Question

Research a company with international operations and find out the kinds of entry strategies the firm has used.

Answer 1

Let’s take McDonalds which is fast food chain with international operations. The entry strategy the firm has used is franchise business strategy for its international business. Therefore many local entrepreneurs participated in variety of new products development for its menu based on local test where ownership control of company is limited as capital requirement is high from franchises and risk is also shared with them.

McDonald’s most important entry approach is maintaining different consumer groups in different countries as they may have very different tastes and requirements. The McDonalds have separate functional geographic units in different regions. They produce and market different types of products in different areas and even have different prices. They focus more on their quality, cleanliness and values that are of similar standard for everywhere in the world at affordable price and good standard hygiene. The consumers in different countries having different foods preferences, McDonalds with coordination of franchise use to launch new products for their regional consumers. Before entering into any new market, McDonalds gathers information on various parameters of the local people like the kind of foods they enjoy, price sensitivity and their other food preferences and they re-designed the store based on these factors.