MGT 496

INDEPENDENT STUDY
ANALYSIS OF COCA-COLA, APPLE
& MCDONALDS

INA JANI

Introduction
My paper will be looking at three different companies: Coca-Cola,
Apple and McDonalds. The analysis will cover information on the
history and start-up of the companies, marketing strategies,
globalization, and the various obstacles companies face, especially
ones of these magnitudes.
Coca-Cola
The Coca-Cola Company is one of the most internationally known
companies inn existence. In addition, the company continues to
expand and grow throughout the world without showing much sign of
stopping. Coca-Cola knows how and where to capitalize in the
continuously developing beverage industry. Coca-Cola currently ranks
as the largest beverage company in the world operating in over 200
countries and maintaining over 84,000 suppliers. From this success,
over 70% of Coca Colas companys income is generated from sources
outside of the U.S. This is where the companys globalization aspect
comes into play along with operating in over 200 counties. While
globalization, if done right, can be extremely lucrative for a company
such as Coca-Cola, it comes with its advantages and disadvantages.
These pros and cons will be observed in depth in order to better
understand the effects globalization has on the company, the countries
they are expanding into, and the local regions of the brand.

Lets begin from the beginning of Coca-Colas journey into

globalization. Coca-Cola was founded in the 1886 and was developed
by John Pemberton. During this time, stores were in demand of prepackaged products with brand name recognition. Coca-Colas approach
to this demand was providing a new iconic red and white logo and also
providing brand marketing to ensure confidence in customers that the
Coca-Cola product would taste the same no matter where it was being
purchased. This allowed the Coca-Cola Company to build a reputation
of quality and consistency. These key strategies became the foundation
for Cokes plan for global expansion. Coca-Colas global expansion
began in the 1900s. The U.S. military spread to the regions of Cuba
and Panama causing a rise in demand for Coca-Cola products. This led
to bottling plants being built in these two regions. These plants showed
to be successful as they reduced shipping and delivery costs. Soon
after the display of success in Cuba and Panama, further bottling
plants opened in Hawaii, Puerto Rico, and the Philippines. Preceding
these efforts, Coca-Cola began testing in foreign markets for future
expansion opportunities. By 1926, Coca-Cola had established foreign
relationships and plants around the world, which furthered the
companys opportunities to continue its journey of globalizing and
mass-producing around the world. Coca-Colas growth continued for
the next several decades. Local branches and partnerships that were
distributing Coca-Cola products were established throughout the world.

After the conclusion of World War II and the Cold War, Coca-Cola had
become true global corporation known for efficiency and worldwide
capabilities.
Delving into more detail about the companys globalization, there
are various major factors that can affect a company when globalizing:
political, economic, social are the ones I will be focusing on. Lets begin
with political: political changes have to do with government regulations
and policies on how a company should be operating as well as setting
certain standards that the product should meet. This allows the
government to intervene if these standards are not being met. There
are many policies and regulations the government can put into place
regarding globalizing. An example is monetary policy, which can be
defined as the actions of a central bank, currency board, or other
regulatory committee that determine the size and rate of growth of the
money supply, which in turn affects interest rates. The Coca-Cola
company is not exempt from the monetary policy and abides by the
three tools that the Federal Reserve Bank uses to control monetary
policy: the discount rate, open markets operations, and the reserve
ration requirement. Trade restrictions/barriers: A government imposed
restriction on the free international exchange of goods or services.
While this is not as common, it is still present with the Coca-Cola
Company. Only banned from two nations: Cuba and North Korea.
Environmental policy: refers to the commitment of an organization to

the laws, regulations, and other policy mechanisms concerning

environmental issues. According to the Hellenic Bottling Company,
which is one of the largest bottlers of non-alcoholic beverages in
Europe, operating in 28 countries in three continents with a total
population of 589 million people. According to the bottling company, In
2014, they invested more than 5.8 million euro in different water
saving programs in more than 20 countries, which lead to more than
1.1 million cubic meters water saving. As far as packaging and
recycling, in 2013 they developed the lightest and most
environmentally friendly can in the world through our partnership with
Ball Packaging Europe. PET lightweight initiatives allowed us to save
1,963 tons of material.
Other aspects the Coca-Cola Company has to consider includes
having their products ingredients monitored by the FDA (Food and
Drug Administration). There is also income tax, import/export
regulations and possibility of political crisis. A nation dealing with any
form of political crisis, such as protest or an extremely high loss of
employment, would greatly reduce the demand for Coca-Cola products.
Economic factors: Economic factors can be used to help a
company predict what future decisions to make regarding expansion,
where to move their products to next, where their products are not
doing as well, and many other factors. Some economic factors a
company looks into include: interest rate, standard of living (level of

wealth, material goods, and necessities available to certain

socioeconomic class in various geographic areas), exchange rate: The
price of a nations currency in terms of another currency,
unemployment rate and the overall economic growth in the nation.
When looking at a countrys economic growth, a company may look
into the countrys purchasing power. Purchasing power is the value of a
currency in terms of the amount of goods or services that one unit of
money can buy. Purchasing power is closely related and affected by
inflation. If a countrys currency experiences excessive inflation, the
purchasing power decreases while cost of living and interest rates rise.
This can contribute to an economic crisis. Social: Social factors in my
opinion are the most complex. They involve culture, traditions, and
various views on health, family values, education, safety, population
growth and so on. What makes this factor so complex is that it varies
heavily from nation to nation. One of the main issues Coca-Cola has
faced when it comes to the social factors of expanding is the healthrelated issues facing Coke. Coca-Colas issues begin with certain
countries banning their products due to their unhealthy benefits that
can contribute to obesity and many other diseases affecting ones
health. Currently, there are only two countries in which Coca-Cola
cannot be bought or sold and they are Cuba and North Korea. Up until
a few years ago, Myanmar was also a country that banned coke
products. Additionally, in 2009 Venezuela banned Coke Zero, a no-

calorie version of classic coke, due to its use of artificial sweeteners,

which are believed to be harmful to health. While this may not seem
like a big enough issue to affect Cokes globalization processes, it does
not give the company a good name if certain countries find the product
so detrimental they believe banning it is a necessity.
Lets take a look at some of the health risks of coke. A study was
done to show the effects drinking a coke has on ones body within an
hour. Within the first ten minutes, your system is hit with ten
teaspoons of sugar, which is 100 percent of the recommended daily
intake. After 20 minutes, blood sugar surges and the liver responds to
the subsequent insulin spurt by turning the copious amounts of sugar
into fat. After 40 minutes the caffeine absorption is complete. Pupils
dilate, blood pressure rises, and the livers deposits more sugar into the
bloodstream. At 45 minutes, the body increases dopamine production,
which is a stimulant to the pleasure centers of the brain. This stimulant
response has also been said to be physically identical response to that
of heroin. And finally after an hour of consuming the coke you will
begin to have a sugar crash which is fatigue after consuming a large
amount of carbohydrates.
The major components of Coke are what lead to these
unappealing affects. Phosphoric acid can interfere with the bodys
ability to use calcium, which can lead to osteoporosis and/or softening
of the teeth and bones. Sugar increases insulin levels, which can lead

to high blood pressure, high cholesterol, heart disease, diabetes,

weight gain, premature aging, and other negative side effects.
Aspartame is the chemical that is used in diet sodas as a sugar
substitute. This chemical has been associated to over 92 different
health side effects that are associated with brain tumors, birth defects,
diabetes, emotional disorders, and epilepsy. Caffeine can cause jitters,
insomnia, high blood pressure, irregular heartbeat, elevated blood
cholesterol levels, vitamin and mineral depletion, and other negative
side effects. Clearly, Coca-Cola has many negative health side effects
working against them. Furthermore, society has been leaning more
towards healthy choices in regards to food and exercise.
Despite the negativity surrounding coke about its nutrition, it
has still managed to become one of the most known brands globally.
Lets take a look at how Coca-Cola achieved its success. One of CocaColas used strategies is so simple, yet so effective: the use of its
timeless font. The logo that was decided to be used is Spenserian
script because it would differentiate Coke from its competitors. The
logo was standardized in 1923. While the packaging would be aloud to
be adjusted with the changing times, the logo ,along with the recipe,
were to remain unchanged. This resulted in a logo that has been
around for over 100 years and is not imprinted into the minds of
people around the world. Another tactical move made by the Coca-Cola
Company was introducing the unique and distinct Coke glass bottle.

The shape of the bottle was inspired by the cocoa pod due to its odd
yet aesthetically-pleasing shape. The glass bottles were eventually
replaced with plastic however the glass Coke bottle has become an
iconic product. Additionally, Coca-Cola put a great deal of focus into
maintaining a standard of excellence as the company grew. An
example of this would be that the Coke team decided that its drink
should be served at 36 degrees Fahrenheit and never above 40
degrees Fahrenheit. While this tactic may seem over the top, it set a
standard for Coca-Cola products by establishing them as premium
products that deserved more attention than its competitors.
Coca-Cola is huge on advertising. One of the channels of
advertising its uses, despite its negative health facts, is sports. CocaCola was the first commercial of the 1928 Olympic games in
Amsterdam and has been a sponsor of the Olympic games ever since.
Coca-Cola has also sponsored the FIFA World Cup, Major League
Baseball, National Football League, and National Basketball
Association. The company also uses star athletes in their
advertisements. Due to its iconic branding, Coca-Cola has also become
very apparent in mass media. It has been featured in countless movies
and TV shows as well as had many celebrities endorse Coke over the
years. Some of these celebrities include: Magic Johnson, Maroon 5,
Ryan Seacrest, and Michelle Kwan. I would also like to touch on 4 other
key factors that allowed Coca-Cola to achieve international success

and recognition. The first is that the company managed to maintain a

sense of simplicity. Regardless of having grown into a substantial global
industry with numerous products, Coca-Cola remained in touch with its
timeless and simple ideals. Through the decades and countless
advertising campaigns, the company used lasting slogans such as
Enjoy and Happiness as these simple messages have the ability to
translate across the globe. The next factor is personalization. This is
important to the company because despite their status as a global
icon, Coca-Cola realizes the importance of finding a way to connect
with consumers on a more personal level. The Share a Coke campaign
initially started in Australia in 2011 and has now successfully expanded
to over 50 countries. The campaign has removed the Coca-Cola logo
and replaced it with the phrase, Share a Coke with. The campaign
uses a list of the 250 most popular names of each county the
campaign is active in and encourages consumers to find a bottle with
their name on it and share a Coke with friends, family, and loved ones.
Consumers with more uncommon names can even custom order a
bottle with their name on it form the Coca-Cola website.
Coca-Cola has also utilized one of the most current and fastest
growing tools for effective global marketing: social media. Social media
has become such a powerful tool because it gives companies the
ability to reach consumers on a worldwide level through a single
platform. The Share a Coke campaign was not only successful as a

localization strategy but also allowed consumers to engage in their

Coca-Cola experiences via social media. According to the Wall Street
Journal, there were more than 125,000 posts about the campaign only
one month after its United States launch. The final factor I will discuss
about Coca-Colas success is the emphasis the company pus on brand
over product. An example of the difference between product vs. brand
would be that Coke uses the idea that its does not sell a drink, it sells
happiness. Coca-Cola produces numerous different products with
packaging designs that vary among different regions, to have a global
marketing plan that focuses on the products rather than the brand
would be challenging to oversee. This is why Coca-Cola instead focuses
on the experience and overall lifestyle the company has associated
with its brand. Vice president of marketing for Coca-Cola Israel stated,
Though the products may vary, the experiences are sellinghappiness, friendship- are universally shared and understood.
The key takeaway from Coca-Colas successful global brand is
the foundation of human connections. The company also remains
innovative while remaining connected to its initial simple principals.
Coca-Cola has created a brand that has lasted the test of time by
incorporating these factors into its business strategy. These global
marketing techniques have allowed Coca-Cola to remain an industry
leader, even after 125 years of its formation.

Apple
Apple, Company History and Start-up: Apple Computers was founded
on April 1, 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne
whom were all college dropouts. Their vision was changing the way
people viewed computers. Jobs and Wozniak wanted to create a more
user-friendly computer that was small enough for people to fit in their
homes. The Apple 1 was started up in Jobs garage and was originally
sold without a monitor, keyboard, or casing. When the Apple 1 went on
sale in July 1976, it was at a market price of $666.66. If inflation is
factored in, the price in 2015 would be around $2,772. Apple became
incorporated January 3, 1977. Founding member Ronald Wayne sold his
share of the company back to Jobs and Wozniak for $800 prior to Apple
becoming incorporated. Entrepreneur Mike Markkula provided Jobs and
Wozniak funding of $250,000 along with crucial business expertise.
During Apples first five years of operation, revenues were growing at
an exponential rate. The rates were doubling every four months on
average and from September 1977 to September 1980 yearly sales
reportedly grew from $775,000 to $118 million. That is a phenomenal
annual growth rate of 533%.
The Apple II was introduced April 16, 1977. VisiCalc, which is a
spreadsheet system, chose the Apple II to be the desktop platform for

the application thus giving Apple II a business market and home users
another reason to purchase Apple II. By the end of the 1970s, Apple
had assembled a staff of computer designers as well as a production
line. 1984 marked the introduction of the Macintosh. This was the first
personal computer to be sold without a programming language. While
Macintoshs initial sales were solid, the follow up sales were not as
strong due to the high price and limited range of software titles. This
turned around for Apple when the LaserWriter, the first PostScript laser
printer that was sold at a reasonable price, was introduced. The
Macintosh became powerful in the desktop publishing market due to its
advanced graphics capabilities. A dispute over power issues broke out
in 1985 between Jobs and CEO John Sculley who had been hired two
years prior. The dispute came from the Apple board of directors who
had directed Sculley to limit Jobs ability to launch pricey ventures into
untested products. Jobs fired back by attempting to oust Sculley by
calling a board meeting. However, this ended up backfiring for Jobs
when the board of directors decided to side with Sculley. Jobs was
removed from his managerial duties and ended up resigning from
Apple the same year.
Following Jobs departure, the Macintosh product line began to
focus on higher price points. This policy was referred to as the highright policy. Jobs had previously argued that Apple should produce
products aimed at the consumer market. He suggested the price goal

for the Macintosh to be set at $1,000, however the company was

unable to meet this price point. The newer models were still selling at
the higher price points and also offering higher profit margins. The
policy began to backfire towards the end of the 1980s due to new DTP
programs that offered some or almost all of the same functionality that
the Macintosh offered but at a much lower price. Apple had not only
lost its monopoly in this market but also alienated a large portion of its
original customer base who could no longer afford the expensive
prices. The 1989 Christmas season was the first in Apples history that
saw a decline in sales, which led to a 20% drop in Apples stock price.
Following these events taking place, Apple introduced three lower cost
models: the Macintosh Classic, Macintosh LC, and Macintosh Ilsi which
all encouraged substantial sales thanks to the pent up demand. The
success of these lower-cost models led to a reduction of Apples higher
priced models. In order to compensate for this, Apple began selling
very similar machines at different price points that were aimed at
different markets. This however only led to market confusion and
consumers not being able to tell the difference between machines. In
1994 Apple teamed up with IBM and Motorola in hopes of creating a
new computing platform. This would use IBM and Motorola hardware
paired with Apples software. The expectations of this was that it would
leave the PC out of date and contradict the powerful Microsoft
Company. 1996 brought in a new CEO for Apple, Gil Amelio. Amerlio

wasted no time making significant changes to Apple. These changes

included vast layoffs and cutting costs. Amelio also decided to
purchase the NeDT and its NeXTSTEP operating system after failed
attempts at improving Mac OS. Another crucial change: bring Steve
Jobs back to Apple.
Company Return To Success: Jobs returned to Apple as an advisor
in 1997 and Gil Amelio was ousted by the board of directors due to a
three-year record low stock and financial losses. Jobs, who had
discovered the design talent of Jonathan Ive, worked to reconstruct
Apples product line and the companys status. At the Macworld Expo
of 1997, Jobs announced that Apple would be joining forces with
Microsoft to release new versions of Microsoft Office that could be used
for Macintosh. On November 10, 1997, Apple introduced the Apple
Online Store, which related to the new build-to-order manufacturing
strategy. Apple was heading towards a positive turning point and to
keep the momentum going on August 15, 1998, the company
introduced the iMac. The iMac encompassed modern technology
combined with a unique design and sold roughly 800,000 units in its
first five months. On May 19, 2001, Apple opened its first Apple Retail
Stores in California and Virginia. The same year, Apple introduced iPod,
which is a portable digital audio player. The product was a
phenomenon and sold over 100 million units the first six years. The
success of the iPod led to the introduction of Apples iTunes store in

2003. The online store offered online music downloads for $0.99 per
song in conjunction with the iPod, which the songs could be
downloaded onto. The iTunes store was another huge success for Apple
and became the market leader in services for online music. Jobs
announced on June 6, 2005 at the Worldwide Developers Conference
that Apple would begin producing Intel-based Mac computers in 2006.
In January 2006, the new product MacBook Pro and iMac became
Apples first computers that used Intels Core Duo CPU. August 2006
marked Apples transition to Intel chips for the entire Mac product line.
Previous products from the line such as: the Power Mac, iBook, and
PowerBook were replaced by: the Mac Pro, MacBook, and MacBook Pro.
The companys stock price certainly reflected the current success.
Apples stock price rose from $6/share to roughly $80/share. Despite
this success, Apple still remained far behind competitors accounting for
only 8% of laptops and desktops used in the United States.
During Jobs keynote speech at the Macworld Expo on January 9,
2007, he announced that Apple Computer, Inc. would now be referred
to as simply Apple Inc. because the company was to begin shifting
focus to mobile devices as well. This event also marked the
announcement of the iPhone and Apple TV. The following day, apple
shares hit a high of $97.80. May of that same year the companys
stock price surpassed the $100 mark. The App Store was launched in
July 2008, which sold third party applications for the Apple products

iPhone and iPod touch. Within the first month, the App Store sold 60
million applications and recorded a daily revenue of roughly $1 million.
By October 2008, Apple had become the third-largest mobile handset
supplier in the world thanks to the tremendous popularity of the
iPhone. On top of the huge success of the iPhone, Apple also
introduced the iPad, which launched on April 3, 2010 and sold 300,000
units on its first day. The companys wealth and power continued to
grow with the continued introduction of new and innovative products
however October 5, 2011 marked a sorrowful day for Apple as they
announced that Steve Jobs had lost his battle with cancer and passed
away. While this was a devastating blow for the company, they
continued to prosper following Jobs death. Lets take a closer look at
some of the products that Apple has provided us with.

Product Line (Most Popular): MacBook: Ultra-thin, ultra-portable

notebook introduced 2006.
MacBook Air: Even more thin than original MacBook, introduced 2008.
MacBook Pro: Professional notebook with more capabilities than
standard MacBook, launched 2006.
iMac: All-in-one desktop computer, introduced in 1998.
iPod Shuffle: Ultra-portable digital audio player available in a 2 GB
model, introduced 2005.

iPod Touch: Portable media player that runs on iOS and is available in
16, 32, 64, and 128 GB models, introduced in 2007.
iPhone: A line of smartphones that run on the iOS mobile operating
system. First generation iPhone released on June 29, 2007. Most recent
models: iPhone 6s and 6s Plus. User interface built around the
smartphones multi-touch screen, which includes a virtual keyboard,
and countless applications that can be downloaded from the App Store.
iPhone also includes Wi-Fi that can connect to cellular networks. Some
of the other features and capabilities include: Take photos, shoot
videos, play music, send/receive e-mail, surf internet, send texts,
record notes, built-in calculator, GPS navigation, social networking, and
many other features.
iPad: Multi-touch tablet which allows user to access newspapers,
eBooks, photos, videos, music, word documents, and most of the
iPhone apps. Released January 27, 2010.
Apple Watch: Most recent addition to product line, released April 24,
2015. Wearable device that consists of fitness tracking features and
must be used in combination with iPhone (models past iPhone 5) to
work.

Apple, Inc. Controversies, Strategies, and Globalization: Over the years

Apple has become progressively more global. Originally, it geared its
products towards educational and home use. The increase in its sales

scope has led to a transition that consisted of being US central in

manufacturing, assembly, and sales be evolving to a global usage of
these elements. Apple now sources and assembles products abroad in
locations such as China and markets their products to 140 countries.
The usage of international part manufacturing and labor has given
Apple the opportunity to put a greater focus on technological
innovation and the ability to penetrate emerging economies as well as
lower production costs. However, these opportunities and benefits do
not come without risks. China has a huge role in Apples overseas
manufacturing and assembly and there have been some concerning
factors in both how Apple has been doing business in China as well as
political and economic issues and the Chinese government. A big
concern for Apple is Chinas increasing environmental problems. These
issues have led to the possibility of the Chinese government placing
restrictions and applying substantial monitoring to plants. Additionally,
the Chinese government is arranging to increase the proportion of
profits that state-owned companies must return to the treasury from
the range of 5%-15% to 30% by the year 2020. The cost that Apples
outsourcing partners acquire would be affected by this profit proportion
change.
There has also been an uproar in China regarding poor working
conditions and human rights. Foxconn, a major Apple manufacturing
supplier headquartered in Taiwan, has faced many controversies in

relation to Apple. These controversies mainly revolve around how the

employees in China are managed. BBC aired a documentary on
December 17, 2014 about the working conditions of the manufacturing
plants in China. This revealed that promises Apple made to protect the
employees were regularly broken. Some of the working standards
being violated included employee hours, ID cards, dormitories, work
meetings, and juvenile workers. Apple was supposed to have
implemented new standards in 2010 following the suicide of 14
Chinese workers at Foxconn which was blamed on poor working
conditions and employee mistreatment. An undercover reporter who
was making parts for Apple computers stated that they had to work 18
days without a day off with some shifts as long as 16 hours.. They also
said, Even if I was hungry I wouldnt want to get up to eat. I just
wanted to lie down and rest. I was unable to sleep at night because of
the stress. While the attention being brought to this matter along
with the possibility of improvements regarding labor conditions and
human rights would benefit local employees, it would, sadly, challenge
Apples reason for being in China in the first place. These human
rights improvements would lead to an increase in outsourcing costs in
the future and force Apple to consider if this endeavor will be worth it
after an increase in all of the costs.
Shifting gears towards Apples strategic factors used to achieve
its global success. First up is Apples use of cost leadership. Cost

leadership is a concept developed by Michael Porter that can give a

company a competitive edge and can be used as a tool to generate
profit. Simply put, cost leadership is the lowest cost of operation in the
industry. Apples cost leadership is achieved by low cost inputs that
produce the cheapest but high quality products possible. Apple has
also developed established business agreements with companies,
which allows them to focus on solutions to problems and innovative
products. An example of Apples cost leadership is the companys
iTunes store. This application allows the company to distribute music
digitally without the cost of a compact disk/CD. This strategy has
transformed how consumers get not only music, but videos, games
and other media as well and at a low price.
The next factor to focus on is how Apple uses the differentiation
strategy. To start off, Apple manufactures computers from the same
company, which is responsible for operating, and hardware in which it
runs unlike competitor Microsoft which uses many different
manufacturers. By using this stratagem, Apple can control all of the
components that are included in their computers. It also minimizes
technical issues because the hardware and software are only intended
to be used on Apple operating systems. Apples differentiation strategy
is also focused on putting their focus on design quality. Apples strong
reputation was built on high quality design in personal computer
history. Apple is the only manufacturer of computers to establish

physical stores around the world and their products in these stores are
stylish yet simple setting. Customers experience service that is
superior to other computer stores. The stores include a genius bar
used for technical support, daily workshops, one-on-one support, and
even allows customers to test products before purchase. Apple
differentiation strategy veers away from low cost computers and
instead focuses on creating products that are innovative, high quality
and user-friendly.
When becoming a global company a key element the business
must incorporate into their strategy is flexibility. There will be moments
of uncertainty and the company needs to know how to function
through the uncertainty. A time when Apple exemplified flexibility was
when Apple decided to launch the iPad. There was a high level of
uncertainty associated with the product. This required Apple to
incorporate a sense of flexibility in their objectives. The iPad initially
received negative feedback from critics calling it a giant iPhone and
mixed reviews from the media. Many people thought the product would
fail. Some of the factors Apple had to take into consideration upon
launching the iPad included: price, user interface, software, and how to
differentiate the iPad from not only other Apple products but also
tablets of competitors. Apples flexibility and risk taking nature
rewarded them with the release of the iPad. After its release in April
2010, the iPad sold 3 million units in 80 days and the majority of the

products reviews have been positive. Apple strategically takes on lowrisk as well as high-risk products. Low-risk includes updated versions of
the iPod, MacBook, etc. while high-risk includes introducing new
products that offer more opportunity for growth such as the iPad and
Apple TV. The iPad brought a new competitive advantage to the
company as it offers a new way to expose yourself to books, games,
Internet and applications as well as relating to the differentiation
strategy which includes creating new and innovative products.
When it comes to Apples corporate strategy, close-related
diversification strategies are put to use. Right before Apple launched
the iPod in 2001, the company was primarily known for its software
and computer technology. However, the introduction of the iPod
followed by the iTunes Music store led to the capability for Apple to
breakthrough into the digital music market. Due to Apples high level of
integration between its personal entertainment and computer
products, it has been able to utilize economies of scope. This allows
Apple to reduce its operating costs, which leads to higher margins for
the company and lower prices to the consumers. The era of technology
is one that is always evolving and Apple uses diversification to
understand more about what consumers are looking for. By using
diversification, Apple has been able to create high quality and welldesigned products that not only impress consumers but also assist in
everyday work and life in general. Apples diversification success from

products such as iPods, iTunes, and iPads has also increased sales of
the Mac computers. This is due to Apples use of close integration
between the products and the key element of creating products that
can be easily managed because they run on the same operating
system. Apples biggest diversification move has been that one into
the mobile communication industry. The company revolutionized the
term, smart-phone. Prior to the iPhone, consumers would typically
refer to their phones by service provider name or generalize the phone
into the category such as Motorola. Now the vast majority carries
iPhones and refers to the actual phone, not the provider. The way
Apple manages its operations also plays a role in their diversification.
The company follows an M-form functional structure. The M-form is an
organizational structure in which the company is separated into several
semi-autonomous sections, which are guided and controlled by targets
from the center. Under CEO Steve Jobs, there are ten senior Vice
Presidents for the various units of the company such as engineering,
software, product marketing, and so on. So ultimately, the
management duties are split up however they report to the few at the
top. Apples executives also meet daily to discuss everything from
current goals and projects to market changes and the companys
direction. Apple is a highly collaborative company that is good at
deciding how to divide tasks amongst the various teams and promotes
communication between them.

Apple has incorporated strategic alliances since the beginning of

its existence. These alliances are used for a variety of reasons
including: economies of scale, learning from competitors, and
managing risk and shared costs. A notable alliance of Apple is that of
AT&T in the production and launching of the iPhone. Apple had to rely
on AT&T to not share Apples key technologies with other mobile
manufacturers while AT&T had to rely on Apple that once the iPhone
was created, it would not deactivate the alliance and launch the iPhone
with another mobile company. Another crucial alliance of Apple was
Microsoft. This allowance had Microsoft agree to develop the Microsoft
Office software for the Mac in return for Apple bundling Internet
Explorer in all of its computers. This was huge for Apple because many
consumers stayed away from Apples computers due to the fact that it
could not run Windows. In 2004, HP and Apple developed a strategic
alliance to deliver an HP-branded digital music player based on Apples
iPod and iTunes music player store to HPs customers. This alliance had
Apples iTunes software preinstalled on all HP PCs and notebooks.
Apples goal was to have an easy-reference desktop icon that would
point consumers directly to iTunes music software while also offering a
user-friendly music experience. Additionally, Apple wanted to get its
iPod and iTunes reached out to as many music lovers as possible and
teaming up with another innovative company helped them to achieve
this.

When it comes to Apples international strategy, they follow a

global strategy of standardization of their products. The only
modification is the power source due to the varying power voltages in
different countries. Apple achieves this by having its engineering,
designing, and manufacturing controlled by one source which also
differentiates the company from other computer makers. A multidomestic strategy could lead to excess overhead and managements
loss of control over the company. Apple is known for its innovation not
only in their products but strategic management and marketing as
well. I believe this company will continue to grow and be prosperous
despite the obstacles that may come its way.

McDonalds
The world recognized McDonalds brand was founded in May of
1940 by brothers Richard and Maurice McDonald. They originally
opened a BBQ style restaurant but soon realized that the majority of
the products were coming from selling hamburgers. They re-did their
menu, which now included only hamburgers, cheeseburgers, French
fries, shakes, soft drinks and apple pie. The previous BBQ restaurant
also included carhops, which were removed in order to make
McDonalds a self-serve establishment. The McDonald brothers set up
their kitchen to resemble the style of an assembly line in order to

provide maximum efficiency. The brothers wanted to further expand

their restaurant by finding a new building in order to obtain a more
aesthetically appealing look and to further improve efficiency. They
worked with architect Stanley Clark Meston to create the new building,
which included red and white ceramic tile, stainless steel and the
famous neon, yellow golden arches. In late 1952, the brothers began
looking for franchisees. Ray Kroc, who sold the milkshake machines
used in McDonalds San Bernardino restaurant, saw the potential of the
brand. He recommended that the brothers franchise their restaurants
nationally. Kroc also offered to take the majority of the responsibility for
setting up the new franchises and offered the brothers half of one
percent of the gross sales. Kroc opened the first McDonalds Systems,
Inc., now McDonalds corporation, restaurant in Des Plaines, Illinois.
Expansion Overview: After getting the Des Plaines location up
and running, Kroc continued to look to expand the brand. He did this
by continuing to seek franchisees for the chain. By 1959, Kroc had
opened 68 new restaurants in 102 locations. In the early 1960s Kroc
began investing in advertising for the McDonalds Corporation. The
advertising campaign, Look for the Golden Arches increased sales
and Kroc believed that money invested in advertising would back itself
back many times over. Ronald McDonald was introduced in 1963 and
was designed to appeal to children. Kroc noticed that the growth in
U.S. automobile use that came with suburbanization heavily

contributed to McDonalds growth. He decided to buyout the McDonald

brothers for $2.7 million dollars with the hopes of making McDonalds
the largest and most successful fast-food chain in the nation. The
corporation went public in 1965 with common shares going for $22.50
per share. The price rose to $30 per share by the end of the first days
trading. McDonalds utilized effective marketing skills to surge the
brand into explosive success and was able to be flexible in terms of
customer demand. An example of the quick response to customer
demand would be when Kroc noticed burger sales dropped in Catholic
neighborhoods on Fridays during Lent, he introduced the Filet-O-Fish
sandwich. This was quite the innovative move back in the 1960s as
various restaurants to this day provide fish frys on Fridays during Lent.
By 1968, McDonalds had opened its 1,000th restaurant. Fred L. Turner
had now become McDonalds president and chief administrative officer
while Kroc had become the chairman and remained CEO of the
company until 1973.
The 1970s provided even more growth for McDonalds as society
was even more on the go and valued the quick service McDonalds
provided. By 1976, McDonalds had served an astounding 20 billion
hamburgers and sales exceeded $3 billion. The next major move the
company contrived was introducing breakfast to the menu. They
started out by selling the Egg McMuffin and after a positive consumer
response, added a full breakfast menu. In order to speed up their

service time even more, McDonalds introduced the drive-thru in 1975,

a concept that fellow fast-food company Wendys had gotten a jumpstart on. This was an enormous step for the company because drivethru sales eventually accounted for half of McDonalds sales. The
1980s were a period of considerable expansion for McDonalds. The
company played it smart by continuing to diversify and adjust its menu
with the changing consumer preferences. The McChicken was
introduced in 1980, however the sales for this product were not up to
par. The sandwich was replaced by the now famous Chicken
McNuggets a year later. The McNuggets became so popular that
demand exceeded supply. The solution to the supply issue was making
the McNuggets available nationwide. Shortly after this move,
McDonalds became the second largest retailer of chicken in the world.
1985 included the addition of salads as a more health conscious
option. McDonalds efficiency and expanded menu continued to lure
customers. With the continued success, McDonalds set its sights to
expand to more urban areas and even launched new architectural
styles in order to associate its brand more effectively to city settings.
Competition: By the late 1970s/early 1980s Competitors Burger
King and Wendys stepped up their advertising game during a period of
time dubbed the Burger Wars. This was a time where the fast-food
industry was hot and companies were fiercely battling for market
share. This time period consisted of aggressive advertising and price

slashing in order to reach that top spot and have the number one
sales. McDonalds sales and market, however, remained the highest
and most powerful.
Some other competitors of McDonalds include: KFC, Starbucks,
and Pizza Hut. Through market research and surveys, McDonalds was
able to discover that speed was a top priority for customers. Because
of this, McDonalds vision objective is to provide fast, friendly and
accurate service. To accomplish the fastest speeds possible,
McDonalds focuses on specific targets that measure the performance
of speed. These targets include utilizing proven, standardized training
processes for its employees and new drive-thru layouts to reduce
service times. Cost is the next factor of McDonalds competition bases.
In order for McDonalds to have the ability to offer quality products at
low cost, efficient processes throughout the organization is required.
This is also included in the companys vision statement as: We will be
the most efficient provider so that we can be the best value to the
most people. McDonalds possess a few different strategies to provide
this value to its customers. One of the most popular strategies that
have been used by the company for years is the value meal. This offer
allows the customer to buy a sandwich, French fries, and drink at a
discount when purchased together. McDonalds restaurants offer a
range from seven to twelve value meals for both breakfast and lunch.
McDonalds made an addition to the value meal, which offers individual

items costing $1: The Dollar Menu. After proving to be successful by

first being tested in southern California, the dollar menu has since
been added to the individual stores. The third focus of McDonalds
competitive base is nutrition. The company recognizes that the health
trend is increasing therefore the organization has put a tremendous
focus on promoting new nutritious choices. McDonalds in the United
States have recently been offering Go-Active meals, which include a
salad, bottled water, and step-o-meter that tracks the amount of steps
taken per day. McDonalds in the United Kingdom offer fresh fruit bags
that contain apples and grapes as an alternative to fries. McDonalds
also established a Global Advisory Council on balanced lifestyles. The
council is made up of exercise and obesity specialists,
environmentalists, and other healthy lifestyle professionals in order to
ensure that the organization takes necessary steps in helping its
customers attain optimal health.
Another factor that helps with the companys competition is
technology. Besides using technology for needs such as service tills,
stock control, training, research, and administration/office work,
McDonalds has introduced yet another use for technology:
customization. This is a fairly new endeavor and is currently being
tested in the U.S. market. Essentially, McDonalds has placed
interactive kiosks in select U.S. locations. These kiosks allow customers
to customize their orders and have them brought to their tables.

McDonalds would like to expand the kiosks entitled: Create Your

Taste to about 2,000 U.S. restaurants by the end of 2015. However,
the customized orders are not yet available for drive-thru, only
currently available for dine-in and takeout customers. McDonalds has
also been experimenting with mobile ordering and is one of the first
companys to sign up for Apple Pay. Along with this, McDonalds has
updated their website by allowing the user to select any combination
of menu items, place items in the online bag, and carry out a
nutritional analysis on the selections.
Globalization & Marketing/Business Strategies: 1967 marked the
first McDonalds outside of the U.S. and was located in British
Columbia, Canada. By the early 1990s, McDonalds was established in
58 foreign countries and was operating more than 3,600 restaurants
outside of the United States. These restaurants were operated by
either being wholly owned subsidiaries: a company that is completely
owned by another company called the parent company or holding
company. The parent company holds all of the subsidiarys common
stock. Joint ventures: a business arrangement in which two or more
parties agree to pool their resources for the purpose of accomplishing a
specific task. Franchise agreements: A legal contract in which a well
established business consents to provide its brand, operational model,
and required support to another party for them to set up and run a
similar business in exchange for a fee and some share of the income

generated. The franchise agreement will lay out the details of what
duties each party needs to perform and what compensation they can
expect. McDonalds franchises account for 85% of operating
McDonalds. In order to uphold to the standards of McDonalds, the
company follows all framework of training and monitoring of its
franchises to ensure quality, service, cleanliness, and value for the
money offered by the company to its customers. The companys
strongest foreign markets were in the following nations: Japan, Canada,
Germany, Great Britain, Australia, and France. McDonalds was able to
successfully penetrate these vastly different markets. This has almost
everything to do with its marketing strategies and adjusting to the
different consumer preferences. The two main questions of the
strategic market segmentation are: What are the wants/needs, and
tastes of the customers? Is the marketing up to date, reflecting the
changing needs and demands? It is pretty obvious that various
countries around the world do not eat the exact same food that is
consumed in the United States. McDonalds accommodates and
capitalizes on this fact. Some examples include the McArabia offered in
the Middle East (grilled chicken and Arabic bread), McShawarmas
offered in Israel (Kosher meat) McPork offered in Japan (Sausage Patty,
lettuce, sweet & sour sauce.) Croque McDo offered in France (Ham and
cheese on toasted sweet bread.) This not only allows McDonalds
company to diversify their brand, but also gears each global endeavor

towards the varied consumer preferences and allows for

accommodating to the various tastes from country to country. Among
all of these accommodations, McDonalds stresses the importance of
keeping its brand recognizable. It is crucial for the company to retain
its original meaning and identity while tailoring and experimenting with
its international menu items. This way the McDonalds brand is still the
main focus, versus the unique menu items taking away attention from
the company as a whole.
The McDonalds organization understands that just the brand
name isnt enough to keep moving forward in the global marketplace.
They execute certain strategies that keep the company progressing
onward. One of the main strategies when it comes to expanding is
focusing on emerging markets. In addition to markets in China and
India, some African nations have also seen the golden arches emerging
in their area. China is still McDonalds most vital international front in
which it remains in high competition with Yum brands. McCafe has
been an effective asset for the company, shattering expectations since
its launch in 2002. The menu for McCafe also keeps growing and even
adding on non-caffeine drinks such as smoothies, which adds to the
health improvement side of McDonalds.
While not as common in the United States, McDonalds delivers
food in many markets around the world. In locations such as Asia and
the Middle East, it is common for even high-end restaurants to deliver

food. Therefore, McDonalds is adapting in order to meet the cultural

norms of its surroundings. The brand has also been improving the
appearance of its stores in order to make it more appealing to its
customers. McDonalds has been trying out the less is more style
concept in their China restaurants, which includes softer colors and
cushioned seats. The vast majority of McDonalds stores have
extended their hours, some even being open 24/7, and free Wi-Fi is
available in McDonalds restaurants across the world. McDonalds has
experimented with shorter menu cycles. For example, the McRibs
second national appearance in two years increased same store sales
up 4.9%. Along with the McRib are special edition McFlurries, and
limited time shakes such as the Shamrock shake. McDonalds keeps an
eye on international products that do extremely well and experiment
with how they would do in different regions. For example Australias
Chicken McBites are being tested in Detroit, to see if the success of the
menu item will transpire through to the American market.
McDonalds 7 Ps of Marketing: Product: McDonalds priority is to
offer a standardized service worldwide. However, the company does
allow franchisees some local control and creativity as long as the
service offered is of a high standard. Some of McDonalds most well
known products such as: the Fillet O Fish, Egg McMuffin, and Big Mac
were created through franchisee innovation. The way it works is that
franchisees are given independence to adapt the products while the

corporation maintains a high degree of standardization through quality

control. The vast majority of well-known products are usually offered in
all markets unless they do suit the local customs and/or interfere with
religious beliefs. An example would be that Big Macs are not served in
the Indian market due to the majority of the population is Hindu and do
not eat beef. However, sometimes the famous menu items will be
adjusted in correspondence with the local taste such as serving spicier
foods in most Asian countries. This allows the company to overcome a
variety of cross-cultural barriers.
Price: McDonalds has made itself known as a fast-food
restaurant offering low price food and drink. The affordable menu has
been implemented worldwide while still maintaining the base goal of
quality assurance. Ongoing experimenting and innovation has allowed
new price strategies such as the Dollar Menu or Saver Menu as
known in the United Kingdom. McDonalds responded to increasing
food costs by opting to increase prices by less than 1%. This way they
can adopt to change to the menu gradually in order to retain pricesensitive customers.
Place: While McDonalds product offerings differ between
countries, they operate a standardized global supply chain. The lean
operation is 100% outsourced with no back-up system. The chain is
made up of two tiers. Tier 2 suppliers are mainly food producers and
Tier 1 suppliers are processors. An example of how this works would be

Tier 2 is a potato farm supplier while Tier 1 is a processing supplier who

turns the potatoes into French fries. When it comes to their produce, it
is transported to distribution centers before allocation and delivery to
individual stores. McDonalds outsources non-core activities to expert
firms, which has proven to be successful for their supply chain. The
supplier terms for McDonalds are demanding; suppliers are expected
to be held accountable until the food product is consumed and the
customer is happy. McDonalds does not use legally signed contracts
and instead makes deals on a handshake. This is done because the
corporation operates on a one supplier-one product policy and
maintains long-term relationships regardless of the outside
environmental conditions. McDonalds has 30-35 stock-keeping units at
the supply side, which creates a streamlined operation. Sole
distribution partners are held accountable for the whole logistics
process in designated geographical areas. This can include the daily
hamburger order or a replacement appliance. In order to improve
efficiency, McDonalds continually examines these partners to make
sure they are meeting the goals and standards. The pull-strategy
allows individual restaurants to place orders with the distribution
centers that then re-issue the orders to suppliers who can then only
produce the quantities ordered. This enables suppliers to hold a small
amount of surplus stock, which optimizes efficiency.

Promotion: McDonalds is big on this topic. This is a major factor

in how the company reached such a high global recognition status.
McDonalds Golden Arches have become iconic. The 2003 Im lovin
it campaign used they key tactic of celebrity endorsement to appeal
to younger consumers. Justin Timberlakes vocals were used to launch
the campaign in 86 English-speaking countries and was also translated
for non-English speaking countries as well to have an even larger
outreach. More recently, McDonalds even launched a what were
made of campaign to fight back against negative P.R. regarding the
ingredients the company uses for their products.
People: McDonalds takes their service employees very seriously
as an aspect to the companys success as they represent the brand
directly when a customer enters a store. They want the staff to give a
good impression and in order to achieve this, sufficient training is
highly important. Training includes: thorough on-the-job training in
customer service, food handling, and preparation. In addition to this,
McDonalds also offers a training facility entitled the Hamburger
University, which is typically attended, by managers and future
franchisees. This allows them to sharpen their management skills and
improve proficiency in McDonalds restaurant management.
McDonalds goal with its employees is to create a lively working
environment. When this environment is created, a chain effect ensues
in which customers have a positive experience and are more likely to

return. In order to re-create this effect in different markets, the

recruitment and training processes are globally standardized.
McDonalds is always looking for energetic employees who are team
players and willing to be trained according to guidelines.
Process: The rapid pace in which McDonalds prepares and
serves food requires strict guidelines and regulations to be followed.
McDonalds creates a sense of transparency by allowing customers to
usually be able to see the kitchen while food is being prepared. For the
company to maintain its grip as a market leader, a high degree of
process standardization is a must to increase efficiency. This also helps
ensure that they have high standards of hygiene and food safety in all
restaurants.
Physical Evidence: This is McDonalds final P of marketing and
fundamentally means that they uphold a consistent look among their
restaurants including the dcor and staff uniform.
How the External Environment Effects McDonalds Marketing
Plans: When a company becomes as large and globally known as
McDonalds, many external environmental factors. To begin, lets
discuss political and legal factors. The political environment is made up
of factors that include but is not limited to: income tax policy, tariffs,
business margins, safety, and schooling. While conducting business
internationally a company may face countries with more powerful
consumer protection laws that may associate greater costs if there is a

violation in product quality or service through litigations and lawsuits.

An example is a 2006 lawsuit against McDonalds stating that the
company misinformed consumers about ingredients of their French
fries and hash browns. The fries and hash browns are fried in oil that
consists of 99% vegetable oil and 1% natural beef flavor. Casein, which
is a dairy product, and wheat bran were partially used to make the
beef flavor. However, before serving, McDonalds re-fried the fries and
potatoes in 100% vegetable oil. The plaintiffs charge was that
McDonalds deceived consumers by claiming that their fries and hash
browns were gluten, dairy, and wheat free. These lawsuits however
have a massive cost for paperwork, diagnosing customers, and legal
fees which means that McDonalds as a provider is much more affected
by these political, legal, and customer safety issues and will go to great
lengths to prevent them as much as they can. The other side of the
argument is that health experts blame McDonalds for contributing to
health issues including diabetes, obesity, and heart attacks.
Economic Factors: These include inflation, interest rates, and
exchange rates. This is a huge factor when it comes to global
expansion. Exchange rates affect the cost of exporting and the price of
imports while the cost of capital typically alters with the movement of
interest rates. A main specter to look into from an economic standpoint
of expansion is the purchasing power of the consumers. While the
higher purchasing power of Americans may consider McDonalds as a

bargain, countries such as Pakistan consider it a luxury purchase and

unaffordable to consume on a regular basis. If this continues,
McDonalds profits will decline in the country.
Social Factors: These factors include: career opportunity,
population growth, culture, and health of population. To use Pakistan as
an example once again, when McDonalds first expanded to this
location, it was not very popular. As time passed, changes occurred in
eating habits and lifestyle that made fast food more acceptable in the
Pakistani culture. McDonalds also offers Halal food, which takes into
consideration religious and cultural issues. McDonalds has also
increased employment through joining with many ethnic groups and
the alliance certification program with a cup of tea for everyone. In
1974, McDonalds established a charity house named Ronald McDonald
House that has helped over 10 million people since its assimilation.
Conclusion: McDonalds has become one of the most powerful
companies in the world. It embraces globalization and knows how to
conquer it. The company has not only been able to grow but also retain
its growth. It is still continuing to explore even more growth
opportunities. McDonalds strategic strategies, which are achieved by
using ample research and development, have allowed the company to
satisfy the tastes of various locals amongst the different countries it
operates in. McDonalds differentiation strategy is to be diverse from
its competitors such as adding something to their products that will

provide a distinctive value to its customers. This is done through welldesigned and managed pursuits that result in exceptional quality and
high brand recognition.

Conclusion
I would like to further analyze the three companies I have been
discussing. Through my research I noticed some similarities and
differences among the companies as far as the techniques that were
used for company growth, marketing strategies, use of resources and
other aspects. All three of these companies started out very small and
grew into globally recognized brands thanks to key people who saw the
potential these companies possessed. For McDonalds, it was Ray Kroc
who bought out the McDonald brothers for $2.7 million with the hopes
he would turn it into the largest and most successful fast-food chain in
the nation. For Apple, it was innovative co-founder Steve Jobs. While
Jobs had a turbulent relationship with the brand over the years, he
played a crucial role in the success of Apple due to his understanding
of consumer behavior and realization that in the technological world,
simplicity is key. For Coca-Cola, it was founder and developer John
Pemberton who started Coca-Colas success off with something as
basic as providing a red and while logo that was simple, yet iconic and
highly recognizable in the consumer world.

The three companies all focused on a key aspect when

globalizing: brand recognition. This is an important move especially
when taking a product to another company where the consumer
market may not be as familiar with your product line. Coke relied on its
distinguishable red and while logo with signature font while McDonalds
relied on its Golden Arches. Apple brand recognition was due to its
distinct look of new wave technology that was sleek and modern,
simple yet high-tech. McDonalds differs from Coca-Cola and Apple in a
slight way when it comes to globalizing their products. While Coca-Cola
and Apple focused on keeping their products the exact same in all
countries, Apple made a slight change due to differences in electricity
volts in varying countries. McDonalds, however, took a different
approach. McDonalds researched what kinds of foods are consumed
more in various countries they were expanding into and incorporated
these items into their menu. So while you could still order famous
items like the Big Mac, there were also other options depending on
which country you were in. For example, if you happen to be in France,
you can order a Croque McDo, which is Ham and Cheese on toasted
sweet bread. I believe they made this move because they are a food
company.
While a certain form of technology and particular soft drink can
be made universal, the vast differences in culture we have in our world
make it very difficult to sell the exact menu items all across the globe.

This is particularly due to the huge role food plays on culture. Some
Religions practice not consuming certain foods and McDonalds was
able to adapt to this such as selling McShawarmas, which is kosher
meat, offered in Israel. By doing this, McDonalds increases the scope
of people it can sell its products to. I also understand the logic being
used by Coca-Cola and Apple by keeping their products uniform
throughout the world. Because they sell a different line of products
than McDonalds, it makes more sense for them to keep their products
as uniform as possible when sold around the world. The elements that
make up these two product lines do not interfere with the differences
in culture and the company views their globalization as a way to unite
by providing people all over the world with a Coca-Cola that tastes the
same no matter where you buy it and an iPod that looks the same and
functions the same in Australia as it would here in the U.S.
Coke and McDonalds share similar issues regarding their
products: nutrition. Cokes nutritional matters even have the product
banned from Cuba and North Korea due to its high levels of sugar and
caffeine. McDonalds nutritional issues revolve around issues with their
consumption of their food leading to obesity. Both companies have
taken moves in order to attempt to cancel out the negative image
brought on because of the questionable nutritional values of their most
popular products. McDonalds incorporated a new Go-Active addition
to their menu, which offers salads, bottled water, and step counters to

support a healthy lifestyle. Coca-Cola not only owns Coke, but a

numerous amount of other brands that includes some healthier choices
such as: Dasani, Simply Orange, and Vitamin Water.
All three companies heavily rely on effective strategic marketing
to set them apart from competitors. McDonalds and Coca-Cola heavily
use campaigns such as McDonalds im lovin it and Coca-Colas
Share a Coke as creative techniques to get consumers thinking about
their brand. They also use the power of celebrity to their advantage as
many consumers look up to these famous figures and associating the
celebrity to the brand brings recognition and the effect of: Madonna
drinks Coca-Cola, I want to drink Coca-Cola because Madonna does
and so on. Apple focuses on using the differentiation strategy to set
them apart from competitors. They are the only manufacturer of
computer that has established physical stores across the globe.
Something I noticed that in my opinion may be the most important
factor as far as marketing and expanding globally is that all three
companies are flexible and adaptable. They all utilize new
technological ways of marketing such as social media, which has
become a vast playing field for promotional marketing and spreading
the word in general. There are many companies that have the
opportunity to expand globally, however to be successful after the
globalization will require a company to continue finding new ways to
reach people and keeping up with the ever changing technology so

they remain innovative instead of becoming obsolete. These three

companies are very adaptable and must be to keep up with changing
consumer tastes, views, and opinions.
I would state that the most intense part of my research was
definitely learning about Apples manufacturing in Foxconn. Learning
about the treatment of the employees and the high number of suicides
at this major Apple manufacturing supplier was saddening. Apple also
claims most of the negative media coverage about Foxconn is false,
making this topic even more controversial. I do believe that these
employees should be treated better, despite what Apple says. Apple
needs to decide whether they believe this is ethically acceptable or
not. If not, they then need to analyze the increase in costs that
providing human rights improvements would bring. If these costs
become to high, they should look elsewhere to manufacture these
parts. While I do understand this would be a massive change for the
company and effect many different aspects of their business strategy, I
think it is crucial for them to do something to improve the treatment of
their overseas employees working in the manufacturing plants. Such
an innovative company should not be mistreating employees,
especially to this extent.
I am appreciative of the knowledge I gained from my research of
these three extremely powerful and global businesses. I feel that I
learned so much from analyzing everything from what strategies were

applied, handling global expansion, and even mistakes made along the
way and how they adapted quickly to fix them. I know better
understand the importance of differentiation and effective market
strategies. It is also important to realize that these successful
companies faced many challenges and obstacles along the way but the
key factor is to continuously find new and innovative solutions to these
setbacks.

Sources
http://www.huffingtonpost.com/2009/06/12/venezuela-why-we-bannedc_n_215114.html
http://articles.mercola.com/sites/articles/archive/2008/01/12/whathappens-to-your-body-within-an-hour-of-drinking-a-coke.aspx

http://seekingalpha.com/article/52916-for-solid-companies-fed-ratechanges-are-just-noise?source=feed
http://www.bbc.com/news/magazine-19550067
http://www.environmentalleader.com/2011/08/08/coca-cola-a-casestudy-in-sustainability/
http://www.coca-colahellenic.com/sustainability/environment
http://www.coca-colahellenic.com/sustainability/environment
http://www.history.com/news/hungry-history/mcdonalds-surprisingstart-75-years-ago
http://www.slideshare.net/pridhavale/mcdonalds-marketing-strategies

http://www.aboutmcdonalds.com/mcd/our_company/mcdonaldshistory.html
http://www.mcspotlight.org/company/company_history.html
http://www.blurgroup.com/blogs/marketing/what-is-the-secret-tomcdonalds-global-branding-success/
http://www.economist.com/blogs/schumpeter/2011/06/fast-food-andcultural-sensitivity
http://www.businessdictionary.com/definition/franchise-agreement.html
http://www.investopedia.com/terms/j/jointventure.asp
http://study.com/academy/lesson/wholly-owned-subsidiary-definitionadvantages-disadvantages.html
http://www.chicagotribune.com/bluesky/originals/chi-steveeasterbrook-mcdonalds-technology-bsi-20141211-story.html
https://www.academia.edu/6465022/Global_Strategy_of_McDonald_and
_How_It_Reached_All_corners_of_World
http://www.forbes.com/sites/christinemoorman/2012/07/10/why-appleis-a-great-marketer/
https://www.smartling.com/blog/what-can-we-learn-from-coca-colasglobal-marketing-success/
http://www.forbes.com/sites/christinemoorman/2012/07/10/why-appleis-a-great-marketer/2/
http://www.macworld.co.uk/feature/apple/history-of-apple-steve-jobswhat-happened-mac-computer-3606104/
http://recode.net/2015/04/06/where-apple-products-are-born-a-rareglimpse-inside-foxconns-factory-gates/
http://www.globalresearch.ca/the-globalization-of-fast-food-behind-thebrand-mcdonald-s/25309
http://content.time.com/time/specials/packages/article/0,28804,18734
86_1873491_1873497,00.html
http://mtvanhelder.tumblr.com

http://businesscasestudies.co.uk/coca-cola-great-britain/within-anarms-reach-of-desire/sponsorship-and-brandrecognition.html#axzz3u2X1aXcr
https://cspinet.org/new/pdf/power-of-celebrity-soda-endorsements.pdf
http://www.saylor.org/site/wp-content/uploads/2013/02/BUS208-2.5.6Globalization-and-The-Coca-Cola-Company-FINAL.pdf
http://national.deseretnews.com/article/3092/BBC-exposes-inhumaneworking-conditions-in-Apple-factories.html
http://www.businessinsider.com/strategies-coca-cola-used-to-becomea-famous-brand-2015-6