This essay is all about the management and culture in the case of international companies. McDonalds and KFC are among of the most renowned fast food chain restaurants in the world. Within these two cases, the proponent identifies the idea of internationalisation of business and globalisation…
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Critical discussion of theory
In this section, the proponent discusses different theories and concepts in line with culture and organisational management.
Internationalisation versus globalisation of business
Internationalisation is a matter of expanding boundaries of a certain country that sometimes it includes political invasion or domination, which further implies that internationalisation of business is highly associated with people’s consciousness about nationality (Parker, 2005). It is claimed that the United States in the twentieth century is responsible for such of this.
The internationalization for instance has become a major source for growth and survival of a family business (Kontinen and Ojala, 2010). Internationalisation of business is also associated with the international expansion of an industry (Leontiades, 1987). In this view, it is important to consider that internationalization of business today covers not just the broad context of expansion of a nation, but the integral part of it involves the expansion of single or even personal businesses as well.
The skills required for international management includes self and cultural awareness and the right interpersonal and communication in managing between national cultures. (Parker, 2005). The good thing about internationalisation of business is the thought that a certain business may be able to expand and diversified its activities across different countries. In contrast to internationalisation, globalisation tries to look at the world as without boarder and nationless (Parker, 2005). This means that every nationality is integrated and each nation is dependent or relying on each other. This great reliance brings forward the idea or concept that the various cultures in the world can be combined together. Thus, the entire world would be bringing one single culture. However, this concern is just among of the mostly considered issues in the case of globalisation. In the midst of globalisation, the issue about whether its entire activity has remarkably been applied remains to be discovered especially in cases of international companies trying to expand into other nationalities or culture. It is also important to find out which of the principles between internationalization and globalisation are remarkably currently put into practice. Many companies are claiming the benefits of globalisation. However, it is also important to consider what specific principles they are using between internationalisation and globalisation. Hofstede’s theory of culture Hofstede’s theory of culture is about ideas on people’s behavior and attitude (Callahan et al., 2007). This theory has five dimensions which include: individualism/collectivism, power distance, uncertainty avoidance, masculinity/feminity, long-term versus short-term orientation (Landy and Conte, 2007). These dimensions can elaborately explain the existing culture in the workplace since it is a product of identifying the peculiarities of different nations (Naue and Moller, 2010). Therefore, it can explain or help gauge the main differences of varying nationalities. The impact of Hofstede’
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The company which entered the Indian market in 1996 has since evolved within the market with its products and services demonstrating an increasing market share. Nonetheless the company is subject to political, economic, social and technological forces within the Indian business environment which shapes the direction of its growth.
n restaurants in the international market. It was started in 1930s in Southern USA as a small franchisee business by Colonel Harland Sanders. Presently, it has 13,000 restaurants in all over world. The three most important success factors including service, quality and relaxing atmosphere make KFC to be a market leader.
The company has also expanded its menu to include wraps, smoothies and salads to cater for the increasing customer base. The customer base is approximately 68 million with a scope of 119 countries. It is headquartered in the United States. According to a 2009 corporate FAQ publication, most of the company’s revenues are derived from royalties, rent and restaurant sales as well as fees paid by the franchisees.
The company’s global success has, for many years, been based on its fast and friendly service. Its kitchen was the best and fastest growing in business. In the late 1980s, the business started changing, not even its successful system could handle the challenges.
The company's signature product, the Big Mac, was launched in 1968, and began the strategic move towards menu standardization that has marked the history of success at McDonald's. Although the company began as strictly a hamburger chain, McDonald's took its first step towards menu diversification with the 1964 launch of the Filet-o-Fish sandwich, and added Chicken McNuggets in 1983.
The case study analyzes the effects of corporate culture on marketing strategies, analytical as well as descriptive study is undertaken for the study as voluminous literatures are being reviewed to gather evidence in order to find answers to the questions. Qualitative methodology is also adopted to ensure quality data is collected.
Through this scheme, it is able to cut costs through operating economies in advertising and raw materials purchasing. Strategic locations where there is high traffic also propel its success by effectively reaping the cost advantages of scale economies. Other operational strategies included efficient store management to boost profitability as well as "ensuring short-term profits", "building local public relations," "maintaining employee morale," "developing customer goodwill," and "keeping tab on competing chains." KFC recognizes the importance of building an overall market image to succeed.
The weaknesses include lawsuits, the companies’ image and culture insensitivity. The inbound logistics have their weaknesses and strengths as well. The strengths include the stable economies to scale, they posses and their ability to deliver orders just in time and at
There is fun and entertainment for everyone. KFC considers each and every workers an asset for the company. The individualistic opinions of the workers are listened to, which contributes to workers’ satisfaction and motivation for work.
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