Answer 2)

Mcdonalds in France Introduction The case is about the entry and expansion strategy of the world's leading fast food restaurant chain McDonald's in France. McDonald's built its first restaurant in the country in 1979 in Strasbourg. Since then, it has been expanding steadily in France by providing outstanding quality, service, and value to its customers. For McDonald's other than its home market, the US, France was the largest growth market with 1,161 restaurants as of 2009. This was despite there being various cultural differences between the company's home market and France, and its entry into the French market being initially viewed as an invasion of American culture in a country known for its rich heritage of cuisine. Report The company's strategy in France was to focus on local menu options, convenience, and value. The case details various aspects of the operational strategies of McDonald's in France and the different localization strategies adopted by the company. It also lists the various challenges faced by McDonald's in France. In 2008, France became the biggest source of revenue for US-based fast food giant McDonald's Corporation (McDonald's) outside of the US. According to figures released by the chain, in 2008, McDonald's generated sales of 3.35 billion from its 1,115 outlets in France and profits increased by 3%. During the same year, McDonald's opened thirty new restaurants in France which increased footfall by 11% to 450 million customers.4 CEO of McDonald's France, Jean-Pierre Petit (Petit), said, "We are the second largest contributor to Group results. We have a 50% growth in five years." Founded in 1940, McDonald's is the world's largest chain of fast food restaurants, serving more than 58 million customers daily as of 2009. McDonald's primarily sells hamburgers, chicken products, French fries, breakfast items, soft drinks, shakes, and desserts. As of 2009, it had established more than 30,000 franchising stores in 119 countries with revenues of about US$15 billions annually. According to some analysts, McDonald's entry into the French market in 1979 was seen as an invasion of American culture in a country known for its rich heritage of cuisine. "It has been tough for us to become integrated in the French market. The focus we had at the beginning was to open more stores and to get suppliers, and we were attacked because we had this image of globalization," said Eric Gravier, vice-president of McDonald's France, in 2008. However, McDonald's popularly known as McDo in France, attracted French diners and boosted its sales by responding to the preferences of the locals, tailoring its menu to suit local tastes, remodeling its restaurants, and adding new menu items.

Mcdonalds in the United Kingdom Introduction The case focuses on the strategies adopted by the world's leading fast food restaurant chain McDonald's Corporation in the UK. McDonald's entered the UK in 1974 with its first restaurant in Woolwich in south-east London. Since then, McDonald's had been expanding steadily in the UK by providing quality, service, and value to its customers. As of 2009, McDonald's managed about 1200 restaurants in the UK including 700 drive-through outlets. For McDonald's, the UK was one of the challenging markets but as of 2009, it was one of the most promising markets for the fast food chain. The case details the various strategies adopted by McDonald's in the UK including its operational, localization, promotional, and employee-related strategies. In 2003, McDonald's adopted the 'Plan to Win' strategy in the UK market in order to increase sales. As part of the 'Plan to Win' strategy, McDonald's offered variety and value, tastier food, and improved service to customers. To cater to the health-conscious customers in the UK, McDonald's introduced healthier options such as salads and provided nutritional information about its products on food packages. It regularly altered its menu to include new items. In order to attract British customers, McDonald's tried to localize some of the items on the menu. It offered a few versions of local food on its menus. For the health conscious English customers, items such as the Vegetable Deluxe burger were offered. In the desserts category, McDonald's UK offered as many as three kinds of donuts as these were popular with British customers. The case concludes by identifying the challenges faced by McDonald's in the UK. McDonald's faced several challenges in the UK. One of the major problems was consumers' perceptions about McDonald's as a promoter of obesity. The chain drew criticism from consumers as its products were considered to be high in fat content and hence detrimental to health. Critics alleged that McDonald's promoted unhealthy food. The company also faced intense competition from other fast food outlets in UK which offered healthy food along with a trendy atmosphere. Report For the first quarter ended March 31, 2009, US-based fast food chain McDonald's Corporation (McDonald's) delivered strong sales growth in the UK despite the global economic recession. During the period, McDonald's business in Europe registered a 3.2% rise in sales and its global profits increased by 4% to US$ 979.5 million. It was reported that McDonald's growth in the UK was above the European average in terms of sales as well as customer count. In the UK, cost-conscious customers flocked to McDonald's restaurants as they offered different menu choices at affordable prices. Commenting on its business in the UK, Steve Easterbrook (Easterbrook), CEO of McDonald's UK, said, "This marks our twelfth

consecutive quarter of growth and has been achieved at a time when the informal eating out market in the UK was flat." The UK was one of the key markets for McDonald's. The fast food giant entered the country in 1974, at a time when American-style fast food was not too popular in the country. The British considered McDonald's entry a part of the American cultural invasion and so McDonald's faced some start-up problems in the country. During its first year in the UK, McDonald's reported losses as it failed to attract English customers. In order to enhance its brand reputation in the UK and to improve sales, McDonald's focused on four core areas - food, employees, the environment, and communities. It introduced several new items on the menu, revamped restaurants, launched community programs, and introduced accredited qualifications and apprenticeships for its employees in the UK.