Cultures adapted by mc donalds

1. Culture adapted by McDonalds in different
Nations
By:
1) Ankita Gobburkar
2015MBA0144
2)PEDA BABU VADIYALA
2015MBA0155

2. Company Profile
• The McDonald’s Corporation is the world’s
largest chain of hamburger fast food restaurants.
• Headquarters in the United States, the company
began in 1940 as a barbecue restaurant opened
by Richard and Maurice McDonald. In 1948 they
reorganized their business as a hamburger stand
using production line principles.

3. • McDonald's restaurants-118 countries and
territories around the world and serve 68 million
customers each day.
• Restaurants worldwide- 36,615
• Company-owned locations - 6,056
• Franchised locations -30,559
• Employing more than -420,000 people.
• The company also operates other restaurant
brands, such as Piles Café.

4. • McDonald's primarily sells
hamburgers, cheeseburgers, chicken
products, french fries, wraps, breakfast items, soft
drinks, milkshakes, and desserts.
• In response to changing consumer tastes, the
company has expanded its menu to include salads,
fish, wraps, smoothies and fruit.
• The McDonald's Corporation revenues come from
the rent, royalties, and fees paid by the franchisees,
as well as sales in company-operated restaurants.

5. Types of restaurants
McDrive
• In some countries, "McDrive" locations
near highways offer no counter service or seating. In
contrast, locations in high-density city neighborhoods
often omit drive-through service. There are also a few
locations, located mostly in downtown districts, that
offer a "Walk-Thru" service in place of Drive-Thru.

6. McCafé
• McCafé is a café-style added to McDonald's
restaurants. Most of the McDonald's in Australia
have McCafés located within the existing
McDonald's restaurant.
• In other countries, there are McCafés in every
store.
• After upgrading to the new McCafé look and
feel, some Australian stores have noticed up to a
60 percent increase in sales. At the end of 2003
there were over 600 McCafés worldwide.

8. McExpress
• Some locations are connected
to gas stations/convenience
stores, while others
called McExpress have limited
seating and/or menu or may
be located in a shopping mall.
Other McDonald's are located
in Walmart stores.
• McStop is a location targeted
at truckers and travelers which
may have services found
at truck stops

9. McTrax
• In the Netherlands, McDonald's has introduced
McTrax that doubles as a recording studio; it
reacts to touch. They can create their own beats
with a synth and tweak sounds with special
effects.

10. Mcdonalds China

11. The Chinese eat everything with four legs,
except tables, and everything that flies,
except airplanes.”
— Anon.

12. McDonalds in China
• McDonald's made a venture into China in 1990. In
China of the 90's ancient belief systems rooted in
Confucianism and Taoism were intermingling with
Western ideologies, through the narrow window
opened up by the Communist government at the
helm.
• The interactions between the McDonald brand, and
the Chinese cultural value system, combined to
provide a synergy that resulted in some interesting
developments. While in some cases McDonald's
became an upholder of traditional values, while in
other situations, McDonald's became an appropriate
medium for consumers to explore new beliefs and
ways of acting.

13. • McDonald's made a departure from the hierarchical
set up of the dining experience in traditional Chinese
restaurants, based on considerations of age. In
McDonald's the seating arrangements were open,
and everyone having equal access as to where to sit
and what to order. In this case McDonald's
encouraged the Chinese to make a departure from
tradition.
• The lack of alcohol served in McDonald's led some
consumers, primarily Chinese women, to embrace
being able to be on a more equal footing with men
while eating. In this case McDonald's upheld a
traditional Chinese custom.

14. • McDonald's success in China is based on a five-
point strategy focused on product, price, people,
promotion and place.

15. PRODUCT
• McDonald's product strategy consists of three
categories. First they try to reflect the tastes and
customs of the local markets by offering different
kind of menus.
• The Chicken McNuggets in China come with the
traditional BBQ, Sweet & Sour, and Honey Mustard
sauces, but there's also a Chilli Garlic Sauce, which is
very popular in China.
• 2001 McDonald's Vegetable and Seafood Soup and
Corn Soup were introduced. I think that these menu
items were introduced because it was in line with
their culture and love for foods with exotic taste.

16. • Furthermore McDonald's went on to introduce a
local; version of its "Dollar Menu" calling it the
"Value Menu." This also proved a successful
concept as most Chinese people are short, tiny in
physique and very health conscious. The regular
sized meals in the US and other parts of the
world suited the BMI (Body Mass Index) height
and weight of the average customer. Remember,
Chinese people in general are not big eaters thus
the reason for McDonald's offering a smaller and
cheaper variation of the original product.

17. • Due to the urbanization and overpopulated cities,
China has many problems with vehicles and
parking. McDonald's opened restaurants and
dessert kiosks targeting foot-travelers and the
general working class.
• Secondly, McDonalds also tries to provide
information about their products. In cooperation
with their global nutrition team, their local business
units develop and implement nutrition information,
which can be found on the packaging of the
products. The packaging provides information on
key nutritional values in a simple and clear format,
so that customers around the world can use the
information to make menu choices that suit their
preferences.

18. • Also other communication tools are used, such
as advertising both on television as on the World
Wide Web to give information about the quality
of their food products.

19. PRICE
• The conventional wisdom about China is that most
consumers are highly sensitive to price. As a result, a
decrease in burger prices is likely to be more
effective than a big marketing campaign. To
convince Chinese consumers coming to McDonald's,
McDonald's lowered prices for its basic menu
consisting of a hamburger, fries and drink from
12.50 Yuan to 10 Yuan. (Scott Hume, 2007)
• Across China there are a lot of differences in
purchasing power. Therefore McDonald's China is
also exploring menu pricing by taking into account
both market and restaurant.

20. PEOPLE
• McDonald's provides employment and growth
opportunities for a lot of people, more than 1.5
million worldwide. Entering the Chinese market
they can give many people the opportunity to
operate in their restaurants.
• They focus also on training and development,
which is necessary to learn the required skills, to
do their jobs well. McDonald's has its own
learning academy, namely the Hamburger
University (HU), where a leadership development
program is established based on Western
management practices.

21. PLACE
• There are two important evolutions concerning this subject.
First evolution is to open McDonald's China 24 hours a day.
Presently, more than 400 restaurants of the 800 restaurants in
China have provided services for 24 hours a day. In Beijing
40% of the company's stores open their business for 24 hours.
In Shanghai 50% and in Guangzhou 60% have a 24-hour
service.
• The major reason for opening 24-hour restaurants is to meet
the demand by the customers, because more and more
customers need the services at night because of their
changing living habits.
• In Beijing customers actually weren't eager for the night
service due to the relatively cold weather there at night. This is
different from the customers in the warmer southern China.

22. McDonalds in Japan

23. • In 1971, Den Fujita opened the first McDonald’s
establishment in Japan.
• “To be Japanese is to eat Japanese food. Rice is
so symbolically central to Japanese culture that
Japanese say they can never feel full until they
have consumed their rice at a particular meal or
at least once during the day.” And yet, Fujita
thought he had something when he decided to
open the first McDonald’s in Japan.

24. • Food preferences, in the past, were considered
culturally oriented. With the globalization and
success of franchises abroad, McDonald’s has
proven that tastes can change. The corporate
culture of the organization affected how the
organization coped with competition and
changed.
• When the first franchise opened in Japan, the
menu consisted mostly of items similar to those
in the United States. In effort to increase sales,
McDonald’s restaurants experimented with
different food items such as Chinese fried rice,
curried rice with chicken, and fried egg burgers.

25. • McDonald’s Japan preserved the original
McDonald’s concept, but did apply slight
adjustments to the menu in order to comply with
Japanese taste. McDonald’s Japan introduced
the Teriyaki Burger, the Rice Burger and,
amongst other products, Green Tea ice-cream.

26. • Except for slight changes in the menu, other
differences emerged between McDonald’s US and
McDonald’s Japan. These differences relate to how
McDonald’s restaurants were perceived by Japanese
consumers.
• In “McDonald’s in Japan: Changing Manner and
Etiquette”, Japanese consumers consider
McDonald’s products as snacks rather than
considering them to constitute a ‘real’ meal.
• McDonald’s therefore did not pose a serious threat
to the Japanese lunch or dinner market.

27. Several factors explain this perception of
McDonald’s products as snacks.
• The first important reason is that most products
on the McDonald’s menu, such as hamburgers,
cannot be shared amongst several people.
Sharing is an important part of Japanese dinner
or lunch time, because it brings a sense of
community.

28. • Secondly, McDonald’s food consists mostly of meat
and bread. The majority of the Japanese population
does not consider meat as a part of their traditional
lifestyle; it is typically considered to be part of the
Western diet. Before McDonald’s was introduced in
Japan,the combination of meat and bread was quite
alien to many Japanese. Additionally, the overall lack
of rice in McDonald’s food makes it unsuitable for a
proper dinner or lunch. According to most Japanese,
a ‘real’ meal always includes rice, which is not only
seen as good nutrition but also as an important part
of Japanese national identity

29. • McDonald’s did not only introduce a new type of
food to Japan, it also introduced a new way to
eat. The ‘table manners’ at McDonald’s clashed
with traditional Japanese ways to eat. At
McDonald’s, one eats whilst standing instead of
sitting, and uses his hands instead of chopsticks.
McDonald’s also made it more common to drink
soda’s directly out of the bottle, and to finish a
meal with some ice-cream. Although many facets
within this new style of eating were initially
associated with bad etiquette, McDonald’s
turned them into something trendy

30. Two fast food restaurants have gone to war.
• McDonald’s Japan has launched a limited edition
black Halloween cheeseburger to rival Burger King
Japan’s updated Kuro burger which, as of September
19, now comes with black cheese.
• Black’s clearly in vogue in the food world.
• The McDonald’s burger is called the Ikasumi – or
squid-ink – burger and it comes with a black squid
ink bun, two beef patties, a slice of (yellow, missed a
trick) cheese, a spicy yellow sauce and fried onions.

31. KFC Burger King

32. McDonalds

33. • Ikasumi, or squid ink, is a dark pigment that's
released by squid as an escape mechanism when
they feel threatened. It's a popular ingredient in
Japanese cuisine that's a relatively new addition
to the Japanese diet.