Executive Summary:
Recently globalization and internationalization has become more important for multinational companies. Many companies start to look abroad to expand their business activities as world become more unified. Managing business operation across the country is biggest challenge especially for international business today.
In this assignment I would like to discuss about McDonald. The McDonalds Company is one of the most effective and successful global restaurant chains around the world. They have used very effective management and worldwide growth strategies to enter new markets and gain a share of the foreign fast food market. This paper presents how McDonalds has attained this massive success, its best practices in the
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Hofstede (2001) defines the five dimensions of cultures as power distance, individualism versus collectivism, masculinity versus femininity, uncertainty avoidance, and long-term versus short-term orientation.
Japan is a high background culture and their method of communication is very difficult. As compare to the American communication culture. American do not go into the depth details of their culture. Many international companies often fail to understand the context of a particular culture as they rush in with their offer in that country. They feel that the strategy which had delivered them success in their home culture, will replicate in other cultures. P&G is a good example they made the mistake when they tried to sell “Camay” in Japan. Due to lack of communication. We have seen many branches of Mcdonald’s in different countries because we also eat the same food as American people eat but it does not mean we also consume the same content. Because it seems like we eat the same online platform it does not that Japanese people have same culture and beliefs. It was the first opportunity for McDonalds to expand business in Asia. So, they decided the use their own culture dishes in manue. Instead of using their home country strategy. There are other many countries where McDonalds does not exist especially central Asia (North Korea) has never been admirer a big brands, especially American brands. According to the United Nations in 2006 impose
McDonalds was founded in 1943, and 1967 British Colombia was its first international expansion, advertising to middle and upper class. McDonalds decided to expand internationally, due to the enormous success in America. There was heavy research involved in the expansion. Through globalization and internationalization, McDonalds were able to develop marketing strategies according to cultural needs, to serve specific target markets. McDonalds enter India’s foreign market and 1996 and is a tough foreign market to enter, but with McDonald’s success they were able to earn high revenue in India. The success strategy is researching and the development of food. McDonalds thoroughly analyzed the preferred taste, especially to not offend locals. Their key to success is to “think global, act local.”
There are five Dimensions of Culture that Hofstede mentions in International Business, The Challenge of Global Competition. These include: Individualism-collectivism, power distance, uncertainty avoidance, masculinity-femininity and long-term orientation/Confucian dynamism. Understanding these dimensions will assist a U.S.
About everyone at some age, at some point or another, and in some country has gotten a sample of American's symbol for fast food through the golden arches of McDonald's. This report will attempt to analyze the external and internal sectors that affect the company's success. The external analysis will provide opportunities and threats while the internal analysis will show indicators of strength and weakness. It will then follow up with critical issues, strategic alternatives, recommendations and implementation. The case studied is found in Appendix 2 of Mary Coulter's "Strategic Management in Action" book.
McDonald's has successfully met the demands of its customers by gradually adding to their menus. Breakfast meals, hamburgers, chicken, salads, salads and even desserts are provided by the restaurants which aids in the success of McDonald's. The organizational structure for McDonald's
McDonald’s has been in business since 1955. Through many years of great strategic and financial planning, it has become one of the most successful food chains in the world. In order to continue its great success, McDonald’s must continue to adapt to change. In this paper we will discuss the strategic and financial planning that would be necessary to keep McDonald’s on top of the food chain.
McDonald is a fast food franchise based in the United States and has various food outlets in other countries like India, United Kingdom, China, Japan, Canada and Australia. McDonald has been termed as the ‘World`s Local Restaurant’ because of its affordable take-out and sit down meals. The economic recession in the US in 2010 greatly affected businesses especially fast food restaurants whereby most small restaurants had to temporarily close their businesses. However, McDonalds remained afloat amidst tough economic times in the American market because of specific strategies which will be discussed.
I, Tayneata M. Starr, decided to discuss McDonald’s for this strategy report. McDonald’s began in the 1940’s as a “mom & pop” bar-b-que diner in San Bernardino, California by Dick and Mac McDonald (“McDonald’s History,” n.d.). In December of 1948, McDonald’s was rebranded as a self-serve drive-in restaurant (“McDonald’s History,” n.d.). The original menu was comprised of nine items, with the staple product being the “15-cent hamburger” (“McDonald’s History,” n.d.). Today, McDonald’s is a publicly traded organization that operates in the United States, Europe, Asia, Africa, Canada, and Latin America (“MCD Profile,” n.d.). As of December 2015, McDonald’s has 36, 525 restaurants in operation, offering products such as soft drinks, hamburgers,
I have chosen the company named by Mc Donald’s for my assignment topic as it is a worldwide and well-known fast food company covered in Asia and Europe countries .
famous five-dimensional theory (Five dimensions): Power distance, Uncertainty avoidance, Individualism vs. Collectivism, Masculinity vs. Femininity, and Long-term orientation vs. Short-term orientation. Hofstede five cultural dimensions are used to measure the cultural differences between different countries. It is an effective value-oriented architecture.(Orr and Hauser, 2008)
For example, bribery remains widespread in many countries, and while people may not approve of it, they accept it as a necessity of daily life.
McDonald’s as we know is the biggest multinational-corporation in fast-food industry. McDonald’s is a symbol of American power and hegemony just like Coca Cola and Nike which its operations is all around the world. And how McDonald’s could successfully entering global markets ? the key components is its standardization in all McDonald’s outlets in the world known as QSC&V (Quality, Service, Cleanliness, Value). You can see and feel the same burger quality, same fast service, cleanliness of restroom and the same price in all McDonald’s outlets in every country. McDonald’s also made a strong relationship with supplier because this is another key success, every supplier which supply
Hofstede 's cultural dimensions theory is a framework for cross-cultural communication, developed by Geert Hofstede and led by his curiosity as a social psychologist to the compare different nations. The framework describes the effects of a society 's culture on the values of its members, and how these values relate to behavior. His theory consist of six dimensions along which cultural values could be analyzed (The Hofstede Center, n.d.). The dimensions are:
The world offers significant business opportunities for every company, however, opportunities are accompanied by significant challenges for managers. Managing global operations across diverse cultures and markets represents a big challenge and opportunity for companies. To compete in the global market and be successful, companies must learn the strategies, policies, norms and technology necessary to conduct international business. The opportunities for global expansion are numerous, and attaining success is a matter of developing the right strategy to win local markets and its consumers.
The company researched for the purpose of this paper is McDonald 's. This company 's history dates back since 1940 when Mac and Dick McDonald initially opened McDonald 's BBQ restaurant located in San Bernardino, CA. In 1948 they shut down the restaurant, just to reopen it as a self-service drive-in restaurant. According to About McDonald’s (2012), their menu included only 9 items, such as: milk, coffee, soft drinks, cheeseburger, hamburger, potato chips, and a slice of pie. Potato chips were then replaced by French fries. The history of this company is significantly market by Ray Kroc, who in 1954 at a visit to McDonald 's in San Bernardino decides to have a franchise of McDonald 's. A year later, in 1955, he opens his first restaurant in Des Plaines, Illinois. The franchising plan allowed growth and by 1965 there were more than 700 restaurants across United States. McDonald 's
Since McDonald’s is the most well know fast food chain in the world with a market cap of 69.35 billion, brand recognition is their biggest strength. The secret of McDonald’s success is its willingness to innovate and maintain consistency in the operation of its many outlets. In recent years McDonald’s has introduced Premium Salads, Snack Wraps, fresh Apple Dippers in the United States, and Corn Cups in China. Also, McDonald 's products are priced so low that economic conditions are almost insignificant.