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AQA 7138 · Paper 3 · 3.3.3

Glocalisation explained for A-Level Business

The new AQA course asks you to judge when a global business should sell the same thing everywhere and when it should change for each country. Here is how glocalisation works, how firms enter new markets, and three real cases.

By Jay Fanimo · 6 min read · Updated 31 October 2026 · For Year 12 students on AQA A-Level Business 7138, and their parents and teachers

Short answer: glocalisation means "think global, act local". A business keeps one global brand and way of working, but changes parts of its product, price, promotion or place to suit each country. It sits between a standardised global strategy (the same everywhere) and full local adaptation. In the exam, you judge which gives the better balance of cost and sales.

What the 7138 specification asks

Global strategy, including glocalisation, sits in 3.3.3, Strategy. It is A-level only and is assessed on Paper 3 [1]. Glocalisation is new to 7138: the word does not appear in the old 7132 course.

It links to marketing. The 7138 marketing section (3.1.3) includes international marketing as A-level only content [1]. So expect questions that ask how far a firm should adapt its marketing mix (the 4Ps: product, price, promotion and place) for a new country.

Glocalisation vs a standardised global strategy

A standardised global strategy sells the same product, with the same brand and message, in every market. A glocalisation strategy keeps the global core but adapts the parts that local customers care about. Most firms sit somewhere between the two.

Standardised global strategyGlocalisation
What changes by countryVery littleSelected parts of the mix, such as menu, sizes, price or adverts
Main advantageEconomies of scale: lower unit costs from one design, one supply chain and one campaignHigher demand, because products fit local tastes, culture, religion and income
Main disadvantageProducts may not fit local needs, so sales are weakHigher costs: extra research, product design, suppliers and stock
BrandOne consistent global imageGlobal image kept, with a risk of mixed messages if it goes too far
Works best whenNeeds are similar everywhere, such as phones or softwareCulture shapes buying, such as food, clothing and media

Advantages of glocalisation. Local products can win customers that a standard product would lose. They can also reduce legal and cultural risk, for example around food rules. The brand still feels familiar, so the firm keeps some of the trust built elsewhere.

Disadvantages of glocalisation. Every change adds cost and complexity. Unit costs rise because production runs are shorter. Managers need good local market research, which takes time. Too much change can weaken the global brand.

Ways of entering international markets

How a firm enters a market shapes how much it can adapt. The main methods differ in cost, risk and control:

MethodWhat it meansControlCost and risk
ExportingMaking goods at home and selling them abroadHigh over the product, low over sellingLow
Licensing and franchisingA foreign firm pays to use the brand, product or formatLow to mediumLow, but profit is shared
Joint ventureTwo firms set up a shared business in the new marketSharedMedium; partners may disagree
Direct investmentOpening or buying your own sites abroad (foreign direct investment)FullHigh

A local partner brings local knowledge, which helps glocalisation. Direct investment gives full control, but the firm must learn the market itself.

Real examples: Primark, McDonald's and Greggs

Primark in the US (direct investment). Primark is owned by Associated British Foods (ABF). On 10 September 2026, ABF said Primark had 47 US stores, all its own shops [2]. It expected US sales to grow about 11% in the final quarter, but said underlying trading was challenging [2]. ABF said it was changing space in stores as it "increasingly localise[s] our product offer in the US" [2]. This suggests the standard format needed changes for US shoppers, so Primark is moving towards glocalisation.

The same statement shows other entry methods. Primark has franchise stores in Dubai and Kuwait, run with Alshaya Group, and will extend this to Saudi Arabia. It also signed a franchise agreement to open stores in Mexico [2]. Franchising lets a partner with local knowledge carry much of the cost.

McDonald's in India (adapting the product). McDonald's keeps one global brand. But in India its restaurants do not sell beef or pork, and kitchens are split into vegetarian and non-vegetarian sections, as reported in September 2012 [3]. Its menu includes the McAloo Tikki, a burger with a potato-based veggie patty [4]. That is glocalisation: a global brand, with a product changed for religion and diet.

Greggs in Tenerife (a UK brand abroad). In the first half of 2026, Greggs opened its first international travel hub shop, at Tenerife South Airport [5]. It opened at the start of June 2026 through a partnership with Lagardère Travel Retail, which runs airport shops [6]. The shop sits next to passport control on a main departure route to the UK, and the menu is tailored to the local market and passenger mix [6]. Reuters reported that it sells the core range plus local items such as Spanish omelette breakfast rolls [7]. The chief executive said further overseas sites would depend on Tenerife's results [7]. This is low-risk market testing: a partner, one shop and a mainly core menu with a few local lines.

GlocalisationKeeping a global brand and strategy while adapting parts of the marketing mix for each local market.
Standardised global strategySelling the same product, brand and message in every country.
Economies of scaleLower cost per unit as a business produces more of the same thing.
FranchisingLetting another firm run outlets under your brand and format in return for fees.
Joint ventureA new business set up and owned by two or more firms, sharing cost, risk and control.
Foreign direct investment (FDI)A firm opening or buying its own operations in another country.
Exam practice: Assess (9 marks)

Practice question, in our own words: Assess whether a UK value-fashion retailer should adapt its clothing range for US shoppers rather than sell the same range as in Europe.

Analysis: US shoppers may want different sizes, styles and seasonal ranges from European shoppers. So a range built for Europe may not sell, because it does not fit local needs. Therefore adapting the range can lift sales per store and help win a new brand's first customers. Primark's move to localise its US offer in 2026 shows a real firm making this choice.

Evaluation: However, a separate US range means shorter production runs, so unit costs rise. For a value retailer, low cost is the whole offer, so margins are at risk. On balance, adaptation makes sense if US stores are a long-term priority and the extra sales exceed the extra cost. If US sales stay small, a mostly standard range with a few local lines is safer.

Notice the structure. The analysis is one chain joined by "so", "because" and "therefore". The evaluation weighs cost against sales and says what the judgement depends on.

Practise this topic

Our free Business pack gives you real UK examples and practice questions to build exam answers like the one above.

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To practise international marketing and glocalisation with instant feedback, try the CC Business platform, Year 12 track.