McDonalds International Business

McDonaldsInternational Business

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McDonaldsInternational Business

Beforeany organization decides to embark on the decision of expanding itsbusiness globally, it must consider some very important factors. Someof these factors can be cultural factors, political factors, legalfactors, technology factors, environment factors as well as economicfactors. McDonald’s is well thought of as the most prosperous aswell as biggest cafeteria chain globally. McDonald’s has more than800 of its outlets in Asia today. All in all, this has not been suchan easy task. The company has had some difficulties and challenges inexpanding its business globally.

Amongthe difficulties that McDonald has faced in globalization, thebiggest challenge is due to cultural or sociological factors. Inorder to compete in the effectively, an organization faces more thanfive exterior factors[CITATION Nic10 l 1033 ].Culturalor sociological factor is one of these factors. There are othercountries that most of their population is comprised of vegetarians.For a country such as India, more than 80% of the population does noteat beef. This is a big challenge to McDonald’s expansion plans inIndia since its food chain is beef-based (Kannan, 2006). When it cameto legal matters, no single permit laws existed in China. This was agreat challenge to MacDonald in operating the business in Asia. Thereis as well other negative factor of globalization that McDonald hashad to deal with.These are the economic, political and legal factors,

However,there are the steps that McDonald can take and policies that can beput in place to help ensure that the company’s expansion issuccessful. McDonald’s recognized that they might face the problemof most people not eating beef as well as some of them beingvegetarians, it resolved to adjust its menu so as it can suit thelocal needs of the Indian population. Its menu in India was just formost Indian foods that can be easily accessed locally. This hashelped the company to increase its revenue in India by more than 50%for the last seven years (Kannan, 2006). McDonald has been able toovercome the cultural problem by adopting the Indian tradition.

McDonald’shas had to face very stiff competition from other fast foodrestaurants. The company had to derive a way in which it will makeits products more attractive to more customers. To achieve this,McDonald has had various promotions so as to help it keep itscustomers as well as attract new ones. For instance, in Malaysia,this company offers a lunch package known as the McValue Lunchpackage [ CITATION McD0a l 1033 ].This package offers the top ten most favorite menus among clientswith a cheaper price from 12pm to 3pmeach day. The range of price is between RM 5.95 to RM 8.95 for everyset [ CITATION McD0a l 1033 ].Due to this promotion, McDonald has attracted many clients as well asmanaged to keep the old customers.

Legalchallenges are always factors that hinder globalization. It ispossible for legal aspects to affect any business operations of anation. One of the legal challenges that this company has had to dealwith is religious law. This is because the company had to operate itsbusiness in Islamic nations such as Malaysia and others. Forinstance, in Malaysia, every cafeteria that operates within thatnation must have a certificate called ‘HALAL’ (Jakim). This helpsto show that all the foods sold do not contain any pork. Thecertificate also shows that the foods are of proper hygiene and safefor consumption[ CITATION hay08 l 1033 ].McDonald has dealt with this challenge in a successful manner.

References

Hayati, J. J. (2008). HALAL Certification. Food for consumption , 11-28.

McDonald`s. (2010a). McValue Lunch Package. Malaysian monthly , 23-32.

Wall, A. C. (2010). External Influences that lead to market competitiveness. Adventure Works Monthly , 33-49.