Question

PLEASE GIVE AN INDEPTH EXPLANATION AND AS WELL REASONING. AT LEAST ONE PARAGRAPH OR MORE.

McDonalds is a company which has successfully grown internationally through franchising. Do you think it could have been more successful if it had used joint venture or subsidiary forms of entry? Give reasons for your answer.

Answer 1

McDonald's is a company which has successfully grown internationally through franchising. Do you think it could have been more successful if it had used joint venture or subsidiary forms of entry? Give reasons for your answer.

No, I do not think that McDonald's could have become more successful through the use of joint ventures or subsidiary form due to the factor that allowed them both security and lesser risk as well as lesser investment. Which technically means that they could create more business from the same amount of finance and essentially use the saved capital for marketing and promotions which is exactly what they did, they franchised their business, advertise their brand name and leveraged customer loyalty as a basis for creating loyalty amongst the people and generally could not have been as successful as being involved in a joint venture,.