MacDonald’s: an Overview McDonald’s is the World leading fast food restaurant, with outlets in more than 120 countries. It traces its roots to a 1940 restaurant by two brothers who later sold it to a business man who propelled it to a giant chain of hotels (Mattern, 140). The Corporation has had its turn of ups and downs. It has been involved in environmental disputes, cultural segregations and other businesses crises. The paper will examine the McDonald’s corporation and its challenges and victories in dealing with the environment, culture and other businesses. One case involves a protest by Hindu nationalists against the MacDonald’s use of Beef based products.
The company was being accused of disregarding Hindu norms and customs. However, the company’s management worked hard to sustain their trust and confidence. In the same light, MacDonald has vowed to use locally produced ingredients (Watson, 200). Through this, the company has managed to establish itself in very diverse cultures of the world. In comparing McDonald’s China to McDonald’s in Europe, the first striking difference comes from the environmental impacts of the business.
It will be observed that McDonald’s England boasts a biomass technology which has reduced the waste and carbon output by more than half. China as a nation is yet to achieve its goal of capitalizing on Biomass energy. There are some striking similarities between the two nations. The reception in both nations has been overwhelmingly positive. Though McDonald’s in China was first met with resistance from the government, by readjusting itself, the corporation has managed to be a main fast food supplier, second only to KFC. This is mainly attributed to the fact that the company opts to use locally produced ingredients, which not only reduces the costs of importation, but provides an avenue for cultural identification.
This system of using local ingredients has had its repercussions. For instance, in 1997, the United Kingdom was hit by Mad Cow disease (Mattern, 140). The corporation then had to import products from outside the country to sustain its market. In the business realms, Mc Donald has done a lot to establish ties with other businesses, local or international. For example, the management structure entails the involvement of franchisees or affiliates- independent companies or groups of companies who use McDonald’s trademark for a fee.
In this case, the corporation’s major income is earned by revenues and taxes collected from the franchisees and affiliates. MacDonald’s has a very big prospective future. As seen from its previous leadership structures, it is clear that the corporation seeks to establish itself in every nation on earth as a competitive fast food restaurant. The efforts in the previous years to reorganize its leadership structure have born great fruits.
There are challenges which will be face din this. As Larry Light, a former global marketer with the corporation comprehends; the main challenge for the corporation and its affiliates will be conquer geographical differences. To accomplish this, the management needs to establish a system of identifying competent employees or affiliate groups in different nations. They will also have to establish a means of connecting the cultural models seen all over the world. This will imply that a MacDonald burger in China will have its relative in Europe, rather than have specific varieties in different nations (Watson, 200). Conclusively, inasmuch as MacDonald has achieved a lot in its recent past, what lies ahead is far much greater than everything they have achieved before.
The growing global need for fast foods puts forward an added advantage for the corporation. Work Cited Dayal-Gulati, A., Lee, A. Kellogg on China: Strategies for Success. Xian: North Western University Press, 2004. Print, pg 200 Mattern, J. Ray Kroc: McDonalds Restaurants Builder. Minneapolis: ABDO Publisher 2011. Print, pg 140 Watson, J. Golden Arches East: McDonalds in East Asia. Stanford: Stanford University Press, 2006.
Print, pg 200