International Business Globalization of Mcdonald's Case Study

However there were also the perceptions of threats in the way the firm may impact on local culture 'Americanizing' it. The firm may also be perceived as one where there is a highly commercial intent with little local consideration, a concern seen in the consumers in France. The government is also likely to reflect public opinion, as they are the representatives of the electorate, and as seen in France, McDonalds can be a target as the general image is one that represents American culture. It is notable that France has strongly defended its culture, and other controversies regarding American companies in the country have also been seen, especially Disneyland Paris. Therefore, governments are likely to have mixed responses, recognizing that there are some direct benefits as well as potential difficulties, especially in terms of perceptions of cultural contamination from the consumer markets.

Question 3

McDonalds has sought to undertake a strategy of diversification with the acquisition of interests in Chipotle, but this strategy does not appear to have worked with the company divesting its' interest. In maybe argued that this indicates the organization has little prospects in terms of expanding beyond the burger and fries model. However, when looking at the operations of McDonald's has a ready been an expansion strategy it has indicated its ability to obtain core competencies in new areas. Examples include the menu changes adopting healthier food options, and the McCafe concept (Case Study 69). For any organization undertaking diversification is likely to be a learning curve. While the organization was not successful with Chipotle, it does not automatically mean they will not be successful with other diversification strategies. There are