franchises and does not generally offer franchising to investor groups or passive investors. Under the conventional franchise arrangement, franchisees supply capital to their stores. Initially, this is accomplished by the franchisee purchasing equipment, signs, seating and decor. Over the long term franchisees are expected to put some of their profits back into their stores. McDonald's shares the investment by owning or leasing the land and building; franchisees then contr...