International Business

NATIONAL ECONOMICS UNIVERSITY
SCHOOL OF ADVANCED EDUCATION PROGRAMS

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INDIVIDUAL ASSIGNMENT
ARTICLE: Customization and standardization of the

business strategy of foreign enterprises in Vietnam. The
McDonald’s case and the fast food sector
Name: Nguyen Le Ngan Trang

Class: Advanced Finance 62B
Student ID: 11207222
Lecturer: Assoc. Prof. Bui Huy Nhuong
Ha Noi, June 2023

1. INTRODUCTION
The dynamics of global development have brought about a rapid and significant change in
the fundamental trajectory of technological progress, scientific advancements, economic
activities, and cultural practices. The fast food industry appears to be experiencing
continuous growth and expansion as companies operating in this sector expand their
operations. In addition, the adoption of healthier lifestyles by Vietnamese individuals has
contributed to a rise in the popularity of fast food in Vietnam. The Vietnamese government
has implemented franchising regulations to enhance the operational efficiency of fast food
operators.
This analysis will explore various formulating strategies that can be employed to analyze the
recipe for success in the aforementioned topic. These strategies include Porter's competitive
strategies model, encompassing differentiation and low-cost leadership, as well as Miles and
Snow's 'strategy typology', which outlines prospector, defender, analyzer, and reactor
strategies. Selecting the most suitable strategy is of paramount importance for Mc. Donald's
in order to achieve success.
1. AIMS OF THE RESEARCH

The objective of this study is to determine the products that are suitable for targeting in a
stable environment, with the aim of implementing an efficiency strategy that will retain
existing customers. Some initiatives may be directed towards a novel and dynamic setting
that offers potential for expansion. Besides, the consideration of Mc. Donald's
implementation of strategies and their interplay with their business structure and external
environment is of paramount importance in the context of their entry into the Vietnamese
market.
2. RESEARCH METHODS
3.1. Sample and data
This study examines and contrasts McDonald's business strategies with those of other fast
food brands that have been present in the Vietnamese fast food industry in recent years,
including KFC and Lotteria.
3.2. Theoretical methods

Customization and standardization strategies are crucial in the fast food industry when
foreign enterprises engage in business. These strategies ensure that international standards
are maintained while catering to the unique demands of each market. In addition, there exist
three factors that facilitate standardization as follows. The phenomenon of globalization,
coupled with advancements in technology, has resulted in increased international trade,
facilitated communication, and improved ease of travel. The second aspect to consider is the
dichotomy between standardization and adaptation. Standardization, also known as
globalization, involves the creation of standardized products that are marketed globally using
a standardized marketing mix. This approach is characterized by the essence of mass
marketing. The optimal approach to adaptation, also known as localization, involves a
strategic balance between standardization and customization that achieves cost efficiency
and customer satisfaction. This approach is rooted in the fundamental concept of
segmentation and requires a global perspective with local implementation.
3.3. Research methodology
Conducting research and citing various sources from the internet, including e-zines, scientific
web pages, and research studies, pertaining to a particular topic featured on web pages.
The aforementioned resources, namely scholar.google.com.vn, www.proquest.com,

booksc.org, and slideshare, are commonly utilized in academic settings. The research is
centered on analyzing the strategies employed by McDonald's to attain significant
accomplishments, its exemplary approaches in the worldwide food sector, patterns and
difficulties encountered in its international expansion.
3. SCOPE OF THE RESEARCH

In order to provide a comprehensive illustration of international enterprise strategy in
Vietnam, it is imperative to examine notable examples such as Lotteria, KFC, and the fast
food industry as a whole. Additionally, a specific case study of McDonald's can offer valuable
insights. This study examines the global strategy and expansion approach of McDonald's
relying on empirical data such as quantitative data, records, interviews, observations, and
surveys as its fundamental basis.
4. USEFULNESS OF THE RESEARCH

The study provides a lucid perspective on the fast food sector in Vietnam during recent
years, with a focus on McDonald's as a case study, along with two other comparable
examples, namely KFC and Lotteria. The following salient observations can be made from
the study:
● The scholarly inquiry has identified two challenges that McDonald's encountered
upon their entry into the Vietnamese market. The primary offering of Mc. Donald's,
namely burgers, does not appear to be a cuisine that garners significant interest
among the Vietnamese population. Vietnamese bread is a widely favored food item,
commonly consumed and comparatively more affordable than hamburgers. The
challenges faced by the industry are persistent and well-known, encompassing
issues such as menu offerings, flavor profiles, and service quality. Furthermore, the
inhabitants of Saigon exhibit a receptive and hospitable attitude towards unfamiliar
cuisine.
● The author provided a clear analysis of the KFC and Lotteria cases, and conducted a
comparative evaluation with McDonald's in an impartial manner.
● The articles also successfully named the strategies that The McDonald's corporation
has established a presence in Vietnam, employing a multinational strategy which is a
customization factor – multinational strategy and standardization factor – global
strategy.
.
5. LIMITATION OF THE RESEARCH
The limitation of this approach is its failure to undertake a comprehensive empirical
investigation. The qualitative research methodology involves the systematic exploration and
analysis of data obtained from various sources, including existing literature, articles, and
reviews.
Acquiring accurate and comprehensive input data for subsequent research endeavors can
prove to be a challenging task. It is hoped that the findings presented in this article can serve
as an initial step and prerequisite for future research endeavors.
6. CONCLUSION
After studying and analyzing about the article, it comes to some conclusion that
although the author addressed the topic of corporate social responsibility among foreign
businesses, the concept of Social Responsibility is an area of scholarly inquiry and corporate
application that explores the methods and remedies necessary to ensure a sustainable
development that achieves a strategic equilibrium between economic expansion and social
and environmental progress at both the macro level (international, regional, national, and
local) and micro level (enterprise level).
In the present era of globalization, developing nations are witnessing a continuous evolution
and adjustment of policies and regulations pertaining to corporate practices. This shift can
be traced from the erstwhile financial model that prioritized profit maximization to the
contemporary social model of corporate social responsibility that emphasizes on the triple
bottom line of people, planet, and profit.
REFERENCES
Nguyen. (2019). International journal of research in marketing management and sales.

Customization and Standardization of the Business Strategy of Foreign Enterprises in
Vietnam. The McDonald’s Case and the Fast Food Sector.

International Business

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NATIONAL ECONOMICS UNIVERSITY

SCHOOL OF ADVANCED EDUCATION PROGRAMS

ARTICLE: Customization and standardization of the

Name: Nguyen Le Ngan Trang

Ha Noi, June 2023

1. AIMS OF THE RESEARCH

3.2. Theoretical methods

The aforementioned resources, namely scholar.google.com.vn, www.proquest.com,

3. SCOPE OF THE RESEARCH

4. USEFULNESS OF THE RESEARCH

Nguyen. (2019). International journal of research in marketing management and sales.

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