McDonald's Franchising Practices | International Marketing Case Studies

Details

Mini Case Code : CLIM006
Publication date : 2005
Subject : International Marketing
Industry : Fast food services
Length : 03 Pages
Price : Rs. 100

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Key words:

McDonald's, food service organizations, fast food segment, franchising, franchisees, franchiser, restaurant operations, franchisee model, international markets, restaurant businesses, parent company, franchisor, Hamburger University, national marketing, customizing the menu, constant improvisation, customization

Note

* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

Abstract:

The caselet discusses the franchising model adopted by McDonald's. It details the franchising methods and procedures followed by the company, which enabled it to become the world's leading fast food restaurant chain. The caselet also describes the company's relationship with its franchisees and how this helped in the smooth functioning of its business practices.

Issues:

» Franchising by McDonald's
» How franchising can be used for global expansion
» Relationship between McDonald's and its franchisees
» How training can help improve the franchising process

Introduction

In 2004, McDonald's was one of the largest food service organizations in the world. By 2004, it operated more than 30,000 restaurants in around 119 countries and served 47 million customers every day...

Questions for Discussion:
1. McDonald's strongly believes that its success depends on the success of its franchisees. Discuss the kind of support given by McDonald's to its franchisees to run their businesses successfully.

2. McDonald's is very particular in the selection of franchisees and expects high quality performance from them. Discuss the procedure followed by McDonald's to select franchisees.

McDonald's Franchising Practices*