International Fast Food Company Essay Example | Topics and Well Written Essays - 2500 words

International Fast Food Company - Essay ExampleIn 1953, McDonalds Fast Foods most successful restaurant in Arizona was franchised. Similarly, the restaurant located at California was franchised. The outright success of the McDonalds was with the origination of Ray Kroc who entered into partnership with Mac and Dick (Love, 2008). He was given the right to expand the franchise. Owing to this new partnership, McDonalds opened its new class outside America specifically Richmond Colombia. This was the first incessantly branch outside America. It is amazingly interesting to note that by 1963 the McDonalds had more than 100 fast food restaurants worldwide. It was between 1960 through 1970 when significant harvest was marked. This may have been due to the massive advertising strategies that were adopted by McDonalds ads team. Kroc played a major role in advertising McDonalds products making them the most admirable ads in the world. He also developed the Golden arches logo in 1962. In 19 63, McDonalds introduced the red haired wit which attracted a massive appeal from children and the youth. Later on as the years progressed, Kroc opted to buy out McDonalds brothers for a total cost of $2.7 million. 2. Rationale behind internationalistization McDonaldsinternational strategy is instaurationd on the recognition of the available opportunities in overseas commercialize and not because their home market is already saturated. In fact, McDonalds established franchised markets internationally because it needed to capitalize on available opportunities particularly among the rapidly growing populations in Asia. It is worth noting that while choosing markets McDonalds preferred whose prospects for expansion were optimal. For this reason, McDonalds entered into international markets. When Kroc solely began owning the company, he knew well that the success of McDonalds fast food company was dependent on its ability to grow rapidly amid an ever widening competitive environment. Therefore, he began to offer franchises. As a result, several franchised McDonalds opened up in various parts of the world. For instance, one such franchised branch opened up in the U.K. in1986. To date, close to 70% of all McDonalds outlets worldwide are franchised. Today, McDonalds boasts of having more than 120 restaurants and a customer base of over 60,000 people there was a need to employ intensive franchising as a means of promoting products and building a brand name. 3. Market intromission strategy McDonalds Fast Foods Company envisions placing itself strategically with an aim of becoming a superior performer in the world market. McDonalds franchise market entry strategy has always been informed by the customer base and room for expansion. In fact, the company is guided by their interest on low performance cost while at the same time guided by their choice to serve their customers at their convenience (Pride & Ferrell, 2012). It prefers the use of franchise because once th e market is established, it will be easier to modify and adapt to customers local tastes and preferences. McDonalds has used this strategy in Saudi Arabia and Indonesia with success. As mentioned earlier in this discussion,