Macro Environment Mcdonald's

1395 Words3 Pages

The purpose of this paper is to discuss external and internal factors affecting McDonald’s management functions. This will be accomplished by explaining how McDonald’s deals with each of the external and internal factors. There were three factors that were chosen to outline the success of McDonald’s corporation. The first factor is globalization, which is define as closer contact between different parts of the world, with increasing possibilities of personal exchange, mutual understanding and friendship between "world citizens". Diversity, the difference among people and cultures, is the second factor discussed in the paper. The final factor is ethics, which can be defined as a set of principles of right conduct. This paper explains how the McDonald Corporations uses the factors to conduct business around the world. In today’s society, corporations and enterprises are expanding their businesses in the global markets. Globalization is necessary for success and survival in the worldwide market; however, global competition is not easy (Bateman & Scott, 2004). By the end of the twentieth century, the list of Fortune 500 companies was no longer only United States corporations due to an increase in international companies joining the list (Global Capitalism, 2005). As a leading food service retailer, McDonald’s joins those corporations with restaurants in 119 countries (McDonald’s, 2004). Important strategic decisions are a key factor to their success with consideration for both internal and external factors. When considering the foreign market, companies need to consider there are risks. There must be local marketing to appeal to the local consumers and also to build relationships and trust (Bateman & Scott, 2004). Therefore, the ... ... middle of paper ... ...9, 2005, from http://www.mcdonalds.com/usa/good/report.RowPar.0002.ContentPar.0002.ColumnPar.0001.File.tmp/USA%20Report%20Layout%20(No%20Back%20Cover)%20(12-1-04).pdf Robinson, W. I. (2005). Global capitalism: the new transnationalism and the folly of conventional thinking. Science & Society, 69(3), 316. Retrieved October 10, 2005, from ProQuest database. Sustar, B. & Sustar. R. (2005). Managing marketing standardization in a global context. Journal of American Academy of Business: Cambridge, 7(1), 302. Retrieved October 10, 2005, from ProQuest database. Welcome to McDonald’s India. Retrieved October 10, 2005, from http://www.mcdonaldsindia.com/ourfood/nonveg/index.html www.mcdonalds.com, People, 2005 www.mcdonalds.com, Environment, 2005 www.rmhc.com, Ronald McDonald House Charities, 2005  Lifestyle changes in china  It's up to the consumer to demand action

Show More
Related

  • The Devastating Effects of Neoliberal Policies

    1391 Words  | 3 Pages

    Makwana, R. (2006). Globalization: neoliberalism and economic globalization. Retrieved April 05, 2014, from Share The World’s Resources website: http://www.stwr.org/globalization/neoliberalism-and-economic-globalization.html

    Read More

  • Mcdonalds Case Study

    1950 Words  | 4 Pages

    Our research indicated more viable strengths than weaknesses. Strengths such as brand recognition, steady growth in global markets, and strong leadership. McDonald's has become part of America's culture and now the same can be said for the global arena based on the demonstration of growth and continued dominance over competitors. Business Week Magazine even ranked McDonald's as "one of the ten most recognized brands in the world", a position that creates significant opportunities for the company. An important strength that continues to have the most dramatic impact on McDonalds is their top level management. Even though this is classified an as internal strength, McDonald's has capitalized on a management style that helps to infuse a strong culture. A dynamic aspect of the McDonald's culture is the willingness to innovate and adapt, thus making necessary changes when the need arises.

    Read More

  • The Globalization of McDonald's

    2634 Words  | 6 Pages

    A world without the Big Mac, Happy Meals, Chicken McNuggets, and the phrase “I’m lovin’ it,” is almost inconceivable. People around the globe have become accustomed to the high gleaming golden arches that make up the famous emblem for McDonald’s. McDonald’s has grasped the concept that culture flows from power. In this case, the American culture flows through the veins of this fast-food giant and the more that is supplied, the greater the demand. It is no secret that McDonald’s has become one of the world’s largest fast-food retailers. It has become a well known icon that has played a huge part in globalization, with chains located in many different countries… transforming the meaning of fast-food all around the world.

    Read More

  • McDonald's: A Global Company

    1560 Words  | 4 Pages

    The purpose of this research is to provide a substantial assessment/explanation/analysis of the degree to which the McDonald’s operates based on a universal cultural or whether it is most strongly influenced by the national culture of that country. The researcher will explain how McDonald’s uses diversity and organizational initiatives to contribute to the corporate bottom line. Finally, the researcher will evaluate the company’s bottom-line rationale for diversity initiatives.

    Read More

  • Mcdonalds and Starbucks Case Study

    1784 Words  | 4 Pages

    Compare the globalization approaches of Starbucks & McDonalds The parameters to be used for this comparison are:

    Read More

  • Critical Analysis of Standardization and Adaptation in International Marketing

    2453 Words  | 5 Pages

    The proponents of standardization approach in international marketing views the globalization trends as a facilitation of technological uniformity, greater level of similarity, and higher convergence of consumer preference, taste, and needs. The growth of international communication channels also facilitate the standardization including th...

    Read More

  • McDonalds and Their Impact On Society

    1158 Words  | 3 Pages

    "Studying McDonald's ABroad: Overseas Branches Merge Regional Preferences, Corporate Directives." Editorial. Nations Restaurant News 11 Nov. 2005: n. pag. MasterFILE Premier. Web. 5 Mar. 2013.

    Read More

  • What Are The Strengths And Weaknesses Of Mcdonalds

    1132 Words  | 3 Pages

    A company has its obligations to its buyers, its suppliers, its employees, its shareholders as well as the local community and society in general. This report is on McDonalds which is a food and beverage industry to examine the ethical claims based on ethical theories.

    Read More

  • Mcdonalds Case Study

    887 Words  | 2 Pages

    At the start of 2015 McDonald’s stated they wanted to increase their net profit between 5% - 7% over 2016 calendar year. The Gross Profit ratio from 2014 - 15 did not fluctuate from 66%, following this was the small increase in net profit by 1%. McDonald 's had fallen far from their overall goal of a 5% -7% increase. Yum Brands is now achieving higher net margin at its company stores than McDonald’s with their revenue skyrocketing in from 41,546,000,000 in 2014 and 42,692,000,000 in 2015 well ahead of McDonald’s.

    Read More

  • Mcdonald Case Study

    1587 Words  | 4 Pages

    How should McDonald’s respond when ads promoting healthy lifestyles featuring Ronald McDonald are equated with Joe Camel and cigarette ads? Should McDonald’s eliminate Ronald McDonald in its ads?

    Read More

  • Factors To Consider When Going Global

    1447 Words  | 3 Pages

    As globalization increases, a global strategic perspective will be as important for big companies as for those of medium size. The fast flow of information around the world has caused people to be more conscious of the tastes, preferences, and life styles of the citizens in other countries. By means of this flow of information, we are all getting to be - at different speeds and speaking from an economic perspective – global citizens. Nowadays more and more economies have opened their borders to deal and to invest abroad. Specific elements of a strategy, such as market coverage or production specifications can become global. But strategies that are global in all of its aspects are few. To successfully turn a global vision into reality, a company must carefully outline what means for its particular business to go global. This depends on the industry, product, or service, and the extension at which total success requires an internal condition in different parts of the world. So, it is important to recognize that globalization is different for every company or industry. Globalization forces a company to rethink its strategic attempt, global architecture, central competitions, and their complete common product and service mixture. The results can cause dramatic changes in the way the company does business, with who, why and how. So there are five factors that every company needs to be aware of when going global, these are dimensions with the goal of developing and to maintaining a global competitive advantage. In essence, these decisions determine a focus on continuous strategy. These factors are market participation, product/services, intensity and focus of the company's activities, government's role in the country to export, and coordination in the decision making of the market.

    Read More

  • competitive priorities

    986 Words  | 2 Pages

    In the previous part of our work we were talking about Porter’s value chain of McDonald’s fast-food restaurant. It is known, that before making a statement about competitive priorities, the company should know the objectives of the operation. Is it customer oriented? Does it cover shareholders’ and suppliers’ interests? However, now we consider that McDonald’s has taken into account all of the interests of business environment.

    Read More

  • Operations Management: McDonald's Competitive Advantage

    3031 Words  | 7 Pages

    Vignali, C. (2001). McDonald’s: “think global, act local”--the marketing mix. British Food Journal, 103(2), pp.97--111.

    Read More

  • McDonald's: Providing Value to Customers

    1443 Words  | 3 Pages

    The following essay illustrates how value is provided to customers within the organization. By utilizing stakeholders, organizational policies, and specific strategies, McDonald’s works towards constantly innovating its service and product.

    Read More

  • International Marketing Essay

    963 Words  | 2 Pages

    International Marketing, at its simplest level, involves the firm making one or more marketing mix decisions across national boundaries (Jobber, 2010). At its most complex level, it involves the firm establishing manufacturing facilities overseas and coordinating marketing strategies across the globe (Jobber, 2010). There are various reasons for going global, some of which are: to find opportunities beyond saturated domestic markets; to seek expansion beyond small, low growth domestic markets; to meet customers’ expectations; to respond to the competitive forces for example the desire to attack an overseas competitor; to act on cost factor for example to gain economies of scale in order to achieve a balanced growth portfolio. The methods of market entry that could be used are indirect exporting (for example, using domestic –based export agents), direct exporting (for example, foreign –based distributors), licensing, joint venture and direct investment. I found this par...

    Read More

More about Macro Environment Mcdonald's

Open Document