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Mcdonalds Around the World EssayRay Kroc opened the first McDonalds eatery in 1955 in the united States. He offered a limited menu of high quality moderately priced food for thought served fast spotless surroundings. McDonalds QSCV (quality, service, cleanliness, and value) was a hit. The chain expanded into every assure in the nation. By 1983 it had more than 6,000 restaurants in the United States, and by 1995 it had more than 18,000 restaurants in 89 countries. In 1995 alone, the company built 2,400 restaurants, and by 2001 it had more than 29,000 restaurants in 121 countries. In 1967, McDonalds opened its first restaurant outside the United States- in Canada. Since then, its international growth accelerated. In 1995, the Big Six countries that provided about 80 percent of the international operating income were Canada, Japan, Ger many a(prenominal), Australia, France, and Britain. Yet fast food has b atomic number 18ly touched many cultures. The opportunities for expanding the market are owing(p), as 99 percent of the field populations are not yet McDonalds customers. For example, in China, with a population of 1. 2 billion people, there were only 62 McDonalds restaurants in 1995.McDonalds vision is to be the major player in food services around the world. In Europe, McDonalds maintains a small percentage of restaurant gross r all the sameue but commands a hulky share of the fast-food market. It took the company 14 years of planning before it opened a restaurant in Moscow in 1990. But the planning paid off. After the enterprisingness, people were standing in line for up to two hours for a hamburger. It has been said that McDonalds restaurant in Moscow attracts more visitors (on norm 27,000 daily) than Lenins mausoleum (about 9,000 people), which used to be the place to see.The Beijing opening in 1992 attracted some 40,000 people to the largest (28,000 square foot) McDonalds restaurant in China at a location where some 800,000 pedestrians pass by every day. Food is prepared in accordance with topical anesthetic laws. For example, the menus in Arab countries comply with Islamic food preparation laws. In 1995, McDonalds opened its first kosher restaurant in Jerusalem, where it does not serve dairy products. The render for fast food, Ameri bear style, is growing more rapidly abroad than at home. McDonalds international sales have been increasing by a large percentage every year.Every day, more than 33 million people eat at McDonalds around the world, with 18 million of them in the United States. Prices vary considerably around the world, ranging from $ 3. 81 in Switzerland to $ 0. 78 in Argentina for the Big Mac, which costs in the United States $ 2. 49. The Economist magazine as yet devised a Big Mac index to estimate whether a currency is over-or undervalued. For example, the $1. 27 Chinese Mac translates into an implied purchasing power parity of $ 4. 22. The inference is that the Chinese currency is undervalued.Here are other price comparisons for the $ 2. 49 U. S Big Mac Chile $ 2. 16, Euro area $ 2. 37, Hong Kong $ 1. 40, Japan $ 2. 01, Mexico $ 2. 37, Peru $ 2. 48, Singapore $ 1. 81 and Thailand $ 1. 27. McDonalds traditional menu has been surprisingly successful. People with diverse dining habits have adopted burgers and fries wholeheartedly. Before McDonalds introduced the Japanese to French fries, potatoes were used in Japan only to make starch. The Germans thought hamburgers were people from the city of Hamburg. Now McDonalds also serves chicken, sausage, and salads.Another item, a very different product, is pizza. In Norway, McDonalds serves grilled salmon sandwich, in the Philippines pasta sauce with frankfurter bits, and in Uruguay hamburger with a poached egg. Any new venture is risky and can be either a very profitable addition or a costly experiment. Despite the global operations, McDonalds stays in good contact with its customers, who want good taste, fast and friendly service, clean surroundings, and quality. To attain quality, so called quality assurance centers are located in the United States, Europe, and Asia.In addition, training plays an important part in customer service. Besides day-today coaching, Hamburger Universities in the United States, Germany, Britain, Japan, and Australia teach the necessary skills in 22 languages with the aim of providing coulomb percent customer satisfaction. It is interesting that McDonalds was one of the first restaurants in Europe to welcome families with children. Not only are children welcomed, but in many restaurants they are also entertained with crayons and paper, a play land, and the clown Ronald McDonald, who can speak 20 languages.With broadly speaking aging populations, McDonalds follows aim at the adult market. With heavy advertising (it has been said that McDonalds will spend $200 million to promote the new burger), the company introduced Arch Deluxe on a potato-flower bun with lettuce, onions, ketchup, tom ato slices, American cheese, grainy mustard, and Mayonnaise. Although McDonalds considers the over 50 adult burger a great success, a survey conducted five weeks after its entryway showed mixed results. McDonalds golden arches promise the same basic menu and QSCV in every restaurant.Its products, handling and cooking procedures, and kitchen layouts are standardized and strictly controlled. McDonalds revoked the first French franchise because the franchise failed to meet its standards for fast service and cleanliness, even though their restaurants were highly profitable. This may have delayed its expansion in France. McDonalds restaurants are run by local managers and crews. Owners and managers attend the Hamburger University near Chicago or in other places around the world to stop how to operate a McDonalds restaurants and maintain QSCV.The main campus library and modern electronic classrooms (which include simultaneous translation systems) are the envy of many universities. When McDonalds opened in Moscow, a one-page advertisement resulted in 30,000 inquiries about the jobs 4,000 people were interviewed and some 300 were hired. The pay is about 50 percent higher than the average Soviet salary. McDonalds ensures consistent products by controlling every stage of the distribution. Regional distribution centers purchase products and distribute them to individual restaurants.The centers will buy from local suppliers if the suppliers can meet detailed specifications. McDonalds has had to make some concessions to available products. For example, it is difficult to introduce the Idaho potato in Europe because of special soil requirements. McDonalds uses essentially the same competitive strategy in every country be first in a market and establish its brand as rapidly as possible by advertising very heavily. New restaurants are opened with a bang. So many people attended the opening of one Tokyo restaurant that the police closed the street to vehicles.The strategy ha s helped McDonalds develop a strong market share in the fast-food market, even though its U. S competitors and new local competitors quickly enter the market. McDonalds advertising campaigns are based on local themes and reflect the different environments. In Japan, where burgers are a snack, McDonalds competes against confectioneries and new fast sushi restaurants. Many of the charitable causes McDonalds supports abroad have been recommended by its local restaurants. McDonalds business structures take a variety of forms, with 66 percent of the restaurants being franchises.The development licenses are similar to franchising, but they do not require McDonalds investment. Joint ventures are undertaken when understanding of the local environment is critically important. The McDonalds Corporation operates about 21 percent of the restaurants. McDonalds has been willing to relinquish the most control to its furthermost Eastern operations, where many restaurants are joint ventures with lo cal entrepreneurs, who own 50 percent or more of the restaurant. European and South American restaurants are generally company-operated or franchised (although there are many affiliates, or joint ventures, in France).Like the U. S franchises, restaurants abroad are allowed to experiment with their menus. In Japan, hamburgers are small because they are considered a snack. The Quarter Pounder does not make much sense to people on a metric system, so it is called a reduplicate Burger. Some German restaurants serve beer some French restaurants serve wine. Some Far Eastern McDonalds restaurants offer oriental noodles. In Canada, the menu includes cheese, vegetables, pepperoni, and opulent pizza. However, these new items must not disrupt the existing operation.Despite its success, McDonalds faces tough competitors, such as Burger King, Wendys, Kentucky Fried Chicken (KFC), and now also pizza Hut. Moreover, fast food in reheatable containers is now also sold in supermarkets, delicatesse ns, convenience stores, and even gas stations. McDonalds has done very well, with a great percentage of profits coming now from International operations. For example, McDonalds dominates the Japanese market with 1,860 outlets (half the Japanese market) in 1996 compared to only 43 Burger King Restaurants.However, the British food conglomerate Grand Metropolitan PLC, which owns Burger King, haw an aggressive strategy for Asia. Although McDonalds has been in a very favorable competitive position, since 2001 the customer satisfaction level has been below that of its competitors Wendys and Burger King. In China, KFC is more popular than McDonalds. Some observers suggest that McDonalds has expanded too fast and that Burger King and Wendys have tastiest meals. It is Mr. diddly-shit Greenbergs (McDonalds top manager) task to change things around.