Cross-Cultural Perspective - McDonalds - Essay Example

More than 80% of McDonald's restaurants worldwide are owned and operated by independent local men and women.” (McDonald’s Official website, 2011). McDonald has operated around the globe for more than three decades with a highly successful strategy being adopted by the company’s management. During recent years, the company faced severe competition in the United States of America (considered to be the home market for the organization. This severe competition led the company to focus on revenue being gathered from the international market. Internationally, fifty percent of the company’s retail outlets are franchised to local people of that particular market/country in which the company operates. Hence the main revenue generated is from Royalties, Rents, etc.

            McDonald’s has followed a brilliant strategy by focusing on the smallest of details within the international market. This includes McDonald’s focus on social, religious and cross-cultural issues that the company faces in all the different countries in which it operates. One of the major cultural issues that the company has faced over the years of its operation is the fact that it is hugely criticized for adversely affecting local customs of eating and lifestyle in the area in which it operates e.g. the replacement of traditional teahouses in Japan by American fast-food franchises. The company has expanded so much that it can be found in more than 120 countries around the globe. Individuals find McDonald’s retail store very easily because of the increased number of retail stores within any particular city e.g. Rome has more than 33 McDonald’s retail stores and it is because of such reason that people may get tempted to try out the products offered by the restaurant because of abundant retail stores at every corner. People who might not be fond of such food may opt for it because of the cleanliness and the environment that they offer within their different restaurants.

            McDonald’s offers different products so as to suit the differing cultural and religious perspectives e.g. Hamburgers are not offered in Muslim countries because of a Muslim religious restriction towards eating Pork. To cater to the demand of these Muslim customers, McDonald’s have set up outlets that offer food termed as “Halal”. In India, the scenario is totally different, the country is known for its vegetarian eating habit and it is because of this reason that the Indian market is served with totally different products such as the sandwich known as the “McAloo Tikki” (sandwich with fried breaded potato and pea’s patty). These cross-cultural differences do not restrict themselves to product only, the website is created for the different countries to have cross-cultural aspects addressed in them.

The company has to focus on many ethical issues in order to maintain its standard of being a global organization. The company has taken many steps in order to prove to the world that the organization’s social responsibility towards the environment is properly dealt with. McDonald’s has completed a comprehensive sustainable land management commitment in order to ensure that the sustainability of the organization’s supply chain is maintained and improved. The company clearly shows that it cares for its customers and its environment by acquiring their unprocessed or minimally processed raw materials from legal and sustainably managed sources. McDonald’s care for the environment can be easily witnessed from their packaging material. The packaging material used by the company is made up of wood fiber, as this really helps in better recycling of those packaging materials.

            Besides this, the company has been involved in reducing its environmental footprint for the last 30 years. McDonald’s was the first global organization that started energy-saving measures. During 1990, the company stepped forward to create a coalition with the Environmental Defence Fund (EDF) and it was during that year only that the company eradicated 300 million pounds of product packaging by redesigning and diminishing materials.

Sound ethics and good corporate governance are given high regard within the organization. McDonald’s independent Board of Directors is clear evidence of good governance and this good governance practised is highly admired around the globe. The Board of Directors at McDonald’s are responsible for keeping an eye on the assets and the business affairs of the organization in such a way that their respective behaviors may never be questioned by anyone. The Boards of Directors are highly acting “bonafide” and in the interest of the shareholders.

            Finally, it can be said that such ethical practices and good governance procedures help the company in presenting a good image to its global market. Such ethical practices help the company to excel in those markets where they are not admired fully and it is because of these practices that the company improves its image in those markets. McDonald's has to cater to many different classes of people having different tastes, cultures, religions and beliefs and it can be said that the company has been able to achieve exemplary results from the international markets rather than the USA market because of its unique ability and core competence to alter its plan and strategy in accordance with the market in which it operates.