Critical Analysis of Challenges Facing Global Business

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Assignment 1.

Putra International College
(Troy University)

Masters of Business Administration

International Marketing

Lecturer / Course Coordinator: Dr. Alfred Chei

Student: Sonibare Mumin Adesola

Passport Number: A00966431

Date of Submission: April 25, 2011

Critical Analysis of Challenges Involved in Global Business: A Case Study of McDonald’s

With the advent of new millennium, the business world has come to face more stark reality about the new order of business concerns. More and more businesses have to be done across different borders in the form of globalization. In a wide range of industries, from automobiles to food and clothing, firms face the pressures of global competition at home, as well as, in international markets.

A very simple and concise description of international marketing is: “all activities needed to create, ship, and sell goods and services across national borders.” (Dlabay, L. R. & Scott, J. C., 2006. International Business. 3rd Ed. Thomson South Western, 2006). It is also called global business, international trade, and foreign trade.

Different firms, both large and small, have different challenges to face as partakers in the global business, and varying strategies and methods have to be applied by them. Against the foregoing background, in this paper, attempts are made to analyze various challenges that McDonald’s, a foremost fast food retailer in the world, has faced in the cause of its global business, and related to expected challenges as espoused in the theories of international marketing, while solutions and recommendations are proffered.

Company Background

McDonalds has a hugely rich history spanning about 56 years of existence, and indeed, in April 15, 2005, the company celebrated its 50th anniversary of serving various delicious menu items to a lot of customers all around the globe. These menu items are served in more than 30, 000 local restaurants, and more than 115 countries that the company has its presence. They include Maharaja Mac, the vegetarian burger, and the McAloo Tikki, all to satisfy the Indian tastes; in Germany, it serves beer!; in Canada, it is McLobster roll for customers’ dinners; in France, it serves McHomard, and in Japan, McDonald’s comes with Ebi Fillet- o (shrimp burgers), Koroke Burger, Ebi- Chikki (shrimp nuggets) and Green Tea-flavored milkshake, as well as, Rice burgers it serves in Hong Kong. ( McDonald’s Strange Menu around the World. July 19, 2007. Available at:’s_storage_menu_around_the_world/)

In all the places the company is it serves the menu to suit the local tastes, and all must conform to the four cardinal values stated as: quality, service, convenience and value. The company operates as a global business through franchising, and with this, its presence is felt in all the continents of the world.

However, the wholesome stories of McDonald’s giant stride in international business have also been hit with severe challenges too. These challenges have had impacts on the company’s growth and policies formulations. To mention but a few, “in the late 1970s, McDonald’s was forced to close its restaurants in Iran. In early 1992, after being open a few months, in Taiwan, it shut down its 57 restaurants there due to bomb explosions in or near some of its business locations, and in 2002, it stopped doing business in Bolivia and seven other countries due to poor profits.” (Dlabay, L. R. & Scott, J. C., 2006. International Business. 3rd Ed. Thomson South Western, 2006, pg 7). Analyzing the causes of these problems, along the theoretical line, and seeking solutions to them shall form the contents of the remaining parts of this paper

Concepts of International Marketing on Challenges Faced by McDonald’s

International business, as defined...
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