McDonald's is a multinational company present in 121 countries. The company owns more than 30,000 franchises of fast food restaurants. The company also heads other brands of restaurants, as “Aroma Café,” “Boston Market,” “Chipotle Mexican Grill,” “Donatos Pizza” and “Prêt À Manger.” McDonald's is the leading global food service retailer serving nearly 47 million people. Approximately 70% of McDonald's restaurants worldwide are owned and operated by independent, local businessmen and women. This firm is a good example of globalization success. More than a half of its turnover is realized abroad and there is four times of more restaurants that open in foreign countries than in USA each year. McDonald's brand took advantage of American culture globalization, of which it became a main symbol. The standard model of this company is easily exportable and implantable everywhere in spite of cultural differences.
[...] At the same time lectures at the International Training Centers in Paris and Chicago. This process permits to have the same management in the entire restaurant. It is another way to standardize the company. Moreover, McDonald implicates its franchisees in its business. Every year, the company organizes meetings with all the franchisees in order to discuss about the changes of the market and adaptations needed. Franchising is an American model that relies on the “self made concept. This could be a sort of corporate culture. [...]
[...] About the deal, Indians usually do not express their disagreements openly and directly; doing so would be considered discourteous. The public behavior is very important. Shaking hands is an acceptable way to greet people among urban and westernized Indians. In general, Indian society is conservative about heterosexual physical contact and relationships. Refrain from greeting people with hugs and kisses. With woman, is not accepted in Indian society. Talking to a woman who is walking alone is not advisable. Economic data: Advantages Risk India is the second biggest market Employees' Risk: The salary average in the world. [...]
[...] Hierarchical system is composed of employees and managers that do the same job as the employees. This low power distance can be unbearable for an Indian person, for example, that cares about the power distance: the manager cannot be seen as an equal. This company adopts an individualistic management mode. Each employee has to increase efforts at work 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 employees for being employee of the month”. [...]
[...] This analysis allows us to understand the company action according its international management strategy. Political The company invests a lot in the Ronald McDonald foundation. The company has conflict with the Anti-globalization activist. Economic The fast food market is more and more competitive (burger king, Wendy, KFC, Quick, Kebab). Leader in the fast food market. McDonald franchises are more and more expensive. The company is a worldwide company, present in 121 countries. Social Specific type of hierarchy. McDonald tries to implement action of solidarity such as Ronald McDonald House Charities. [...]
[...] McDonald's international management A. The franchises Usually, a firm sells exclusive rights for a defined area. It implies that the franchisee is independent. The franchisee has only to pay a percentage of the turnover to the franchisor. That is why franchisor interest consists only in obtaining the maximum amount. He does not have to care about brand image, awareness, etc. McDonald's has its own conception of franchises. In 1955, Ray Kroc created McDonald's System, Inc. Nowadays, franchised restaurants represent 80% of McDonald's world network. [...]
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