Management Issue
QUESTION 2
Choose a Multinational Company (MNC) that operates in Malaysia and answer the following questions:
A. Explain why the company you selected is categorized as a MNC.
The word ‘multi’ means two or more and the word ‘national’ defined as country or nation. Thus, by referring to the words-by-words definition above, Multinational Company can be described as a company that carry their operations in two or more countries. There are many Multinational Company that operating in Malaysia. One of the most famous companies is McDonald. McDonald is a worldwide fast food company that practice franchising approach to maintain its operations in various countries.
McDonald is known to be a Multinational Company because it is an American’s company which having its parent headquarters in Oak Brook, United State of America but also established a few headquarters in other countries such as Singapore, India, Malaysia, Canada and many more. In Malaysia, McDonald are operated by many local franchisees that operating almost in every states.
EXTERNAL ENVIRONMENTAL FACTORS
External environment factors that can manipulate the way an organization is managed.
1) SOSIOCULTURAL
There are many external environmental factors that can affect McDonald’s operation. One of the most eligible factors is sosiocultural. This factor concerned with societal and cultural factors which include the religion. Since McDonald is doing its operations worldwide, the business strategy should be adapted according to the local preferences. For example, in a Muslim country such as Malaysia, McDonald should obey the need of the Muslim’s customer to provide ‘halal’ food. The method of food preparation need to be changed to using only slaughtered beef to ensure it is can be consumed by the Muslims. Another example is McDonald in India which does not sell beef-source food because of the practice of Indians’ culture who regards cow as sacred animal and should not be eaten. Instead
Choose a Multinational Company (MNC) that operates in Malaysia and answer the following questions:
A. Explain why the company you selected is categorized as a MNC.
The word ‘multi’ means two or more and the word ‘national’ defined as country or nation. Thus, by referring to the words-by-words definition above, Multinational Company can be described as a company that carry their operations in two or more countries. There are many Multinational Company that operating in Malaysia. One of the most famous companies is McDonald. McDonald is a worldwide fast food company that practice franchising approach to maintain its operations in various countries.
McDonald is known to be a Multinational Company because it is an American’s company which having its parent headquarters in Oak Brook, United State of America but also established a few headquarters in other countries such as Singapore, India, Malaysia, Canada and many more. In Malaysia, McDonald are operated by many local franchisees that operating almost in every states.
EXTERNAL ENVIRONMENTAL FACTORS
External environment factors that can manipulate the way an organization is managed.
1) SOSIOCULTURAL
There are many external environmental factors that can affect McDonald’s operation. One of the most eligible factors is sosiocultural. This factor concerned with societal and cultural factors which include the religion. Since McDonald is doing its operations worldwide, the business strategy should be adapted according to the local preferences. For example, in a Muslim country such as Malaysia, McDonald should obey the need of the Muslim’s customer to provide ‘halal’ food. The method of food preparation need to be changed to using only slaughtered beef to ensure it is can be consumed by the Muslims. Another example is McDonald in India which does not sell beef-source food because of the practice of Indians’ culture who regards cow as sacred animal and should not be eaten. Instead