Quality management: success and failure factors for new global product development in global quick service restaurants: a case study of McDonald's Egypt

Abstract

Global quick service restaurants (QSRs), e.g. McDonald's and its iconic golden arches, have been in the vanguard of the globalisation phenomenon in non-Western countries. Various challenges have forced global QSRs to "think globally but act locally" spawning a new generation of products, referred to in this thesis as "glocal products". In Egypt, for example, the arrival of global QSRs in the late 1980s catalysed a highly-competitive industry comprising global QSRs (e.g. Wimpy's, McDonald's, Hardee's, KFC and Burger King - many of American origin) and local QSRs (e.g. Mo'men, Wessaya and Cook Door). American military interventions in the Middle East - Iraq and Afghanistan - fuelled anti-American feelings. McDonald's was seen to be too American and was boycotted. In response McDonald's sought to promote its local credentials through various activities including developing new glocal products - first the McFalafel sandwich and later the McArabia sandwich. The aim of this study was to investigate the critical success factors for new glocal product development activities through a single case study of McDonald's Egypt with two embedded units of analysis - two new glocal products - launched in Egypt: the failing McFalafel and the successful McArabia. The study involved a case study of four global and four local QSRs in Egypt through three phases of data collection involving in-depth semi-structured interviews with QSR experts and senior managers supplemented by the analysis of relevant documents. Phase one focused on external factors driving the new product development process. Phase two explored internal and product-related factors. Phase three focused on the new glocal product development process itself. A model of glocalisation through new glocal product development by global QSRs in non-Western countries (Egypt) identifying the critical success factors for new glocal products was developed. The model shows the interrelationships between a complex set of factors that can be used by practitioners to enhance the chances of success for new glocal products in non-Western countries.