MacDonald's is a multinational company that embraces more than 30,000 fast-food franchises under the brand name, in over 120 countries. It was founded in the United States of America after the crisis of 1929. In the 50s, Ray Kroc took over the company and began to develop it nationally. The corporation initiated global expansion in the 70s, and the brand spread to all the main Western countries. Nowadays, McDonald's is the most well known brand over the world (even more than Coca Cola), according to the Financial Times (1996).
This firm is a good example of the success of globalization, and in spite of a few cyclical crises, its expansion continues. The international nature of McDonald's is obvious. More than half its turnover is realized abroad and there are four times more restaurants that open in foreign countries than in USA each year.
The McDonald's brand took advantage of the globalization of American culture, of which it became one of the main symbols. Its performance added to its success. The standard model of this company (the American way) is easily exportable and implantable everywhere, in spite of cultural differences.
Nevertheless, it would be illusive to think that the McDonald's model could be absolutely universal. Its development in regions far from the American culture compels the firm to take into consideration some cultural specificity.
[...] The process consists of seven steps: - Interview with a franchise consultant - Interview with the regional manager and the franchise director - Five-day internship in a franchised restaurant - Interview with the network and process manager - Interview with the network and information financial director, and the chief executive officer - 9 to 12 month training in a franchised restaurant - At the same time, attending 5 lectures at the International Training Centers in Paris and Chicago. This process guarantees a homogeneous management in all the restaurants. It is the most reliable way of having a homogeneous product and service offer all over the world. McDonald's applies a neo-Taylor mode in the organization of work. Each restaurant manager needs to apply an established procedure in product fabrication and selling. Standardization is the main word in the kitchen space, at the checkout and in the dining room. [...]
[...] Their management is not restricted only to the enforcement of figures and rules. Some important countries can make their own decisions. For example, in the course of the crisis generated by the mad cow disease, the French subsidiary of McDonald's was self-powered in order to manage the image of McDonald's. The French subsidiary of McDonald's had to change the regular supplier network in order to build perfect traceability for its meat. Part I Conclusion: a model adapted to local cultures The McDonald's organization can be summarized in a few characteristics: extreme standardization of products and processes deep decentralization of management (franchising) discipline throughout the production chain, with a permanent feedback on the real situations (place of information in the value chain) standardization and adaptation of cultural specificities The management commission to each restaurant is separately adapted in a certain way, to the national cultures. [...]
[...] In Latin countries, working in this way is not valuable, because it is just a way to earn money. Latin employees search for self- enhancing employment. For them, working must be a way to become a better person, and to enjoy at the workplace. This company adopts an individualistic management mode. Each employee needs to increase his efforts at the workplace in order to become the “employee of the month” and gain a In collectivistic cultures (in Asia, for example), an employee can be frowned upon by the other [...]
[...] He is thus able to adapt the offer and the mode of management of the team. However, nothing is done without the approval of the McDonald's headquarters. Each proposition must be validated before being applied. Once it has been validated, all the restaurants in the same area must implement the same decisions in order to maintain a standardized offer. This adaptation cannot compromise the transparency of the system, the brand image, the different offers in the same area, etc. Thus only the American parent company makes decisions on each evolution. [...]
[...] In this way, even if the communication is adapted, it serves the brand globally, such as the global slogan “I'm lovin' III- Discordance between the different outlets of McDonald's and the impact of cultural differences As said previously, McDonald's needs to adapt its products, communication and management to the culture of foreign countries in order to attain a well-being in its establishment. However, if McDonald's were to adapt too much, by renouncing its food and process standards, it could lose the identity and uniformity of the brand, which are the basis of its global success. [...]
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