Globalization everywhere around the world, asia, europe,

Globalization refers to the worldwide movement towards economic, financial, trade and communications integration. Culture refers to the norms of an organisation, a country, or other social grouping.Mcdonald’s is the world’s number one fast food chain, the symbol of globalisation. It was founded in San Bernardino, California in 1940. Today, the fast food chain serves 61 million customers per day across 119 countries, operating more than 30000 restaurants where 80% are franchises and the other 20% owned by the corporation. From just operating in the united states, for Mcdonald’s to expand inorganically, they started to go global. One of the growth strategy that mcdonalds has used to expand their company most successfully was through franchising. Franchise is that a person (franchisee) buying a license from the franchisor to trade using another firm’s name, logos, brands and trademarks. McDonald’s began to expand their business internationally in 1967, operating in a second country in canada and the third in puerto rico. Today, according to sources McDonald’s opens a new restaurant every three hours on average. In order for Mcdonald’s to operate in a whole new market, they need to be familiar with the market they are dealing with, the ansoff matrix is a very useful tool they can use, it is a marketing planning tool that helps the business determine its products and market growth strategy. It helps the business to examine the risk level of different growth strategy. After their success in being the world’s leading fast food chain, they have became strategic alliances with coca-cola, also one of the biggest company in the world. Strategic alliance refers to involving 2 or more organisations working together to realise a set of common objectives. No entity is created, original organisations remain intact. The cooperation between the two companies has expanded their revenue and gained more brand recognition. Mcdonald’s has franchises everywhere around the world, asia, europe, america and some places in africa. Wherever you go, there is always a mcdonald’s restaurant operating. This is the evidence of how global mcdonald’s is. The advantages of mcdonalds going global is that it could enter foreign markets and increase customer base by a lot, which could increase brand recognition. The more recognition it gets, brings them more external growth opportunities, like the partnership with coke. Expanding their corporation globally can also help spread risks. If the economy of one country collapses, other chains in different countries would still be standing and there would still be revenue, just a little less, which wouldn’t cause a huge problem to mcdonald’s. One of the main problems of going global is the cultural barriers. Take India as an example, It has one of the highest population in the world with 1.324 billion people, this would be amazing for mcdonalds to operate their restaurants in india. 20% of the entire indian population are vegetarians, and 82% of the population doesn’t eat beef, unfortunately, Mcdonald’s menu is highly constructed of meat, more importantly, beef. To tackle with this huge problem, which would likely happen to most other countries around the world, Mcdonald’s have decided to modify their product and appeal to the local culture and tastes while also keeping their own american style. Another problem of going global is that different countries have their own set of laws and regulations, to operate a new country for the first time, they would need to hire professionals to help with legal and finance issues, which would cost a lot, same case as doing market researches of the country to help modify their products and translating the menus. When operating a chain restaurant in a new country, getting to know about the local culture and getting a grasp of the local taste is very important, as every country has its own unique taste, not everyone would accept new foreign things very quickly. Mcdonalds has done a marvellous job on suiting the local culture while operating few thousands restaurants all around the world. For example, when Mcdonald’s first introduced their restaurants to france wasn’t a great success. French people like to take time when they dine, moreover, they appreciate great quality food and the environment, mcdonalds as a fastfood restaurant was exactly the opposite of what french people would like to have. Mcdonalds quickly did some tweaks and now france has the fanciest mcdonald’s in the world. Mcdonald’s was from the united states and everyone had huge appetites, but unlike in asia, asians usually have smaller portions of food compared to the europeans and the americans. To suit the asian culture, Mcdonald’s has made a few tweaks here and there, products sold in the asian region have smaller proportion than the other places to suit the appetites, new products have also been sold to suit the local tastes. Every challenges mcdonald’s faced, they have always had a solution to fix. Every restaurant of the regions have their own unique local taste to suit the local culture, that is one of the reasons why mcdonalds is so successful as a global business. Stakeholders affected most by this global business are the host countries and its people. There are a lot of jobs created, an advantage for the people, which improves the country’s GDP. New sets of technology, skills and ideas are also brought into the country. It brings up more competition hence increase efficiency. At the end, it increases the tax revenue, which goes back to the government. The disadvantages are that it bringing unemployment to the local businesses. Profits retained, meaning profits sent back to the country is held back. Most importantly, exploitation of local resources, this often happens because the lack of government control. In conclusion, globalization plays a huge role in mcdonald’s success of becoming the world’s number one fast food chain restaurant. Without expanding globally, there wouldn’t be the mcdonalds we all know today, being the symbol of globalization. Mcdonald’s greatest success was being able to adapt to the different cultures of different countries they are operating in. By selling unique products that not only keeps the american style, but also includes the local tastes, appealing to the local culture. The corporation’s flexibility and adaptation to the different cultures of different countries have brought them to becoming the symbol of globalization, what everyone has known mcdonalds for today.