McDonald’s Corporation is a fast food brand not only in the American market but also in other nations like India, Canada, Mauritius, among others. The organization thrives because of its strategic management and competitiveness. In this paper I will examine how changes in globalization and technology have impacted McDonald Corporation, the application of industrial organization model and resource based model in McDonald in order to earn above average returns, the contribution of the organization vision and mission statements to its success and how stakeholders influence the success of McDonald corporation.
Globalization
Globalization allows businesses to have operations outside their home country. McDonalds is a global company and therefore it has benefited as well as suffered because of the advantages and challenges that comes with globalization. On the better part is that McDonalds has been able to open several outlets across the globe and as a result its revenue has been growing steadily. The Indian market though has a lot of challenges due to government policies that seeks to protect the local business has been earning the McDonalds the highest income internationally (Mujtaba B, 2007).
The success of McDonald in the global market can be attributed to its rigorous research conducted in areas it wants to venture that takes into account the social, cultural, political, technological and economic facets of the community around. In India, for instance, the corporation had to come up with a burger, Maharaja Mac instead of Big Mac, made with chicken or lamb. This is because beef and pork is not part of the Indian menu due to religious beliefs. Other aspects that McDonalds has employed be successful in global market includes; employing the locals even in management positions, avoiding political conflicts with local administrations and making donations to the local organizations that improve community wellness. For example, the corporation donated food and masks to first responders in the wake of covid19 pandemic (McDonald's, 2020).
The major negative impact of globalization on McDonalds has been customer data breach. The hackers of late accessed the South Korea and Taiwan client’s information, while in America they only accessed the employee’s data. This can hit the corporation in a bad way as clients may shy away buying the burgers due to data privacy concerns (Haddon H, 2021). Though, the company claimed only a few files of the corporation especially of the clients were accessed, it may be the hackers were able to collect all the information on the organization information systems.
Technology
The Covid-19 pandemic disrupted businesses in several ways and McDonalds were not an option. There were lockdowns and social distancing in all nations. This made the businesses to utilize technologies in place to serve and remain in contact with customers. The McDonalds used its MCD app, McDonalds Drive Thru and social platforms to engage with clients. The app enabled clients to place an order and pay, and the burgers were delivered at their locations. The McDonalds Drive Thru provides contactless buying and paying of orders. In the midst of the Covid-19 pandemic the digital sales contributed 20 percent of the total sales in the top six markets ( McDonald's Corporation , 2021).
Industrial organization model
This refers to what the business can do in relation to what other businesses in the same industry are doing. This includes understanding the competitors and identifying gaps that can be used to earn above average returns. The external environment need to challenge the business to come up with areas that it can remain competitive and generate more profits. For example, the political environment in India made the McDonald management to decide to partner with the locals in order to gain acceptance both by the locals and the government. This has made the corporation to reap more than it is expected (The Economic Times, 2020).
Resource based model
McDonalds possess a set of attributes that gives the corporation a competitive advantage in the fast food market. One, the organizational culture of McDonalds is not uniform across its markets. The McDonalds mantra, “Think Local, Act Global” is a valuable resource that makes the organization to earn above average returns. The organization culture for instance in the Indian market is determined by the local Indian culture. The majority of the menu served has spices to satisfy the tastes and preferences of the local people (Mujtaba B, 2007). Two, McDonalds does not put a given class of people aside, the corporation has burger for every person. Lastly, the corporation engages the locals in its processes. For example, the employees and suppliers are local people.
Vision
The vision of McDonald is to drive profit through serving more clients with delicious foods in the world. This means the customer is at the core of the corporation. Also, the corporation has a global mindset and thus it seeks to have footing in every continent in order to increase its market size and source of revenue ( McDonald's Corporation , 2021).
Mission
The McDonald mission is “to create a feel good moment for everyone.” This implies that the organization does not ignore clients but it provides what the client wants and can afford ( McDonald's Corporation , 2021). This makes the clients to keep coming back and as a result the corporation earns huge returns.
Stakeholders
The main stakeholders of McDonalds are customers, employees and suppliers, but the organization engages other people who have interest with communities of places they have operations. The employees of the corporation play a great role in the success of the business. McDonalds engages local people in order to gain acceptance of the local community. They also provide employees with opportunity to learn in order to harness their skills. The clients are consumers of the burgers and other products served at McDonalds outlets. The corporation ensures the clients gets value of their money by providing fresh and quality foods and drinks. The suppliers are majorly local people and they provide steady supply of what is required ( McDonald's Corporation , 2021).
Globalization
Globalization allows businesses to have operations outside their home country. McDonalds is a global company and therefore it has benefited as well as suffered because of the advantages and challenges that comes with globalization. On the better part is that McDonalds has been able to open several outlets across the globe and as a result its revenue has been growing steadily. The Indian market though has a lot of challenges due to government policies that seeks to protect the local business has been earning the McDonalds the highest income internationally (Mujtaba B, 2007).
The success of McDonald in the global market can be attributed to its rigorous research conducted in areas it wants to venture that takes into account the social, cultural, political, technological and economic facets of the community around. In India, for instance, the corporation had to come up with a burger, Maharaja Mac instead of Big Mac, made with chicken or lamb. This is because beef and pork is not part of the Indian menu due to religious beliefs. Other aspects that McDonalds has employed be successful in global market includes; employing the locals even in management positions, avoiding political conflicts with local administrations and making donations to the local organizations that improve community wellness. For example, the corporation donated food and masks to first responders in the wake of covid19 pandemic (McDonald's, 2020).
The major negative impact of globalization on McDonalds has been customer data breach. The hackers of late accessed the South Korea and Taiwan client’s information, while in America they only accessed the employee’s data. This can hit the corporation in a bad way as clients may shy away buying the burgers due to data privacy concerns (Haddon H, 2021). Though, the company claimed only a few files of the corporation especially of the clients were accessed, it may be the hackers were able to collect all the information on the organization information systems.
Technology
The Covid-19 pandemic disrupted businesses in several ways and McDonalds were not an option. There were lockdowns and social distancing in all nations. This made the businesses to utilize technologies in place to serve and remain in contact with customers. The McDonalds used its MCD app, McDonalds Drive Thru and social platforms to engage with clients. The app enabled clients to place an order and pay, and the burgers were delivered at their locations. The McDonalds Drive Thru provides contactless buying and paying of orders. In the midst of the Covid-19 pandemic the digital sales contributed 20 percent of the total sales in the top six markets ( McDonald's Corporation , 2021).
Industrial organization model
This refers to what the business can do in relation to what other businesses in the same industry are doing. This includes understanding the competitors and identifying gaps that can be used to earn above average returns. The external environment need to challenge the business to come up with areas that it can remain competitive and generate more profits. For example, the political environment in India made the McDonald management to decide to partner with the locals in order to gain acceptance both by the locals and the government. This has made the corporation to reap more than it is expected (The Economic Times, 2020).
Resource based model
McDonalds possess a set of attributes that gives the corporation a competitive advantage in the fast food market. One, the organizational culture of McDonalds is not uniform across its markets. The McDonalds mantra, “Think Local, Act Global” is a valuable resource that makes the organization to earn above average returns. The organization culture for instance in the Indian market is determined by the local Indian culture. The majority of the menu served has spices to satisfy the tastes and preferences of the local people (Mujtaba B, 2007). Two, McDonalds does not put a given class of people aside, the corporation has burger for every person. Lastly, the corporation engages the locals in its processes. For example, the employees and suppliers are local people.
Vision
The vision of McDonald is to drive profit through serving more clients with delicious foods in the world. This means the customer is at the core of the corporation. Also, the corporation has a global mindset and thus it seeks to have footing in every continent in order to increase its market size and source of revenue ( McDonald's Corporation , 2021).
Mission
The McDonald mission is “to create a feel good moment for everyone.” This implies that the organization does not ignore clients but it provides what the client wants and can afford ( McDonald's Corporation , 2021). This makes the clients to keep coming back and as a result the corporation earns huge returns.
Stakeholders
The main stakeholders of McDonalds are customers, employees and suppliers, but the organization engages other people who have interest with communities of places they have operations. The employees of the corporation play a great role in the success of the business. McDonalds engages local people in order to gain acceptance of the local community. They also provide employees with opportunity to learn in order to harness their skills. The clients are consumers of the burgers and other products served at McDonalds outlets. The corporation ensures the clients gets value of their money by providing fresh and quality foods and drinks. The suppliers are majorly local people and they provide steady supply of what is required ( McDonald's Corporation , 2021).
