Global companies on local markets - cultural context
of McDonald’s and its products.
by Malgorzata Pryc
Nr albumu: 281251
In modern times we can observe that more and more companies are achieving a global-wide reach and recognition. We could ask ourselves, what stands behind this success
and what makes such companies different. I personally believe that this is highly related
to the increasing amount of countries that attracts investor by its emerging economies, convenient tax policies and consumers demands for high quality products. However, these companies would not be able to achieve success if not carrying over a very scrutiny market research, ...view middle of the document...
Even though there
are thousands of various culture definitions, most of them have some common or typical elements, which can be described as an essence of culture. Among these elements the most important role play the notion that all of the people learn culture. This means that culture
is passed from generation to generation and that every person learn it by co-living
with different peer groups. Another important aspect is that culture is composed of various elements that are correlated and that interfere with each other. For this particular reason
we could say that culture can be described as
a complex jigsaw puzzle in which all the pieces hang together.
However, it is of great value to remember that culture is a case of each individual member
of society and that it is a case of belonging of each individual to a bigger group as well. These means that culture is shared by individuals as members of society.
While having this in mind, I would like to examine the cultural context of McDonald’s products. According to McDonald’s Annual Report 2011, for December 31, this fast food chain of restaurants can be found in over 119 countries, with a total amount of 33,510 diners. A definite part of it (more than 27 thousands)
were franchised or licensed (including 19,527 franchised to conventional franchisees, 3,929 licensed to developmental licensees and 3,619 licensed
to foreign affiliates (affiliates)-primarily Japan)
and only around six and a half thousand were under the company operation. Moreover,
the company note constant growth and observe constant growth of incomes, which is the most solid proof of marketing strategy reliability. However, we need to realize that in the case
the key to the international success (…) has been the use of franchising.
By franchising to local people, the delivery and interpretations of what might
be seen as US brand culture are automatically translated by the local people
in terms of both product and service.
They successfully managed to combine the aspect of globalisation with internalisation.
By using a term globalisation I understand that the company is implementing marketing strategies that assume promoting standardised products in every part of the world. This include coherent branding, labelling, product characteristic as elements of marketing mix that can be easily adjusted in a global term. As for internalisation, this term refers to product customization in particular countries with respect and reference to culture, societal norms and customers’ expectations. McDonald’s become a master in combining these two different attitudes and it can be aptly explained by the following maxim: think global, act local.
According to Taylor, usage of internalisation and globalisation at the same time is a perfect strategy to gain a competitive advantage. However, before doing so, the company need
to reach the level where
its structure fits in with its...