IMPACT OF GLOBALIZATION ON MCDONALDS INDIA
McDonald's Corporation is the world's largest chain of hamburger fast food restaurants serving nearly 70 million people every day, MacDonald’s is now proud to have become one of the world's leading food service retailers in more than 119 countries, with more than 35,000 restaurants including Canada, the Caribbean, Europe, Central and South America, Australia, Japan, Korea, Southeast Asia, even Russia and China. It has the fastest growth rate in the fast-food restaurant industry (About McDonalds, 2014). With its headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. McDonald’s has made a high profile brand image because of its quality food, quick service, cleanliness, everyday value and so on. (McDonalds, 2014) As at the year ended 2013, More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local business men and women. Of the total McDonalds restaurants worldwide:
Over 57% are conventional franchisees
Nearly 24% are licensed to foreign affiliates or developmental licensees 19% are company-operated (About McDonalds, 2014)
In 1948 McDonald’s begins its activities in USA and it experienced the taste of success from the beginning. In 1955 it was introduced as ‘McDonald’s Corporation’ founded by Ray Kroc. In 1967, the company started to extend its business worldwide, now McDonald’s is one of the biggest and reputed global food service retailers in the world. (McDonalds, 2014)
ENVIRONMENTAL FACTORS THAT EFFECT MACDONALDS ACROSS
McDonalds as a global company has to consider the various factors that affect them politically such as laws, agencies and groups and individuals that influence and limits organizations in various societies that they operate. The dimensions being evaluated include the government attitude to foreign markets, the stability and financial policies of a country and government bureaucracy, Trade control and Import restrictions. For the environmental factors, McDonalds is facing problems such as pollutions and too much waste of raw materials issues. Also there are lot of criticize about their waste production, recycling and climate change. McDonald’s annual report for 2013 states that, there is a possibility that perceived effect of change in weather pattern or climate could have a direct impact on the company’s operation (McDonalds Annual Report, 2013) This analysis also shows the importance of social factors in terms of consumer trend, taste and their communities in those regions that McDonalds operates. Ray Kroc said “McDonald’s is proud to be a part of the communities we serve. Through involvement in youth sports, local charities, and events that inspire the world, giving back is an essential part of the way we operate every day, McDonald’s is a people business” (About McDonalds,2014) The legal aspect of the analysis looks at the taxes, registration, staff laws and safety laws, McDonalds as a giant food chain has to be responsible regarding legal issues like this. For example in many of their market including the United States and Europe, they are subject to increase regulations which has increased the cost of doing business and in the developing countries the company is face with the risk associated with new and untested laws and judicial systems” (McDonalds Annual Report, 2013, P. 12) “The economic conditions in both globally and local markets of McDonalds are affected and the current global environment has been characterized by persistently weak economies, high unemployment rates, inflationary pressure and volatility in financial markets. Many major economies, both the advanced and the developing, are still facing ongoing economic issues and theses conditions have pressured”(McDonalds Annual Report, 2013, P. 12). The technological factors is keen...
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