Global Policy & Strategy | Globalization| Multi-National Companies
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Added on 2020-01-23
Global Policy & Strategy | Globalization| Multi-National Companies
Added on 2020-01-23
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A34651GLOBAL POLICY ANDSTRATEGY1
TABLE OF CONTENTSIntroduction......................................................................................................................................3Definition and Concept of globalization..........................................................................................3Causes of globalization....................................................................................................................5Pros and Cons of globalization........................................................................................................7Recommendation.............................................................................................................................9Conclusion.......................................................................................................................................9References......................................................................................................................................102
INTRODUCTIONGlobalization is the prime aim of organizations that supports in increasing revenues ofcompany and giving international presence to the corporation. Present assignment is based on theglobal policy and strategy (Faulconbridge and Muzio, 2016, pp.89-124). Aim of report is to findout the impact of globalization on multinational company . Concepts and definitions ofglobalization will be discussed in this study. Objective of the report is to identify advantage anddisadvantage of international business. Corporations have to face many issues at the time ofworking with different countries as well as all problems, causes and drivers of globalization willbe discussed in this study. Present assignment is based on McDonald's which is a multinationalbrand that provides quality food and services to customers across the world (Seo and Gao, 2015,pp.30-36).DEFINITION AND CONCEPT OF GLOBALIZATIONAccording to Dasgupta and Ghatge (2015, pp.283-292) Globalization can be explained asthe trade relationship with more than two countries. In the modern era, most of the businesses arehighly depended upon international trade, finance and macro-economic policies. It can bedefined as diffusion of values, technologies and practices that can influence the businessworldwide. Globalization is the enlarged movement in many countries with respect to trade,money, investment, etc (Ritzer and Dean, 2015). It has four main dimensions, that is, economic,environmental, political and cultural. Globalization has influenced the world’s economy and dueto this, businesses are operating across border rapidly as well as there is fast flow of information.It supports organizations in gaining global presence and helps in enhancing their revenues aswell. Now, entities have huge target market and they can attract more customers towards thebrand. Statistics show that merchandise trade has been increased since 1950 to 2004approximately 7.5 times. It can be explained as elimination of state restriction of exchanginggoods and services across border. Globalization has positive and negative impact on McDonald'sas to sustain in the global world, cited firm has to produce quality food and has to provideexcellent services (Salcito and et.al, 2014, pp.39). It has improved the standard as well as it isgetting competitive advantage in the global market. It is utilizing resources well and givingflexibility to its workers so that it can sustain in the international market for longer duration.3
Apart from this, company is spending sufficient amount in research and development so thatneeds and requirements of customers can be identified. By this way, cited firm can be able totrade well in the new country (Dasgupta and Ghatge, 2015, pp.283-292). This is the reason;products of McDonald's are satisfying the needs of service users in each nation. According to the Grear and Weston (2015,pp.21-44) globalization is an integratingprocess through which companies can integrate with government, economy and companies ofdifferent nations. It has brought lots of strategic changes in the business world and organizationsare free to trade across the border. Hill has argued that transnational formalities in Foreign policyare better than globalization (Hill, Cronk and Wickramasekera, 2013). It is very important tohave a strong relationship between foreign policy and globalization that put its huge impact onthe overall growth of organizations. Globalization is giving many opportunities and creatingthreats to companies. Managers of McDonald's should provide flexibility to the workers so thatthey would feel comfortable in the organization. Managers of cited firm have to lead the teamwell and involve them in decision making process (Grear and Weston, 2015, pp.21-44).Participative approach of leadership helps McDonald’s in globalizing its business. As it has hiredemployees across the world, so, due to globalization, company is getting learning opportunity forthe workers. According to Hill report, approximately 1.5 billion foreign transitions are takingplace daily and approximately, 8.9 trillion goods are transacting across the border (Hill, Cronkand Wickramasekera, 2013). After the Second World War, communication, technologies andprocessing have been changed to a great extent. Globalization has removed barriers and now,companies can trade easily with international countries. With the help of this concept, entities areworking well in the international market. McDonald's is a multinational brand and supplyingquality services to customers across the world. It has good connection with many nations andemployees are skilled that support the cited firm in expanding its business globally (Lapatinas,2015, pp.0_1). Globalization is the concept which defines that whole world is a single marketand companies are free to produce similar products and can trade freely across the world. Due tothis, FDI has been enhanced from 2.2 billion to 154 billion (Ramsay, Olliaro and Reeder, 2016pp. 235). McDonald's is continuously bringing innovation in its workplace so that workers will feelencouraged and they would stay in the organization for longer period. To survive in the4
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