Isbm - International Business...

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INTERNATIONAL BUSINESS

GROUP A : Cases 1 to 4 : 40 Marks

GROUP B : Cases 5 & 6 : 40 Marks

Case-1 (12 Marks)

AT THE RECEIVING END (McDonald)

Spread over 121 countries with 30,000 restaurants, and serving 46 million customers each day with the help of more than 400,000 employees, the reach of McDonald’s is amazing. It all started in 1948 when two brothers, Richard and Maurice ‘Mac’ McDonald, built several hamburger stands, with golden arches in southern California. One day a travelling salesman, Ray Kroc, came to sell milkshake mixers. The populatity of their $0.15hamburgers impressed him, so he bought the world franchise rights from them and spread the golden arches around the globe.

McDonald’s depends on its overseas restaurants for revenue. In fact, 60 per cent of its revenues are generated outside of the United States. The key to the company’s success is its ability to standardise the formula of quality, service, cleanliness and value, and apply it everywhere.

The company, well known for its golden arches, is not the world’s largest company. Its systemwide sales are only about one-fifth of Exxon Mobil or WalMart stores. However, it owns one of the world’s best known brands, and the golden arches are familiar to more people than the Christian cross. This prominence, and its conquest of global markets, makes the company a focal point for Inquiry and criticism.

McDonald’s is a frequent target of criticism by anti-globalisation protesters. In France, a pipe- smoking sheep farmer named Jose Bove shot to fame by leading a campaign against the fast-food chain. McDonald’s is a symbol of American trade hegemony and economic globalisation. Jose Bove organised fellow sheep farmers in France, and the group led by him drove tractors to...