International Business Management - Assignment Example

Only on StudentShare

Extract of sample
International Business Management

The following report talks about the McDonald’s corporation, its inceptions, values and international expansion. Then, the theories are applied and McDonald’s strategies are analyzed in light of these theories. Later, the issues McDonald’s faces as a corporation as it expands particularly in the developing countries are discussed, followed by specific examples of the challenges, from the past, the external environment has posed on the fast food chain.
The McDonald’s corporation, whose international division was established in the year 1969, today is the largest chain of hamburger fast food restaurants in the world, and serves around 70 million customers on a daily basis in 118 countries. In the 1940 when the company began its operations in the United States under Richard and Maurice (Mac) McDonald, it was a barbeque restaurant. It wasn’t untilm1948 that they decided to reorganize the business as a hamburger joint based on the principles of production line. In 1954 when the milk-shake mixer sales man, Ray Kroc, saw an opportunity in this market and joined the business as a franchise agent in 1955. Ray Kroc negotiated the deal with the brothers and ended up making a franchise deal that gave him the exclusive rights to franchise in the USA. Kroc offered a McDonalds franchise at a price of $950, and took home a service fee of 1.9% of sales. The McDonalds brothers eventually sold out for $2.7million in 1961.
The corporation’s first international venture was in Canada in 1969. International expansion in McDonald’s was accomplished through three different means 1) McDonald’s and its foreign subsidiaries, 2) franchisees and 3) Affiliates. Franchising played a major role at McDonald’s. A major factor contributing to the rapid and successful international expansion for McDonald’s has been the way its franchise system has operated. Over the years the corporation has given immense importance to the training and ...
Download paper


You are required to analyze your own organization or one that you are familiar with in terms of issues relating to International Business in one or more than one markets. The assignment should use a variety of models and perspectives / theories within your chosen topic as part…
Author : deontaebechtela

Related Essays

International Business Management: Walmart
Cooperates that operate across the borders are referred to as the multinationals. They are mostly developed from one country or region and with time, they extend to other regions. There are those companies that operate across the borders. They are known as multinational companies. They are therefore, said to have worldwide approach to the world’s finest markets and products. In this paper, three of these kinds of companies will be discussed: these are Walmart and Tesco retail stores and the German retailer ALDI. Although these companies are all multinationals, they differ in one way or...
12 pages (3012 words) Essay
International Business Management
Cost of Moving The different areas where the assembly plant has to bear cost of moving are as follows: Fittings, fixtures and land for the new plant Salaries of the new workers including the overheads and the training cost Social costs Transportation cost of exporting or shipping the finished products Power consumption and utilities Cost of installing machines Shareholders Affected The current economic crisis may affect the company’s ability to get business in the market. This might be the reason of declining profits. The company must conduct an internal analysis to find the root cause of...
7 pages (1757 words) Research Paper
International Business & Management
The company expanded to different countries through amalgamation, licensing, and acquisition. Carlsberg merges with prospective brewing companies and later on acquires whole ownership to the business entity (Blocker, et al 2003:140). The script entails the various predatory yet convincing strategies that Carlsberg Company employs in acquisition of new companies. Further, there are outlines on the on the future growth prospective, despite the fact that, the company still lags behind at a fourth rank. Lastly, there is a critic statement discouraging the ownership of more than 500 brands across...
8 pages (2008 words) Essay
International Business Management
There is a process for it which is termed as New Product development, which means it is the process that helps an organization to develop new products and services. There are two parallel paths involved in the process: One involves the idea generation, product design and detail structures, the second step focuses on market research and market analysis. Price Pricing is a very complicated issue and has far reaching effects on a company’s prospects in a market. There are different pricing benchmarks for different markets. So it is not a straight forward task to price a product. Company has to...
12 pages (3012 words) Essay
International Business Management
Tata Group of companies is a well established global business that continues to rapidly grow and penetrate foreign markets away from its origin in India. It has grown to be the best known global Indian brand that operates in 80 countries of the continents, avails its products and services to way above 85 countries, reaching a global population through its market seeking and global expansion (PTI, 2012). The business operates in different sectors in India and abroad, hence producing different products in the global market. It has invested heavily in steel works, motors, information technology,...
11 pages (2761 words) Assignment
International Business Management
However, the company remains pressed for resources and cannot afford to make the wrong decision when it comes to entering a new market. It is currently not in a position to bear high political, economic or regulatory risks. To this end, great potential exists in BRIC countries as the growth potential in these nations tends to be higher compared with the U.S. The founder of Genicon must, therefore, decide whether or not to enter the BRIC markets and, if so, which of these markets to enter. This decision must be made vis-a-vis the decision to continue to expand in European regions such as...
18 pages (4518 words) Assignment
International Business Management
 The main reason for the choice of Samsung as a global business is that it offers a wide range of products fitting different budgets, sizes, and shapes for each consumer. These products range from Galaxy S5 to Samsung Galaxy K zoom that has an optical zooming lens, the only Smartphone in the market with the feature and other products for every consumer to choice from depending on their need and abilities. The firm aims at meeting all the needs of the consumers through a wide range of product offerings for the consumers.   The main limitation of the global strategy is that there is...
4 pages (1004 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!