McDonald’s is a fast food restaurant started in the USA. It has enjoyed its brand prominence by the company’s success in marketplace elsewhere. McDonald wants to enter the market in Saudi Arabia where the Holy place of the Islam has originated 1400 plus years ago. When the firm applies for a license to expand, the Food and Drug Administration in Saudi Arabia advises the firm to conduct a complete market analysis first and requires the firm guarantee all foods offered in the Saudi market must be in compliance with the “Halal” food certification. Please use our theories plus your own understanding to describe why this requirement is necessary for McDonald’s to operate in Saudi Arabia first; and then give us of your analysis of how and why the compliance with the “Halal” certification requirement will help to add values McDonald’s has offered not only in Saudi Arabia, but also in its restaurants in other nations.
MacDonald’s has a well-known brand name and reputation. When it wants to operate in Saudi Arabia it must analyze the Saudi market (y-axis). MacDonald’s must prepare their food in compliance with “Halal” food certification, because brand congruence has three layers: SIC, SAB fit with DAWN, and GEEB consistent with VIBS. Saudi Arabia is a 100% Muslim country, and in Islam it is prohibited to eat pork or any food prepared not in compliance with Islamic rules. So if MacDonald’s doesn’t comply with “Halal” food, no one will come and buy from it and it will lose a huge amount of money. It has to make food consistent with our values, identity, and belief system which is Islam.
From the In-Context (z-axis), every culture or nation has an Etic-Emic Account of conformance which guides peoples’ behavior. Because of “Halal” food certification is part of Islam, then every Saudi or Muslim must has an Etic Account of Conformance, which is something that people share or have in common in a specific culture.
MacDonald’s can add value to its brand equity by applying this certification in other nations even if it is not Islamic dominance. This “Halal” certification will attract the Islamic community or minority in every part of the world; this definitely will increase MacDonald’s market share and profits. However, they cannot ignore the dominant culture, so for example in USA they cannot provide only “Halal” food and not providing pork. They will lose a huge number of their loyal customers. So, if they offer both options, they will keep their loyal customers and attract new ones.
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