Launching a New Corporate McDonalds

This analysis will deal with the steps necessary to successfully launch a new corporate McDonald's in a foreign country. The act of transplanting a basically American phenomenon onto foreign soil has been a successful strategy for the American restaurant chain, since it reported in its 1999 Annual Report that 62 percent of its revenues now come from foreign (outside United States) operations. This paper will begin with a general overview of the fast food industry that will pay particular attention to McDonald's International operations. That will be followed by a positioning statement that will be effected to facilitate the opening. The final section of the analysis will deal with the Four Ps of marketing.

The fast food sector continues to be the fastest growing sector of the prepared food industry. The market for fast food grew from $183 billion in sales (excluding sales tax and tips) in 1987 to $290 billion in 1998 ("Fast Food Industry," 1999, 12). Over the decade, sales of these foodservice establishments increased an average of 4.8 percent annually, or about 1.7 percent per year when adjusted for inflation. The reason for this continued growth is that consumers do not always have the time to plan, prepare, and eat meals at home. That plus more disposable income due to two-earner families, more women in the workplace, and less leisure time make convenient and v

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. . Although he chose McDonald's only as a symbol of a larger foe, others attacked the franchise chain across France. In April, Brittany separatists blew up a McDonald's, killing a young woman who managed it (Souchard, 2000, Online). Even in England, which was McDonald's first foreign beachhead has a strong anti-McDonald's movement. A 1994 story in the Guardian claimed that McDonald's deliberately defrauded customers and competitors by pretending it was first to declare voluntarily the ingredients of its foods. This was part of the now fabled McLibel trial in which two environmentalists, Helen Steel and David Morris, dubbed the McLibel 2 were sued for libel by McDonald's over a crudely printed leaflet they are alleged to have handed out in London called 'What's Wrong with McDonald's'. Its core allegation was that diets heavy in so -called junk foods like McDonald's had been scientifically linked with breast cancer and bowel and heart disease. At trial, one of the key witnesses was asked whether McDonald's deserved any praise for being first to put ingredient and nutrition brochures in its shoppes. . . Mr. Gardner, who was in charge of consumer protection for Texas, said: 'McDonald's deserved nothing. Figuratively speaking th
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Approximate Word count = 2226
Approximate Pages = 9 (250 words per page)

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