CROSS CULTURAL MANAGEMENT
Study on McDonald’s Corporation
India & US culture
“Food is the oldest global carrier of culture.”
It is sometimes amazing how different people in other cultures behave. We tend to have a human instinct that 'deep inside' all people are the same - but they are not. Therefore, if we go into another country and make decisions based on how we operate in our own home country - the chances are we'll make some very bad decisions. With rapid globalization the organizations are going increasingly global and cross cultural management is the need of the hour for the organizations to get adapted to global environment. Globalization has affected almost every aspect of life in almost every nation. From economic to social to culture, this widespread exchange of goods, services and ideas have influenced changes around the world. Even though the cultural influence in globalization is of slight significance to policy makers, its power has tremendous consequences to the nations involved and its people. Food is an important element in defining culture. Any changes in the foods that we eat, in its preparation, the way it is served and consumed diminishes the traditional beliefs of the people. One of the most influential changes came with the introduction of fast food restaurants like McDonald’s into foreign countries. Transformations have taken place which could be perceived as beneficial or corrupting to that culture. Before the introduction of McDonald’s overseas, Fast food was almost unknown. McDonalds was the first company to try to export America’s love of fast food and changes in eating habits of other nations. In most communities, in fact, the McDonald’s has conformed to the local culture. The McDonald’s corporation notes that most of its overseas franchises are locally owned, and thus make efforts to buy from local communities. McDonald’s also alters its regional menus to conform to local taste.
There has been a loss of traditional values with the introduction of nontraditional food into the culture of foreign countries. The types of foods are symbolic to particular regions, religions and mores. Differences between India and US politics, economics, social development and ideology became obstacles to international enterprises operating in India. Corporate culture could not be understood or accepted here, especially in the restaurant field, where culture plays a crucial role. Diversity can be found in India’s food as well as its culture, geography and climate. Although a number of religions exist in India, the two cultures that have influenced Indian cooking and food habits are the Hindu and the Muslim tradition. With the introduction of non traditional foods into this society, there are adverse effects on the traditions it tries to uphold. McDonald Corporation
McDonald's Corporation is one of the world's largest chains of hamburger fast food restaurants, serving nearly 47 million customers daily. The McDonald's headquarters complex, McDonald's Plaza, is located in Oak Brook, Illinois. McDonald's restaurants are found in 119 countries and territories around the world. McDonald's operates over 31,000 restaurants worldwide, employing more than 1.5 million people. The company also operates other restaurant brands, such as Piles Café. It is listed in Newyork Stock Exchange (MCD). A McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself. McDonald's Corporation earns revenue as an investor in properties, a franchiser of restaurants, and an operator of restaurants. Approximately 15% of McDonald's restaurants are owned and operated by McDonald's Corporation directly. The remainder is operated by others through a variety of franchise agreements and joint ventures. The McDonald's Corporation's business model is slightly different from that of most other fast-food chains. The corporation's revenues come from the rent,...
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