Cross Cultural Management Practices Mcdonald's

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CROSS CULTURAL MANAGEMENT

Study on McDonald’s Corporation India & US culture
“Food is the oldest global carrier of culture.”

Submitted By
ShyamJS

Introduction
It is sometimes amazing how different people in other cultures behave. We tend to have a human instinct that 'deep inside' all people are the same - but they are not. Therefore, if we go into another country and make decisions based on how we operate in our own home country - the chances are we'll make some very bad decisions.
With rapid globalization the organizations are going increasingly global and cross cultural management is the need of the hour for the organizations to get adapted to global environment. Globalization has affected almost every aspect of life in almost
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McDonald's primarily sells hamburgers, cheeseburgers, chicken products, French fries, breakfast items, soft drinks, shakes, and desserts. In response to obesity trends in Western nations and in the face of criticism over the healthiness of its products, the company has modified its menu to include alternatives considered healthier such as salads, wraps and fruit. Most standalone McDonald's restaurants offer both counter service and drive-through service, with indoor and sometimes outdoor seating. McDonald's has become emblematic of globalization, sometimes referred to as the "McDonaldization" of society. McDonaldization, term used by sociologist George Ritzer to describe the process by which a society takes on the characteristics of a fast-food restaurant. In the early 1990’s McDonalds was facing problems due to changing customer preferences and increasing competition. Their competitors are also globalized. Some of them include Burger king, Subway and Yum. Customers were becoming increasingly health conscious and they wanted to avoid red meat and fried food. During this time, there was an increase in competition from super markets, convenience stores, mom-and-dad delicacies, gas stations and other outlets selling repeatable packaged food. So, it increased its operation worldwide. 80% of its restaurants are around the globe other than US. Its overseas restaurants accounted for nearly 60% of the total sales.

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