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Running head: HARRISON KEYS - BENCHMARKING PAPER
Harrison Keys - Benchmarking Paper
Harrison Keys - Benchmarking Paper
In 1954 Ray Kroc acquired the franchising rights to a well known hamburger chains called McDonalds from brothers Dick and Mac McDondald. Kroc wanted to take the company to a new level making it the largest fast food retailer in the world. In 1967 Ray decided to take the chain global opening its first international restaurant in Canada. McDonalds entered the global market successfully by keeping things simple. There are four main items to take into consideration when looking to enter a new market. They are;
(1) selecting the entry management which is right for the market;
(2) focusing on core business and traditional values which customers in existing markets have come to expect of the company;
(3) developing a local management team and adopting an approach which is in line with global business strategy but in tune with local market needs and
(4) tapping into the global infrastructure and wealth of resources of the company (Preston, 1996).
By keeping things simple McDonalds is able to maintain their brand and what it stands for. McDonalds is also able to replicate that positioning wherever they do business, by making sure each business decision supports these simple fundamentals the company had been able to keep the same business structure no matter which country they are in. McDonalds recognizes that they cannot be all things to all people, and are wary of straying from the brands identity simply to satisfy short-term demands (Preston, 1996) however they stayed in constant communications with their management team in other countries and made sure that they carried the company culture to each international country. A global brand is one that expresses the same values in all of its markets and owns a similar position vis-à-vis its competitors around...
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