Positive Impacts of Globalisation on Marketing of McDonald's

Running head: RISK MANAGEMENT
Risk Management
The Name of the Student:
The Name of the University:
Author Note:

1RISK MANAGEMENT
Table of Contents
Background, Aims and Objectives:................................................................................2
Analysis of the Scenario:...............................................................................................2
The Concept of Globalisation:...................................................................................2
Economic Factors Related to Globalisation:..............................................................3
Cultural Factors Related to Globalisation:.................................................................4
Ethical Factors Related to Globalisation:...................................................................5
Analysis of the Findings:...............................................................................................6
Conclusion:....................................................................................................................6
Recommendations:.........................................................................................................7
Communication of Recommendations to Stakeholders:................................................7
References......................................................................................................................8

2RISK MANAGEMENT
Background, Aims and Objectives:
Twenty first century is a time of globalisation, and the impact of globalisation is
diverse, such as economic, cultural, and ethical. On this context of globalisation, the
organisations need to maintain its sustainability through appropriate business plan. McDonald
is a multinational company that has been operating in the market since 1940 (Mcdonalds.com
2018). Founded by Richard Mcdonald and his sister Maurice Mcdonald, the company has
grown from a single burger selling restaurant to a global franchise in 13 years
(Mcdonalds.com 2018). Since then, the company’s success has been skyrocketing, and still
continues to increase in this age of globalisation.
The aim of the project is to find out the positive economic, cultural, and ethical
impacts of globalisation on marketing of McDonald. Therefore, the objectives of this project
are –
i. To understand what is globalisation.
ii. To find out how the economic impact of globalisation effect marketing.
iii. To find out how the cultural impact of globalisation effect marketing.
iv. To find out how the ethical impact of globalisation effect marketing.
Analysis of the Scenario:
The Concept of Globalisation:
As a broader concept, globalisation can be said as the term used to describe the
integration and interaction of people on a global scale (Ampuja 2015). In terms of business
and economics, it is seen as a way of integrating international markets and connecting world
economy (Bende-Nabende 2017, Balassa 2013). As an emerging trend in business,
globalisation initiates free transfer of capitals, goods and services across national barriers to

3RISK MANAGEMENT
develop the world business relationship among organisations and countries (Bende-Nabende
2017). It helps to boost the economies of developing countries, and increase the quality of
living for the population of these countries. Globalisation enables the multinational
companies to gain competitive advantage through free markets and open trades.
Marketing is the process of promoting a business and sell the goods and services. It
also includes advertising and market research. In other words, marketing is about managing
the exchange relationship in a business. As the objective of marketing is to promote the
business and create an exchange relationship with various stakeholders, globalisation has a
significant impact on it as it opens the doors of international markets to create the ground for
selling goods and services, and reach out to a larger number of consumers. The objective of
globalisation is closely related to the world economy, and since it involves integration and
interaction of international people, the cultural and ethical factors are also an integral part of
it.
Economic Factors Related to Globalisation:
Among all the economic factors relates to globalisation, the development of the global
business is the most significant. Global business has two main components – export and
import of goods and services to and from multiple countries (Cavusgil et al. 2014). Due to the
recent trend of globalisation, exchanging goods and capital between the countries have
increased and become noticeably easier (Intriligator 2017). The development in the
transportation as well as the internet service has made the process of global trade much
smoother than before. Multiple national governments are adapting the free trade system to
increase the scope of international trade (Cavusgil et al. 2014). In addition, the European
Union has its own system of free trade among the member countries (Orbie 2016). The free
trade system enables the countries to trade with each other without paying income taxes for
goods, and having no limits on the amount of imported products.