Examine how corporate strategies influence the opening and the closing of branch plants of one multinational company that you have studied. - Leaving Cert Geography - Question B - 2011

One key corporate strategy employed by McDonald's is the franchise model, which allows rapid expansion and local adaptation.

The opening of branch plants at McDonald's is significantly influenced by its strategy of franchising. By using local franchisees, McDonald's can open new branches quickly in various regions, leveraging local knowledge for site selection, understanding customer preferences, and managing operational costs. Additionally, strategic alliances with suppliers also facilitate the opening of new locations by ensuring the consistency and quality of supplies necessary for operations.

The closure of McDonald's branch plants can be attributed to several corporate strategies, including market performance assessments. McDonald's regularly evaluates the profitability of each location; if a branch consistently underperforms, decisions may be made to close it. Another factor is the strategic shift towards digital ordering and delivery services, which may lead to the closure of locations that do not align with this modernized approach. Additionally, economic downturns or shifts in consumer preferences can prompt the company to reevaluate its presence in specific markets.