Question: Please respond to these two posts. Do not just say you agree and not. Write response to these two posts. A)McDonald's appears to initially use
Please respond to these two posts. Do not just say you agree and not. Write response to these two posts.
A)McDonald's appears to initially use a global standardization policy when opening its first French location in 1979. Then in 1995, they appear to have transitioned to a localization strategy. Using ingredients such as French cheeses and mustards lead to McDonald's "winning the hearts of French consumers.". By adapting it's menu offerings to French tastes which understanding cultural differences, such as 10% of meats being eaten outside of homes in France, McDonalds has been able to thrive.
As food and the experience of meals is so heavily engrained in French culture, the localization strategy seems to be the most appropriate of the four basic strategies. Global standardization was tried and not successful. Based on the article a transnational strategy focused on combining the benefits of localization with achieving low costs seems counter productive. To achieve market share goals and establish the appropriate dining atmosphere R&D, marketing and construction investments were critical. At some point, once brand loyalty is established through successful localization, lowering cost structure may have lesser impact.
B)McDonald's has decided to use the Franchise strategy as its entry mode in France. This allows the local restaurants to tailor their menu and atmosphere to local culture. They used the example in the book of the local McDonald's going upscale and in turn had an increase in profits. Also in India, they don't serve beef on their menu due to religious beliefs. This strategy is a great fit for a food restaurant. It uses the brand name and iconic food but still allows it to be flexible to maximize its profits with local adjustments.
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