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Transcription of this question: 4.”Think locally, grow globally”TO avoid negatively affecting sales, McDonaldSu senior managers in the United States (US)headquarters realized that they should not apply identical American standards worldwide.McDonald e must now think locally to grow globally.British-born Steve Easterbrook, head Of McDonald e in the United Kingdom (IJK), understood theneed for strategic change and prepared tactics with two objectives:• to attract new and different customers• to enhance the good value of products to appeal to customers during economic recession.One of the first tactics in the UK was the introduction of “Little Tasters ‘, which offered newproducts, in small portions, at low prices. Steve understood that young mothers, when taking theirchildren to McDonald’sV, would not buy meals for themselves because they felt the portions weretoo large. Other tactical changes, in response to customer demand, included the introduction Ofmore chicken-based products for health-conscious customers. Moreover, an improved breakfastmenu and better quality coffee attracted more price-conscious people on their way to work.These adaptations to local conditions proved successful in the UK and beyond. McDonaldSV UKhad 13 million more customers in 2010 compared to 2009, resulting in an increase in market share(during the economic recession). In Other host countries McDonald’sV also successfully implementedits “think locally, grow globally” strategy For example, it successfully launched products made fromlocal produce and suited to local tastes such as the “Maharaja Maci M” in India, the “McL0bster inCanada and the “Ebi Filet-O” (a shrimp burger) in Japan.At the same time McDonald e launched a “global uniform initiative” to redecorate its restaurantswith uniform appearance. McDonald ‘sv still tries to maintain the global recognition and the qualityOf its global brand. Local construction material and local labour are used, as well as different colours,comfortable armchairs and free Internet access. Other multinational food and drink companies, suchas KFCÉ and Starbucksr, are also using a similar strategy to the “think locally, grow globally” strategyused by McDonald e(a)(b)(c)(d)Describe two possible factors that have contributed to the growth Of globalization.Draw the Ansoff matrix and use it to explain two Of the growth strategies usedby McDonaldAnalyse the possible impacts Of multinational companies like McDonald e onthe host countries.Discuss the effectiveness of the “think locally, grow globally” strategy usedby McDonald[4 marks][6 marks][6 marks][9 marks]

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