1.1 Company Profile
In terms of both revenue and brand value, McDonald’s founded in California in 1940 with its headquarters in Oak Brook, Illinois is arguably the most well-known fast food chain in the world. The company serves a locally relevant-menu of various food items, soft drinks and other beverages. The corporation is so globalized that the Big Mac Index is a standard indicator for measuring the purchasing power parity between countries.[1]
To obtain operational growth, McDonald’s works aggressively on becoming a 95% franchise entity by 2018. Approximately 235.000 people were employed as of year-end 2017 in the 36.000 stores in 120 different countries. With its franchise model, the corporation is similar to a large real estate company which is structured into four segments: the largest market is the United States; international lead markets including France, UK, Canada, Australia and Germany; the high growth markets including China, Italy, Poland, Russia, South Korea, Spain, Switzerland, Netherlands and the foundational markets, including 100+ countries are also relevant.[2]
Although the annual revenues are decreasing from year to year, the company’s profitability shows a positive development. In the restaurant industry, McDonald’s generates a significant part of the company’s operating income outside the United States. With a regard for volatility risks in connection with foreign currency changes, the effective income tax rate for 2018 is expected to be in the 25-27%. Nevertheless, there are no significant capital investments required through the gains in franchisee royalties[3] to attempt benefits for McDonald’s shareholders for the long term.[4]
Table of content
1 Internationalisation of McDonald’s
1.1 Company Profile
1.2 News-related influences and major competitors
2 Cultural challenges
2.1 Key external drivers in the I/R Framework
2.2 Classification into a corporate culture typology
3 Critical Evaluation and strategic obstacles
3.1 Market selection and entry mode
3.2 Timing and allocation
3.3 IMGT classification
4 Conclusion
Bibliography
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