Globalization's Effect on McDonald's Business Performance Analysis

This report examines the impact of technological advancements on McDonald's business performance within a globalized context, focusing on its mission, vision, research goals, and objectives. It includes an analysis of findings, utilizing SPSS for data analysis and recommending strategic solutions. The report assesses the influence of globalization, analyzes political, economic, social, technological, legal, and environmental factors (PESTLE) affecting McDonald's in Azerbaijan. Key recommendations include conducting market research to understand customer needs and implementing strategies to improve employee motivation and reduce turnover. The report emphasizes the importance of adapting to local cultural sensitivities and leveraging technology for competitive advantage.

Business Case Development

Table of Contents
INTRODUCTION TO CASE..........................................................................................................1
TASK 1 ...........................................................................................................................................1
Business mission and vision...................................................................................................1
Research goals and objectives................................................................................................2
Analysis of finding.................................................................................................................2
Why SPSS..............................................................................................................................4
Analysis of recommend solutions..........................................................................................4
Suggested strategies................................................................................................................6
Ethical consideration..............................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION TO CASE
Globalisation refers to a process in which business enters in to foreign company with the
aim of getting higher profitability and sales so that competitive advantage would be gained. This
case is about the impact of technology on business operations and its performance while
competing with global market. Technology plays an essential role in the success of organisation
as it improves quality of products and services provided to their customer so that their
engagement experience would become higher. But at the same time, there are different external
factors which directly affects company's performance in a positive or negative way. In country
like Azerbaijan, where cultural sensitivity is high so McDonald's have to take decision
accordingly as if they backlash of the public will affect company's profitability in a negative
way. Apart from this, while considering globalisation organisation should analyse and monitor
their strengths and weakness as then only they would be able to attain maximum utilisation of
resources thus getting sustainable business performance. It can be concluded that this case will
throw light on the topic i.e., “To assess the impact of technological advancements on business
performance in globalized world: A study on McDonald's restaurant”
TASK 1
Business mission and vision
It is essential for every company to set their mission and vision according to their
capabilities as it is a way of showing directions to the employees so that goals would be attain
with pre set deadlines. Mission refers to purpose of existence of company in the market which
does not change. In simple words, mission is future goals which company have to achieved so
that they can gain competitive advantage over others whereas vision is a way which company
should to accomplished their mission. McDonald mission and vision is analysed below,
McDonald's mission: Their mission is to become the favourite place for customers for
eating and drinking. There is few flaws in the mission statement as it has not mentioned by the
company that who are there targetted customers. Then company wants to make their place
favourite but how? McDonald's have not mentioned anywhere in their mission statement that
how they are going to enhance customer experience engagement. So it can be said that it is
unclear from the side of company due to which employees would feel ambiguous while
performing their activities (Christofi, Leonidou and Vrontis, 2015).
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McDonald's vision: Company's vision is to become the best quick service restaurant
experience. Best word includes high quality of product to customers according to their customers
demand and needs, cleanlinesses in the stores so that customer would get healthy and favourable
environment to eat etc. McDonald's vision is clear as they want to provide high quality and
services to their potential customers so that they would become loyal to them thus enhancing
profitability and sales to a certain level.
Research goals and objectives
Research goal refers to a aim which researcher wants to achieve from their research. Aim
of the research is stated below, “To investigate the effect of globalization over the business and
its assistance in business expansion”. Overall aim is clearly stated as researcher wants to find out
the impact of globalisation on business and their performance and how it assist them to expand
their business with the aim of making favourable impact on balance sheet. But there is flaw in
the aim of the research as whole project is about how technology assist company to perform
better but there is no mention of technology in the aim. More focus is given to the globalisation
as it is way McDonald's could opt to attract more customer and market share (Zemlickiene and
Maditinos, 2012).
There are two different objectives of research which fully cover every aspects of the aim
which is mentioned below,
 To analysis the effect of globalization on the business.
 To investigate the impact of globalisation over the expansion strategy of business.
It must be essential for researcher to find out various effect which globalisation would
make on the business. For instance, due to entry into new country, McDonald have to analyse
positive as well as negative impact of it so that they can prepare themselves to tackle the unseen
obstacles. It must be important for company because then only they would make their strategies
so that their performance while tackling the obstacles wont get affected.
Analysis of finding
McDonald's is one of the famous fast food company operating in different parts of world such as
China, Europe, France, America, etc. There is difference in cultural values, eating habits, etc. of
countries as per change in geographical region. It is responsibility of managers at Mc Donald's
to analyse these changes and then provide product and services to consumers. There is critical
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evaluation of PESTLE analysis which helps to understand difference in various countries and its
impact on growth and development of Mc Donald's.
Political factor- As per this factor, there is government policies such as tax rate, etc. are
considered. In Azerbaijan, there is more political interferences, so managers of Mc Donald's has
to plan operations in ethical and relevant manner. Hence while operating at Azerbaijan, there is
positive culture because organisations works in authentic manner. It is important for managers of
Mc Donald's to consider cultural values for long term sustainability in industry.
Economic factor- There is direct relationship between economic policies of Azerbaijan
and revenues of country. It is important for Mc Donald's to consider economic prospects such as
inflation rate, export import rate, etc. Economic condition of Azerbaijan is good because there is
good business of oil and gas. It is easy to get raw material at Azerbaijan because of good
transportation frailties. Hence scope of business growth is more. Hence there are many
organisations which are dealing in restaurant sector, so Mc Donald's has to face competition in
market of Azerbaijan. In order to make good brand image in industry, it is important to accept
new and innovative techniques of marketing (Charter, 2017).
Social Factor- As per this factor, there are people from different diversity cultural values.
So there is difference in their perception as well. It is analysed that in Azerbaijan majority people
who are working class. So there is more trend for eating out. Hence as compared to other Asian
countries with expanding business at Azerbaijan, there is more scope of growth because of
culture values of people. This prospect is beneficial for growth and development of Mc Donald's
as well when they consider change in taste of consumers.
Technological factor- there are many technological changes taking pace in external
environment. As there are many restaurant operating, so in order to deal with tough competition,
it is essential for manager of Mc Donald's to accept technological changes. For instance: there
must be use of more innovative social media advertisement through which they can beat other
organisations in order to achieve competitive advantage.
Legal factor- Legal factor involves rules regulations such as proper business regulation,
laws related to employees, etc. AS there is more government parties, so it is essential for Mc
Donald's to accept all the legal factors. As Mc Donald's deals in restaurant sector, so managers
must consider food related laws and regulations. This helps to maintain quality of products
offered to consumers. Hence Mc Donald's is able to achieve competitive advantage because they
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are working in authentic manner. This also helps them to make long term existence in new
market.
Environmental Factor- Environmental factors refers to change in weather climates of
country. In case of Azerbaijan, there is moderate climate, so it is easy for Mc Donald's to get
their raw stuff on time. In Asian countries there is culture of non vegetarian hence due to
moderate climate, it is easy for Mc Donald's to keep raw material at constant temperature to
preserve them (Boiral, Baron and Gunnlaugson, 2014).
Why SPSS
This is the main stage of the research in which data is modified and scrutinize according
to research aim and hypothesis. For the researcher, right choose of data analysis software is
important as it modify the way of the research as chances of getting unexpected result related to
research is high. So after thorough investigation of various tool for data analysis, SPPS software
is used which is short for statistical package for t he social sciences. There are many advantage
of using the same which is explained below,
 At the time of using software, it automatically provides graphs and charts of the data
which has entered through Microsoft Excel. It is very easy to handle as research just have
to drag and drop the data and after that, all work will be done by the software only.
 Through SPSS missing value, researcher can identify the relationship between any
missing value in the database and other variables as without it, adverse impact could be
seen the researcher while getting end results (Importance and benefits of SPSS in
research, 2019)
 There are other methods which could be accomplished with the help of SPSS software
like cross tabulations, ratio statistics, correlation between numbers, liner regression for
prediction etc (What is SPSS and How Does it Benefit Survey Data Analysis?, 2018)
It can be summarise that SPSS ensures researcher that right usage of data would be attain so that
more credible and authentic research will be made.
Analysis of recommend solutions
In the report there are two recommendation is made on the McDonald's with the aim of
removing their weakness which is analyse and explained below,
It has been suggested to the company that proper market research should be conduct by
them with the help of interview, questionnaire etc so that accurate needs and demands would be
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collected. Customers is the king of the market as they are the one who consumes products and
services in exchange of monetary value which makes McDonald's revenue. But before spending
even a single penny, consumer thinks about the needs and preferences they have in the mind and
then choose the product accordingly. So if they are not getting what they wanted to have then
customers will switch to other brand resulting in loss for company. For instance, Azerbaijan
public is now more concerned about their health that's why they prefer to avoid junk food in the
market. So McDonald's responsibility is to assess the needs of customers as what they wanted to
eat through survey and then modify their products with the aim of getting higher footfalls on a
daily basis. It can be concluded that this recommendation would be assist McDonald's to make
their experience with them memorable (Tukker and Tischner, 2017).
McDonald is facing from high turnover ratio due to which their productivity and
efficiency is affecting in a negative way. Main reason behind low retention rate is low motivation
of employees due to less skills, low pay, breach of employment contract etc. It must be essential
for McDonald's to motivate their employees as they are one who invest all their skills and time
so that company mission and vision would be achieved in a fixed period of time. It has been
suggested that knowledgable candidates should be hire by company so that proper utilisation of
skills would be achieved. But on the other side, McDonald's have to also increase their basic pay
as money is the primary motivate of employees. Besides this, proper training should be provided
to employees so that they can perform their task with full potential. For instance, if a cash
counter employees of McDonald's is not friendly with the technology company has provided to
them. Then its the duty of organisation to give training to the employees so that higher
productivity would be achieved by both. So proper care should be given to employees so that
McDonald's would be able to attain maximum utilisation of resources.
Quality plays an important role in the success of a food organisation as customers prefers
to spend more just to get the high quality of product. To maintain high quality of product,
McDonald's must opt production line method so that excess work would be eradicate resulting in
lower cost of product thus improving the quality of product. For instance, if McDonald provides
high quality of burger with the less price as compare to other competitors like BİR İKİ Döner
Shop, Burger House, FRYDAY - Burgers & Fries etc. Then their customers will also attracted to
McDonald's which ends up at increasing revenue and customer base of the company.
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As mentioned above, cost is an essential attraction aspect of customers as they does not
wants to pay more for the product which they are getting from the other companies with the
same quality. So recommendation which has been given is to reduce the inventory cost so that
McDonald's profitability would increase thus better future for the company. It would be tricky
for McDonald as if the start reducing the inventory then their ordering cost would automatically
increase which would affect their revenue to a certain level. Moreover, if unexpected number of
customers arrived in the McDonald to spend their time then it would be difficult for them to
satisfy their needs and demands thus negative image of the company would be made in the mind
of customers. So McDonald's have to bring some advanced technology in their working
operations so that proper inventory management would be achieved.
Last suggestions which was made earlier in this file is that McDonald should opt
democratic style while operating their business in Azerbaijan as it would enhance their efficiency
to a certain level. There are many advantages of using this style like it motivates employees in
the organisation as every individual opinions is taken for consideration while taking decision. It
enhances sense of ownership within employee's due to which their performance potentials
enhances which leads to increase in overall productivity of McDonald's. Besides this, if
employees have authority to share their opinions then chances of creating innovations also
increases. But on the other side, there are few disadvantages of democratic style too, like
decision making process becomes slow as leader tries to satisfy every employees opinions. If
McDonald's needs to take fast decision then this style would be ineffective in nature (Antero,
2015).
Suggested strategies
Mcdonald is a global firm having high brand image and strong product portfolio. The
company wants to increase their customer base and market share due to which the management
needs to develop a new strategy through which these goals can be achieved. For this, company
has decided to launch a new product in a new segment which is McDrink. Presently, the firm is
providing the drinks of coca cola and pepsi. But after launching this new drink. Company can
cover more market share from this new product which will also assist the firm in increasing their
revenue as profit of selling different companies beverages is going to their respective companies
which is decreasing the profit of McDonald.
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The taken firm i.e. McDonald is providing burgers, sandwiches etc. which are the main source of
income for the firm. But the firm has decided to launch their Pizza for attracting the more
customers. Through this, the firm can attract the customers of their competitors such as Pizzahut
and Domino's which will strengthen the position of the firm in the market. Also the firm can
retain their customers who prefers the Pizza from going to their competitors. By launching their
new Pizza, the revenue, sales and profit of the company can improve along with the increase in
the market share.
Through these new products, McDonald can grab more customers towards their offerings
which will also increase the profitability and performance of the company in the market.
McDonald can achieve high competitive advantage if successfully implemented these strategies
for launching their new products
McDonald is one of the most renowned junk food company in the world as it operates in
more than 100 countries and has 21.025 billion USD revenue in 2018. So it can be implied that
company has vast amount of funds which they could invest in other field just to earn more
revenue from it. Organisation should try to open more stores in the country so that more
customer base would be covered. Customers prefers to visit those stores which are nearby their
homes or school instead of those which is located far away from their place. It would assist them
to acquire more market which could help them to gain market leader position in Azerbaijan.
Apart from this, there are many customers which does not like to wait for the order to
come as they avoid wasting time at the stores. So to attract those potential customers,
McDonald's should make a phone application in which customers can order their food from their
home only and provide the time of arrival to the stores so that whenever they arrive at the
McDonald's stores they does not have to wait for it. For instance, if an individual wants to eat
hamburger in McDonald's at 8:00 PM then person can use their app to order their bookings so
when he visit the store physically then waiting time of customers would be reduced to zero thus
enhancing customer experience engagement to a certain level.
As explained above, it should be important for companies to understand the needs and
demands of potential customers and then make their products accordingly as then only
organisation can retain their customers for long period of time. So to cope up with that,
McDonald have to stop those products who does not have high sales in the past year and
modifies it according to customer demands so that customers base would increase slowly and
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gradually. For instance, if Ice cream of McDonald is not liked by the customers due to high in
sugar then company have to make it diet ice cream or sugar free ice cream so that customers
would enjoy their products without taking tension of getting diabetes in the future.
An organisation can only perform better in the competitive market if and only if they
have been able to perform sustainably for a longer period of time. If McDonald is getting same
amount of sales in the whole month then their revenue will automatically increase as they does
not have to wait for weekends for high sales. So to tackle this situation, McDonald have to
decrease their prices for few days in a week as a offer so that more customer would arrived in the
stores just to save few money. It is a win win situation for both the parties as customers are
getting their favourite food in cheaper price and on the other hand, company is getting high
number of footfalls which ends up in increasing annual turnover of McDonald.
It must be important for McDonald to maintain their brand awareness as without it,
people wont be aware of it which will affect their sales and profitability in a negative way. To
handle this, McDonald have to put posters and pictures of their products on all over taxis and
public buses so that it can attract the eyes of people passing from it. Main benefit which
company will get it from it is that more customer would be aware about their products as taxis
and public buses roam around all over country. On the other side, owner of the vehicles will get
their money of advertising their company which will enhance their disposable income and
standard of living (Wirtz and et. al., 2016) (Ritala, Hurmelinna-Laukkanen and Nätti, 2012) .
Other strategy is buy one get one free. It is an effective strategy for the managers when
they have to sale their products in a small period of time along with attracting a large number of
customers towards the offerings of organisation. With the help of this strategy, Management of
McDonald will reduce their inventory cost which can be used by them in performing other
operations in the same time period. This technique can also provide a huge benefits to the firm in
the form of enhancing sales figures and profitability of firm in Azerbaijan.
Home delivery, It can be defined as the bringing of items at the location of desired
customers instead of inviting customers towards the store and collecting the products from the
outlets. This strategy will also helpful for the McDonald in attracting a large number of
customers towards the offerings of firm because most of the citizens of Azerbaijan are business
persons and having a busy schedule. Therefore, this strategy will provide assistance to them in
fulfilling the needs and wants of customers at their desired locations along with saving their time.
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Social media, It is also an effective strategy which is used by organisations for spreading
awareness among the customers of nation. In the context of McDonald, their managers can use
this strategy for enhancing the awareness of their brand in the new marketplace like Azerbaijan.
In modern era, this strategy will be helpful for them in gaining high recognition of the customers
towards offerings of organisation (Quinlan and et. al., 2019).
Ethical consideration
Ethical consideration is defined as the code of conduct that need to be followed by each
and every team at the time of attempting research. It is one of the important part of a research. It
is necessary to follow various steps which are ethical and must be addressed in the systematic
manner.
 It is to be noted that research report must not harm other other people any condition and
if it found that then research will not be counted as valid report.
 It is necessary that while doing research on any topic at least consent must be obtained.
The is mandatory to that every participants have been agreed. If anyone is not agreeing
on the term and condition of a report then it is necessary to find best alternate way so
that further processing can be done (Charles Jr, Schmidheiny and Watts, 2017).
 Research team must ensure that confidential information are not being shared with
outsider else it will be very difficult to conclude research on time. It is clear that if
information are not kept securely then results which need to be obtained will not be
taken out.
 There should be transparency and honesty at the time of communication on the topic of
research because this will help to understand the points and information which any
participants wants to express.
 It is necessary to mention all the information regarding source of funding and all other
relevant information which are related to research.
 Researcher must make sure that primary finding are not biased in nature because it will
not give provide exact data which are required in research.
 The use of offensive words and irrelevant language should not be used in any condition
at the of preparing questionnaire, interview etc. as, it is not acceptable in any of the
situation.
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This are some of the points which need to be focused more at the time of doing research
as it will be helpful at the time of concluding research. In addition, it is important that researcher
team have a basic knowledge regarding federal and state laws because they are key areas which
need to focus. Else report cannot be declared as conclusive. Even, it is necessary to take all
safety equipment as it will allow to work freely. Sometimes, researcher doesn't mention all the
relevant facts and because of this most of time they forgets to mention acknowledgement report
which should not be done as it is not acceptable. Research report is one of the critical file where
team should keep in mind that they will not add on those information which are not related to the
topic.
In context of McDonald's, it is important that how they follow the ethics as it very
important to run organisation successfully. As, they are one of those company who falls under
the category of Corporate Social Responsibility (CSR), so it necessary to follow all the rules and
regulation of CSR else heavy penalty can be imposed if they fails. Even it is necessary for
company to provide all the rights to their each and every employee under employment law
because they are the one who helps the company to achieve their target on time. But, if they fails
to do so then legal action can be taken on company. Even MacDonald's must keep in mind that
they are working according the environmental ethics as it very important to save nature. By
keeping this things in mind company should do planning on particular field
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CONCLUSION
From the above discussion, it is clear hat this research is conducted in order to analyse
impact of technological changes on business operations while operating at international level. In
current market, technological changes are taking place with rapid speed. In order to make good
brand image in industry, it is important to accept these changes. But there is issue in accepting
technological changes that is cost and time consuming approach. Sometimes there are
possibilities that employees are not ready to accept changes so frequently. Difference in
consumer demand is one reason which affects decision making of organisation. Business
mission, vision is important because this provides specific direction for conducting operations.
With mission, vision it is important because employees are aware about changes reasons for
conducting operations.
Research aims and objectives helps to conduct research activities and collect data to
achieve it. This helps to get an clear and concise way to conduct research. PESTLE analysis is
done to understand change in culture, competition and environment as per difference in
geographical region. Hence organisation conduct operations accordingly. With the help of
specific computerized statistical system i.e. SPSS tool, it is easy to collect and interpret ate data
collect from primary and secondary sources. This helps to give correct recommendations and
suggested recommendations for further improvements. In order to analyse current position of
organisation SWOT analysis is done. This is the method through which internet strength,
weakness and external threat, opportunities can be analysed. Marketing mix helps to understand
changes which has to be in operations while operating at international level. At last there is
discussion about ethical consideration which aims at conducting research in ethical and reliable
manner. While conducting this research, data is collected from authentic sources and used for
research purpose only. There is recommendation to company to conduct CSR activities, to
analyse all the possible consequences at international level.
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