Globalization and Outsourcing: A Case Study of MacDonald's

MACDONALD’S CASE STUDY
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

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EXCECUTIVE SUMMARY
This report discusses and examines globalisation process of companies and its
impacts in today’s businesses. The role of international manager’s while managing global
companies is also realised while verifying desired qualities in them. The impacts of
globalisation process can be seen in today’s businesses and thus this report focuses more on
international trade and commerce along with role of outsourcing and off shoring business
activities. This report has made a case study of Macdonald’s Company after analysing its
global business strategies and impacts globalisation have made on its business functions. This
report will demonstrate opportunities, challenges and issues that take place in international
companies while carrying businesses in global context. This report will highlight more upon
outsourcing and off shoring activities taking place during globalisation process as both the
activities is seen increasing in present business environment.

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Section 1
INTRODUCTION
Globalisation is the process of connecting firms, people and government of diversified
countries to get integrated with globalisation of companies. During the process, both
distribution as well as manufacturing takes place along with making sales in marketplace
across borders which links different countries through global trade and commerce. Impact of
globalisation and international businesses is enormous and remarkable as it has brought
businesses and people mush closer. International business and globalisation are interrelated
terms where global organisations have taken benefit of globalisation process through
incessant development (Edwin & Okpara, 2015). The idea behind making companies global
is to make things accessible at desired places, irrespective of countries borders along with
utilising available resources to the extreme. Service industry as well as manufacturing firms
have both benefitted from globalisation process along with other small units related to them.
If organisations are able to cope with current international business needs, they gain from
international markets whereas rest of the world benefits by getting desired products and
services (Muciimi & i Ngumo, 2014). The reason behind augmentation of globalisation is
astounding growth in technological and communicational fields. Enhanced technology and
internet has resulted in fast development of internationalisation process along with
development of human civilisation. As compared to earlier years, businesses have been seen
from different perspective where people demands for more innovative and developed
products. Environmental changes in last few decades have also made changes in business
policies where organisations ventures across borders in detection of business opportunities.

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Today, products manufactured in one country are easily available in different countries which
show the dimension in which businesses have developed across borders and are likely to get
more augmented in upcoming years. Although globalisation is a common practice adopted by
today’s firms, its impacts are also realised by them that can affect organisations both
negatively as well as positively. Globalisation enables sound relationships among diversified
countries along with developing international trade. However, negative impacts of it like
exploitation of foreign county resources, manipulation of market trend, unethical code in
practices along with degradation of small scale industries makes globalisation process fall
into negative stance (Okoye & Nwaigwe, 2015).
Staying ahead of the game becomes difficult for those managers who fail to
understand the reason behind globalisation of their company along with unawareness of
globalisation effects. Tasks and duties of global managers become difficult as globalisation
process entails complex issues and tricky situations. Global companies’ possesses diversified
people who belong to different cultures and backgrounds. Managing work force under such
situations requires managers undertaking training of diversified languages so that
communication between them and employees becomes operative (Bertrán, 2006). Along with
it, global managers require having future envisaging capabilities to remain ahead of the game.
This means, a global manager must think about different issues from broader perspective
while focussing more on development of firm in attaining firm’s objectives. International
managers responsibility does not limits in home country only and thus they require taking
responsibility of nurturing people in operating countries also by considering their ideas and
demands. Along with it, global managers must be aware of different countries laws and
regulations so that any unethical move during internationalisation process is avoided
(Tanushevski, 2016). Leadership traits and moral insights of global leaders become
significant while managing employee’s of global firms. For this, they need to implement