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Submitted by mdinkens on July 15, 2006
Category: Business
Words: 1196 | Pages: 5
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The Impact of Globalization on Business Enterprises: McDonald’s
“Hours after the United States started its bombing raids in Afghanistan…angry crowds vandalized McDonald’s outlets in Islamabad and Karachi…demonstrators burned an American flag outside a McDonald’s restaurant in the resort town of Makassar and then stormed it. No company faces the issue of globalization more acutely than McDonald’s.” (Barboza, para 1) Often the symbol of American entrepreneurship and capitalism in the world, McDonald’s has enjoyed successes with its association to the United States. However, that same association in recent years has become a vice to this fast-food chain as U.S. foreign policy around the globe is being met with resistance from enemies and allies alike. How will the McDonald’s Corporation adapt to the new challenges of globalization in world of growing resentment of anything American?
Found in 119 countries around the world, McDonald’s has branched out into 30,000 locations serving nearly 50 million customers each day. (McDonald’s, 2006) The global success of this fast-food giant can best be attributed to its ability to adapt to local cultures and resources. Problems of globalization can quickly be turned into opportunities by the company’s continued sensitivity to local cultures. “McDonald’s training programs are delivered in up to 40 languages, with the primary languages being Chinese, English, French, German, Italian, Japanese, Portuguese and Spanish for the top markets.” (Ray, para 3) Because “more than 70% of McDonald’s restaurants around the world are owned and operated by independent local businesspersons,” (McDonald’s, 2006) adherence to cultural values is often a natural occurrence. For example, in Saudi Arabia, single men must eat separately from women and children. In India, there is no beef or pork, but a vegetarian Maharanja Mac, the equivalent of a Big Mac. In Japan, where the “r” sound is rarely pronounced, Ronald McDonald is...
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