(Solved) Case Study on McDonald's

MCDONALD’S CASE STUDY
MANAGING ACROSS
BORDERS
INSTITUTIONAL AFFILIATION(S)
STUDENT NAME
Research, discuss and identify how ‘globalization’ impacts business today, and
what international managers must know to stay ahead of the game. Identify
and discuss how outsourcing and off shoring contribute to globalization using a
company case study to identify the challenges, opportunities and problems
that globalization presents.

P a g e | 2
EXECUTIVE SUMMARY
This report has been prepared to discuss and identify the impacts of globalization in today’s
businesses. This report also identifies the role of international managers and the procedures
they follow to stay ahead in globalized marketplace. This report basically focuses on
international relations while identifying effects of outsourcing and off shoring in conducting
global operations. Management influence is ascertained by several factors like environment
and political conjecture that has been discussed in this report which will provide assistance to
its readers about global manager’s participation in globalization. The case study utilised in
this report has made the topic more apparent by identifying challenges, opportunities and
problems faced by international companies. In this report, McDonald’s globalization strategy
has been discussed in regards to the challenges faced and opportunities gained by the
company during its globalization process. The company faced many problems while
operating in diversified countries that shows the need of skilled global managers who can
control the ups and down of company in efficient manner. This report concludes by
highlighting upon key areas learnt during the identification stage that can be referred while
making decisions regarding globalization in company.

P a g e | 3
Sections 1
INTRODUCTION
Globalization can be considered as a result of knowledge development in businesses. The
enhancement of technology enabling organisations to carry on their business without borders
has undeviating impact on development of globalization. The benefits like availability of
information, free flow of products, monitoring competition and availing better work force
have made many organisations undertake globalization through creation of single market for
all. Overall economic process has been greatly influenced by globalization as organisations in
today’s world follows free movements by enabling global practice as well as liberalisation of
technological developments. Globalization has also brought businesses and people together
and therefore the impacts on global business are huge and remarkable (Tanushevski,
2016). International business and globalization are interrelated in which international
organisations have taken benefits of globalization while contributing towards development.
Globalization has made everything available worldwide that were considered difficult for
businesses along with making utilisation of resources that were not easy before (Nwaigwe &
Okoye, 2015). Many service industries as well as merchandise business along with small
traders have benefitted from global transactions. Globalization has resulted bringing a wave
of entrepreneurship along with encouraging people for starting new ventures of their own. In
other words, globalization has brought an era of oneness that was not present before. Bad
impacts of globalization are not faced by those firms who match up with competition and
gain from global markets. Examples of successful businesses that have expand their business
internationally and gained from globalisation are Starbucks, Coca Cola and McDonalds.

P a g e | 4
One of the goals of international managers is to develop innovative skills and competitive
nature in global marketplace to stay ahead of the game. The changing demands of
international market have made difficult for today’s managers in integrating necessary skills
required for brining work efficiency in global marketplace. Even the change have kept most
of the mangers and decision makers react to global change rather than addressing changes of
globalization that will be further increased (Zynczak, 2012). Determining exact skills for
global managers becomes difficult unless innovative ways are developed in learning about
effective ways of global management. New skills are developed by making reference to
innovative decision making methods that requires global managers keep up to date. Global
managers along with human resource departments are entitled to consider groups and
individual tasks that need to be managed in global context. Multiple IQ’s of global manager’s
helps in developing inventories in individual level where decisions are made after recognising
present needs of business (Harvey et al., 2009). Global tasks of complex nature are
managed by managers after considering group decisions that predominantly insures that
sufficient aptitude had been provided in global decisions. Group interactions are given more
importance while making global decisions which make global managers face more
competencies within organisation’s management. Outsourcing and of shoring decisions made
by managers must ensure the requirements of local and international environment so that they
do not have to face environmental configuration after making decisions. Economic
developments in different phases of industrial development like pre development stage,
industry setup and post industrialised stage have direct impact on strategically made decision
of global managers. The kind of decision made influences the economic growth of countries
also and therefore global managers need to employ strategic consideration before coming up
with any idea. Internal environment of organisations situated in different countries are