American Multinationals in Iran: Coca Cola & McDonald’s (Essay Sample)

American Multinationals In Iran: Coca Cola & Mc Donald’s
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Introduction
The background of Coca Cola and Mc Donald’s
American oriented products have been gaining interests in the global market with Coca-Cola Company and Mc Donald is not being an exception. Coca Cola and Mc Donald are among the most successful multinational corporations both of them are market leaders in the food and beverage industry. A pharmacist Dr. John S. Pemberton founded Coca-Cola in 1986; today it is a multinational corporation with its presence in over 200 countries. The two brothers Richard and Maurice found MacDonald on the hand in 1940
MacDonald’s is in San Bernardino California. Its menu consisted of barbecued beef and pork sandwiches. During the Second World War, the firm had to change their business model by diversifying their menu and self-serve instead of the first drive-through, today they have a presence in close to 120 countries, with close to 36,258 restaurants (Corporation, 2008). To expand internationally, MacDonald has developed a customized strategy; each country treated differently basing on its culture, geographical location, and natural uniqueness or variation. The personal treatment of each country is observed in India where they use chicken meat instead of beef because the Hindu religion forbids the consumption of beef (Francois, 2012)
Strategic alliance
In 1955 McDonalds partnered with Coca-Cola, a beverage was required when the first McDonalds restaurant established in Des Plaines, with almost a similar company structure, and Coca-Cola was the most suitable partner (ANDERSEN, 2006). The alliance between the two multinationals was a big success making them the world most major food service retailers. According to the McDonald Corporation, the Association provided them with a competitive advantage over their competition in the market. Despite this alliance, the two companies’ internal structure, strategy, and goals remained different (Coca-Cola Company, 2014).
Iran and its embracement of the Mc Donald’s and Coca-Cola
The Middle East is one of the most sophisticated markets in the world; it consists of close to 20