McDonald’s is the world’s largest fast food chain that is originated in California, USA. Ray Kroc became a franchisee of the McDonald brothers (Dick and Mac) and began opening new restaurants, buying all the rights to the McDonald's concept in 1961 for $2.7 million. McDonald’s Corporation give the franchise to Golden Arches Restaurant Sdn Bhd to operate McDonald’s restaurants in Malaysia and the first outlet was opened in April 1982 at Jalan Bukit Bintang, Kuala Lumpur.
McDonalds mission is “To be our customers' favourite place and way to eat” and their vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, ...view middle of the document...
The supplier bargaining power is high because there are only one supplier supplying for McDonald’s Malaysia which is Mac Food Services Sdn Bhd.
McDonalds competitors include other fast food chain such as KFC, Burger King and Wendy’s. McDonalds have to be aware of what the competitors are offering to customers, for eg. Burger King are famous with their grilled beef and chicken burgers which is an advantage because of the demand of wanting more ‘healthy’ option of fast food.
McDonald’s is a multi-national enterprise (MNE) and the headquarters still remained in Illinois, USA. Golden Arches Restaurant Sdn Bhd paid certain amount of percentage to McDonalds Corporation for the license to operate McDonalds Restaurants in Malaysia. This reduced cost for McDonalds because they appointed local supplier, Mac Food Services Sdn Bhd that provide beef patties, chicken, fish nuggets etc.
McDonalds is an FDI from the US into Malaysia, which helps Malaysia economic to grow. It also helps Malaysia gain technological and managerial expertise from the fast food restaurant system that is considered new in this country. It will benefit Malaysia’s balance of payment because the inflow in investment funds in FDI.
McDonald’s logo is a registered trademark of McDonalds Corporation and has become a global brand. Most of the products have the McDonalds logo but it is localized to fit the local demand. This also includes in the food variety where McDonalds in Malaysia offer Prosperity burger during the Chinese New Year season and it has the taste that suits the local tongue, which is spicy and aromatic. McDonalds in Malaysia also offer ‘Bubur Ayam McD’, which is the chicken porridge offered all year long. This is the firm strategy in one of the determinants of national competitive advantage.
Malaysian always favor Americans brand that is why McDonalds in Malaysia are well accepted by the locals. Up to this date multiple McDonalds in Malaysia is running 24 hours daily, which shows the demand of McDonalds products, are high. McDonalds brands indicated high level of quality for Malaysians. The brand sounded like American or European brand gave advantage of superiority. The perception was that local brands in Malaysia were inferior.
Balance of Payment can be used as an indicator of economic and political stability. Malaysia's balance of payments is poised to remain favorable in 2009 with the current account posting a surplus for the 12th consecutive year.
Malaysia’s political system is democratic, federal constitutional elective monarchy and with a federal government closely modeled based on the British Westminister model. Legislative power is divided between federal and state legislatures. Local government still holds major power such as to collect taxes, to create laws and to grant licenses and permits for any trade in its area of jurisdiction. Parliamentary elections are held at least once every five years, with the last general...