“McDonald’s corporation is the world’s largest chain of fast-food restaurants that serves more than 47 million customers on a daily basis.” The company has branches all over the world. It operates within 119 countries and territories; its products are popular in the market. The corporation operates more than 31,000 restaurants all over the world and has more than 1.5 million employees. Because of the wide area that the company serves, it has developed means to always capture different customers all over the world through capitalization on growing consumer interests in health and wellness (McDonald’s publication, 2007).
Globalization refers to the “increasing interconnectedness of people and places through the converging process of economic, political and cultural change.” These are major factors that contribute a lot to the increased rates of globalization; for instance, technological changes and advancements play a greater role in enhancing globalization and its effects in the global society. Globalization has both positive as well as negative impacts on society and all the activities carried out in the general society (Tomlinson, 1999).
Globalization has affected almost all areas of society in every nation and country globally. The effects range from economic to social to cultural lifestyle, and since these three make the essential factors in the society, it means that every part of people’s life is highly affected by globalization. The reason is that globalization involves the widespread exchange of goods, services and ideas that has resulted in the strong influence of the changes that take place in the general society (Tomlinson, 1999).
Through globalization, culture has been highly influenced; even though the cultural influence in globalization seems to be of slight significance to most policymakers, its power has great consequences to the nations that are involved as well as the people. Since food is very important in society, it defines the kind of culture that is practised within a certain region. Because the corporation operates in more than a hundred countries that have different cultural backgrounds, it means that there are different kinds of meals that are provided to meet the demands of the customers within that particular area (Tomlinson, 1999).
Food is said to be the oldest global carrier of culture. Hence it means that since the corporation is involved in the provision of fast foods and its operations all over the world are faced with challenges as a result of culture. Any changes in foods that are prepared, the way they are served and consumed in most cases diminishes the traditional beliefs of the people. Due to globalization, some of the traditional foods that people held to are continuing to lose value currently. This is because people are being introduced to different kinds of foods hence losing the original taste of traditional foods (Pillai, 2008).
Globalization has affected the corporation since there are changes that keep taking place in the society such that some of the foods that were prepared to fit certain cultural values but today they don’t. These values are changing, and because of this, the kinds of foods they prepare to keep on changing hence affecting the operations of the corporation in one way or another. This is because there are certain changes that take place in the preparations of the foods that may have a negative impact on the corporation, like increased costs of changing the meals. Though globalization has positive impacts, there are also other negative effects faced by the corporation (Pillai, 2008).
Globalization has affected culture negatively because it is the main factor in society. The corporation has branches all over the world, and in each country, there are traditional foods that are prepared in a particular country. Because of the changes of globalization that have resulted in changes in culture and the kind of foods that are consumed, the corporation has experienced certain challenges trying to change the foods they were preparing to accommodate the changing needs due to globalization (Pillai, 2008).
McDonald’s is spread all over the world as a result of globalization; its spread has brought about one of the influential changes with the introduction of fast-food restaurants in foreign countries. Due to the introduction of restaurants in many countries, transformations have taken place that may be perceived as beneficial or corrupting to the culture. Before McDonald’s was introduced in overseas countries, the issue of fast foods was unknown to many since it was the first country that tried to export America’s love for fast foods and changes in eating habits for most people (McDonald’s publication, 2007).
McDonald, just like any other business enterprise, has faced the different effects of globalization in its operations. The reason is that globalization though it has impacts on society, there are certain areas that are highly affected by globalization, like the business sector. There are various controversies that the corporation has faced as a result of rapid globalization that has affected the American fast food industry. The corporation has received criticisms for its menu, expansion and its business practices (McDonald’s publication, 2007).
Some of the instances of critics as a result of globalization experienced by the corporation include the 1999 issue whereby a “French anti-globalization activist Jose Bove vandalized a half-built McDonald’s to protest against the introduction of fast food in the region.” These critics of the corporation had negative impacts on the operations of the corporation since it affected and reduced the number of customers to the corporation. In 2001 the corporation also received other critics that included “allegations that the corporation uses its political influence to increase its profits at the expense of people’s health and social conditions of its workers” (Mark, 2008).
The corporation has received great pressure from activists and other organizations regarding the operations of the corporation because of the effect of globalization that has brought people together and has continued to increase concerns in society. These concerns are the ones that have resulted in increased pressure on the corporation to follow certain factors that seem correct globally (Mark, 2008).
Since globalization has affected all sectors in society, environmental concerns have been raised about the corporation because of the negative impacts of globalization on the environment that include pollution of air to water and the environment generally. The corporation announced that because of environmental concerns, it has been using a biomass trial that cuts waste and carbon footprint by half in different areas. This showed that the corporation participated in global issues like many other corporations globally (Bramhall, 2007).
There are certain instances that have been reported recently that have affected the corporation as a result of globalization. For instance, in the case of bombings, “hours after united states started its bombings in Afghanistan, there were angry crowds that vandalized McDonald’s outlets in Islamabad and Karachi, demonstrators burned an American flag outside the corporation restaurant.” The corporation has faced great challenges as a result of globalization; this is because the bombings affected not only the corporation’s operations but also the customers who were associated with the corporation. Since many did not understand the reason but all these were reactions by people against the U.S and the corporation (Bramhall, 2007).
McDonald’s is a symbol of American entrepreneurship and capitalization in the world; because of this, the company does not only face challenges but also there are global benefits enjoyed by the corporation as a result of association with the United States. This is because many of the countries have had trust with the United States, and because of the high rate of globalization, many people trust the corporation; hence it gets global benefits from its association with the United States. For instance, it received a warm welcome in many of the countries it has invested hence this boosting its growth in the different countries it operates in (Bramhall, 2007).
On the other hand, though the corporation has benefited greatly from its association with the United States, this has lately become more of a vice to the corporation than a benefit. This is because of the United States foreign policy; the policy around the globe is being met with resistance from all areas that include the enemies as well as allies. This becomes a challenge to the corporation since it is associated with the U.S and this, in one way or another, has negative impacts in the different countries that are against the policy. Branches of corporations in these countries are not secure in any way, and at the same time, they are losing business. The main challenge to the corporation is how it is going to react to the new challenges of globalization in the world of growing dislike of anything American (Bramhall, 2007).
The corporation has gained global success in the many countries it operates in because of its ability to adapt to local cultures and resources. This is because in the different countries it operates, there are different cultures that exist that it has adapted to. It is because of this that the corporation has managed to succeed in different countries that have different cultural backgrounds (World Public Opinion Organization, 2008).
Globalization is associated with the exploitation of labour; this has been one of the accusations that have been made against the corporation that exploits labour. This was based on the kind of slogans they had developed. For instance, “not bad for McJob” was one of the slogans that were used by the corporation. This was translated otherwise by people, and it was assumed to mean low paid jobs. This brought about challenges since the corporation was assumed to give its workers very low salaries (Ahmed, 2000).
Globalization has also increased the cases of terrorists in the global market; these cases have negative impacts on business operations. The operations of the corporation have suffered as a result of increased cases of terrorists in society. For instance, the cases that were reported in the United States affected the business operations of the corporation negatively because customers were reduced, and other operations were affected negatively. Also, since the corporation is associated with the United States, it has also been targeted by the terrorists who have enmity with the United States hence fear in its operations in different countries it operates (Ahmed, 2000).
The high growth of fast food chains in society has been associated with the increased rates of globalization that has spread all over the globe with high impacts on the developing countries. Due to the increased number of McDonald’s outlets all over the world, many people have been subjected to consuming more junk food from the outlets. The foods provided by these outlets are said to have adverse effects on the consumer’s health. This is associated with a high rate of globalization and the introduction of non-traditional foods in society that have more adverse effects on health. (World Public Opinion Organization, 2008).
Globalization has brought people together, and people feel as if they are in a global village where they can reach each other very fast. This has positive impacts on McDonald’s Corporation; this is because it is through this that it has been possible to penetrate different countries around the globe. This is because people are highly connected and interact easily hence opening opportunities for the corporation to penetrate and open branches in different countries around the globe easily. Through globalization, it has been very easy to be accepted in different countries and cultural backgrounds hence globalization being of importance to the success of corporations in different countries where it has penetrated (Tomlinson, 1999).
Globalization of governance is one of the characteristics of globalization; because of globalization, the issues of governance of states and governments are monitored globally. There are similarities in the mode of governance adopted by different states and countries worldwide; this means that it is easier to tackle issues of governance in a given state since they are all similar. In case there is any governance problem in a given state or country, it is not an issue of that country. It involves other countries and governments. This is a benefit to the corporation since it has branches in many countries around the globe, and when the governance issue is monitored globally, it means that the corporation has no much fear about its operations in different countries since governance is monitored globally (Tomlinson, 1999).
Globalization has also brought people and countries together; this is because countries have come together and have formed unions and supporting blocks that are aimed at helping each other in trade and other issues in society. Unions like European Union and COMESA have brought countries and nations together; there are set guidelines that guide people in trade between the countries. This has promoted the operations of the corporation greatly since through this it is possible to enter in different countries. The corporation has been able to penetrate different countries as a result of globalization hence playing an important role in the success of the corporation in different countries (Raghavan, 1998).
Technology has contributed a lot towards globalization; this is because it is through this that many of the global activities have been possible. It is through technology that information in the society flows very fast as well as money transfer, products are moved from one country to the other, people travel comfortably and fast, and communication is fast. High technology that is realized and spread all over the globe has helped the corporation to achieve its goals and to improve its operations in different parts of the world (Raghavan, 1998).
This is because advanced technology plays a great role in the operations of the corporation; if it were not for globalization, some of the branches of the corporation that are located in less developed countries would not work properly. Globalization has resulted in the utilization of advanced technology in different parts of the country that has benefited the corporation in its operations. Technological developments of a country in which the corporation has set up its operations is an advantage to the corporation since it can utilize the technology easily to meet the changing needs in the market (McMichael, 2000).
The other factors that have played a major role in globalization include trade liberalization and financial market deregulation. These are major contributors to globalization, and they are all because of technological changes. Globalization has made the whole world to be like a village since people have come together globally in terms of economics, culture and politics. Trade liberalizations and market deregulations have been an advantage to the corporation in different countries where the corporation has set its operations. This is because the corporation gets a good atmosphere to carry out its operations without much destruction from the country (Tomlinson, 1999).
Through globalization, the economy has been highly improved in many nations and countries. This is because the well-developed countries help the less developed countries to gain economic potential in society. For any business organization, when economic conditions are good, the operations of the business are usually very good. The corporation has benefited through globalization since in the countries where the corporation has set up its branches, and the economic conditions are favourable, the corporation gains a lot sine the operations are usually very good. This is the joy of every business person and organization in society (Asgary & Walle, 2002).
Through globalization, distant countries are linked together through communication, commerce and travel; these are the basics for globalization since they bring different people together politically, economically and culturally. Globalization is termed as the most fundamental reorganization of the world’s socioeconomic structure since the time of the industrial revolution. This is because it is through globalization that improvements are made in social and economical life; we learn a lot from each other through globalization hence adopting other better ways of social life (World Public Opinion Organization, 2008).
The linking of countries together through globalization has contributed a lot towards the growth of the corporation and penetration in over a hundred countries in the globe. If it were not for globalization, it would be a challenge for the corporation to penetrate these countries, but it has created a way for its growth and penetration in many countries around the globe (Asgary & Walle, 2002).
Because of globalization, there has been a high and free exchange of information concerning different factors in the market. Globalization has enabled the exchange and transfer of cultural practices from one country to the other. There are certain cultural practices transferred from people in one country to the other hence resulting in the interconnection between different people in the world. The more globalization continues to take roots in society, the more it brings in both positive as well as negative impacts (Tomlinson, 1999).
McDonald Corporation, just like any other corporation, has experienced both benefits and challenges of globalization in its operations. The challenges have been severe for the corporation, but it has continued to press on despite the great challenges that it has faced. On the other hand, the growth and success of the corporation can be associated with globalization since it is a sign of globalization since it has penetrated different countries and brought about certain changes. In conclusion, the corporation has in one way or another benefited fully from globalization and on the other suffered highly as a result of globalization.
List of references
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- World Public Opinion Organization, 2008, Globalization, Web.