Globalization has been the buzzword in the last few decades and is defined as the phenomenon resulting from liberalized economies, enhanced technological and cultural integration and deregulation of specific business activities (Globalization n.d). Globalization is an…
McDonalds Corporation is a fast food giant operating from Illinois, United States. Based on franchise model, McDonalds serves around 58 million customers on a daily basis with the help of its 31000 + locations worldwide and workforce of more than 400,000.
Other companies and newly formed corporations try to imitate the business strategies of McDonalds in their global operations which have always been successful. Its success is attributed to its flexible supply chain, better management control and effective human resources management.
Many global organizations were severely hit by the global meltdown of 2009. McDonalds was among one of them which was exposed to increased costs of production and declining sales during the recession period. As economic crisis soared, purchasing power of consumers declined. Fuel and transportation costs increased and there was an overall shift in consumer buying behavior and preferences (DDB n.d).
Slowed economy was directly reflected in McDonald’s stock which fell down by 7 percent (CNN Money 2008). Higher inflation in food and fuel prices lead to consumers changing their eating habits and turning to cheaper alternatives. Anti-obesity drive across nations also placed questions on business and ethical practices of the company.
However, the sheer size of the company once again allowed it to sail back into the global waters. Through aggressive marketing and advertising strategies, changing its value propositions and global experience, McDonalds rebounded with profits increased by 10 percent (Market Watch 2010).
Investors also have high trust and optimism with the company as it did not post much losses and fear of bankruptcy like other multinationals. Even its stark competitors- Burger King and Wendy’s are not able to replicate the recovery demonstrated by McDonalds (Bloomberg Businessweek 2010).
Globalization has resulted in manifold ...
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Today’s information advances and the globalized economy have deeply and permanently reshaped the economic, educational, political, and social setting of the world. The once limited, slow, and conservative tempo of societal transformation has now become borderless, fast, and far-reaching.
Although the term ‘globalization’ is commonly used in lieu of the term ‘economic globalization’, it has a wider meaning and application in the modern world which covers socio-political and cultural globalization. It is fundamental to have a clear and specific definition of globalization in order to improve sustainable explanations, precise evaluations and effective policies of the same.
In principle, we know that we are in a recession when there is a general decline in the economic activity. This becomes obvious when we look at the real gross domestic product. This is the most viable indicator to know the state of the economy. This is regarded as a noteworthy turn down in economic activity just after the economy reaches a peak and end when it reach trough (New York Times, 2010).
This paper explores concepts of globalizations and economic systems. Concept of globalization One of the fundamental concepts of globalization is its interconnectivity of different aspects across the globe, a feature that identifies shared characteristics that are transferred across developed international networks.
Globalization is simply an international process which arises from interchanging of products, ideas, world views and many other aspects of culture. This process has an effect on the culture, on the environment, on the political system, on the prosperity and development of the economy and also on the well being in the societies around the whole world (Globalization101, 2012).
Also, economists forecasted that the contraction is not permanent; however, the abrupt shifting has worsened the EU recession (Pylas & Rising, 2013). In world market, this may result to the withdrawal of investments and collapse in confidence. For instance, countries worldwide may withdraw their investments in Germany, as they believed that the latter’s economic frame is unstable, and would just compromise their own problem.
The once limited, slow, and conservative tempo of societal transformation has now become borderless, fast, and far-reaching. The new globalized economy has become dependently structured on modern and digitized
It impacts the general environment and culture in different countries, the processes of trade effect culture and the processes themselves get affected by culture and adapt. (Levin Institute, 2014) Globalization
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