Significant

CHAPTER 1

INTRODUCTION

1. Introduction

This chapter will discuss about the background of study, background of company, problem statement, research objectives, and research questions, scope of study, theoretical framework and research hypotheses, significant of study, limitations and definition of terms.

1.1 Background of Study

McDonald’s, Globalization and Culture

Globalization has affected almost every aspect of life in almost every nation. From economic to social to culture, this widespread exchange of goods, services and ideas have influenced changes around the world. Even though the cultural influence in globalization is of slight significance to policy makers, its power has tremendous consequences to the nations involved and its people. Food is an important element in defining culture. Britannica (2007) define food is the oldest global carrier of culture (para. 1). Any changes in the food that we eat, in its preparation, the way it is served and consumed diminishes the traditional beliefs of the people.

One of the most influential changes came with the introduction of fast food restaurants like McDonald’s into foreign countries. Transformations have taken place which could be perceived as beneficial or corrupting to that culture. According to William Gould (1996), before the introduction of McDonald’s overseas “fast food was almost unknown. McDonald’s been the first company to try to export America’s love of fast food and changes in eating habits of other nations”. Catherine Schnaubelt (u.d.) in her study has found that “McDonald’s has over 1.5 million franchises in the United States and about half of the total franchises are outside the U.S in over 120 countries. Amidst all the fame and fortune of McDonald’s, there are concerns about how the spread of standardization of the franchise is affecting culture, attitudes and environment.

The globalization of McDonald’s has raised many debates on both...