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A Global Brand Assessment of McDonalds - Case Study Example

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The author of the paper "A Global Brand Assessment of McDonald’s" states that McDonald’s global branding is being impacted by its foreign operations more than McDonald’s is impacting them. This potentially indicates a concern as the company is losing parts of its branding identity…
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Download file to see previous pages McDonald’s was once a small business that grew into the world’s largest fast-food chain. Every step in this growth path included decisions represented by the ongoing development and refinement of global strategy and branding components. This study will examine these two components (global strategy and branding) to uncover their business and societal implications. The above will also include the key characteristics, advantages, and disadvantages; along with the risks and benefits McDonald’s faces globally. In reviewing and assessing the above, the branding strategy of McDonald’s will be compared against literature information on global branding along with the societal impact of the company’s branding strategy. The above areas will provide information to analyze McDonald’s global branding strategy and its impact on revenues, brand equity as well as marketplace perceptions. As a fast-food concept that spans 73 years, McDonald’s has managed to take a basic set of food staples (hamburgers, French fries, and sodas) and turn it into a $27,567 billion operation serving 69 million customers daily in 119 countries through more than 33,000 outlets (McDonald’s, 2012). The revenues from foreign operations totaled $9,939 billion or 36 percent of overall revenues in 2012 (McDonald’s, 2012). The contribution of foreign sales to the company’s revenue stream is significant and represents the arena for the continued growth of the chain as the U.S. market is basally saturated in terms of locations and sales (Campos, 2013). As shown from the revenue figures McDonald’s derives 64 percent of its sales from the U.S. market of 317,212,000 people compared against a global population of 7,129,591,000 (United States Census, 2013). In terms of global business growth, it needs to be remembered 3 billion people or around 40 percent of the global population live on less than $2.50 per day (Shah, 2013). In an assessment of the upper limits of foreign McDonald’s restaurants, there are 14,000 out of the global total of 33,000 located in the U.S (Rosenberg, 2013). An article in Forbes (2012) stated the chain could add a total of 10,000 more restaurants to its foreign outlet base which would bring the total to 29,000 as a saturation point. This estimate took into account consumer affordability calculated at over $10,000 per annum or $25 per day as the affordability cutoff point representing 13 percent of the global population or 600 to 650 million people outside of the U.S. (Forbes, 2012). McDonald’s has been the subject of dietary and societal debates over the nutrition content of its food (Arthur Page, 2007). The chain is facing stiff competition from competing for fast food items such as fast food pizza and the need to continually recruit each new generation to buy into the McDonald’s menu (Henage, 2012). Concerning nutrition, McDonald’s has been under fire since 2005 over the trans fat oil used in the preparation of its food, its use of preservatives and the fact that nutritionally its menu is unhealthy for children and adults (Arthur Page, 2007). In a documentary titled “Super Size Me,’ Morgan Spurlock spent a month eating just McDonald’s (Robbins, 2010) Examinations by physicians determined he gained 25 pounds and suffered severe increases in cholesterol levels, fatty liver accumulation, heart palpitations and other symptoms (Robbins, 2010). ...Download file to see next pages Read More
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