Example #4: McDonald’s McDonald’s is the world’s leading food service retailer. It is headquartered in the U.S. and its

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Example #4: McDonald’s
McDonald’s is the world’s leading food service retailer. It is
headquartered in the U.S. and its brands include McDonald’s, Pret A
Manger, etc.
In 2009, McDonald’s employed 400,000 people, and its sales were
$22.34 billion (McDonald’s corporation only). There are more than
31,000 McDonald’s restaurants located in 118 countries.
McDonald’s is mainly engaged in international franchising. More
than 75 percent of McDonald’s restaurants worldwide are neither
owned nor operated by the McDonald’s corporation.
Why does McDonald’s horizontally fragment its production
process? Why does McDonald’s not control and manage many of its
foreign production facilities?