Business Topic: Starbucks and Mcdonalds Contents Business Topic: Starbucks and Mcdonalds Contents Starbucks and McDonalds 2
Starbucks and McDonalds
Starbucks and Mc Donald’s are both global leaders in their category having formidable brand image and having a global presence across the globe. Starbucks offering includes coffee, sandwiches and other beverages mainly tea and coffee (Starbucks, 2011). McDonalds on the other hand focuses on fast food products like burgers and fries (McDonalds, 2011). McDonalds and Starbucks both have a service mix that is based on the ‘glocalisation’ strategy of thinking globally and acting locally in international markets (Culpan, 2002, p.60).
McDonalds essentially uses local tastes and flavors in its menu for various locations. One classic example in this regard can be found in the company’s business strategies in India. Indian customers are sensitive about their cultural faiths and beliefs. It so happens that Indian customers consider beef eating against their religious sentiments and are very particular about this aspect. Realizing this aspect McDonalds has prepared a localized menu list for the Indian market that does not include beef based products. This assumes significance considering the fact that Most of the items in the menu list of the company include beef based products (Mukherjee, 2009, p. 147). In addition to this the company also has store designs and promotional content that includes local tastes and sentiments. Each of the consumer market has a separate website catering the local needs and sentiments of the consumers. The names of the store and menu items displayed on the store are also displayed in local languages to suit the local tastes and sentiments of the customers with varied tastes and preferences (Koh, 2010, p.44).
Starbucks also follows a ‘glocalised’ approach in its international business strategies. The company’s international expansion strategy always involves doing business
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