...Companies 2 Introduction 2 McDonalds’ Introduction 3 Globalisation and McDonald’s 3 Globalisation strategy of McDonald 5 1. Think Globally but Act Locally 7 2. Pricing 8 3. Advertising/Promotional strategies 8 4. Social responsibility 9 Challenges for McDonald 10 Conclusion 11 Reference 12 The Impact of Globalisation on Multinational Companies Introduction Globalization is a term used to describe the trend of growth; trade practices between undertakings perform beyond the geographic and economic boundaries, so that they exist (Waters, 2001 Brinkman, Brinkman, 2002). Globalization is used to describe the nature of the dominant international trade and business, as they are no longer limited to serving specific groups of consumers in the country (Levy, Hammond and Gross, 2003), the globalization of the increase is due to the expansion of economic and capitalist drive to achieve growth, and taking existing resources , improve the degree of efficiency of the operation. Thus, globalization is also very closely related to the outsourcing companies seeking to existing units, the production moved to another country, economically sensitive wage labour. A typical example of this is the first McDonald's in 1955 as a company in California, opened in 2013, is now in 195 countries and has more than 30,000 restaurants. This process, because it is difficult to control, some multinational companies responsible for the operation of globalization, it is obvious that there...
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...Behavioral Sciences ! ! ! ! ! ! ! Behavioral Sciences! Task 1: Anthropology! July 20, 2014! ! ! ! ! ! ! 1 Behavioral Sciences Globalization is not a new concept. It is a historical phenomenon that has been going on since ancient civilizations began to expand their territories. Globalization can be defined as the free movement of goods, services and people across the world in a seamless and integrated manner. (managementstudyguide.com, 2013) In this paper I will discuss two different examples of how native non western cultures have been impacted by globalization.! A. ! I chose to discuss the impact that a major food chain ,McDonalds, has had on the culture in China. McDonalds appeared in China in 1990, at this time there weren't many western food restaurants. (Griffith, 2008) The income level was low, but McDonalds set its prices relatively high, establishing itself as a high end restaurant. White collar workers chose to dine there, thus making McDonalds a fashionable hot spot. McDonalds is also very geared towards children. Due to the one child policy in China, parents dote and at times give in excess to their child, making McDonalds very successful. McDonald’s high prices made dinning there for the average Chinese citizen a luxury, and was valued as a special occasion. ! I chose to discuss the impact of Christianity on Africa for my second topic. The traditional African society believed in the existence of many Gods, where all objects...
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...GLOBALIZATION Globalization is a term that is constantly being referred to when discussing the current market. What does it really mean? Definition: The process of making world economy dominated by capitalist model ( World System Theory By I.Wallerstein) | Joseph chin (2006) stated that globalization is all about increasing the links amongst organizations around the world to the mutual benefit of all concerned. This involves shrinking space, shrinking time and disappearance of boarders. The idea of globalization may be simplified by identifying several key characteristics that are improved transportation and communication technologies, loosened regulations on financial institutions, increased demand for imported goods, and lowered international trade barriers. Joseph (2006) stated With record harvests being in developed countries it is somewhat easier to enter because they usually have fully development communication, distrubution,and transportation systems to name but a few facilities factors. Most successful global business are aggressively building their global strategies around, common technology used in many markets particularly in areas of information technology, when they high cost of research and development that must be recovered through sales in many countries. BACKGROUND OF THE COMPANY McDonald’s is one of the top restaurant chains in the world, touching the lives of people every day. The long journey of the burger brand started...
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...ASSIGNMENT BRIEF (I) Task One : Brief note on McDonalds McDonalds is one of the world’s leading fast food franchisee. They mainly concentrate on burgers with occasional additions with to suit the host country. They have designed meals targeted at adults to toddlers so as to reach wider range of audience. They operate in more then 119 countries and serve around 52 million customers per day which makes it a global brand. Globalization of McDonalds Globalization is the interlocking of different countries in the world in a political, economic, social and technological sense. People around the globe are more connected to each other than ever before. Information and money is exchanged at an alarming rate. Goods and services produced in one part of the world are increasingly available in all parts of the world. International travel is more common compared to earlier times. International communication is commonplace. This phenomenon has been titled "globalization." McDonalds Restaurants: Number by Region 1991 & 1996 Table [pic] Graph by Benjamin Holt, August 1999 Source: Human Development Report 1998 (www. global policy.org) The graph gives an example of how Mcdonalds have opened branches in various locations in such a short span of five years. Mcdonalds is a brand in itself and there hardly will be anyone who is not aware of their existence. The burger is an American food but Mcdonalds have gone to prove that it is accepted by 52 million people and is...
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...competitive advantage on McDonalds One of the competitive advantages is the strategy used in a company. In McDonalds Company, the strategies can be divided into several parts which are the strategies of competitors, globalization, health issues and how McDonalds overcome them, respect towards cultural differences among every different countries, and they put a strong focus on children. There are many international fast food franchises such as Burger King, KFC, Subway and etc. However, McDonalds are one of the international fast food and they are struggling that the consumers start to switch to their competitors in the year of 2002 (Han, 2008). It is because most of their competitors put a strong emphasis on offering healthier, hotter and higher quality of food yet cheaper. In this case, McDonalds used the strategy of adapting environmental change, that they start promoting healthier and affordable prices to satisfy the customer’s demands. Besides that, McDonalds also faces the impact of health issue. Some claims that McDonalds provide oily and unhealthy food that will lead a person to become an obese. However, McDonalds came out with the strategy of changing their menu to by adding salads and other lighter options into the menu. Other than that, McDonalds serve McGriddles sandwiches for breakfast in United States and Canada. Furthermore, they provide the customers to access the internet with the technology of wireless platform. This strategy of McDonalds has successfully attracts...
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...Cross-Cultural Perspective Globalization is the worldwide sharing of goods, ideas and culture through communication and technology (Velasquez, 2012, Chapter 3). It is everyone being able to do business with each other across the globe and selling their product. America is one of the leaders in globalization with its export of culture. With Americas free and open market to come up with its brilliant advertising themes which have the most diverse companies that are being spread across the globe. Americans food, art, entertainment, language, religion, politics, and American economics have saturated the world. American capitalism has become the driving force of globalization itself. The U.S. brands have been exported internationally and owned and operated by individuals around the world. One of the most apparent globalization businesses is fast food, and one of the most recognized is McDonalds and its golden arches. Mc Donald’s is one of the largest fast-food companies in the world. It has over 31,000 restaurants in 118 countries. There is 1.5 million employees and serves over 58,000,000 million people daily Shahid, M., Shafiq,(2014) Social Responsibility McDonalds Franchise has been trying to better its image and help its social responsibility issues. It has been on a journey to help serve good food with the right people, assist the environment and give back to the community. In 1980, the introduced the "nutritional information" in the restaurant which they showed what the food...
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...Course: International Business: BUS-201-1404 Assignment: Assignment 4 Chinese Flavors for American Snacks The brands in the busy supermarket in Beijing may be recognizable to most Americans, but the flavors certainly are not. Lays potato chips sold in Beijing are blueberry flavored rather than sour cream and onion. Cheetos come in strawberry and milk, and Minute Maid sells aloe juice instead of orange juice. American companies hoping to capitalize on China’s $186 billion fast food and processed food market have entered the country en masse. However, while they are selling the same brands they sell in the United States, they have developed much different flavors in the hopes of better attracting Chinese buyers. Frito Lay recognized early on that Chinese taste buds were quite different from American taste buds. Popular flavors in the United States did not appeal to Chinese consumers prompting Frito Lay and other U.S. companies to research Chinese preferences and develop products specifically for the local market. Accordingly, Tropicana sells cantaloupe juice, Chips Ahoy cookies are orange flavored, and Wrigley’s sells Chinese herbal medicine gum. Even toothpaste companies are selling products designed to tempt Chinese consumers. Crest sells a lotus flower flavored product, while Colgate offers salt flavored toothpaste. U.S. companies focused on the Chinese culture as a starting point for developing new product flavors. Product researchers inspired by traditional Chinese...
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...External Factors - McDonalds In today’s business world both internal and external pressures drive the corporate mission. Managers from all levels play an intricate part to the overall success of the business. The functions of management are planning, organizing, leading, and controlling. With globalization, technology and innovation companies must continue to stretch their imaginations to reach greater heights. Even though companies need to make continuing changes, both internal and external customers assist in the company’s overall success. Tami Scurti - Globalization In 1940 in the city of San Bernardino California the first McDonalds hamburger was served. Today there are more than 33,000 McDonalds in 118 counties (about McDonalds, 2011). To take this operation from a tiny bar-b-que drive up, complete with car hop service to the conglomerate it is today, is the essence of globalization. McDonalds restaurant is aggressively globalizing. One of the reasons they are so successful is their ability to create new foods for the market in which they are serving. In India one may order a McSpicy Paneer. A Paneer burger is vegetarian and made of curd cheese, and a very popular item. In Japan one may order a seaweed burger. Occasionally in France one can purchase a rabbit burger and wash it down with wine. Another reason for the success of McDonalds globalization is that they do not try to bring the American McDonalds to each country they bring McDonalds into the country...
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...Many changes have occurred in non-developed countries and societies since World War II. Many of these changes are due to globalization. Globalization is the development of integration and interaction among societies and cultures of different nations, a method motivated by international trade and investment and assisted by information technology (Globalization101, 2014, para. 1). Western countries and societies have invaded non-western areas with their beliefs and ways of doing things. This has dramatically changed how non-western societies do business, communicate, dress, eat and conduct life. The following three examples will demonstrate how globalization has impacted contemporary non-western societies and cultures. The first example will reveal how India’s wardrobe has been westernized. The second example will demonstrate how the introduction of McDonald’s to Japan has changed the way they approach meals. The third example will show how the media drove the Chinese government to allow international adoption. Example 1 The media and marketplace has caused India’s traditional wardrobe of men and women wearing dress to be quickly left behind and replaced with westernized clothing. The traditional Indian attire is becoming obsolete in both boys and girls and being replaced with (blue jean) trousers via market and cable network (Singh, 2013). Before globalization had an impact on India’s choice of clothing, their traditional wardrobe included fabric in the form of a dress or pants...
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...Phoenix We will explain how external and internal factors like globalization, technology, innovation, diversity, and ethics at national and international level will impact the way for McDonald managers apply the four functions of management as we. In addition we will talk about how delegation helps McDonald managers to minimize and manage these factors. Globalization McDonald is a company that is well establish all around the world. These company is a name that when it is mentioned people feel that it can be trusted and its products are of good quality as well. Currently McDonald has activities worldwide; from countries like New Zeal and, Finland, Canada and all the way to Chile basically they have presence in the whole world. According to Sun done McDonald is planning to invest in the Korean business if the market is opened under the free agreement with the United States which would be great. Question, how the plan their globalization. There have been reached many goals thru good planning. Being a well organized company has also pay for McDonald. The company has established six strong businesses in order to grow with the market trends of today and tomorrow. There are several businesses like Wal mart, Sam's. Many leadership is so important to McDonald’s that it has its own space on their main web page. In their home page they show several of their leaders since the year 1900 The top executive leaders in McDonald are from around the world and they have worked for the company...
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...Non-Western Globalization Globalization, as defined by the Cambridge American English dictionary, is “the development of closer economic, cultural, and political relations among all the countries of the world as a result of travel and communication becoming easy”. It goes on to state, “Optimists say globalization means more cultural choices for everyone”. In this paper we will examine two non- Western cultures and their response to globalization. “As globalization has had its positive impact on the society where it has shortened the distances between people of different religions and cultures, conversely it has also had negative effects on the culture as people tend to adopt western culture leaving their own culture and heritage behind.” (Anthropology, 2012) Prior to 1979, China had been closed off from the west. Chinese government was resistant to western influence and change. In 1979 Chinese government saw an opportunity in global trade, opening its borders to the western world and its influence. “Prior to being exposed to Western culture, China was a strong and prosperous empire and was the dominant political and cultural power in East Asia.” (Anthropology, 2012) With Globalization comes westernization and influence on all aspects of life, including culture and customs, dress and fashion, hairstyles, language, music and even construction. Western customs are embraced by the younger generations who see them as modern and exciting, rather than boring or obsolete. ...
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...EG462 February 13, 2011 Week 8: Examining Alternatives to Globalization There are many people who like the fact of globalization. Many cultures around the world like the fact that they can get Chinese food in America, American McDonalds in Mexico, Mexican food in Europe, and Italian food in China. People from many cultures have retail stores, like Wal-Mart, they can shop at and get low prices on their needs. There are other people who think that globalization in bad for different cultures and the world. These people criticize business and other organizations for globalizing their business. Critics of globalization blame business for taking their manufacturing jobs to lower income countries. These countries people will work for less than half of what Americans will work for. For example, Wal-Mart buys clothes from Asia countries and pays the business in the countries to grow their economy instead of American business. If Wal-Mart would buy American clothing they would be able to sell the clothes to people around the world and increase business in American clothing manufactures. There are other industries that are affected by American presence in the world. Besides Wal-Mart, McDonalds, and humanity efforts around the works the world sex trade industries import their employees or slaves from many other countries around the world. The sex trade is a millions of dollars industry that focuses on business men, local men, and the United States military. Critics believe...
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...McDonalds Introduction: The history of the McDonalds is old as before the Second World War. The first McDonalds restaurant is made by Patrick McDonalds on Huntington drive near Monrovia airport in California in 1937. Later on his two sons Maurice and Richard known as “Mac and Dick” shifts the restaurant towards the San Bernardino, California in 1940. The initial product this restaurant is only the hamburger, but later on the demand of the product increases and McDonalds for meeting the increase in demand offer different types of the fast food products like, Fried Chicken, Coffee and etc. This increase In the menu and the successive corporate strategy adopts by McDonalds makes it a leader of the market in USA “in 2011 with the revenues crossing $5.5 billion to $27 billion”. The key competitors of McDonalds are KFC and subways. The success of McDonalds is seen through the effect that more than 64 million customers visit its 33000 restaurants daily around the globe. In 2011, this company is at the 1st position on the Dow jones stock index providing 35% return on its stock. In 2012, the position of this company on the fortune 500 list will be 107, having revenues of $27006 million with the increase of 12.2% from year 2010 (Anonymous, 2012). Why McDonalds Differ from other: The corporate strategic management of any organization contributes towards achievement of competitive advantage. In McDonalds, the success is the base of its strategic management. Their unique and successive...
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...Globalization has always been a long disputed topic among critics. Until now, there is no concrete evidence that could deem whether globalization has an absolutely positive or negative impact on cultural diversity. It depends on individual perceptions. However, if I were to say, I believe that globalization does not post a threat to cultural diversity, but instead, help spread of indigenous culture, give people more freedom of choice, and furthermore generates greater cultural diversity within societies. With the avail of modern technology, there are more means of communication for people to freely express ideas, thoughts, and beliefs. In addition, globalization also lowers barriers between countries, making it possible to spread culture via websites and online community. Globalization raises awareness of both domestic and foreign culture, which in turn could help prevent prejudice and conflicts that may arise from cultural misunderstanding (Tandon, 2004). Evidence could be seen that even though, our world is in the stage of globalizing, there are still many religious conflicts. Imagined what would happen if globalization does not take place, you might unintentionally offended someone either by words or actions, thus leading to cultural misunderstanding. Though some people might argue that globalization post threats to cultural diversity, but “the forces of globalization are actually encouraging the proliferation of cultural diversity” (Lynton, 2007). McDonald did not only...
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...Question 1: Discuss any FIVE (5) management actions that have contributed to the success of McDonalds. Every organization has their different objectives, missions and visions to achieve in order to ensure company’s growth. However, the skills of management in the company are relatively important in order to motivate and provide guidance to employees so that everyone is in the right path to the common target. According to Pearson Educations (2012), management carries a definition of a skill that involves coordinating and overseeing the work activities of other employees so that the activities are completed efficiently and effectively. Managers, are those people who have the responsibility to ensure that the management of company is running smoothly and flawless. In an organization, there are different management actions that the company should be concerned. In the case study of McDonalds, our team has found out five significant management actions that have contributed to McDonalds’ success. There are strategic management, democratic leadership skills, human resources management, ethics management and 1.1 Strategic Management One of the management actions that have contributed to the success of McDonalds will be their strategic plan which called ‘plan to win’. The idea of this plan not only for them to be the biggest fast food restaurant chain but to be the best fast food restaurant chain. McDonald implement this plan by analyzing the 4 P’s which are product, price, promotion and place...
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