International Marketing Assignment Example | Topics and Well Written Essays - 2500 words

International Marketing - Assignment exerciseIt was started in 1940 by Dick and Mac McDonald as the drive-in McDonalds Bar-B-Q restaurant in California, with the up-to-date restaurant format debuting in 1948 at the same location. In 1949, it introduced its legendary French Fries and ternion Thick Milkshakes. In 1954, the lodge franchised for the first time through Ray Kroc, which marked the beginning of quick expansion of its business. In just four years, it expanded from 100 outlets in 1959 to 500 outlets in 1963. It went customary in 1965 and began international operations in Canada in 1967. By 1983, McDonalds operated 7778 outlets and as of 2011, it operates 34000 outlets in 118 countries just about the world, of which 80% are franchised (McDonalds, 2013a McDonalds, 2013b). It has 1.8 million employees and is listed in all major stock exchanges such as, NYSE and LSE (NYSE Euronext, 2012 capital of the United Kingdom Stock Exchange plc, 2013). McDonalds offers a variety of p roducts in its home country of U.S such as, hamburgers, sandwiches, wraps, fried chicken items, salads, oatmeal breakfast, burritos, hotcakes, French fries, coffee, smoothies, yogurt, milkshakes, juices, ice cream, pies and cookies. Most of the products are functional worldwide, with a few exceptions. On the other hand, it offers regional products in various countries that are not available in the U.S. Some of the country-specific products involve McArabia wrap in the Middle East, McSpicy Paneer burger in India and Bubur Ayam chicken porridge in Indonesia (McDonalds, 2013c McDonalds, 2013d McDonalds India, 2013a McDonalds Indonesia, 2013). Rationale do-nothing internationalization Since its inception, get ahead maximization was one of the prime motives of the business model, besides gaining maximum market share and attaining a big service network. Throughout its history, McDonalds Corporation received a hugely positive reception and enjoyed a virtually competition-free environ ment during its growth, with the only direct competitor being blank Castle that operated since 1921. The global entice of U.S. and the American culture being perceived as the right way of life also triggered a positive brand image of the company outside U.S., even before it began international operations. Thus, the rationale behind internationalization of McDonalds Corporation can be summarized as profit maximization, market share maximization, fashioning good use of the positive brand image created internationally and gaining first movers reinforcement in foreign countries. Today, the company operates in 118 countries and is considered as a symbol of American culture (McDonalds, 2013a White Castle Management Co., 2013). Mode of entry in foreign countries The different modes of entry that are available to a company are exporting products and distributing through a regional outlet, contracting another company to set up the complete business infrastructure for the entering company in exchange for a fee (known as a turn-key project), teaming up with a local partner to jointly share investments and wage (known as joint