The major problem faced by McDonald’s in the international market was the use of the standardized operating model. McDonald’s used to source a majority of its ingredients from the United States. However, with the passage of time, McDonald’s has developed capabilities in building and managing its supply chain. When McDonald’s enter a new country, it first imports its suppliers. With an increase in market knowledge and experience, McDonald’s tries to source locally.The leaders of McDonald’s believe that people are one of the most important resources. Therefore, significant investment has been made in the growth and development of employees. McDonald’s believes that its success depends on the commitment to deliver higher value to the customers. One of the key factors that have allowed McDonald’s to achieve success in the international market includes the hiring of locals. This has resulted in an increase in the acceptance of the brand in the foreign market. The ‘Think Global, Act Local’ perspective of the company is the key success factor. The formation of joint ventures with local partners has also allowed McDonald’s to deal with challenges present in the local environment. This strategy has allowed McDonald’s to deal with bureaucracy present in a new market.The theory of internationalization that is applicable to the case of McDonald’s is cultural distance. The cultural-distance theory has highlighted the need for considering local culture when expanding into a new market. According to this theory, it is important for businesses to identify differences in their host culture as well as a new culture. The identification of cultural differences helps in the development of culturally appropriate strategies. The cultural-distance theory has also highlighted the need for forming joint ventures in the global market.