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Which of the following strategies is represented by McDonald’s experimenting with their traditional menu, as well as changing the layout and theme of restaurants in foreign locations? Select one: a. Leveraging the competencies of global subsidiaries b. Realizing cost economies from global volume c. Realizing location economies d. Attempting to minimize unit costs e. Expanding the market by leveraging products

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Answer:

In the United States. McDonald’s spends the biggest slice of their budget. The company does many new product trials and innovation in its home country, where it has the biggest audience. The company’s advertising is typically skewed to children in the United States, where McDonald’s produces about 250 ads annually.

In Japan. The company’s ad campaigns are widely different. The Japanese ads are focused on adults as well as children, with some features that are unique to the locale’s culture.

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