Globalisation - Mcdonalds

In what ways does globalization have an impact on UCLan or an organisation you are familiar with?

Globalization is the circulation of goods, services and capital; as well as information, ideas and people. Or, Morrison defines globalisation as “increasing and depending interactions between individuals and organizations across the globe” (2009). Many believe that globalization is the movement of global capitalism, and that it will help learn how to coordinate their actions and act rationally, rather than radically. In this case I will look at the impact globalization has had on McDonalds, which is the utmost renowned fast-food restaurant in the world. After opening their first restaurant more than 73 years ago, McDonalds are now operating in 116 countries worldwide, with 34,492 restaurants.

Globalization has proved to have a huge positive impact on McDonalds in a sense of creating brand recognition. This is because their famous “golden arches” have enabled them to become a global brand, rather than just a fast-food restaurant. The reason for this is that whenever anyone sees the McDonalds logo, they immediately think of the restaurant, which gets them to think about the food they sell. This is beneficial to McDonalds as it creates a sense of hunger within their customer base, meaning they are more likely to go into the restaurant to order an item, as they can do so with ease using the drive-thru that is provided.

McDonalds have also used globalization to their advantage, as it has enabled them to expand into growing economies, like China for example. With the economies growing, it means the potential customers for McDonalds will have a higher disposable income, meaning they will be more inclined to buy one of their income elastic products. This means that McDonalds will receive more sales and revenue by expanding into a new market, consequently meaning they will have higher profit margins, which can be funded back into the organisation to help them grow...