McDonald's

Type

Public NYSE: MCD

Traded as

Dow Jones Industrial Average Component

Industry

Restaurants May 15, 1940 in San Bernardino,

Founded

California; McDonald's Corporation, April 15, 1955 in Des Plaines, Illinois Richard and Maurice McDonald

Founder(s)

McDonald's restaurant concept; Ray Kroc, McDonald's Corporation founder.

Headquarters Number of locations Area served

Oak Brook, Illinois, U.S.

32,000+ worldwide[1]

Worldwide James A. Skinner

(Chairman & CEO)

Key people

Products

Fast food

(hamburgers chicken french fries soft drinks coffee milkshakes salads desserts breakfast) Revenue Operating income Net income Total assets Total equity Employees US$ 24.075 billion (2010)[2]

US$ 7.473 billion (2010)[2]

US$ 4.949 billion (2010)[2] US$ 31.975 billion (2010)[2] US$ 14.634 billion (2010)[2] 400,000 (January 2010)[2]

McDonald's, globalization and culture.

McDonalds in Globalization 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. Britannica (2007). Food is the oldest global carrier of culture. (para. 1). 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 McDonalds into foreign countries. Transformations have taken place which could be perceived as beneficial or corrupting to that culture. According to William Gould (1996), before the introduction of McDonalds overseas fast food was almost unknown. McDonalds was the first company to try to export Americas love of fast food and changes in eating habits of other nations. Catherine Schnaubelt (u.d.) in her study, has found that McDonalds has over 1.5 million franchises in the United States and about half of the total franchises are outside the U.S. in over 120 countriesAmidst all the fame and fortune of McDonalds, there are concerns about how the spread of standardization of the franchise is affecting culture, attitudes and the environment. (p.49). The globalization of McDonalds has raised many debates on both sides of the

issue. The pro- globalization belief is that it enhances culture rather than adulterate. Radley Balko (2003), states that In most communities, in fact, the McDonalds has conformed to the local culture not the other way around. The McDonalds corporation notes that most of its overseas franchises are locally owned, and thus make efforts to buy from local communities. McDonalds also alters its regional menus to conform to local taste. (para. 12). There has been a loss of traditional values with the introduction of non traditional food into the culture of foreign countries. The types of foods are symbolic to particular regions, religions and mors. In India, to the Hindu people, the cow is considered to be sacred as part of its religion. According to the AsianInfo.org (2007), Diversity can be found in Indias food as well as its culture, geography and climate.(para. 1). 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. (para. 3). With the introduction of non traditional foods into this society, as with many others, there are adverse effects on the traditions it tries to uphold.
McDonalds is viewed as American and the movement away from traditional foods towards fast food is considered to be Americanization of the diet. This concept has more far reaching effects than is seen on the surface. The Americanization of the food also means that of the culture and a way of thinking which in not acceptable to many nations. Sebastian Mallaby (2007), writes that Hyperpower invites backlash, and McDonalds has not escaped such consequences. In 1999 a French farmer named Jose Bove ransacked a McDonalds and became a hero of the antiglobalization. (para.5). The restaurant stands as a symbol of an unwanted change sweeping across the borders of culture and tradition. The content of the McDonalds diet has long been an issue of contention with nutritionist. In his book Fast Food Nation, Eric Schlosser (2002), states that By eating like Americans people all over the world are beginning to look more like Americans, at least in one respect. The United States has one of the highest obesity rate of any industrialized nation in the world. (p. 240). As people eat more meals outside the home, they consume more calories, less fiber and more fat. (p. 241). The introduction of unhealthy eating habits as a result of the preamble of foreign foods into outside nations significantly affects the traditional culture. The World Health Organization (2002), believe that within the next few years, noncommunicable disease will become the principal cause of morbidity and mortality.The shift towards highly refined foods and towards meat and dairy products containing high levels of saturated fats,.contribute to rises in incidences of obesity and noncommunicable disease. (p.952). Not only has the content of the diet been an issue but also the way in which food is consumed. As the name implies it is fast food There is a movement away from a family oriented dining to individual dining. In a chart featured by Gardenswartz and Rowe (u.d.) shows that while mainstream American culture focuses on eating as a necessity and towards fast food other cultures view dining as a social experience with religion playing an important role in its practice. They value group orientation and conformity to facilitate harmony among families whereas American culture has a preference towards individualism and independence from each other.

Gobalization of fast food culture has also proven desirable to the nations involved and their populations. Mallaby (2007), states that As Americas car culture spread abroad, the hamburger followed. McDonalds has opened restaurants in 119 countries and serves 52 million people daily. (para. 3). The appeal of the American way seems to transcend all boundaries. When

McDonalds opened its first restaurant in Kuwait in 1994, 15,000 customers formed a seven mile line at the drive through. (para. 4). These are just some of the concerns which affect the issue of food culture and globalization. Many more arise as a result of the introduction of fast food restaurants like McDonalds into diverse cultures around the world. Some changes are embraced by the population while others are seen as a threat to the way of life that has been established for centuries. Some are adverse to the idea of globalization as a hold and perceive McDonalds as a representation of this ideal and as a result hold them responsible. The question arises; does the globalization of McDonalds adversely or positively affect the culture of different nations? Even though there has been many changes in the eating habits of the nations influenced by the introduction of McDonald's there has been many positive aspects. With the advancement of technology and communication the world itself seem to be moving at a faster pace. The advent of fast food into foreign cultures allows the opportunity to keep up with this fast pace. Culture is ever changing and thus McDonald's marks another step in the evolution of culture with the changes in has brought about. The menu has given people a new choice over the traditional foods eaten in the past. McDonaldized institution has really spread across continents giving rise to a number of indigenous fast food chains. There is also the case of Asianization where Asian cuisine such as Fried rice is rapidly spreading all over the world. Unemployed youth are taking advantage of the McDonaldized institution to set up fast food businesses on the streets. This can be called fast food-street food. There are good and bad sides to this phenomena therefore we need to find out the bad sides and improve upon them. Some traditional foods may also come with problems especially in terms of health so while we criticise fast food we should also analyze some traditional food at least for their nutritional importance

The Impact Of GlobalizatiOn On Business Enterprises: McDOnald's

The Impact of Globalization on Business Enterprises: McDonald's "Hours after the United States started its bombing raids in Afghanistanangry crowds vandalized McDonald's outlets in Islamabad and Karachidemonstrators 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

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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 known as Donald...

External and Internal Factors Affecting McDonalds - Management Theory Paper

External and Internal Factors Affecting McDonalds - Management Theory Paper The purpose of this paper is to discuss external and internal factors affecting McDonalds management functions. This will be accomplished by explaining how McDonalds deals with each of the external and internal factors. There were three factors that were chosen to outline the success of McDonalds corporation. The first factor is globalization, which is define as closer contact between different parts of the world, with increasing possibilities of personal exchange, mutual understanding and friendship between "world citizens". Diversity, the difference among people and cultures, is the second factor discussed in the paper. The final factor is ethics, which can be defined as a set of principles of right conduct. This paper explains how the McDonald Corporations uses the factors to conduct business around the world. In todays society, corporations and enterprises are expanding their businesses in the global markets. Globalization is necessary for success and survival in the worldwide market; however, global competition is not easy (Bateman & Scott, 2004). By the end of the twentieth century, the list of Fortune 500 companies was no longer only United States corporations due to an increase in international companies joining the list (Global Capitalism, 2005). As a leading food service retailer, McDonalds joins those corporations with restaurants in 119 countries (McDonalds, 2004). Important strategic decisions are a key factor to their success with consideration for both internal and external factors. When considering the foreign market, companies need to consider there are risks. There must be local marketing to appeal to the local consumers and also to build relationships and trust (Bateman & Scott, 2004). Therefore, the strategic planning for marketing has to be effective. McDonalds caters its menu in other countries to the cultures of the regions.

For example, in India, the non-vegetarian menu includes chicken and fish items only (Welcome, n.d.). Beef is not on the menu in India because are considered sacred. Global marketing decisions are no different than those made domestically but the decisions are unique to each country (Sister & Sister, 2005). Furthermore, operating on a global scale allows a companys employees to experience working in different cultural environments. This is a good marketing strategy for recruiting employees. McDonalds has a global core curriculum for its restaurant management (McDonalds, 2004). Paula Doherty, a general manager states, Ive had incredible experience in different countries andculturesas a trainee manager from Poland to Israel to the Philippines and more. Doing the job successfully has given me a real sense of achievement (http://www.mcdonalds.co.uk/?f=y). This business strategy speaks to their commitment to a diverse workforce. McDonalds commitment to diversity is established on the foundational belief that diversity is not just a moral and ethical issue, but also a business issue (McDonalds, 2005). Due to the global expanse of McDonalds business, diversity has become an integral part of the internal company culture. McDonalds has over 30,000 restaurants around the world, which means franchise owner/operators, employees, and customers represent just about every culture, religion or ethnicity on earth. In addition, McDonalds promotes the use of local suppliers and based on their policies of diversity, expects and retains suppliers that have a similar diversity culture. Knowing and understanding the local customs and traditions of the communities where McDonalds has established businesses, integrating people from these communities into the company, and adapting locally to the tastes and cuisines of the community, has made McDonalds the leader in their industry. In the United States alone, McDonalds has won numerous awards and received national recognition for diversity. According to McDonalds website, www.mcdonlads.com, awards include; PUSH-Excel Corporate Partner Award, Corporate Achievement and Image Award, Nullities Corporate Award, Corporate Vision Award, and the Circle of Inclusion Award. These awards and recognitions are not the result of a surface attempt to appease the critics. They are the result of McDonalds embracing and integrating diversity into their company ethos as an asset and an ally. McDonalds realizes that having diversity as an asset greatly enhances the profitability of the company. Diversity is a direct reflection of a companys interpersonal relationships. These relationships, if positive, result in a rewarding venture. Conversely, if the relationships are negative, the companys morale declines and if not addressed, leads to the deterioration of the company. This deterioration directly impacts the companys income and the communitys acceptance of the business. However, McDonalds leadership encourages diversity through their policies and programs. McDonalds proven success with leveraging the advantages of diversity can

be attributed to their core value of ethics. McDonalds success is built on the foundation of personal and professional integrity (www.mcdonalds). From the beginning, McDonalds has based its reputation on trust and dependability, and their commitment to the community made them a household name. Founder Ray Kroc, believed in giving something back to the community in order to make the world a better place. Throughout the 1970s, McDonalds became involved with a lot of charity work. In 1974 established a charity called Ronald McDonald House. The purpose of this program was to provide temporary housing for the families of seriously ill children receiving treatment at nearby hospitals. Since the 70s, more than 10 million families around the world benefited from the comfort provided by Ronald McDonald Houses (www.rhmc). In addition to their community involvement, McDonald's has a long-standing commitment to environmental protection. Restaurants around the world have innovative programs for recycling, resource conservation, and waste reduction. The environmental achievements of this corporation have been recognized by organizations such as the Audubon Society, Conservation International, Keep America Beautiful, the National Recycling Coalition, and the U.S. Environmental Protection Agency (www.mcdonalds). McDonald's is also an equal opportunity employer. As an equal opportunity employer McDonalds ensures that employees and job applicants are selected, trained, and promoted without discrimination to race, gender, sexual orientation, age or disability. The company promotes their employees based on their relevant skill, talents, and performance. In support of this McDonald's promotes and sustains a working environment, which is free from unlawful discrimination, harassment and bullying. Employees are regarded as members of a team where everyone's opinion is valued and respected. The Human Resources department monitors the effectiveness of the discrimination policies at regular intervals and takes corrective action as necessary to ensure that they being complied with (www.mcdonalds). Employees who feel that they have been treated unfairly are encouraged to use the remedies outlined in the Company's handbooks. McDonalds ethical standards, as well as their strategies for globalization and diversity are instrumental to the overall success of the company. The purpose of this paper was to discuss external and internal factors that have affected McDonalds. This was achieved by explaining what the factors are where and how McDonalds dealt with each of the external and internal factors. The factors discussed were globalization, diversity, and ethics. The paper illustrates how globalization is necessary for success and survival of McDonalds in the worldwide market. The paper also shows how diversity integrated people from different communities into the company, and adapted tastes and cuisines of the community. McDonalds showed ethics by being an active leader in the communities. There are many different

values to the dollar around the world, many issues that have occurred in many of those regions/websites, and about 119 countries served by McDonalds that rely on the functions of management to succeed. References Bateman, T.S., & Snell, S.A., (2004). Management: The New Competitive Landscape (6th ed). New York, NY: McGraw-Hill Company. McDonalds, (2005). Retrieved October 9, 2005, from McDonalds website: http://www.mcdonlads.com/corp/values/diversity/supplierdiversity/commitment.html McDonalds USA corporate responsibility report: 2004. (2004). Retrieved October 9, 2005, from http://www.mcdonalds.com/usa/good/report.RowPar.0002.ContentPar.0002.ColumnPar.0001.File. tmp/USA%20Report%20Layout%20(No%20Back%20Cover)%20(12-1-04).pdf Robinson, W. I. (2005). Global capitalism: the new transnationalism and the folly of conventional thinking. Science & Society, 69(3), 316. Retrieved October 10, 2005, from ProQuest database. Sustar, B. & Sustar. R. (2005). Managing marketing standardization in a global context. Journal of American Academy of Business: Cambridge, 7(1), 302. Retrieved October 10, 2005, from ProQuest database. Welcome to McDonalds India. Retrieved October 10, 2005, from http://www.mcdonaldsindia.com/ourfood/nonveg/index.html www.mcdonalds.com, People, 2005 www.mcdonalds.com, Environment, 2005 www.rmhc.com, Ronald McDonald House Charities, 2005

Key Success Factors of McDonald's

With a B.A. in communication and writing and an M.A. in journalism, Althea Thompson's strengths include writing, broadcast and Internet media. She began writing at a very early age, and in 2008, Thompson was a featured writer in Regent University's award-winning Focus Magazine. She was also a successful writer for a prominent news website.
By Althea Thompson, eHow Contributor updated October 31, 2010

Print this article

1.

McDonald's withstands tough economic times.

In 1940, Dick and Mac McDonald opened McDonald's Bar-B-Que Restaurant in San Bernardino, California. Since then, the golden arches have become one of the most recognizable symbols in the world. Millions have been served French fries, hamburgers and sodas at thousands of franchises through out the world. McDonald's has been able to withstand wars, economic downturns and competition by focusing on key success factors.

Customer Range
A key factor in the success of McDonald's is its ability to appeal to a wide range of customers. For example, in June 1976 McDonald's introduced a breakfast menu to capture more customers, according to a case study by business analyst Jim Nelson's. Nelson stated that McDonald's also created the famous Chicken McNuggets in 1980. Happy Meals appeal to children and the restaurant menu offers a wide range of choices for parents. The Big Mac, Angus Deluxe, Quarter Pounder with Cheese and the Big n' Tasty are just some of the 32 sandwiches offered on the McDonald's menu at mcdonalds.com. McDonald's appeals to a wide range of customer preferences.
o

Nutrition
On the organization's website, McDonald's states that part of its success is due to its commitment to the well-being of customers. In 2004, McDonald's established a global advisory council to provide expert guidance on nutrition and well-being. To satisfy healthconscious customers, the fast-food company began to include high-quality choices on the menu. Customers are able to choose from hamburgers or salads as their main entre. Apples may also take the place of French fries in children's Happy Meals. McDonald's also pledged to provide customer-friendly nutrition information on menu items. Customers have access to the caloric and fat content to make better choices. This acknowledgement of customer health has helped keep McDonald's successful.
o

Availability
McDonald's has made convenience a key factor in its success, according to Jim Nelson's study. Restaurant locations are so prevalent in suburban towns and cities that you are never more then a few minutes away by car or by foot. Shopping centers and strip malls generally have a McDonald's included or within walking distance. Some stores have positioned McDonald's restaurants inside for customer availability.
o

Affordability
McDonald's has weathered economic downturns because of the affordability of its menu, according to Bloomberg Business Week. Concepts like the Dollar Menu give customers the option to eat a full meal at a small cost. For breakfast on The Dollar Menu, a customer may have a sausage biscuit, a small premium roast coffee and a hash brown for $3 plus tax. French fries, hamburgers and side salads are offered on this menu through out the day. Because of the fast-food restaurant's ability to appeal to low-income
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and middle class families, the company continues to see profit gain. An October 2010 report from the International Business Times states that, "The world's largest restaurant chain posted 10 percent growth in its third-quarter profit that topped market estimates

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Conclusion
The last half of the twentieth century witnessed the development of many fast food chains. None were as successful as McDonalds at maximizing profit and minimizing cost. The rapid growth of McDonalds from one small store in 1948, to its first restaurant in 1955, to its worldwide dominance and market saturation at the turn of the twenty-first century, is a story of capitalist enterprise, sometimes at its worst and (to its shareholders) sometimes at its best.

The business practices of McDonalds are, to put it kindly, slightly suspect. By keeping employee wages low and refraining from hiring full time workers, the company was able to save money on health care packages and employee benefits. In addition, McDonalds was able to gain ground on its competitors in the 1970s when a depression caused most other fast food chains to halt their growth. McDonalds used its superior resources to continue to grow and expand. Now, the restaurant is perhaps the greatest symbol of contemporary American capitalism. By saturating nearly every market it has entered, McDonalds now envisions itself as a stabilized company, not as interested in entering new markets as they are in exploiting those markets in every way available to them. The company is also more able to respond to consumer demands that, earlier in its existence, would have been impossible. But as one of the most powerful businesses in the world, McDonalds can pretty much do as it pleasesan advantage that has come to characterize the history of the business.

When it comes to the environment, McDonalds irresponsibility toward the effects of their business practices is highly evident. These effects counter their recent efforts at cultivating a "green" image. However, they remain almost hidden behind that glossy green picture of McDonalds. Once uncovered, it is apparent that McDonalds is not such a friendly neighbor to the environment. They pride themselves on leading the industry in environmental protection, when it seems they do more harm than damage. The beef they use to feed America comes from cattle that graze on exrainforest land. The packaging that beef is wrapped in to be given to the consumer is used for mere minutes before being thrown away, many times landing back on the ground, polluting the environment. When two activists had finally had enough and spoke out against the business practices of McDonalds, McDonalds sued. They however would later make clear their intention not to collect any damages they were awarded. This was an effort to move attention away from the negative publicity of the McLibel case, and reclaim the positive image the case brought into question. In each instance, McDonalds claims they are not at faultthe cattle ranchers are to blame for rainforest destruction, the consumer for the litter, and the members of London Greenpeace were spreading lies. This distancing strategy only causes McDonalds self-promoted image of environmental friendliness to take center stage. Thinking of McDonalds as a good citizen and good neighbor, America orders their hamburgers and McDonalds success increases.

And as the success of this giant food chain increases, so

does the size of America's giant waistline. The easily accessible, cheap, and masterfully marketed products that McDonald's sells is food sky-high in fat and cholesterol and essentially void of nutrients. The greasy burgers, salty fries, and soda have contributed to America's evergrowing struggle with obesity. Never far from sight, fast food establishments such as McDonald's have made their eating a kind of necessary and inevitable evil as we rush from home to jobs, school, sports practice, and everything else that crowds our busy lives. Does fast food simply supply a demand created by our break-neck worlds? Or has it actually altered our perception of food, time, and quality? It is near-impossible to imagine an America without these highway rest stops, airport kiosks, and after school treats. Similarly, with the exportation and spread of America, it is becoming increasingly difficult to imagine a world without fast food.