International Fast Food Company Essay Example | Topics and Well Written Essays - 2500 words

International Fast Food Company - Essay Example In 1953, McDonald’s Fast Foods’ most successful restaurant in Arizona was franchised. Similarly, the restaurant located at California was franchised. The outright success of the McDonald’s was with the entry of Ray Kroc who entered into partnership with Mac and Dick (Love, 2008). He was given the right to expand the franchise. Owing to this new partnership, McDonald’s opened its new branch outside America specifically Richmond Colombia. This was the first ever branch outside America. It is amazingly interesting to note that by 1963 the McDonald’s had more than 100 fast food restaurants worldwide. It was between 1960 through 1970 when significant growth was marked. This may have been due to the massive advertising strategies that were adopted by McDonald’s ads team. Kroc played a major role in advertising McDonald’s products making them the most admirable ads in the world. He also developed the Golden arches logo in 1962. In 1963, McDon ald’s introduced the red haired wit which attracted a massive appeal from children and the youth. Later on as the years progressed, Kroc opted to buy out McDonald’s brothers for a total cost of $2.7 million. 2. Rationale behind Internationalization McDonald’s  international strategy is based on the recognition of the available opportunities in overseas market and not because their home market is already saturated. In fact, McDonalds established franchised markets internationally because it needed to capitalize on available opportunities particularly among the rapidly growing populations in Asia. It is worth noting that while choosing markets McDonalds preferred whose prospects for expansion were optimal. For this reason, McDonalds entered into international markets. When Kroc solely began owning the company, he knew well that the success of McDonald’s fast food company was dependent on its ability to grow rapidly amid an ever widening competitive enviro nment. Therefore, he began to offer franchises. As a result, several franchised McDonald’s opened up in various parts of the world. For instance, one such franchised branch opened up in the U.K. in1986. To date, close to 70% of all McDonald’s outlets worldwide are franchised. Today, McDonald’s boasts of having more than 120 restaurants’ and a customer base of over 60,000 people there was a need to employ intensive franchising as a means of promoting products and building a brand name. 3. Market entry strategy McDonald’s Fast Foods Company envisions placing itself strategically with an aim of becoming a superior performer in the world market. McDonalds’ franchise market entry strategy has always been informed by the customer base and room for expansion. In fact, the company is guided by their interest on low production cost while at the same time guided by their choice to serve their customers at their convenience (Pride & Ferrell, 2012). It prefers the use of franchise because once the market is established, it will be easier to modify and adapt to customer’s local tastes and preferences. McDonalds has used this strategy in Saudi Arabia and Indonesia with success. As mentioned earlier in this discussion,