Starbucks and Mcdonalds - Essay Example

Business    Topic:  Starbucks and Mcdonalds Contents Business    Topic:  Starbucks and Mcdonalds Contents Starbucks and McDonalds 2 Conclusion 3 References 4 Bibliography 4 Starbucks and McDonalds Starbucks and Mc Donald’s are both global leaders in their category having formidable brand image and having a global presence across the globe. Starbucks offering includes coffee, sandwiches and other beverages mainly tea and coffee (Starbucks, 2011). McDonalds on the other hand focuses on fast food products like burgers and fries (McDonalds, 2011).

McDonalds and Starbucks both have a service mix that is based on the ‘glocalisation’ strategy of thinking globally and acting locally in international markets (Culpan, 2002, p.60). McDonalds essentially uses local tastes and flavors in its menu for various locations. One classic example in this regard can be found in the company’s business strategies in India. Indian customers are sensitive about their cultural faiths and beliefs. It so happens that Indian customers consider beef eating against their religious sentiments and are very particular about this aspect.

Realizing this aspect McDonalds has prepared a localized menu list for the Indian market that does not include beef based products. This assumes significance considering the fact that Most of the items in the menu list of the company include beef based products (Mukherjee, 2009, p. 147). In addition to this the company also has store designs and promotional content that includes local tastes and sentiments. Each of the consumer market has a separate website catering the local needs and sentiments of the consumers.

The names of the store and menu items displayed on the store are also displayed in local languages to suit the local tastes and sentiments of the customers with varied tastes and preferences (Koh, 2010, p.44). Starbucks also follows a ‘glocalised’ approach in its international business strategies. The company’s international expansion strategy always involves doing business in partnership with a local partner. The local partner gets complete freedom with regards to the choice of the location and promotional content.

This ensures that local cultural aspects and sentiments are respected that helps generate a formidable image of the company in the minds of the target market audience. While selecting partners the company believes in ensuring a synergy between the cultures of the partners so as to ensure global standards in service with a local touch and flavor. Starbucks stores contain localized menu apart from store designs that are essentially designed by the local partner ensuring that local tastes and sentiments are looked upon helping generate a formidable image of the brand in the minds of the target market audience (UW Business School, 2003, p.7-8). Conclusion The analysis of the international business strategies of Starbucks and McDonalds reveals strong respect for local culture and traditions and a ‘glocalised’ approach in international markets.

Mc Donald’s initially did not use this strategy and as reflected from its experience in India, the company was forced to make an exit from the nation after it introduced beef based products in India that was against local customs and traditions. The same company when re launched the brand in India used the ‘glocalised’ approach and removed beef from its menu list making it an instant success in the market (Parasuraman & Grewal, 2004, p.41). This fallout lesson was perhaps correctly understood by Starbucks and it always followed a ‘glocaslied’ approach in its international marketing strategies generating sustainable competitive advantage and creating a global brand image.

References Culpan, R. (2002). Global business alliances: theory and practice. Greenwood Publishing Group. Koh, A. (2010). Tactical Globalization: learning from the Singapore Experiment. Peter Lang. McDonalds. (2011). Food :: McDonalds.com. Retrieved November 29, 2011 from http://www.mcdonalds.com/us/en/food.html. Mukherjee, K. (2009). Product Management: Text And Cases. PHI Learning Pvt. Ltd. Parasuraman, A. & Grewal, D. (2004). Marketing Research, First Indian Adaptation. Dreamtech Press.

Starbucks. (2011). Starbucks Coffee Company. Retrieved November 29, 2011 from http://www.starbucks.com/. UW Business School. (2003). Starbucks Corporation: Competing in a Global Market. Retrieved November 29, 2011 from http://faculty.bschool.washington.edu/skotha/website/cases%20pdf/starbucks_Intl%20copy.pdf. Bibliography Gaspar, J.E. (2005). Introduction to Business. Cengage Learning. Kapferer, J.N. (2008). The new strategic brand management: creating and sustaining brand equity long term.

Kogan Page Publishers. Langford, D. & Male, S. (2008). Strategic Management in Construction. John Wiley and Sons.