McDonald's is the world's biggest restaurant chain, and according to Interbred, the 8th most valuable brand. It seems everyone recognizes the golden arches. The company is extremely successful despite being a symbol of American imperialism, and being hated by animal rights activists, groups promoting healthy diets, and anti-capitalists. There are signs that McDonald's is having difficulty keeping up with the trends in the restaurant industry, maintaining its positive brand image, and getting the message out about its products. The company's share price stands at a seven-year low, and in September 2002; Salomon Smith Barney forecasted McDonald's stock would under perform. McDonald's is experimenting with new restaurant designs, diversifying its menu offerings to include healthier choices or touches of cuisines favored in the local area, and lowering prices on various items to try to appeal to more people, keep its image fresh, and increase sales. Yet Mark Kalinowski of Salomon Smith Barney says those things do not make up for rude McDonald's workers, order mistakes, or sluggish service. And Kalinowski is not the only one to have noticed. Many people around the world are questioning McDonald's ability to meet its commitment of quality and service in its restaurants. Even the role of Ronald McDonald in the company's communications may be faltering. Leaked internal memos suggest company executives are questioning his relevance for today's children. The company's commercials in the UK have taken a turn for the worse lately, lacking a cohesive message. The company has been beleaguered by bad press - vegetarians suing over eating its beefbased cooking oil, teenagers accusing the restaurant of making them fat, popular books criticizing the fast food industry, and fears of mad cow disease. The company seems to be responding by supporting more community programs and increasing its sponsorship of charitable causes, such as funding Unicef's World Children's Day. Whether McDonald's strategy to stay ahead of the competition will be effective remains to be seen.

Questions 1. In general, where do you think McDonald's stands on the range from standardization to adaptation in terms of its global marketing?

2. What are some of the issues in having a mascot like Ronald McDonald in another culture besides the U.S.? How can it be effective in other national settings?

3. The text discussion refers primarily to manufactured products. However, do you think that it applies to the problems that McDonald's has in the restaurant business?