International Marketing Assignment Example | Topics and Well Written Essays - 2500 words

International Marketing - Assignment ExampleIt was started in 1940 by puppet and Mac McDonald as the drive-in McDonalds Bar-B-Q restaurant in California, with the current restaurant format debuting in 1948 at the same location. In 1949, it introduced its legendary french Fries and Triple Thick Milkshakes. In 1954, the company franchised for the first time through Ray Kroc, which marked the beginning of rapid expansion of its business. In on the dot four years, it expanded from 100 outlets in 1959 to 500 outlets in 1963. It went public in 1965 and began international operations in Canada in 1967. By 1983, McDonalds operated 7778 outlets and as of 2011, it operates 34000 outlets in 118 countries around the world, of which 80% are franchised (McDonalds, 2013a McDonalds, 2013b). It has 1.8 million employees and is listed in all major stock exchanges such as, NYSE and LSE (NYSE Euronext, 2012 London Stock Exchange plc, 2013). McDonalds offers a variety of products in its home country o f U.S such as, hamburgers, sandwiches, wraps, fried chicken items, salads, oatmeal breakfast, burritos, hotcakes, French fries, coffee, smoothies, yogurt, milkshakes, juices, ice cream, pies and cookies. Most of the products are available worldwide, with a few exceptions. On the other hand, it offers regional products in various countries that are not available in the U.S. Some of the country-specific products include McArabia wrap in the kernel East, McSpicy Paneer burger in India and Bubur Ayam chicken porridge in Indonesia (McDonalds, 2013c McDonalds, 2013d McDonalds India, 2013a McDonalds Indonesia, 2013). Rationale behind internationalization Since its inception, profit maximization was one of the prime motives of the business model, besides gaining maximum market section and attaining a vast service network. Throughout its history, McDonalds companionship received a hugely positive reception and enjoyed a virtually competition-free environment during its growth, with the s ole(prenominal) direct competitor being White Castle that operated since 1921. The global influence of U.S. and the American culture being perceived as the right way of life history also triggered a positive brand image of the company outside U.S., even before it began international operations. Thus, the rationale behind internationalization of McDonalds Corporation can be summarized as profit maximization, market share maximization, making good use of the positive brand image created internationally and gaining first removal companys advantage in foreign countries. Today, the company operates in 118 countries and is considered as a symbol of American culture (McDonalds, 2013a White Castle Management Co., 2013). humour of entry in foreign countries The different modes of entry that are available to a company are exporting products and distributing through a regional outlet, detection another company to set up the complete business infrastructure for the entering company in excha nge for a fee (known as a turn-key project), teaming up with a local partner to jointly share investments and profits (known as joint