Economic Theory of Marketing Control and Business Essay

Economic Theory of Marketing Control and Business - Essay Example It is pointed out that franchising has certain benefits. Firstly, it allows distinctive competency, then quick expansion, uniform operation-standardisation, and lastly, same food experience (Funding Universe, n.d). Admittedly, McDonald’s has adopted franchising as a way of expansion. In this franchising, the parent company sells the right to distribute its products and to use its trade name to smaller businesses around the world. McDonald’s organisational culture is the culture the parental company transmits to its franchisees. The company operates according to four values; quality, service, convenience, and value. Though the company has enforced these basic values into all its franchisees, the franchisees are allowed to incorporate local culture into their marketing and products (McDonalds. Com, 2011) Another point is that the company hires local people for its regional operations so that they become able to make the company a good image in the local community by adopt ing locally accepted working culture, salaries, products and communication. There are two points that deserve attention here; firstly, the company seeks to offer the same product offerings around the world, and secondly, it intends to offer the same food experience for all customers. There are various reasons that prompt the company to go global. They are to gain more brand and shareholder value, to have more sources of income and growth markets, to lessen its dependence on the home market, to leverage the existing corporate technology, supply chains, knowledge and intellectual property, and to find better acceptance in the home country by being global. Thus, as cited in Ghosh et al (n.d), presently, McDonald’s holds 19% of the global fast food market followed by Doctor’s... As the paper discusses  McDonald’s has adopted franchising as a way of expansion. In this franchising, the parent company sells the right to distribute its products and to use its trade name to smaller businesses around the world. McDonald’s organisational culture is the culture the parental company transmits to its franchisees. The company operates according to four values; quality, service, convenience, and value. Though the company has enforced these basic values into all its franchisees, the franchisees are allowed to incorporate local culture into their marketing and products.From this research it is clear that McDonald’s holds 19% of the global fast food market followed by Doctor’s Associates with 10%, and Yum Brands with 9%. Other important players are Wendy’s, Burger King, and Dominos. The remaining market is held by companies which are local in nature. It seems that McDonald’s has adopted two strategies since 2003 to keep up with t he changing international market. The first strategy is to introduce new foods and concepts as opposed to loyalty to traditional foods. As a pat of this strategy, the Premium Chicken Sandwiches and Angus Beef Burger took birth. In addition, there was the addition of premium salads. The second major strategy was to focus on increasing sales at its existing restaurants instead of starting new ones. As a part of it, the company remodelled its many restaurants, increased working hours, and raised the options on menus.